IDT Names Oppenheimer as CFO

NJ-based phone card specialist IDT Corporation has named Marc Oppenheimer as EVP/CFO and Treasurer. Prior to this new appointment, Oppenheimer has been the Lead Independent Director of IDT’s Board of Directors since December 2006 and the financial expert of the Audit Committee of IDT’s board since April of 2006. He has also served as the Chairman of the Audit Committee and Director of Net2Phone. His financial expertise includes being President of Octagon Associates, Inc., a merchant banking and financial/strategic advisory firm. Until mid-2006, he was Executive Vice President of Kenmar Global Investment Management, Inc., and a Managing Director of Kenmar-Nihon Venture Capital. Oppenheimer started his financial career as a Credit Officer at The Chase Manhattan Bank, N.A. specializing in international lending and commodity financing. He also served as the Director of Trade and Merchant Banking for Midlantic National Bank, an institution with assets of $29 billion. Oppenheimer has a B.S. with Honors in Management and Industrial Relations from New York University as well as an MBA with Honors in Finance from New York University.

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PPI Promotes Myers to COO

Payment Processing Incorporated has promoted Eddie Myers to president and COO from EVP/GM. In his new role, Myers will oversee client implementations support, merchant sales, human resources and facility management. Prior to joining PPI, Myers worked at Paymentech, where he held various sales and management positions over a span of nine years. Previously, he held a number of technical and marketing positions with VeriFone and NDC. Myers is an active member of the Electronic Transaction Association (ETA) and a current member of the ETA Board of Directors. Payment Processing is a provider of integrated payment solutions. In 2006, PPI processed over $3 billion in VISA and MasterCard payments.

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Credit Piggybacking Goes Mainstream

A San Diego company has compiled a group of investors with seasoned tradelines dating back at least 10 years with perfect payment history and low balances and made them available to the public. Under the program borrowers are added as authorized users to help build credit. TradeLine Solutions says it can boost a score from the 500s into the 700s. The Company offers five packages for varied levels of credit, with plans starting at $599. Experian is implementing new software on September 1st that will not recognize additional authorized users when reporting.

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ONE PAYMENT

ONE Payment, a collaboration among ChinaPay, ECONTEXT and
INICIS, has introduced online payment processing in China, Japan and
Korea through a single interface, merchant service and payment
gateway. The online processor provides real-time payment data, a
single point of contact for the three countries, local payment technology
implementation, payment acceptance in local currencies and provides
24-hour customer services from a single support team. ChinaPay Co.
Ltd. online payment gateway provider has 166 member banks.

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CFSI Catalyst Fund Invests in AccountNow

CA-based prepaid card marketer AccountNow has secured the Center for Financial Services Innovation’s new Catalyst Fund as the final investor in the companies third round of venture funding and named David J. Petrini, formerly EVP and CFO of Capital One’s GreenPoint Mortgage Funding as its new CFO. On June 26, AccountNow announced $12.75 million in new funding and the addition of two new board members. Trident Capital, a new investor, led the round, and all current investors participated. These investors include INVESCO Private Capital, Oak Hill Venture Partners, VSP Capital, Grayhawk Venture Partners and Mr. Coltrell. Christopher P. (Woody) Marshall, Managing Director of Trident Capital and Stephen B. Galasso, Strategic Advisor at Trident Capital, were AccountNow’s new board members. The Center for Financial Services Innovation (CFSI) created the CFSI Catalyst Fund to invest in financial services companies and solutions focused exclusively on underbanked consumers. The fund is a private equity limited partnership and was announced on July 24. The Center for Financial Services Innovation, a non-profit affiliate of ShoreBank Corporation, facilitates financial services industry efforts to serve underbanked consumers.

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52% of Consumers Pay No Monthly Bank Fees

A new survey shows that two-thirds of consumers spend $3 or less in monthly fees for bank services such as checking account maintenance and ATM access. The poll by the American Bankers Association also reveals that more than half of consumers pay no bank fees, a 9% increase from 2006. When asked how much they estimate they spend on fees for banking services each month, such as checking account maintenance and ATM access, consumers provided the following responses: 52% said they pay nothing; 13% said $3 or less; 9% said $3-$6; 3% said $6-$8; 5% said $8-$10; and 13% said they pay more than $10.

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Bankers Embrace Bulk Check Deposit ATMs

A new survey of Southeastern U.S. bank executives shows that most executives plan to implement bulk check technology in the near future. The research conducted by Wincor Nixdorf also showed that 95% agreed or somewhat agreed that bulk check deposit ATMs provide a better banking experience; nearly 60% of the respondents indicated their financial institutions will migrate to bulk check deposit ATMs in the near future. Wincor Nixdorf?s bulk check deposit ATM enables consumers to deposit up to 50 checks or notes at the same time, through a single deposit slot, without the need for envelopes. Under “Check 21,” banks can utilize the images of checks scanned at an ATM to process the deposited funds far more rapidly than can be done with physical checks.

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CU Card Portfolio Sales Maintain Pace

The average credit card portfolio sold by a credit union declined to $6.7 million for the first half of this year, compared to $7.1 million for the same period one-year ago. During the second quarter 18 credit unions with portfolios of more than $1 million in outstanding balances sold their card business, compared to 17 in 1Q/07. According to NH-based Brookwood Capital, total balances sold during the first half of this year were approximately $233 million. The brokerage firm says that since 2002, more than 13% of all credit union credit card issuers with credit card portfolios of over $1 million in receivables have outsourced their card programs to third party partners. Brookwood notes that the latest results indicate that credit unions of all sizes are continuing to take a strategic look at their credit card product lines. While these portfolios are nearly always profitable, many smaller issuers are trying to find ways to issue a stronger product set, lowering their institutional credit risk and fraud exposure and improve the bottom line. Brookwood Capital specializes in credit union credit card portfolio sales.

CU PORTFOLIO SALES
Year Total Outstandings Average
2002 41 $285 million $7.0 million
2003 59 $419 million $7.1 million
2004 67 $459 million $6.9 million
2005 65 $481 million $7.4 million
2006 69 $466 million $6.7 million
YTD2007 35 $233 million $6.7 million
Source: Brookwood Capital

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Shell Adopts VISA’s New Prepaid Policy

Shell Oil Products US has begun implementing VISA USA’s partial authorization policy for prepaid VISA cards. The VISA solution prevents declined transactions when the balance on a VISA prepaid card is less than the typical cost of a full tank of gas. If the card only has enough funds to pay for a portion of a total gas purchase, the transaction will no longer be declined, prompting the cardholder to “see attendant.” Instead, the pump can now be instructed to shut off when the funds on the Visa prepaid card reach zero. According to VISA research, partial authorization can help average approval rates increase by up to 25% at automated fuel dispenser merchants who use VISA’s solution. Shell is in the process of expanding this service at stations across the U.S.

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Equifax Hosts a Credit Webinar Today

Equifax is hosting a webinar today called “Today’s Credit Forecastâ¦Tomorrow’s Economic Outlook” with Moody’s Economy.com senior economist Juan M. Licari, and Lisa Zarikian, vice president, Equifax Predictive Sciences as keynote speakers. They will address trends in today’s economic landscape and the impact of key factors on consumer households to include whether or not the impact of the mortgage market on consumer credit quality translates into credit quality erosion in other markets, such as bankcards and autos; the latest solutions to help businesses look beyond today’s market conditions; the value of scoring models in navigating the dynamics of a changing economy in an effort to manage risk. The one-hour webinar is free to members of the media, consumer credit risk professionals, lending officers, marketing professionals, business and operations managers and compliance officers.

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