FICO Reports 2Q/10 Revenue of $155MM

FICO analytics and decision management technology posted 2Q/10 net income of $17.9 million, compared with the year ago net income of $18.1 million, and revenues of $155.3 million, compared to the 3Q/09 figure of $156.0 million. Revenues came from applications revenues of $91.4 million, compared to the 3Q/09 figure of $94.6 million for a 3% decrease; scores revenues of $46.5 million, compared to the 3Q/09 figure of $45.3 million for an increase of 3%; and tool revenues of $17.4 million, compared to the 3Q/09 figure of $16.1 million for an increase of 8%.

FICO REVENUE HISTORICAL
2Q/09: $156.0 million
3Q/09: $151.9 million
4Q/09: $151.5 million
1Q/10: $143.7 million
2Q/10: $155.3 million
SOURCE: Carddata.com

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MoneyGram Posts 2Q/10 Revenue up 2% Y/Y

MoneyGram International global payment services has reported 2Q/10 money transfer transaction volume up 7% while money transfer fee and other revenue were up 2% year over year. This is thanks in part to global agent locations having increased 13% over the prior year to 203,000. Total revenue declined 3% to $283.6 million, compared with $291.2 million in the same period last year. Total fee and other revenue declined slightly to $277.6 million, from $278.5 million in the same period last year. Total revenue in 2010 reflects investment revenue and net securities gains that were $6.7 million less than second quarter 2009. Net income for the quarter was $6.8 million, impacted by $6.0 million of stock-based compensation, $1.9 million of restructuring and reorganization costs, $1.5 million of asset impairment charges, and a $3.5 million write off of deferred financing and debt discount related to the early debt paydown.

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COF & Unemployment Slow, Linger at 10%

The job loss rate in June slowed to a 9.6% unemployment rate.
Coincidentally, the credit card charge off rate slowed for the first
time in two years to now stand at 10.28%. This, after months of soaring
past the 6% mark in December of 2008, the 8% mark that following spring,
and finally the 10% mark in September of ’09, comes as sweet relief to
rampant fear last year credit card-backed securities would realistically
near 12% by this time. According to CardData (www.carddata.com), average
charge-offs for the first quarter were an unprecedented 10.93% with an
unemployment rate of 10.2%. With a 9.6% unemployment rate for June,
second quarter managed charge-offs are expected to hover around 10.2%.
With the unemployment rate showing signs of improvement, skyrocketing
card charge-offs have done the same and will hopefully not hit the
dreaded 11% mark. For complete details on credit card charge-offs visit
Carddata.com (www.carddata.com).

Unemployment Charge-Offs
Jun/08: 5.7% 5.3%
Sep/08: 6.0% 5.5%
Dec/08: 7.1% 6.0%
Mar/09: 9.0% 8.7%
Jun/09: 9.7% 9.5%
Sep/09: 10.4% 10.1%
Dec/09: 9.7% 10.6%
Mar/10: 10.2% 10.93%
Jun/10: 9.6% 10.28%
Source: CardData (www.carddata.com)

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BBVA Offers Users Fiserv Online Bill Payment

BBVA Compass has renewed its contract for the Fiserv “CheckFree” user-friendly online billing and payment services. BBVA Compass will also continue to utilize “FraudNet” automated fraud detection system to mitigate fraudulent online transaction risk. Fiserv supports online bill payment services for 76% of the consumers who pay bills online through their financial institution, delivering 93% of the electronic bills received through the online banking channel. The “CheckFree RXP” is updated through “Feature Packs,” regularly scheduled additions that automatically ensure the Fiserv network of financial institutions and their customers have immediate access to the most up-to-date online payment tools with a bill pay “widget” that enables customers to schedule a payment directly from the online banking homepage rather than visiting a dedicated bill payment page.

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U.S. Credit Card Default Rates Show Promise

Fitch’s prime credit card chargeoff index improved year-over-year for the first time in more than three years, with June chargeoffs having dropped to 10.57%, 56 basis points (bps) lower than the prior month. Late stage delinquencies improved for the sixth consecutive month and dipped below the 4% threshold for the first time in 18 months. With this, the Fitch 60+ day delinquency index decreased by 15 basis points to 3.86% during the June collection period while 30+ day delinquencies decreased for the fourth consecutive month by 14 bps to 5.13%. Gross yield reported at 22.67% for a 47 bp improvement, 17 bps shy of its highest level ever. Yield performance was up 26% compared to the same period last year, but is expected to decline by up to 10% in the coming months while the MPR broke a 29 month high and reported a 59-bp increase to 19.61%. MPR performance rebounded after a one month dip, reporting an increase of 26 bps to 14.22% and represents a 10% improvement year over year.

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SVM Deploys CashStar eGifting

CashStar digital gifting and incentives has partnered with SVM distributor of gasoline and retail gift cards to deliver CashStar-powered eGift cards to SVM’s corporate customers. SVM offers gift cards from more than 150 of the nation’s most popular retail stores, restaurants, service companies and hotels to corporations for incentives, rewards and promotions. Under the terms of this agreement, SVM will use the CashStar digital gifting and incentives platform to deliver eGift cards to its corporate customers. The CashStar platform delivers retailers incremental, high-margin sales, promotes online and in-store traffic and encourages customer loyalty by providing consumers with gifting experiences.

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Citi Extends Commercial Card Reach to 50th Country

Citigroup Global Transaction Services has extended its local commercial card issuance capabilities to South Africa, the 50th market where Citi has launched its global card offering in recognition of ongoing client demand. The offering will soon include Citi’s turnkey prepaid card solution leveraging its experience as the largest global provider of corporate and government prepaid programs. Nearly 500 multinational corporations use its commercial cards programs at the core of their expense management strategy, making Citi a premier cards issuer in terms of technology, innovation and transaction volume. Clients are able to centralize program administration with one provider by leveraging Citi’s innovative proprietary ECS+ platform.

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BookIt.com Launches American Express Reward Incentive

BookIt.com online travel provider is introducing its Panama City Beach travel promotion. When customers book a trip to the FL destination by midnight July 31st with all travel completed by September 6, 2010, they can earn up to $200 worth of American Express(R)-branded Reward Cards. In doing so, BookIt.com has partnered with the Panama City Beach Tourist Development Council to provide guests who travel now through Labor Day. Guests who book a qualifying stay at participating Panama City Beach hotels or resorts will receive an American Express(R)-branded Reward Card: Stay 3 nights for a $50 Reward card; 4 nights for a $100 Reward card; or 5 nights or more for a $200 Reward card.

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MasterCard & Acculynk Launch Debit E-Commerce Authentication

Acculynk signed agreements to provide MasterCard Worldwide “PaySecure,” its Internet PIN debit solution, to U.S. financial institutions that issue Debit MasterCard cards. With “PaySecure,” cardholders are given optional verification method for PIN-based e-commerce transactions. In keeping with MasterCard’s commitment to innovation in debit, the agreement provides participating financial institutions an opportunity to expand and enhance their e-commerce authentication methods with PaySecure via the MasterCard Worldwide Network. PaySecure appears as a payment option at an enrolled online merchant’s checkout screen when the consumer’s debit card is issued by a financial institution that has enrolled its cards in the PaySecure service. Rather than typing in their PIN, consumers enter their PIN using their mouse on Acculynk’s patented, graphical PIN-pad to complete the transaction.

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eAccess LLC to Supply Smart Cards to PATH

eAccess Cubic Corporation subsidiary and smart card, RFID solutions and services provider is set to deliver 1 million smart cards to the Port Authority of New York and New Jersey (PATH) under a new three-year-contract. eAccess will deliver a substantial quantity of Limited Use Contactless Smart Cards, packaged with a secure RFID shield for convenient storage and retail handling. To be sold through retail kiosks at various PATH stations, the new cards meet the ANSI 410 standard adopted by the American National Standards Institute, as well as ISO/IEC 14443 compliance. ANSI 410 has accelerated the use of Limited Use cards among public transit agencies and systems integrators.

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NRF Says Need for Further Federal Action on Card Fees

The National Retail Federation is advocating the need for further federal action to control card swipe fees. Pointing to a new Federal Reserve study showing that swipe fees result in a “transfer of income” from low-income individuals to wealthy individuals and driving up prices for all consumers, with an estimated $151 of the extra amount paid by the average cash-using household goes to subsidize card-using households. The NRF is also pushing to allow merchants to charge different prices for cash and credit, disclosure of “full information” about fees, redistribution of fees to low-income individuals through tax policy, increased competition from alternative payment systems if it cannot be attained within the credit card market, and government regulation of both credit card fees and rewards.

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HSBC Appoints New VP, Card Services

Brian Hughes has been appointed Executive VP and Head of Card and Retail Services for HSBC Finance Corporation. Having been with HSBC since 2004, most recently serving as EVP, Marketing, for Card and Retail Services, he was responsible for the strategic direction and day-day-day leadership and operations of the Retail Services business and its merchant relationships. Hughes has played a key role in working effectively with the merchants on business solutions, including renegotiating many merchant and partner contracts. Prior to joining HSBC, Hughes was a Principal with Booz Allen Hamilton, where he specialized in growth strategy and marketing effectiveness.

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