Online Chargebacks Near CP Levels

A new survey has concluded that online fraud rates for merchants are now similar to the fraud rates of brick-and-mortar stores due to the vigilance of online retailers. The Merchant Risk Council says card-present fraudulent chargeback rates are usually less than 0.1% of sales. The MRC found that 48% of the online retailers surveyed said that their chargebacks match that rate. Since 2001, online merchants report that the effectiveness of “Address Verification Systems,” for example, has dropped from 70% to 25%, although its use rose from 70% to 83% over the same period. Similarly, the adoption of “Card Verification Codes” increased from 38% to 73% but merchants report a decline in its effectiveness from 49% to 31%.

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TSYS First Quarter Revenues Up 18%

TSYS reported that first quarter profits rose 9% year-on-year to $50.4 million. Revenues for the quarter increased 18% to $412.3 million, compared to 1Q/05. Accounts on file increased to 440.4 million as of March 31st, up 19% from one-year ago. TSYS also reports that stored value accounts rose 18% to 14.9 million. Total consumer accounts on file at the end of the first quarter rose 28% to 272.5 million. During the first quarter, TSYS renewed its multi-year agreement to provide CompuCredit with processing and related services. TSYS says it expects total revenues for 2006 to increase between 6% and 8%. Also, that accounts on file at the end of the year will be approximately 395 million to 405 million. For complete details on TSYS first quarter performance, visit CardData ([www.carddata.com][1]).

TSYS REVENUE HISTORICAL
1Q/05: $350.0 million
2Q/05: $410.2 million
3Q/05: $422.0 million
4Q/05: $420.7 million
1Q/06: $412.3 million
Source: CardData (www.carddata.com)

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

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25 Million Mobile Wallets by 2011

A new report projects that as many as 25 million wireless phone subscribers in North America could be using their mobile phones as mobile wallets by 2011. However, AZ-based In-Stat said it found that attitudes of U.S. users towards mobile wallets are at best, lukewarm, with roughly one-third of respondents interested, one-third indifferent, and one-third uninterested. The most frequently mentioned barrier to the mobile wallet is added fees for its use (72% of respondents), followed by security concerns about loss of the phone and privacy.

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EZCheck Check Services Renews ECHO

Electronic Clearing House has signed a three-year agreement extending its long-standing partnership with EZCheck Check Services. Under this new agreement EZCheck will continue to utilize ECHO’s Automated Clearing House and authorization processing services, including risk management services, to augment its own check processing and check conversion infrastructure. Through ECHO’s range of products and access to other third party databases, EZCheck will be able to secure additional resources that aid in negative data acquisition, risk management integration and ultimately reduction of a merchant’s bad check experience. These resources, along with the robust ACH and transaction processing services supplied by ECHO, enable EZCheck to provide a suite of quality products and services to its merchant customers. EZCheck is a information and payment services company.

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Natl City’s Volume Rises 11% in 1Q/06

While outstandings rebounded slightly in the fourth quarter, MI-based National City’s credit card loans resumed a two year contraction. However, volume for the first quarter was up nearly 11% year-on-year. During the first quarter National City posted volume of $1.45 billion, compared to $1.31 billion one-year ago. Card loans slipped to $2.27 billion, compared to $2.39 billion for 4Q/05 and $2.44 billion for 1Q/05. At the end of the first quarter, National City had 1,129,868 active accounts. For complete details on National City’s first quarter results, visit CardData ([www.carddata.com][1]).

NATL CITY CARD VOLUME HISTORICAL
1Q/01: $1036 million
1Q/02: $1014 million
1Q/03: $1132 million
1Q/04: $1320 million
1Q/05: $1314 million
1Q/06: $1452 million
Source: CardData (www.carddata.com)

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

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GECF’s Profits Climb 14% in 1Q/06

GE reported that profit for its Consumer Finance unit climbed 14% in the first quarter to $836 million as GECF produced revenues of $5.1 billion, an 8.6% increase over 1Q/05. During the quarter, GECF launched the “Dillard’s American Express Card,” becoming the seventh U.S. partner for American Express. GECF also agreed to make a strategic investment in Cosmos Bank, a major banking and consumer finance player in Taiwan, forming a strategic alliance to acquire a 10% stake. Additionally, GECF awarded a multi-year, multi-million dollar contract to VeriFone to supply as many as 20,000 units annually of its “Vx Solutions” payment systems. For complete details on GE’s first quarter performance, visit CardData ([www.carddata.com][1]). (CF Library 1/23/06; 2/24/06; 3/21/06)

GE CONSUMER FINANCIAL TRACK RECORD
Income Revenues
1Q/05: $735 million $4689 million
2Q/05: $735 million $4928 million
3Q/05: $810 million $4913 million
4Q/05: $770 million $4886 million
1Q/06: $836 million $5090 million
Source: CardData (www.carddata.com)

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

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Vital Becomes TSYS Acquiring Solutions

Vital Processing Services has re-named itself as TSYS Acquiring Solutions, following last year’s purchase by TSYS of the remaining 50% equity stake that VISA U.S.A. held. At the ETA Expo, the new TSYS Acquiring Solutions will showcase a number of new offerings for contactless, dynamic currency conversion, gift card, and petroleum and convenience store payments. The company will also exhibit enhanced merchant statement and Internet-based reporting capabilities for acquirer research and portfolio management.

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FAPS to Deploy Planet’s Acquire360

First American Payment Systems has selected Planet Financial Services’ “Acquire360 Merchant Acquiring and Settlement” solution for their backend processing needs. Acquire360 will reduce operational costs and provide pricing control for First American, and has been integrated with First American’s current back office and customer support systems retaining their IT investment while allowing for adaptability and future growth. Planet provides card payment processing solutions.

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TNB Converts Another CU Client to Debit

Memorial Hermann Credit Union of Houston is converting its PIN and signature debit card processing to TNB Card Services. The credit union has used TNB for its credit card processing for 20 years, and its addition of debit processing reflects the strong relationship between Memorial Hermann Credit Union and TNB, which is owned and directed by credit unions. Memorial Hermann Credit Union has $32 million in assets.

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