PIN and Sig 09 Debit Card Growth Remains Robust

A new study forecasts a 7% growth each for PIN and signature debit this year. Issuers surveyed experienced debit transaction growth of 8% in the second half of 2008, composed of 15% growth in PIN debit transactions and 4% growth in signature debit. The “2009 Debit Issuer Study,” commissioned by Discover’s PULSE also found that PIN debit accounted for 35% of debit transactions last year, up slightly from 34.2% in 2007. The average debit transaction value was $42 for PIN debit and $37 for signature. Both figures have declined by roughly $1 compared to the previous study. In addition, active debit cardholders performed 17.3 point-of-sale transactions per month, on average, compared to 16.6 transactions per month in the 2008 survey. PIN POS losses, as measured in dollars per card per year, fell to $0.15 from $0.19. Similarly, ATM losses declined to $0.56 per card per year from $0.61, and signature debit loss rates fell to $1.81 from $1.92. Additionally, PULSE found that 53% participate in a surcharge-free ATM network, down slightly from 56% in 2007. And 43% offer ATM surcharge reimbursements to at least some cardholders.

Details

CMBC-CEA CARD

China Minsheng Bank and China Eastern Airlines have introduced the
JCB-branded “CMBC – CEA Credit Card”. The new co-branded cards,
available in standard, gold, and platinum, enables cardholders access to
JCB global network and services, for an international card that earns
China Eastern Airlines miles when used to purchase air tickets. The
“CMBC – CEA Credit Card” is the first JCB-branded platinum card to be
issued in China. As of June 1st, seven banks (Bank of China, Bank of
Shanghai, China Everbright Bank, China Merchants Bank, Shanghai Pudong
Development Bank, China Minsheng Banking and Ping An Bank) have
already launched JCB brand credit card issuing programs and the
cardholder base is more than two million in the country. In total, JCB has
alliances with eleven partner banks and financial institutions for
merchant acquiring and approximately 80,000 merchants now accept JCB cards.

Details

Reloadable Prepaid Card Pricing War Breaks Out

Tampa-based nFinanSe, an issuer of reloadable Discover prepaid cards,
has taken on Walmart’s reloadable Visa prepaid cards. The Company announced it will cut the price of its card from $5.95 to $3.00, effective July 1st. Walmart announced in February it was dropping the
fees for its reloadable “Walmart MoneyCard” to $3.00. nFinanSe says it
will continue to offer its reloadable cards through major retailers with
a $2.95 monthly maintenance fee and $2.95 reload fee, plus free customer
service and direct deposit. Walmart’s reloadable Visa program charges a
$3.00 charge for reloads and a $3.00 monthly fee. However, if customers
reload with direct deposit or after cashing their paychecks at Walmart,
there is no reload fee. If Walmart customers load at least $1,000 per
month, the $3.00 monthly fee is waived. nFinanSe’s “Discover Reloadable
Prepaid Cards” are currently available at approximately 10,000 retail
stores nationwide including Dollar General, Winn-Dixie and Mapco Express
Convenience Stores. The “Walmart MoneyCard” is issued by GE Money Bank
and can also be recharged at tens of thousands of Green Dot retailer
locations. Analysts predict a doubling of the reloadable prepaid
marketplace from $7 billion currently to $14 billion in 2011, driven by
greater penetration of the unbanked/underbanked population. (CF Library
2/18/09)

Details

ONTOUCH

GuestLogix, a retail solutions processor in the passenger travel industry
has unveiled its “OnTouch” global merchandising service to offer
convenient tickets and shopping, among other retail items, for airline
travelers. Generating new revenue streams for airlines and additional
income for flight attendants, the GuestLogix’ “OnTouch” is powered by
the “Mobile Virtual Store” onboard transaction platform, offers
in-flight merchandising and is available through 5 different programs.
These programs include the “OnTouch Box Office” offering in-flight
offerings of theatre, concert, theme park and attractions tickets
purchased in the air; “OnTouch Ground Connections” offering airport
transfers via taxi, bus, train, limo and more for a destination city;
“OnTouch Shopping & More” offering passengers catalogue sales with home
and/or destination delivery; “OnTouch Minutes on the Go” for prepaid
phone cards, phone top-ups, rentals, and web connections; and “OnTouch
Concierge Everywhere” providing consumer’s personal itinerary management
and destination-based travel updates through mobile SMS/email. Through
its onboard transaction platform, GuestLogix onboard transaction is
contracted to serve over 90% of the North American passenger trips and
50% of the European trips, including seven of the top 10 global airlines.

Details

PAB & JCB

Ping An Bank has become the seventh bank in China to issue JCB cards. The new “Ping An Bank BE@RBRICK JCB Card” offers five card designs featuring BE@RBRICK, a bear-shaped block-type figure, popular among collectors in Japan and China’s metropolitan youth. It is the first international credit card in the world to feature “BE@RBRICK.” The card offers original “BE@RBRICK” rewards for points earned with the card. Currently in China, JCB has alliances with eleven partner banks
and financial institutions for merchant acquiring, and approximately 80,000 merchants now accept JCB cards. In addition to Ping An Bank, Bank of China, Bank of Shanghai, China Everbright Bank, China Merchants Bank, Shanghai Pudong Development Bank and China Minsheng Banking have already launched JCB brand credit card issuing programs, and the cardmember base is more than two million in the country. JCB cards are now issued in 19 countries and territories, with more than 60.2 million cardmembers.

Details

Primera Technology Begins Shipping PX450

MN-based Primera Technology is shipping the PX450 Color Printer for use
at retail POS and point-of-issue.
The “PX450” is ideal for printing coupons,
receipts, tickets, name badges, wristbands and other types of
narrow-format output. Print times are among the fastest of any
full-color POS printer, producing a typical 4” x 2.5”
coupon in just five seconds. A built-in guillotine cutter allows forms
of any length to be printed,
cut and dispensed with clean, finished edges instead of perforations.
Full-color printing can add significant impact to printed output. A
recent study indicated that consumer redemption rates of coupons printed
in color were up to 25% higher than coupons printed in black and white.

Details

WU/USAID ADM

The US Agency for International Development (USAID) and Western Union
global payments network have launched the “African Diaspora Marketplace”
(ADM) to support U.S.-based African Diaspora for sustainable start-up
businesses in Sub-Saharan Africa. Candidates are required to be a member
of the Sub-Saharan African Diaspora living in the United States as a
U.S. citizen/resident; have a local partner in the country of
implementation; and submit grant funding requests of no more than
US$100,000 and no less than US$50,000. In the hopes of demonstrating the
impact entrepreneurs from Diaspora/migrant communities can have on
development in their home countries, WU & USAID aim to provide grant
funding to 10-20 small-and-medium businesses with the strongest
proposals for boosting economic opportunity and job creation in the
African region. Finalists will be chosen by a selection committee,
attend a 2-day networking conference in Washington, D.C. to present
completed business plans before a panel for the selection of the 10-20
grant-entitled entrepreneurs. The winners will be announced in December.
Western Union global money transfer services operates a network of
379,000 Agent locations in 200 countries and territories.

Details

VeriFone Generates a Profit as Revenues Fall

VeriFone posted a 14% decrease in first calendar quarter on revenues of $201.6 million, driven by a 17% decrease in the Company’s North American business. However, the terminal manufacturer posted a net profit for the quarter of $18.6 million, compared to a net loss of $18.0 million for 1Q/08. VeriFone says the revenue results continued to be challenged by the difficult global economic environment. During the quarter, Mocapay and VeriFone rolled-out a mobile payment and marketing system; signed a $10 million contract to be a premier payment solutions supplier to Moneris Solution; and recently introduced the “QX1000” plug-and-play solution for POS contactless acceptance. VeriFone expects to report net revenues that are relatively flat to the next quarter results of $202 million. For its full year of fiscal 2009, the Company expects net revenues to be in the range of $810 million to $830 million. VeriFone notes that it is still too early to predict when its revenue will rebound, but the Company remains confident of its earnings and cash generation capabilities. For complete details on VeriFone’s latest results visit CardData ([www.carddata.com](http://www.carddata.com)). (CF Library 1/7/09; 1/9/09; 3/2/09; 5/18/09)

REVENUE HISTORICAL
1Q/06: $142.2 million
2Q/06: $147.6 million
3Q/06: $156.6 million
4Q/06: $216.6 million
1Q/07: $217.2 million
2Q/07: $231.7 million
3Q/07: $237.9 million
4Q/07: $185.5 million
1Q/08: $233.0 million
2Q/08: $258.7 million
3Q/08: $244.7 million
4Q/08: $214.0 million
1Q/09: $201.6 million
Source: CardData (www.carddata.com)

Details

Bankruptcy Filings Pick Up Momentum in May

The number of U.S. consumer bankruptcy filings continues to hover around 125,000 monthly. In May the number of filings was flat sequentially, but up 37% from one-year ago. The increase is running ahead of the widely held projections of a 35% gain for 2009. According to the American Bankruptcy Institute and the National Bankruptcy Research, consumer filings totaled 124,838 in May, compared to 125,618 in April and 91,214 in May 2008. Chapter 13 filings constituted 27% of all consumer cases in May, one percentage point above April. According to the Administrative Office of the U.S. Courts total bankruptcy filings jumped 33% in the fourth quarter to 301,317 compared to the year ago period. According to CardData (www.carddata.com) there were 308,000 consumer filings in the fourth quarter. In a late 2008 American Bankruptcy Institute poll, 65% of respondents predicted that bankruptcies in 2009 would increase by at least 35% over the nearly 1.1 million cases filed in 2008. Fifty-three percent of respondents predicted that filings would increase by 35% or more while 12% thought that filings would increase by about 35%. (CF Library 1/08/09; 1/30/09)

BANKRUPTCY FILINGS
May 08: 91,214
Jun 08: 82,770
Jul 08: 94,124
Aug 08: 96,413
Sep 08: 88,663
Oct 08: 106,266
Nov 08: 99,925
Dec 08: 84,926
Jan 09: 88,773
Feb 09: 98,344
Mar 09: 121,413
Apr 09: 125,618
May 09: 124,838
Source: ABI/NBKRC; CardData.com

Details

Consumer Economic Confidence Up for 3rd Month

Economic confidence picked up again in May for the third consecutive
month as more Americans believe the economy is getting better. However,
consumers are still reluctant to increase their spending intentions,
especially on discretionary purchases. The Discover “U.S. Spending
Monitor” increased by 2.0 points in May to 86.2, the highest since
September. The number of consumers saying the economy is getting better
rose 5 points to 27%, a new high. The number of consumers saying their
personal finances are getting better rose to 20%, also the highest since
September. However, since January, the spending component of the “Index”
has improved less than a point, compared to the index’s economic
component, which has jumped 18 points. The number of consumers expecting
to spend more in the month ahead rose to 20%. For May, 30% of consumers
expected to spend more on household expenses, a 5-point increase from
April as gas prices reached their highest levels of the year. But
anticipated discretionary purchases remained largely flat, increasing
less than a point to 10% in May. Nearly half, 49%, still plan on cutting
back on these expenses. Discover notes that for the first time in the
“Monitor”’s history less than half of consumers reported that both
economic conditions and their finances are getting worse.

Details

NFC Forum Officially Unveils the N-Mark

The NFC Forum non-profit industry association has introduced its
trademark “N-Mark” to offer customers easy product recognition.
Recognition of the “N” is to inform NFC users their device is accepted
at the indicated, NFC-enabled location. The ‘mark’ detects and transmits
stored information on the device to such receiver mediums as posters,
bus stop signs, parking permits, street signs, medicines, magazine pages
and food packaging in such industries as public transit, retail and
healthcare. Near Field Communication short-range wireless connectivity
technology allows for simple, secure, two-way interactions between
electronic devices, which the NFC Forum non-profit association and its
150 global member companies have been seeking to advance since 2004.

Details

U.S. Bank Launches Healthcare Payment Tools

U.S. Bank has launched the “Healthcare Payment Management Essentials” payment tool.
“HPM Essentials” is based on U.S. Bank’s
“Healthcare Payment Management” program, but it is tailored to the unique
needs of the private practitioner. Users can accept and track payments
via credit card, debit card, check or cash and select additional
functionality to meet the specific requirements of the facility, such as
real-time insurance eligibility verification, out-of-pocket payment
estimation, and payment plans. “Healthcare Payment Management” is currently used by more than 8,200
healthcare professionals at 1,300 outlets nationwide and was recently
peer reviewed by the Healthcare Financial Management Association and can
be seen at the HFMA’s annual conference, ANI, in June.

Details