Citibank 2Q/99

Citigroup reported yesterday that core income for cards unit increased 96% to $267 million driven by the performance of its acquired AT&T Universal Card Services portfolio and the recently acquired Mellon portfolio. Revenues rose 10% primarily from risk-based fee increases, a 15% rise in sales volume and 13% growth in receivables in U.S. bankcards over the prior year quarter. Receivables reached $70.3 billion and accounts rose 4%, or 1.7 million. Credit continued to improve, as net charge-offs as a percentage of average receivables in the U.S. bankcard portfolio fell to 4.63% from 5.65% in the prior year period and 4.72% in the 1999 first quarter. Internationally Citigroup entered into a co-branding alliance with Cathay Pacific Airways and launched its bankcard product in Hungary and Guam during the second quarter. For complete 2Q/99 financials for Citigroup visit CardData (


2Q/99 1Q/99 4Q/98 2Q/98
RECV: $70.3b $69.4b $69.6b $62.0b
Q-VOL: $40.8b $36.8b $42.2b $35.4b
ACCTS: 41.1m 41.4m 40.5m 39.4m
CO: 4.63% 4.72% 4.82% 5.65%
DEL: 1.36% 1.46% 1.45% 1.56%

CO-charge-offs as a percentage of average receivables; DEL- 90+ day
delinquency rate, percentage of dollars past due

Source: CardData (


iAuthorizer Terminal

Atomic Software announces its new iAuthorizer Web Terminal Internet payment software that was created for low-volume Internet, mail/phone order, retail, and home-based businesses to accept electronic payments affordably.

This new product and service offers a contemporary, low-cost method to merchants for processing electronic payment transactions using a PC and the Internet. iAuthorizer Web Terminal is designed to replace a standalone credit card authorization terminal for merchants that process less than 25 transactions per day.

Merchants simply key in the transaction data on the Web Terminal screen and click on the submit button to send the transaction securely over the Internet to their credit card processor or bank for authorization. When the transaction is approved, an E-mail confirmation is sent to the merchant. The transactions are deposited into their account automatically every day. Merchants can view their reports including the current transaction batch, totals by payment type, and deposit settlement history using a password protected merchant console.

The transaction data and customer information is also downloadable for import into other business management programs for simplified bookkeeping. Web Terminal is certified for use with most of the largest transaction processors and thousands of banks in the United States so merchants may keep their existing banking relationships. It also performs address verification to help eliminate fraud and provide access to the lowest possible transaction rates. “Smaller merchants can now use the Internet to process their electronic payments at a substantially lower fixed cost than before,” states Walt Murphy, Vice President of Business Development. “In addition, Web Terminal enables merchants to leverage their PC investment more effectively.” Atomic Software is a venture-funded company that provides electronic payment solutions to Internet, mail/phone order, retail, and restaurant companies. The Company’s products are certified for use by most major banks and transaction processors in the United States. For more information, contact Walt Murphy, Vice President of Business Development at 678/942-2600 or E-mail to



Qpass and eHNC Monday announced ‘PowerWallet’, a new service that gives online shoppers the speed and convenience of a supermarket’s express checkout lane. ‘PowerWallet’ fills in any form on the Internet, manages online receipts and keeps track of site-specific user names, secure passwords and other shopping preferences. Key solutions include allowing shoppers to fill out their credit card and billing information once, store it securely in the Qpass network data center and then activate it with a mouse click to complete a transaction at any secure point of sale on the Web.


AmEx Desktop Portal

American Express announced Monday that it is developing a desktop portal for business-to-business electronic commerce to be called: ‘American Express @ Work’. The new online business center will deliver a suite of Web-based T&E and purchasing management applications. The portal will integrate existing transaction applications, such as ‘AXI Travel’ for online travel reservations and software for electronic expense reporting, along with new online services, such as ‘Corporate Card’ setup and the ability to download current charges and make changes to the account. The portal will also provide content designed to help managers and employees determine the best travel or purchasing decision. ‘Release 1.0’ of ‘American Express @ Work’, featuring a first layer of product functionality, will begin testing with four American Express clients this month: BASF Corp., Dun & Bradstreet , Nationwide and Scientific-Atlanta Inc. Product development will continue through the fall, and by the end of the year, the company hopes to make the portal available with basic functionality to all ‘Corporate Card’, ‘Business Travel’ and ‘Corporate Purchasing Card’ customers.


NextCard Signs MapQuest

NextCard announced today an exclusive marketing agreement with, a leader in advanced mapping systems. Under the terms of the three-year, $4.5 million agreement NextCard becomes the exclusive credit card sponsor for [][1], the second largest travel site on the Web. In addition, NextCard will design special sweepstakes and promotions specifically for users.

“NextCard is thrilled to offer customized card products to the over 3 million users,” said Dan Springer, chief marketing officer at NextCard. “After extensive testing, we’ve determined that is an ideal partner for reaching the millions of online consumers seeking innovative financial service online.”

“ chose NextCard as a partner because we feel they offer the best credit card product for Internet users,” said Mike Crosson, vice president of advertising at “This new relationship enhances the features offered on the site.”

NextCard, Inc.

NextCard, Inc., creator of The First True Internet Visa, is considered one the industry’s leading target marketer of consumer credit on the Internet. Since its launch in December 1997, over 2 million people have applied for the NextCard Internet Visa, making it one of the premier online credit cards. The Company is a Top 10 online advertiser and continues to innovate with its Double Rewards program, complete GoShopping! tools, original PictureCard design, a one-click digital wallet and exceptional online customer service. NextCard was recently named a “HOT 100 Company” by Upside Magazine.

MapQuest, Inc. is a leader in advanced mapping systems. The Company launched its popular web site ([][2]) on February 5, 1996. Today, is receiving more than 3.1 million unique visitors monthly to its consumer web site. has developed a diverse network of more than 500 business partners, including: Yahoo, Lycos, Infoseek, Excite, AOL Digital City, CitySearch, Travelocity, Bank of America, MasterCard, Kinko’s, Blockbuster, and Dayton Hudson. The Company has been in operation since 1967. THE SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Information contained herein as to NextCard’s expectations and goals are forward-looking statements. Actual results could differ from those projected in these statements due to portfolio characteristics, economic conditions, competition in the industry and other factors detailed from time to time in the Company’s Securities and Exchange Commission filings.



BannerDirect Update

BannerDirect of New York, NY, is pleased to have named Paul Stramberg corporate controller as of July 1,1999. In this newly created position, Mr. Stramberg will be reporting directly to Christine Fontana, President. ‘Paul’s 20 years of combined public and private accounting experience make him the perfect fit for this new position,’ says Ms. Fontana.

Based in New York, Mr. Stramberg will be responsible for overseeing the general accounting department, financial analysis, acquisition possiblities and all other facets of financial control.

‘During the course of a year replete with transaction and growth, it became clear the demands of our business required this position,’ says Ms. Fontana. ‘Paul will have a key role in the corporation.’

Paul Stramberg’s previous positions include controller of Simplex where he ran the accounting department; asisant controller for Latin Communications, Inc.; and, manager of general accounting for CBS Inc.-News Division. He is a graduate of Rider University in New Jersey and currently resides in Ridgewood, NJ, with his wife Ruth and their 2 children.

BannerDirect, Inc. was founded in 1990 as a full-service direct marketing agency devoted primarily to direct response marketing for the financail, entertainment, oil, and retail industries. As today’s announcement demonstrates, BannerDirect has recently experienced significant expansion in both its client base in traditional and new industries as well as its employee base. The company is geographically positioned to meet the needs of its clients with corporate headquarters in New York City, Production management headquarters in Wilmington(NC), and account management offices in Milwaukee(WI), New York City and Carson City(NV).


Wireless All-Star

MasterCard, ARAMARK and U.S. Wireless Data teamed up at last week at the Major League Baseball All-Star Game FanFest to offer wireless payment services. MasterCard and ARAMARK operated more than twenty merchandise outlets during the ‘FanFest’. For these outlets, U.S. Wireless Data and MasterCard provided point-of-sale technology powered by USWD’s ‘Wireless Express Payment Service’.


eCode’s AutoFiller, the Internet’s first and only online identity management service, announced Monday the formal launch of AutoFiller, a Web form-filling utility that allows Internet users to instantly populate any online form with their contact information. also announced today that eCode members can choose to have AutoFiller automatically enter their credit card information on online shopping forms.

Announced earlier this month as a beta product, AutoFiller saves users significant time and frustration in filling out lengthy registration forms.

The utility, free to everyone, is directly launched from users’ browsers or bookmarks and can reside on their desktops. Whenever users want to fill out an online form, they click the AutoFill button and the form is instantly populated. AutoFiller supports Microsoft (Nasdaq:MSFT) Internet Explorer and Netscape Navigator.

“AutoFiller and its new credit card feature make Web surfing and online shopping faster and easier,” said Rohit Chandra, founder and CEO of Santa Clara, California-based “ is committed to providing its users with innovative features that enhance their Internet experience. We expect AutoFiller will become indispensable to Web users because it is secure, easy to use and works on any Web site.

Some of the most popular sites AutoFiller supports include (Nasdaq:AMZN), America Online (NYSE:AOL), CBS (Nasdaq:MKTW), CDNOW (Nasdaq:CDNW), Charles Schwab (NYSE:SCH), Compaq (NYSE:CPQ), Dell (Nasdaq:DELL), E-Trade (Nasdaq:EGRP), eBay (Nasdaq:EBAY), Lycos (Nasdaq:LCOS), Infoseek (Nasdaq:SEEK), (Nasdaq:PCLN), and Yahoo (Nasdaq:YHOO).

Credit Card Feature Makes Online Shopping Simple and Secure

eCode users can start using the AutoFiller credit card feature by entering their credit card type, number and expiration date into their secure contact profile on the Web site once. When users want to include their credit card information along with their contact information, they simply check the “fill credit card” box on the AutoFiller toolbar. By default, AutoFiller will not send any credit card information unless the users check the box. The contact and credit card information is secured each time users autofill an online form. AutoFiller sends all information using SSL (Secure Socket Layer) protocol. SSL encrypts the information so that it cannot be read as the information travels over the Internet. SSL protocol utilizes multi-layer security, including data encryption, server authentication, message integrity and client authentication. is a member of the TRUSTe program and respects the privacy of its members. The site follows the strictest guidelines for protecting and maintaining any and all information the members provide.’s Free Service and Innovative Features Help People Stay in Touch has become the Internet’s hub for contact information because of its unique concept of a single, permanent online user ID called an eCode. Internet users can sign up at: also offers the following features:

— Online Business Card and Self-Updating Address Book — users can create graphical Web-Enabled Business Cards called WEB Cards that they can attach to their emails or display on their own Web sites. Users can collect the eCodes of their colleagues, friends and loved ones and build virtual, self- updating Address Books. When a user’s contact information changes, the updates are automatically reflected in the eCode Address Books of all his contacts. eCode users control their contact information at all times. They decide with whom they share their eCodes and who has access to that information. Visitors and other members alike cannot access a member’s contact information unless they know his or her electronic Code.

— Zero-Data-Entry Maps and Directions — members never need to give out directions. Their WEB Card has an automatic map link icon that provides one-click driving directions and maps to friends and associates. When eCode users view another member’s WEB Card, the system automatically recognizes the two addresses and displays the maps and directions. No manual data entry is required.

— Outlook(TM) and Palm(TM) Synchronization — members can upload and download their eCode Address Books with Microsoft Outlook and 3Com (Nasdaq:COMS) Palm organizers.

Personalized URL and Self-Updating Guest Book — also provides its members with their own personalized URL, e.g., which includes their WEB Card, a self-updating guest book and a counter. Users can host their own guest books without even having a Web site.


Founded in 1997, privately held and funded is the first and only Internet User Identity Company. The company’s online identity service allows computer users to create self-updating online business cards and virtual address books. The company can be reached by eCode at eCodeInfo, on the Web at [][1], by email at, by telephone at 408/845-9400, and by mail at 2350 Mission College Blvd., Suite 777, Santa Clara, CA, 95054.



ATM Market Study

A new study by Atlanta-based Speer & Associates found that average monthly ATM transactions per terminal decreased by 30% to 3,491, reflecting the impact of continued off-premise terminal deployment on the number of monthly ATM transactions per terminal. ATM transactions per card grew slightly to 62 in 1998, up 7% from 58 transactions per card in 1997. Speer also found that the number of ATMs per institution increased 24% overall, as banks focus on establishing larger proprietary programs to service customers while also taking advantage of revenue-generating opportunities. Foreign transaction fees continue to be prevalent among debit card issuers, as many larger issuers now charge $1.50 for foreign withdrawal transactions, compared to an overall industry average of $1.22. In the study Speer projects that after growing at a 25% to 30% clip for the past several years, ATM terminal deployment is slowing, and the research firm expects the rate to continue to drop, with a 10% to 12% annual growth rate through 2000. S&A expects ATM transactions to grow at 11% per year through 2003 to 24 billion, while on- and off-line debit POS volume will expand at 24% per year to reach 13 billion transactions.


Chase 2Q/99

Chase Manhattan added 200,000 accounts during the second quarter while outstandings grew about $800 million, according to 2Q/99 results gathered by CardData ( However Chase’s overall portfolio is about two million accounts less than last year. Chase will release its 2Q/99 earnings report tomorrow.


2Q/99 1Q/99 4Q/98 2Q/98
RECV: $32.2b $31.4b $32.2b $31.4b
Q-VOL: $13.7b $11.9b $13.1b $11.3b
ACCTS: 20.8m 20.6m 21.0m 22.8m
ACTIVES: 12.6m 12.5m 12.8m 13.8m
CARDS: 28.4m 28.9m 29.0m 31.9m

Source: CardData ([][1])



Equifax 2Q/99

Equifax Inc. reported Monday record 1999 second quarter results driven by double-digit revenue growth, keeping pace with the company’s long-term business objectives.

Second quarter highlights, led by the strong performance of Equifax Payment Services, include:

* Revenues for the quarter ending June 30, 1999, climbed 12.5 percent to $442.6 million compared with the prior year period.

* Operating income was $96.9 million versus $92.2 million in second quarter 1998.

* Second quarter earnings per share increased 6 percent from $.35 to $.37.

“Equifax continued to demonstrate solid operating results in the second quarter and first six months of 1999,” said Thomas F. Chapman, Equifax’s chairman and chief executive officer. “We remain focused on delivering results to meet our long-term business objectives even though certain business and market factors may impact our results during a particular quarter. We continue to make strategic investments to expand our capabilities to other markets through Equifax Knowledge Engineering, Equifax Secure and Equifax Consumer Services, our newest business focused on delivering products and services directly to consumers.”

During the quarter, the company’s stock repurchase program remained active, with the Company purchasing over 900,000 shares of stock for $33.2 million. Approximately $217 million remained available for repurchase as of June 30, 1999. Equifax has continued to repurchase its stock during the third quarter of 1999.

During the quarter Equifax incurred Year 2000 readiness expenses of about $5.0 million after tax, or $.035 per share. The 1998 acquisitions in Brazil diluted earnings by about $.02 per share. Revenue growth for the quarter, excluding acquisitions and divestitures, was in the mid-single digits.

“Equifax also announced several strategic initiatives to position the company for the future,” Chapman said. “We strengthened our executive management team in key areas of our business and signed agreements with several new customers, including Fininvest and GE Capital in Brazil. We also entered into partnership with the Sun-Netscape Alliance and introduced server certificates to help businesses secure their web sites for e-commerce over the Internet.”


“Payment Services turned in a strong quarter with excellent performance from Card Solutions and Check Solutions,” said Lee Kennedy, Equifax’s president and chief operating officer. “Our core information business in the United States continues to demonstrate operating leverage and strong expense management. We are pleased with the improved performance in Europe. The economy in Brazil is strengthening, and both our processing and information businesses are performing well. And we are committed to more than doubling the number of cards processed in Brazil by year-end.”

Payment Services, which operates globally through Card Solutions and Check Solutions, increased revenue 23.5 percent to $163.6 million in the second quarter. Global Card Solutions is the leading provider of third-party, full-service processing solutions to credit unions and independent banks in the United States and commenced operations in the United Kingdom in June. The revenue increase in Payment Services was driven primarily by growth in new accounts, new customers and transactions processed in U.S. Card Solutions, as well as our card services business in Brazil which contributed revenue of $14 million for the quarter, and Check Solutions. Operating income of $30.6 million increased 27.7 percent as a result of continued growth of both Card Solutions and Check Solutions.

For the quarter, revenue in North American Information Services of $196.8 million increased 1.4 percent versus second quarter last year. Revenue performance benefited from growth in U.S. Reporting Services, with increased sales across all industries served, partially offset by slightly lower revenue from marketing services. One risk management services customer elected to take its collections business in-house which impacted revenue during the quarter. Canadian revenue was down due to increased competition within its reporting business as well as the exchange rate. North American Information Services had operating income of $71.7 million, increasing 5.3 percent versus second quarter 1998. This group’s operating income growth was in the low double digits, excluding our investments for the future with Knowledge Engineering and Equifax Secure, the business that enhances the security and privacy of Internet transactions.

Revenue in Equifax Latin America (which does not include the Company’s Payment Services operation in Brazil) was $32.5 million for the second quarter, with the recent acquisition of SCI in Brazil contributing revenue of $16 million. Operating income of $5.0 million in the second quarter of 1999 increased 16.1% versus second quarter 1998. The overall performance of the information business in Brazil exceeded expectations in local currency as Equifax is successfully integrating and managing the operations of this 1998 acquisition. Operating income in Chile and Argentina declined versus 1998 results due to the exchange rate in Chile and lower revenue.

Equifax Europe revenue was $47.2 million versus $46.5 million in the second quarter 1998. This group’s reported loss of $1.3 million for the quarter, although impacted by severance costs, continues the improvement from fourth quarter 1998 and first quarter 1999. Equifax is making progress in lowering the expense base in the U.K. and expects continued improvement throughout 1999 with a return to profitability in the third quarter.

In addition, the sale of its minority interest in the Brazilian company Proceda, the sale of three small, non-strategic risk management offices in the United States, and interest income from dollar denominated deposits in Latin America resulted in a gain recorded as “Other Income” during the quarter which was partially offset by a higher effective tax rate associated with the sale of Proceda.

Equifax ([][1]), a worldwide leader in shaping global commerce, brings buyers and sellers together through its information management, transaction processing and knowledge-based businesses. Atlanta-based Equifax serves the financial services, retail, credit card, telecommunications/utilities, transportation, information technology and healthcare industries and government. Equifax adds knowledge, expertise, convenience and security to provide value-added solutions and processes for its customers wherever they do business, including the Internet and other networks. Entering its second century in business, Equifax employs about 13,000 associates in 18 countries with sales in almost 50 and has more than $1.7 billion in revenue.

For complete 2Q/99 financials for Equifax please visit CardData ([][2])



People’s 2Q/99

People’s Bank reported Friday that results for the second quarter showed a $1.2 billion or 11% increase in average managed assets, led by growth of $733 million or 9% percent in average managed loans. The loan growth was led by an increase of $527 million or 16% in average managed credit card receivables, including strong contributions from the U.K.. Average UK credit card balances increased $82 million, or 45%, to $267 million. CT-based People’s managed card loans stood at $3,933,000,000 at the end of 2Q/99. Credit card net charge-offs (as a percentage of average managed receivables) equaled 4.00%, representing a decrease of 11 basis points compared to the second quarter of 1998 and an increase of three basis points compared to the first quarter of 1999. Delinquencies as a percentage of quarter-end managed receivables declined 61 basis points to 2.58% from 3.19% at June 30, 1998 and decreased eight basis points from 2.66% at March 31. For complete 2Q/99 financials on People’s Bank visit CardData ([][1]).