ADS Proposes Settlement Over Blackstone Merger

Loyalty marketing Alliance Data Systems has entered into a settlement for claims filed subsequent to its May 17, 2007, announcement that it had entered into an Agreement and Plan of Merger to be acquired by Blackstone Capital Partners V L.P., an affiliate of The Blackstone Group. Those cases were consolidated and are now captioned as “In re Alliance Data Corp. Class Action & Derivative Litigation, Case No. 07-4689, 68th Judicial District Court of Dallas County, Texas”. A hearing will be held on July 28 regarding the proposed settlement to settle the claims asserted on behalf of the Settlement Class against Alliance Data Systems Corporation, J. Michael Parks, Bruce K. Anderson, Roger H. Ballou, Lawrence M. Benveniste, D. Keith Cobb, E. Linn Draper, Jr., Kenneth R. Jensen, and Robert A. Minicucci in exchange for additional disclosures provided to ADSC stockholders in a Supplemental Proxy Statement filed with the Securities and Exchange Commission on July 30, 2007 and the payment of reasonable attorney’s fees and expenses to Class Plaintiffs’ Counsel in the amount of $380,000.00.


Javien Powers Visa Compliant Micropayments

VA-based Javien Digital Payment Solutions has announced its new micropayment technology that helps merchants and retailers meet Visa’s online micropayment card transactions guidelines, providing an auditable, provable method of managing online micropayment aggregations. The “Micropay” solution is designed to allow merchants aggregate multiple purchases made by the same consumer to minimize payment processing fees without stepping outside the Visa guidelines. The Visa guidelines restricts Internet merchants to aggregating multiple transactions made by a single consumer to no more than $15, a maximum time period of three calendar days and require the authorization at the start of each aggregation session, the details of which must be disclosed to consumer.


Card Charge-Offs March Upward in April

Bank credit card charge-offs continued to climb in April by 21 basis points hitting its highest level since January 2006. Charge-offs are now up 122 basis points, compared to one-year ago. According to CardData ([][1]) charge-offs hit 5.82% in April, compared to 5.61% in the prior month and 4.60% one-year ago. Earlier this week Moody’s reported that among credit card-backed securities the April charge-off rate rose to 6.27%, up 31% from the rate a year ago, 4.77%. Capital One reported that charge-offs for April were up one basis point, from 6.07% in March to 6.08%. COF expects its U.S. Card managed charge-off rate to be in the low 6% range for the next six months. According to FitchRatings latest report, “prime” charge-offs for March were 5.73% compared to 5.55% in the prior month and 4.36% for March 2007.

Apr 07: 4.60%
May 07: 4.65%
Jun 07: 4.60%
Jul 07: 4.62%
Aug 07: 4.77%
Sep 07: 4.81%
Oct 07: 4.89%
Nov 07: 4.96%
Dec 07: 5.05%
Jan 08: 5.55%
Feb 08: 5.51%
Mar 08: 5.61%
Apr 08: 5.82%
Source: CardData (




MasterCard Europe announced that as of June 21st MasterCard is temporarily repealing its current MasterCard and Maestro intra-EEA cross-border consumer card interchange fees in conformity with the European Commission’s December 19th decision. MCE noted that the decision only applies to intra-EEA cross-border consumer card interchange fees. The level of these fees in the future will depend on the result of MasterCard’s continuing dialogue with the Commission and, ultimately, upon the outcome of MasterCard’s appeal. Moreover the transactions affected amount to less than five percent of MasterCard Europe volume, and it does not anticipate any significant near-term financial impact as a result of today’s action. MasterCard Europe says it has solid legal arguments supporting its appeal of the decision to the European Court of First Instance, and will continue to vigorously pursue that appeal.


ATM & Debit Card Safety Awareness Month

In response to debt card use having grown 14% in 2007, the PULSE debit network has launched its annual “ATM & Debit Card Safety Awareness Month” to offer the customers of its more than 4,500 participating financial institutions with secure ATM/debit card practice information. PULSE, which links cardholders with more than 265,000 ATMs, will be providing lobby brochures, card protectors, deposit envelopes, statement inserts, electronic brochures and Web site links to consumers to provide the useful information. Among this information, PULSE recommends consumers not reply to unsolicited prospecting for personal/financial information, to review financial account statements to verify transactions, report any unauthorized account activity and to closely review disclosures from financial institutions for liabilities and responsibilities. Additional advisement will be issued by PULSE to the institutions throughout the month regarding the protection of PIN/debit card information when conducting in-store, online or phone transactions and how to protect oneself from identity theft/fraud.


Prepaid Specialist nFinanSe Gets More Financing

FL-based prepaid card solution provider nFinanSe has raised $10.7 million through the issuance of 1,417,500 shares of its common stock, 3,937,500 shares of its Series C Convertible Preferred Stock and warrants to purchase 2,677,500 shares of its common stock. This amount includes the exchange of approximately 1,120,000 shares of common stock and 560,000 warrants purchased in March 2008 and May 2008 for $2.8 million, or $2.50 per share. Each share of the Series C Convertible Preferred Stock is convertible into one share of the Company’s common stock. In addition, the Company has closed on its previously announced $15.5 million accounts receivable line of credit with certain institutional investors and shareholders of the Company, including Ballyshannon Partners, LP, an affiliate of one of its directors.


TokenWorks’ Introduces the IDWedge ID Scanner

TokenWorks has introduced its new “IDWedge ID Scanner” which reads the magnetic stripe or 2D barcode from U.S. driver licenses, military IDs, bank payment cards, most Canadian licenses, and automatically fills forms on existing Windows-based applications. The scanner requires no software development, and works with existing PC applications. A simple configuration formula maps field data such as name, address, date of birth, and account number into a customer contact form combined with navigation keystrokes such as Enter, Up/Down arrow and Tab. Within minutes users can start saving time by directly scanning drivers license and credit cards into existing applications.


Chase and Continental Extend Their Card Deal

Chase and Continental Airlines have renewed their Continental Airlines co-branded credit card program. The program offers multiple cards such as the “Presidential Plus” and “TravelBank” cards that provide exceptional travel benefits to cardmembers. Continental Airlines together with Continental Express and Continental Connection has more than 3,100 daily departures with more than 550 additional points are served via SkyTeam alliance airlines.


New Card Market?: Self Service Car Washes

While parking and toll payments via credit/debit cards continues to pick up speed, a new market might be ready for expansion. The new Unitec Electronics “WashPay” credit card payment system has pushed credit card transactions. The solution is geared for self service wash bays. Unitec reports that a small car wash in Texas has increased credit card transactions tenfold since installing the new system in April 2006. Unauthorized transactions have been controlled with the use of 24-hour camera surveillance and pre-authorization. Unitec Electronics is a leading manufacturer of car wash automatic payment systems and bill changers for all segments of the car wash market.

Details Unveils a Reloadable Card

CA-based, the largest movie ticketing service, has introduced its personalized, reloadable gift card for online movie ticket purchases. The new “MovieTickets.card” enables consumers to buy tickets online for movie screens across the U.S., Canada, U.K., Ireland and from any Internet-enabled wireless device or phone. Once the ticket is purchased online, the card holder can then use the card to pick up the tickets onsite or at the box office. The “MovieTickets.card” is targeted toward the younger demographic in response to research concluding, among U.S. consumers, 41% of moviegoers are between the ages of 12 and 24. Formed in 2000, is a joint venture between AMC Entertainment, Hollywood Media, National Amusements, Famous Players, Marcus Theatres, Viacom and America Online. The theater chain group is composed of 125 theaters across the country.