Consumer Credit Cycle Conference to be Held

A three-day survey course on “Consumer Credit: Managing Risk and Reward” is scheduled for September 21-23, in New York City. Managing Risk and Reward is a three-day survey course which teaches the basics of the consumer credit cycle….planning products, acquiring and maintaining accounts, and sometimes collecting them. The program uses case studies, exercises, and a computer-based profit model to reinforce the subject matter and ensure active involvement.

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[1]: http://www.cardweb.com/images/s/solomon/solomonad.gif

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Payment Data Systems Gets $10MM in Financing

San Antonio-based Payment Data Systems has received financing up to $10 million in an equity line of credit from Dutchess Advisors, a private equity capital firm. Dutchess Advisors, a private equity capital firm, has committed to financing up to $10 million in an equity line of credit for Payment Data Systems, available to the Company after completion of its SB-2 Stock Registration.

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FTC Gets Two Houses in Card Scam Settlement

A man involved in a fraudulent pre-approved credit card scam based in Toronto has agreed to give the FTC two houses and various bank accounts, worth an estimated $1.8 million. Paul Schroeder, the last of seven defendants to face FTC litigation in conjunction with First Capital Consumers Group, settled yesterday. Previous settlements with other defendants produced monetary judgments of more than $8.27 million in restitution. According to the FTC’s complaint, First Capital Consumers Group, also operating as US Guardian United Consumers, Trans America United Benefits Group, Transglobal National Consumers Group, and First Guardian National Benefits, targeted U.S. consumers with poor credit histories. It advertised a pre-approved credit card, from MasterCard or VISA, with no annual fee and a credit limit as high as $2,500. A one-time processing and membership fee of between $189 and $219 dollars was deducted electronically from the customer’s bank account. Consumers who applied never received a credit card, according to the FTC.

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Providian ABS Charge-Offs Fall to 13.17%

Providian’s metrics for its securitized card loans continue to improve as charge-offs marched south for the fourth consecutive month, dropping to 13.17% in July. However, delinquency edged up 2 basis points during July after dropping dramatically in the first quarter. For July, Providian’s securitized delinquency ratio was 8.42%, compared to 8.40% in June. One-year ago Providian’s securitized delinquency ratio stood at 11.96%. Charge-offs edged down to 13.17% in July, compared to 14.44% in June. One-year ago Providian’s securitized charge-off ratio stood at 17.39%. Providian’s managed charge-offs for July were 10.88% and its managed delinquency ratio was 6.35%. For complete details on Providian’s latest performance visit CardData ([www.carddata.com][1]).

[Click here for the 8K filing from the SEC in PDF format.][2]

PROVIDIAN MONTHLY ABS METRICS
Month Charge-Offs Delinquency
Jan 04 17.36% 11.48%
Feb 04 16.08% 11.07%
Mar 04 17.17% 9.56%
Apr 04 15.84% 9.09%
May 04 14.82% 8.68%
Jun 04 14.44% 8.40%
Jul 04 13.17% 8.42%
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com
[2]: http://www.cardweb.com/cardflash/2004/august/providian.pdf

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Pipeline Data Hits Profitability

MA-based Pipeline Data posted its first-ever net profit during the second quarter. Second quarter revenues were $4.0 million a 42% increase over the prior quarter, and a 63% increase over the second quarter of 2003. Net profit for the quarter was $165,078. During the second quarter Pipeline announced plans to expand its Northern Merchant Services call center in St. Lawrence County, NY. The Company also hired Debbie Hoch, formerly with Mellon Bank and Concord EFS, as VP of East Coast Sales for Pipeline’s wholesale merchant processing division. Pipeline says it plans to reinvest its profits towards the growth of Pipeline Data Processing, its wholesale division. Therefore,investors should expect a close to break even cash flow status with considerable top line revenue increases going forward. Pipeline Data currently serves over 10,000 merchant customers. For complete details on Pipeline’s latest performance visit CardData ([www.carddata.com][1]).

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

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AmEx Unloads 5000+ 7-Eleven ATMs

7-Eleven has acquired the ATM portfolio currently deployed in 7-Eleven stores from American Express for approximately $44 million. The purchase involves ATM services offered in 5,483 company-operated, franchised and certain licensed 7-Eleven stores. 7-Eleven says the deal will give them control of the ATMs allowing them to better integrate the service into its overall merchandising efforts within the store. 7-Eleven also said the acquisition will complement its strategy to accelerate growth in the area of financial services.

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MasterCard Invests into Xign

Xign has received an equity investment from MasterCard to enhance initiatives tied to the MasterCard “Corporate Purchasing Card” and the MasterCard “e-P3” electronic payment and information management service. MasterCard’s investment in Xign solidifies a business relationship that began in the fall of 2002. At that time, MasterCard introduced the first electronic payment and information management service fully integrated with the MasterCard Corporate Purchasing Card, MasterCard e-P3, powered by Xign. With MasterCard e-P3, buyers can automatically link electronic purchase orders, invoices, receipt of goods, and other transaction documents with corporate purchasing card transactions, resulting in considerable cost savings and more accounting control. Xign studies of more than 35 Fortune 1000 companies show that Order to Pay automation can deliver millions of dollars in annual savings for every $1 billion in spend.

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MBS Selects DataSecure Platforms

Merchants Billing Services has selected Ingrian “DataSecure Platforms” as an additional layer of security for the privacy and protection of their customers’ credit card data. With Ingrian, MBS cost effectively and securely manages the encryption of sensitive data in application servers and databases, and secures this data as it is being transmitted and stored throughout the enterprise. Ingrian DataSecure Platforms offer intelligent, granular control over what data is protected, they adhere to open standards and are cost effective to deploy, and they deliver comprehensive security capabilities.

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MBNA Delinquency Drops for the Fifth Month

MBNA’s delinquency ratio for consumer credit cards declined for the fifth consecutive month in July. Charge-offs also hit a new low for the year during July, after peaking in May at 4.88%. Charge-offs declined to 4.52% in July, compared to 4.64% in June, and compared to 4.77% in January. Delinquency for consumer credit cards declined to 4.00% during July, compared to 4.10% during June, and compared to 4.34% in January. Consumer credit card outstandings increased $100 million during July, compared to a $900 million gain in the prior month. MBNA’s consumer credit card outstandings peaked in December. As of July 31st, MBNA has $99.5 billion in consumer credit card loans. MBNA recently reported that domestic credit card loans for the second quarter were $81.6 billion. For complete details on MBNA’s second quarter results visit CardData ([www.carddata.com][1])

[Click here for the 8K filing from the SEC in PDF format.][2]

MBNA CONSUMER CREDIT CARD SNAPSHOT
Month Outstandings Charge-offs Delinquency
Jan 04 $103.1b 4.77% 4.34%
Feb 04 $ 99.6b 4.71% 4.49%
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%
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com
[2]: http://www.cardweb.com/cardflash/2004/august/mbna.pdf

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Global Axcess Net Income Climbs 86%

FL-based Global Axcess reported second quarter revenues of $3.1 million, an 18% jump year-on-year. Net Income climbed 86% to $366,123 compared to 2Q/03. During the second quarter, the Company achieved a record increase in the number of financial institutions who have contracted with under “Branded Cash,” bringing the total to 54 partners, up from 41 at the end of the first quarter. ATMs in operation under its “Branded Cash” program rose from 376 sites to 473. Global Axcess says it is experiencing notable success with its new “ATMS-MADE-EASY” program, introduced in May of this year. Following an initial market test, whereby the Company sold 61 ATM terminals and associated support services to retail merchants, Global Axcess sold 92 additional sites in May and June, bringing the total under the program to 153. For complete details on Global Axcess’ latest performance visit CardData ([www.carddata.com][1]).

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

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