Prepaid card provider SmartCard Marketing Systems has entered into an ISO agreement with TX-based Payment Data Systems to market payment processing services. This agreement is an expansion from the initial private label, open-loop debit card agreement between the two companies signed in March 2007. The first card program, a corporate promotion card for incentives, premiums and loyalty reward distribution, was successfully launched in September 2007. Payment Data Systems is an integrated payment solutions provider to merchants and billers.Details
USA Technologies has announced that it has purchased more than 2,000 ViVOtech NFC card readers its “e-Port” contactless technology in vending machines. ViVOtech s following up with another order of 8,000 to be delivered in 2008. These readers accept all major credit cards, both magnetic swipe and contactless NFC cards. USA Technologies provides networked credit card and other non-cash systems in the vending, commercial laundry, hospitality and digital imaging industries.Details
BB&T Bankcard Corporation’s 1.1 million credit card accounts have been successfully converted to the Fidelity National Information Services platform. FIS is now processing all transactions for credit cards issued by BB&T Bankcard Corporation, a wholly owned subsidiary of BB&T Corporation. The 10-month conversion project involved extensive planning and cooperation between BB&T and FIS, and included the introduction of expanded product functionality and greater operating efficiencies.Details
Payment processor US Dataworks and Hyundai Syscomm have terminated their Software Integration and Resale Agreement due to “timing differences”. Hyundai will return the 6.1 million shares of the Company’s common stock, which has been held in escrow, and will no longer be entitled to receive any warrants to purchase shares of the Company’s common stock. The Company plans to retire the returned shares, which shall have an accretive effect on the remaining shares outstanding and as a condition of the nullification, each party will no longer have any duties or obligations ascribed to the Resale and Purchase Agreements.Details
Litigation between TJX and several banks and bankers associations has been settled over damages resulting from a TJX security breach disclosed earlier this year. The settlement involved the Massachusetts Bankers Association, Connecticut Bankers Association, and the Maine Association of Community Banks, together with Eagle Bank, Saugusbank, and Collinsville Savings Society. TJX has agreed to reimburse the settling plaintiffs for a negotiated portion of the costs and expenses that they incurred in the case. The bankers associations are also recommending that their member banks which are VISA issuers to accept the “VISA Alternative Recovery Offer.” Through that offer, TJX has agreed to fund up to $40.9 million in payments to VISA issuing banks which may have suffered damages as a result of the data breach. TJX created a $107 million reserve in the second quarter to cover settlements in the case.Details
Following yesterday’s decision by the European Commission to restrict MasterCard Europe’s cross-border interchange fees, U.S. merchants are jumping on the news to bolster their efforts to lower U.S. interchange rates. The National Retail Federation says European authorities are telling MasterCard it is double dipping in Europe and driving up costs for consumers as well as retailers. The NRF suggests that authorities in the U.S. should take the European ruling as a signal that it’s time to bring the same relief to U.S. consumers. The Merchants Payments Coalition says that American consumers and merchants pay more than twice as much as Europeans, and that such fees in the U.S. are out of proportion to the amount that would be paid in a competitive market. MasterCard Europe said it is appealing yesterday’s EU decision based on its firm conviction that market forces, not regulation, should drive key decisions such as the setting of interchange fees and retailers’ choices over which forms of payment to accept. MasterCard cites the experience in Australia, the only other jurisdiction in the world to regulate interchange fees, where consumers have ended up paying more for credit cards and receiving fewer benefits and less choice. (CF Library 12/19/07)Details
Target says the initiative to unload all or part of its credit card portfolio is taking longer than expected. Blaming current market conditions, Target says it now plans to announce a decision in the first calendar quarter. Last month Target reported that its pre-tax credit card profits for the quarter ending November 3rd increased 17% over the year-ago quarter. Target reported that its total credit card receivables, which include its VISA and “Guest” cards (together known as “REDcards”), were $7.652 billion as of November 3rd, compared to $6.906 billion for 2Q/07 and $6.148 billion one-year ago. For complete details on Target’s latest performance, visit CardData (www.carddata.com).Details
Discover Financial Services reported this morning pre-tax U.S. credit card profits of $327.5 million for 4Q/07, a 43% increase over the year ago quarter, but down 4% sequentially. The Company also reported an overall loss of $84 million due to impairment charges related to its U.K. “Goldfish” business. U.S. managed loans rose 5% year-on-year to $48.2 billion. U.S. credit card sales volume rose 6% to $22.6 billion. The managed U.S. credit card net charge-off rate rose to 3.84%, 14 basis points higher than the third quarter. The managed U.S. credit card 30+ day delinquency rate was 3.59%, up 43 basis points from last quarter’s level. The firm also reported that transaction volume across the Discover and PULSE Networks rose 14% over last year. Discover says its U.S. card business was driven by growth in sales volume and receivables, strong credit results and improved revenues and operating efficiencies. In its “Third-Party Payments” segment, Discover’s network volume reached almost $25 billion in the quarter, an increase of 28%. For complete details on Discover’s fourth quarter performance, visit CardData ([www.carddata.com]).
Hypercom is in final negotiations to acquire the e-Transactions
business line of Thales. The Company also announced the promotion of
Philippe Tartavull to CEO from COO. Under terms of the Thales deal
Hypercom would purchase the French firm’s e-Transaction business line
for $120 million in cash with a potential earn out of up to $30 million.
Thales Group’s Security Solutions & Services Division posted
consolidated revenues for the first three quarters of 2007 of $142
million. The proposed combination would represent the third largest
global provider of electronic payment solutions and services. Hypercom
said it plans to finance the transaction with $60 million of the
Company’s existing cash on hand, combined with a $60 million investment
from Francisco Partners. Meanwhile, Hypercom confirmed that Tartavull
will now serve as CEO and President and member of the Board. Norman
Stout has been elected Chairman of the Board, replacing Daniel Diethelm
who will remain as a member of the Board. Johann Dreyer, CEO and
Director of S1 Corporation, has been appointed to the Board. Upon the
closing of the Thales deal, Keith Geeslin, Partner of Francisco
Partners, and Jack McDonnell, Jr., retired Chairman, CEO and founder of
TNS, are expected to be appointed to the Hypercom Board.
TN-based Transcard has appointed John Ainsworth, previously with Mastercard, as President of Stored-Value Processor. Prior to joining Transcard, he served as senior business leader with MasterCard Worldwide. His seasoned background includes over 15 years of executive sales and management experience with leading financial organizations such as SunTrust Bank, Visa International, and BlueTarp Financial. TN-based Transcard offers electronic funds transfer services including direct-to-card payroll technology, electronic fuel and transaction processing, asset management services, and research and development of technology services.Details
The country’s largest online payment service with 56 million users is being expanded to facilitate consumer purchases directly from U.S. retailers. Hangzhou-based Alipay, with a market share of over 54% among Mainland Chinese, is teaming with New York-based Philliou
Selwanes Partners to promote its third-party online payment platform to North American merchants. Alipay is growing at a rate of more than 80,000 new registered users each day. The Company’s average daily transaction volume exceeds US$23 million handling an average of nearly 1.2 million each day. According to Research International the two kinds of U.S. products that attract the most purchase interest from the Chinese are cultural-related products and high-tech ones ÃÂ¢ÃÂ that is, books/music/video and consumer electronics. Specifically, laptops, video/digital recording systems, VCD/DVDs and CDs have great market potential in China. Research International found that Beijing and Shanghai favor imported books/music/videos the most; Shanghai consumers have the greatest interest in consumer electronics and apparel/fashion accessories among 6 cities; and home appliances are more attractive in Guangzhou than in other cities.
Germanwings “no-frills” airline has signed agreements to make available
the GuestLogix “Mobile Virtual Store” to its in-flight passengers.
Existing comparable airlines with similar retail solutions include
Ryanair, easyJet, TUIfly and SkyEurope. These airline have generated
USD$593 million from non-ticked sales, a good indication that the
Germanwings-GuestLogix partnership will maximize the airline’s revenue and
profitability. The GuestLogix Mobile Virtual Store, along with LSG Sky
Chefs services, are available on 450 million passenger trips annually and
allow for purchases of in-flight entertainment, food and beverage,
merchandising, duty-free sales, business communications systems and