PIVOTAL & VISION

Pivotal Payments has acquired POS Card Systems and National Credit Card Processing from Vision Bankcard. Increasing Pivotal Payments’ merchant portfolio to 40,000 merchants to add over 30 independent sales agents and 120 agent bank branches to its expanding sales channels, the acquisition is the Company’s sixth for a subsequent growth of 280 employees and 600 sales agents. The company now services over 40,000 merchants in both the U.S. and Canada and processes over $7 billion in annual transaction volume. Pivotal Payments is a privately held merchant services provider with offices across North America.

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SINOPAY GPP V 2.0

Sino Payments has completed version 2.0 of the core Sino Payments Global Payment Processing platform “SinoPay GPP” for processing payment cards from point of sale terminals widely used by most retailers. The new version received system updates, installation and testing at PowerE2E’s headquarter location in Shanghai, China and has been designed to be used by most global retailers for regional retailers with large numbers of stores across the Asia Pacific and European regions. With full international card processing capabilities for all major card types, and for features and needs of international retailers in China and Japan, the “Sino Payments GPP” processes transactions from traditional POS terminals to convert into IP output.

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Javelin Examines New Trends in Banking

Javelin Strategy has released “10 Trends that will Shape Banking, Payments and Security in 2010 report and will hold a free webinar to discuss the forecast.
Javelin’s forecast for 2010 includes such topics as: regulators force bankers to rethink essential customer value; financial systems open up to more third parties; tough times call for new methods of prioritizing investments;
P2P to get a growth boost as more individuals transact with one another; merchants continue to call for more power, pressuring payments providers; cloud computing will reinvigorate interest in federated identity solutions; mobile banking will drive interest in underlying real-time banking systems; data breaches and PCI will drive costs of security higher; ATM and PIN threats will continue – how must security specialists respond; social webs fall into a security stranglehold.

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PSCU Financial Posts 17% Y/Y Growth

PSCU Financial Services posted 31% growth in processing net income and
9% growth in processing revenue for 2009 with 1.1 billion in payment
card transactions, up by 17% since the end of 2008. The cooperative
achieved 20% growth in debit and online bill payment transactions, with
credit transactions and contact center call volumes each up by 6%. The
cooperative issued a $14.7-million payout in December 2009 for
redemption of 1999 and 2000 revolving funds and helped member-owners
grow their core debit/credit/bill payment business by providing
promotional materials, consultative services, and 24/7 Contact Center
support. PSCU Financial credit union service organization serves more
than 1,300 financial institutions nationwide.

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Accor Launches Commuter MasterCard

Allowing commuters to save over $2,000 per year and employers over $400
per employee in taxes, Accor Services USA employee benefits solutions
has made available its new “Commuter Check Card” Prepaid MasterCard. For
use in accordance with the Qualified Transportation Fringe Benefit (IRS
Tax Code Section 132(f)) to pay for commuting and commute-related
parking expenses, the Accor Mastercard makes paying for commuting and
commute-related parking easier and more convenient than ever before.
Employers that administer commuter benefits in-house can benefit from
anonymous prepaid cards that are not specific to an employee, intended
to be distributed, used and disposed of every month or quarter. The
anonymous version of the Commuter Check card is not reloadable, is to be
loaded with funds once and used until the funds run out.

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ACM Processing& 3Delta Ink Partnership

E-payment processor ACM Payment Processing Solutions is partnering with card payment solution provider 3Delta Systems to expand and enhance payment services for approximately 19,000 business credit and financial professionals who belong to the MD-based National Association of Credit Management (NACM) and its network of Affiliated Associations.. Under the joint agreement, NACM will continue to exclusively market ACM’s solutions to its vast membership base. ACM will offer its suite of payment processing products along with those of 3Delta Systems so that NACM members get the best combination of low cost, security, flexibility and ease of use for processing payments – whether on paper or electronically. Now, NACM members who use 3DSI’s web-based processing gateway will automatically comply with Payment Card Industry Data Security Standards (PCI DSS), and those who include detailed, Level-3 line-item information with their credit and purchase card transactions will also qualify for the lowest possible interchange rates.

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Global Vision Appoints New Consultant

Electronic payment consultants Global Vision Group has tapped Marc Perl, previously with Visa, as Senior Consultant in the Business and Risk Strategy Practice. Perl is an electronic payments industry expert with over 30 years of experience in risk management, processing, encryption and software development. Prior to joining GVGroup, Marc spent 20 years at Visa Inc. where he developed and managed the Cardholder Information Security Program (CISP) for the Payment Card Industry Data Security Standard (PCI DSS). In addition to Marc’s work on PCI-DSS at Visa, he also managed Visa’s Integrated Debit platform and designed, managed and implemented Visa’s Integrated Debit PIN encryption technology known as Derived Unique Key Per Transaction (DUKPT). Prior to Visa, Perl spent four years at the Bank of America developing bankcard solutions and has consulted to organizations as varied as Jet Propulsion Laboratories to Total Systems Acquiring Solutions and others.

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Delinquency Starts 2010 on a Sour Note

The uptick of credit card delinquencies for U.S. credit card asset-backed securities is setting the stage for record charge-offs for 2010. However, gross yield, the measure of interest, fees and interchange revenue collected on outstanding balances, continued to increase reaching 20.21%. Fitch’s latest “Credit Card Performance Indexes,” which tracks the performance among most of the U.S. credit card-backed bonds, shows late payments rising to their highest levels in six months. Measured by Fitch’s 60+ day delinquency index, late payments rose 13 basis points in November to 4.54% following a similar increase last month. Charge-offs crept up to 10.68% from 10.09% in the prior month but remained inside of the record high of 11.52% set in September 2009. From 4Q/08 through 2Q/09, Fitch’s delinquency index rose 42% as the economic environment and employment situation worsened. Charge-offs subsequently peaked in 3Q/09 with Fitch’s index reaching 11.52% in September 2009 before receding in recent months. Monthly payment rates, a measure of how quickly consumers are paying off their card balances, fell to 17.64% from 18.57% last month. These MPRs are low compared to 2006 and 2007 when the MPR index routinely topped 20%, but are still strong compared to the average MPR of 16.00% since the inception of the index in 1991.

ABS 60+ DAY DELINQUENCY
Jan 09: 4.04%
Feb 09: 4.33%
Mar 09: 4.44%
Apr 09: 4.37%
May 09: 4.45%
Jun 09: 4.31%
Jul 09: 4.26%
Aug 09: 4.06%
Sep 09: 4.22%
Oct 09: 4.41%
Nov 09: 4.54%
Source: FitchRatings

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Bankruptcies End 2009 on a High Note

After cooling-off in November bankruptcy filings resumed an upward trend, rising 33% year-on-year in December. Overall consumer filing total for the 2009 calendar year topped 1.4 million, compared to the 1.1 million total consumer filings recorded during 2008. There were 113,274 consumer filings in December, according to the American Bankruptcy Institute, relying on data from the National Bankruptcy Research Center. Despite the drop in the previous month, the December filings represented a 1% increase over the 112,152 consumer filings in November. Chapter 13 filings constituted 28% of all consumer cases in November, unchanged from the October rate. Annual consumer filings have increased each year since the “Bankruptcy Abuse Prevention and Consumer Protection Act” was enacted in 2005. The ABI/NBKRC data showed that the overall consumer filing total for the 2009 calendar year (Jan. 1 – Dec. 31, 2009) reached 1,407,788 compared to the 1,064,927 total consumer filings recorded during 2008.

BANKRUPTCY FILINGS
Dec 08: 84,926
Jan 09: 88,773
Feb 09: 98,344
Mar 09: 121,413
Apr 09: 125,618
May 09: 124,838
Jun 09: 116,345
Jul 09: 126,434
Aug 09: 119,874
Sep 09: 124,790
Oct 09: 135,913
Nov 09: 112,152
Dec 09: 113,274
Source: ABI/NBKRC; CardData.com

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Credit Card Connection Launches Site

A new website, Credit Card Connection, is now live and will provide consumers alternative credit
card options in response to unfair and unethical practices recently
implemented by major bank card issuers. Consumers enter their ZIP code and a listing of credit unions with fair
and ethical credit card programs will appear. Each credit union’s credit card
program is rated on a five star rating system: interest rates not to exceed 18%, no
balance transfer fees, no penalty pricing, no annual fees and late fees which will never
exceed $25. Consumers can choose the credit union and card program which best suits
their own card usage needs. Credit Unions must sign up to be listed and do not pay
a fee for inclusion on the site. Card Analysis Solutions was created in 2003 to assist credit unions in
understanding the perceived complexities of card-program management.

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GEMALTO

Gemalto has been working with its German customers on investigating and fixing issues surrounding cardholders’ inability to conduct payment transactions at ATMs and POS terminals following the onset of 2010. In doing so, Gemalto and the German banks are actively developing a corrective process that avoids the replacement of the affected cards in Germany. At this stage, according to Zentraler Kreditausschuss – the German Central Credit Committee –acceptance of the concerned cards by the ATMs and POS terminals is widely re-established in the country. Gemalto digital security had 2008 annual revenues of EUR1.68BB and 10,000 employees operating out of 75 offices, research and service centers in 40 countries.

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Pivotal Payments Acquires From Vision

Pivotal Payments has acquired POS Card Systems and National Credit Card
Processing from Vision Bankcard. Increasing Pivotal Payments’ merchant
portfolio to 40,000 merchants to add over 30 independent sales agents
and 120 agent bank branches to its expanding sales channels, the
acquisition is the Company’s sixth for a subsequent growth of 280
employees and 600 sales agents. The company now services over 40,000
merchants in both the U.S. and Canada and processes over $7 billion in
annual transaction volume. Pivotal Payments is a privately held
merchant services provider with offices across North America.

Details