Gilbarco Accepts North American Live EMV Transaction

NC-based Gilbarco kicked off its “FlexPay EMV CRIND” systems, installed at Gilbarco Encore S gas pumps with encrypted the information from each card’s chip as well as the PIN the customer entered on the keypad. More than 16,000 Gilbarco “FlexPay EMV CRIND” terminals are installed worldwide, including sites with leading retailers in Canada and meet EMV 1 & 2, PCI PIN Entry Device (PED) and Interac requirements. They are available factory-installed in new dispensers or as retrofit kits to upgrade existing dispensers with an integrated appearance. A modular design enables service on individual components instead of replacing the entire payment system. Physical security features disable operation in the event of device tampering. Logical security features encrypt data at the point of card and PIN entry and throughout the system. Gilbarco Veeder-Root also developed the first fuel dispenser payment solution that meets the PCI requirement that applies in the United States. Since launching the FlexPay Encrypting PIN Pad (EPP) in 2008, the company has shipped more than 100,000 of the devices.

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Vodafone Launches Remittance Solution in Qatar

Vodafone Qatar has launched its new service Vodafone Money Transfer. This will allow customers in Qatar to instantly make international money remittances directly from their mobile phone. Approved to launch by Qatar Central Bank, this service is a milestone not only in mobile telecommunications, but also in improving accessibility of financial services to low-income groups. Vodafone Money Transfer is a way to send money to family overseas. The service will make it easier to send money overseas for the more than 1 million expatriates living in Qatar who send the bulk of their salary home to their family. The Vodafone Money Transfer users in Qatar will be able to send funds directly from their mobile phones to any GCash enabled mobile in the Philippines, or send money to a bank account or for collection at a GCash Remit outlet. All Vodafone and GCASH transactions are secured with a PIN to ensure security of the fund transfer. In addition, both the sender and recipient are notified of the transaction via SMS.

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Intuit Reaches North of the Border

After have been acquired by Intuit 13 months ago, Mint.com online personal finance service is being introduced to our neighbors to the North. This is part of Intuit’s global strategy to meet the needs of small business and consumer customers in markets around the world with Web and mobile offerings, which currently include ventures in India and Sweden. Since being acquired by Intuit, Mint.com has more than doubled its user base to 4.5 million users, and doubled the number of financial institutions it connects to, now 16,000. This will let Canadians access Mint at mint.com/Canada, offering a secure connection to Canadian banking financial institutions in addition to U.S. banks and credit unions. Mint automatically aggregates users’ accounts and transaction information, categorizes spending, delivers detailed views of their financial life, and saves them money by providing money-saving and money-making suggestions specific to Canada. First to implement the service is RateSupermarket.ca, a website that lets users compare and save money on personal finance products such as credit cards is set to supply bank and credit card recommendation data to Canadian users of Mint.com. RateSupermarket.ca’s rate data and network of financial institutions and brokers lets Mint.com personal finance service from Intuit provide personalized money saving recommendations to its users, as well as easy access to all products (CardFlash International Library, 12/1/2010).

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Small Businesses Indicate Recovery Underway

eBay announced the results of its first “U.S. Online Business Index” (OBI), highlighting small-business owners’ views across a range of business topics, with 60% of its small-business owners optimistic about the future of their online businesses in the shopping season. Meanwhile, 72% expect their total online sales to increase during the holiday months of October through December and 62% top eBay sellers in the United Kingdom expect the holiday months to be their busiest of the year. Also, 80% more of U.S. OBI respondents expect to carry the same or more holiday inventory on eBay in 2010 compared to 2009, 36% of whom plan to increase their inventory through 2011 by up to 15% or more; 53% of the OBI small businesses surveyed plan to raise their sales targets from 2010, of whom 66% are targeting increases of up to 20%; 73% disclosed its important to let shoppers have the ability to browse and buy items on eBay using mobile devices; and 60% are willing to adjust their eBay listings for easier viewing on mobile devices. Also, 88% of respondents saying they would not support an internet sales tax, 74% of whom cite fear in the reduction of online transactions; 69% cite the reduction of online small businesses’ out-of-state sales; 69% cite difficulty in maintaining business profitability; and 68% cite a negative impact to the U.S. economy. However, 81% would support a small-business tax exemption in the event its was put into law. This is in addition to research as reported by Cardweb.com, 71% have disclosed “much better” or “somewhat better than expected” performance when compared to their initial 2010 projections while only 4% of were met with a “worse than expected” 2010 and only 21% had been turned down for a bank loan or credit line in the past year. This is in conjunction with 38% having disclosed credit card companies had “unjustifiably” either lowered their card’s credit limit or closed the account completely. These findings also show 31% are most concerned with “taxes”; 29% are most concerned with “volatile sales”; and 25% worry about their “debt.” The Discover “Small Business Watch” Index is consistent with this, having risen to 87.2 in November, up 3 points from 84.2 in October for a third consecutive monthly gain, up more than 10 points since the year ago period. It also showed 25% of small business owners reported they will increase spending on business development in the next six months, up from 22% in October; 40% will decrease business development spending in the next six months, down from 46% in October; and 28% don’t plan any changes. (CardFlash Library, (2010/11/30).

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FNDS3000 Posts Revenue Up a Staggering 444% Y/Y

FNDS3000 Corp international prepaid processing company posted its performance for the fiscal year ended August 31, 2010, during which revenue skyrocketed 444% from $88,981 to $484,119. Meanwhile, gross profit margin on sales improved from 24% to 39% while net loss totaled $4,527,840 compared to a net loss of $5,677,725 in the year ago period. Moreover, cash and accounts receivable stood at $399,933; total assets were $1,869,089; total current liabilities were $490,058; there was no long-term debt; and stockholders’ equity was $1,379,031. Also, the number of prepaid cards issued and activated increased from 2,200 Market Test cards as of the end August 2009 to approximately 23,700; the number of Board members has been reduced from nine to five; and the Company freed up of approximately $1 million in cash and working capital through corporate staff reductions and related corporate cost-cutting programs.

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Black Friday Sales up, Credit Card Usage Down 1%

Approximately 40% of “Main Street” merchants saw an overall increase in sales on the past Black Friday while only 24% of the survey respondents reported declining overall sales volumes. Meanwhile, same store card sales fell 1% from the same period a year ago, demonstrating consumers were using credit cards and signature based debit cards at lower rates than last year. This, according to Capital Access Network, also shows same store card sales of Merchandise Retailers declined more than the total group of Main Street businesses with a 2% dip in 2010 since last year; restaurants as a group gained 1% during the 2010 Black Friday period since the year ago period; and restaurants with an average ticket size of $25 or less saw same store card sales increase by 4% and restaurants with an average ticket size greater than $25 experienced an almost 1% increase in card sales; while 36% posted flat sales on a year-over-year basis. Cardweb.com reported yesterday a 37% increase in transactions and a 30% increase in sales since the year ago period, with consumers now allowed to conduct 24/7 online commerce. Overall, transactions are up 35% and sales are up 23% while the average ticket value is down 8.6% thanks to increasing sales of digital goods and of discounting early in the season and sales and transactions for 50 top e-retailers on the Tuesday immediately following Cyber-Monday set a single-day record for both transactions and settled sales, with Black Friday having represented 5-6% of total retail sales for the month of November(CardFlash Library, 12/2/2010).

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FireHost Joins PCI Security Standards Council

FireHost secure Web hosting company has joined the PCI Security Standards Council as the latest Participating Organization. With this, FireHost will work with the Council to evolve and adopt the PCI DSS and other payment card data protection standards. FireHost will also continue the pursuit of providing affordable, compliance ready Web hosting solutions to companies who may not otherwise achieve the PCI DSS requirements and will have access to the latest payment card security standards from the Council, be able to provide feedback on the standards, and become part of a growing community that now includes more than 500 organizations. FireHost is also adding its voice and significant real-world expertise to the process.

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VeriFone Posts 3Q/10 Revenues Up 27% Y/Y

VeriFone Systems announced its three months and fiscal year ended
October 31, 2010 with net revenues of $276 million, compared to $261
million in the previous quarter and up 27% since the year ago figure of
$218 million. Meanwhile, non-GAAP gross margins were 40% for the
quarter, compared to 39% in the prior quarter and 38% for the comparable
period of 2009. GAAP gross margins for the three months ended October
31, 2010, were 38% compared to 37% in the prior quarter and 35% for the
three months ended October 31, 2009; non-GAAP net income per diluted
share was $0.40, compared to $0.36 in the prior quarter and $0.26 for
the comparable period of fiscal 2009, a 54% year-over-year increase; and
GAAP net income per diluted share was $0.55, compared to $0.21 in the
prior quarter and a loss of $0.03 for the comparable period of fiscal
2009. For the full year ended October 31, 2010, net revenues were $1,002
million; non-GAAP gross margins were 36%; and GAAP gross margins were
37% and 33% for the full year ended October 31, 2009. This performance
was due in part to VeriFone having inked a definitive purchase agreement
to acquire Hypercom Corporation to accelerate global expansion in key
international markets. After weeks of back-and-forth, with its first bid
having been rejected September 27, VeriFone and Hypercom inked definitive
agreements in an all-stock transaction valued at approximately $485
million on November 17th. Performance was also impacted through the
Company having entered a strategic partnership with Gemalto to jointly
explore opportunities to accelerate EMV payment adoption and partnering
with First Data to offer a VeriFone edition of the First Data “TransArmor”
security solution to U.S. multi-lane and petroleum merchants(Cardflash
Library, 2010/11/17).

REVENUE HISTORICAL
4Q/06: $216.6 million
1Q/07: $217.2 million
2Q/07: $231.7 million
3Q/07: $237.9 million
4Q/07: $185.5 million
1Q/08: $233.0 million
2Q/08: $258.7 million
3Q/08: $244.7 million
4Q/08: $214.0 million
1Q/09: $201.6 million
2Q/09: $211.2 million
3Q/09: $217.8 million
4Q/09: $223.4 million
1Q/10: $241.0 million
2Q/10: $261.0 million
3Q/10: $276.0 million
Source: CardData (www.carddata.com)

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Heartland Partners With CITGO to Streamline POS

Heartland Payment Systems’ has partnered with CITGO Petroleum to provide its “SmartLink” network services at the nearly 6,500 CITGO-branded gas stations in the United States. Offering a secure, managed network service that effectively supports both transactional data and back-office systems, allowing petroleum and c-store operators to spend less time managing their networks, “SmartLink” provides merchants monitored communications for automatic tank gauges, in-store environmental control systems, back-office systems, digital signs, email and internet. In addition, SmartLink’s payment gateway provides a SSL network to support transactions generated by POS systems, money-order, check cashing, ATM and fleet card terminals. Dial or cellular back up is included to provide a secondary communication in the event of a broadband line outage. CITGO can now consolidate multiple in-store devices onto one high-speed broadband line for lower telecommunication costs, to save resources and conduct more effective business management.

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Credit Card Delinquency Down for 12th Month

U.S. consumer credit card delinquency rates fell once again in October for the 12th consecutive month as the impact of the recession weans. The delinquency rate in October on credit card accounts at least 60 days past due was down to 4.51%, from 4.65% in September and down 174 basis points from the 6.25% year ago figure. This, according to Moody’s, also shows in late November the U.S. securitized credit cards sector has been upgraded to “stable” from “negative, ” as the combined delinquency and chargeoff rates are projected to improve below 7% sometime in 2011. This coincides with findings the national credit card delinquency rate is down in 3Q/10 by nearly 9.8% since 2Q/10 and down 24.6% since the year ago period, thanks mostly to eight million consumers having stopped actively using bank-issued credit cards. However, the national average credit card borrower debt still edged upward for the first time in six quarters by 0.28% to $4,964 since the $4,951 clocked in 2Q/10, but down 11.54% from the year ago figure of $5,612. Late stage delinquency was down 6 bps to 3.5% and early stage delinquency down by 1 bps to 4.61%, credit card chargeoffs are still above the vital 10% mark. Delinquency is down because of charge-offs in the higher risk segments of the population, more conservative spending in the low-risk segments, and significant efforts by consumers across the board to maintain the health of their credit card relationships as a financial cushion. These promising findings are coupled with a 6.5% compounded quarterly increase in demand for credit, showing consumer credit activity will be stronger in terms of quality and volume (CardFlash Library, 2010/11/30). For complete details on the credit card delinquency rate visit Carddata.com (www.carddata.com).

90+ DAY LATE
1Q/09: 1.29%
2Q/09: 1.15%
3Q/09: 1.09%
4Q/09: 1.18%
1Q/10: 1.10%
2Q/10: 0.92%
3Q/10: 0.83%
SOURCE: CardData.com

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Blackhawk & Network Branded Give Shopping Tips

Blackhawk Network prepaid and financial payments products has teamed up with the Network Branded Prepaid Card Association (NBPCA) to offer tips to make the most of their gift cards this holiday season. NBPCA non-profit, inter-industry trade association supports the growth and success of network branded prepaid cards while Blackhawk Network’s “Gift Card Mall” features over 300 retail partner gift cards in a variety of leading grocery, mass, convenience, drug and specialty stores, as well as online at www.GiftCardMall.com. Consumer tips include giving the gift of time and choice; enjoying the convenience of your prepaid gift card; selecting gifts that are both versatile and personalized; and registering credit cards to obtain all available rewards.

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Community First Bank Deploys Wolters Kluwer

Community First Bank has selected Wolters Kluwer Financial Services’ “ComplianceOne” to help document lending transactions comply with federal and state regulations. The bank has implemented “ComplianceOne” throughout its four branches in southeast Washington to connect major areas of business to its core processor through one, easy-to-manage user interface. Implementing compliance knowledge and experience behind Wolters Kluwer Financial Services’ Bankers Systems brand, “ComplianceOne” offers institutions integrated access to many of Wolters Kluwer Financial Services’ Wiz compliance analytics tools.

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