Credit card firms to extend customer data sharing

Five UK credit card issuers - Barclaycard, Capital One, GE Money, HBoS and MBNA - will begin sharing 'behavioural data' on their customers' accounts from December.

Currently, shared credit card details include the customer's balance, credit limit and whether payments are up to date.

The new data will include the amount of their last payment checked against minimum payment amounts, as well as changes to credit limits and withdrawal limits, and whether the customer is signed up to any promotional deals.

The move is intended to identify and assist people who may be slipping into financial trouble, according to UK payments association Apacs.

But the information, which will be shared via credit reference agencies such as Experian, is also expected to offer firms more visibility into how customers use their credit cards, so that they can lend accordingly.

Credit card fraud gangs going global

These professional, well-trained gangs have a network of secret contacts around the globe and use sophisticated technology and methods to escape detection by authorities, according to the Department of Special Investigation (DSI).

Police admit it is very difficult to track down these criminals, who have had training in how to avoid detection. It usually takes police a very long time to catch them, said DSI officer Kemachart Prakaihongmani, a member of the team which arrested five members of a gang last week.

The gang members, three Thais and two Romanians, are Pol Snr Sgt-Maj Pramote Piathong, 41, Jirayos Siribawornkiat, 43, Pontagorn Deeprasert, 31, Ionut Buliarca, 28, and Robert Rotru, 29. They all had warrants issued for their arrest by the Min Buri court.

"The arrests show we're dealing with a global network which has connections in many countries. It is a cross-regional network," said Pol Col Songsak Raksaksakul, chief of the DSI's Foreign Affairs and Transnational Crime Bureau.

It took the police team one year to trace all members of this gang after receiving complaints from commercial banks in Thailand. The team started its search by checking whether the suspects had criminal records.

Investigators apparent the acclaim agenda artifice assemblage had contacts in Asia and Europe. Stolen acclaim agenda abstracts in Thailand was awash via the internet or through adaptable buzz argument letters to Europe, while the abstracts in Europe was beatific to Thailand the aforementioned way. This cross-continental barter fabricated it difficult for bounded authorities to yield acknowledged activity adjoin them because the case could not be prosecuted in Thailand, Pol Capt Kemachart said.

To get information on credit cards, the gang removed the card readers from ATMs and replaced them with similar ones called skimmers, which read the magnetic strips on the cards. Tiny cameras were also installed at the top of the ATMs to record passwords.

"Even the color of the card readers is similar to the real ones and the camera is very small and thin," Pol Capt Kemachart said.

The gang usually installed these devices at ATMs in crowded tourist spots in the Sukhumvit and Nana areas in Bangkok, as well as in Chiang Mai and Phuket provinces, he said.

Apart from the DSI, the Economic and Cyber Crime Division is also tracking down gangs involved in credit card fraud.

On Nov. 5, the agency arrested three people--Tibadi Tiraudomkul, 55, Somchai Jirapitayanon, 42, and Tawi Kongsri, 58--who made counterfeit credit cards. Among the items seized were 25 fake credit cards, mobile phones containing credit card data and a card typing device.

The arrest followed a complaint by the New Zealand embassy on July 22. It petitioned police after its ambassador became a victim of the gang, which faked his credit cards and used them in Thailand. A gang member bought the credit card data from a Malaysian for between 8,000 baht (US$240) and 10,000 baht (US$280).

On Aug. 19, the agency also arrested Taiwanese Liang Che Chih, 33, who had 62 fake credit cards and two skimmers.

He had lived in Thailand for three years, buying credit card data from the United States and selling it in Thailand. His gang caused damage worth 100 million baht (US$2.8 million) to more than 60 banks and financial institutions.

Fraud seen in in-flight credit card sales

Several Asian airlines including Japanese are seeing growing credit card fraud in the purchase of duty-free items on international flights, Japanese police say.

Such usage has resulted in losses running into millions of dollars for credit card companies, reported Kyodo news service which investigated the problem. The fraud goes on because the in-flight staff is unable to perform online authorization of credit card use, police said.

Police in Chiba prefecture, which has jurisdiction over Narita International Airport, Japan's largest international gateway, has opened an investigation into the fraud, saying they suspect several cross-border rings are involved.

Chiba police say they have identified one such ring, made up of a dozen members including Thai and Filipino nationals. Authorities are considering involving the Interpol in the investigation.

Credit card fraud, check forgery increasing

As the strength of the nation's economy remains in question, one expert said she believes an increase in credit card fraud and check forgery will continue through rough economic times.

Ellen Hein, manager and CEO of the Texas Tech Federal Credit Union, said she has seen an increase in the unauthorized use of credit cards and an increase in counterfeit checks that look like cashier's checks.

Hein said two cases of counterfeit checks were discovered in Lubbock during the last three weeks. Normally, it is common to see about one to two cases per year.

One of the most commonly seen scams, she said, is an e-mail stating the recipient was the winner of a lottery or similar contest.

Given the weakened economy, she said, she believes such cases will continue to increase.

Chief Ron Seacrist of the Tech Police Department said he also has noticed an increase in the number of reports of credit card abuse.

When a credit card is stolen and used, he said, the person normally will use the card within 24 hours, because after that time they may be unable to use the card.

Because of this, the department advises students to cancel as soon as possible, Seacrist said, and if the person uses the card before it is canceled, the department can use that location as a lead to find the person.

Disney-JCB Card, Japan's First Disney-branded Credit Card

The Walt Disney Company (Japan) Ltd. a global leader in the entertainment business, and JCB Co., Ltd. (JCB), a pioneer of Japan's credit card business and brand holder of Japan's only international credit card brand, have teamed up to develop and issue Japan's first Disney-branded credit card, the Disney-JCB Card.

The Disney-JCB Card offers a generous package of attractive, exclusive cardmember benefits to help make cardmembers dreams come true through membership in the Disney Card Club. Membership entitles cardmembers to a number of special offers at Tokyo Disney Resort(R) courtesy of Urayasu, Chiba-based Oriental Land Co., Ltd.

Disney fans and many other customers are sure to love the Disney-JCB Card for the great services and special offers it provides. These include six card designs and Disney Points for the whole family redeemable for Disney merchandise and One Day Passports at Tokyo Disneyland(R) and Tokyo DisneySea(R).

Cardmembers will also be able to share their points with the whole family, including their children through the Disney Kids Point Card. As a special benefit, cardmembers will have the chance to attend a private character experience at Tokyo Disney Resort. Disney Points is the first-ever loyalty-point program available for use at Tokyo Disney Resort.

The Disney-JCB Card helps make cardmember dreams come true. The Walt Disney Japan and JCB will continue to work together to increase customer satisfaction by developing new services and benefits that attract many more customers.

Target's credit-card profit drop raises questions

Target Corporation's big drop in credit-card profit in the third quarter has raised questions about whether the retailer may ultimately turn certain parts of the operation over to partner J.P. Morgan Chase & Co.

Target in May sold 47 percent of its stake in the card unit to J.P. Morgan Chase for $3.5 billion and, under terms of the sale, the portfolio's performance must remain "sufficiently strong."

If "substantial unanticipated portfolio deterioration" occurs, J.P. Morgan Chase would gain the right to direct Target's credit-card team to put in place alternative underwriting and risk-management practices until sufficient improvement is seen.

While it isn't clear whether J.P. Morgan will eventually take over management of certain parts of Target's credit-card portfolio, the portfolio's deteriorating performance since May shows how quickly the economy's woes have rattled even recent financial plans.

Target on Monday posted a 24 percent drop in net income on reduced profit from the credit-card division. Bad-debt expense more than doubled to $314 million from a year earlier as more customers defaulted on card bills. The deteriorating economy hurt the card division's performance.

Some stores hit with more credit card delinquencies

Many retailers have a store-branded credit card, a strategy to encourage shoppers to spend more in their stores. The majority, though, have unloaded their credit card portfolios to banks in recent years, meaning that much of the profits and the risk on the store-branded card belong to the partner bank.

Yet, Target and Nordstrom, a part of a scattering of added retailers, defied this trend, which looked like a acute move if times were good. Retail acclaim cards about allegation absorption ante of 20% of more, abundant college than added acclaim cards, says Curtis Arnold, architect of CardRatings.com, a website that ante acclaim cards. The college ante accommodate a bigger addition to issuers' profits.

But when the economy sours, these rates can make it harder for consumers to pay their bills, pushing charge-offs -- when banks give up on collecting debt -- on retail cards higher and faster than on general purpose cards.

Now, analysts say Target and Nordstrom would be hard pressed to get decent offers on their card portfolios, though Target sold just under half its card business earlier this year.

Melbourne Beach police looking for credit card thieves

Police are looking for two credit card thieves who took them from a vehicle parked at Ocean Park in Melbourne Beach on Thursday afternoon and then used the cards to buy nearly $3,800 worth of goods, police said.
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The men were seen on surveillance cameras in various Melbourne stores, said Cpl. Melanie Griswold of Melbourne Beach police.

While at the store, the duo purchased a 95-gallon fuel tank and a hand pump worth $720.78.

Citigroup raises credit card interest rates

Citigroup Inc. is raising rates for some of its U.S. credit card customers after losses in its global card division skyrocketed.

Earlier, The Wall Street Journal reported that Citigroup is telling some credit card customers that their rates are being raised by an average of three percentage points and that less than 20 percent of the bank's customers could be affected, citing a person familiar with the company's strategy.

The move comes as the financial services giant looks for additional ways to return to profitability, including continuing to cut jobs under a previously announced plan.

The downturn in the economy has led to rising defaults on all types of loans this year, such as credit cards. Credit losses in Citigroup's global card division rose to $1.59 billion in the third quarter from $1.05 billion during the same quarter in 2007, as more customers missed payments. Credit losses include loans written off as not being repaid. Overall, the card division lost $902 million in its card division during the third quarter. It earned $1.44 billion in the unit during the third quarter in 2007.

Customers will be able to opt out of the changes and instead use their cards until they expire. People who opt out can pay down balances under the old terms, the company said.

The company is dealing with broader problems in its operations amid the ongoing credit crisis. It has reported an overall loss each of the last four quarters, including a loss of $2.8 billion during the third quarter.

Regulators nix credit card debt forgiveness plan

Federal bank regulators have rejected a request by banks and consumer advocates for a program to let lenders forgive huge portions of credit card debt.

The Office of the Comptroller of the Currency alone the appeal for a appropriate affairs that would acquiesce as abundant as 40% of acclaim agenda debt to be forgiven for consumers who don't authorize for absolute claim plans.

An unusual alliance of financial industry interests and consumer advocates, represented by the Financial Services Roundtable and the Consumer Federation of America, made the request to the Treasury Department agency on Oct. 29. It demonstrated the urgency of the situation in a deepening economic crisis: consumers — even those with strong credit records — defaulting at high levels on their credit cards, while banks battered by the credit crisis bleed tens of billions from the losses.

An agency said the government objects to allowing banks to defer losses for several years on the forgiven debt, as would occur in accounting by lenders under the special program.

The biggest credit card lenders include Discover Financial Services, Bank of America, Citigroup, JPMorgan Chase, Capital One Financial, American Express and HSBC Holdings.

Credit card charge-off rates, balances written off as unpaid, rose to 6.8% in August, up 48% from a year earlier, according to Moody's Investors Service.

Americans are weighed down by about $900 billion in credit card debt, according to the latest available Federal Reserve figures.

Credit One Bank launches card personalisation service

Credit One Bank has launched Design My Card, a new program that lets customers use personal photos and images to design their own Credit One Bank credit card.

Current and prospective customers can experience the program at CreditOneBank.com.

Credit One Bank is one of the first credit card issuers in the United States to offer this unique design service. Design My Card has a simple, easy-to-use interface that allows visitors to upload and customize their photos on a Credit One Bank credit card. In addition to photos, users can select from an image gallery featuring nature scenes, abstract imagery, patriotic photos, animals, and sports. The intuitive technology helps users to easily resize, rotate, flip and move photos and images to meet their needs.

Credit card firms attacked for hiking rates to 17%

Credit card companies are being told to end sudden rises in charges after Gordon Brown criticised some of them over claims that they were exploiting the vulnerable during the recession.

Mr Brown, who is said to be deeply concerned about the behaviour of some companies, called yesterday for a “new responsible approach” to lending as the companies were summoned to talks with the Government.

Lord Mandelson, the Business Secretary, called on companies last night to pass on rate cuts and treat their customers fairly and sympathetically. He wants the companies to work with the Business Department on how to deal with debt.

A survey of more than 200 cards by Defaqto, a banking research group, found that although the Bank of England reduced its rate to 3 per cent, the cost of borrowing on cards rose to 17.6 per cent and rates on store cards rose to 25 per cent.

Bank of America expands corporate credit-card program

Bank of America Corp. has expanded its credit-card program for corporate clients.

Corporate barter traveling in nine European countries can now use their BofA acclaim cards to achieve accounts in bounded currencies, which BofA says can advice abbreviate foreign-exchange risk.

The affairs is initially accessible in Germany, Ireland, Belgium, Luxemburg, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom.

Credit card firm American Express approved to become bank holding company

The U.S. Federal Reserve has granted the request of credit card giant American Express Co. to become a bank holding company.

The Fed announced late Monday that it had approved the application for American Express and a related company, American Express Travel Related Services Co. Inc., to become bank holding companies.

The surprise announcement would give American Express access to low-cost financing from the U.S. Federal Reserve.

Credit card providers ignore base rate cut

While mortgage borrowers will have to wait and see if they stand to benefit from today's 1.5% cut in interest rates, credit card customers have been told not to expect repayments to fall.

Although the Bank of England has bargain the abject amount to 3%, consumers attending set to abide to pay an boilerplate APR of added than 5 times that figure, according to banking abstracts close Moneyfacts.

It puts the boilerplate APR on a acclaim agenda at just beneath 17% and said it is absurd to change as a aftereffect of the abject amount reduction.

"I agnosticism we will see lenders acid ante on acclaim cards," said backer Michelle Slade. "Usually lenders alone cut ante to allure customers."

The cut will also be passed on to those customers who are still holding the now withdrawn base rate tracker cards which Co-op offered through Northern Rock and Yorkshire building society.

The UK's biggest card provider, Barclaycard, which currently charges a rate of 14.9% on the majority of its product range, said it would not be adjusting rates as a result of today's announcement.

Banking concern now turns to credit card portfolios

As the economy tanks, the quality of credit card portfolios is likely to follow, which might add costly losses to the books of already troubled banks.

But the botheration is absurd to be as astringent as the one getting encountered by the active mortgage bazaar and could ambit broadly depending on the bank. Not every bank, for instance, holds acclaim agenda debt, and for those that do, it can be a baby allocation of all-embracing loans.

“It affects the big banks that have the big market share there quite a bit,” said Chris Bingaman, an equities portfolio manager at Columbus-based investment firm Diamond Hill Capital Management Inc. “Most regional banks have a modest exposure.”

StanChart sees slower credit card growth

MANILA, Philippines - The local unit of United Kingdom-based Standard Chartered Bank said growth of its credit card business would slow this year as it becomes more cautious in choosing new cardholders given the cooling economy.

Simon Yuen, country head for consumer banking of Standard Chartered, said the bank sees its cardholder base growing by 10-15% this year.

While this is in band with the 10-15% boilerplate industry advance for the accomplished few years, this would be lower than the 30% advance the coffer acquaint in 2007.

"If you attending at the complete amount of cards this year and in 2009, [growth] would to be slower," Mr. Yuen told reporters at the sidelines of the barrage of the Nokia Standard Chartered Agenda Tuesday night.

"Every issuer will be added accurate in acceptance the new barter they will be demography in. So inevitably, that would beggarly slower growth."

He said the coffer currently has about 180,000 to 200,000 alive cards in circulation, authoritative it a part of the top 5 players in bounded acclaim cards industry.

Data from the Acclaim Agenda Association of the Philippines showed that there are about 6.5 actor acclaim cards in circulation, which are captivated by about four actor individuals.

Mr. Yuen said banks accept entered a "consolidation phase," not alone because they are now added accurate in allotment barter but aswell because old cardholders would not be absorbed to administer for new cards accustomed the accepted bread-and-butter conditions.

In adjustment to blade the trend, Mr. Yuen said Standard Chartered is targeting a specific articulation of the market, adage that there may be a accepted arrest in bread-and-butter activities but advance charcoal able-bodied in some areas.

"We accept to focus on assertive segments area the advance will continue. It doesn’t beggarly that if there is an bread-and-butter slowdown, aggregate will in fact [weaken]," he said.

"We are actual alert [but] we wish to action acceptable deals to barter who we anticipate are acceptable borrowers," he added.

The bank, for instance, has singled out the adaptable buzz bazaar with the Nokia Standard Chartered Card.

The card, which provides allowances in barter for purchases of adaptable phones and prepaid credits as able-bodied as payments of postpaid accounts, would accord added addition to its projected advance for this year.

Credit card loan portfolios in Canada performing well

The performance of credit cards in Canada softened slightly in the second quarter of 2008, but showed remarkable stability compared to the performance of credit cards in the United Kindom and the United States, says Moody’s Investors Service in a new report.

During the additional quarter, the charge-off amount in Canada rose to 3.07%, up from 2.89% a year ago, a amount that is beneath than bisected the amount in either the U.S. (6.38%) or the UK (6.57%). The charge-off amount in Canada is rising, says Moody's, but the trend is moderate.

Moody's says the charge-off amount could move aloft its 3.32% celebrated high, accomplished in September 2003, if the unemployment amount and claimed defalcation filings in Canada abide to rise.

The additional division 2008 crime rate, which measures the admeasurement of annual balances for which account transaction is added than 30 canicule accomplished due and is generally a augury of movements in the charge-off rate, rose to 2.29%, from 2.13% a year ago, but fell from 2.53% in the aboriginal quarter.

During the second quarter Canadian cardholders paid back, on average, 32.22% of their credit card debts, which is actually about 3.3% higher than last year’s second quarter rate of 31.18%. Second quarter payment rates, as measured by Moody’s U.S. and UK Indices, were 18% in the U.S. and 17.24% in the UK, by comparison.

Canada’s less volatile economic environment and relatively low number of bankruptcy filings may also have contributed to the flatter delinquency and charge-off rates, says Inamdar.

Abbey rolls out new credit card

Abbey, a subsidiary of Banco Santander, has announced the launch of a new credit card, which is reportedly aimed at helping consumers whose finances are being squeezed by the increasing cost of living and the credit crunch.

Abbey said that this latest agenda in its artefact ambit offers 3% cashback on bazaar and petrol purchases for the aboriginal six months, additional 0% on antithesis transfers for nine months and 0% on purchases for three months from annual opening.

Other appearance of the Abbey cashback for essentials agenda include: 18.9% APR on all antithesis transfers and purchases (after the corresponding anterior action periods); 27.9% APR on banknote advances (calculated from the day of withdrawal); and barter with an Abbey Zero agenda can aswell administer for this agenda but will not be acceptable for the 0% antithesis alteration offer, declared Abbey.

Lynchburg Wal-Mart loses thousands in credit card scams

The Lynchburg Police Department is investigating a acclaim agenda artifice that occurred on October 11, 2008 at the Lynchburg Wal-Mart amid at 2210 Wards Rd. At about 9:30 p.m. an alien atramentous macho doubtable entered the abundance and acclimated a baseborn acclaim agenda to acquirement $1263.33 account of cyberbanking merchandise.
Two of the items purchased were collapsed awning televisions. The doubtable is declared as a atramentous macho cutting a gray black hooded sweatshirt and aphotic black jeans.

The Lynchburg Police Department is aswell investigating a abstracted acclaim agenda artifice case that occurred on October 6, 2008 at the Lynchburg Wal-Mart. An alien doubtable acclimated a baseborn coffer agenda to accomplish two transactions, one for an X Box 360 and the added for a paintball gun.
The two affairs totaled $774.12. The doubtable is declared as a white macho with aphotic black hair cutting a gray black t-shirt, amber shorts, and white tennis shoes.

Anyone with any advice on these capacity or advice accompanying to these cases are requested to acquaintance the Lynchburg Police Department at 455-6054 or Crime Stoppers.

Crime Stoppers will pay up to $1,000.00 for advice that leads to the arrest of the individual(s) who committed this offense.

Commercial Bank of Dubai concludes its credit card campaign

During the three month campaign, Commercial Bank of Dubai gave away a total of 90 air tickets and 3 BMW 530i cars to its credit card holders.

Commenting on this campaign, Waleed Bin Suloom, Head of Personal Cyberbanking & Alternate Channels said:

CBD offers a array of transaction solutions which cover World MasterCard, Visa Infinite, Visa Gold and Visa Classic, which accept acquired acceptance a part of its customers.

Established in the UAE in 1969, Bartering Bank of Dubai offers advanced ambit of customer and bartering cyberbanking articles and casework through a arrangement of 28 branches and 140 ATMs in the UAE.