OPC Introduces E-Check Payments

CT-based Official Payments has introduced a new electronic check payment option. First launched in December, OPC has already brought 34 government agencies live on this new service. OPC currently provides electronic payment alternatives including electronic checks, Internet and telephone-based credit and debit card payment processing services. OPC provides electronic payment services for the Internal Revenue Service, 22 states, the District of Columbia and more than 1,500 local government clients nationwide.

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Delinquency Turns South in Q1

Based on total dollars past-due, credit card delinquency declined in the first quarter compared to the level set in the previous quarter, but remains above last year’s ratio and well above historical figures. The decline is significant due to the “denominator effect” in the first quarter, wherein consumers typically pay-off their holiday charges, thus reducing the total amount owed on credit cards by 2% to 3%, compared to the previous quarter. According to data gathered by the American Bankers Association, based on the number of accounts past-due, delinquency was 4.21% in the first quarter, compared to an all-time high of 4.43% reached in the fourth quarter. Based on total dollars outstanding, bank card delinquencies decreased to 4.65% in the first quarter, from 4.92% in the previous quarter. The composite ratio of closed-end installment loans 30 days or more past due decreased slightly to 1.86% from 1.89% of all accounts. The ABA composite ratio tracks eight closed-end con sumer installment loans, including personal, auto and home equity.

1Q CREDIT CARD DELINQUENCY HISTORY (based on total dollars outstanding)
2004: 4.65% 2002: 4.50% 1998: 5.42% 1994: 3.51% 1990: 3.29% 1986: 4.92% 1982: 3.33%
2003: 4.51% 2001: 4.13% 1997: 5.43% 1993: 3.98% 1989: 3.39% 1985: 3.10% 1981: 3.16%
2000: 3.94% 1996: 4.62% 1992: 4.31% 1988: 3.71% 1984: 2.84% 1980: 3.00%
1999: 4.44% 1995: 3.50% 1991: 4.55% 1987: 3.71% 1983: 3.06%
Source: American Bankers Association Delinquency Bulletin

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CTFS BIZ CARD

BMO and Canadian Tire have teamed to launch a new MasterCard business card. The “Canadian Tire Commercial Link MasterCard” will replace the current “Canadian Tire Business Class Commercial Card” starting July 28th. The new business card offers Canadian Tire “CashBack” rewards on all business purchases, credited on an annual basis; $0.02 per litre discount for gas purchases at Canadian Tire Petroleum gas stations when paid with the new card; a no annual fee and a fee option for accelerated reward accumulation rate (at $65 owner/$5 employee card fee); up to $50,000 business credit; option to pay 3% of balance every month; and, business-owner managed account with distinct employee card limits as delegated by the business owner. The “Canadian Tire Business Class Commercial Card” is held by more than 50,000 active Canadian Tire business customers.

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Canadian Tire Rolls-Out a New Biz Card

BMO Bank of Montreal and Canadian Tire have teamed to launch a new MasterCard business card. The “Canadian Tire Commercial Link MasterCard” will replace the current “Canadian Tire Business Class Commercial Card” starting July 28th. The new business card offers Canadian Tire “CashBack” rewards on all business purchases, credited on an annual basis; $0.02 per litre discount for gas purchases at Canadian Tire Petroleum gas stations when paid with the new card; a no annual fee and a fee option for accelerated reward accumulation rate (at $65 owner/$5 employee card fee); up to $50,000 business credit; option to pay 3% of balance every month; and, business-owner managed account with distinct employee card limits as delegated by the business owner. The “Canadian Tire Business Class Commercial Card” is held by more than 50,000 active Canadian Tire business customers.

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VISA Launches a VbV Consumer Campaign

VISA USA is launching a seven-month online advertising campaign to build consumer awareness of “Verified by Visa” by focusing on the message of prevention. VISA also recently inked agreements with several key e-commerce players to adopt the “Verified by Visa” including CompUSA, JetBlue Airways, Digital River, and 2Checkout.com. VISA says more than 9,000 issuers worldwide offer “VbV”, making it available to more than 250 million debit and credit cardholders. More than 17,000 Internet retailers now accept “VbV.” During the first quarter, e-commerce spending in the USA on VISA-branded credit and debit cards reached $22.3 billion. Through May 31st, Visa USA’s year-to-date e-commerce dollar volume increased 59% over the same period in 2003. In 2003, VISA debit and credit card e-commerce volume increased by 53.2% to a total of more than $60.4 billion. At the same time, the number of transactions grew 44.5%, to more than 722 million.

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[1]: http://www.cardweb.com/images/v/visa/verified_ads.jpg

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Paymentech to Process for Wannado City

Paymentech landed a multi-year agreement with “Wannado City,” a new indoor role-playing theme park in Plantation, FL that invites children from ages 4-11 to take on the career of their dreams in a city created just for them. The processor will provide end-to-end payment processing via frame relay connectivity, as well as comprehensive, Internet-based reporting tools. The first Wannado City Fort Lauderdale, which will be the size of three football fields, is slated to open in July 2004, with nine more locations across the country planned in the coming years.

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