1WORLD CARD

One World Ventures prepaid cards has expanded its global relationship to
include “1World” Card Programs in countries throughout Asia Pacific,
including Vietnam. The Company is launching the program in the Country
with a new Global partner. To its more than 86 million citizens, Vietnam
banks have only issued around 10 million payments cards while the
Country’s economy is growing more than 7% a year and per capita income
has more than doubled over the previous decade. One World Ventures
invests in technologies, communities, and systems that facilitate trade,
finance, communication, and travel across international boundaries,
cultures, and languages, focusing on niche markets and providing
cost-effective operations.

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Asset Acceptance Capital Q2 Revenue Slips 13%

MI-based debt collector Asset Acceptance Capital reported total
revenues of $49.1 million in the second quarter, a 13% decline from the
year ago quarter. Net income for the quarter was $0.8 million, compared
to net income of $2.1 million for 2Q/08. During the second quarter, the
Company invested $20.0 million to purchase charged-off consumer debt
portfolios with a face value of $727.9 million, for a blended rate of
2.74% of face value. This compares to the prior-year second quarter,
when the Company invested $64.8 million to purchase consumer debt
portfolios with a face value of $1.9 billion, representing a blended
rate of 3.38% of face value. Cash collections of $87.3 million in the
second quarter were down from cash collections of $95.2 million in the
year-ago period. For complete details on AACC’s second quarter
performance visit CardData (www.carddata.com).

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Visa and U.S. Bank Form the Syncada JV for B2B

A new joint venture has been formed offering a global B2B network for corporations and governments to process and track invoices, make and receive payments, and have payables or receivables financed
through financial institutions. Syncada, created by Visa and U.S. Bank,
builds on Visa’s multi-bank network and U.S. Bank’s automated B2B e-invoicing, payment processing and trade finance network “PowerTrack.”
Currently, Syncada serves U.S. Bank and its legacy client base and processed over $18 billion in invoices in 2008. Now Visa has made a capital investment in Syncada to expand the service worldwide. Syncada will be headquartered in Minneapolis with operations in Chicago, Memphis, Toronto, Mumbai and Brussels. Visa says Syncada will extend the reach and capabilities of its commercial product suite.

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Fiserv 2Q/09 Revenues Remain Flat Sequentially

Fiserv posted total adjusted revenue of $983 million for the second
quarter, a 3% decline over 2Q/08, primarily attributable to declines in
the home equity loan processing business. The Payments business revenue
increased 2% in 2Q/09 to $525 million. The Financial Institutions
segment declined 8% to $514 million. Fiserv also reported that bill
payment transactions rose 8% year-on-year to 336 million. During the
quarter, the Company signed 102 clients for its electronic bill payment
services and 58 clients for its EFT/debit service. PNC signed an
agreement to convert its electronic bill pay system for National City to
Fiserv. Also in the U.S., HI-based American Savings Bank signed an
agreement for the “Signature Bank Platform”; VA-based Fauquier Bank and
MI-based Macatawa Bank signed an agreement to use Fiserv’s
enterprise-wide solutions based on the “Premier Bank Platform.”
The company expects positive second half 2009 adjusted internal revenue
growth, resulting in full-year adjusted internal revenue growth in a
range of -2% to 1%. For complete details on Fiserv’s second quarter
performance visit CardData (www.carddata.com).

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EURO PMI

The Bloomberg Euro-Zone Retail Purchasing Managers’ Index (“PMI”) fell
from 47.5 in June to 47.3 in July, demonstrating a sharper rate of
decline in like-for-like sales for the 14th consecutive month. Based on
mid-July surveys of more than 1,000 executives in the euro area retail
sector, Germany showed only a marginal drop in month-on-month sales with
PMI having risen from 46.0 in June to 49.8 in July for the weakest
decline among the 3 largest Euro-Zone economies. Meanwhile, France
posted an acceleration in the rate of sales decline with the fourth
greatest recorded PMI contraction over the survey’s five-and-half year
history from 49.4 to 46.0. Italy’s index fell from 47.0 to 45.6 and,
unlike France, remained above the average recorded over the first half
of the year. The year-on-year sales index fell from 42.7 in June to 39.8
and is expected to hit a six-month low across the Euro-Zone of 44.7
compared to 49.8 in June. The prices paid index rose from June’s record
low of 50.0 to 50.7 in July; Retail employment was cut for the sixteenth
successive month from 48.1 to 47.4; and retail stocks demonstrate a
record rate of decline of inventories of unsold goods in July (42.1),
reflecting deliberate moves by retailers to cut stock through
discounting and reduced wholesale purchases (43.8).

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Encore Payment Systems Offers an iPhone App

TX based Encore Payment Systems has introduced the “Encore Payment Systems iPhone Mobile Application” that gives small business merchants, independent
contractors and mobile merchants the ability to utilize Encore’s payment processing
solutions without a need for hardware processing equipment or a dedicated internet
line. Using the application, merchants can type the card information into the
phone and the credit and debit card transactions are processed as
“card-not-present” or “offline-debit” payments. Currently, receipts can be emailed to the
cardholder however future enhancement plans include the ability for the merchant to
print a receipt on the spot. The application is currently available through Encore’s sales team and
is set up via a one-time installation process through a web browser. Upon
installation the application icon is available on the home screen of the device for
convenient future use.

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Credit Solutions Reaches the $1B Milestone

Debt settlement provider Credit Solutions has settled $1 billion in
unsecured consumer debt.
Credit card losses, which usually mirror the unemployment trend, rose to
a 26-year high of 9.4% in May.3 Federal Reserve research indicates that
household debt is at a record high relative to disposable income. Some
analysts are concerned that this unprecedented level of indebtedness
among households could lead to increased household delinquencies.4
Credit Solutions has introduced a number of new technologies,
including .”Net Esign” capability, designed to streamline the debt
settlement process, strengthen online security and make customer service
even more convenient. Since 2003, Credit Solutions has helped more than
200,000
clients nationwide manage $2.25 billion in unsecured consumer debt,
settling approximately $30 million a month due to ongoing efforts to
make the settlement process as stress-free as possible for consumers.

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ABnote Introduces Lenticular Card Printing

ABnote North America and NY-based Tracer is introducing PVC free
lenticular printing on medium to long run plastic card and poster
products. Lenticular printing, enabling printed images to appear three
dimensional or even animated, is created in a process where an
interlaced image is reverse printed directly on the smooth backside of a
multi-angled lenticular lens. Available lenticular effects include the
“flip”, “morph”, “zoom”, “3D” and full motion video with up to two
effects can be combined on the same project. ABnote and Tracer will also
offer press proofs, rather than the more difficult to visualize
composite proofs.

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GLOBAL CARDS

A new joint venture has been formed offering a global B2B network for corporations and governments to process and track invoices, make and receive payments, and have payables or receivables financed
through financial institutions. Syncada, created by Visa and U.S. Bank,
builds on Visa’s multi-bank network and U.S. Bank’s automated B2B e-invoicing, payment processing and trade finance network “PowerTrack.”
Currently, Syncada serves U.S. Bank and its legacy client base and processed over $18 billion in invoices in 2008. Now Visa has made a capital investment in Syncada to expand the service worldwide. Syncada will be headquartered in Minneapolis with operations in Chicago, Memphis, Toronto, Mumbai and Brussels. Visa says Syncada will extend the reach and capabilities of its commercial product suite.

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Higher Fees Help Lift MasterCard Q2 Revenues

MasterCard reported adjusted net income of $349 million for the second quarter, a
26.4% gain over 2Q/08. Net revenue for the quarter was $1.3 billion, a 2.7%
increase over the year ago period. The network says the higher revenues were driven
by pricing changes, an increase in the number of transactions processed and a
decrease in rebates and incentives. On a local currency basis, MasterCard’s gross
dollar volume was down by 0.6% and worldwide purchase volume was down by 0.7%.
The Company noted that 35.8% decrease in advertising and marketing expenses
versus the year-ago period, primarily related to continued cost containment
initiatives in response to market realities. For the U.S. gross dollar volume for
credit and charge card programs declined 18.7% in the second quarter to $133
billion as purchase dollar volume fell 8.8% to $120 billion, compared to 2Q/08.
Gross dollar volume for debit programs rose 4.1% in the second quarter to $112
billion as purchase dollar volume increased 5.3% to $82 billion, compared to
2Q/08. For complete details on MasterCard’s second quarter performance visit
CardData (www.carddata.com).

MASTERCARD TRANSACTIONS (millions)
(purchases + cash)
TRANSACTIONS GROWTH
Jun 30, 2009 7,985 0.7%
Mar 31, 2009 6,475 0.3%
Dec 31, 2008 7,768 6%
Sep 30, 2008 7,638 12%
Jun 30, 2008 7,462 12%
Mar 31, 2008 6,972 13%
Dec 31, 2007 7,306 14%
Sep 30, 2007 6,842 13%
Jun 30, 2007 6,657 15%

Note: All MasterCard Credit, Charge and Debit Programs processed on MasterCard’s
networks. Source: CardData (www.carddata.com)

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VeriSign to Discount PCI Assessment Fees

VeriSign Global Security Consulting is offering up 15% off on the PCI
Assessment and Remediation
Service fees for Level 2 merchants. This discount is being
offered based on recent changes MasterCard made to Level 2 Reporting
requirements. On June 17, MasterCard posted a change to its Site Data
Protection
program that requires Level 2 merchants to be validated by a Qualified
Security Assessor (QSA) by December 31, 2010, as well as maintain its
current process of submitting Self Assessment Questionnaires (SAQ). This
is a dramatic change from the current, industry-wide requirement of
self-assessment for merchants processing less than six million
transactions annually. The rule change does not only apply to merchants
processing more than
one million MasterCard transactions annually; this applies to any
merchant classified as a Level 2 merchant from any other card brand.
MasterCard defines that its Level 2 also includes “Any merchant meeting
the Level 2 criteria of a competing payment brand”.

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APN GPO Inks a Card Processing Deal with WMG

Group purchasing organization Aesyntix Physician Network
announced it has signed an exclusive contract
with Wholesale Merchant Group Merchant Processing Services.
WMG is a leading provider of credit and debit card-based payment
processing services to small- and medium-sized merchants located across
the United States. The company’s payment processing services enable
merchants to process traditional card-present, or “swipe” transactions,
as well as “card-not-present” transactions. WMG enables merchants to
accept cards as payment for their merchandise and services by providing
card authorization, data capture, settlement, risk management, fraud
detection, and merchant assistance and support. Under
the terms of the contract, APN members will receive exclusive pricing
and rebates on WMG services, including processing on Visa and MasterCard
transactions. APN offers discount pricing contracts in areas that have
significant impact on its members’ bottom lines, including medical
supplies, revenue cycle management technology, and business services.

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