USPS and Dunkin Donuts Join Easy Savings

Dunkin’ Donuts and The USPS are the newest merchants to participate in the “MasterCard Easy Savings Program.”
Eligible MasterCard business credit and signature debit, U.S. cardholders enrolled in the
program will now receive an automatic 5% rebate on Click ‘N Ship purchases
made with the United States Postal Service at usps.com, and an automatic 5%
rebate on purchases at Dunkin’ Donuts. The “MasterCard Easy Savings Program” may have benefits for
merchants, helping them generate additional revenue and, more importantly, attract new
customers. MasterCard data shows small business cardholders enrolled in the
Program increased their spend by more than 60% at
“MasterCard Easy Savings Program” merchants from 2007 to 2008, and nearly
70% of MasterCard Easy Savings cardholders were new customers for MasterCard
Easy Savings program merchants.

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Euronet 1Q/09 Revenues Slip 4.5%

Euronet Worldwide reported that first quarter revenues declined 4.5% to $233.7 million, impacted by four unusual factors. However, total transactions hit 347.8 million, compared to 339.5 million in the first quarter 2008. The Company faced significant declines in foreign currency exchange rates against the U.S. dollar, adjustments in 2009 to the fourth quarter 2008 estimated goodwill and intangible asset impairment charges, the first quarter 2009 receipt of termination fees for two previously announced contracts and charges incurred in the first quarter 2008 associated with abandoned efforts to acquire MoneyGram. The EFT Processing Segment reported revenues of $46.2 million, compared to $48.2 million for the first quarter 2008 and transactions of 159.5 million, compared to 168.4 million for 1Q/08. The Prepaid Processing Segment reported revenues of $134.5 million, compared to $144.3 million for 1Q/08 and transactions of 184.3 million, compared to 167.3 million for the first quarter 2008. The Money Transfer Segment reported revenues of $53.0 million, compared to $52.3 million for 1Q/08 and transfer transactions of 4.0 million, compared to 3.8 million for the first quarter 2008. For complete details on Euronet’s latest results visit CardData ([www.carddata.com](http://www.carddata.com)).

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TSYS Slips 2.6% and Dumps TDM Unit

TSYS reports that revenues decreased 2.6% in the first quarter to $408.9 million. The Company also announced it is unloading its TSYS Debt Management unit as it is no longer a good strategic fit. TSYS says cardholder transaction volumes decreased 4.3%, and its POS volume increased only 1%. North America Services posted total segment revenues were $268.8 million, a decrease of 6.3%. The segment processed 1.48 billion transactions, a decrease of 6.8% and transactions for same clients were 1.47 billion, a decrease of 2.8%. International Services posted total segment revenues were $73.8 million, an increase of 5.7%. Merchant Services reported total revenues of $75.5 million, an increase of 6.4%. The Company is projecting total annual revenues of $1,637 million to $1,665 million or a decline of 5% to 3%. For complete details on TSYS’ latest results visit CardData ([www.carddata.com](http://www.carddata.com)).

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TransCard Adds Two New Top Executives

Prepaid card provider TransCard has hired Arnold Galit, previously with
IKobo, as its VP of Risk and Karl Asplund has been tapped as EVP, Global
Business Development.
Galit was Vice President of Risk and
Compliance for iKobo, Inc. where he was responsible for all aspects of
fraud prevention, security, and risk management. He has held leadership
positions at innovative companies, including Enfotrust Networks and
General Electric—and also established an Atlanta technology startup.
Asplund
has more than 21 years of experience in the payments industry,
including designing, building and marketing payment solutions for
issuers and acquirers across ATM, POS, and Internet platforms. Most
recently, Karl negotiated and secured funding for more than $30 billion
in petroleum and mining contracts in Latin America and Europe. He has
worked on international banking, dynamic currency exchange and
multi-currency processing for five years, while chairing new product
development at Paymentech and agent banking at Intuit Processing Solutions.

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Western States Acquirers Board Adds Two

The Western States Acquirers Association has added Greg
Gumbinger of First Data and David Sharp of Pay Simple to its Board of Directors. Gumbinger
will be taking the position of Secretary and Sharp comes on as a
Member of the board. The previous secretary,
WSAA founder and Past President, Sherry Friedrichsen will remain as
a consultant. The Western States Acquirers Association is a not-for-profit, non
membership organization dedicated to creating an independent forum
explicitly designed for the purpose of educating, networking and helping
to create an environment of solidarity within the merchant bankcard
acquiring field. Attendees are defined as Financial Institutions, Independent Sales
Organizations, or Individuals that primarily sell acquiring related
services directly to the Retail Industry.

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Gen Y Looks to Credit Cards as Backup

A recent survey by employee benefit provider Unum reveals that 16% of “Gen Y” workers without disability insurance will need to borrow from credit cards. Unum’s survey of the two largest generations in the workforce reveals that, among generation “Y” workers (ages 18-30) who do not have disability coverage with 39% say relying on savings would be one of their two likeliest options if they could not work; 33% say borrowing from friends or family would be a likely source of income and 18% aren’t sure how they would get by. Among employed baby boomers (ages 44-62) who do not have disability coverage, 49% say relying on savings would be one of their two likeliest options if they could not work, 40% say a partner’s earnings would be a likely source of
income and 15% aren’t sure how they would get by.

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Rainmaker Enhances Accelerated Analytics

Data warehouse provider The Rainmaker Group has enhanced
“Accelerated Analytics” data sharing and analysis capabilities for retailers. “Accelerated Analytics” is a comprehensive, web-based service for collecting, analyzing and reporting on EDI 852 and POS data that enables retailers to better collaborate with their
vendors and share data more quickly, easily and on a more timely basis.
This allows retailers to not only better understand what is happening at
the store-level, but also proactively respond to maximize opportunities
and improve sales performance. Pre-configured reports and flexible, ad-hoc analysis tools provide one-click access to item and store-level analysis. The service is vendor-funded and does not require any investments in technology infrastructure or software.

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Charge-Offs and Delinquency Set New Records

Performance among credit card-backed securities deteriorated again in March as the charge-off rate and the delinquency rate increased to its highest level ever. As a result the charge-off rate index is expected to peak in the second quarter of 2010 at about 12%. According to “Moody’s Credit Card Index” charge-offs for March hit 9.30%, compared to 8.82% in the prior month. Delinquency rose to 6.40% compared to 6.14% in February. Other performance metrics improved. The yield index increased for the third consecutive month in March to 18.25%, aided in large part by card companies’ proactive measures to bolster the yield of their respective trusts. Also, as expected, the payment rate index bounced back from last month’s low rate to 16.46% in March. This improvement was mostly attributable to the technical issues related to the number of collection days in the relatively short month of February rather than any fundamental improvement in obligor payment behavior.

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Card Generator LeadPoint Has a Big Q1

Los Angeles-based online lead generator LeadPoint reports a 70% revenue
increase for Q1, due in large measure to “Voice Direct” lead transactions.
LeadPoint’s Voice Direct leads deliver buyers
interested consumers who call toll-free numbers to inquire about
receiving an advertised service. Buyers place weekly orders in advance
enabling direct marketers to plan their media purchases to match
marketplace demand. Buyers are able to access these leads without the
commitment of creating their own commercials or bearing the upfront risk
of purchasing media. Demand for Voice Direct leads has grown so rapidly
that LeadPoint has
established waiting lists for lead buyers in both its Credit Card Debt
and Tax Debt products.

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Revolving Credit Predicted to Fall in 2009

A new report predicts that revolving debt has finally leveled off after 40 years of continuous growth and 2009 will be the first year when total revolving debt decreases, due to tighter credit, rising unemployment and a less confident consumer. A new report released from TowerGroup indicates that the credit card crisis is due to outdated
models used to measure risk. The report, “After Boom and Bust: Navigating the Credit Card Industry into the Next Economic Cycle,” examines the card issuers and the standard measurements in place such as credit scores often neglect to examine the big picture of consumers’ creditworthiness realistically. To measure credit portfolios successfully, issuers must take a more holistic view of their customers, looking not only at their credit scores but also their past payment history, credit line management, debt burden, cross-sale potential and the duration of the customer relationship. After considering these factors, an issuer must utilize a methodology that parses its consumer accounts into retention, modification and exit categories, based on the cardholders’ profile results.

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Retail Credit Cards Feb Charge-Offs Top 12%

Among prime credit card asset-backed securities the average monthly payment rate declined 137 basis points in February to 15.78%. Portfolio yields improved to 16.83% from 16.00%. Retail credit cards showed similar trends for the February collection month. According to Fitch’s “Retail Cards Index,” the gross yield for February jumped 384 basis points over the prior month. The gross charge-offs registered a record high of 12.31% in February, surpassing the last record reading of 12.25% set in December 2004. The “Monthly Payment Rate Index” for retail cards continued to trend down and stood at 12.95% in February. It was, however, 13% lower than the same period a year earlier.

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AmEx to Target Northwest Airline Customers

American Express has introduced new features to its “Delta SkyMiles Credit Cards” and is set to launch a new marketing campaign for former Northwest hubs. The cards enable cardholders to earn and redeem
miles in more ways and places, including the ability to earn Double Miles on all Delta-and Northwest-operated flights: “Gold” and “Platinum” Delta “SkyMiles” credit cardholders and Delta “Reserve” cardholders, who currently enjoy double miles on virtually every dollar of spend with Delta, can also earn double miles on all purchases made with Delta’s wholly-owned subsidiary, Northwest. Cardholders earn one mile for every eligible dollar of spending everywhere else; redeem for any seat anytime on all Delta-and Northwest-operated flights and redeem for award tickets with no redemption fees: American Express is waiving fees associated with award ticket redemptions on all Delta-and Northwest-operated flight and is launching a “Switch to the Official Card of the World’s Largest Airline” advertising campaign to reinforce the fact that the “Delta SkyMiles Card” is the official, exclusive card of Delta’s “SkyMiles” program within the U.S. and that “WorldPerks” members who wish to continue to combine miles earned from flying with miles earned on co-branded card purchases will need to take action and switch to a “Delta SkyMiles Credit Card”.

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