VeriFone’s Quarterly Revenues Soar 57%

VeriFone reported that its net revenue for the quarter ended July 31st surged 57% to $231.9 million, largely driven by the Lipman acquisition. Net revenues from VeriFone’s International business increased 106% while net revenues from its North America business increased 22%. During the quarter, VeriFone signed more than 5,000 New York City taxicabs to comprehensive multi-year agreements for in-taxi acceptance of credit cards. Also, the TJX Companies rolled-out the “MX 870” to the entire enterprise; Rent-A-Center chose the new “MX 850” system to provide debit and credit functionality to all of their stores; and the “MX 870” was also selected by Bon-Ton Department Stores. Internationally, VeriFone was selected as the sole provider of payment solutions to China Postal Savings bank and Cara, the largest operator of full service restaurants in Canada, selected VeriFone’s “ON THE SPOT” pay at the table system designed exclusively for the hospitality industry. VeriFone raised its next quarter internal expectations for net revenue to $231 – $233 million. For complete details on VeriFone’s latest performance, visit CardData ([www.carddata.com][1]).

REVENUE HISTORICAL
2Q/05: $125.7 million
3Q/05: $130.5 million
4Q/05: $134.6 million
1Q/06: $142.2 million
2Q/06: $147.6 million
3Q/06: $156.6 million
4Q/06: $216.6 million
1Q/07: $217.2 million
2Q/07: $231.9 million
Source: CardData (www.carddata.com)

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

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RED & VIRGIN

Retail Decisions (ReD) & Virgin Mobile have extended contracts with
the provision of ReD card fraud detection and the processing of 15 million
Virgin Mobile payments annually. ReD will process payments for Virgin
Mobile’s call center, Internet and IVR. Based on ReD statistics, there was
a 50% rise in attempts at card fraud between 2005 and 2006,
58% of the criminals are less likely to attempt fraud with the same
merchant
after an initial failed attempt, and New Years Eve 2006 reflected
the most fraudulent day on record for pre-paid card fraud with a 110%
increase over a typical Sunday. With 19 years experience in the fraud
prevention market, ReD serves blue-chip international clients from a
variety of industries. Virgin mobile phones are available at 5,000 outlets,
employs approximately 1,700 staff at three sites, and has an outsourced
customer service center operated by approximately 200 staff in
Middlesbrough.

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Median Graduate Student Card Debt Up 3.9%

A new study has found that the average outstanding balance on credit cards held by graduate students increased 10% since 2003 to $8,612 and that the median credit card debt among this group has grown less than 4% to $3,874. On average, older graduate students (aged 30-59) carry $12,593 in credit card debt, almost twice as much credit card debt as their younger counterparts (aged 22-29) who carry an average debt of $6,479. The figures come from a new study released by Nellie Mae. The research also showed that 92% of graduate students have at least one credit card. This is a 4% decrease from the 96% who had credit cards in 2003. The study also revealed that the average amount of money put on credit cards for all direct education costs (tuition, room and board, textbooks, school supplies, transportation) was $2,820, with 10% of the group charging $7,000 or more. Only 6% of respondents did not use credit cards at all for a direct education expense. The study is Nellie Mae’s sixth in a series conducted since 1998.

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MAXAFFAIRES

Laurentian Bank has launched the “VISA Business” and “VISA Business
Performance”, providing cardholders with a 28-day payment term, an
annual management report, insurance that covers cardholders against
public transport vehicle accident, rental vehicle collision and damages,
purchase insurance and extended warranties. The “VISA Business
Performance” card additionally offers a 0.75% cash back for all
purchases, includes travel insurance coverage for lost luggage, trip
cancellation/interruption, and medical care outside Quebec and Canada.
These new cards add to Laurentian Bank’s MAXAFFAIRES commercial
banking services, which offer businesses access to personalized service
and a competitive product line. MAXAFFAIRES services are offered
through 29 commercial Banking Centres, including 22 in Quebec, and 158
bank branches.

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Diebold Intros Outsourcing Assessment Center

Diebold has launched the “Outsourcing Assessment Center,” an interactive tool that allows financial institutions to evaluate their current ATM channel against industry standards to learn how outsourcing can positively impact their bottom lines. The Assessment Center is self-driven, walking visitors through three simple questions designed to stimulate discussion about the time and resources dedicated to managing the ATM channel. Visitors can evaluate the resources of their ATM network, current operating environment, and activities and costs associated with the network. Diebold Integrated Services solutions are designed to promote cost savings, realize cost certainty and service consistency for financial institutions, allowing them to concentrate on customers.

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WaMu and Cardtronics in a TX ATM Deal

WaMu has inked an agreement with Cardtronics to place 310 branded ATMs in CVS/pharmacy stores in the Texas metropolitan areas of Dallas/Fort Worth, Houston, San Antonio and Austin. WaMu has 247 branches in Texas. This expansion through CVS/pharmacy brings the total number of ATMs in Texas at which WaMu customers can make fee-free withdrawals to 670, including 282 in Houston, 273 in Dallas/Fort Worth, 63 in San Antonio and 52 in Austin. At June 30, 2007, WaMu and its subsidiaries had assets of $312.22 billion. Cardtronics is the world’s largest owner/operator of ATMs with more than 31,000 locations.

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AmEx Adds Two Luxury Brands to First Collection

American Express has added Gucci and Salvatore Ferragamo to “First Collection” for its “Platinum Card” and “Centurion Card” members enrolled in the “Membership Rewards First” program. Membership Rewards First is exclusively available for Platinum Card and Centurion Card members. Card members earn one point for virtually every dollar they spend on the Card, which they may redeem for hundreds of rewards across popular categories including retail, travel, dining and entertainment, experiences, and charitable donations. First Collection features 24 partners that offer an exclusive and rich array of more than 120 different luxury rewards in the categories of lifestyle, jewelry and watches, travel, fashion and premium wines. In addition to Gucci and Salvatore Ferragamo, other First Collection partners include Baccarat, Bergdorf Goodman, Chopard, Davidoff Cigars and Accessories, Eos Airlines, Ermenegildo Zegna, Premier Cru Bordeaux Wines, IWC, Lamborghini, Mikimoto, Monarch Billiards, Montegrappa writing instruments, Neiman Marcus, Oberoi Hotels & Resorts, Pebble Beach Resorts, Piaget, Raffles Hotels & Resorts, Relais & Chateaux’s Relais Gourmands Restaurants, The Ritz-Carlton, Steinway & Sons, and Tiffany & Co.

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Apollo to Add Green Dot Network & Products

CA-based Apollo Enterprise Solutions and Green Dot have entered into a strategic partnership to provide Apollo’s commercial clients with access to the “Green Dot Network”, a retail based cash acceptance network. With the Apollo relationship, Green Dot significantly expands the MoneyPak capabilities within the bill payment category. Utilizing a MoneyPak, consumers will be able to make payments on their accounts with Apollo clients through a payment gateway between Apollo’s web-based Intelligent Debt Solutions payment and collection system, which facilitates debtor self-payment and self-settlement, and the Green Dot Network. Apollo’s clients include primary creditors, collection agencies, debt buyers and legal recovery firms. Apollo clients will be able to provide individual payers with a convenient cash payment method using “Green Dot MoneyPak” universal acceptance product. “MoneyPak” is the leading product for loading cash onto prepaid cards, and can be used to make payments and add cash to accounts, available at more than 40,000 retailers nationwide, including Wal-Mart, Walgreens, CVS/Pharmacy, Rite Aid, Radio Shack and Kroger. Apollo Enterprise Solutions is a provider of web-hosted solutions for a variety of industries involved in receivables management and debt collections. Green Dot Corporation is a leading provider of retail-based financial services for America’s underserved community.

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Credit Card ABS Remains Fairly Stable

Despite a rise in delinquencies and charge-off rates in both prime and sub-prime segments year-over year, credit card ABS portfolio performance has remained generally stable. Rising personal bankruptcies are one of the primary reasons for higher delinquencies and losses on credit cards. Fitch Ratings says that significant liquidity constraints and deteriorating credit fundamentals in the sub-prime mortgage market have yet to make a meaningful dent in the rating performance of U.S. consumer ABS. However, over time there will be a modest deterioration in the performance of credit card, auto and student loan collateral due to increasing economic pressures. Fitch expects a slowdown in consumer spending as falling home prices, higher borrowing costs and volatile energy prices cause households to refrain from making big-ticket purchases.

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JCB Launches its Contactless J/Speedy

JCB and Union Bank of Taiwan have launched the first card with “J/Speedy” in the world. “J/Speedy” is JCB’s global standardized contactless payment solution. Union Bank is issuing the “Breeze Center JCB Card with the J/Speedy.” Union Bank has been issuing JCB cards and acquiring JCB card acceptance locations in Taiwan since 2002, and started issuing the “Breeze Center JCB Card” with the country’s most popular shopping mall in 2002. JCB and JCBI will continue promoting the “J/Speedy” contactless payment program in Taiwan and the rest of Asia, a market that has already seen the introduction of multiple international brand contactless payment programs, expanding both issuing of JCB brand cards with “J/Speedy” and merchant acceptance. In Japan, JCB rolled out the “QUICPay” contactless payment product in April 2005 based on Sony’s “FeliCa” chip specification, which is widely employed for contactless payment solutions such as public transportation fare systems and mobile phone applications in Japan.

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JULY DELINQUENCY

Credit card delinquency (60+ days) hit a twelve-month low in July and
has dropped for the fourth consecutive month. For July, delinquency in
the U.K. dipped to 3.6%, compared to 3.7% in the prior month and 3.8%
one-year ago. According to FitchRatings, delinquency reached a
historical high in April 2007 of 4.1%. Also, the “Fitch Charge-Off
Index” remained relatively stable in July, having dropped only 10 basis
points from the previous month, to 7.2%. The Fitch monthly payment rate
index grew to 18.5% in July, a month-on-month increase of 130 basis points.

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Consumer Confidence Takes a Ride in Aug

During August the number of consumers who said the economy was worsening increased from 58% to 62%. However, consumers remained relatively upbeat about their personal finances, rating them much higher than they rated the economy. According to the “Discover Consumer Spending Confidence Monitor”, consumer confidence hit a high of 96.8 the week ending August 8th, a low of 92.5 for the week ending August 15th and stood at 94.5 for the last week of the month. Sixty-five percent rated the economy as fair or poor. But, the outlook on the economy didn’t appear to slow spending in August as 84% of consumers said they spent the same or more than they did last month and 82% are expecting to spend the same or more next month. Just over 30% of consumers are expecting to spend more in the next month. This represents a 25% drop since the “Monitor’s” inception four months ago.

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