VeriFone Profits Climb 12% Sequentially

VeriFone reported that its profits nearly tripled year-on-year and rose 12% sequentially to $16.8 million for the three months ending July 31st. Revenues for the quarter were up 17% to $147.6 million compared to one-year ago, driven by a 19% increase in net revenues from its North America business. The Company says it expects to close the acquisition of Lipman by November 1st, and is confident that we will receive clearance by the DOJ shortly. In April VeriFone announced a deal to acquire Lipman, which valued around $793 million. In August VeriFone announced its acquisition of Trintech’s payment systems business, which closed on Friday. For complete details on VeriFone’s latest performance, visit CardData ([www.carddata.com][1]) (CF Library 4/10/06; 8/15/06)

REVENUE HISTORICAL
2Q/04: $104.0 million
3Q/04: $108.6 million
4Q/04: $111.3 million
1Q/05: $117.9 million
2Q/05: $125.7 million
3Q/05: $130.5 million
4Q/05: $134.6 million
1Q/06: $142.2 million
2Q/06: $147.6 million
Source: CardData (www.carddata.com)

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

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Associated Banc Selects Corillian

WI-based Associated Banc-Corp has signed Corillian for an online authentication security solution for its retail online banking customers. Associated will leverage Corillian Intelligent Authentication to supply an additional layer of security in order to protect customers’ accounts and assets from online fraudulent access. Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified bank holding company with total assets of $21 billion. Corillian is the market leader of online banking, payment and security solutions to the financial services industry.

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BankServ Enters Person-to-Person Payments

San Francisco-based BankServ is entering electronic person-to-person payments with the acquisition of a U.K. firm. The Company has acquired Magex Managed Payments Platform. The deal gives BankServ a new client in Zopa, an online lending exchange with more than 90,000 members in the U.K. For BankServ, the acquisition represents one more addition to its electronic payments suite that already includes wire transfers, Web payments, remote check deposit, foreign-currency exchange, and international SWIFT messaging. It also gives the company access to the BACS network for ACH payments in the U.K. as a complement to its similar standing with the NACHA in the U.S.

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Chase Advises and Buys Pier 1 Credit Cards

Pier 1 Imports is exiting the credit card business, selling its one million active private label credit card accounts to Chase. The specialty retailer of imported decorative home furnishings and gifts will receive a 10.7% premium on the sale of its $140 million portfolio. Chase and Pier 1 will also enter into a long-term marketing and servicing agreement. Pier 1 has run its proprietary card program for 18 years. The “Pier 1 Preferred Card” will continue to be offered through Chase under the Pier 1 brand. The transaction is expected to close in the fourth quarter. Pier 1 Imports was represented by JPMorgan and Winstead Sechrest & Minick. Pier 1 retained JPMorgan to assist in a potential transaction to sell the Company’s proprietary credit card business in May. (CF Library 5/5/06)

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Experian Finds Online Furniture Shopping Returns

Experian’s PriceGrabber.com’s latest “Consumer Behavior Report” shows a 92% increase in merchant referrals over the past six months to retailers in the online furniture category and a 50% increase in merchant referrals for online major appliances. Although furniture traditionally is a look and feel purchase, consumers now are willing to purchase items such as sofas, patio furniture and tables online in addition to buying from a brick-and-mortar store. From shopper behavior over the past few months, it appears that shoppers are doing their homework by researching online for sales, lower tax rates and free shipping. PriceGrabber.com, part of Experian InteractiveSM, has established itself as one of the most trusted and effective online comparison shopping services, allowing approximately 21 million consumers each month to search and compare information that enables them to find the right product from the right retailer at the best price.

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MasterCards Featured in an Original Movie

MasterCard and ABC Family have teamed up on an original movie due to premiere next week that takes scripted integration to a whole new level. The “RELATIVE CHAOS” movie will integrate various MasterCard products. MasterCard has also partnered with ABC Family on an extensive marketing campaign including print, TV and online media support. The movie about sibling rivalry features Christopher Gorham, Nicholas Brendon, Charisma Carpenter and Terry Bradshaw. ABC Family distributes its movies to 89 million homes. Two weeks ago MasterCard premiered a two-minute mini-drama via the Turner Network Television. The piece, titled “Late,” is also embedded in TNT on Demand and available for download via TNT.tv, MasterCard’s Priceless.com and TNT on AOL. (CF Library 8/17/06)

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ID Data Systems Expands European Sales Force

ID Data Systems has named seven new additions to its Sales Team.
The new executives will strengthen its new approach by injecting “Fresh Thinking” through the Company’s core values; flexibility, added value, innovation and customer service. The enlarged team will enable ID Data to focus on delivering these values on the European stage. ID Data is Europe’s leading interdependent plastic card solutions network with full Mastercard and VISA accreditation. ID Data also owns CardBASE.

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Card Bond Payment Rates Moderate in July

Monthly payment rates, the amount that cardholders pay on their credit card debt, continues to hover at record levels. Year to date, the monthly payment rate has averaged 20.36%, running well over 200 basis points from one-year ago. Driven by higher minimum payments, payment rates were 20.71% in July, an increase of 224 basis points from year-ago levels. The MPR declined slightly from the June by 29 basis points. According to FitchRatings, the payment rate averaged 19.97% during the first quarter and averaged 18.60% for 2005. Five years ago the monthly payment rate hovered around 15%.

Monthly Payment Rate
Jan 06: 19.97%
Feb 06: 20.85%
Mar 06: 19.10%
Apr 06: 21.74%
May 06: 19.14%
Jun 06: 21.00%
Jul 06: 20.71%
Source: FitchRatings

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JULY CARD DEBT

Credit card outstandings declined for the second straight month, dropping by GBP 100 million in July after hitting a record level in May.
Overall, the increase in consumer credit was higher than in June. The Bank of England reports that net other loans and advances rose by GBP 1.0 billion in July (higher than the increase of GBP 0.8 billion in June). The annual growth rate of consumer credit continued to fall, to 7.2% in July, but the three month annualized growth rate increased by 20 basis points to 6.3%.

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Gen X Favors Online Banking & ATMs

A new survey has found that younger customers ranked branches behind online banking (35%) and ATMs (33%). However, older customers said the opposite with 47% saying branches followed by ATMs (20%) and online (13%). The ABA survey said overall consumers preferred the following banking methods: branches (32%); online (26%); ATM (26%); telephone (5%); and mail (5%). The survey of 1,000 consumers was conducted for the ABA by Ipsos-Reid on July 10-12.

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Cash Now Smart Cards Coming

Cash Now and Mono Bank PLC have scheduled the launch of its white label or private label smart cards that will offer the “smart card chip” by the end of 2006. Cash Now has already secured over 100,000 requests from consumers and businesses alike, for the card over the past 24 months. The end user will be able to load or refill their smart card at over 11,000 participating locations such as Money Gram and
establishments alike.

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