ACI Worldwide Extends Processing Agreement With JCB

ACI has announced that JCB, in addition to increasing card processing
capacity, has extended their processing contract for 5 years. Using ACI’s
“BASE24” software, JCB has migrated their payment system to function
in the United States and Japan. This software is also accommodating to the
company’s expected capacity growth. JCB has a merchant network of
14 million and spans 190 countries and territories. The company issues in
20 countries and territories, has over 59 million card members and
allegiance with 350 financial institutions. ACI processes payments for more
than 800 customers in 84 countries.

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Heartland Payment Systems CTO Steps Down

Heartland Payment Systems announced that CTO Brooks Terrell will be leaving to pursue other interests. In addition to his many accomplishments at Heartland, Brooks built a technology organization of talented innovators dedicated to operational excellence. Today, the team is focused on building new systems and functional enhancements that will support the business for the next 10 years and beyond. Heartland Payment Systems is a provider of credit/debit/prepaid card processing, payroll and payment solutions to more than 150,000 small and mid-sized businesses nationwide.

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Esprit Teams With IEXPay

Esprit and International Express Payments Co (IEXPay) have recently
been in discussions regarding interest in the company’s services. There
have been suggestions of IEXPay’s interest in “Cash Now Worldwide
EFT+”, a clearing service, on a pilot project basis. This provides
check clearing, rather than in a number of weeks, in 3-4 business days.
Initial analysis suggest the revenue potential from this service alone
could
reach USD $12 – $15 million. Because of traditional practice, the name
of potential bank clients are not being released until the results of
the pilot
project are evaluated. Esprit offers a variety of online financial services.

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PayPass Comes to Major Airport Parking

The leader in large airport parking systems announced that its airport parking applications in North America will begin accepting “MasterCard PayPass” contactless payments. Affiliated Computer Services has more than 20 current installations at the nation’s top airports. PayPass readers are anticipated to be installed in four to six airport sites by the end of this year. ACS’ airport revenue control solutions will continue to accept traditional magnetic-stripe payment cards along with this contactless payment technology and will continue to work with all payment card providers. As of March 31st, there are over 14 million “PayPass” cards and devices in the market, and “PayPass” is currently accepted globally at 51,000 merchant locations.

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STAR-ACHATS to Distribute BankServ Software

STAR-ACHATS has inked agreements to distribute BankServ’s
“TurboSwift” international payment software. The software is used by
hundreds of banks in nearly 50 countries and settles cross-border
transactions on the SWIFT Network. The solution automates data-entry,
routing functions for international payment messages, and lets remote bank
branches initiate payments through a central server. BankServ has been
developing electronic payments technology for banks since 1996.

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TNB Picks-Up Four More CU Portfolios

TNB has purchased four more credit card portfolios, netting . more than $3.7 million in outstanding balances. They include APEX Community FCU of Stowe, PA; NorthRidge Community Credit Union of Hoyt Lakes, MN; West Virginia Central Credit Union of Parkersburg, WV; and Westminster FCU of Westminster, CO. Apex Community Credit Union has assets of $34 million. NorthRidge Community Credit Union has assets of $34.5 million, serving 6,190 credit union members and CUSO clients. West Virginia Central Credit Union has more than $57 million in assets and 16,000 members.

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VASCO Introduces a Speaking Card Reader

VASCO Data Security has introduced the “Digipass 840 Comfort Voice”
(Digipass 840 CV). The product was designed for the blind and visually
impaired. Utilizing a speech-based user interface, features of the card
reader include, speech based feedback of entered data and selected
functions,
an e-signature and one-time password functionality, the use of built-in
speaker
or headset and large display and keypad. “Digipass 840 CV” also supports
EMV-CAP, VISA dynamic password authentication 1.1, German
Sm@rt TAN, and Belgian eID Card authentication. VASCO has a customer
base of over 4,800 companies in more than 100 countries, including nearly
750 international financial institutions.

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BofA Goes Big on MLB All-Star Week

Bank of America has announced a month long campaign to get fans close to the action during 2007 All-Star Week in San Francisco. In the month leading up to the All-Star Game, Bank of America will support a series of activities and special events. They include: “Bank of America All-Star Opportunity Tuesday. San Francisco area residents can take part in the Bank of America “All-Star Opportunity Tuesday” program at eight select banking centers. Fans that open a new Bank of America checking account will receive two tickets to DHL All-Star FanFest. Fans over the age of 18 can also enter a random drawing for a chance to win a pair of tickets to MLB All-Star Week. BoA is partnering with Major League Baseball and the San Francisco Giants(R) to conduct a youth baseball clinic near AT&T Park on Thursday, July 5. Legendary former Major League Baseball players and All-Stars will provide instruction to dozens of young athletes. All youths in attendance will receive autographs from the MLB legends, a tour of AT&T Park and two tickets to DHL All-Star FanFest.

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Citibank Taiwan Selects Gemalto for EMV Cards

Citibank Taiwan will be using Gemalto for the EMV migration of over
1 million cards for protection against fraud. Gemalto provides digital
security
and an end-to-end service program for Citibank cardholders and allows
Citibank to employ a range of card technologies and for customers to
personalize their cards. Cardholder data is sent securely to Gemalto’s
personalization center, where the corresponding card is personalized,
packaged and prepared for delivery to the cardholder. Gemalto had 2006
annual revenues of 1.7 billion euros, operations in about 100 countries and
employs over 10,000. Citibank has 200 million customer accounts and does
business in more than 100 countries.

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ABS Charge-Offs Head Higher in April

Charge-offs, among “prime” credit card-backed securities, headed higher in April hitting a new fifteen month high. Although the figure is only 20 basis points above January’s peak, it is 132 basis points above the year-ago level. However, the 60+ day delinquency ratio, which is an indicator of future charge-offs, declined by five basis points in April. According to FitchRatings, “prime” charge-offs for April were 4.51% compared to 4.36% in the prior month and 3.19% for April 2006. The “prime” 60-plus day delinquency index for April was 2.64%, compared to 2.69% in March and 2.37% one-year ago. Fitch also reported that “sub-prime” 60+ day late payments decreased by 17 basis points in April to 5.10%. However, “sub-prime” charge-offs increased 65 bps to 9.28%. Fitch says the recent decreases in sub-prime charge-offs can be attributed to the normalization of the delinquency bubble caused by changes made to the minimum payment calculation per OCC guidance.

CREDIT CARD ABS METRICS
CHARGE-OFFS DELINQUENCY*
Nov 06: 3.88% 2.50%
Dec 06: 4.21% 2.59%
Jan 07: 4.31% 2.57%
Feb 07: 4.13% 2.66%
Mar 07: 4.36% 2.69%
Apr 07: 4.51% 2.64%
* 60+ day
Source: Fitch Ratings

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VISA Promo Offers Free Burger King Meals

VISA USA and Burger King have teamed to launch a summer promotion. For every 10 purchases made between now and August 31st a statement credit will be issued for the amount of a free meal on customers’ VISA card statement, up to $7.00. Under the “Fastest Way to a Free Meal” promotion, a minimum purchase amount is not required. To participate, VISA cardholders must register their VISA check and credit card online to have Burger King purchases logged automatically. There is no limit to the number of free meals that can be earned during the promotion. PIN-based purchases, VISA prepaid or gift card purchases, ATM transactions, cash withdrawals, and purchases made outside participating Burger King locations do not qualify. More than 7,500 Burger King U.S. restaurants are participating in the promotion.

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TransUnion Markets Link2Credit Thin File

TransUnion will deliver Atlanta-based L2C’s “Link2Credit Thin File Model” to help lenders expand their customer base into underserved markets by qualifying more prospects and increasing acceptance rates. Link2Credit leverages alternative data including payday loan information, rental payment histories, debit data and cellular payment data so lending institutions can better assess the creditworthiness of previously unscoreable consumers by potentially increasing their hit rates and approvals. The model predicts the likelihood of a consumer becoming 90 days or more delinquent, including charge-off, within a 12-month period. According to recent estimates, 35 to 54 million consumers still remain largely outside the mainstream credit system. L2C, Inc. is a consumer scoring company specializing in reaching the underbanked market. TransUnion is a provider of credit and information management.

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