CPC to Market Hypercom’s T4205 Terminal

CA-based merchant service provider and ISO Central Payment Corporation has
selected Hypercom’s “T4205” to its more than 25,000 US-based merchant customers.
The T4205 is the newest member of Hypercom’s high security Optimum T4200
product family that consists of four powerful
32-bit multi-application devices that share the same platform, user
interface and software toolkit to maximize efficiency, application
portability and offer customers a broad range of options to serve any
market need. CPC will offer the T4205 as the
terminal of choice to the 1,300 new merchants that it adds monthly. The
T4205 is replacing an incumbent terminal provider’s product. The action
follows CPC’s Class A certification of the device.

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GPN Takes-Over the HSBC Merchant Services JV

Global Payments has acquired the remaining 49% interest in its merchant services joint venture in the United Kingdom from HSBC Bank. Under the terms of the agreement, Global Payments will pay HSBC a total of $307.7 million in cash for the deal. In addition, HSBC will extend the current ten-year exclusive marketing alliance agreement whereby the bank provides merchant referrals and bank sponsorship to Global Payments to June 2019. Global Payments used existing cash and lines of credit to complete the transaction and anticipates the deal to be accretive in fiscal 2010 and will provide additional financial details during its fiscal 2009 year-end earnings call, currently scheduled for July 23rd. In June 2008, Global Payments and HSBC formed a joint venture, HSBC Merchant Services, to provide payment processing services to merchants in the United Kingdom and Internet merchants globally.

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Chase Moves Beyond Platinum to Sapphire Cards

Chase is rolling-out a new premium card to the mass market this summer that offers premier travel benefits, special customer service, the “Ultimate Rewards” program as well as enhanced identity theft protection and upgraded purchase protection. The new “Chase Sapphire” rewards cardholders with one point for every dollar spent on the card; double points on airfare purchased through the “Travel Booking Tool”; and up to 10 bonus points per dollar from 300 merchants featured at the “Ultimate Rewards Mall.” With the new “Sapphire” card featuring “Ultimate Rewards,” the points awarded never expire, there is no cap on points earned and there are no blackout dates for airline travel redemptions. The card is available without an annual fee or for $95 per year you can upgrade to the “Chase Sapphire Preferred” which enables cardholders to transfer points at full value to the industry’s top frequent flyer and hotel programs; a 25% bonus when points are used to book flights through “Ultimate Rewards”; plus 10,000 bonus points when $50,000 per year or more is purchased on the card. Additionally, the new card is offering 10,000 bonus points after the first purchase for the “Sapphire” and 25,000 bonus points after the first purchase for the “Sapphire Preferred”. Both cards carry an interest rate for purchases of the Prime Rate plus 6.99%.

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PSCU to Deploy the Akcelerant Framework

FL-based PSCU Financial Services has implemented the “Akcelerant Framework” to upgrade its collection processes.
The “Akcelerant Framework” for collections provides customizable
collection management tools with a workflow and analysis engine
that integrates to host data processors and service providers—creating a
highly efficient environment. PSCU Financial Services currently conducts 450,000 outbound calls each
month to service delinquent credit card accounts.
PSCU Financial Services is the
nation’s largest credit union service organization and serves
more than 1,300 financial institutions nationwide. As a non-profit
cooperative, the company is owned by more than 600 member credit unions
representing over 13 million accounts and 860,000 online bill payment
subscribers. Its Contact Centers handle more than 16 million inquiries a
year.

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eProcessing Network and Opticard to Partner

eProcessing Network has formed a strategic alliance with Opticard Payment Services to offer
ePN resellers Opticard’s gift card and loyalty processing services
to all their merchants. This new partnership has afforded eProcessing Network ultimate
flexibility in designing solutions for retail, mobile and web-based
merchants through their suite of gateway products that includes Online
Terminal, ePNJPOS, ePNMobile and ePNCart-all of which are PCI/PABP
compliant. ePN’s resellers can now offer their merchants an even greater
opportunity to build brand awareness, strengthen relationships with
their customers and encourage repeat visits.

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Capital One Charge-Offs Resume a Steep Climb

After some slight improvement in April, Capital One charge-offs surged
northward gaining 85 basis points in May. If the issuer had not recently
changed its bankruptcy processing, charge-offs would have neared double
digits. However, delinquency decreased 14 basis points in May,
representing the third straight month of declines. The charge-off ratio
rose from 8.56% in April to 9.41% for May, however the figure was about
50 basis points lower due to a change in the issuer’s bankruptcy policy.
U.S. Card delinquency declined from 5.04% in April to 4.90% for May.
Managed loans at the end of May increased to $65.6 billion. Capital One
notes that its internal guidelines require bankrupt accounts to be
charged off within 30 days, its practice had been to charge off customer
accounts within 2 to 3 days of receiving notification of bankruptcy. Due
in part to an increase in the volume of bankruptcies, the issuer has
extended the processing window to improve the efficiency and accuracy of
bankruptcy-related charge-off recognition. The new process remains
within Capital One’s internal guidelines, as well as FFIEC guidelines
that bankrupt accounts must be charged-off within 60 days of
notification. Capital One previously reported that the U.S. Card
charge-off rate increased to 8.4% for the first quarter. For complete
details on Capital One’s first quarter and monthly performance, visit
CardData (www.carddata.com).

CAPITAL ONE HISTORICAL
DELINQUENCY CHARGE-OFF
May 08: 3.81% 6.28%
Jun 08: 3.85% 6.42%
Jul 08: 3.96% 6.08%
Aug 08: 4.07% 5.96%
Sep 08: 4.20% 6.34%
Oct 08: 4.48% 6.54%
Nov 08: 4.70% 6.98%
Dec 08: 4.78% 7.71%
Jan 09: 5.02% 7.82%
Feb 09: 5.10% 8.06%
Mar 09: 5.08% 9.33%
Apr 09: 5.04% 8.56%
May 09: 4.90% 9.41%
Source: CardData.com

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Mobile Phone Skins to Embed Payment Chips

A TN-based firm has developed mobile phone skinning technology that has a contactless payment chip embedded. Mobile Payment Skins says its new “PHOOLAH” technology will be available this fall. With the new product cardholders have the ability to select their phone model and select their specific graphical artwork to order their own mobile skin that fits them the best. Their specific skin is then printed and fabricated on-demand and sent to them. When the card holder receives the vinyl skin, it is pealed from its backing and “wrapped” onto their mobile phone. The skin is embedded with a contactless payment chip. The personalization of phone skins is not new as companies such as Skinit, Mytego, Unique Skins, and others have been making on-demand personalized
vinyl mobile phone wraps for a few years. MPS is simply adding some payment functionality to these inexpensive skins.

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S&P Downgrades iPayment After Credit Rating

iPayment, Inc. announced financial results for the three months ended March 31, 2009. Revenues decreased to $170,053,000 for the first quarter of 2009 from $185,455,000 for the first quarter of 2008. Revenues, net of interchange, were $73,143,000 for the first quarter of 2009 compared with $77,074,000 for the first quarter of 2008. Net loss was $210,000 for the first quarter of 2009 compared to net income of $1,331,000 for the same period last year. The Company today will file its Form 10-Q for the three months ended March 31, 2009, with the Securities and Exchange Commission.

iPayment, Inc. is a provider of credit and debit card-based payment processing services to approximately 145,000 small merchants across the United States. iPayment’s payment processing services enable merchants to process both traditional card-present, or “swipe,” transactions, as well as card-not-present transactions, including transactions over the internet or by mail, fax or telephone.

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nFinanSe – Fully-Licensed Money Transmitter

Prepaid card specialist nFinanSe has successfully completed its efforts to become fully-licensed “Money Transmitter” in connection with the sale and reloading of the Company’s Reloadable Prepaid Cards at major retail chain stores. The Company is now licensed in the District of Columbia and forty-one states requiring licensure in order to sell and reload reloadable prepaid cards. Seven states do not require such licensure and the Company has elected to not offer its “nFinanSe Discover Network Reloadable Prepaid Card” in the states of Hawaii and Vermont. nFinanSe cards are issued by Palm Desert National Bank and First National Bank in Pipestone, MN.

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Canadian Wireless Operators Launch Zoompass

Canada’s three top wireless operators have banded together to launch a new money transfer and payment service. “Zoompass” has been introduced via EnStream, a joint venture owned by Bell Mobility, Rogers and TELUS. The new service is also available to mobile users of their respective sub-brands and affiliates including Fido, PC Mobile, and Solo Mobile. Customers can access “Zoompass” on their computer via the
Internet, from the mobile web, or by downloading the “Zoompass” application right to their wireless phone. During the registration
process, users must choose a PIN to be used for each transaction. Customers may also select to link their personal bank account or credit card to make loading and transferring money. Another unique feature of the service is the ability for customers to make secure purchases in stores and on the Internet using the balance in their “Zoompass” account with the optional “Zoompass Prepaid MasterCard,” issued by Peoples Trust. The new MasterCard is enabled with MasterCard’s “PayPass” contactless technology.

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Experian Launches Three Biz Credit Scores

Experian has introduced three predictive credit score products to assist in risk analytics.
Experian’s “Small Business Credit Share” is a cooperative database that
enables clients across multiple industries to contribute more detailed
commercial payment information than is typically provided. In exchange,
members receive exclusive access to unique account data from financial
and nonfinancial trade contributors. The portfolio risk scores provide
greater insight into financial portfolios, enabling program members to
maximize existing account relationships and reduce the costs associated
with manual review of marginal accounts. The “Small Business Credit Share Portfolio Risk Scores” provide
three model options to maximize portfolio performance which includes: All financial score that identifies businesses that are likely to go
delinquent on a financial account within the next 12 months; Commercial credit card score that identifies businesses that are
likely to go 90 days delinquent on a commercial credit card account at
least once as well as an account that will go 60 days delinquent two or
more times within the next 12 months and Retail credit card score, designed with the same
parameters as the Commercial Credit Card Score but is focused
specifically on commercial retail card accounts.

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nuBridges Builds a New Marketing Team

Atlanta-based eBusiness security provider nuBridges has hired David
Sutton, previously with IBM, as VP of Marketing and Jaime Davenport,
previously with Nexidia, as Director of Marketing. Sutton
will drive nuBridges’ global branding initiative. Davenport has over
20 years of enterprise software marketing experience, she is responsible
for expanding nuBridges’ demand-generation programs, including web-based
and live events. nuBridges provides secure
eBusiness solutions to encrypt millions of credit cards, exchange
billions of dollars in B2B transactions and enable countless
business-critical file transfers.

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