ACG

While credit card fees in general remain unpopular there is growing acceptance from UK consumers that fees are here to stay, with significant opportunities to target customer segments with fees that they perceive as added value. With this, 26% of credit card users paid activity based fees in the last 12 months; 50% of credit card users indicated that they would be willing to pre-pay fees for additional services like insurances, access to special events, and concierge services; and affluent consumers were more than twice as likely as non-affluent consumers to be interested in pre-paying fees. These findings, according to a recent study published by Auriemma Consulting Group (ACG), also showed 12% of credit card users would be extremely interested in pre-paying for a service package where they would pay a single annual charge to avoid paying activity-based fees like foreign exchange and cash advance fees.

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Cardtronics to Manage Kroger ATMs

Cardtronics USA has entered into a multi-year ATM managed services agreement with Kroger food and drug retailers, expected to be effective by 3Q/10. With this, Cardtronics will provide comprehensive ATM management services in approximately 800 Kroger grocery and convenience store locations, including ATM installation, complete cash management, maintenance, customer service, monitoring, and transaction processing services. Kroger is hoping the newly forged relationship will help make shopping easier for its customers.

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SOCGEN MOBILE

While only 32 million people in M-BRIC currently use mobile financial services, this number is projected to increase to 290 million users by 2015. While every second person owns a mobile device in M-BRIC countries, 70% of their population is currently excluded from the banking sector. As such, according to ‘M-Payments in M-BRIC’-the latest research from Arthur D. Little-, there is great potential for new entrants to actively shape the local m-payment market. The findings conclude Mexico is currently the best option for fast market entry, followed by Brazil, Russia, India and China.

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Visa Launches Online Shopping Tool

Visa has introduced its “Rightcliq” online shopping, focused on
improving retail browsing, checkout on merchant websites, and delivery
tracking. Featuring the “Wishspace” visual wish list to let users
collect, organize and share images of products they’re considering
purchasing, “Rightcliq” also provides merchant offers from popular
brands, a P2P advice section, and auto-fill payment information at POS.
The auto-fill payment information applies personal, payment and shipping
information from the digital wallet, which can hold any credit, debit or
prepaid card. The downloadable “Rightcliq” plug-in lets users add
products of interest to the “Wishspace” with a click and initiates Zero
Liability for fraudulent transactions through Visa payment accounts.

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Discover AAA Affinity Program Hits $2B Mark

Discover Bank’s affinity partnership program deposits from AAA members reached $2 billion. Deposits from AAA members doubled in the past year after reaching $1 billion in the first 18 months of the program, which began in January 2008. Total direct-to-consumer deposits at Discover Bank exceeded $17.5 billion in May. Discover Bank offers money market accounts, certificates of deposit and IRA CDs to AAA members through 45 participating clubs across the country. Discover recently signed another affinity partnership with the American Association of Individual Investors, offering its members preferred interest rates through a co-branded program exclusively designed for the organization.

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Cubic Promotes 3 New VPs

Cubic Transportation Systems has made three executive promotions to Vice President. The promotions include Carl Adrignola, Steve Brunner and Matt Newsome. Adrignola, who had been a contracts director for Cubic since 2008, is now vice president of contracts. He has more than 35 years of experience in both commercial and government contracts administration and management. He graduated from San Diego State University with a bachelor’s degree in business management. Steve Brunner and Matt Newsome, previously regional directors at Cubic, have been promoted to vice president and regional director for their respective regions in North America where Cubic currently does business and is seeking to expand.

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June MPR Up .26% M/M

Monthly Payment Rate performance for the month of June rebounded after a one month dip, reporting an increase of 26 bps to 14.22% and a 10% improvement year over year. The June MPR improvement, compared to the year ago figure of 16.04%, is consistent with seasonal patterns and driven by seasonal factors as well as fundamental changes in cardholder payment trends. Compared to the May figure of 13.96%, MPR was up .26% month over month. Historically, the MPR sees a slight uptick in June, as has been the case since the start of the current recovery, a trend lost last year with the onset of the recession. For complete details on current and historical MPR data, visit CardData.com (www.carddata.com).

MONTHLY PAYMENT RATE
Jun 09: 16.04%
Jul 09: 17.12%
Aug 09: 16.96%
Sep 09: 16.59%
Oct 09: 17.77%
Nov 09: 17.66%
Dec 09: 17.23%
Jan 10: 17.15%
Feb 10: 15.95%
Mar 10: 18.79%
Apr 10: 14.61%
May 10: 13.96%
Jun 10: 14.22%
Source: CardData (www.carddata.com)

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TrustCash mPayment Supports RIM BlackBerrys

TrustCash Holdings has completed the alpha development and integration of all RIM BlackBerry devices. Now the BlackBerry “Curve,” “Storm” and “Bold” offer users credit card processing and cash depositing for all purchases through the TrustCash m-payment gateway. In 1Q/10 RIM has sold 11.2 million devices and seen an increase in sales of 43% when compared with sales figures a year ago. TrustCash eCommerce technology infrastructure provides merchants with open access, PCI compliant payment processing for online businesses with advancements in payment solutions.

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Banks Respond to Regulation E with mBanking

Javelin’s “Reg E and Overdrafts: How Financial Institutions Can Use Mobile to Increase Profits Post Reg E” report has concluded, because Regulation E is compromising bank revenue with overdraft fee regulation, banks are either trying to preserve those fees or adapt. One way is offering customers mobile banking, offering immediate alerts when an overdraft occurs. The report concluded m-banking allows banks to communicate more effectively with their customers through real time updates; consumers most want a warning that an overdraft is about to occur; the young and ‘newly banked’ are most likely to incur overdraft fees; and consumers cite ‘too many fees’ as the No. 1 reason they leave their financial institution.

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Paymetric Partners with UTA, Expands Payment Options

Paymetric integrated and secure enterprise payment acceptance solutions has partnered with United Tranz*Actions (UTA) to offer clients more efficient payment acceptance options. With this, customers are given access to ACH and eCheck solutions that can improve cash flow, reduce exposure to bad debt and increase customer satisfaction. The combined functionality of Paymetric’s and UTA’s offerings can be integrated with a company’s existing enterprise systems, presenting no disruption to the normal order-to-cash workflow. Paymetric customers also are given access to UTA Remote Deposit Capture, ACH Processing with Guarantee, Check Guarantee and ACH Processing.

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Men 6% Less Optimistic Than Women on Economy

With optimism on the economic future on an overall decline, women’s outlook has held almost steady while men are much more skeptical. With current assessments of local economic conditions having ticked up 3 points since March for men (24%) and 4 points for women (23%), only 50% of men believe that the business conditions where they live will get somewhat (46%) or much (4%) better in the next 12 months, compared with 56% of women who believe that business conditions will get somewhat (51%) or much (5%) better. For men this represents an eight-point decline from three months ago when 58% of men thought conditions would improve, but just a three-point decline for women from 59% in March. This, according to a recent Citi survey conducted by Hart Research, shows 62% of men are somewhat (47%) or very (15%) optimistic that their own financial situation will get better over the next twelve months, a four point decline since March. This may have to do with the fact 16% of women believe they are personally better off than a year ago, up three points since March.

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Wright Express to Acquire ReD Cards

Wright Express payment processing has entered into a definitive share purchase agreements to acquire the Australian assets of Retail Decisions consisting of its fleet and prepaid card businesses from Palamon Capital Partners, Morgan Stanley and AlpInvest Partners for approximately AU$353 million in cash. The all cash transaction is anticipated to be immediately accretive to the Company’s adjusted net income and is expected to close in the third quarter. ReD Fuel multi-branded fuel card issuer has 270,000 cards in circulation, accepted at approximately 90% of Australian fuel retailers; as a processor of prepaid cards holds a 60% market share; and generated 2009 revenues totaling AU$61.4 million combined.

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