Select Comfort, the creator of the “Sleep Number” bed, has inked a multi-year deal for Paymentech to process its $200 million in bank credit card annual volume produced by its 356 locations nationwide. Select Comfort cites Paymentech’s all-in-one advantage and advanced technology, especially web-based reporting tools, as key factors in its decision. Select Comfort Corporation is the nation’s leading bed retailer, holding 26 U.S. issued or pending patents for its personalized sleep products. Paymentech, L.P. processes more payment transactions than any other company in North America – and more than half of all Internet transactions – for retailers accepting U.S. and international payments via traditional point of sale, Internet, catalog and recurring payments.Details
OR-based Fred Meyer has launched the “Fred Meyer Rewards Card” offering customers points for all purchases over five dollars. The Rewards Card will pay Customers a rebate for simply using the card when they shop Fred Meyer. Customers earn one “point” every time they spend at least five dollars at Fred Meyer. If a Customer earns at least 100 points during a 13-week period, he or she qualifies for a rebate. Fred Meyer Stores is based in Portland, Oregon and features 129 large multi-department stores in four western states that offer one-stop shopping for a wide range of food, apparel, and general merchandise products.Details
Atlanta-based sub-prime specialist, CompuCredit, reported a first quarter profit $17.7 million, a 64% gain over the prior quarter, but well below 1Q/03’s net income of $29.5 million. The “Aspire VISA” issuer also reported improved first quarter metrics with delinquency dropping 280 basis points, charge-offs declining 460 basis points, and its net interest margin jumping from 15.5% to 17.5%, compared to one-year ago. The 60-plus day delinquency rate was 10.5% for the first quarter, compared to 13.3% at March 31, 2003. The net charge-off rate was 15.7% percent in the first quarter, as compared to 20.3% for the first quarter of 2003. The adjusted charge-off rate was 8.2% in the first quarter, as compared to 10.2% for 1Q/03. Total managed receivables for the first quarter were $2,090,644,000 compared to $2.34 billion in the fourth quarter, and $2.47 billion one-year ago. As of March 31st, CompuCredit had 2,276,000 accounts compared to 3,169,000 at the end of 1Q/03. CompuCredit also announced the appointment of William McCamey, formerly Director of Wachovia Securities’ Corporate and Investment Banking Group, as the Company’s new Treasurer. For complete details on CompuCredit’s first quarter performance visit CardData ([www.carddata.com]).
COMPUCREDIT NET INCOME SNAPSHOT
1Q/03: $29.5 million
2Q/03: $20.3 million
3Q/03: $56.5 million
4Q/03: $10.8 million
1Q/04: $17.7 million
Source: CardData (www.carddata.com)
The UK National Audit Office reports efficiency savings of GBP28 (US$50) for every transaction made using the “VISA Government Purchasing Card” program, as well as environmental savings of 1 million pieces of paper per month. The U.S. Government estimates an average savings of US$54 per transaction, just in administrative costs using VISA payment solutions, versus traditional paper-based processes at federal agencies. VISA says the number of government departments and agencies worldwide that are using VISA solutions to increase efficiency and save money, doubled between 2001 and 2004, generating at least US$4 billion in savings over the same period. VISA says travel card programs can offer similar types of savings, particularly when integrated with electronic expense reporting. VISA International’s own integration of employees’ travel cards with its corporate data systems cut administrative costs of processing expense claims in half from an average of US$52 to US$27 per claim and increased the compliance of expense claims with travel policies to nearly 100 percent.Details
British Columbia-based VeriFone has chosen the Sierra Wireless “EM3420,” a CDMA2000 1X embedded wireless module, for VeriFone’s “Omni” family of mobile and countertop IP-enabled, wireless POS payment terminals. This high-speed, always-on family of terminals allows mobile retailers to execute secure debit and credit card transactions anywhere there is CDMA2000 1X coverage. VeriFone, Inc., ([www.verifone.com]) recognized worldwide as the trusted leader in secure electronic payment technologies, provides expertise, solutions and services for today with a smart migration strategy for tomorrow. Sierra Wireless is a leader in delivering highly differentiated wireless solutions that enable our customers to improve their productivity and lifestyle.
The CO-OP Network has signed an agreement with WesCorp and its Pacific Operations Division to become partners in serving 27 credit unions located throughout the Hawaiian Islands and Guam. These credit unions are slated to become the first South Pacific financial institutions to join the nation’s no. 1 credit union ATM network. CO-OP Network ([www.co-opnetwork.org]), established in 1981 and located in Ontario, Calif., is wholly-owned by its credit union shareholders and provides volume discounts on products and services that include risk management as well as debit and deposit access. WesCorp is Western Corporate Federal Credit Union-America’s largest corporate credit union, serving more than 1,000 member/owner credit unions located throughout the United States and Guam.
U.S. Bank has selected the Coeur d’Alene, ID area for a new service and call center facility to handle debit, small business and consumer credit card accounts, creating up to 500 new jobs over the next five years. The new 60,000 square foot facility will support U.S. Bank’s growing retail payment solutions division, which includes debit, small business and consumer credit card accounts. The call center will be located on the northeast corner of the Mill River development, which lies between Seltice Way and the Spokane River. U.S. Bancorp is the parent company of U.S. Bank. U.S. Bancorp (NYSE:USB), with assets of $192 billion, is the 7th largest financial services holding company in the United States.Details
Lipman Electronic Engineering has launched the “NURIT 8100,” its newest multifunction countertop POS terminal. The “NURIT 8100” is designed to address the POS market that requires high-level features and functionality by enhancing and expanding upon the key technological capabilities of previous NURIT terminals. The “NURIT 8100” provides users with a variety of value-added features and options, including a large graphic display with ATM-style control buttons for simple operation and browsing. Connectivity methods such as Ethernet LAN, Cellular GSM / GPRS and fast landline modem, with Internet and web protocol support, make it ideal for varied communication environments. Together, these features allow NURIT users to benefit from vertical market applications in addition to the traditional payment functionality that is the foundation of the POS terminal, further increasing the value of the terminal for retailers. In addition, the “NURIT 8100” terminal provides a superior level of security, meeting or exceeding all widely recognized standards including regional standards, VisaPED and MasterCard requirements.Details
KANA and Bearing Point have released “KANA Agent IQ” and “KANA Customer IQ for Credit Cards” to provide automated self-service options for service representatives and customers. The IQ for Credit Cards applications are part of KANA’s Service Resolution Management approach to providing customized solutions that address the specific pain points of key vertical markets and strengthen KANA’s already existing financial services, retail banking and branch banking applications. KANA provides knowledge-powered customer service applications enabling organizations to better service, market to, and understand their customers and partners. BearingPoint, Inc. is one of the world’s largest business consulting and systems integration firms, KANA’s Credit Card applications allow companies to optimize service delivery and decrease overall operational costs.Details
San Diego-based Encore Capital Group reported first quarter net income of $6.0 million, compared to $8.2 million for the first quarter of 2003. The first quarter of 2003 included a one-time after-tax benefit from litigation settlement of $4.4 million. The Company spent $17.2 million to purchase approximately $786.4 million in face value of portfolios during the first quarter, a blended purchase price of 2.19% of face value. The Company spent $18.8 million to purchase approximately $589.4 million in face value of portfolios during the first quarter of 2003, a blended purchase price of 3.19% of face value. During the first quarter there was 17% growth in monthly average of gross collections per average employee to $29,282 in the first quarter, from $25,001 in the first quarter of 2003. Encore Capital Group is an accounts receivable management firm that specializes in purchasing charged-off and defaulted consumer debt. For complete details on Encore’s first quarter performance visit CardData ([www.carddata.com]).
A new survey has found that, 74% of bank accountholders say they are less likely to shop online due to phishing. Cyota’s “Financial Institution Email Fraud Survey 2004” also found that 75% of accountholders are less likely to respond to email from their banks, and over 65% said they were less likely to sign-up or continue to use their bank’s online services. According to Cyota’s survey, while the current level of bank education is low, accountholders believe that bank education is needed and effective. De-facto, most accountholders, 67%, had not received any kind of communication or warning about phishing from their banks, but 91% of accountholders answered that communication from their bank in regards to phishing is helpful. Only 30% expressed a high level of confidence that they could distinguish between a real email and a fraudulent one.Details
Charge-offs among the top prime issuers declined 47 basis points during the first quarter, while charge-offs for sub-prime issuers declined 285 basis points, compared to the first quarter of 2003. All of the top issuers posted lower charge-offs for the first quarter except Citibank and Bank One. Capital One, now considered a prime issuer, posted the largest decline, from 7.72% one-year ago to 5.41% for the first quarter of 2004. Citibank’s charge-offs edged up from 5.74% to 6.60%, presumably due to its acquisition of the “Sears Gold MasterCard” accounts during the fourth quarter. Bank One’s charge-offs edged up from 5.29% to 5.35% between the first quarter of last year and this year. The average charge-off rate for the nation’s top seven prime issuers was 5.40%, compared to 5.87% one-year ago. The average charge-off rate for the nation’s top three sub-prime issuers was 15.79%, compared to 18.64% one-year ago. For complete details on first quarter issuer performance visit CardData ([www.carddata.com]).
1Q/04 PRIME ISSUER CHARGE-OFFS
Issuer 1Q/04 1Q/03
Citibank: 6.60% 5.74%
Bank One: 5.35% 5.29%
MBNA: 4.99% 5.47%
Chase: 5.80% 5.95%
Cap One: 5.41% 7.72%
AmEx: 4.60% 5.60%
BofA: 5.05% 5.31%
AVG 5.40% 5.87%
Source: CardData (www.carddata.com)
1Q/04 SUB-PRIME ISSUER CHARGE-OFFS
Issuer 1Q/04 1Q/03
Providian: 13.88% 17.61%
Metris: 17.80% 18.00%
CompuCredit 15.70% 20.30%
AVG 15.79% 18.64%
Source: CardData (www.carddata.com)