Virgin Launches Jazzed-Up Prepaid Card

Virgin Money has introduced a new prepaid MasterCard in the UK that offers a competitive rate for money transfers plus a package of discounts on various Virgin products. The new “Pay As You Go” card charges a flat 3.5% fee for foreign remittances and can be topped up with money at Post Offices, “PayPoint” outlets across the country and online at Virgin Money’s Website. The new card also offers 10% off at Virgin Megastores; 10% off Virgin Holidays; 10% off Virgin Wines; 75% off Virgin Active’s joining fee; and 10% off Virgin Car, Home, Pet and Annual Travel insurance. The card has an initial card application fee GBP 9.95. Free loading is available at the Post Office and Online. However, a 2.75% load fee applies at “PayPoint” and there is a 2.5% credit card load fee. The card is issued on behalf of PrePay Technologies by Clydesdale Bank and is promoted by Virgin Money.

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PREPAID VIRGIN CARD

Virgin Money has introduced a new prepaid MasterCard that offers a competitive rate for money transfers plus a package of discounts on various Virgin products. The new “Pay As You Go” card charges a flat 3.5% fee for foreign remittances and can be topped up with money at Post Offices, “PayPoint” outlets across the country and online at Virgin Money’s Website. The new card also offers 10% off at Virgin Megastores; 10% off Virgin Holidays; 10% off Virgin Wines; 75% off Virgin Active’s joining fee; and 10% off Virgin Car, Home, Pet and Annual Travel insurance. The card has an initial card application fee GBP 9.95. Free loading is available at the Post Office and Online. However, a 2.75% load fee applies at “PayPoint” and there is a 2.5% credit card load fee.
The card is issued on behalf of PrePay Technologies by Clydesdale Bank and is promoted by Virgin Money.

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ABS Payment Rates and Yield Retreat

Monthly payment rates, the amount that cardholders pay on their credit card debt, dipped sharply in May after soaring in April to its highest level in more than a year. Among credit card-backed securities, the MPR dropped to 19.58% in May after climbing to 21.09% in the prior month. However, the MPR has remained fairly stable in the first and second quarters and remains consistent with historical levels. According to FitchRatings, the gross yield decreased to 18.23% in May from 19.23% in April but was 62 basis points above year-ago levels. Volatility in gross yield in first-quarter has mimicked that of first-quarter 2006. However, yield in 2007 remains slightly elevated compared with that of first-quarter 2006. Fitch notes that it expects the credit environment to become less favorable for credit card performance as bankruptcy filings continue to rise and delinquencies and charge-offs normalize from recent lows toward their historical average of 6.0% for prime trusts.

ABS METRICS
YIELD MPR
May 06: 17.61% 19.14%
Jun 06: 17.97% 21.00%
Jul 06: 17.63% 20.71%
Aug 06: 17.86% 20.24%
Sep 06: 17.96% 21.06%
Oct 06: 17.58% 19.30%
Nov 06: 17.96% 19.82%
Dec 06: 17.78% 19.32%
Jan 07: 18.28% 19.27%
Feb 07: 17.70% 20.80%
Mar 07: 18.21% 18.76%
Apr 07: 19.23% 21.09%
May 07: 18.23% 19.58%
Source: FitchRatings

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CUSO PSCU Renews FDC Processing Contract

First Data has extended a long-term contract with PSCU Financial Services Under the agreement, First Data will provide an extensive suite of credit and debit products to PSCU Financial Services and its member-owners, including debit and credit processing, ATM driving, fraud prevention services, plastics and statement production, data analytics and PIN-secured debit access via the STAR Network. First Data has provided credit and debit card processing for PSCU since 1989. As a cooperative, PSCU Financial Services supports 1,100 financial institutions and is owned by 500+ member credit unions representing over 11 million cardholder account. First Data is a provider of electronic commerce and payment solutions for businesses worldwide.

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MAY ABS

Delinquency for credit card-backed bonds in the U.K. edged down in May after hitting a new peak April. The delinquency ratio (60-180 days) dropped 20 basis points to 3.9% in May compared to the prior month. According to FitchRatings, charge-offs for May were relatively stable, registering a modest improvement of 10 basis points, closing at 7.2%. The “Fitch Monthly Payment Rate Index” recovered from its lowest value in the past year last month, increasing 230 basis points to 18.30%. Fitch says this is likely to be the result of May benefiting from a slightly longer day count compared to April, which had fewer calendar days and more bank holidays. The U.K.’s “Monetary Policy Committee” raised interest rates by 25 basis points to 5.75% in its meeting on July 5th. This latest move takes interest rates to their highest level since February 2001.

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GoEmerchant.com Upgrades V-Terminal

NJ-based GoEmerchant.com has upgraded the reporting functions and security features of its “Transaction Center Virtual Terminal” The reporting function is one of the most important tools available through the Transaction Center. Reports are now available with up to 365 days of data, which will help GoEmerchant.com’s customers with year-end reports and analysis. Transaction queries are easier than ever with a user-friendly pop up calendar to enter date ranges. Security is a high priority for GoEmerchant.com, which was an early adopter of VISA CISP compliance and has been PCI compliant since 2003. The Transaction Center now features personalized security questions in the event the customer forgets a password. Customers now receive a gateway key, similar to a PIN, that allows the passwords to be updated easily. In addition, customers can now block an individual or range of IP addresses to help eliminate fraud. GoEmerchant.com is a provider of e-commerce solutions tailored to fit the need of all businesses such as shopping cart software, payment gateway, merchant accounts, virtual terminal, fraud protection and marketing tools.

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PTT Bank Orders 500K Sagem Orga EMV Cards

For card issuing and authorization of its International card products,
Aizkraukles Bank has chosen Nomad CORTEX software. The software
will provide the bank with a payments processing platform to encompass
aspects of the Electronic Funds Transfer Network including issuing,
switching and acquiring. The Bank’s decision to utilize Nomad CORTEX has to do with
the software’s response to customer needs by investing in technology and
the collaboration between Nomad and D8 Latvia SIA, who will provide local
support and consultancy services for the project. Implementation of the
software for Aizkraukles Bank will be ongoing from August 2007 until
December 2007.

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NCR to Supply SCB With Personas ATMs

NICE has announced it will be acquiring Actimize for $280 million,
80% to be paid in cash and 20% by allocating NICE ordinary shares,
making for a combination of resources to take transactions and
interactions, handle masses of data, and all comprising a full view
of the customer touch points with the organization. NICE expects a
contribution of $10-12 million non-GAAP revenue from the acquisition
and a dilution of $0.04-$0.05 in non-GAAP EPS in 4Q07 due mostly to
lower financial income expected for this period. As a result, NICE is
raising its full year non-GAAP revenue guidance for 2007, to $497-$514
million and is updating its non-GAAP EPS to be in the range of $1.31 –
$1.42 for 2007.

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