PayPass Expands in the Ritz Camera Net

MasterCard and MD-based Ritz Camera Centers have expanded MasterCard “PayPass” acceptance to each of the more than 1,100 Ritz Camera Centers and 114 Boater’s World Marine Centers. Both Ritz Camera and Boater’s World participated in the MasterCard PayPass contactless payment market trial in Orlando, FL in 2003. Sheetz deployed “PayPass” system-wide in March. In August 2004, McDonald’s inked a deal to accept MasterCard “PayPass.” In February, MasterCard teamed with MBNA, the Seattle Seahawks and Baltimore Ravens Football Clubs to integrate its “PayPass” contactless payment technology into the Seahawks and Ravens “Extra Points” credit card programs. (CF Library 1/4/05; 2/22/05)

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Your Credit Card Companies Educate Cardholders

Your Credit Card Companies, a coalition of Chase, Citigroup, Discover, MasterCard, and MBNA, released a tip sheet to consumers today. The guide will enable consumers to take full advantage of credit card benefits, stay on budget, manage debt better and protect against identity theft and fraud. Your Credit Card Companies provides credit resources and a variety of tools that help consumers to better understand how credit works, to understand and protect their total credit picture and to manage debt.

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Citigroup International Cards Up 18%

Citigroup reported that its international card business produced first quarter net income of $175 million, an 18% increase over year ago levels, largely driven by the performance in the Asian region. During the first quarter of 2005, Citi posted a 22% gain in card loans and a 30% increase in sales volume. The account base increased slightly to 20.9 million accounts compared to the previous quarter, but up 31% compared to 1Q/04. International credit card loans at the end of 1Q/05 stood at $17.8 billion, compared to $14.6 billion one-year ago. Charge volume for the first quarter was $14.7 billion, compared to $11.3 billion for 1Q/04. In Japan, average credit card loans were up 8% year-over-year. In the rest of Asia, credit card loans grew 34% to $9.8 billion. Citigroup holds $6.1 billion in card loans for the EMEA region and $700 million in Latin America, which grew 11% and 40%, respectively. Charge-offs and delinquency dropped during the first quarter, compared to the previous quarter. Delinquency (90+ days) inched down to 1.54% for 1Q/05. Charge-offs decreased from 3.89% in 4Q/04 to 3.78% for the first quarter. For complete detail’s on Citigroup’s international cards performance, visit CardData ([www.carddata.com][1]).

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

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MBNA 1Q/05

MBNA’s international loans increased 17% in the first quarter to $25.7 billion, compared to one-year ago. In Europe, loan receivables and total managed loans reached $9.6 billion and $22.0 billion, respectively. In Canada, loan receivables and total managed loans were $589.6 million and $3.7 billion, respectively. During the first quarter,
MBNA entered into an agreement to market American Express-branded credit cards to customers in the United Kingdom.

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Cap One Charge-Offs Head North in March

Capital One’s delinquency ratio headed south in March. However, charge-offs rose 39 basis points after a three-month decline. For March, Cap One reported that managed charge-offs increased to 4.35%, compared to 3.96% in February, 4.19% in January, and 4.75% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. Delinquency decreased to 3.45% in March compared to 3.65% for February and 3.84% in January. Delinquency one year ago stood at 4.14%. At the end of March, Capital One had $81.5 billion in global outstandings. At the end of the first quarter, U.S. card outstandings of $46.6 billion were up 3%, compared to one year ago. For complete details on Capital One’s monthly metrics and 4Q/04 performance, visit CardData ([www.carddata.com][1]).

Month Charge-offs Delinquency
Mar 04 4.74% 3.80%
Apr 04 4.70% 3.69%
May 04 4.40% 3.73%
Jun 04 4.17% 3.76%
Jul 04 4.10% 3.77%
Aug 04 3.87% 3.80%
Sep 04 4.18% 3.90%
Oct 04 4.10% 3.94%
Nov 04 4.35% 3.87%
Dec 04 4.63% 3.92%
Jan 05 4.19% 3.84%
Feb 05 3.96% 3.65%
Mar 05 4.35% 3.45%
Source: CardData (www.carddata.com)

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

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MBNA Delinquency Slips Upward in March

MBNA’s managed credit card outstandings slipped further in March, due to high payment rates, to $96.1 billion in March. During March, MBNA’s charge-offs edged up to 4.29% in March, compared to 4.27% in February, and 4.46% for January. In May, MBNA’s charge-off rate was 4.88%, the high for 2004. Delinquency for consumer credit cards dropped to 4.35% during March, compared to 4.50% for February and 4.34% during January, and compared to a 2004 high of 4.49% one-year ago. 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
Mar 04 $ 99.1b 4.79% 4.27%
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%
Source: CardData (www.carddata.com)

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

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AmigoMoney VISA Card Targets Hispanics

Miami-based AmigoMoney announced the launch of a new Debit Visa Card designed and targeted for the Hispanic community in the US, currently estimated at 43.5 million strong, representing 15 percent of the US population with a purchasing power estimated at $686 billion dollars in 2004. AmigoMoney provides reloadable prepaid cards, issued by BANKFIRST and is accepted everywhere Visa debit cards are accepted and can be used for cash withdrawals at Visa and Interlink ATM machines.

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NTT DoCoMo Seeks a Card Partner

NTT DoCoMo is reportedly planning to make a US$936 million investment for one-third ownership of Sumitomo Mitsui Card Co. However, Sumitomo says that no concrete deal has been made yet. NTT DoCoMo has made clear its intention to expand into wireless payment systems. In July 2004, JCB, AEON Credit Service, and NTT DoCoMo developed “QUICPay,” a payment solution that permits consumers to assign part of their existing credit limit to a specific contactless IC chip, which may be embedded in a plastic card, or incorporated in the customer’s “i-mode FeliCa” service compatible mobile phone. In November, JCB launched a three-month pilot for its mobile infrared credit payment system using NTT DoCoMo phones at 30 merchant locations near its Tokyo headquarters. Sumitomo Mitsui Card Co. is the second-largest credit card firm in Japan.

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Biometric Card with Scanner Introduced

Denmark’s Scanecotech AS has come up with a biometric card that has an embedded fingerprint scanner and requires two fingerprints to activate the card at the point of sale. With the new “Scancotech” card, the recognition of the fingerprint is performed on the card itself, not by an external database. The recognition of two fingers is to ensure that the user can use the card, even if an injury is sustained to one finger. If robbed, the card can be locked in active mode and the robber will not know which finger was selected for activation. Depending on issuer specifications, more than one set of card data may be contained on the card. Subsequent to activation, the user selects which card data he wants to transmit, thus eliminating the need for carrying more than one card. You can for example have your credit card, company access, etc. on just the one card. The battery life allows a minimum of 2,000 activations or about two years of use for most consumers.

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Datastrip & Cogent to Market a Fingerprint System

Datastrip has partnered with Cogent Systems to develop a portable fingerprint identification system. Cogent’s algorithms and software have been incorporated into Datastrip’s new DSVII family of handheld identification terminals. The system can compare live and stored fingerprints. Datastrip is a leading provider of biometric verification devices and 2D bar code software with associated hardware.

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AmEx Aggregates Exclusive Offers Online

American Express unveiled several new initiatives that have been designed to help travel agents grow their business, better service customers and earn rewards for each qualified vacation they book for AmEx cardholders. AmEx posts detailed information about cardmember offers to its travel agent website so that agents are better able to answer customer questions and has introduced a new program that rewards agents for eligible bookings. American Express Company is a diversified worldwide travel, network, and financial services provider founded in 1850.

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Lipman Revenues Up 69% in the Q1

Lipman Electronic Engineering, a provider of electronic payment systems, posted first quarter revenues of $54.2 million, an increase of 69% over the first quarter of 2004. Net income for the quarter was $5.3 million, compared to $4.8 million for 1Q/04. Lipman says the increased revenues were due to the consolidation of Dione’s operations. In Europe, the quarter was highlighted by initial orders from customers in the Italian market. In Italy, Lipman began shipping its “NURIT 8320” terminals to EasyNolo, a member of Gruppo Banca Sella. Also, during the first quarter, Lipman began a pilot program to manufacture Dione’s products at facilities in Israel. For complete details on Lipman’s first quarter performance, visit CardData ([www.carddata.com][1]).

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

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