Navy FCU Up 15%; Natl City Drops 3.5% in Q2

The nation’s largest credit union bank credit card issuer, Navy FCU, surged more than 15% in second quarter outstandings. Meanwhile, OH-based National City reported that its second quarter credit card outstandings were down 3.5% year-on-year and down a tad sequentially. VA-based Navy FCU reported that 2Q/05 outstandings rose to nearly $1.9 billion in the second quarter. As of June 30th, Navy FCU had 1,038,601 accounts compared to 1,009,233 in the prior quarter, and 926,062 accounts one-year ago. The number of active accounts also increased sequentially and year-over-year to 551,065. The number of cardholders topped 1.15 million for the quarter. National City reported $2.34 billion in second quarter managed outstandings, compared to $2.43 billion one-year ago, and $2.35 billion in 1Q/05. In the current quarter ended June 30th, National City had 1,737,966 gross accounts and 1,113,934 active accounts, according to CardData. ([www.carddata.com][1]). For complete details on National City’s and Navy FCU’s 2Q/05 performance, visit CardData ([www.carddata.com][2]).

NATL CITY CARD LOANS
1Q/03: $2,271 million
2Q/03: $2,417 million
3Q/03: $2,179 million
4Q/03: $2,558 million
1Q/04: $2,443 million
2Q/04: $2,426 million
3Q/04: $2,432 million
4Q/04: $2,518 million
1Q/05: $2,352 million
2Q/05: $2,341 million
Source: CardData (www.carddata.com)

NAVY FCU SNAPSHOT
2Q/05
Outstandings: $1,863,083,165
Volume: $1,160,368,513
Accounts: 1,038,601
Actives: 551,065
Cards: 1,151,931
Source: CardData (www.carddata.com)

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

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PayPal Launches a Service Integrating 20 Debit Cards

PayPal has launched a new service specifically designed for Chinese Internet users. “PayPal China” offers payments in the local currency and integration with 15 Chinese banks and more than 20 different debit cards. Additionally, “PayPal China” is the only direct online payment service that offers a buyer protection program for purchases made on popular Internet portal sites Netease and TOM Online. PayPal will offer buyer protection on China’s leading ecommerce marketplace, eBay EachNet, on September 1st. “PayPal China” joins the growing list of PayPal’s international sites, including: PayPal Australia, PayPal Austria, PayPal Belgium, PayPal Canada, PayPal France, PayPal Germany, PayPal Italy, PayPal Netherlands, PayPal Spain, PayPal Switzerland and PayPal UK.

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Carlson Wagonlit Accepts UATP in the USA

UATP has expanded its Carlson Wagonlit Travel relationship beyond Europe, the Middle East and Africa, to include the USA. As a UATP Merchant, CWT clients are now able to pay for and track all service fees and airfares charged on their UATP account. UATP accounts are accepted as a form of payment for corporate business travel by more than 200 airlines worldwide. Carlson Wagonlit Travel is a world leader in business travel management with annual sales of $19 billion.

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PSCU Inks Shell Employees FCU Processing

Houston-based Shell Employees FCU has signed a long-term debit and credit card processing contract with PSCU Financial Services. PSCU Financial Services will convert more than 18,000 debit accounts for signature and PIN processing and 5,000 ATM accounts to the Debit Advantage platform and 9,000 credit card accounts to the CreditAbility platform for the $293 million, 28,000-member credit union. PSCU Financial Services is the nation’s largest credit union service organization, representing more than 8 million cardholder accounts and 200,000 online bill payment subscribers.

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VISA E-Commerce Debit Surpasses Credit

For the first time, VISA debit card e-commerce transactions surpassed credit during the first quarter (52% debit vs. 48% credit). VISA’s first quarter debit e-commerce transactions increased 38% over the same quarter last year, while debit e-commerce sales volume increased 40.5%. VISA also reports that “Verified by Visa” has seen its share of e-commerce transactions grow 230%. Overall, VISA e-commerce transactions grew 33% between 1Q/04 and 1Q/05.

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MAESTRO 1Q/05

MasterCard reported that the number of “Maestro” debit cards increased 8.3% to 567 million worldwide at the end of the first quarter.
“Maestro” cards in Europe grew by 7.5% to 260 million compared to the
first quarter of 2004. “Maestro” online debit gross dollar volume was
more than $261 billion for the period in Europe. In the Asia/Pacific
region, the number of “Maestro” cards issued rose to 148.7 million while
GDV was nearly $29 billion. “Maestro” card numbers increased 17%
throughout Latin America to almost 80 million cards in the first
quarter. “Maestro” GDV in the region was nearly $19.4 billion.
MasterCard experienced exceptional card growth in the South Asia, Middle
East and Africa regions, with more than a 42% increase to 32.1 million
cards for the first quarter. GDV in the region for the first quarter
was almost $20 billion. As of March 31st, consumers can make online
debit point of sale purchases with their “MasterCard” or “Maestro”
branded cards at nearly 8.8 million merchant locations globally. There
were more than one million MasterCard/Cirrus ATMs around the world at
the end of the first quarter of 2005.

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USPS Takes on Credit Card Company Ads

The U.S. Postal Service has taken on claims made by the Your Credit Card Companies group in a recent ad campaign. The full-page ads, which recently appeared in major news magazine, stated that “the majority of identity theft still takes place in low-tech ways-stolen purses, wallets and stolen mail.” The USPS says the ad falsely portrays the security of the U.S. mail system. The USPS believes the information in the ad and the perception it creates is incorrect and misleading. The USPS says its media relations department contacted the major credit card companies to put pressure on the PR firm that placed the ads. The ads appeared in U.S. News and World Report, Time, Newsweek, and Business Week. Your Credit Card Companies is an ad hoc group of financial services companies that includes Citigroup, MasterCard, MBNA, Discover, and Chase

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27% of Families Experience Card Fraud

A new poll has found that 27% of participants reported that their or a family member’s credit card was fraudulently used to charge purchases, up from 19% in 2000. The research also found that 95% of respondents said they are concerned that someone might fraudulently impersonate them to ruin their credit standing and put them in debt, up almost 20% from 2000. The study for the Chubb Group of Insurance Companies, by Impulse Research of Los Angeles, found that 20% of respondents have been a victim of identity fraud or theft. Eighty-seven percent of respondents think that companies that fail to adequately protect the confidential information they have on customers and others should be required by law to pay to restore consumers’ credit ratings. Sixty-five percent of those surveyed would like to see these companies fined and 63% want these companies charged with a crime.

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Fifth Third Processing Signs a MS Bank

Mississippi-based Britton & Koontz Bank has signed a five-year contract with Fifth Third Processing Solutions for EFT services, including gateway access, debit card processing and ATM driving. Britton & Koontz Bank has $376 million in assets. Fifth Third Bank Processing Solutions processes over 12 billion ATM and POS transactions per year for more than 1,350 financial institutions and over 135,000 retail locations worldwide.

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