Chase Reports 1Q/10 Card Services Loss of $303MM

JPMorgan Chase reported Card Services net loss of $303 million for 1Q/10, compared with a net loss of $547 million in the prior year. This was thanks in part to lower provision for credit losses, partially offset by lower net revenue. End-of-period managed loans were $149.3 billion, a decrease of $26.9 billion, or 15%, from the prior year and $14.2 billion, or 9%, from the
prior quarter. Average managed loans were $155.8 billion, a decrease of $27.6 billion, or 15%, from the prior year and $7.4 billion, or 5%, from the prior quarter. Managed net revenue was $4.4 billion, a decrease of $682 million, or 13%, from the prior year. Net interest income was $3.7 billion, down by $793 million, or 18%. Noninterest revenue was $758 million, an increase of $111 million, or 17% thanks to a prior-year write-down of securitization interests, partially offset by run-off from the Washington Mutual portfolio. The managed provision for credit losses was $3.5 billion, compared with $4.7 billion in the prior year and $4.2 billion in the prior quarter noninterest expense was $1.4 billion, an increase of $56 million, due to higher marketing expense.

CARD PROFITS
1Q/08 $609 million
2Q/08 $250 million
3Q/08 $292 million
4Q/08 -$371 million
1Q/09 -$547 million
2Q/09 -$672 million
3Q/09 -$700 million
4Q/09 -$306 million
1Q/10 -$303 million
Source: CardData.com

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TrustCash Now PCI Compliant

TrustCash Holdings is compliant with the PCI scan validation requirements. PCI compliance
signifies network devices are compliant with the remote vulnerability
audit requirements of the Payment Card Industry Data Security Standard
(PCI-DSS), Visa USA’s Cardholder Information Security Program (CISP),
Visa International’s Account Information Security (AIS) program,
MasterCard International’s Site Data Protection (SDP) program, the
American Express Data Security Standards (DSS), and Discover Card’s DISC.
The TrustCash platform is a comprehensive online
payment processing system that provides merchants with open
access, PCI compliant payment processing.

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eMerchantPay Launches New Gateway Technology

eMerchantPay online credit card processing provider has launched its latest gateway technology for US merchants, offering a user-friendly interface to provide merchants access to reporting functions. On a robust reporting system created to save clients time and help them earn more money, the new interface from eMerchantPay provides customizable settings that allow merchants to see the full scope of their sales data in real time which can then be easily exported into document files for collaborative discussions with staff, financial planners and other in-house professionals. Instant descriptive error messages, field description comments and fine-tuned error checking in real time also help to make the new eMerchantPay interface the simplest to use.

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GCA Signs New Business in the U.S.

Global Cash Access Holdings cash access solutions and data intelligence for casinos has embarked on new business across the US. In the fourth quarter of 2009, GCA began servicing Gila River Indian Community’s newest facility in Arizona, the Wild Horse Pass Hotel and Casino with ATM, credit card cash advance, POS debit and QuikCash Plus (QCP). GCA also begain serving Parx Hotel & Casino in Bensalem, Pennsylvania with all the same services, plus its cash access services enabled through Western Money Systems ticket-redemption kiosks. Other businesses include the Tavern Casino, located at The Greenbrier resort in Sulphur Springs, West Virginia; Pinnacle Gaming’s newest facility in St. Louis, Missouri, River Spirit Casino; Salt River Pima-Maricopa Indian Community’s Grand Opening of their newest facility in Scottsdale, Arizona, Casino Arizona Resort & Spa – Talking Stick; and Downstream Casino Resort in Quapaw, Oklahoma.

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WU MONEY IN MINUTES

The Western Union Company and Banco do Brasil have teamed to offer the “Western Union Money Transfer Money in Minutes” service online to Banco do Brasil banked consumers through the bank’s Web site. The online money-transfer service arrangement with Banco do Brasil is an important step in Western Union’s “go-to-market” strategy in Brazil. As Western Union expands its money-movement service offerings, and in an effort to strengthen both its relationship and value proposition with consumers, the company looks to tap into cash, account and card-based solutions. The Western Union Money Transfer service has been available in Brazil since 1997, when both companies started the relationship, providing international money-transfer services through Banco do Brasil’s network that currently includes more than 5,800 locations.

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Hypercom Introduces Secure Payment Solutions for iPhone

Hypercom Corporation has unveiled the first two members of a product family that enable smartphones to accept card payments for merchants with Apple iPhones who demand secure card present processing capabilities on the smartphone platform. Hypercom’s “SmartPayments” payment solutions for the iPhone extend the use of electronic payments beyond in-store retail to home merchants, door-to-door delivery and repair services, event vendors and an array of other merchants with business-critical features not provided by recently-announced competitive units. “SmartPayments Mobile” is also designed for upscale retailers who want to stay close with high-value customers on the retail floor and expedite their purchases. It also feature encrypted, PCI, PA-DSS certified high security to fully protect the iPhone from scratches and other damage that results from using less protective products. Meanwhile, the “MobilePlus” solution adds a barcode scanner for instantaneous pricing, inventory control, auto population and validation of drivers’ licenses or other forms of barcoded information as required for on-the-go merchants selling products and services.

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VeriFone Deploys MSI as a PAYware Mobile iPhone Processor

VeriFone’s has chosen NJ-based MSI Merchant Services payment processor to distribute and process its “PAYware Mobile” credit card encryption sleeve. It is now readily available to the ISO’s of MSI, and the application software, available through the iPhone Apple Store, is free of charge. The sleeve plugs into the iPhone dock connector, cradles the phone and is ready to read the cards. The PAYware Mobile allows the secured acceptance of credit cards anywhere, any time with an iPhone 3G or 3GS and a merchant account. Transactions initiated by PAYware Mobile are managed through VeriFone’s “PAYware Mobile” secure gateway, allowing credit card transactions as well as check card transactions. It also prevents sensitive card data from ever entering the iPhone or being intercepted in transit.

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AirePoint and ezPOS Credit Card Reader Available as iPhone App

The new “AirePoint” wireless credit card reader and “ezPOS” app is now available. “AirePoint”
and “ezPOS” Point of Sale application provides more features than any
other card reader app on the market. In addition to both card present
and card not present capability, signature capture and transaction
voids, “ezPOS” provides an online pricelist for easy one-touch access to
sale items. This enables the merchant to securely process a transaction
in only one minute. “ezPOS” has passed the Payment Card Industry’s PA-DSS
requirements. Global Tek Labs is a developer of iPhone OS apps and accessories,
including custom hardware and software designs for use with iPhones,
iPod touch devices and iPads and has teamed with MersaTech, to provide one-stop shopping
and support for “AirePoint” and “ezPOS” merchants.

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Hypercom Exceeds 250,000 Remote Key Injections in U.S.

Hypercom’s HyperSafe Remote Key System (HRKS) has successfully completed more than 250,000 injections. Hypercom’s HyperSafe Remote Key System standards-based remote key injection product allows retailers to securely initiate on-site, in-store payment terminal key injection at POS. The system offers a fast and highly secure alternative to the industry’s traditional secure room key injection process. It eliminates the need for off-site secure room key injection by incorporating PKI (Public Key Infrastructure) to securely distribute symmetric 3DES keys. HRKS meets ANSI x9.24 and Visa PIN Security Guidelines for remote key management, and is FIPS 140-2 Level 3 and X509 compliant. HRKS is available with Hypercom’s Optimum T4200 countertop and M4200 mobile payment terminals, M4100, and L4100, L4150 and L4250 multilane terminals installed globally since 2004.

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Smartphones Topped 180 Million Units In 2009

The number of smartphones shipped in 2009 topped 180
million units worldwide, with Nokia, Research in Motion, and Apple
sharing 60% of the market. According to research from Parks Associates, annual sales will reach almost 400 million by
2014, and as the number of users approaches one billion, consumer demand
will grow for mobile broadband services that can share content,
particularly high-quality video, across connected devices and the home
network. The Parks Associates sponsored CONNECTIONS Europe to be held April 27 in Amsterdam will
feature consumer research and analysis on new service
opportunities in the mobile sector in the session “Mobile Video: The
Cloud, The App Store & the Connected Home.”

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VeriFone Deploys Next Generation VX Payment

VeriFone Holdings unveiled VX Evolution, delivering the next generation of its popular VX payment solutions family with market-leading enhancements including integrated contactless and end-to-end encryption. The four new VX Evolution systems designed to PCI PED 2.0 specifications, all feature industry-leading performance with ARM11 advanced processors and large standard memory configurations. All provide VeriShield Protect technology built-in to support end-to-end encryption of card data and include the “VX 520” countertop workhorse, featuring standard 160MB memory; the VX 680 mobile payment featuring more memory, large color display touch screen and options for WiFi, GPRS, CDMA and Bluetooth; the VX 820 programmable PIN pad featuring a 3.5” color display and touch screen; and the VX 820 DUET hand-over payment device with integrated PIN pad functionality.

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