First Data Profits Up 32% Y/Y; Down 4% Q-Q

First Data reported this morning that second quarter revenue increased 22% to $2.5 billion, and net income soared by 32% to $466 million. For the first time quarterly revenues for FDC’s Payment Services unit crossed the $1.0 billion milestone. Payment Services were up 14% year-on-year. Merchant Services’ second quarter revenue was up 46% to $997 million. FDC says merchant transactions grew 71% for the quarter. The Card Issuing Services segment posted second quarter revenue of $598 million, a 15% year-over-year increase. During the quarter, 20 million accounts were converted on schedule for six different clients. FDC expects accounts on file at year-end to be approximately 390 million. FDC says its Western Union unit showed consumer-to-consumer transaction growth of 20% for the quarter and has now surpassed 195,000 locations. For complete details on First Data’s second quarter performance visit CardData ([www.carddata.com][1]).

FDC NET INCOME (Continuing Operations)
2Q/03: $353.8 million
3Q/03: $360.9 million
4Q/03: $401.6 million
1Q/04: $483.5 million
2Q/04: $466.0 million
Source: CardData (www.carddata.com)

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

Details

Midwest Bank and Moneris Renew Contract

Chicago-based Midwest Bank and Trust Company has renewed its credit card processing contract with Moneris Solutions. Midwest Bank, a Moneris customer for eight years, elected to renew its agreement with Moneris Solutions and continue working together to achieve annual processing volume and income goals, as well as engaging in joint sales and marketing activities. Midwest Bank and Trust Company is a full service community bank with a network of sixteen banking centers serving communities in Cook, DuPage, McHenry and Lake Counties. Moneris Solutions (www.monerisusa.com) has a 30-year history as one of North America’s largest electronic transaction processors, delivering advanced payment card processing capabilities through point-of-sale hardware, payment processing software, e-commerce solutions and a gift and loyalty program.

Details

Bank One Q2 Profits Up 39%, Volume Up 16%

Bank One reported this morning that its credit card profits for the second quarter hit $389 million, a 39% increase over one-year ago. During the second quarter, Bank One reported that average owned loans increased 4% over last year to $75.6 billion. Charge volume for the quarter increased 16% to $47.1 billion. The managed net charge-off ratio increased to 5.44% from 5.21% in the prior year, and 5.35% in the prior quarter. The 30-day managed delinquency ratio decreased to 3.37% from 3.75% in the prior quarter, and 3.95% one-year ago. The number of credit cards issued grew 17% to 60.8 million. Paymentech’s bank card volume increased $9.4 billion, or 24% and total transactions increased 358 million or 21% over the prior year. For complete details on Bank One’s 2Q/04 performance visit CardData ([www.carddata.com][1]).

BANK ONE INCOME SNAPSHOT
2Q/03: $279 million
3Q/03: $285 million
4Q/03: $347 million
1Q/04: $319 million
2Q/04: $389 million
Source: CardData (www.carddata.com)

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

Details

Chase Profits Up 7%, Adds 200K Net Accounts

J.P. Morgan Chase this morning reported that card earnings were $176 million for the second quarter, a 7% increase over 2Q/03. Credit card outstandings were relatively flat compared to one-year ago at $51.3 billion. Charge-offs came in at 5.84%, compared to 5.80% in the previous quarter, and 6.02% one-year ago. Delinquency (30+ days) declined 16 basis points over the first quarter to 4.27%. Delinquency for 2Q/03 was 4.40%. Charge volume for 2Q/04, which includes total customer purchases, cash advances and balance transfers, was $24.1 billion, compared to $22.2 billion for 2Q/03. Chase reported that it signed up about one million new accounts in the second quarter. The issuer ended the quarter with 31.0 million gross card accounts, an net gain of 200,000 accounts since the prior quarter. Chase also reported 16.4 million active card accounts, a 100,000 account decline since the first quarter. For complete details on Chase’s second quarter performance visit CardData ([www.carddata.com][1]).

CHASE CARD PROFITS
2Q/03: $165 million
3Q/03: $198 million
4Q/03: $172 million
1Q/04: $162 million
2Q/04: $176 million
Source: CardData (www.carddata.com)

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

Details

Ilium Releases Software eWallet 4.0

MI-based Ilium Software has released “Software eWallet 4.0” a software utility for Palm-powered handhelds and Windows operating systems. Several upgrades in Version 4.0 enable users to navigate eWallet faster. An updated toolbar makes it easy to access eWallet features; in the Palm Powered handheld version, eWallet now supports an essentially unlimited number of categories rather than previous limit of sixteen. Ilium Software, a privately held, independent software vendor, produces and sells several award-winning utilities for mobile and desktop devices, including Ilium Software eWallet(R), ListPro(R), FreeWallet(TM), Keep Track(TM), Recordian(R), GameBag One(TM), and DockWare(R). Complete information about Ilium Software and its products is available on the Internet at www.iliumsoft.com.

Details

TSYS Revenues Up 12% as Profits Edge up by 5%

TSYS reported that its second quarter revenues increased 12% to $289.6 million, as net income rose 5% to $36 million. During the quarter J.P. Morgan Chase selected TSYS to provide credit card processing for the merged card portfolios of the former Bank One and JPMorgan Chase, which includes 87 million cardholders. TSYS also reports that Vital’s Internet transaction volumes increased over 70% for 2004 as compared to last year. Accounts on file increased to 287.0 million, up 9.4%, compared to 262.5 million at June 30th of last year. For complete details on TSYS’ 2Q/04 performance visit CardData ([www.carddata.com][1]).

TSYS Revenues
2Q/03: $257.7 million
3Q/03: $266.1 million
4Q/03: $278.3 million
1Q/04: $285.2 million
2Q/04: $289.6 million
Source: CardData (www.carddata.com)

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

Details

Hilco Hires a 24-Year Industry Veteran

Chicago-based Hilco Receivables has hired Daniel Olson, formerly with Sears collections and AT&T Universal, as SVP. Mr. Olson is a 24-year veteran of the credit and collections industry. Most recently, he served seven years with Sears Roebuck, managing the company’s extensive network of outsourced collection agencies. Hilco Receivables, LLC (www.hilcoreceivables.com) is a leading provider of accounts receivable services.

Details

Corp Card & Expense Management Blended

MasterCard announced it has seamlessly integrated its corporate card data into PeopleSoft “Enterprise Expense Management” applications. This integration enhances the relationship announced in November 2003 with the launch of MasterCard ExpenSys(TM), a travel and entertainment (T&E) reporting solution that integrates with existing third-party enterprise solutions, including PeopleSoft Enterprise Expense Management. PeopleSoft and MasterCard products, when used together, enable businesses to now integrate corporate card data into PeopleSoft Enterprise Financials, maximizing the benefits of PeopleSoft’s Enterprise Expense Management application and the information held in MasterCard’s state-of-the-art global data repository. MasterCard International is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members’ credit, deposit access, electronic cash, business-to-business and related payment programs.

Details

Standard Federal Offers Money Transfer Card

MI-based Standard Federal Bank has launched a prepaid card that can be used to withdraw funds from ATMs that display the “Cirrus” or “Maestro” logos, worldwide. The new “Standard Federal Bank Money Transfer Card” can also be used to make purchases using a PIN at “Maestro” merchants worldwide. The “Money Transfer Card” account package includes two identical cards that are linked to the same card account. The card account purchaser (who funds the account) retains one card and provides a designated secondary cardholder with the other card. Both cards can be used to access account funds via ATMs using a PIN selected by the purchaser. The card is available to both customers and non-customers of Standard Federal Bank. The initial cost for card is $5, with no monthly maintenance fee. Withdrawals are $2.75 at any “Cirrus” or “Maestro” ATM and free at any Standard Federal Bank ATM. There is no card fee for PIN-based POS purchases. The cards can be reloaded at any of Standard Federal’s 265 branch locations in Michigan and Indiana. Last month, Citigroup introduced a new program to enable “Banamex USA” cardholders to add cardholders residing in Mexico. Under the program, the U.S. cardholder is given a “Banamex USA” credit card and the designated person in Mexico gets a card issued by Banamex in Mexico. (CF Library 6/16/04).

Details

Works Adds Concord’s Kilburn to the Board

TX-based Works, Inc. has added Miles Kilburn, former EVP/Chief Strategy Officer at Concord EFS, to its Board. With the addition of Mr. Kilburn, the Works Board now includes Nikhil Sinha, Chairman of the Works Board and Associate Dean at the University of Texas, Martin Neath of Adams Capital, Leland Murphy of Trellis Partners, and Jerry Lester, Chief Executive Officer. Mr. Kilburn recently left his position as Executive Vice President and Chief Strategy Officer at Concord EFS, Inc. after leading the organization through its successful merger with First Data Corporation. Works, Inc. is redefining how commercial cards are used by businesses today.

Details

ECHO to Challenge LML E-Check Patents

Electronic Clearing House has hired Sidley Austin Brown & Wood to defend itself in the e-check patent infringement suit filed last week in U.S. District Court by LML Payment Systems and LML Patent Corp. ECHO has not had an opportunity to review the complaint. However, ECHO has been aware of the LML patents for some time and has previously retained outside patent litigation counsel at the 1,500-attorney law firm of Sidley Austin Brown & Wood LLP. ECHO (www.echo-inc.com) provides a complete solution to the payment processing needs of merchants, banks and collection agencies.

Details