Back-To-School 2008 Volume to Drop-Off

A new survey indicates this will not be a banner year for
back-to-school shopping. Nearly two-thirds of parents surveyed reported
that current economic conditions like rising gas and food prices and
talk of a recession will impact how much they spend on back-to-school
items this year. Capital One has conducted its eighth annual
back-to-school shopping survey of 1,260 parents that also shows 77% of
parents have not planned a back-to-school budget, 76% of parents have
not made a list of back-to-school items, 54% have not discussed the
difference between “needs” vs. “wants” with their child and 60% have not
discussed back-to-school finances at all with their child. Those who
plan to spend over $125 on back-to-school shopping dropped to 45% for
2008, compared to 52% in 2007, and 38% have discussed how much they
would spend on the supplies with their teens. Among the teens surveyed,
69% say all they know about managing money was learned from their
parents, 50% expressed an interest in learning more about managing
money, 76% want to learn about the basics of finance, 76% of teens said
they were interested in learning about financing big purchases, 70% are
interested in learning more about investments and 86% expect their
parents to join them on back-to-school shopping trips.

Details

Global Payments 2Q/08 Revenues Rise 23%

Global Payments reported that second quarter revenues grew 23% to
$343.8 million. GPN says that based on current performance, annual
revenue is predicted to rise $1.675 million this fiscal year. During the
second quarter Online Resources established a multi-year agreement with
GPN subsidiary DolEx to provide bill payment services. Also, GPN and
U.K.-based HSBC Bank created a joint venture to provide payment
processing services to merchants globally under the name HSBC Merchant
Services. During the quarter GPN signed agreements with nine casinos in
the U.S. and Canada to offer “PlayerCash @dvantage” credit and debit
card cash advance services, “VIP Preferred” check-cashing services, and
“ATM Cash @dvantage.” Additionally, GPN secured a five-year, $200
million term loan credit agreement with a syndicate of financial
institutions. Also, during the second quarter, NJ-based United Merchant
Services renewed its payment processing agreements with GPN. For more
details on Global Payments’ second quarter results visit CardData
([www.carddata.com](http://www.carddata.com)). (CF Library 6/18/08; 6/17/08; 6/26/08; 6/25/08;
6/16/08)

GLOBAL PAYMENTS REVENUES
2Q/07: $280.1mm
3Q/07: $311.0mm
4Q/07: $308.8mm
1Q/08: $310.6mm
2Q/08: $343.8mm
Source: CardData (www.carddata.com)

Details

GSA SmartPay Conference Tops 6,500 Attendees

The 10th Annual U.S. General Services Administration GSA
“SmartPay”Training Conference hosted 6,500 government charge card
program coordinators, billing/approving officials and other attendees on
July 22-24, 2008 to provide expert advice on GSA’s government charge
card program of the same name. The training conference is in response to
the newly generated contracts awarded GSA “SmartPay 2” for prepaid,
contactless cards and foreign currency cards to support federal
employees for improved data security. The cards implementing the
“SmartPay 2” platform include travel, fleet and integrated charge cards
which will be transitioned on November 30. Additional contracts awarded
GSA for implementation of the “SmartPay 2” platform include those to
Citibank of Sioux Falls, JPMorgan Chase of New York and U.S. Bancorp of
Minneapolis in June 2007 for a combined estimated value of $260 billion
over 10 years.

Details

INGENICO 2Q/08

Payment terminal manufacturer Ingenico reported second quarter sales of 186 million euros compared to 141 million euros for 2Q/07.
Sales in China were brisk with the acquisition of a 55% stake in Fujian Landi. The Australian market is expected to be weaker after the major effort of migration to EMV in 2007. The Group’s market share has increased following the merger with Sagem and sales have remained stable at a high level in a relatively mature market. In North America sales growth to the banking industry was sluggish, but the buoyant market in Canada made up for slower growth in the U.S. retail market. For complete details on Ingenico’s latest results visit CardData (www.carddata.com).

Details

Canada/Mexico Still Attract US Cardholders

A new travel survey indicates that the devalued U.S. dollar has curtailed international travel except to Canada and Mexico. The Visa survey of U.S. payment cardholders who had traveled outside the U.S. in the past three years, found that 63% are equally or more willing to travel compared with one year ago. And half said they are likely to take a trip abroad in the next 12 months with Canada and Mexico are their most likely destinations outside the 50 states. A review of tourism spending on Visa-branded payment cards between January 1st and December 31st, tourist spending in Canada hit $2.9 billion and Mexico came in at $1.8 billion. The majority of respondents, 73%, cited credit and debit cards as their preferred payment method when making purchases overseas and 94% of travelers are opting for electronic payment based on its convenience.

Details

Postilion Hires a Former ACI Executive

Doug Parr has joined Postilion integrated solutions for self-service
banking and payment processing as General Manager. Bringing with him
over 25 years of experience in financial services, over 18 years of
which were spent at ACI Worldwide most recently as SVP, Parr will be a
valuable addition to the organization in his new role. Postilion is a
division of S1 Corporation and provides its payment and banking
solutions to over 1,500 customers in more than 50 countries through more
than 100,000 ATMs and 500,000 POS terminals worldwide for over 1,250
financial institutions in the U.S. while the S1 Corporation delivers
customer interaction software under S1 Enterprise and FSB Solutions
names, in addition to Postilion.

Details

U.S. Household Debt Straining the Economy

Moody’s “Economy.com” research shows rising U.S. household debt and defaults are straining the economy thanks in part to falling home prices. This is evident with 2.72 million first mortgage loans in default as of end of June 2008, with projections of reaching beyond the 3 million for all of 2008. This compared to a total of 1.5 million in 2007 and 1 million in 2006. Household liabilities in delinquency/default totaled $775 billion by the end June 2008, national house prices were down 16% from their spring 2006 peak, some 9.6 million U.S. homeowners now have mortgage balances that exceed the market value of their home (compared to 4.1 million in 2007 and 2.7 million in 2006) and another 5 million homes are at significant risk of default before 2010. This decline in home value has resulted in increases of credit card use with card receivables up 15% in California, 20% in Florida, and 30% in Nevada. These states happen to be among the highest in falling real estate value.

Details

Bankers Bank Deploys an Endpoint Solution

OK-based Bankers Bank has deployed Endpoint “X9 Express Direct”
processing, providing hosted, Web-based service for “X9.37” check image
exchange. “X9 Express Direct” provides The Bankers Bank, which handles
banking services for over 240 banks throughout the region, with secure,
low-cost point of entry for check image exchange services using its File
Transfer Protocol. Endpoint Exchange provides electronic check image
exchange to the financial services industry to process millions of items
per day while the Bankers Bank provides correspondent services to
regional community banks.

Details

Big Three Issuers’ Q2 Volume Rises a Mere 2%

The nation’s top three general purpose credit card issuers, who collectively control nearly 60% of the U.S. card market based on card loans, posted a 3.4% gain in outstandings and a 2.4% gain in volume for the second quarter, compared to the year ago period. The modest gains pale in comparison to the double digit gains of prior years. Bank of America, Chase and Citibank reported outstandings of $460.9 billion for 2Q/08, compared to $454.6 billion for 2Q/07, according to CardData (www.carddata.com). The top three also posted purchase volume of $238.4 billion for 2Q/08, compared to $232.8 billion one-year ago. BofA reported purchase volume for U.S. consumer and business cards of $61.0 billion for 2Q/08, compared to $56.8 billion for 1Q/08 and $61.3 for 2Q/07. Chase posted second quarter charge volume of $93.6 billion an increase of 6% from 2Q/07. Citi reported that purchase volume for North American cards was flat at $83.8 billion, compared to $83.5 billion for 2Q/07. For the latest issuer statistics for the second quarter visit CardData ([www.carddata.com](http://www.carddata.com)).

Details

Monthly Payment Rates Rise in June by 32BPS

Monthly payment rates, the amount that cardholders pay on their credit card debt, took a turn north in June. The MPR rose 32 basis points between May and June. Among managed credit card outstandings, the MPR increased to 17.86% in June, compared to 17.54% in the prior month and 18.40% one-year ago. The June MPR figure is the second lowest in four years. According to CardData (www.carddata.com), the yield declined in June to 13.77% from 13.85% in May, and was down 116 bps, compared to year-ago levels.

U.S. PORTFOLIO METRICS
YIELD MPR
Jun 07: 14.93% 18.40%
Jul 07: 14.77% 18.30%
Aug 07: 14.80% 18.99%
Sep 07: 14.71% 18.86%
Oct 07: 14.82% 19.21%
Nov 07: 14.80% 18.89%
Dec 07: 14.63% 18.41%
Jan 08: 13.53% 18.11%
Feb 08: 13.33% 19.10%
Mar 08: 13.68% 18.33%
Apr 08: 13.89% 18.03%
May 08: 13.85% 17.54%
Jun 08: 13.77% 17.86%
Source: CardData (www.carddata.com)

Details

OnPoint Community CU & Diebold Seal a Deal

OnPoint Community Credit Union has forged an outsourcing partnership
with Diebold Inc to provide its 186,000 members access to convenient
technologies in the financial industry. Diebold Integrated Services will
provide the credit union with “Opteva” ATMs, first -and second-line
maintenance, armored carrier, network monitoring, ATM and debit card
processing, Diebold “RemoteLink OpteView” services, currency management,
client services, help desk support and the resource to add 30 ATMs by
2011. The OH-based Diebold outsourcing organization employs more than
17,000 associates with representation in nearly 90 countries worldwide
and will be managing the program with OnPoint through a single point of
contact.

Details