epay Integrates with Radiant Systems

epay prepaid and payments processor has integrated with Radiant Systems to offer its prepaid and payments program through the “Radiant POS” for Petroleum and Convenience Retail. This partnership allows any retailer using the “Radiant POS” to easily add the epay program to their existing system with no additional hardware or expenses. In addition to taking epay’s full product offering via the Radiant integration, retailers can now offer pay-at-the-pump functionality for proprietary gift cards. Retailers have been increasingly interested in offering their proprietary gift cards at the pump, as it is a cost effective alternative from credit cards and the corresponding fees charged to retailers. This was created to be flexible enough to implement new products in the future without having to upgrade the software before deployment, allowing all transactions through the store’s current POS.

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TSYS Sees 2Q/10 Revenue Growth of $19mm

TSYS reported results for the 2Q/10, with total revenues of $433.7 million for an increase of 5.3% over the year ago figure. This was thanks in part to increased overall transaction volume and expense control, with 1H/10 having seen client revenues grow 3.6% while operating income was up 18.1%. Meanwhile, merchant POS transactions and FNMS transaction volumes each grew 8.5% for the quarter. However, income from continuing operations decreased 5.2% to $49.6 million compared to last year. The acquisition of FNMS on April 1 is being designated as positive, allowing TSYS to further diversify across the payments value chain.

TSYS REVENUE
3Q/08: $500 million
4Q/08: $439 million
1Q/09: $409 million
2Q/09: $412 million
3Q/09: $432 million
4Q/09: $435 million
1Q/10: $415 million
2Q/10: $434 million
Source: CardData (www.carddata.com)

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Visa completes $2B CyberSource acquisition

Visa announced that it has completed its acquisition of CyberSource Corporation, at a price of $26.00 per share of CyberSource common stock, or total consideration of approximately $2.0 billion, to be paid with cash on hand.
The acquisition of CyberSource expands Visa’s online payment, fraud, and security management capabilities. The combination is expected to accelerate the growth of the eCommerce category and enhance the value of Visa’s network, product and service offerings to financial institutions, merchants, partners and consumers.

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CMI Sees First Negative Gains in Over 24 Months

After more than 12 months of solid gains, the latest “Credit Managers’ Index” finally took a dip into negative territory. Since the start of the “Credit Crunch” in September 2008, the index jumped nearly eleven points and now sits at 55.9. This compared to 56.5 in April, 55.7 in March and the year ago figure of 45.1. The manufacturing side of the equation sits at 56.0, compared to 56.1 in April and 56.0 in March, while the service sector is at 55.8, compared to 56.9 in April and 55.5 in March, indicating growth. Not only has there been some expansion in terms of credit availability, but there continues to be evidence that companies are catching up on their debt. The National Association of Credit Management says there appears to be more money starting to filter into the system, making credit more accessible than it has been in some time.

CMI
May 09: 45.1
Jun 09: 46.4
Jul 09: 48.0
Aug 09: 48.1
Sep 09: 49.8
Oct 09: 51.0
Nov 09: 52.3
Dec 09: 52.9
Jan 10: 55.1
Feb 10: 55.2
Mar 10: 55.7
Apr 10: 56.5
May 10: 55.9
Source: NACM

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NRF Advocates Swipe Fee Fix

The National Retail Federation welcomed the signing of financial reform legislation that includes landmark provisions to control the $48 billion in credit and debit card swipe fees paid by retailers and their customers each year, and urged regulators to follow Congress’ intent of achieving major reductions in the fees. President Obama today signed H.R. 4173, the Dodd-Frank Wall Street Reform Act of 2010, named for Senate Banking Committee Chairman Christopher Dodd, D-Conn., and House Financial Services Committee Chairman Barney Frank, D-Mass.
The bill includes an amendment sponsored by Senate Majority Whip Richard Durbin, D-Ill., that would require the Federal Reserve to set regulations resulting in “reasonable and proportional” swipe fees for debit cards. This bars the card industry from interfering with merchants who offer a discount or other benefit to customers who pay by cash, check or debit card rather than credit cards, and would allow merchants to set minimum purchase amounts of up to $10 for credit cards.

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3Q/10 Online Retail Sales Projections Up 8% Y/Y

When it comes to back to school shopping, 17% plan to do their back-to-school shopping online this year, 5% more than the year ago period. These consumers are planning to spend an average of $271.77, an 8% increase over 2Q/10 and 20% increase over 3Q/09. This, according to the eBillme “Online Spending Index”, also shows shoppers plan to spend an overall average of $516.96 on back to school, both online and offline; 18 to 24 year olds plan to do the most back-to-school shopping, 13% above the overall average; and all consumers will spend an average of $144.41 on electronics and computers, $96.28 on clothing, $95.36 on books, $50.42 on back-to-school shoes, $41.66 on college dorm furniture, and $31.76 on school supplies. eBillme offers a secure way to pay online and the only online payment solution that extends the convenience of online banking to the merchant’s checkout process.

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AmEx Appoints New Board Member

Ted Leonsis has been elected to the American Express Board of Directors, Chairman of a new Innovation and Technology Committee. He has been, and will continue, advising American Express on digital and online payments strategy since the beginning of 2010 when the company acquired Revolution Money, for which he had been Chairman. Leonsis held a number of executive positions at AOL from 1994 until 2006, including Vice Chairman and President. Following his retirement from AOL, Leonsis founded and launched SnagFilms, a company that distributes documentaries to a global audience online. Ted is a graduate of Georgetown University and a member of its Board of Directors.

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Capital One Loses “Fixed” APR Argument

The United States Court of Appeals for the Ninth Circuit rejected the argument of Capital One Bank that the word “fixed” in front of the APR in its solicitations for credit cards is not misleading, although the Bank claims the right to change the APR at any time for any reason. In the Rubio v. Capital One Bank case, the decision was concluded “it is not ‘clear and conspicuous’ to describe an APR as ‘fixed’ when the creditor has reserved the right to change the APR for any reason,” as required by the Federal Truth in Lending Act. This is according to Kirtland & Packard, which has led consumer complaints in such cases as Morgan v. AT&T Wireless Services, in which the decision as to whether a corporation has deceived the public back in the hands of a jury, and Shroyer v. New Cingular Wireless Services, in which AT&T Wireless’ argument was rejected that the FCC has exclusive jurisdiction over claims by consumers that their wireless carrier breached their contract by failing to provide adequate service.

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ALI Solutions Expands Management Tool to China

China Merchants Bank has licensed ALI’s “OnQ” automated and centralized collections campaign and strategy management. OnQ is used by nine of the top ten US credit card issuers in the U.S. and processes over 500 million records per month. This is relevant with the rapidly growing Chinese credit card market, which has a 2010 potential market of more than 200 million consumers. Despite aggressive growth in the past few years, CMB’s credit card portfolio has one of the lowest charge-off and delinquency rates. These conditions create strong incentive for Chinese banks to manage risk and collections effectively at the individual level, tightening policies where appropriate but also loosening them where risk is low.

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62% Say American Economy Still on the Slide

The majority of Americans believe the economy has yet to hit bottom. In fact, 62% share this sentiment, a 3 point decline since March when only 59% felt this way. Conversely, only 33% believe the economy has already hit bottom, despite the fact the economy has seen growth since 3Q/09. This, according to a nationwide survey issued by Citi and conducted by Hart Research Associates, also shows 62% believing it will be at least two or three years before a recovery while 28% believe it will be at least four years before the economy stabilizes; 24% say the local economy where they live is good or excellent, up from 19% in March; 17% say their personal financial situation is better now than a year ago has improved slightly since the 15% in March; and 52% say their personal financial situations are about the same as they were a year ago. Additionally, 64% remain very or somewhat optimistic that their financial situation will improve in the next twelve months, compared to 32 percent who are somewhat or very pessimistic, and 85% reporting local employment opportunities are only fair (36%) or poor (49%).

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SICAP PAY4ME

The Orange Cameroon mobile collect call service, “Sicap Pay4Me,” was awarded at the Annual Growth Product Sharing Summit. Features such as the White List option, enabling the recipient of the call to be directly connected without having to always accept the collect call, are considered as assets for they make the service easier to use and more efficient. Our collaboration with Sicap has enabled us to introduce a service which is a first in Cameroon and to be recognized by the Orange Group as pioneers. This allows a prepaid user without credit to make calls that the recipient will be paying for.

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Fiserv Online Leadership Community Membership Hits 6,000

Fiserv financial services technology has launched its “Boardroom Series” online thought leadership community has enrolled 6,000 members in less than one year. Having launched on July 30, the “Boardroom Series” provides Fiserv clients trends, analysis, insight and research to help them improve their overall business performance. Membership is currently comprised of 46 percent banks, 41 percent credit unions, and 13 percent other financial institutions. Features provided on the Boardroom Series by Fiserv subject matter experts include executive briefings, videos, webinars, polls, client case studies, virtual events and weekly updates.

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