Account Data Compromise Recovery

VISA USA beefing up its ability to help financial institutions recoup their fraud losses caused by the improper storage of magnetic-stripe data. Therefore, effective October 1st, VISA is implementing an improved process called “Account Data Compromise Recovery.” The enhanced recovery process will provide faster reimbursements for issuers, while also helping acquirers and merchants better forecast their potential fraud liability. Issuer compensation will be automatically calculated and reimbursed based on the counterfeit fraud the financial institution reports to VISA. Typically, issuers will receive financial recovery within six months from the date VISA sends an alert notifying them of the account numbers at risk. Currently it could take up to 32 months for the same process.

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SPILL GROUP to Use GlobalCollect

GlobalCollect and the SPILL GROUP have inked a deal to enable game publishers to distribute, promote, and manage online payment processing worldwide through one interface. SPILL GROUP runs more than thirty gaming portals in eight European countries in addition to China, Malaysia, and India. Over 1.5 million unique visitors look for gaming enjoyment on the SPILL GROUP portals per day. Blizzard, Sony, CCP and many others already make use of GlobalCollect’s online payment platform.

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Wells Fargo Processes $65B in Check Images

Wells Fargo reports it has processed $65 billion in deposits via the check imaging services and more than 15 million checks images to date, currently averaging half a billion dollars per day. The growing reliance on remote deposits is demonstrated by services like Wells Fargo Desktop Deposit(R). Since the end of 2005 the number of checks scanned grew by 500% to more than 8 million. Wells Fargo & Company is a diversified financial services company with $500 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,200 stores and the internet (wellsfargo.com) across North America and elsewhere internationally.

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Private Label Drives ADS Q2 Profits Up 30%

Dallas-based Alliance Data Systems posted record second quarter revenue of $490.5 million, a 32% increase over the year-ago quarter. Net income rose 30% to $44.8 million driven by strong performance in its private label and “AIR MILES” busineses. Transaction Services revenue increased 15% in the quarter to $193.3 million compared to the prior year. Credit Services revenue increased 35% in the second quarter to $176.9 million compared to 2Q/05. Marketing Services revenue increased 43% in the quarter to $208.7 million compared to the prior year. During the quarter ADS signed a long-term renewal agreement to continue providing private label credit card services for IL-based The Room Place at Harlem Furniture and its 16 stores and signed a five-year agreement to provide private label credit card services for Bealls Outlet Stores and Burke’s Outlet Stores and their 500 stores in 14 states. Due to the strong second quarter performance ADS raised its full-year revenue guidance to at least $1.84 billion. For complete details on ADS’ second quarter performance, visit CardData ([www.carddata.com][1]). (CF Library 6/1/06; 6/22/06)

ADS REVENUE HISTORICAL
2Q/05: $370.6 million
3Q/05: $384.8 million
4Q/05: $421.2 million
1Q/06: $477.2 million
2Q/06: $490.5 million
Source: CardData (www.carddata.com)

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

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50% of Billeo’s Billers Accept Payment Cards

CA-based Billeo reports its list of billers accepting payments online has grown 25% over the past year to 5,200 across 26 different categories with more than 2,600 billers accepting credit and check cards. More and more billers are enabling online payments, and consumers now have a greater choice of payment methods at biller websites. Paying with a card to earn rewards, making same day payments to avoid late fees, and accessing self-service options at these sites are the main benefits to consumers. Billeo (www.billeo.com) is a venture backed firm located in Santa Clara, California. It provides consumers an award-winning free toolbar-based bill payment and account management Service.

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GARANTI PAYPASS

Garanti Bank has become the first European MasterCard issuer to launch a “PayPass” card. Starbucks, Burger King and Cinebonus are among the local merchants already signed-up for the rapidly growing contactless payment card program. Garanti will upgrade about 25,000 “Bonus” to the “PayPass” technology. There are a number of “PayPass”-related programs currently underway in ten countries including Canada, United Kingdom, Japan, Korea, Lebanon, Malaysia, Australia, Taiwan, Philippines and the USA. At mid-year there were nearly 10 million “PayPass” cards and devices in the market and approximately 32,000 merchant locations around the world that accept PayPass, including McDonald’s, 7 Eleven, CVS, Duane Reade, Sheetz and Regal Entertainment Group.

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Precidia Intros IP Alternative for ECRs

Precidia Technologies will next week introduce a unique new card acceptance solution for electronic cash registers, the “POSLynx220 with NetVu.” Designed for small and medium retail businesses that depend on ECRs, the POSLynx220 with NetVu is a multi-port payment router which can connect an ECR of almost any manufacture, along with peripherals such as printers, barcode scanners, contactless smart cards and biometrics, to a broadband IP network for faster, more cost effective transactions. Precidia Technologies is a global leader in the design and manufacture of IP access devices for a wide range of industries including retail payments and building automation.

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100MM Americans Embrace Contactless Payments

New research has found that more than 100 million Americans would use contactless cards to pay for small ticket everyday items. The survey by Ipsos Insight and Peppercoin reveals that more than 50% of respondents would use contactless cards to buy gasoline, items from fast food restaurants or corporate cafeterias, or groceries. More than 40% would use contactless cards to pay for convenience store items and transit fares and nearly 40% would use contactless cards to buy coffee or pay for parking. The poll also determined that high income consumers ($50K+) are more likely to use contactless cards. Additionally, depending on the specific market, between 13% and 22% of respondents indicated security concerns would keep them from using contactless cards.

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Equifax Second Quarter Net Income Rises 11%

Personal and business credit information leader, Equifax, reported second quarter revenue of $387.7 million, a 7% increase over 2Q/05. Net income was $69.6 million, an 11% increase from the same quarter in 2005. In North America, Information Services revenue was up 3% to $211.1 million while Marketing Services revenue rose 10% to $69.3 million and Personal Solutions revenue increased 7% to $31.2 million. In Europe, revenue was $37.6 million, up 7% compared to the second quarter of 2005. In Latin America revenue rose to $38.5 million, up 26% compared to 2Q/05. Last month Equifax consummated a settlement of claims against certain former selling shareholders of Naviant, an acquisition in 2002. For complete details on Equifax’s second quarter performance, visit CardData ([www.carddata.com][1]).

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

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CGI-AMS Inks $50MM in Contracts Globally

CGI-AM has signed over $50 million in contracts for its credit business including PNC and Wachovia. These wins include a number of multi-year managed services contracts for application maintenance, as well as the development, integration and maintenance of credit solutions. The breadth of these strategic contracts indicates CGI-AMS’s capabilities in providing end-to-end credit services. CGI-AMS Inc. is the wholly-owned U.S. operating subsidiary of CGI Group Inc. Founded in 1976, CGI Group Inc. (“CGI”) is the eighth largest independent information technology and business process services firms in the world.

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Pipeline Data Powers Blackberry for Payments

MA-based Pipeline Data’s AIRCHARGE subsidiary has introduced a solution for mobile merchants to accept credit card payments over their BlackBerry wireless devices. The AIRCHARGE “JavaME” software for wireless payment processing is certified to operate on the Nationwide Sprint PCS Network using the BlackBerry “7130e” and the BlackBerry “7250 Powered by Sprint,” as well as the Nextel National Network using the BlackBerry “7100i” and the BlackBerry “7520 Powered by Nextel.” The new AIRCHARGE software and latest version of “AirPro” swipe/printer includes upgrades to the credit card reader, printing speed and battery life. The AIRCHARGE payment processing software can be loaded onto the customer’s BlackBerry over-the-air and is compatible with virtually any merchant processing account.

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Smart Card Alliance Targets State Governments

The Smart Card Alliance Identity Council is urging state governments to strongly consider using smart card technology to comply with the requirements of the federal “REAL ID Act”. The REAL ID Act of 2005 stipulates that federal agencies cannot accept a driver’s license or any other state-issued card for identification purposes after May 11, 2008, unless the state meets the requirements of the Act. The Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology.

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