NCR 2Q/09

NCR reported that second quarter net income fell nearly 49% to $23 million as revenue slipped about 16% to $1.12 billion, compared to 2Q/08. Negative factors affecting revenue included foreign currency translation and lower financial product sales in the EMEA region. Revenue for the Americas was off by 13%, Asia Pacific and Japan was down 2% and EMEA declined by 25%. During the second quarter, NCR embarked on a plan to create a new global self-service innovation headquarters and a separate state-of-the-art, clean-energy based manufacturing facility for the company’s next generation of NCR “SelfServ” ATM solutions in Columbus, GA. In Brazil, NCR is committed to creating a new manufacturing and research and development center which will produce advanced ATM’s for Brazil, Latin America and Caribbean markets. In April, NCR purchased TNR Holdings, the second largest DVD kiosk operator in North America, with the goal of expanding the NCR “SelfServ Entertainment” portfolio across the continent as part of its strategic partnership with Blockbuster. NCR also invested in e-Play. For more details on NCR’s second quarter performance visit CardData (www.carddata.com).

NCR REVENUE HISTORICAL
2Q/08: $1.33 billion
3Q/08: $1.38 billion
4Q/08: $1.42 billion
1Q/09: $1.01 billion
2Q/09: $1.12 billion
Source: CardData (www.carddata.com)

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CCAA Collections Up 39.5% at Mid-Year

The Commercial Collection Agency Association collected almost $17 billion. This represents a percentage increase of about 39.5% over the twelve months ending June 2008. In the second quarter of 2009, approximately $4.6 billion in account placement was received by CCAA members. The group says the increased account placement is reflective of the tight availability of credit and a slowdown in sales which has caused a cash-flow crunch for small and medium size businesses. The CCAA is an association of commercial collection agencies that have been CERTIFIED by the Commercial Law League of America.

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U.K. Drives Global Payments’ Q2 Revenue Up 17%

Atlanta-based Global Payments posted a 17% gain in second calendar
quarter revenue to $402 million. The growth was driven by new business
in the U.K., 16% transaction growth in the U.S., and pricing initiatives
in Canada. On a constant currency basis, revenue grew 27%.
However, net income fell 6% year-on-year to $37.6 million for the
quarter ending May 31st. Revenue for North America Merchant Services
rose 3% to $275.0 million for 2Q/09. International Merchant Services for
the quarter nearly tripled to $92.9 million. Second quarter revenue for
the Money Transfer business declined about 15% to $34.1 million. GPN
says that based on current macroeconomic environment, and reflecting its
recent acquisitions, the Company expects fiscal 2010 annual revenue of
$1.69 billion to $1.74 billion. In June, GPN acquired the remaining 49%
interest in its merchant services joint venture in the U.K. from HSBC
Bank. For complete details on Global Payments’ latest results, visit
CardData (www.carddata.com). (CF Library 6/15/09)

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Cap One Posts Q2 Card Profit as Metrics Improve

Capital One posted a second quarter $168 million profit for its U.S. Card business. While the issuer’s credit card metrics remain elevated, delinquency has been declining and charge-offs have stayed in the single digits. Purchase volume of $23.6 billion for 2Q/09 was off 11.6% from the year ago quarter. U.S. managed card outstandings declined 3.4% to $64.8 billion for the second quarter, compared to $67.0 billion in the previous quarter and $68.1 billion for 2Q/08. The managed delinquency rate (30+ days) for U.S. credit cards was 4.77% for the second quarter, compared to 5.08% for 1Q/09 and 3.85% for the second quarter of 2008. The net charge-off rate for U.S. credit cards was 9.23% for the second quarter, compared to 8.39% for the first quarter and 6.26% one-year ago. COF’s revenue margin rose 65 basis points from the first quarter to 14.46%. The number of U.S. card accounts declined by 1.6 million since the prior quarter to 33.7 million, and are down 4.7 million, compared to one-year ago. For complete details on Capital One’s second quarter performance, visit CardData (www.carddata.com).

COF U.S. CARD NET INCOME
2Q/08: $340.4 million
3Q/08: $345.0 million
4Q/08: (-$175.6 million)
1Q/09: $ 2.4 million
2Q/09: $168.4 million
Source: CardData (www.carddata.com)

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GPN 2Q/09

Global Payments posted a 17% gain in second calendar quarter revenue to $402 million. The growth was driven by new business in the U.K., 16% transaction growth in the U.S., and pricing initiatives in Canada. On a constant currency basis, revenue grew 27%. However, net income fell 6% year-on-year to $37.6 million for the quarter ending May 31st. Revenue for North America Merchant Services rose 3% to $275.0 million for 2Q/09. International Merchant Services for the quarter nearly tripled to $92.9 million. Second quarter revenue for the Money Transfer business declined about 15% to $34.1 million. GPN says that based on the current macroeconomic environment and reflecting its recent acquisitions, the Company expects fiscal 2010 annual revenue of $1.69 billion to $1.74 billion. In June, GPN acquired the remaining 49% interest in its merchant services joint venture in the U.K. from HSBC Bank. For complete details on Global Payments’ latest results, visit CardData (www.carddata.com). (CF Library 6/15/09)

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MOBILE MONEY APP

Monitise Americas has launched the “Mobile Money” application for the Apple App Store. “Mobile Money” gives iPhone and iPod touch users simple access to their account information using a dynamic application that is easy to navigate and safe to use. Monitise Americas offers “Mobile Money” services throughout the U.S. with services ranging from an “essentials” package, which includes weekly balance texts and account updates, to an “active” package, which consists of real-time balance inquiries, mini-statements, account transfers, bill payments, same-day payments and more. Monitise Americas is a joint venture between Metavante and Monitise, a specialist in mobile banking technology.

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PayPal Seeks to Expand its Payments Platform

PayPal is opening its global payment platform to third-party
developers with the release of new “Application Programming Interfaces.”
PayPal’s current payments network integrates 27 financial networks,
15,000 local banks, 190 global markets and supports 19 currencies.
Several developers have integrated PayPal’s new APIs as part of a beta
program. Some of these companies include Twitpay, a Twitter-based
payment service; LiveOps, with its new on-demand workforce service
called LiveWork; and Microsoft’s “Windows Azure” platform, a cloud
development environment. To promote the new APIs, PayPal is holding a
“Developer Conference” on November 3rd. During the second quarter
PayPal’s net total payment volume was $16.7 billion and global active
registered accounts increased to 75.4 million. During the second
quarter, PayPal handled 259.6 million payments. (CF Library 7/23/09)

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Integra and Affinity Solutions Intro RewardMe!

IN-based Integra Bank and loyalty marketer Affinity Solutions have
rolled out the “RewardMe!” debit card cash rewards program. The
RewardMe! Program allows each debit card holder to earn cash rewards up
to 25% of the purchase price from national and local brand name
retailers when they use their Integra debit card to make purchases.
Based on the retailer, eligible purchases can be made in-store, by phone
and/or online. There is nothing additional that the
customer has to do. Cash rewards are automatically credited to the
customer’s Integra checking account each month.

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WU BOARD

The Western Union Company global payment services has appointed Wulf von
Schimmelmann to its Board of Directors to serve on the corporate
governance and compensation and benefits committees. To serve at least
until the next annual election of directors, with this development, the
board now consists of 10 directors. Currently serving as Chair of the
Supervisory Board of Deutsche Postbank; a member of the Supervisory
Board of Deutsche Telekom; a director of Accenture Ltd; a member of the
Supervisory Board of Maxingvest; and as Chair of the Supervisory Board
of BAWAG P.S.K., Schimmelmann was the CEO for Deutsche Postbank from
1999 to June 2007. During his service, Deutsche grew to become the
largest retail bank in Germany with almost 15 million customers.
Additional experience prior to 1999 includes his time as a member of the
Board of Managing Directors at BHF-Bank in Frankfurt am Main, as a board
member at Landesgirokasse-Bank in Stuttgart and as a partner at McKinsey
& Co.

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TERRAINCARD

A new card design has entered the market that adds a degree of perspective and dimension to card designs that was previously not possible. The new “TerrainCard” Versatile Card Technology can include one or more raised levels with beveled or sloped edges, with elements of the design showing a combined profile of up to .030″ or more above the base surface of the card front. VCT says the first “TerrainCard” project grew out of a collaborative effort between VCT and Stored Value Solutions. The cards hit retail store shelves in June. VCT is the largest U.S. manufacturer of plastic cards. Stored Value Solutions processes 1 billion transactions for 600 clients and their 580 million cardholders annually.

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CyberSource Processes $29B in 2Q/09

CyberSource posted second quarter revenue of $62.9 million, a 13%
increase over 2Q/08. During the quarter, the Company processed a record
579 million billable transactions, a 29% year-on-year increase with a
total value of $28.6 billion. CyberSource signed a record 38,000 new
customers in the quarter, increasing the installed base to approximately
273,000 active customers. The European operations processed a record
146.3 million transactions in the second quarter, an increase of 67%
over the same period last year. CyberSource generated $19.3 million of
global acquiring revenue during the second quarter, up 2% over the
immediately preceding quarter and added 850 new acquiring customers
during the quarter, and now has approximately 5,900 global acquiring
customers. Also, the Company signed over 400 new ISO and affiliate
resellers in Q2. For the third quarter the Company expects total revenue
to be between $63.5 and $64.0 million. For more information on
CyberSource’s second quarter performance visit CardData (www.carddata.com).

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Citi’s ThankYou Network Intros a Promotion

Citi’s loyalty program “ThankYou Network” marks its fifth year by offering members five promotions to earn 5 times more points.
“ThankYou” members have opportunities to earn 5x ThankYou Points which include:
“Deal of the Week” that offers members a 40 to 50% discount on a selected reward each week; the
Bonus Center that offers 5x ThankYou Points when shopping
at select merchants in the ThankYou Bonus Center, with over 400 retailers at
thankyou.com; Citibank Promotion which gives ThankYou Members with a Citibank checking
account 500 Bonus Points for setting up their username and password on
thankyou.com or by calling 1-800-THANKYOU; Travel Promotion from Expedia and weekly discounted reward specials.

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