CNBC Goes FreedomPay for Employees

CNBC has decided to deploy FreedomPay’s tap and go cashless payment and loyalty solution in its New Jersey employee dining facilities and employee commuter bus fleet. FreedomPay, Inc. is the world leader in business process outsourcing (BPO) to the nation’s largest hospitality food service providers, Fortune 1000 corporations, healthcare facilities, universities, sports and entertainment, and the military delivering a global infrastructure for world class payment, loyalty and settlement services.

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Household Adds $1B During Third Quarter

HSBC’s Household reported this week that its VISA/MasterCard third quarter receivables jumped by nearly $1 billion since the second quarter. Over the past twelve months, Household’s bank credit card outstandings have increased 11%, to $17,555,886,000. Quarterly charge volume is up 3.7% since 3Q/02 to $9.7 billion. Year-to-date, Household’s charge volume is $27.4 billion. Household’s active accounts have increased 15.4% in the third quarter to end at 12,627,000. At the end of the second quarter Household had $16,610,531,000 in credit card loans. Meanwhile, Household also announced this week the launch of the “Build Your Tomorrow” consumer education program. The program includes a $25,000 grand prize sweepstakes, 120 financial education workshops, $8 million in customer scholarships, and $3 million in financial education grants. Household has also partnered with Equifax to help consumers understand credit scores. For complete details on Household’s third quarter performance visit CardData ([www.carddata.com][1]).

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

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People’s Bank Grows Outstandings 6% since 2Q

CT-based People’s Bank reported yesterday that its efforts to rebuild its credit card business is paying off. During the third quarter, People’s posted an 18% gain in average receivables compared to one year ago. Net charge-offs for the third quarter improved by $10.7 million compared to the third quarter of 2002, and the net charge-off rate declined by 301 basis points to 4.76%. Delinquencies also decreased $25.8 million on a year-over-year basis and an improvement in the delinquency rate of 185 basis points to 2.68%. At the end of the third quarter People’s had $2.4 billion in outstandings, a 6% increase since the second quarter. For complete details on People’s third quarter performance visit CardData ([www.carddata.com][1])

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

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Business Cards are Key to Expense Management

Ontario-based Geac has found that companies are doing more with less by streamlining expense reporting
workflows and audit processes. The firm says 76% of its clients indicated that company credit card adoption was a key to expense management. Geac surveyed organizations representing some 125,000 Geac expense management users (of the more than 1 million worldwide) with a combined monthly document volume of over 200,000 expense reports.

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PayPal Introduces New Buyer Protection Program

PayPal has launched a new “Buyer Protection” program that gives buyers up to $500 of coverage for qualified transactions on eBay. Sellers qualify for the PayPal Buyer Protection program by maintaining a 98% positive feedback rating on eBay and having at least 50 feedback points. Sellers must also select PayPal on the “Sell Your Item” form, have a verified PayPal account and be based in the United States or Canada. In 1998, PayPal, an eBay Company, enables any individual or business with an email address to send and receive payments online securely, easily and quickly.

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Teens and Pre-Teens Receive and Spend Big on Clothing

Opinion Research Corporation has released a survey on teens and pre-teens that found more than 90% of both groups receive money to spend as they want, and that, by far, the top spending choice among teens is clothing. Just over half of teens (53%) and 60% of pre-teens get an allowance, which 86% of teens and 90% of pre-teens supplement with money from friends or relatives. At Opinion Research Corporation, we value the success of our clients and immerse ourselves in the business issues they face, the industries in which they compete and the audiences they serve.

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FleetBoston’s Portfolio Edges Upward in 3Q

FleetBoston reported yesterday that credit card outstandings edged up slightly during the third quarter to $14.8 billion, but remain down $700 million compared to 3Q/02. Since the first of this year Fleet’s outstandings have declined due to portfolio sales, lower balance transfers, a decline in cash advances, and other normal seasonal factors. For the third quarter, the delinquency rate increased to 3.91% compared to 3.89% for 2Q/03, and compared to 3.83% one year ago. Delinquency at the end of the first quarter was 3.83%. Charge-offs for the third quarter hit 6.80% compared to 6.56% in the prior quarter, and compared to 5.25% one year ago. Charge-offs for the first quarter were 5.16%. Fleet has about 9.4 million accounts. For complete details on FleetBoston’s third quarter results visit CardData ([www.carddata.com][1]).

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

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BofA Leads the Pack of ACH Payment Recipients

The Electronic Payments Association has released its first ever list of the top 50 largest receiving financial institutions of ACH payments which shows Bank of America topping the list with more than 507 million payments. A significant finding of the NACHA survey is that the receipt of ACH payments is much less concentrated than origination. The top 5 institutions accounted for 22 percent of ACH volume, compared to 49 percent on the origination side. NACHA is the leading organization in developing electronic solutions to improve the payments system.

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Vital Takes Control of Charge-back Specialist

AZ-based Vital Processing Services has acquired a majority interest in MD-based Merlin Solutions for an undisclosed amount. Merlin is focused on providing chargeback dispute resolution and related outsourcing services to acquirers, ISOs and merchant processors. Its full capabilities extend from sales draft retrieval requests through chargebacks, reversals, representments to compliance, arbitration, collection services and customer support. Vital estimates that acquirers spend approximately two dollars on back-office operations for every one-dollar spent on processing transactions. Vital’s strategic vision is to become the leading provider of back-office support services for their clients. For the next few months, it will be business as usual as Vital prepares a seamless transition of their clients’ OFS business to Merlin. Vital is planning the transition to close in early 2004.

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Pepsi-Cola Inks Major Deal with U.S. Wireless Data

Pepsi-Cola North America has inked a deal with U.S. Wireless Data to purchase a minimum of 10,000 “Synapse Enablers” for vending. U.S. Wireless Data provides wireless transaction delivery and gateway services to the payments processing industry. Our customers include credit card processors, merchant acquirers, banks, ATM distributors and their respective sales organizations, as well as certain businesses seeking new solutions to make it easier for their customers to buy their products or services.

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Experian Launches PLUS Score for Consumers

Experian has introduced their new “PLUS Score” that enables consumers to make judgements about their credit decisions, based on a distillation of many credit scores. The PLUS Score was developed in response to the need we saw for American consumers to better understand the world of credit and how they might lower their credit risk and improve their chances for obtaining credit. Experian provides strategic support to organizations around the world. It helps its clients target, acquire, manage and develop profitable customer relationships.

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PayPal Income Up 83% as Volume Tops $3B

eBay reported Thursday that its PayPal business handled $3.0 billion of gross payment volume during the third quarter, a 70% increase over 3Q/02. PayPal produced $106.4 million in transaction fees for 3Q/03, an 83% jump over the year-ago quarter. At the end of the third quarter PayPal had 35.2 million accounts, compared to 19.7 million one year ago. During the third quarter, PayPal handled 57.4 million payments, an 83% increase over 3Q/02. PayPal captured 67% of eBay’s total $5.8 billion in total sales volume during the quarter. PayPal’s transaction revenue rate was 3.49%, and the processing expenses rate was 1.25%. PayPal’s transaction loss rate came in at 22 basis points compared to 42 basis points one year ago. For complete details on eBay/PayPal’s third quarter performance visit CardData ([www.carddata.com][1])

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

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