ChexCard Goes on the Green Dot Financial Network

Texas-based PayPro and its ChexCard subsidiary has signed a deal with Next Estate Communications to enable ChexCard’s prepaid cards to be loaded at Next Estate’s “Green Dot Financial Network” retail locations. The Green Dot Financial Network, with over 13,000 locations nationwide, provides cash acceptance services including prepaid card reloading and remittance cash collection. Pay Pro’s stored value debit cards are sold under the brand names CHEXCARD(R) and MYBANKCARD to businesses, governmental agencies and individuals.

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Professional Photographers Join OneLynk Alliance

The Professional Photographers of California has joined RBS Lynk’s “OneLynk Alliance” program to offer members a complete range of processing services. Members of the PPC will be able to leverage several services designed for flexibility including MobileLynk, a new wireless payment device that allows payments to be processed anywhere cellular coverage is available and gift card promotion opportunities. Professional Photographers of California, Inc. is a non-profit, 501(c)6 trade association of professional photographers, employees, suppliers and others allied to the profession. RBS Lynk is a single-source provider of electronic payment processing services and is a member of The Royal Bank of Scotland Group.

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American Express Gears Up for a Chicago Card

American Express plans to launch a credit card offering special rewards tied to Chicago. The “IN:CHICAGO Card,” to be launched this fall, will target young adults in the city. The card will come with no annual fee, a 0% introductory APR and a rewards program just for Chicagoans. The “IN:CHICAGO Card” is the second city-centric credit card from American Express. One-year ago AmEx introduced the “IN:NYC Card” for New Yorkers.

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Parents Top Concern: Personal Financial Skills

According to a recent VISA survey, parents of high school students said developing good personal financial skills and being able to handle their money ranked ahead of following the wrong crowd and drugs/alcohol use in terms of concerns parents have for their children’s futures. In response, Visa offers a free, online financial education program called Practical Money Skills for Life, which contains comprehensive, interactive materials to help parents work with their children to develop strong financial skills. Visa USA is the nation’s leading payment brand and largest payment system with cardholders in over 150 countries carrying more than 1 billion Visa-branded cards, accounting for more than $3 trillion in annual transaction volume.

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eCommLink and TransFirst Partner for Processing

Houston-based eCommLink has signed TransFirst to provide processing for online merchant accounts, expanding its open platform applications for stored value and debit transactions. TransFirst’s epayment merchant application will allow on-line businesses to more quickly and efficiently coordinate all aspects of order capture, fulfillment and merchant services. eCommLink’s enterprise payment platform permits a broad range of stored value loading and disbursement options. TransFirst provides of transaction processing services and payment enabling technologies and currently processes approximately $20 billion in annual sales volume for more than 160,000 merchants and more than 760 financial institutions.

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Cap One Delinquency & Charge-Offs Head North

Capital One’s managed delinquency ratio jumped by 17 basis points last month. For July, Cap One also reported that managed charge-offs slipped upward by 6 basis points. Delinquency increased to 3.66% in July, compared to 3.49% for June, 3.43% for May and 3.84% in January. Delinquency one-year ago stood at 3.77%. Charge-offs came in at 4.02% in July, compared to 3.96% in the prior month and 4.10% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. At the end of June, Capital One had $83.0 billion in global outstandings. U.S. card outstandings of $46.4 billion were up 2.7%, compared to one-year ago. For complete details on Capital One’s monthly metrics and 2Q/05 performance, visit CardData ([www.carddata.com][1]).

Month Charge-offs Delinquency
Jul 04 4.10% 3.77%
Aug 04 3.87% 3.80%
Sep 04 4.18% 3.90%
Oct 04 4.10% 3.94%
Nov 04 4.35% 3.87%
Dec 04 4.63% 3.92%
Jan 05 4.19% 3.84%
Feb 05 3.96% 3.65%
Mar 05 4.35% 3.45%
Apr 05 4.22% 3.37%
May 05 4.10% 3.43%
Jun 05 3.96% 3.49%
Jul 05 4.02% 3.66%
Source: CardData (www.carddata.com)

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

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Delta’s Card Deal Could Trigger a Chapter 11

Delta Airlines yesterday announced it is delaying the filing of its 10-Q for the second quarter while it negotiates a new contract to process its payment card transactions. Delta says it is in negotiations with a third party to serve as its new VISA/MasterCard credit card processor to replace its existing processing contract, which expires on August 29th. Delta says the potential processor is requiring a significant cash reserve deposited with the processor immediately upon start of the new contract for tickets purchased using VISA or MasterCard but not yet flown. The airline says it is exploring alternatives to offset a portion of the cash reserve but there can be no assurance whether or when it can implement any such alternative. There is speculation that Delta’s delicate cash situation and the hefty deposit for card sales could trigger a Chapter 11 bankruptcy filing.

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AirPlus and Outtask to Integrate Their Systems

AirPlus International and Outtask have agreed to integrate Outtask’s “Cliqbook” online bookings with AirPlus corporate payment solutions in addition to pre-populating the Outtask expense management system “Vinnet” with AirPlus’ descriptive billing information. The AirPlus invoice will be sent to Vinnet, streamlining reconciliation and expense reporting. AirPlus International provides business travel payment solutions, offering UATP-based central payment accounts, corporate cards and online management information tools. Outtask, Inc.provides corporate travel and expense (T&E) automation solutions.

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Punitive APRs Top 30%; Average Now 27.48%

For the first time in U.S. credit card history, interest rates charged by some major U.S. issuers have slipped above the 30% barrier. Due to the increase in the prime rate last month to 6.25%, Chase, Citibank and Bank of America are now charging some cardholders this month an annual interest rate of 30.24%. Chase (#1), Citibank (#2), and Bank of America (#4) levy a punitive interest rate of prime + 23.99%. According to CardWeb.com’s “August Credit Card Rates,” as published since 1988 in the Wall Street Journal, the other top ten issuers charge punitive interest rates ranging from 19.99% to 29.99%. MBNA, which recently experienced some backlash over its pricing policies, assesses the lowest punitive rate of 19.99%. The average punitive rate charged by the top ten issuers is now 27.48%.

HIGHEST RATES CHARGED BY TOP ISSUERS
RANK/ISSUER A.P.R.
1. JPM Chase 30.24%
2. Citibank 30.24%
3. MBNA 19.99%
4. Bank of America 30.24%
5. Discover 26.24%
6. Capital One 27.24%
7. American Express 28.24%
8. HSBC 28.49%
9. Providian 29.99%
10. Wells Fargo 23.90%
AVERAGE: 27.48%

Source: CardWeb.com
August Table of Credit Card Rates as
published 8-8-05 in The Wall Street Journal

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ECHO Revenues Up 16% in the Second Quarter

Electronic Clearing House reported that second calendar quarter revenue increased 15.6% to $14.3 million. ECHO says the growth was organic from existing merchants and from other marketing initiatives. Bankcard and transaction processing revenue jumped 11.1% to $10.6 million. Check-related revenue grew 30.5% to $3.7 million. ACH transactions processed increased 29.5% to 7.9 million transactions. The Company reported net income of $433,000 as compared to $144,000 for prior quarter and $651,000 one-year ago. For complete details on ECHO’s second quarter performance, visit CardData ([www.carddata.com][1]).

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

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Cashless e-Port Solution Tops 300 Vendors

Pennsylvania based USA Technologies reports it has shipped its “e-Port” cashless transaction device for vending machines to 60 different operators this year, bringing the total to more than 300 vending operators, business partners, soft drink bottlers and other businesses that have chosen “e-Port” as a means of conducting wireless, cashless transactions. Some vendors are reporting a decrease to vandalism and theft from their vending machines once the e-Port cashless system is installed. Others are reporting substantial increases in sales as consumers use their credit and debit cards to make multiple purchases. USA Technologies is a network of wireless non-cash transactions, associated financial/network services and energy management.

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MasterCard Global GDV Up 12% in Q2

Growth in MasterCard International’s gross dollar volume and purchase volume growth continued in double digits during the second quarter. Gross dollar volume of $408.4 billion was up 12.3% year-on-year while purchase volume increased 14.5% to $290.1 billion. Purchase transactions for the second quarter hit 4.12 billion compared to 3.75 billion in the prior quarter. Globally, MasterCard has 716.3 million cards-in-force linked to 615.0 million accounts. The number of acceptance locations worldwide as of June 30th was 23.3 million compared to 23.7 million for the first quarter. For complete details on MasterCard’s second quarter results, visit CardData ([www.carddata.com][1]).

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

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