MasterCard and Pizza Hut have teamed to offer the “Get the Gold: sweepstakes. The contest offers consumers a chance to take home the grand prize of $25,000 in gold coins or a first prize of a $10,000 “MasterCard Gift Card.” Customers will be automatically entered for a chance to win every time they use a MasterCard card to purchase a “Stuffed Crust GOLD Pizza” or any other Pizza Hut pizza between “Super Bowl Sunday,” January 26, and March 9. The winners will be selected on or about March 31st. Pizza Hut has 7,000 locations in the USA. This is one of the first promotions Pizza Hut has done with MasterCard.Details
Infineon Technologies reported revenues for the quarter ending December 31st of Euro 1.52 billion, an increase of 47% year-on-year. The revenue increase was mainly driven by higher demand for memory products and semiconductors used in mobile phones. Effective November 1, 2002, Infineon merged its Wireless Solutions and Security and Chip Card ICs groups into a single group called Secure Mobile Solutions. Infineon believes that combining the operations of the two groups will enable it to better address the continuing convergence of the markets for security and mobile applications, for example in future generations of mobile phones. Revenues for Secure Mobile Solutions for the quarter were Euro 412 million, up 11% from the previous quarter and up 44% compared to the same quarter of last year. The revenues increase was mainly driven by the stronger Christmas business for mobile phones. It also included the full quarter revenues from Ericsson Microelectronics, acquired in September 2002. EBIT amounted to a loss of Euro 28 million, compared to a loss of Euro 22 million in the previous quarter but improved from a loss of Euro 60 million year-on-year. The quarterly loss was mainly due to lower sales volumes and strong pricing pressure for chip card ICs, as well as integration costs and operating losses totaling Euro 34 million for the acquired Ericsson Microelectronics business.Details
Fair, Isaac and Company, Incorporated introduced the first consumer online product to combine credit reports from all three major U.S. credit reporting agencies with the industry-standard FICO credit score calculated from TransUnion data and Fair, Isaac’s personalized score explanation. Consumers can use the 3 Bureau Report with FICO Score to achieve several goals. They can assess their true credit potential the same way lenders do, learn the best ways they can improve that potential over time, verify the accuracy of their credit report from every major credit reporting agency, and check for credit fraud or identity theft.Details
Dublin-based Trintech Group said that London’s newest luxury hotel has implemented its “PayWare Merchant.” The new London Marriott Hotel Park, which opened in November, is the new flagship hotel of the global hospitality company. The Trintech solution has been specifically designed to offer a fast customer payment experience that can handle multiple payment types from multiple locations, including the Internet and call centers. “PayWare Merchant” provides London Marriott with a fully automated solution that can handle multiple payment types, including a seamless migration to smart cards and PIN-based cards.Details
Bank of America announced yesterday it has expanded the mini card program to its “Check Card.” BofA, the largest issuer of “VISA Check Cards”, is the first financial institution to offer a mini card linked to a customer’s checking account. Initially launched to credit card customers in October, the BofA mini card is about half the size of a regular “Check Card,” and is designed to be attached to a key chain. The card can only be used with swipe terminals, not ATMs. Bank of America has more than 17 million “Check Card” holders. By the end of this year, the company says it will have issued mini cards to more than 11 million BofA customers. BofA also holds the patent for the new mini card. Following the first year, under a license from Bank of America, VISA member banks will be permitted to issue VISA-branded mini cards, for which Bank of America will receive royalty payments. (CF Library 10/2/02)Details
Vodafone and LogicaCMG have teamed to launch Vodafone’s m-pay cards service which enables Vodafone’s UK customers to use a phone card to purchase theatre tickets, books, CDs, etc. without the need to enter credit card details every time. The first retailers to participate in the mobile wallet program are customers of WorldPay, the electronics payment specialist owned by Royal Bank of Scotland Group. Logica’s integration with WorldPay will potentially enable more than 20,000 Web merchants to use the Vodafone m-pay cards service. LogicaCMG also assisted Vodafone in integrating Digital Rum, a WAP Merchant
Aggregator. To register for the m-pay cards service, customers simply access Vodafone m-pay on the vodafone.co.uk web site, and enter their credit/debit card number and address details these are verified by unique software integrated, customized and implemented by LogicaCMG.
Speakers from leading technology companies, government agencies and industry research firms will address technology and policy considerations for protecting identity at the Smart Card Alliance February Mid-Winter Conference to be held in Salt Lake City, Utah from February 12 ÃÂ 13, 2003. The Smart Card Alliance is a not-for-profit, multi-industry association of member firms working to accelerate the widespread acceptance of multiple applications for smart card technology. Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought.Details
The OCC confirmed yesterday it has forced SD-based First National Bank in Brookings to pay $6 million in restitution to credit card customers harmed by its marketing practices. FNB operated a number of sub-prime credit card programs that ended up producing little or no available credit to its customers. For example, customers were required to pay $75 to $348 in application fees, and were subject to security deposits or account holds ranging from $250 to $500. Because of the high fees and required deposits, a high percentage of applicants received cards with less than $50 of available credit when the cards were issued. In another program, the bank’s television commercials promised a “guaranteed” card with no “up-front security deposit” and a credit limit of $500. The bank then placed a $500 “refundable account hold” on the $500 credit line. As a result, customers received a credit card with no available credit when the card was first issued. In another program, customers were required to make a $100 security deposit before receiving a card with a $300 credit limit. An additional security deposit of $200 and a $75 processing fee were charged against the card when it was first issued. As a result, the customers who received the card had only $21 of available credit when the card was first issued. The OCC says the bank also engaged in a number of practices that the OCC believes may have confused customers. For example, in a third program, the bank advertised a card with no annual fee, but which carried monthly fees. Although those fees were disclosed, the OCC believes that monthly fees effectively function as annual fees. The OCC also ordered the Bank to terminate, by March 31, merchant processing activities conducted through First American Payment Systems. The OCC found that the bank had an unsafe volume of merchant processing activities and that bank insiders with financial interests in the company impermissibly participated in bank decisions that affected their personal financial interests.Details
J. P. Morgan Chase reported this morning that its credit card outstandings were flat compared to the third quarter, but 23% higher than 4Q/01 due to its acquisition of $8.2 billion in Providian outstandings last year. Charge-offs were also higher than the previous quarter and year-ago quarter, due primarily to the inclusion of the Providian portfolio. Gross dollar volume of $21.2 billion for 4Q/02 was down 8% compared to 3Q/02 but up 4% over 4Q/01’s $20.3 billion. Outstandings at EOY 2002 were $51.1 billion compared to $41.6 billion at EOY 2001. On a managed basis, the credit card net charge-off ratio was 5.75% for the fourth quarter, compared to 5.59% for the third quarter, and 5.56% for the fourth quarter of 2001. The 30+ day delinquency rate was 4.67%, up 20 basis points from 3Q/02 but down 10 basis points from 4Q/01. For the fourth quarter, Chase added 600,000 net new accounts, ending 2002 with 29.2 million gross credit card accounts. One year ago Chase announced its purchase of a slice of the Providian portfolio which included $7.0 billion in “Platinum” accounts and $1.2 billion in “Classic” accounts. For complete details on Chase’s 4Q/02 performance, plus prior results, visit CardData ([www.carddata.com]). (CF Library 1/16/02)
Wells Fargo reported yesterday its fourth quarter outstandings were up 5.0% compared to the previous quarter, and up 6.7% compared to 4Q/01. Credit card volume increased by 9.0% to $3.5 billion, compared to $3.2 billion one year ago. Wells active account ratio was 59.2% at EOY 2002. For the fourth quarter Wells added more than 28,000 net new accounts. At the end of 2002, Wells had 5.3 million gross accounts and 6.9 million cards-in-force. For complete details on Wells Fargo’s 4Q/02 performance, plus past performance, visit CardData ([www.carddata.com]).
WELLS FARGO PORTFOLIO SNAPSHOT
4Q/02 4Q/01 CHANGE
OUT: $5,672,931,433 $5,317,074,186 +6.7%
Q/VOL: $3,475,663,433 $3,189,876,838 +9.0%
ACCTS: 5,326,341 5,209,428 +2.2%
ACTIVES: 3,153,681 3,044,835 +3.6%
CARDS: 6,912,602 6,767,490 +2.2%
Source: CardData (www.carddata.com)
Capital One reported 4Q/02 profits of $239.7 million, a 34.9% increase over the fourth quarter 2001. However, Cap One’s managed net revenue margin decreased to 16.11%, from 17.49% in the previous quarter primarily due to its shift away from the sub-prime market. Cap One’s account base also dropped by nearly 800,000 accounts during the fourth quarter to 47.4 million accounts. The managed net charge-off rate increased to 6.21% in the fourth quarter from 4.96% in the previous quarter. The managed delinquency rate (30+ days) increased to 5.60% for 4Q/02, compared to 5.36% for the third quarter. Cap One says the increase in delinquency and charge-offs reflects the seasoning of sub-prime accounts added to the portfolio in 4Q/01 and early 2002, and the slower growth in the portfolio in the fourth quarter of 2002. The company now expects its managed charge-off rate to increase to the mid-to-high six percent range in the first quarter of 2003 and remain in this range in the second quarter of 2003. In the second half of 2003 the company now expects the charge-off rate to decline to the low-to-mid six percent range. Managed loan balances for EOY 2002 increased by 32%, to $59.7 billion. For complete details on Capital One’s 4Q/02 performance as well as historical performance visit CardData ([www.carddata.com]).
GE Consumer Finance will be expanding the use of Mosaic’s EFT product,
“Postilion,” worldwide within two years. “Postilion” is used to perform
stand-in authorization for GE’s “PaySys VisionPLUS” host systems.
Transactions are currently routed from retail facilities worldwide to the
“Postilion” system in either Thailand or the United Kingdom for
verification and approval. Once other countries adopt the new system,
consumer-generated transactions will be routed to the “Postilion” server
closest to the country where the transaction originated. The success of the
first two Postilion installations for GE Consumer Finance’s businesses in
the United Kingdom (2001) and Thailand (2002) resulted in a commitment from
GE Consumer Finance to roll out “Postilion” services in Indonesia, Poland,
Hungary and Mexico by the end of 2004.