Midas Selects Trintech’s ReconNET Software

Illinois-based Midas has selected Trintech’s “ReconNET” for use in their 1,700 company operated shops to automate the verification and reconciliation of cash, credit card transactions and purchase cards, which are used by stores to buy parts from third party suppliers. Midas is one of the world’s largest providers of automotive service with more than 2,600 shops in 19 countries. Trintech provides transaction reconciliation and payment infrastructure solutions to retailers, financial institutions, payment processors and network operators globally.

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BankWest of Nevada Launches the Moneyrail

BankWest of Nevada this week is launching a million dollar, multi-year advertising/ATM deal in the Las Vegas Monorail. The event will also launch of a promotion for monorail ATM users to win money for using the ATMs. Western Alliance Bankcorp is the parent company of BankWest of Nevada, AllianceBank of Arizona, Torrey Pines Bank, Premier Trust, and Miller/Russell & Associates.

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Morgan Beaumont Picks Up $5MM in Funding

Sarasota, FL-based stored value card specialist Morgan Beaumont has landed a $5 million private placement deal. The terms of this private placement transaction give the investors the opportunity to purchase an additional $7 million in equity. According to the terms of the transaction, Morgan Beaumont issued approximately 12.4 million shares of its common stock. Morgan Beaumont, Inc. provides stored value and debit card solutions.

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ID Data Picks Up GBP 4MM in Funding

ID Data has received an extra GBP 4 million in cash to support its
smart-card-based transaction systems and services to the banking, retail
and government sectors. Investors also agreed to convert GBP 3.6 million
of long-term debt into equity. ID Data recently launched a new
production joint venture in Poland, with a manufacturing capacity of 150
million cards per year. ID Data’s new high-security site at
Petersfield, Hampshire, now has the capacity to personalize and mail one
million cards per week.

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Pimsware Collection Software Solution Unveiled

Georgia-based Portfolio Inventory Management Systems is introducing “Pimsware” this week, a collection software solution for debt buyers, collection agencies, agency managers and collection attorneys. Pimsware is a web-based collection system and is interfaced with letter and skip vendors, outfitted to accept credit card and ACH payments, includes the ability to attached scanned documents to an account and is auto dialer and voice over IP enabled. PIMS develops custom collection systems.

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Citi Card Revenues Fall 3%; Profits Up 1%

Citigroup reported that second quarter profits for its credit card business in North America inched up by 1% to $861 million. Credit card outstandings for North America also grew a modest 1% over 2Q/04 to $139.8 billion, impacted by higher payment rates. The figure includes $25.3 billion in private label card outstandings. This is the second time Citi’s second quarter outstandings came in lower than the first quarter, according to CardData ([www.carddata.com][1]). Purchase and cash advance volume increased 9% year-on-year to $72.2 billion. Citi’s account base at the end of the second quarter declined by 1.6 million accounts from the prior quarter and was down 2% from one-year ago. At the end of 2Q/05, Citi had 127.1 million accounts in North America. Citi’s charge-offs increased from 5.50% in the first quarter, to 5.71% for 2Q/05. Charge-offs for bank credit cards jumped to 5.59%, compared to 5.20% in the first quarter and 6.15% one-year ago. Charge-offs for private label credit cards dropped from 6.91% in the first quarter to 6.28% for 2Q/05. Charge-offs for private label cards remain well below year-ago levels by 233 basis points. Delinquency (90+ days) declined slightly from 1.76% for 1Q/05 to 1.70% for the second quarter 2005. Delinquency for bank credit cards was down 15 basis points from the year-ago level. Citi noted that the new bankruptcy legislation caused a short-term spike in bankruptcy filings, adding approximately $175 million to its credit costs in North America cards. For complete details on Citigroup’s 2Q/05 performance, visit CardData ([www.carddata.com][2]).

CITIGROUP
North American Credit Card Net Revenues
2Q/04: $850 million
3Q/04: $1067 million
4Q/04: $1190 million
1Q/05: $911 million
2Q/05: $861 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com
[2]: http://www.carddata.com

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TransUnion Intros an Anti-Skimming Product

TransUnion has introduced an anti-skimming solution for card issuers. The new “Common Point of Purchase” creates a pooled database of historical data about all known skimmed cards from multiple credit card portfolios. The aggregated data is then analyzed to identify like places where skimming is repeatedly occurring. When a “common merchant” is found based on industry-determined thresholds and timeframes, TransUnion transmits a daily report to credit card issuers that advises them of the findings via a secure URL. The information is then used to initiate an investigation to determine if the merchant is in fact a victim of credit card skimming. First launched in Canada five years ago, “CPP” is now available throughout North America.

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AMEX GOLD CARD

American Express Middle East has launched the country’s first credit
card with a chip. The new smart card features “ID Keeper,” an
application that enables cardholders to securely store their favorite
Web site addresses, personal details, passwords, user names and
auto-fill online shopping order forms. New cardholders are also
automatically enrolled in the “Membership Rewards” program. The new
credit card offers airport lounge access, retail protection insurance,
online fraud protection guarantee and travel inconvenience and accident
insurance. The card is billed in Qatari Riyals. AEME was established in
1959 and set up its first office in Bahrain in 1979. In 1992, AEME
became a joint venture company owned by Mawarid Investment Limited and
American Express.

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MBNA Profits Slip 4%; US Card Loans Down 8%

MBNA’s profits slipped 4.2% in the second quarter to $632 million, which included $14 million in restructuring charges. During the second quarter the issuer stepped up low rate offers for cash advances in the U.S. which drove balances slightly higher. U.S. card loans grew from $74.8 billion in 1Q/05 to $75.0 billion but remain 8% lower than one-year ago. Total managed loans as of June 30th were $117.4 billion, an increase of $797.8 million compared to the first quarter. Total volume in the quarter rose to $57.0 billion, an increase of 9.6% over the second quarter of 2004. Total volume includes sales volume of $36.8 billion, which increased by 9.8% over the second quarter of 2004, and cash advance volume of $20.1 billion, which increased by 9.2% from 2Q/04. Managed charge-offs continued to improve year-over-year, declining to 4.60%, but increased from the prior quarter’s 4.48%. One-year ago managed charge-offs stood at 4.95%. Delinquency on managed loans declined to 3.98%, compared to 4.17% in 1Q/05. For 2Q/04, delinquency stood at 4.08%. For complete details on MBNA’s second quarter results, visit CardData ([www.carddata.com][1]).

MBNA TRACK RECORD
Profits Loans
2Q/04: $660.3 MM $118.2 B
3Q/04: $728.3 MM $117.8 B
4Q/04: $768.9 MM $121.6 B
1Q/05: $ 31.7 MM $116.6 B
2Q/05: $632.1 MM $117.4 B
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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NCR Launches ImageMark ATM Deposit

NCR has launched “ImageMark ATM Deposit,” which combines NCR’s “No Envelope” deposit technology with “ImageMark NCompass” and “ImageMark Passport,” for community banks, thrifts and credit unions. ImageMark ATM Deposit immediately routs a customer’s deposit in an image-enabled ATM to the back office for review and correction, if necessary and allows for immediate processing. Empty envelope fraud is eliminated, delivery is guaranteed between the ATM and the central operation and a common workflow for all remote-deposit capture points is introduced. NCR Corporation is a provider of ATMs, retail systems, Teradata® data warehouses and IT services.

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TNB Raises Balances and Lowers Risk for CUs

MI-based Lapeer County Community CU says that aggregate balances on its credit card accounts have increased by 18% since TNB Card Services purchased the portfolio in 2003. Lapeer says 80% of all transactions now come from low-risk accounts and that its loan-to-share ratio is now 90%, compared to about 70% before the acquisition. The 21,000 member credit union also noted that TNB has been able to improve the overall risk of the portfolio, boosting the average weighted FICO score to 692. Dallas-based TNB has purchased more than 60 card portfolios from credit unions over the past two years. It serves more than 450 financial institutions and manages more than 1.6 million cards.

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