Element Payment Launches Hosted Payments

AZ-based integrated transaction processing solution provider Element
Payment Services has launched “Hosted Payments” payment solution.
The software vendor’s application is responsible for collecting all of
the non-sensitive data needed to perform a payment transaction, while
Element collects, stores, processes and
transmits all sensitive cardholder data. Software vendors avoid
the hassle and cost of achieving PA-DSS (PABP) compliance because the
“Hosted Payments” solution is integrated with Element’s PCI DSS
compliant “Express Processing Platform”.

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Stress on Card Profits Remains in July

U.S. credit card return on average assets has dipped to its lowest
level in three years. In July, the ROAA dropped 35 basis points from the
start of the year and is now down 58 basis points from one-year ago.
According to CardData (www.carddata.com), the July ROAA declined to
2.00%, compared to 2.02% in the prior month. FitchRatings reported
yesterday that the monthly payment rate and charge-off rate, among U.S.
credit card ABS, remained negative in July while yield, delinquency and
excess spread are improving. The three-month average for charge-offs
remains at 6.3% while the monthly payment rate has declined to 19.1%.

Credit Card ROAA
Jan 08: 2.35%
Feb 08: 2.21%
Mar 08: 2.16%
Apr 08: 2.20%
May 08: 2.15%
Jun 08: 2.02%
Jul 08: 2.00%
Source: CardData (www.carddata.com)

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Amazon Introduces AGC On Demand

Amazon.com’s ACI Gift Cards has launched “Amazon Gift Codes On
Demand”, a real-time electronic gift-card distribution
option. With AGC On Demand, gift codes are created individually in
virtually any denomination and can be immediately issued in almost any
format — based on the client’s preference — including e-mail, HTML,
customized/co-branded cards and paper receipts. Companies are
able to reduce physical gift-card fulfillment overhead and secured
facilities for storage while providing
gift card recipients with a customized experience and instant
gratification.

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Credit Card Delinquency Stabilizes in July

Credit card delinquency (30 days only) has not exploded as some
expected, but rather is up a mere five basis points from last month and
up 51 basis points from last year. The overall delinquency rate hit
5.57% in July, up seven basis points from last month and up 90 basis
points from July 2007. According to CardData (www.carddata.com), the
30-day delinquency rate for July was 2.53%, the 60-day delinquency rate
for July was 1.30%, the 90-day delinquency rate for July was 0.79%, and
the 120-day delinquency rate for July was 0.95%. Capital One reported
that U.S. Card delinquency edged up in July by 11 basis points, and is
now up 22 basis points over year ago levels.

30 Day Delinquency
Feb 08: 2.43%
Mar 08: 2.46%
Apr 08: 2.48%
May 08: 2.52%
Jun 08: 2.48%
Jul 08: 2.53%
Source: CardData (www.carddata.com)

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U.K. Credit Card ABS Improves in July

The “Monthly Payment Rate” and the “Yield” for credit card-backed
securities in the U.K. increased significantly in July. “Delinquency”
remained stable for the third consecutive month and “Charge-Offs” also
improved in July. According to FitchRatings, the “Monthly Payment Rate”
increased to 18.60% in July, compared to 17.00% in the prior month.
Fitch also reports that the “Yield” rose to 20.9% in July, compared to
20.2% in June. The Fitch “Charge-Off Index” decreased to 6.5% in July
after hitting 6.9% in June, the highest level in nine months. The Fitch
“Delinquency Index” was flat at 3.7% for July, its highest level since
June 2007. Fitch noted that the buyback of delinquent receivables by Egg
has to some extent distorted the reported performance for the Pillar
trust, artificially increasing the MPR and decreasing charge-offs, which
has had a slight impact on its indices.

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Crimeware-Spreading Web Sites Triple in Q2

Hackers have redoubled efforts over the past year to bypass security
measures with 6,500 detected crimeware-spreading URLs. This figure is up
93% from the previous figure of 3,362 detected crimeware-spreading
website addresses, up 337% from the end of the first quarter, 2007 and
up nearly 86% from the previous record of 3500 in November, 2007. These
findings are in conjunction with figures showing the number of domains
being used to target a specific brand by hosting URLs in phishing
attacks were up from 6682 to 7584 during the same period, according to
CA-based Anti-Phishing Working Group’s (APWG) first quarter survey
conducted March of 2008. The APWG was founded in 2003 as an industry,
law enforcement and government coalition focused on eliminating the
identity theft and fraud made-up of 1,800 companies and government agencies.

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Pendum and U.S. Alliance Inks an ATM Deal

ATM maintenance provider Pendum LLC will provide cash replenishment and
first and second line maintenance services for CA-based U.S. Alliance
Group a provider for POS terminals. Pendum will provide cash
replenishment and first and second line maintenance services for
approximately 90 U.S. Alliance Group ATM’s throughout Tennessee.
U.S. Alliance Group provides equipment, processing, services and
back office software for industry leaders in their respective areas of
expertise and focuses on POS solutions, ATM deployments, remote
deposit/remittance applications, and check cashing solutions.Pendum LLC
is the nation’s largest independent provider of cash
automation solutions, including sales and service of ATMs, kiosks, cash
dispensers and recyclers, and armored cash transport.

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Cardinal Centinel Adds eBillme Option

Alternative payment service eBillme and CardinalCommerce announced new
eCommerce merchants that have
added eBillme as a checkout option using Cardinal Centinel, the
Universal Merchant Platform. The latest merchants to offer eBillme
online and in the call center through Cardinal Centinel include:
eImprovement.com’s network of stores that include eFaucets.com and
LightingCatalog.com, Comp-U-Plus and CyberPower. Through eBillme,
merchants can now offer their customers promotions, including money back
savings and the eBillme Gas Card Promotion for first-time eBillme
customers to receive free $10 or $20 gas cards with qualified purchases
at participating merchants.

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CUP & CITI

The TSYS and China UnionPay joint venture, China UnionPay Data
Services, has signed a multi-year debit card processing agreement
with Citibank China for undisclosed terms. The Citi China CUP-standard
debit card can be used at all China UnionPay terminals and Citibank ATMs
in more than 30 countries. Citi China has branches in Beijing, Shanghai,
Guangzhou, Shenzhen, Tianjin, Chengdu, Hangzhou and Dalian, Citi has
operations in more than 100 countries around the world, CUP Data
bankcard processor has over 50 signed credit- and debit-processing
client contracts in which TSYS owns a 44.5% equity stake and to which it
provides outsourced payment services.

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Deluxe to Cut Nearly 600 Jobs; Close 3 Plants

With manual check demand softening and an overall weak economy, check printing king Deluxe Corporation reports it will make several cutbacks. The changes will reduce the Company’s workforce by approximately 570 people. The Company plans to close its Greensboro, North Carolina and North Wales, Pennsylvania, manufacturing facilities and its Thorofare, New Jersey, manufacturing facility and call center.
The North Wales and Thorofare closures are expected to be completed in
the first quarter of 2009, while the Greensboro facility will play a
transitional role and is expected to close later in 2009. The other
employee reductions should be complete by the end of the third quarter of 2009. Deluxe reaffirmed its revenue outlook for 2008 with an estimated range of $367 million to $374 million for the third quarter.

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Harold’s Extends Loyalty Beyond Cards

TX-based Specialty clothing retailer Harold’s Stores has expanded its
“Style
Points” loyalty rewards program and is now open to all customers. In the
past, the rewards program has been reserved exclusively for purchases
made using the Harold’s Wardrobe
Card. Customers will continue to receive a $25 reward for every 500
Style Points earned. This would allow a customer to use any credit card,
one with airline rewards for example, and also have the same purchase
rewarded by Harold’s. Other changes to the program include distributing
rewards via email instead of the mail, which will ultimately allow
customers to receive and redeem their rewards more quickly. Seasonal and
double Style Points opportunities will still allow valued customers to
earn rewards faster during certain times of the year.

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