Royal Buying Group Selects Cardtronics

Cardtronics has been selected the exclusive ATM provider for Royal
Buying Group (RBG) marketing association for convenience/gas operators
and jobbers. With these agreements, RBG will be recommending to any of
its members implementing a new or updated ATM program the Cardtronics
platform, who will in turn provide members exclusive pricing and
promotions. Representing almost 6,000 members in 50 states, RBG benefits
members by selecting, negotiating, implementing and tracking the best
possible vendor programs on their behalf. TX-based Cardtronics ATM
owner/operator oversees
33,100 ATMs across every major U.S. market, 2,575 ATMs throughout the UK
and over 2,100 ATMs in Mexico. IL-based RBG was ranked the 6th fastest
growing company by Crain’s Chicago and is listed as one of the largest
privately held companies in the Chicago area.

Details

Sports Authority to Accept MC PayPass

The Sports Authority sporting goods retailer will now be accepting
MasterCard Worldwide’s “PayPass” contactless payment solution at all of
its 450 store locations across the U.S. With “PayPass,” customers can
conduct retail transactions by tapping their contactless cards or
devices on electronic readers at the POS. Among those consumers with
“PayPass” cards, 77% of use it as their primary form of payment while,
as of 1Q/09, MasterCard had issued nearly 55 million “PayPass” devices,
nearly 100 times the volume issued as of 1Q/08. With these developments,
Sports Authority customers are allowed extra convenience, no longer
having to sign receipts for purchases valued under $25.

Details

CO-OP Network Inks 55 Deals in 2009

CA-based CUSO CO-OP Network has landed 55 new contracts for 2009.
In addition to the network, CO-OP recorded new client contracts for
other productlines, including ATM processing, card services (including customized debit
programs), shared branching, fraud protection/risk management and check
imaging. The new network agreements push CO-OP’s total number of new contracts for the
year to more than 100 across multiple business lines.
Two years ago, CO-OP introduced GPS and text messaging locator download
capabilities and free-ATM signage, making the large number of locations
easy to find. A total of nearly 3,000 credit unions, about one-third of all credit
unions in the United States, participate in CO-OP Network, a nationwide network of
surcharge-fee ATMs and one of the most recognized credit union consumer brands. CO-OP
Network gives 26 million member cardholders surcharge-free access at 28,000 ATMs
across the country, including credit union locations and retail outlets like
7-Eleven, Costco, Publix and Walgreens. Members can make deposits at more than 9,000 CO-OP
Network ATMs, many using envelope-free ATM check imaging.

Details

EU M-BANKING

Mobile banking complements Internet banking across the Nordic countries,
France/Benelux, Germany/Austria and the UK/Ireland. The option is seen
as a parallel channel to Internet banking in Baltic countries, Central
Europe and Iberia while it’s the main, stand-alone e-banking channel in
the Mediterranean countries and Bulgaria. The classifications for the
mobile banking potential across the EU is made available thanks to
Celent’s recent “Key Trends in Mobile Financial Services in the European
Union” study, examining penetration and growth opportunities for mobile
financial services in the EU. The study also shows mobile financial
services consist of mobile banking and mobile payments; adoption of
mobile financial services vary widely across the region; adoption
depends on Internet banking penetration, payment system sophistication
and how entrenched Internet banking is. Additional research shows mobile
payments in a “niche plus” (niche + remittances) role across the UK; a
niche role in Nordic countries, Germany/Austria, France/Benelux, Iberia,
Baltic countries and Mediterranean countries; and playing a wider role
in Central Europe and Bulgaria/Romania.

Details

FICO 08 Available from All 3 Credit Bureaus

The new “FICO 08” credit score will be available at all three national credit reporting agencies by the end of this month. Over 400 lenders have begun using or testing “FICO 08” scores, including five of the seven largest U.S. banks and four of the five largest credit card issuers. The strongest improvements in risk prediction over current FICO scores is achieved in key consumer segments such as those opening new accounts or having prior derogatory information. In addition, this newest generation of FICO scores includes refinements to help lenders better evaluate consumers who are comparatively new to credit. To streamline lenders’ conversion to the “FICO 08” score, the new model retains the same 300-850 scoring range, score reason codes, minimum scoring criteria, and inquiry treatment as previous versions of the score. In addition, “FICO 08” helps lenders protect against authorized-user account ‘piggybacking’ by incorporating new patent-pending technology that materially reduces the potential score impact associated with the abuse of authorized user accounts.

Details

JR’s POS Depot to Market Optimum & MNS

JR’s POS Depot has selected Hypercom’s “Optimum M4230” payment terminal
and is marketing the “Optimum M4230” multi-application mobile payment
terminal and Hypercom’s “Mobile Network Service” to its customers nationwide, including Signature Card Services. The high-performance, PCI-PED-approved M4230 features
long-range GPRS with dial back-up, the industry’s top security
certification, 32-bit multi-application processing for maximum
transaction speed and 24MB memory that is two to three times larger than
similar products to accommodate value-added applications such as gift
and loyalty programs. Hypercom’s global GPRS network, specifically
designed to securely deliver mobile POS transactions, provides coverage
on more than 200 GPRS networks in more than 90 countries. The advanced
high security POS network features simple, usage-based billing with no
roaming charges, fast and simple Internet-based real-time SIM
activation and 24/7 technical support.

Details

Wells Fargo Q2 Charge-Offs Hit 11.60%

Wells Fargo reported that second quarter charge-offs soared to 11.60% from 10.13% in 1Q/09, driven by higher bankruptcy filings. However, delinquency (30+ days) edged down from 6.49% in the prior quarter to 6.02% for 2Q/09. Credit card outstandings also nudged up by 1% to $23.1 billion due to lower payments. Wells says it is offering fewer balance transfers and approving fewer balance increases as a result of the weak credit environment. Card fees grew 33% annualized from first quarter on higher volumes, not increased cardholder fees. Linked quarter purchase volume on credit cards was up 26%. Some of
this growth was seasonal, but also reflects increased customer usage and new customer growth, including new private label dealers at Wells Fargo Financial’s retail sales finance business. While credit losses on credit cards remain elevated, the business remains profitable due to its relationship based approach. Currently 15% of Wachovia retail bank customers have a credit card with Wells, compared with 36% penetration at legacy Wells Fargo. For complete details on Wells Fargo latest performance visit CardData (www.carddata.com).

WELLS FARGO CARD LOANS
2Q/08: $19,429,000,000
3Q/08: $20,358,000,000
4Q/08: $23,555,000,000
1Q/09: $22,815,000,000
2Q/09: $23,069,000,000
Source: CardData (www.carddata.com)

Details

MAY VOL

Debit card volume is now growing by an annual rate of 38%, as “Gross Rupee Volume” (GRV) hit 18.9 billion rupees in May. Meanwhile, credit card GRV has declined at an annual rate of -14%, dipping in May to 48.2 billion rupees. After peaking at 64.4 billion rupees in October, credit card GRV has declined each month, in tandem with the global recession. Debit card GRV also peaked in October at 19.6 billion rupees, but rebounded significantly for the second month in May. According to the Reserve Bank of India, the number of credit card transactions declined 15% in May to 21.5 billion as the number of debit card transactions rose 38% year-on-year to 12.7 billion. At the end of May there were 24 million credit cards and 142 million debit cards in circulation.

Details

VCT Rolls-Out the Innovative 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” IL-based 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.

Details

U.S. Bank Merchant and CC Volume Remain Lower

U.S. Bancorp reports that second quarter merchant acquiring volume declined 11%
year-on-year to $59.7 billion and that the number of merchants declined 849,626.
However, average credit card outstandings soared by 24% to $14.3 billion.
Charge-offs rose to 7.36% from 6.32% in the first quarter and 4.84% for 2Q/08.
Total credit card volume, including consumer and business cards, declined 6% for
2Q/09 to $19.9 billion. Total debit card volume rose 4% from one-year ago to $9.4
billion. Credit and debit card revenue, corporate payment products revenue and
merchant processing services revenue were lower in the second quarter by 2.6%,
3.4% and 10.0%, respectively, as transaction volumes declined. USB noted that
marketing and business development expense was higher by 21% due to costs related
to new credit card product initiatives. Payment Services contributed $62 million
of the Company’s net income in the second quarter, a decrease of 74.8% from the
same period of 2008 and 36.7% from the prior quarter. The decline year-over-year
was due primarily to a $284 million increase in the provision for credit losses
driven by an increase in net charge-offs and an increase in provision expense
related to credit card portfolio growth, higher delinquency rates and changing
economic conditions from a year ago. For complete detail on U.S. Bancorp’s latest
results visit CardData (www.carddata.com).

MERCHANT ACQUIRING VOLUME HISTORICAL
2Q/07: $62,853,000,000
3Q/07: $63,882,000,000
4Q/07: $62,382,000,000
1Q/08: $64,853,000,000
2Q/08: $66,940,000,000
3Q/08: $66,941,000,000
4Q/08: $58,630,000,000
1Q/09: $57,877,000,000
2Q/09: $59,725,000,000
Source: CardData (www.carddata.com)

Details

Sterling HSA to Offer the WealthCare Card

Sterling HSA has selected Metavante as its exclusive provider of benefit debit card and healthcare payment technology. Metavante’s “WealthCare Card” will provide account holders with card-based access to their HSAs along with real-time balance information. The Metavante platform also offers a benefits administrator the freedom to choose its preferred HSA custodian when adding the account to the multi-purse debit card. New HSA accounts at Sterling HSA jumped 97% in 2008, with a corresponding 86% increase in dollar deposits. Metavante enables integrated consumer benefit account management of HSA, FSA, HRA, and dependent care and transportation accounts via card-based system.
Sterling HSA is an independent, privately held company offering health savings account administration services to employers and individuals nationwide.

Details

Avanquest Taps UpClick’s Payment Platform

Avanquest Software is to expand its use of UpClick’s payment processing
platform by leveraging it for traffic generated through email marketing
and search campaigns. Avanquest possesses and promotes 1,500 titles to
consumers through retail, online and direct sales channels. The
UpClick’s free payment processing platform will provide Avanquest Free
Online Payment Processing through PayPal, VISA, MasterCard, Solo and
Switch; Additional revenue from cross-sells through the UpClick network
of partners; and additional revenue from the subsequent network product
exposure. The Avanquest products can generate revenue for through
eligibility for use in cross-selling affiliate promotion thanks to
network exposure. France-based Avanquest is present in North America,
Europe, and Asia and was attracted to the UpClick platform thanks to its
international availability.

Details