LAN Airline Alliance Offers a Cash Option

The LAN Airline Alliance is now offering a cash payment option. In partnership with Western Union Financial Services, participating carrier’s can now accept cash via their toll-free reservation systems.
More than 46,000 Western Union Agent locations throughout the U.S. and Latin America can process tickets purchased after making a LAN Alliance carrier reservation by phone. After the flight is booked, consumers are given a confirmation number to take to a nearby Western Union Agent location. Tickets must be paid for in full, within 24 hours, to guarantee the reservation. The LAN Airline Alliance includes LAN
Airlines, LAN PERU and LAN ECUADOR.

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Ussery to Retire from his TSYS Exec Post

TSYS announced the planned retirement of Richard Ussery as an executive team member, effective June 30th, however he will continue to serve as a director and chairman of the board. Additionally, under a consulting agreement, Ussery will be responsible for providing advice, counsel and expertise. Prior to Ussery’s current executive position as chairman of the board, he was appointed as the first CEO and president of Total System Services, Inc., now TSYS, when the company became public in 1983. TSYS is one of the world’s largest companies for outsourced payment services.

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Fair Isaac Names a Products Head

Fair Isaac has hired Michael Campbell, formerly of SAP, to handle the newly created position of VP/COO, Products. Steve Braun continues to lead Services, organized by industry segment. Prior to joining Fair Issac, Campbell spent three years with SAP America, Inc. where he held multiple senior leadership roles and ran $1.5 billion in combined revenues. Campbell joined SAP in 1999, when Campbell Software, Inc. merged with SAP. Fair Isaac Corporation provides predictive modeling, decision analysis, intelligence management, decision management systems and consulting services worldwide.

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PayPal Transaction Fees Rise 46% in Q1

eBay reported that gross payment volume for its PayPal business increased 44% year-on-year during the first quarter, and 11% sequentially. The payment service also signed up 7.8 million net new accounts and the number of active accounts posted its highest level to-date. During the first quarter, PayPal handled $6.23 billion of gross payment volume, compared to $5.61 billion in the prior quarter, and $4.32 billion for 1Q/04. PayPal produced $227.1 million in transaction fees for 1Q/05, a 46% jump over the year-ago quarter. At the end of the first quarter, PayPal had 71.6 million accounts, compared to 63.8 million in 4Q/04, and compared to 45.6 million one-year ago. During the first quarter, PayPal handled 110.4 million payments, an 11% increase over the prior quarter, and up 39% from 1Q/04. PayPal captured 58% of eBay’s total $10.6 billion in total sales volume during the quarter. PayPal’s 1Q/05 transaction revenue rate was 3.64%, compared to 3.60% one-year ago. The processing expense rate for the first quarter was 1.15%, compared to 1.25% for 1Q/04. PayPal’s transaction loss rate came in at 30 basis points, down 3 basis points from one-year ago. For complete details on eBay/PayPal’s first quarter performance, visit CardData ([www.carddata.com][1])

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
1Q/04 $4.3 billion 45.6 million
2Q/04 $4.3 billion 50.4 million
3Q/04 $4.6 billion 56.7 million
4Q/04 $5.6 billion 63.8 million
1Q/05 $6.2 billion 71.6 million
SOURCE: CardData (www.carddata.com)

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

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TransFirst Teams with TenderCard for STV

Dallas-based TransFirst has teamed with TenderCard, a provider of closed loop, stored-value/gift and loyalty card solutions to offer STV cards to small and mid-size merchants. This new product offering will allow merchants to strengthen customer loyalty, increase traffic and enable small- to mid-size merchants to compete with larger retailers. TenderCard hosts gift cards and rewards programs for major merchants and chains, delivered via its proprietary Web-based IMATTS software platform. TransFirst 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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First TV Interactive MasterCard Launched

Barclaycard and BSkyB have launched MasterCard’s first interactive TV credit card. The new “SkyCard MasterCard” has been fully integrated with the Sky box to enable U.K. users to shop through the box and receive rewards. The “SkyCard” is also the first to reposition the MasterCard branding and hologram, making the SkyCard unique in being the first fully portrait card design, according to this week’s issue of CardFlash International. Under the “SkyPoints” feature cardholders are rewarded with up to 3% of their spending on the card, with a minimum of 1%. The points can be redeemed for rewards such as the monthly Sky digital subscription fee, “Sky Box Office” pay-per-view movies and events, and “PremPlus” football games. Barclaycard and BSkyB are also offering a series of prize drawings for new cardholders including a 12 day expedition to Egypt accompanied by a National Geographic expert worth GBP 7,500. The new credit card has a 0% interest rate on purchases and balance transfers until January 2006 and a typical rate of 16.9% APR variable. The launch is being supported by a comprehensive marketing campaign involving a 3.5 million direct mail campaign, magazine and television advertising, including Sky’s active and text channels. BSkyB has more than seven million direct-to-home customers across the UK.

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RBS Lynk Inks SunStops for Processing

Southwest Georgia Oil Company has signed a multi-year credit, debit and check transaction processing agreement with Atlanta-based RBS Lynk that also includes its fuel card program for commercial accounts. Southwest Georgia Oil Company is a multi-state petroleum marketer operating under the trade name of SunStops in Georgia, Florida, Alabama and Mississippi. RBS Lynk is a single-source provider of electronic payment processing services.

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TNS First Quarter Revenues Edge Up 5%

TNS reported first quarter revenue of $60.2 million, a 4.9% increase. First quarter GAAP net income was $1.5 million, versus a first quarter 2004 GAAP net loss of $5.1 million. However, revenue from the POS Division decreased 19.8% to $23.2 million on 1.51 billion transactions from $28.9 million in first quarter 2004 on 1.86 billion transactions. The decrease in first quarter 2005 POS Division revenue is primarily due to lower transaction volumes with a major customer and to a lesser extent, anticipated declines in revenues as a result of negotiated price reductions upon the renewal of certain contracts in 2004. During the quarter, TNS made an expansion into the Japanese retail POS market through five-year deal with Japan Card Network to provide dial-up transaction transport. TNS also signed a renewal with CardSystems Solutions to be its primary transaction network provider in the USA and inked a three-year contract with First Data Iberica to act as sole provider of dial-up connectivity in Spain. For complete detail on TNS’ first quarter performance, visit CardData (www.carddata.com).

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Certegy Q1 Net Income Soars by 28

FL-based Certegy posted first quarter net income of $23.2 million on revenues of $262.5 million, a 28% and 10% increase, respectively. Card Services revenue rose 11% to $154.0 million and Check Services revenue increased 8% to $108.5 million. Card Services revenue increased by 9.2% in North America and 19.7% internationally. Certegy says e-banking, card loyalty programs and institution merchant processing drove the gain in Card Services. A further breakdown shows that Card Issuer Services revenue increased 9.2% to $128.7 million and Merchant Processing rise 18% to $22.8 million. During the first quarter, Certegy processed 50.3 million cards, 48% domestically. The transactions involved 40.1 million accounts. Certegy projects that revenue growth for 2005 will be between 10% and 12%, driven by low-double digit revenue growth in Card Services and high single-digit growth in Check Services. For complete details on Certegy’s first quarter performance, visit CardData ([www.carddata.com][1])

CERTEGY REVENUE HISTORICAL
1Q/04: $239.3 billion
2Q/04: $284.1 billion
3Q/04: $262.7 billion
4Q/04: $281.8 billion
1Q/05: $262.5 billion
Source: CardData (www.carddata.com)

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

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MoneyGram First Quarter Income Rises 47%

Minneapolis-based MoneyGram International posted first quarter income from continuing operations of $27.8 million, a 47% gain from 1Q/04. Revenues for the quarter increased 19% to $227.9 million. Payment Systems revenue increased 15% to $80.8 million in the first quarter. The Global Funds Transfer segment, which consists of money transfer (including urgent bill payment) and retail money orders, revenue increased 22% to $147.1 million. During the quarter, MoneyGram renewed a multi-year agreement with Wal-Mart for money transfer, urgent bill payment and money order services. The money transfer agent network grew 15% from the first quarter of 2004 to nearly 79,000 agent locations. The Company says it will introduce the MoneyGram pre-paid debit/stored value card during the second quarter. For complete detail on MoneyGram’s first quarter performance, visit CardData ([www.carddata.com][1]).

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

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Fiserv First Quarter Income Climbs 45%

WI-based Fiserv reported first quarter processing and services revenues of $882.3 million, a 9% increase over 1Q/05. Net income for the quarter rose about 45% to $228 million. During the quarter, Fiserv signed a 12-year agreement to provide check processing and image archive services for Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp. Based on estimated volumes, the agreement will generate projected annual revenue of $460 million. Significant client renewals and other new relationships during the first quarter include DaimlerChrysler Services North America, HomeBanc Mortgage, and Baltimore County Savings Bank. For complete detail on Fiserv’s first quarter performance, visit CardData ([www.carddata.com][1]).

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

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