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April 12, 2013

JP Morgan Chase - Card Services 1Q2013 Financial Results

Chase_logo-140px.jpgJP Morgan Chase has reported financial results for the first quarter 2013. For its card services business, Chase reported:

  • Credit card average loans were $123.6 billion, down 3% from prior year and 1% from the prior quarter.
  • Credit card sales volume was $94.7 billion, up 9% from the prior year and down 7% from the prior quarter; Card Services general purpose credit card sales volume growth has outperformed the industry since the first quarter of 2008.
  • Card Services net revenue as a percentage of average loans was 12.83%, compared with 12.22% in the prior year and 12.82% in the prior quarter.
  • Merchant processing volume was $175.8 billion, up 15% from the prior year and down 2% from the prior quarter; total transactions processed were 8.3 billion, up 22% from the prior year and 1% from the prior quarter.

Chase also noted that it is the "#1 credit card issuer in the U.S. based on outstandings" and the "#1 Global Visa issuer based on consumer and business credit card sales volume."

Chase Chairman and CEO Jamie Dimon commented: "We also saw strong performance in our credit card portfolio, with net charge-offs remaining near historic lows, another sign that consumers are healthier and more confident. As a result, we reduced the allowance for loan losses in Consumer & Community Banking in the first quarter by a total of $1.2 billion and are likely to see further releases."

Headline News - April 12, 2013

On the web:

On the wires:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.

April 11, 2013

GAO Studies ATM Fees in the US

The US Government Accountability Office has released a new report on ATM fees in the US titled "Some Consumer Fees Have Increased."

GAO estimates that the prevalence and amount of ATM surcharge fees charged by financial institutions have increased since 2007, and that the estimated average surcharge fee for financial institutions that charged a fee increased from $1.75 in 2007 to $2.10 in 2012, in 2012 dollars.

Headline News - April 11, 2013

On the web:

On the wires:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.

April 10, 2013

Glenbrook's Innovation in Payments Workshop - May 9, Palo Alto, CA

GP Logo Horizontal 140pxTwo of the hottest topics in global payments today - "big data" and "faster money" - are the focus of Glenbrook's upcoming May 9th workshop on Innovation in Payments. The full agenda for this day focused on innovation has just been published.

This workshop will be taught by Glenbrook's Russ Jones and Carol Coye Benson and will be held on May 9th, 2013 in Palo Alto, California. Registration is now open.

Note: This workshop is not for beginners! Attendance is restricted to alumni of Glenbrook’s Payments Boot Camps and Private Workshops, or to those who feel they have enough industry experience to be qualified!

NACHA Announces 2012 ACH Annual Volume Statistics

NACHA logo 140pxNACHA — The Electronic Payments Association has published its annual summary of the largest originators and receivers of ACH payments in 2012. Wells Fargo was the #1 originator in 2012 while Bank of America was the #1 receiver.

Total ACH payment volume grew to over 21 billion transactions in 2012, up 4.19 percent over 2011 representing a total of $36.9 trillion, an increase of 8.76 percent. That rate equates to over 660 ACH transactions per second over the full year with an average ACH ticket size of about $1760 per transaction.

Native electronic payments — those payments which start as an electronic payment (i.e., non-check conversion applications) — increased 6.38 percent over 2011. These payments now make up 85 percent of total ACH Network volume. Conversely, check initiated transactions decreased by 6.75 percent.

“This data clearly shows that consumers and businesses choose electronic payment options over paper checks,” said Janet O. Estep, president and CEO of NACHA. “Direct Deposits and Direct Payments via ACH provide the convenience, control, and flexibility that end users want. As end user needs evolve, the ACH Network will continue to enable the innovation necessary to meet the changing needs of ACH Network participants.”

April 09, 2013

MasterCard Faces EU Antitrust Probe Into Payment-Card Fees

MasterCard logo 140pxMedia outlets are reporting that MasterCard is the focus of a European Commission antitrust probe into how the company sets cross-border interchange on foreign purchases in the European Economic Area. For more information, see related stories from The Wall Street Journal, Bloomberg, and The New York Times.

Glenbrook Survey on Immediate Funds Transfer

GP Logo Horizontal 140pxImmediacy is the new mantra for payments. Everyone’s talking about the best way to move payments faster. We’d like to know what you really mean when you say faster payments – or – immediate funds transfer. The focus here is on retail payments that today tend to settle on a differed basis.

We’ll share the survey results at the “Faster Payments: Models & Retail Payments Innovation” panel at the upcoming NACHA Payments Conference and, of course, here on PaymentsNews. The survey should only take five minutes. If you haven't already done so, click here to take the survey. Thanks!

First Data Releases March 2013 SpendTrend

First data logo 140x60px First Data has released its First Data SpendTrend analysis for the full month of March 2013 compared to March 2012.
Year-over-year dollar volume growth increased 6.0% in March, up from February’s 4.6% growth, as the earlier Easter holiday and lower gas prices provided an extra boost to spending during the month. In addition, tax refunds that were delayed earlier in the year have caught up and may have spurred consumer spending in March. March 2013 performance is particularly robust given a tough comparable to March 2012, when dollar volume growth rose 8.7% due to abnormally mild weather last year.

SpendTrend tracks same-store consumer spending by credit, signature debit, PIN debit, EBT, closed-loop prepaid cards and checks at U.S. merchant locations.

April 08, 2013

Payments Views - Don't Trash-Talk Cash

GP Logo Horizontal 140pxGlenbrook's Carol Coye Benson has a post on Payments Views about the ongoing importance of cash and cash-like payments systems. Carol argues in "Don't Trash-Talk Cash" that it is important to distinguish between the cash payment instrument, coins and bills, and the cash payment system.

Unlimited Family Banking: Multiple Prepaid Cards, One Flat Fee

FamZoo logo 140pxTransCard and FamZoo have announced a partnership to help parents teach their kids about smart personal finance habits.
With 'Unlimited Family Banking', the family pays one predictable flat monthly fee for multiple prepaid cards used collaboratively by individual family members to share funds and develop financial responsibility. The cards are linked together and accessed online through FamZoo’s award-winning family finance software designed specifically to help parents teach kids good money habits.

Federal Reserve Reports Consumer Credit for February 2013

FedThe US Federal Reserve has reported its latest G.19 Consumer Credit statistics - finding that "consumer credit increased at a seasonally adjusted annual rate of 7.75%. Revolving credit increased at an annual rate of 0.75%, while nonrevolving credit increased at an annual rate of 11.0%."

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