ATM Tix

Transaction Systems Architects confirmed Thursday it has acquired a minority interest in ATM Tix, Inc., a privately held company based in Foster City, CA, providing the delivery of entertainment and event tickets through bank ATM networks. Applied Communications, a subsidiary of Transaction Systems Architects, will provide its ‘BASE24’ software to facilitate ATM Tix systems connecting ticket providers to existing bank ATM networks.

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Cap One Sub Prime

Capital One is expanding its subprime mining following an agreement this week to acquire Summit Acceptance Corporation, a Dallas-based subprime auto lender. Cap One is shelling out $55 million for the acquistion which should be completed by the end of the third quarter. Cap One also reported Thursday earnings of $66.9 million for the second quarter as total managed consumer loans hit $15.0 billion and accounts hit 13.6 million for the second quarter. The managed net interest margin was declined to 9.84% for the second quarter from 10.40% for the first quarter due to decreases in late fee revenue as the Cap One’s delinquency levels declined. The managed delinquency rate (30+ days) decreased to 5.14% as of June 30 compared with 5.75% as of March 31, exceeding typical seasonal patterns. The managed net charge-off rate decreased to 5.91% for the second quarter of 1998 compared with 6.04% in the first quarter of 1998.

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People’s 2Q

Delinquency declined from 3.35% to 3.19% but chargeoffs jumped from 3.85% to 4.11% during the second quarter according to People’s Bank 2Q earnings report released yesterday. People’s card receivables are growing 13% annually if you discount the sale of $107 million of affinity card loans completed during the second quarter. People’s realized a $5.3 million pre-tax gain on the sale. Meanwhile, People’s U.K. card portfolio hit $196 million for 2Q/98, an 11% increase over the first quarter and a whopping 83% increase since last summer.

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VISA Cash Tokyo

VISA International and the Shibuya Smart Card Society launched a large-scale smart card program in Shibuya, a major shopping and entertainment district in Tokyo, yesterday.  A total of 100,000 ‘VISA Cash’ and multifunction cards expected to be issued over an 18-month period. With the ‘VISA Cash’ smart cards, cardholders will be able to make low-value purchases at over 2,000 locations in the Shibuya district. In the initial stage of the program, cardholders can use three types of VISA smart cards — disposable ‘VISA Cash’ cards, reloadable ‘VISA Cash’ cards, and multifunction cards combining a reloadable ‘VISA Cash’ function and a ‘VISA Smart Credit’ application. Starting this September, a card combining ‘VISA Cash’ on a mag stripe ATM card will also be issued. Joining VISA International in the program are the members of the Shibuya Smart Card Society, including 10 VISA member credit card companies, 10 Japanese banks and 25 technology suppliers.

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NDC Up 40%

National Data Corporation today announced its fourth quarter and fiscal year end results for the period ending May 31 – continuing a five year trend of significant growth. For the quarter, the company posted a 39% growth in operating income, 40% increase in net income and 31% increase in earnings per share. This is the fourteenth straight quarter in which operating income growth exceeded 30%. Revenue growth was 28%, with faster operating income growth reflecting productivity improvements. Net income results include a higher tax rate than last year. Revenue in the period grew from $144.9 million to $185.3 million, a $.750 billion annualized rate; operating income increased from $21.4 million to $29.7 million; net income went from $11.6 to $16.2 million, producing an earnings per share growth from $.36 to $.47.

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CyberCash Raises $15 Million

CyberCash, Inc., announced today that it has raised an additional $15 million in equity capital through the second tranche of a private placement of convertible preferred stock and options to two private equity funds. The Company raised $15 million from the same private equity funds, in February 1998 through the first tranche of this private placement, as well as $15 million in a private placement in August 1997.

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HH Adds New FI Tools

Household will install an additional site of  Fair, Isaac’s ‘TRIAD’ adaptive control software, ‘SEARCH’ software, and ‘StrategyWare’ decision support system for account origination to gain greater control and flexibility in designing and managing complex strategies for its various business units. Yesterday’s sale involves an enterprise-wide agreement for various Household International units, including Household Retail Services, Household Finance Corp., and Household Credit Services. Fair, Isaac’s ‘StrategyWare’ gives credit analysts powerful adaptive control capabilities to design, test and execute complex decision strategies without relying on programming support. With a user-friendly PC interface, users can set up multi-layered decision scenarios and use controlled testing to evaluate their performance. ‘SEARCH’ software improves origination decision-making by automatically obtaining credit bureau reports and scores from the major North American consumer credit bureaus, while also providing comprehensive and sophisticated analysis.

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Online Retail Study

Leading strategy consulting firm, The Boston Consulting Group (BCG) and shop.org, the association for leading online retailers, announced today that they will partner to perform a comprehensive survey of the online retail industry in North America. The survey results, which will be released at eRetailing ’98 in October, will provide a detailed assessment of the size and growth of the online retail channel and an analysis of the industry’s key financial and operational performance metrics.

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2nd Quarter Early Highlights

MBNA’s credit card receivables grew slightly more than 4% since the close of the first quarter, while NationsBank’s receivables inched up slightly more than 1%. First National of Nebraska’s card loans grew by more than $200 million in the second quarter due to its acquisition of card receivables from Union Bank of California and Sovereign Bank.  The Navy and Pentagon Federal Credit Unions realized a small increase in their card base during the past three months while Mercantile’s card base dropped by more than 140,000 accounts. Sub-prime issuer First Consumers National Bank reported an outstanding second quarter with a 10% surge in receivables and a 6% growth spurt in its account base. The figures are based on data gathered by CardWeb and available via its new ‘[CardData][1]’ online service.

2Q/98  CARD  PORTFOLIO  UPDATE
ISSUER RECV QVOL ACCTS
MBNA $46,957,591,000     $19,069,766,000         N/A
NationsBank $ 9,847,616,392     $ 6,740,410,000     8,766,941
Frst Natl NE $ 3,412,482,000     $ 1,047,550,000     3,814,581
Navy FCU $   845,690,133     $   461,527,294     544,182
Mercantile $   636,592,270     $   196,629,418     518,727
Pentagon FCU $   355,394,393     $   128,092,550     198,768
Frst Consumers $   330,716,923     $   159,182,653     625,368
Compass Bank $   253,681,570     $    91,167,813     163,772
Beneficial NB $   165,000,000     $   102,000,000     292,000
Simmons NB $   162,156,034     $    78,172,705     224,750
Source: CardData; www.carddata.com

[1]: /carddata/home.html

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