Gulf Coast Educators Federal Credit Union has signed a deal to move its 5,000 MasterCard cardholders to Dallas-based TNB Card Services. TNB Card Services provides full-service card processing through an alliance with First Data Corporation. TNB Card Services was formed in 1976 by a group of credit unions that joined forces to gain membership in the payment brand associations.Details
Alliance Data Systems has signed a multi-year agreement extension with Marathon Ashland Petroleum to continue providing network processing and bankcard settlement to 5,900 Marathon, Speedway and SuperAmerica branded locations nationwide. Alliance Data Systems (NYSE: ADS) is a leading provider of transaction services, credit services and marketing services.Details
MasterCard International and has signed a “Preferred Alliance” agreement with Cendant to promote the MasterCard card through all Cendant hotel brands, Galileo International, and through its affiliation with Trip.com. MasterCard and Cendant will jointly develop and promote special offers available exclusively to MasterCard cardholders, which will be promoted through online and offline advertising, promotional campaigns and point-of-sale materials.Details
Canada’s Mobile Knowledge has signed a key contract worth over US$300,000 with Yellow Checker Cab Company of San Jose, California. Earlier this month, the company signed a contract with Taxi Equipment Company. Taxi Equipment Co. provides taxi dispatch, support and technology services to six related operating companies, including LA Taxi Co-op and Long Beach Yellow Cab Co-op in California. The company previously inked a deal with Washington, DC-based Barwood Inc. All three contracts involve Mobile Knowledge’s “Series 6000” terminals. The terminals provide taxi drivers with the ability for customers to use credit cards and smart cards. The terminals feature multimedia color touch screens for use by both drivers and passengers, and full GPS location-tracking services. (CF Library 10/1/02)Details
NJ-based Incurrent has hired William Kinnelly, formerly COO of Retail Decisions’ U.S. division, to the position of Chief Marketing Officer. Kinnelly comes to Incurrent from Retail Decisions, Inc., a global credit card payment processor to telecom and ecommerce firms. During his tenure as COO of the US Company and President of the telecom business unit, revenue increased by 100% and profit grew four-fold.Details
TSYS has been selected as the exclusive processor for Sears Canada’s 9
million retail cards and will begin the migration next year. More than 80%
of Canadian households are Sears cardholders. TSYS has processed card
accounts in Canada since 1989 and is the dominant processor with 20% of the
overall card market. Ninety percent of adult Canadians own a banking card,
and the average Canadian carries three different credit cards. Canada has
approximately 35,000 ATMS and over 600 credit card issuers for a population
of nearly 31 million people. More Canadian households use credit cards than
in the USA — 89% versus 76%. TSYS also processes for Canadian Tire.
Budapest-based Euronet Worldwide has named a new CFO and controller. Rick
Weller, formerly COO of ionex telecommunications, has been named EVP/CFO.
Kendall Coyne, fomer CFO will become Euronet’s controller, focusing on
streamlining accounting, reporting and business processes and controls. At
mid-year, Euronet owned and/or operated a total of 2,840 ATMs. The company
owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech
Republic, the U.K., Greece and Egypt.
SCM Microsystems reported third quarter revenues of $40.9 million, down
12% from revenues of $46.5 million in the third quarter of 2001. The
Company recorded a pro forma operating loss of $1.3 million in the third
quarter. Revenues from the Company’s Security division were $14.3 million.
SCM says it expects to see continued strong demand for its smart card
reader technology for US government security applications. For the fourth
quarter, management estimates that revenues from the Security business will
be in the range of $15 million to $18 million.
KS-based Euronet Worldwide has named a new CFO and controller. Rick Weller, formerly COO of ionex telecommunications, has been named EVP/CFO. Kendall Coyne, fomer CFO will become Euronet’s controller, focusing on streamlining accounting, reporting and business processes and controls. At mid-year, Euronet owned and/or operated a total of 2,840 ATMs. The company owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, the U.K., Greece and Egypt.Details
Wincor Nixdorf has signed a deal to resell POWERVAR’s “Ground Guard” power conditioning products to protect POS systems in hospitality and foodservice establishments. POWERVAR’s Ground Guard power conditioners eliminate the need for dedicated electrical circuits and isolated ground wiring, through a “ground conditioning” feature combined with standard power conditioning elements. This assures a steady supply of clean power that allows mission-critical POS appliances to operate efficiently.Details
Sydney-based Cards etc has launched the third release of its smart card
management software for card issuers and service bureaus. “Arterium 3.0” is
four times faster than the previous version and offers “Key Manager,” which
provides all the key management capabilities necessary to support Arterium
data preparation and personalization processes, making it easy to create,
generate, import and migrate keys securely.
The software also features an “Application Programming Interface” and
“Software Development Kit,” enabling third parties to develop Arterium
support for their own applications. The software development kit provides a
rapid development environment for developers to build and test code using
the “API.” Arterium manages the entire lifetime of the card from launch
through to expiry and enables partners who share space on the chip to
retrieve and update cardholders, cards and products. Arterium is currently
in use by First Data, Acer Corporation in Taiwan, and ECard in Australia.
Providian reported third quarter net income of $42.1 million compared to second quarter net income of $153.9 million, and net income of $57.2 million one year ago. Providian is in the process of shedding sub-prime accounts and says its portfolio mix is now 60% middle market/40% prime market. This month the Company completed the transfer of servicing for the higher-risk portfolios to CardWorks and CompuCredit. During the third quarter, the Company originated over 520,000 new customer accounts compared to the origination of approximately 350,000 new customer accounts in 2Q/02. Providian ended the third quarter with $19.4 billion in total managed credit card loans and 12.7 million accounts, compared to $19.6 billion in managed credit card loans and 12.9 million accounts at the end of the second quarter. Delinquency is running nearly 29% above last year levels, and charge-offs are up 60% over 3Q/01. For complete details on Providian’s third quarter performance as well as prior quarter visit CardData ([www.carddata.com]).
Providian Card Portfolio Snapshot
3Q/02 2Q/02 1Q/02 4Q/01 3Q/01 Ann Chng
Loans $19.4b 19.6b 22.1b 32.6b 31.7b -38.8%
Accounts 12.7m 12.9m 15.0m 18.4m 17.9m -29.1%
Delinq* 11.23% 10.16% 10.22% 8.81% 8.71% +28.9%
Losses 16.71% 17.53% 15.05% 12.70% 10.43% +60.2%
* 30+ days past due;
Source: CardData (www.carddata.com)