CyberSource Revenues Climb 33% in Q2

CyberSource reported revenue for the second quarter of $8.6 million, a 33% increase over one-year ago. Transaction and support services revenue was $6.6 million, software revenue and professional services revenue were each $1.0 million. Net income for the second quarter of 2004 was $0.6 million or $0.02 per share as compared to a net loss of $2.0 million or ($0.06) per share for the same period last year. CyberSource Corporation is a leading provider of electronic payment and risk management solutions.

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Celtron Licenses Mosaic Software’s Postilion

Celtron International’s subsidiary, Orbtech Holdings Limited, has acquired the license to Mosaic Software’s “Postilion Financial Switch.” The license enables the group to become its own
acquiring house, with direct entry into the banking network to switch
and effect financial transactions; and more specifically, on mobile
commerce and credit card transactions originating from the businesses of
CreditPipe and PayCell, both subsidiaries of Celtron. CreditPipe and PayCell will be using the switch primarily to support its
mobile payment products with a number of new services to be added to the
mobile payment platform. These services include EFT payments, debit
order facilities, POS terminal switching, person-to-person payments, and
3DSecure authentication.

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Pronto Banco Debit Card Targets Hispanics

San Antonio-based Payment Data Systems, Secure Cash Network, and GTS Prepaid, have rolled-out the “Pronto Banco” card for the Hispanic market. The Pronto Banco(TM) Twin Card Packet is an ATM/debit card system that allows the consumer to send one of two cards to a friend or relative in another country providing access to funds from either card. Another value- added feature in the Pronto Banco(TM) packet is a prepaid Estafeta envelope allowing the primary cardholder the option of sending the second card to Mexico. Payment Data Systems, Inc., is an Integrated Payments Solution Provider delivering comprehensive, cost-effective solutions to billers and retailers for the processing and management of electronic payments via the Internet, point of sale, or payments taken by Customer Service Representatives or an Interactive Voice Response.

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USTT Receives Six More e-Port Patents

PA-based USA Technologies has been issued six more “e-Port” patents covering wireless networking and interactive point of sale solutions. USA Technologies has an aggressive patent strategy in place intended to solidify a leadership position in markets such as Intelligent Vending(R), point of sale terminals, kiosks, Laundromats, and various other forms of wireless-activated cashless transactions conducted over the Internet. USA Technologies is a leader in the networking of distributed assets, wireless non-cash transactions, associated financial/network services and energy management.

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VISA USA’s Top Executive to Exit in 2005

VISA USA’s president and CEO confirmed yesterday he will not seek another term when his contract expires in September 2005. Carl Pascarella, who oversaw the largest expansion of VISA USA, including the development of consumer debit cards and business credit cards, says he is looking to enter investment banking/management after leaving VISA, and will actively participate in the search for his replacement before then. Pascarella became head of VISA USA in 1993 after overseeing VISA International’s Asia-Pacific region for about ten years. Over the past ten years VISA USA’s annual volume grew from $227 billion to more than $1 trillion. During his tenure as president of Asia-Pacific, VISA?s card volume expanded from $3 billion to $50 billion and cards in circulation grew from 6 million to 58 million. VISA indicated it is looking internally and externally for a replacement.

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Ernex Hires an Eastern Regional Sales Director

Moneris Solutions’ Ernex division has hired Frank Lynch, formerly with Travelers Express Moneygram, Global Payments, and NaBanco, as Eastern Regional Sales Director. Lynch is a veteran in the financial services industry, with over fourteen years experience on the acquiring side of the merchant processing industry. Previously, he was East Coast Director of National Sales with Travelers Express Moneygram, and prior to that held positions in sales with Global Payments and NaBanco. Ernex, a division of Moneris Solutions Corporation, is a provider of innovative real-time marketing solutions including privately branded and multi-merchant loyalty programs, stored-value gift cards, reward fulfillment services and loyalty database hosting services.

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CardSystems Hires Two Industry Veterans

Atlanta-based CardSystems Solutions has hired Cabot Rohrer, former GM of First Data’s Caribbean Operations, to SVP, and William Reeves, formerly with NOVA Information Systems, to VP of Marketing. Rohrer brings to CardSystems over 18 years of experience in the payment processing industry. Prior to joining CardSystems, he was General Manager of First Data’s Caribbean Operations, a subsidiary of First Data Merchant Services. CardSystems Solutions Inc. is a leading provider of integrated payment solutions to financial institutions, Independent Sales Organizations and merchants.

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U.S. Bank Wins the UC Purchasing Card Contract

U.S. Bank Corporate Payment Systems has won the bid to provide purchasing card services to the University of California School System for the next five years. Under the deal, U.S. Bank will issue 3,000 cards to UC employees. UC is one of the nation’s largest school systems with a $14 billion dollar annual budget and had a purchasing volume of more than $180 million in fiscal year 2002. UC encompasses more than 600,000 students and 150,000 employees across 10 campuses, five medical schools and hospitals, remote offices associated with each campus, three law schools and a statewide Division of Agriculture and Natural Resources.

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NPC’s Merchant Card Services Up 15% in Q2

National Processing reported revenue for the second quarter of $132.6 million, up 17% from one-year ago. Net income for the quarter was $14.4 million, up 30% from comparable 2003 net income. Merchant Card Services transaction and dollar volume increased to record levels for the second quarter to 1.2 billion, a 16% gain year-on-year. Merchant Card Services dollar volume processed was $48.4 billion for the quarter, up 15% over 2Q/03. Bank of America announced earlier this week that it acquiring National Processing for $1.4 billion. For complete details on NPC’s second quarter performance visit CardData (www.carddata.com).

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BONUS CARD

Garanti’s “Bonus Card” MasterCard smart card program has topped 3.5 million cardholders, signed over 45,000 sales points where bonus can be earned/redeemed, and has processed more than 49 million euros worth of bonus redemptions since its launch four years ago. Since adding two new cards, “Bonus Plus” and “Bonus Premium,” one-year ago, the issuer has upgraded 343,000 cardholders based on the number of bonuses the cardholder accumulated. Garanti says rewarding the most loyal cardholders with upgraded cards has produced solid activity rates.
Whereas the “Bonus Card” activity rate is at an average of 76%, the “Bonus Plus” activity rate is at 88%, and “Bonus Premium” at 92%. The issuer says that the number of “Bonus Plus” and “Bonus Premium” cardholders only represent 12% of total “Bonus Card” users, but they produce 32% of the program’s total volume. The “Bonus Card” program also offers its merchant partners access to CRM data based on card transactions. Garanti offers online access to all kinds of marketing activities, from consumption habits to demographic structures, from income levels to general profiles of its cardholders, in an easily understandable and measurable/comparable format. All data is aggregate, and if partner merchants wish to make a special communication to a certain customer group, it has to be done through Garanti Payment Systems.

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ECHO Puts Field on the Board

Electronic Clearing House has named Richard Field, former executive for The Bank of New York, Chase and Citigroup, to its Board. Mr. Field brings to ECHO more than 35 years of experience in the financial services industry as an executive for The Bank of New York, Chase and Citigroup. Since retiring, Mr. Field was a founding director of LendingTree, an innovative and successful lending and realty services exchange, which allows consumers to receive competitive loan offers over the Internet. Electronic Clearing House, Inc. provides a complete solution to the payment processing needs of merchants, banks and collection agencies.

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BellSouth and Bank One Launch Reward Cards

Atlanta-based BellSouth and Bank One have teamed to launch a co-branded MasterCard that offers double points to BellSouth customers who elect to have their BellSouth bill paid automatically with the card. The companies are also offering a “Platinum MasterCard” for business customers that includes a reward program offering 3% cash back on purchases made at restaurants, office supply stores, gas stations, building supply stores, and hardware/home improvement centers, plus 1% on all other purchases. There is a $20,000 annual cap on business purchases qualifying for the 3% rebate. The consumer card rewards cardholders with one point for each dollar charged. Each point has a redemption value of approximately one cent. As a special promotion through mid-September, new consumer cardholders will receive a $30 credit on their card when they make their first purchase. Both cards carry a 0% intro rate on purchases and balance transfers, followed by a variable 10.99% to 16.99% depending on credit score.

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