77% of Merchants Expect 2011 eCommerce Revenue to Climb

UK merchants predict positive eCommerce growth in 2011 with only 2% expecting a decline. On average, 1.9% of 2010 orders accepted later resulted in fraud (compared to 1.6% in 2009), although this figure does vary by market sector. Furthermore, 59% of respondents expect fraud management budgets to remain stagnant in 2011, with 10% expecting to have less available. Meanwhile, merchants continue to expand with nearly 60% of UK merchants now accepting online orders from abroad. This, according to the seventh annual “UK Online Fraud Report” survey by Visa’s “CyberSource,” also indicates 59% of merchants say a delivery address is a good indicator of suspicion while 58% are more concerned about the IP address.

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MoneyGram Shows Americans Outpouring in Recession

Nearly half of U.S. residents said they donated cash to international disaster relief efforts over the past two years, with 43% having donated cash to fund international disaster relief efforts. Of these, 87% gave to relief efforts related to the earthquake in Haiti while 22% donated to the Chilean earthquake/tsunami that struck in February 2010. This, according to a national poll commissioned by MoneyGram International, also shows 72% will donate about the same or more to international relief efforts in 2011; 48% referenced for donating to international disaster relief efforts was “impact on children”; 27% of men and women between 18 to 34 indicated they will give more to international relief efforts in 2011, which is 10% higher than any other age group. Haiti was the leading relief effort for respondents ages 18 to 34 at 95%, and ages 45 and older at 80%.

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eLayaway Adds New CIO

Larry Witherspoon has been named Chief Information Officer with eLayaway payment processor. Responsible for helping establish the Company’s payment system as a widely recognized brand name in alternative payments for consumers and merchants, Witherspoon most recently acted as an advisor to the Company. In this role he assisted existing management solidify an operational foundation that is scalable. Before this, Witherspoon was CEO of Tickets.com where he was responsible for the company’s overall direction and strategic plan.

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FinArch Planning Tool Awarded by Chartis

FinArch international software provider of truly integrated reporting, finance and risk has been selected as winner of ‘Risk and Finance Integration’ by Chartis Research in their “RiskTech100 2010” report. The accumulation of changes to capital and liquidity, increased compliance requirements around reporting, monitoring, documenting, data capture and modeling is already creating significant new pressures for banks. Chartis, therefore, highlights credit risk management, operational risk & GRC, Liquidity Risk & ALM, market risk and real-time intelligence as some of the key drivers for risk technology expenditure in the following years. With this, the FinArch “Finance Resource Planning” (FRP) concept provides integrated solutions for IAS/IFRS, General Ledger, Sub-ledger, Trading Ledger, Liquidity Risk, ALM, Basel II Basel III, E-Cap, regulatory reporting as either discreet components or as a totally integrated solution.

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Worldwide Interactive Delivers Item Capture

VSoft global information and technology provider of process improvement solutions for financial institutions has partnered with Worldwide Interactive Services to offer its Teller and Home/Office Item Capture services to its “CUtopia” core credit union customers. CUtopia’s e-Suite banking core software solution was developed to provide credit unions with a highly functional, reliable and fully compliant in-house system with VSoft’s proven RDC solutions. These let credit unions reduce operational costs and effectively compete with larger institutions. VSoft’s teller capture solution allows credit unions to capture deposits at the teller window, or behind the teller line in the branch back office, depending on strategy, branch footprint and deposit mix. Its Home/Office Item Capture solution enables credit unions to further extend their services by providing added convenience for personal of small business accounts.

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Main Street Softworks Adds Card Data Reporting

Main Street Softworks secure payment processing for retail POS, e-commerce, and embedded applications has added Enhanced Data (“Level III”) Reporting features to its “Monetra” PA-DSS validated payment transaction processing software. Enhanced Data reporting enables merchants to submit detailed, receipt-level information when processing transactions with Visa or MasterCard, whom generally qualify for significantly reduced credit card transaction fees. Other Main Street offerings include the “CardShield” suite of data protection tools providing “tokenization” and P2P encryption features for high security and rapid PCI compliance.

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Chase Card Division Generates Over $1B 4Q/10 Income

JPMorgan Chase reported fourth-quarter 2010 net income of $4.8 billion, an increase of 47% compared with $3.3 billion for the fourth quarter of 2009 while full-year 2010 net income was $17.4 billion, an increase of 48% compared with $11.7 billion for the prior year. For the Card Services division, net income was $1.3 billion, compared with a net loss of $306 million in the prior year, and total merchant processing volume was $127.2 billion on 5.6 billion total transactions processed. Meanwhile, end-of-period loans were $137.7 billion, a decrease of $25.7 billion, or 16%, from the prior year and an increase of $1.2 billion, or 1%, from the prior quarter. Average loans were $135.6 billion, a decrease by 17% of $27.6 billion from the prior year and $4.5 billion from the prior quarter. With this, net revenue was $4.2 billion, a decrease of $902 million, or 18%, from the prior year. The provision for credit losses was $671 million, compared with $4.2 billion in the prior year and $1.6 billion in the prior quarter, thanks to lower net charge-offs and a reduction of $2.0 billion to the allowance for loan losses due to lower estimated losses.

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Global Axcess Completes ATM and DVD Acquisitions

Global Axcess independent provider of self-service kiosk solutions has purchased the assets of a portfolio of 140 ATMs from a privately held nationwide network of automated financial service terminals, effective December 1, 2010 to expand its ATM and DVD kiosk businesses. It also completed the acquisition of Tejas Video Partners (“Tejas”) unattended DVD rental kiosk business and its 260 DVD rental kiosks to now control about 600 units, primarily at U.S. military facilities. The Company’s total DVD kiosk portfolio will be located at a combination of highly attractive grocery store chains and highly sought after locations on U.S. military bases. Global Axcess Corp was founded in 2001 to emerge as the leading independent provider of self-service kiosk services in the United States and now manages or operates approximately 5,300 ATMs and other self-service kiosks in its national network spanning 43 states. Back in August, the Company reported a 2Q/10 revenue of $5.5 million, a 3% increase year over year. The Company’s core revenue from ATMs was $5.4 million while DVD rental revenue was $60,000. ATM and DVD kiosk operation generated income of $625,000 and a loss of $293,000, respectively (CardFlash Library, 8/22/10).

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PayFair Appoints New CEO to Oversee Payment Scheme

Electronic payment expert Stephan Becker has been appointed CEO with PayFair European next generation electronic payments. Bringing with him over 20 years’ experience, his initial focus will be to increase PayFair’s uptake by banks within the SEPA world and continuing the expansion throughout Europe and globally. Prior to joining PayFair, he worked Pluscard, First Data and MasterCard Payment Industry firms. He also acts as an independent consultant to a number of payment service providers advising on strategic management and product development. PayFair is the new SEPA compliant payment scheme offering a European alternative to other schemes such as MasterCard and Visa that are well established in the payments arena. PayFair’s business model is organised around a SEPA and PSD-compliant system that allows it to make payments simpler, faster and safer.

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Braintree Launches Card-Not-Present Encryption

Braintree launched its end-to-end encryption solution for merchants accepting credit card payments online (aka card-not-present or CNP). The Braintree CNP End-to-End Encryption eliminates the transmission and storage of credit card data from the merchant environment. Thi reduces the scope of PCI compliance, often allowing merchants to achieve compliance by completing the quickest and least intrusive of the Self Assessment Questionnaires, SAQ A. It also lets merchants encrypt credit card data at the moment the customer enters it, without requiring immediate transmission of the data to the payment gateway. This gives merchants the option to process payments asynchronously, avoiding many of the limitations inherent in working with an external service.

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Monitise Europe Gets Even Break

Monitise m-Money solutions provider announce its 2H/10 fiscal period reached month-on-month cash break-even, in line with guidance given at time of the full-year results for the year to end-June 2010. Throughout the period, the Company broke over 3 million registered customers; customer adoption of its smartphone apps continues to be strong and to have a positive effect on usage; and its Globe Platform continues to grow strongly and in December processed more than 13 million transactions.

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Fed to Kick Paper Checks to Curb in 2011

Saving Social Security $1 billion over the next decade, the U.S. Department of Treasury will now provide all federal benefits through direct deposit or prepaid MasterCard, including payments to more than 8 million workers receiving Social Security Disability Insurance (SSDI) benefits. Paper checks no longer will be issued to individuals applying for benefits and must choose either direct deposit into a bank or credit union account or deposit onto a “Direct Express” Debit MasterCard. Those already receiving paper checks will need to switch to one of these options by March 1, 2013. Those who do not choose will automatically be switched to the debit card payment method. Making certain recipients understand the costs and benefits of their choices is essential for a smooth transition, according to Allsup SSDI representation.

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