Retail Decisions and Paymentech have launched “ReD eCheck,” a new electronic check service that offers merchants electronic check processing software and conversion hardware as a single integrated solution for performing point-of-purchase and accounts receivable conversion transactions. By using ReD eCheck, merchants have the ability to capture and transport e-check transactions by scanning the paper check into a piece of hardware which captures the check information necessary to convert to an ACH transaction and transports the information to Paymentech’s processing platform. Paymentech, L.P. is one of the largest payment processors for businesses accepting payments via traditional point of sale, Internet, catalog and recurring billing and processed 8.5 billion transactions and $200 billion in card volume in 14 currencies in 2004. The Retail Decisions Group provides international electronic payment transaction services.Details
New Jersey-based Asta Funding reported that 2Q/05 net income rose 52% to a record $8.5 million. Revenues for the period were $19.0 million, an increase of 58% compared to 2Q/04. During the quarter, Asta purchased portfolios with a face amount exceeding $481 million, bringing its aggregate purchases for the past nine months to $2.3 billion. Asta specializes in the purchase, management and liquidation of performing and non-performing consumer receivables. For complete details on Asta’s second quarter performance, visit CardData (www.carddata.com).Details
Iowa-based Wells Fargo Financial Retail Services has rolled out a revolving dual-line consumer credit card designed exclusively for select retailers within the home improvement industry. The new “Home Projects VISA” offers one credit line for home improvement purchases and a second line for everyday purchases. As part of the program launch plan, WFFRS is offering limited-time special introductory rate promotions to program participants. The issuer says the selling points are easy enrollment procedures, competitively priced special-terms promotions, fast over-the-phone application processing, generous consumer credit lines and quick funding.Details
Kentucky-based Cheers Food and Fuel has deployed “BioPay” biometric payments in its ten stores. The BioPay system uses a person’s unique finger image and their chosen BioPay number (usually a phone number) to authorize a secured debit direct from their checking account. Once enrolled, the customer can purchase in seconds with their finger at any BioPay payment location across the United States. The BioPay service is free to the consumer. BioPay has over 1.9 million registered consumers and over 1,400 merchant locations.Details
A new report from Frost & Sullivan reveals that revenues in the global EFT POS terminal market are expected to reach $1.6 billion by 2011. Terminal manufacturers need to concentrate on countries such as China, India and Russia for long-term profitability where there is increasing adoption of electronic payments due to infrastructure development, strong government support, and the expanding presence of wireless networks. Online debit and personal identification number (PIN) pad sales are areas that are likely to offer manufacturers an opportunity to increase market share and spur terminal sales in North America as well as value-added services, such as gift, loyalty, e-commerce, advertising, couponing and electronic receipt capture (ERC) programs. Frost & Sullivan is a global growth consulting company.Details
VeriFone announced the installation of more than 2,000 “Topaz/Sapphire” integrated POS systems for Valero Energy Corp. The workstation offers multiple tasks such as fuel-dispenser control, car wash control and fast-food and merchandise transactions and enables Valero to customize the system to recognize special discounts and customer loyalty programs. In addition, the system allows managers easy access to current store activity data, which increases reporting and inventory control efficiencies. VeriFone Holdings, Inc. is a provider of secure electronic payment technologies. Valero Energy Corp. is one of the nation’s largest retail operators with more than 4,700 retail and branded wholesale outlets and annual revenue of approximately $55 billion.Details
Wells Fargo Card Services and Wells Fargo Financial Bank reported second quarter outstandings of $9,174,077,412, an 18% increase over the same period one-year ago. Second quarter card volume rose 22% for Wells Fargo Financial Bank and about 20% for Wells Fargo Card Services. Combined, Wells Fargo Card Services and Wells Fargo Financial Bank reported 2Q/05 volume of $5,414,130,710. At the end of the second quarter, Wells Fargo Financial Bank had 567,396 active accounts, a 13% increase over the prior year. Wells Fargo Card Services had 3,626,751 active accounts, a 7% increase over the prior year. For complete details on Wells Fargo Card Services and Wells Fargo Financial Bank second quarter results, visit CardData ([www.carddata.com]).
Issuer 2Q/05 2Q/04 CHANGE
WF Card Services (IA) $7.13b $6.25b +14%
WF Financial Bank (SD) $2.05b $1.56b +31%
Total $9.18b $7.81b +18%
Source: CardData (www.carddata.com)
WELLS FARGO CARD LOAN HISTORICAL
2Q/04: $7.9 billion
3Q/04: $8.3 billion
4Q/04: $8.9 billion
1Q/05: $8.7 billion
2Q/05: $9.2 billion
Source: CardData (www.carddata.com)
Diebold announced that its SVP/CFO Gregory Geswein has resigned effective August 12th to become CFO of Reynolds Company. Prior to joining Diebold as CFO in April 2000, Geswein spent a year with Agilysys (formerly Pioneer-Standard Electronics) in Cleveland, Ohio as CFO and 13 years with Mead Corporation in Dayton, Ohio. Originally from Ironton, Ohio, Geswein earned a bachelor’s degree in Business Administration and an MBA from the University of Cincinnati. Diebold, Incorporated provides integrated self- service delivery systems, security and services with reported revenue of $2.4 billion in 2004.Details
MasterCard posted second quarter revenue of $772 million, a 19% gain over one-year ago. Profits soared 82% to $120 million. This is the sixth consecutive quarter of double-digit revenue growth for MasterCard. MasterCard noted that the impact of currency fluctuations contributed 1% to revenue growth for 2Q/05. During the second quarter, operating expenses as a percentage of total revenue declined to 75% from 85% in same period in 2004. General and administrative expenses increased 12% to $319 million, compared to 2Q/04. Advertising and market development expenses increased about 1% to $232 million, compared to one-year ago. MasterCard’s gross dollar volume increased 12.3% to $408.4 billion and worldwide purchase volume climbed 14.5% during the quarter to $290.1 billion. For complete details on MasterCard’s second quarter performance, visit CardData ([www.carddata.com]).
MASTERCARD HISTORICAL ($ millions)
2Q/04 3Q/04 4Q/04 1Q/05 2Q/05
G&A: $284.7 $284.9 $338.7 $306.6 $319.2
A&M: $228.8 $190.1 $329.5 $171.7 $231.6
Net Income: $ 65.7 $ 97.5 $ 1.3 $ 93.3 $120.2
Note: G&A: General & Administrative Expenses; A&M:
Advertising & Market Development Expenses.
Source: CardData (www.carddata.com)
Cincinnati-based Fifth Third Bancorp has signed a long-term deal to license Retail Decisions'”PRISM” fraud detection software to detect and prevent ATM, credit and debit card fraud associated with its own issued cards and also provide the technology as a service to its 1,350 partnering financial institutions. Retail Decisions is an international operator of fuel cards and provider of card fraud prevention and payment processing. Fifth Third Bank Processing Solutions is one of the nation’s largest providers of credit, debit, EBT, ACH and check acceptance services.Details
HSBC Finance (formerly known as Household International), reported that its VISA and MasterCard portfolio grew 10% during the second quarter to $22.2 billion. HSBC says its MasterCard and VISA receivables reflect domestic organic growth especially in its HSBC branded prime, “Union Privilege,” sub-prime portfolios and growth in the U.K. over the year ago period. Profits for its Credit Card Services unit were up 37.5% to $165 million. HSBC says the increase in net income during the quarter was due to higher fee and other income, partially offset by higher provision for credit losses, lower net interest income and higher operating expenses. For complete details on HSBC’s second quarter performance, visit CardData ([www.carddata.com]).
TN-based QSR specialist Krystal announced that all 243 of its company-owned restaurants now accept payment by credit and debit cards. With its new cashless payment option, all it takes is the quick swipe of any major credit or debit card at the counter or drive-thru window, and for most transactions, customers are not required to sign the receipt. The Krystal Company is the oldest quick service restaurant chain in the South and the second oldest in the United States.Details