Edgar Dunn Snags a Former VISA Exec

Payment consultants Edgar, Dunn has hired Ryan Yuzon, previously with VISA, as Manager. Yuzon held payments industry and consulting positions at Visa, BearingPoint, Andersen, and Risk Management Solutions. In these positions, he addressed strategic business issues regarding new payment products, business lines, investments and divestitures, worked on developing new payment options such as powered cards and personalized photo cards, and managed the creation of complex financial models for leading financial services clients. He holds a BA in Quantitative Economics from Stanford University, and an MBA from MIT’s Sloan School of Management.

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Asset Acceptance Capital Collections Rise

Asset Acceptance Capital reported a 4.6% improvement in cash collections and reduced operating expenses. However, total revenues declined by 4.4% versus the same period last year. The Company posted cash collections of $100.3 million in the first quarter, versus cash collections of $95.9 million in the same period of 2007. Total revenues declined to $64.4 million for the first quarter, compared to total revenues of $67.3 million in 1Q/07. During the first quarter, the Company invested $22.3 million to purchase charged-off consumer debt portfolios with a face value of $548.5 million, representing a blended rate of 4.07% of face value. This compares to the prior-year first quarter, when the Company invested $36.3 million to purchase consumer debt portfolios with a face value of $765.1 million, representing a blended rate of 4.74% of face value. For complete details on Asset Acceptance Capital’s first quarter performance, visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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VOCALINK & IONA

VocaLink has implemented IONA Artix Data Services to reduce costs to its
client banks using the “VocaLink Euro Payment Service” for the migration
to SEPA payment processing standards. In doing so, Artix Data Services
will help VocaLink provide banks a cost effective payments modernization
solutions to support legacy and SEPA standards, providing an alternative
to the proprietary and centralized based approach of other integration
vendors with an open and standards-based development tool. VocaLink
automated payment platform processes over 90 million transactions daily
and over half a billion in a month with its platform network of over
60,000 ATMs while IONA Technologies provides high-performance
integration solutions for financial institutions around the world and is
headquartered in Ireland.

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Advanta Card Portfolio Stays Flat in Q1

Advanta reported first quarter net income of $18.4 million. Managed and owned net credit losses for the quarter were 6.43% and 6.53%, respectively. Managed receivables ended the quarter at $6.3 billion while owned receivables totaled almost $1.0 billion. New customers added were just over 67,000, and transaction volume was $3.4 billion. For complete details on Advanta’s first quarter performance, visit CardData ([www.carddata.com][1]).

ADVANTA’S CARD PORTFOLIO SNAPSHOT
Period Card Loans
1Q/07: $5.59 billion
2Q/07: $5.99 billion
3Q/07: $6.21 billion
4Q/07: $6.35 billion
1Q/08: $6.35 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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Obopay Lands a FDC Exec as President

Payment services provider Obopay has hired Gregory Holmes, previously with First Data, as President. Holmes brings to Obopay 20 years of expertise in the payments industry. Prior to Obopay, he served as Senior Vice President of First Data Corporation, where he headed the Premier National Merchant Services team for the company’s largest customers. Holmes also served in senior management roles at First Data Merchant Services, Chase Merchant Services and Visa U.S.A.

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CyberSource’s Revenues Soar in 1Q/08

CyberSource posted record first quarter revenue of $53.4 million, a 141% increase. The first quarter included a full quarter of Authorize.Net results,as the acquisition closed on November 1, 2007. During the first quarter, CyberSource processed a record 445 million billable transactions, a 68% increase over the same period the over previous year, up 7% from the fourth quarter of 2007. The value of transactions processed was $26.6 billion, a 153% increase over 1Q/07. Also, CyberSource signed a record of approximately 25,000 new customers in the quarter increasing the customer base to approximately 237,000. For complete details on CyberSource’s first quarter performance, visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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Wright Express Revenues Rise 29% in Q1

Fuel card specialist Wright Express posted first quarter revenue of $92.9 million a 29% increase over 1Q/07. Total MasterCard purchase volume grew 36% to $525.7 million for the comparable period in 2007. Average expenditure per payment processing transaction increased 33% to $65.49 from $49.32 for the same period last year. Average retail fuel price increased 34% to $3.26 per gallon, from $2.43 per gallon for the first quarter a year ago. Total fuel transactions processed increased 8% from the first quarter to 64.8 million. Payment processing transactions increased 5% to 53.2 million, and transaction processing transactions increased 23% to 11.6 million. For complete details on Wright Express’ first quarter performance, visit CardData ([www.carddata.com][1]).

WRIGHT EXPRESS HISTORICAL
1Q/07: $72 million
2Q/07: $86 million
3Q/07: $88 million
4Q/07: $91 million
1Q/08: $93 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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ProQuo Survey Shows Security Concerns

Consumer advocate ProQuo has commission a survey that indicates while 83% of consumers agree that personal information security is a priority, more than 50% are not aware of potential risks. The survey’s review of 12 everyday activities reveals a startling lack of awareness over how seemingly innocuous activities, such as entering a sweepstakes or filling out a warranty card, can actually compromise the security of personal information, including a person’s name, contact details, income and credit history, indicating a significant gap in understanding what could put people at risk for the unauthorized usage or sharing of their personal information, which can lead to greater junk mail volume, increased profiling without consent, and greater exposure to identity theft. Eighty-seven percent of adults believe their personal information, such as name, address, email, age, income, credit rating and purchasing preferences, are only somewhat, slightly, or not at all secure; 26% are not aware that providing their personal information to a web site without reviewing its privacy policy can lead to their information being used or shared without their permission; 38% requested information about a product or service they saw online and 47% have completed and returned a warranty or product registration card in the past six months.

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PAYEASE/CYBERSOURCE SOLUTIONS

eCommerce solutions are met with an impasse when attempting penetration
to the growing Chinese market given, rather than credit cards, most
consumers have Chinese debit cards provided through over 20 different
key banks across the country and is with what eCommerce brands and
merchant solutions need be integrated. Posing an issue for the consumers
and merchants alike, CyberSource and PayEase have collaborated to
address these challenges with cost-effective access to online payment
vehicles, support for the Chinese credit/debit cards and assistance to
foreign companies in navigating regulatory/licensing requirements. The
partnership also provides merchants with tax calculation for Chinese
value-added tax, recognition of the Chinese language character set and
the automation of acceptance/rejection of orders. CyberSource
Professional Services provides 228,000 businesses with its electronic
payment and risk management solutions while PayEase payment & loyalty
marketing
service provider supports over 65 different types of debit cards and 4
international credit cards.

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VISA Payment Volume Jumps 19% to $681 billion

VISA reported GAAP net income for the quarter was $314 million. Net operating revenue in the quarter was $1.5 billion. For the period ending December 31st, VISA’s operational performance highlights include: payments volume grew 19% over the prior year to $681 billion; total volume, inclusive of cash volume was $1.1 trillion, an increase of 21% over the prior year; total cards carrying the VISA brands rose 16% worldwide to 1.6 billion over the prior year; and total payment transactions increased by 16% over the prior year to 11 billion. VISA’s financial outlook over the next three years includes the following metrics: annual net revenue growth of 11% to 15%; annual adjusted operating margin (adjusted earnings before interest and taxes) in the low 40% range; annual adjusted diluted class A common earnings per share growth of 20% or greater; and annual free cash flow (cash flow from operations plus cash reimbursements from litigation escrow less capital spending) in excess of $1 billion. For complete details on VISA’s latest performance visit CardData ([www.carddata.com][1])

VISANET TRANSACTIONS (millions)
Mar 31, 2008 8,800
Dec 31, 2007 9,094
Sep 30, 2007 8,645
Jun 30, 2007 8,411
Mar 31, 2007 7,645
Dec 31, 2006 8,018
Sep 30, 2006 7,722
Jun 30, 2006 7,441
Mar 31, 2006 6,828
Dec 31, 2005 7,212
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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YEAR OF THE RAT CONTEST

For its “Year of the Rat Contest,” the BMO Bank of Montreal has awarded
Brian LePage and Josephine Chow with 8,888 AIR MILES Reward Miles for
travel to select Asian locations. The contest offering these round trip
flights to China was provided by BMO branches in the Greater Toronto and
Greater Vancouver areas in celebration of the Chinese New Year and the
Year of the Rat, open to all customers between February 7 and March 7,
2008. BMO is also offering the 9 million AIR MILES collectors in Canada
the opportunity to collect AIR MILES reward miles whenever they conduct
transactions with the BMO Bank of Montreal debit card, providing 800
reward/travel options.

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MasterCard 1Q/08 Net Revenue Rise 29%

MasterCard reported first quarter net income of $398 million. Worldwide purchase volume during the quarter rose 15%, on a local currency basis, versus 1Q/07, to $453 billion, driven by increased cardholder spending on a growing number of MasterCard cards. Total operating expenses increased 11%, to $666 million, during the first quarter of 2008 compared to the same period in 2007. Growth in MasterCard’s gross dollar volume increased 14% to $611 billion; also there was a 15.7% increase in the number of transactions processed, to 4.9 billion; plus an increase in cross-border volumes of 23.6%. For complete details on MasterCard’s latest performance visit CardData ([www.carddata.com][1])

[1]: http://www.carddata.com

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