Chockstone Promotes Edmondson to SVP

Chockstone has promoted Marc Edmondson to Senior Vice President, Corporate Development. Edmondson will be responsible for Chockstone’s key partnerships in the financial services, merchant processing, and point-of-sale industries. Additionally, Edmondson will oversee Chockstone’s Receipt and Respond network. Prior to joining Chockstone in 2005, Edmondson served as Vice President and General Manager for First Consumer’s National Bank, where he directed the consumer marketing organization and was responsible for product and business development, strategic planning and portfolio acquisitions. During Edmondson’s four-year tenure, First Consumer’s National Bank’s consumer receivables grew 267%. Chockstone provides personalization, loyalty marketing, and stored value solutions.

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BofA Q1 Card Profits Rise 18% Topping $1B

Bank of America reported that its Card Services division had Q1 revenue of $6.13 billion, an increase of 2% compared to the first quarter of last year and net income rose 18% to $1.15 billion. Managed U.S. consumer and business credit card loans at the end of the first quarter increased 2.5% year-on-year to $146.0 billion. First quarter Card Services charge-offs were 4.81%, compared to 4.57% in the prior quarter and 3.07% one year ago. The managed 30+ day delinquency declined to 5.44%, compared to 5.49% in the fourth quarter and 4.48% for 1Q/06. BofA also reported that its merchant acquiring business handled $82.8 billion in processing volume during the first quarter from total transactions of more than 1.9 billion. Purchase volume for U.S. consumer and business cards was $55.5 billion for 1Q/07 compared to $62.1 billion for 4Q/06 and $53.5 billion for 1Q/06. Debit card income rose 16% to $500 million and purchase volume grew to $43.57 billion for 1Q/07. BofA noted that 11.3 million active bill pay users paid $55.4 billion worth of bills during the first quarter. For complete details on Bank of America’s 1Q/07 performance, visit CardData ([www.carddata.com][1]).

BOFA EOP CARD LOAN HISTORICAL
(U.S. Consumer & Business Cards)
1Q/06: $142.4 billion
2Q/06: $144.1 billion
3Q/06: $145.9 billion
4Q/06: $150.7 billion
1Q/07: $146.0 billion
Source: CardData (www.carddata.com)

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

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CVS Loyalty Card Adds Extra Bucks Now

CVS/pharmacy has introduced “Extra Bucks Now” that delivers immediate payout of Extra Bucks tied to special offers on customers’ receipts. “Extra Bucks” are like free “CVS money” that customers can use to purchase almost any non-prescription item at CVS/pharmacy. There are two ways consumers can earn Extra Bucks: through special Extra Bucks offers and quarterly spending. CVS/pharmacy also expanded the “personal shopping” capabilities of its rewards program to make product recommendations and offer special coupons tailored to fit each shopper’s individual interests through personalized email, direct mail, and register receipts. CVS’ ExtraCare program is now in its sixth year and is the largest consumer rewards program, with more than 50 million cardholders. CVS/pharmacy is the retail division of CVS/Caremark Corporation and is America’s largest retail pharmacy with approximately 6,200 retail locations.

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Paypal’s Total Payment Volume Soars by 30%

eBay reported that PayPal had 143.3 million total accounts at the end of the first quarter, a 36% increase from one-year ago. Total payment volume rose 30% to a record $11.4 billion which includes payments initiated through the PayPal system but excludes its payment gateway business. The number of active accounts hit 35.7 million as of March 31st, its highest level to-date. During the first quarter, PayPal handled 177.0 million payments, a 3% increase over the prior quarter, and up 19% from 1Q/06. PayPal’s 1Q/07 transaction revenue rate increased to 3.69% from 3.66% in the prior quarter. The processing expense rate for the first quarter was 1.09%, compared to 1.04% for 1Q/06. PayPal’s transaction loss rate came in at 32 basis points, up 3 basis points from one-year ago. PayPal Merchant Services posted a record $4.38 billion to the $11.36 billion in global TPV in the first quarter, representing a 51% increase from the year ago quarter. For complete details on eBay/PayPal’s first quarter performance, visit CardData ([www.carddata.com][1]).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
1Q/06: $ 8.8 billion 105.0 million
2Q/06: $ 8.9 billion 113.7 million
3Q/06: $ 9.1 billion 122.5 million
4Q/06: $11.0 billion 133.0 million
1Q/07: $11.4 billion 143.3 million
SOURCE: CardData (www.carddata.com)

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

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Fair Isaac to Post Lower Q1 Results

Fair Isaac expects to report second quarter revenues in the range of $200 to $202 million in second quarter of fiscal 2007 versus $208.2 million reported in the prior year period. This is lower than the second quarter revenue guidance of $215 million provided by the company last quarter. Net income for the second quarter of fiscal 2007 is expected to total in the range of $20 to $22 million, or $0.35 to $0.37 per diluted share, versus $27.0 million, or $0.40 per diluted share, reported in the prior year period. This is lower than the second quarter GAAP earnings per diluted share guidance of $0.48 provided last quarter.

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Americans Pessimistic About Personal Finances

A new survey found that Americans are more pessimistic about their personal level of financial security. The “COUNTRY Financial Security Index” fell to 69.4 in April, down from 70.2 in February. Rasmussen Reports says the decline was tied to greater concerns about finances and debt and to a drop in confidence in the ability to protect assets. However, it was somewhat offset by stability around retirement and education savings. Those who indicated they are not confident in their ability to pay all their debts as they come due increased two points to 18%. The Index is sponsored by COUNTRY Insurance & Financial Services.

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Chase Profits Rise for the 3rd Straight Quarter

J.P. Morgan Chase reported this morning that first quarter credit card profits declined 15% year-on-year to $765 million, compared to $719 million in the prior quarter and $901 million in the year-ago quarter. The year-ago quarter was artificially boosted by the change in bankruptcy laws which took effect in the fourth quarter of 2005. Managed card loans were up 9% to $146.6 billion year-on-year but down 4% sequentially, impacted by seasonally higher payment activity. During the quarter, Chase inked several new partner relationships, including Amtrak and several partner relationships were renewed, including Buy.com and Speedway SuperAmerica. The managed net charge-off rate for the quarter was 3.57%, up from 2.99% in the prior year and 3.45% in the prior quarter. The 30-day managed delinquency rate was 3.07%, down from 3.10% in the prior year and 3.13% in the prior quarter. During the first quarter, the net accounts opened were 3.4 million. Charge volume of $81.3 billion increased by $7.0 billion, or 9%, from the prior year. Merchant processing volume of $163.6 billion increased by $15.9 billion, or 11%, and total transactions of 4.7 billion increased by 335 million, or 8%, from the prior year. For complete details on Chase’s first quarter performance, visit CardData ([www.carddata.com][1]).

JPM CHASE HISTORICAL ($billions)
1Q/06 2Q/06 3Q/06 4Q/06 1Q/07
EOP Outstandings: $134.3 139.3 143.8 152.8 146.6
Charge Volume: $ 74.3 84.4 87.5 93.4 81.3
Source: CardData (www.carddata.com)

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

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New Ingenico Hardware is Class A Certified

Chase Paymentech Solutions has awarded “Class A” certification on Ingenico’s “i7780,” “i5100” and “3010” PIN Pad. The Ingenico i7780 is a secure, short-range portable transaction terminal that allows credit, PIN debit, stored value and EBT payment to be brought to the customer. The i5100 is an IP-enabled countertop transaction terminal capable of operating in either dial or IP communication modes. To make PIN entry more convenient and private, the 3010 PIN Pad can be easily attached to the i5100 or other terminal products. The certified application was custom developed for Chase Paymentech by Ingenico and includes a host of features that enable wireless payments for a wide range of industries including retail, restaurant, and convenience stores. Ingenico is a supplier of electronic acceptance technology. Chase Paymentech Solutions is a merchant acquirer accepting payments at the point of sale, hospitality, internet, retail, catalogue and recurring billing.

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RapidAdvance Names a New General Counsel

MD-based RapidAdvance, a provider of merchant cash advance services, announced that Joseph Looney, formerly of Hudson Cook, has joined the company as General Counsel. At Hudson Cook, Looney assisted national and state banks, credit unions, consumer finance companies, credit card issuers and others in complying with the various state and federal laws that apply to financial services firms. Additionally, he has assisted a number of investment banks in purchasing financial services businesses and loan portfolios. Looney has worked with RapidAdvance since the third quarter of 2006, assisting the company with a wide variety of legal and compliance issues. Looney graduated with honors from the University of Maryland’s School of Law. RapidAdvance provides working capital to small and medium-sized merchants.

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WaMu Card Q1 Profits Rise 24% Year-on-Year

Seattle-based Washington Mutual reported that first quarter net income for its Card Services unit increased 24% from the year-ago quarter and up 72% sequentially. The prior quarter results included an increase to the loan loss provision of $95 million. Managed card outstandings were $23.6 billion as of March 31st, compared to $20.1 billion one-year ago. The 30+ day delinquency rate dropped 10 basis points to 5.15%, compared to 5.25% for the fourth quarter and down from 1Q/06’s 5.18%. However, charge-offs increased from 5.84% in the fourth quarter to 6.31%. The charge-off figure reflects an increase in contractual losses due to the 2006 change in minimum payment policy. WaMu also reports that it opened 782,000 new credit card accounts in the first quarter, compared to 839,000 in the fourth quarter. The issuer noted that more than a third of the new accounts came through the company’s retail channel. For complete details on WaMu’s latest performance, visit CardData ([www.carddata.com][1]).

WaMu Net Income Track Record
1Q/06: $207.0 million
2Q/06: $183.2 million
3Q/06: $207.0 million
4Q/06: $149.0 million
1Q/07: $256.0 million
Source: CardData (www.carddata.com)

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

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I.C.E. Fourth Quarter Revenues Decline 2%

CA-based International Card Establishment reported net revenues of $3.1 million for the fourth quarter, a 2% decrease over the comparable year ago period. The company reported quarterly net income of $ 28,956 as compared to quarterly net loss of $(1,751,570) in 2005. Net income would have been significantly higher absent a large charge related to a defaulted merchant account that generated approximately $198,000 in losses. EBITDA also rose sharply to $526,125 or 25% for the quarter, as compared to $422,076 for the same period in 2005. For the year ended December 31, 2006, I.C.E.’s net revenues rose 91% to $10,765,826 from $5,644,079 the previous year. I.C.E. is a provider of diversified products and services to the electronic transaction processing industry.

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Hypercom Supports Planet Payment Product

Hypercom will now support Planet Payment’s multi-currency processing product as an available application for Hypercom’s “Optimum T4100” terminals. Planet Payment’s Dynamic Currency Conversion (DCC) and Multi-Currency Pricing (MCP) services, provide merchants with pricing localization tools that can drive additional sales from international customers and improve customer service. With DCC, merchants continue to price their goods in United States dollars. After a MasterCard or VISA card issued in one of the supported foreign currencies is swiped on an Optimum terminal, the device will automatically display the transaction amount in both US Dollars and the customer’s currency. The customer can then select which currency he wants to use to complete the purchase, while the merchant still receives the settlement in US dollars. Planet Payment is a multi-currency payment and data processor.

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