American Express has inked a deal to promote merchant participation on Amazon.com. Under terms of the deal, businesses in the U.S. that accept the American Express card can join the “Amazon Services Pro Merchant” program to sell on Amazon.com with no subscription charges for the first three months. The “Pro Merchant” program offers retailers volume-listing tools, Amazon.com storefront capabilities, and unlimited free listings for a monthly subscription cost of $39.99 plus a commission when products sell.Details
OH-based NCR reported that its ATM division posted second-quarter revenue of $330 million, up 27% from the year-ago period. The Company says it is seeing continued growth in upgrades, replacements and the purchase of new ATMs as banks focus more on branch banking, transaction migration, and compliance with regulatory changes. NCR says these new deposit-capable ATMs should allow banks to reduce cash-handling, check-processing and transportation costs. NCR’s Retail Store Automation unit generated $212 million of revenue, up 4% from the second quarter of 2003. NCR says retailers continue to be disciplined in their capital spending, but they have begun to replace and upgrade their point-of-sale terminals and expand their deployment of self-checkout systems. NCR’s overall revenues for the second quarter grew 6% to $1.45 billion. For complete details on NCR’s 2Q/04 performance visit CardData ([www.carddata.com]).
Marc Resorts Hawaii has joined Rewards Network Hotels offering members up to 15% “Cashback Rewards,” and airline members up to 10 airline miles for every dollar spent on the room rate. With 13 destinations in premier Hawaiian locations spanning five islands, Marc Resorts Hawaii offers deluxe accommodations and consistent standards of excellence for travelers. Rewards Network SM provides loyalty and rewards programs for restaurants and hotels via its registered credit card platform. Incentives are offered through the Rewards Network branded program, airline frequent flyer dining programs, club memberships and other affinity organizations.Details
A lawsuit has been filed against JPMorgan Chase alleging violations of the “Fair Labor Standards Act” overtime regulations at call centers in 11 states. According to the FTC, consumers who respond to DMFS’s messages or Internet advertising speak with representatives who claim that DMFS is a nonprofit company that consolidates consumer credit card debt. The representatives allegedly identify a specific, monthly payment amount that the consumer will be permitted to make if he or she consolidates debts with DMFS. The representatives allegedly tell consumers that, to receive these benefits, each consumer must pay DMFS up-front fees that run as high as $1,000, and also pay monthly fees of $20 to $49.Details
MasterCard business card specialist, Advanta, raised its 2004 earnings estimates by 6% due to “favorable asset quality performance.” Yesterday, the issuer reported that its 30+ day delinquency ratio declined 24% from year-ago figures, and 11% sequentially. Charge-offs also declined 11% from 2Q/03, and 4% since the first quarter of this year. Managed receivables hit $3.1 billion compared to $2.8 billion one-year ago. Over 30 day delinquencies on managed business credit card receivables declined to 4.80%, and over 90 day delinquencies decreased to 2.50%. Managed charge-offs dropped to 6.99% for the second quarter, compared to 8.03% one-year ago and 7.19% in the prior quarter. Charge volume was $2.0 billion for the second quarter, a 19% gain over the second quarter of 2003. For complete details on Advanta’s 2Q/04 performance visit CardData (www.carddata.com).
ADVANTA’S CARD PORTFOLIO SNAPSOT
2000: $1.4 billion
2001: $1.9 billion
2002: $2.2 billion
2003: $2.8 billion
2004: $3.1 billion
Source: CardData (www.carddata.com)
Target has agreed to sell its Mervyn’s private label credit card portfolio to GE Consumer Finance for $475 million. At the end of May, the Mervyn’s portfolio had $481 million in outstandings, compared to $541 million one-year ago. The sale is part of Target’s plans to unload its entire Mervyn’s unit. Target is selling its Mervyn’s stores and distribution centers to a consortium of investors, including Sun Capital Partners, Cerberus Capital Management, and Lubert-Adler/Klaff and Partners. Mervyn’s is a promotional, middle-market department store, based in the San Francisco Bay area with 257 stores in 13 states, primarily in the west and south. GE is the largest private label credit card issuer in the world. Target’s private label credit card outstandings have been slowly contracting since the introduction of the “Target VISA” card in September 2001. At that time, Target had $2.4 billion in private label credit card outstandings, compared to $1.8 billion at the end of May of this year. During the same period Target’s bank credit card portfolio has grown to $4.0 billion. GE said it expects to close the Mervyn’s acquisition by the September 30th. For complete portfolio details on Target and GE visit CardData (www.carddata.com).
MERVYN’S CARD LOAN HISTORICAL
4Q/02: $626 million
1Q/03: $541 million
2Q/03: $519 million
3Q/03: $503 million
4Q/03: $550 million
1Q/04: $481 million
Source: CardData (www.carddata.com)
Albertsons has agreed to deploy Coinstar’s e-payment products and services in over 1,800 grocery and drug store locations in the USA. Coinstar expects all 1,800 installed Albertsons locations to be equipped with Coinstar’s e-payment services, including prepaid wireless airtime and Green Dot(TM) Prepaid MasterCard(R) cards. This stored-value card may be purchased at the Coinstar Center and loaded with dollar amounts from $20 to $500. Coinstar Inc. pioneered self-service coin counting to provide consumers a convenient and innovative means to convert loose coins into cash.Details
SD-based BANKFIRST has launched the “Usher Raymond IV Debit MasterCard” providing exclusive access to “The World of Usher,” which offers merchandise discounts and concert tickets. The Usher Raymond IV Debit MasterCard enables its user to prepay or store money in a financial account that can be accessed for purchases, bill payment, or ATM cash withdrawals. The Usher Debit MasterCard is accepted at millions of locations worldwide, and includes optional cash access through the Cirrus ATM network worldwide. The card can be reloaded with additional funds, and if subject to loss, theft or fraud, MasterCard Zero Liability protection applies. BANKFIRST is a privately-held service financial group with approximately 1,000 employees across operations in South Dakota, Minnesota and Arizona.Details
A lawsuit has been filed against JPMorgan Chase alleging violations of the “Fair Labor Standards Act” overtime regulations at call centers in 11 states. JPMorgan operates or has operated call centers in Texas (Houston, San Antonio, Arlington and Dallas); Pennsylvania (Fort Washington); Arizona (Tempe and Phoenix); Missouri (Kansas City); Massachusetts (Boston); Ohio (Columbus); Colorado (Littleton); Florida (Tampa); Delaware (Newark); Louisiana (Monroe); and Illinois (Chicago). This case does not involve current and former Chase call center employees in the State of New York.Details
InteliData Technologies and Striata have teamed to offer an end-to-end eBill solution that can be deployed in-house or in an ASP environment. InteliData provides online banking and Electronic Bill Payment and Presentment “EBPP” technology and services to leading banks, credit unions, financial institution processors and credit card issuers. Striata Inc. is an application software developer and service provider focused on enabling secure electronic communication.Details
OnQ and US-based GlobeTel Communications have teamed to launch
a stored value MasterCard. The new “OnQ Bill Express Magic Money MasterCard” will be distributed through QnQ’s 8,000 points of sale throughout the country. The new prepaid debit card can be topped up at selected retail outlets and used wherever the MasterCard and Maestro logos are featured. The OnQ Group of Companies specializes in e-Commerce and business solutions through products that provide clients with a “one-stop” shop for multiple solutions, or specific solutions, for specific needs. GlobeTel is in the international carrier termination business and is expanding to provide strategic advantages to commodity telecommunications based products.
Fair Isaac reported revenues of $173.2 million for the quarter ending June 30th, a 6% gain over 2Q/03. Net income for the quarter totaled $28.8 million, compared with net income of $30.0 million for the same quarter last year. The Company said it was disappointed in the lower-than expected results but says its innovation is as strong as ever, as they learn how to execute well in multiple markets simultaneously. Fair Isaac says it has begun the integration of London Bridge. The Company’s Board of Directors approved a stock repurchase program to acquire up to $200 million of the company’s outstanding common stock. Fair Isaac this week announced it has extended its “FICO” scoring to consumers who have minimal or no credit history on file. For complete details on Fair Isaac’s second quarter performance visit CardData ([www.carddata.com])