FDC International Inks a Deal with Societe Generale

First Data International has signed an agreement with Societe Generale Consumer Finance to provide card processing services to the bank’s international consumer finance division. Societe Generale Consumer Finance has selected FDI as its partner to roll-out a comprehensive suite of new card and loan products to consumers across Europe, the Middle East and Africa over the next 12-to-18 months.
Under the terms of the agreement, FDI will provide Societe Generale Consumer Finance credit card management and transaction processing together with a wide-range of back-office and value-added services. First Data’s Central European regional hub based in Bratislava, Slovakia, will provide the core processing.

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Online Resources Revenue Rises 85% in Q3

VA-based Online Resources posted third quarter revenue of $28.3 million, up 85% from 3Q/05. The growth was fueled by high user growth and the acquisition of Princeton eCom. The Company serves over 8 million end-users and processes $100 billion in bill payments annually. For complete details on ORCC’s latest performance visit CardData ([www.carddata.com][1]).

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

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G&D Opens Smart Card Subsidiary in France

Smart card supplier, Giesecke & Devrient, has opened a subsidiary in Paris. G&D says with a market penetration of almost 80% each on average, nearly every citizen of France carries one smart card in his or her cell phone and one in his or her wallet. When it comes to
electronic payment and mobile communications, the country has enormous
potential for high-end products and innovative card solutions, such as
contactless payment cards or large memory SIM cards.

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PayPal Launches a Major Holiday Promotion

PayPal has launched promotional incentive programs valued at up to $100 million giving customers cash rebates up to $20 when paying with PayPal on qualifying merchant Web sites in North America, including eBay.com. Additionally, consumers will find free shipping from some of the Web’s most popular brand names when they pay with PayPal this holiday season. Cash rebate programs will be available to consumers from November 23, 2006, through May 15, 2007. PayPal, an eBay company, enables any individual or business with an email address to send and receive payments online securely and easily using a bank account, credit card or stored balance.

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MASTERCARD 3Q/06

MasterCard posted an 82% year-on-year increase in net income for the third quarter to $193 million as net revenues rose 14% to $902 million. Fueling the higher revenue was the growth in MasterCard’s gross dollar volume, which increased 15% to $502 billion. Worldwide purchase volume rose 17% to $365 billion driven by increased cardholder spending on a growing number of MasterCard cards. As of September 30th, the Company’s customers had issued 818 million MasterCard cards, an increase of 12.6% over the same period in 2005. As expected, advertising and market development expenses decreased 4.6% to $209.2 million versus the year-ago period due to higher spending for the “2006 FIFA World Cup” earlier in the year. However, general and administrative rose 12% to $392.1 million. For complete details on MasterCard’s third quarter performance, visit CardData (www.carddata.com).

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Coinstar Revenues Climb 18% in 3Q/06

WA-based Coinstar reported third quarter revenue of $140.0 million, compared to $118.7 million one-year ago. Net income declined from $6.6 million for 3Q/05 to $5.3 million for 3Q/06. Coinstar has 19,500 POSA terminals installed at the end of the quarter, compared to 17,800 one-year ago. Its Coin-to-Card or e-certificate enabled base grew from 4,700 to 7,300 over the past twelve months. The company’s products and services can be found at more than 60,000 retail locations including supermarkets, drug stores, mass merchants, financial institutions, convenience stores and restaurants. For complete details on Coinstar’s third quarter performance visit CardData ([www.carddata.com][1]).

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

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Ingenico Selects INSIDE Contactless’ PicoRead

INSIDE Contactless announced that Ingenico has selected the “PicoRead” reader chip for integration into its “i3070” contactless PIN Pad. With support from INSIDE Contactless, Ingenico was successful in completing the integration of PicoRead into the i3070 PIN pad in record time. Ingenico’s PicoRead powered PIN Pad offers a new user experience, by directly accepting contactless payment cards and NFC enabled devices, thus eliminating the need for an external contactless reader. PicoRead will also be used as the basis for other contactless payment devices from Ingenico. PicoRead is INSIDE’s answer to the fast growing demand for a 13.56Mhz RF interface for large scale applications where power, space, and cost constraints must be properly balanced. INSIDE Contactless is a leading fabless semiconductor provider, delivering the most flexible, innovative, cost-effective, and trusted platform for contactless applications including bank card payments and Near Field Communications (NFC).

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Fair Isaac’s CEO Quits as Q3 Profits Sink 38%

MN-based Fair Isaac confirmed yesterday that its CEO, Thomas Grudnowski, has resigned, effective immediately. Charles Osborne, Fair Isaac’s CFO, has been named interim CEO. The Company is facing intense pressure over its credit scoring business. Last month, Fair Isaac sued all three national credit reporting agencies over their launch and marketing of the “VantageScore” credit scoring model. Fair Isaac alleges that Equifax, Experian, TransUnion and VantageScore Solutions are jointly engaging in unfair and anti-competitive practices that harm the “FICO” credit score brand and goodwill that Fair Isaac has spent 50 years creating. Meanwhile, the Company reported that third calendar quarter revenues were $207.3 million versus $203.3 million reported in the prior year period. Net income for the quarter totaled $22.1 million, versus $35.7 million, reported in the prior year period. The company expects revenues for quarter ending December 31st to be approximately $210.0 million. For complete details on Fair Isaac’s latest performance visit CardData ([www.carddata.com][1]).

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

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BLUE VISA DEBIT

The country’s first carbon neutral debit card has been introduced. The new Barclays “Blue VISA Debit Card” is being rolled out to the bank’s 11 million debit card users as their current ones expire.
The card was developed by Barclays, Axalto, and The Carbon Neutral Company. The card effectively balances out the harmful emissions of
the card’s manufacturing process by preventing the release of the same
amount of greenhouse gases somewhere else. The “Climate Leadership Index,” published in September, lists Barclays among the top 50 “best in
class” companies in the “Global FT500” for initiatives addressing the
challenges of climate change. Barclays is the fifth highest ranking bank
in the index.

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Monthly Payment Rates Continue to Dog Issuers

Monthly payment rates, the amount that cardholders pay on their credit card debt, topped the 21% level again in September, driven by higher minimum payments in the sub-prime sector. However, as dependence on revolving credit grows with declines in home equity extraction and charge-offs/delinquencies begin to normalize, monthly payment rates are expected to possibly decline in the fourth quarter. Payment rates, among asset-backed credit card bonds, were 21.06% in September, up 82 basis points from the prior month. Year-to-date, the monthly payment rate has averaged 20.67%, running 185 basis points from one-year ago. According to FitchRatings, the yield increased 10 basis points to 17.96% and is up seven basis points over year-ago levels.

ABS METRICS
YIELD MPR
Apr 06: 18.81% 21.74%
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%
Source: FitchRatings

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Heartland’s Third Quarter Net Income Rises 55%

NJ-based Heartland Payment Systems posted third quarter revenues of $293.8 million, an increase of 29% over 3Q/05. Net income for the quater was $10.1 million, compared to net income of $6.5 million in the third quarter of 2005. Processing volume for the quarter increased 26.4% to $11.7 billion. The Company’s active merchant count rose to 133,000 at September 30th, a 22% increase over the past twelve months and includes 129,100 of card processing merchants and 3,900 of payroll merchants. For the year, the company is raising its guidance, and now expects net revenue to grow by 30% to 32%. For complete details on Heartland Payment Systems’ third quarter performance visit CardData ([www.carddata.com][1]).

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

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MasterCard Worldwide Celebrates its 40th Year

MasterCard Worldwide, founded in 1966 as the Interbank Card Association, celebrated its 40th anniversary this week at its Global Technology and Operations Center in O’Fallon, Missouri. Since its founding in 1966, MasterCard has grown into a global company featuring one of the most recognizable brands in the world. It has also become a payments industry leader, serving consumers and businesses in more than 210 countries and territories around the world as a franchisor, processor and advisor. MasterCard Worldwide advances global commerce by providing a critical economic link between financial institutions, businesses, cardholders and merchants worldwide.

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