Personalized Phishing Hits the Web

Cyota says it has detected a new phishing attack wherein an organized gang of fraudsters is using real stolen information to target account holders by name to lure individuals into divulging additional sensitive information. The goal of “Personalized Phishing” is to enhance existing lists of stolen credentials with even more sensitive information not yet possessed by the fraudsters, such as ATM PIN numbers or credit card CVV codes. These complete sets of credentials have a much higher resale value among the online fraud communities than just the names and account numbers. Cyota says its “Anti-Fraud Command Center” has immediately begun blocking access to and taking down these fraudulent sites.

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RBS Lynk Inks Interactive Designs as a VAR

Georgia-based Interactive Designs has become the newest member of the “OneLynk Alliance,” RBS Lynk’s value-added reseller program. IDI is a manufacturer and distributor of salon management solutions in the US and provider of integrated software to help salon owners manage client data, inventory control, scheduling, employee commissions and POS equipment. RBS Lynk is a provider of electronic payment processing services, the third-largest processor of ATMs in the U.S. and is a member of The Royal Bank of Scotland Group.

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MBNA’s Outstandings Drop Lower in April

MBNA’s managed credit card outstandings slipped further in April to $95.9 billion. As a result, MBNA’s charge-offs edged up to 4.34% last month, compared to 4.29% in March, and 4.70% one-year ago. In May, MBNA’s charge-off rate was 4.88%, the high for 2004. Delinquency for consumer credit cards dropped to 4.16% during April, compared to 4.35% for March and 4.21% for April 2004. The high last year was 4.49%. MBNA recently reported that domestic credit card loans declined 4.6% from one-year ago to $74.8 billion. For complete details on MBNA’s first quarter results and monthly metrics, visit CardData ([www.carddata.com][1]).

MBNA CONSUMER CREDIT CARD SNAPSHOT
Month Outstandings Charge-offs Delinquency
Apr 04 $ 98.0b 4.70% 4.21%
May 04 $ 98.5b 4.88% 4.15%
Jun 04 $ 99.4b 4.64% 4.10%
Jul 04 $ 99.5b 4.52% 4.00%
Aug 04 $ 99.7b 4.52% 4.01%
Sep 04 $ 98.8b 4.22% 4.15%
Oct 04 $ 98.5b 4.36% 4.18%
Nov 04 $ 99.9b 4.33% 4.21%
Dec 04 $101.9b 4.12% 4.20%
Jan 05 $ 98.6b 4.46% 4.34%
Feb 05 $ 96.9b 4.27% 4.50%
Mar 05 $ 96.1b 4.29% 4.35%
Apr 05 $ 95.9b 4.34% 4.16%
Source: CardData (www.carddata.com)

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

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FDC Expands its Latin America Presence

Panama’s Provident Bank & Trust has signed a payment processing agreement with First Data. FDC operates Processing Center, S.A. in Panama. PROCESA uses First Data’s “VisionPLUS” transaction processing platform to provide a wide range of payment services for credit, prepaid, gift and corporate cards. PBTBL is a principal member of VISA and MasterCard International since 2000.

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BluePay and HostAdvantage Join Hands

BluePay has become a member of SWsoft’s “HostAdvantage” program offering electronic payment processing expertise.BluePay, Inc.. supplies retail and ecommerce payment solutions, offering credit card processing in real time via the internet, software, and/or POS swipe terminals. SWsoft delivers server automation and virtualization software for service providers and enterprises, with more than 10,000 customers in over 100 countries.

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CTFS Options MasterCard Lifts Card Loans by 21%

Canadian Tire Financial Services reported that its net managed credit card receivables for the first quarter increased 20.5% year-over-year to $2.82 billion. The average credit card balance in the first quarter hit $1609, up 19% from one-year ago, largely driven by its “Options MasterCard” product. For the prior quarter, the average credit card balance came in at $1525. First quarter pre-tax earnings for CTFS were flat at $25.8 million. Canadian Tire’s MasterCard receivables represent approximately 91% of CTFS’ total managed portfolio. CTFS’ retail credit card and personal loan receivables make up the remaining nine percent of the portfolio. The average number of accounts with a balance decreased year-over-year due to the sale of Canadian Tire’s commercial MasterCard account portfolio to BMO Bank of Montreal in June 2004. CTFS, in conjunction with BMO Bank of Montreal, markets the “Commercial Link MasterCard” while the receivables are owned and managed by BMO Bank of Montreal. CTFS says it plans to increase gross credit card outstandings to $3.1 billion by the end of 2005. For complete details on Canadian Tire Financial Services’ first quarter performance, visit CardData (www.carddata.com).

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GECF Strengthens in Central America

GE Consumer Finance has acquired 49.99% of Panama City-based BAC International Bank, a privately held retail bank and credit card issuer based in Panama City, Panama. BAC’s Credomatic subsidiary is a major debit and credit card issuer in Central American according to this week’s issue of CardFlash International. BAC has 178 branches in countries including Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. BAC has about $1.7 billion in consumer credit card loans. GE Consumer Finance has more than $151 billion in assets. Credit Suisse First Boston advised BAC in the deal.

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Info Touch Deploys E-Wiz in North Carolina

Info Touch Technologies has installed “E-Wiz” kiosks at Exxon-branded On the Run convenience stores in Charlotte, North Carolina, bringing its total number of “E-Wiz” kiosks for non-banked U.S. consumers to 87. E-Wiz terminals provide customers with convenient access to a wide variety of services, such as bill payment, money transfer, pre-paid products and phone services. Info Touch Technologies, a strategic investment of Hewlett Packard, is building the “TIO Network” – a multi-retailer network of financial services kiosks for the non-banked consumer marketplace in North America.

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Convenience Use Rises Unexpectedly Higher

The number of Americans paying off credit card balances in full each month jumped higher than expected in 2004 to 44.7%, compared to 38.3% in 2003 and 39.1% in 2002. Cardholders who avoid paying credit card interest charges, peaked in 2000 at 44.4%, according to CardData. Throughout the 1990s, the number of convenience users steadily increased, rising from 28.6% in 1990. The decline in the early 2000s is attributed to both the sluggish general economy and historically low interest rates. Some consumers switched back to revolving credit as personal income dropped, while others find 0% APRs and other super low interest rates provide little incentive to pay off in full each month. Overall, Americans pay back an average of 17% to 18% of their credit card balances each month, historical highs.

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Target’s Card Profits Soar 28% in Q1

Target reported that its pre-tax credit card profits for the quarter ending April 30th increased 28% over the year ago quarter and 6% sequentially. Excluding the disposition of its Mervyn’s and Marshall Field’s card portfolios, Target’s credit card receivables increased 12% compared to 1Q/04. Target’s first quarter credit card profits were $142 million, compared to $134 million in the prior quarter, and $111 million one-year ago. Target reported that its total credit card receivables, which include its VISA and “Guest” cards, were $5.25 billion as of April 30th, compared to $4.69 billion one-year ago. Delinquency (90 days+) for 1Q/05 was 3.0%, compared to 3.5% in the fourth quarter, and 3.9% one-year ago. Charge-offs were 7.4% for 1Q/05 compared to 7.6% in the prior quarter, and 9.5% one-year ago. Target’s credit card unit had revenues of $279 million in 1Q/05, an 11.1% increase over 1Q/04. For complete details on Target’s latest performance, visit CardData (www.carddata.com).

TARGET CARD LOAN HISTORICAL
(Excludes Mervyn’s & Marshall Field’s)
1Q/04: $4.688 billion
2Q/04: $4.716 billion
3Q/04: $4.914 billion
4Q/04: $5.456 billion
1Q/05: $5.251 billion
Source: CardData (www.carddata.com)

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Flash Foods Installs NCR RealPOS Terminals

Flash Foods, a convenience store chain in Georgia and North Florida, has rolled-out NCR “RealPOS 70” POS terminals and NCR “RealPOS” thermal printers in its 180-plus stores. Flash Foods managed the installation of the new POS solution and services its store-automation technology. NCR Corporation is a global technology provider of ATMs, retail systems, Teradata(R) data warehouses and IT services.

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