Global Payments Secures New Credit Line

Global Payments has completed a three-year, $350 million revolving credit facility agreement with a syndicate of U.S. banks, that can be expanded to $500 million. Upon completion, this agreement will replace Global’s existing U.S. lines of credit, which previously totaled $150 million. Global plans to use the credit facility to fund future strategic acquisitions in the payment processing industry, to refinance the $125 million in notes issued in connection with the company’s recent DolEx acquisition, and to provide a source of working capital for general corporate purposes.

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Rahaxi Processing Oy to Deploy NonStop Servers and BASE24 Software

HP and ACI Worldwide have signed a contract with Helsinki-based Rahaxi Processing Oy for upgrading their IT platform. The contract, valued at $1 million, includes HP “NonStop” servers and ACI’s “BASE24” software. Rahaxi currently operates full, on-line connectivity to all Finnish banks and Luottokunta. Rahaxi provides services to more than 1,100 businesses, and the network supports more than 5,000 point-of-sale devices. The new system will enable Rahaxi to meet the latest VISA and MasterCard standards and to pave the way for EMV compliance.

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Delinquency and Charge-Offs Finally Change Directions

Bank credit card delinquency dipped for the third consecutive month and is now sitting at its lowest level in nearly two years. The good news is accompanied by the fact that charge-offs also declined for three straight months and have hit a twelve-month low. Based on securitized and reported card loans, delinquency (30+days) for October declined to 5.43%, compared to 5.47% in September, and 5.49% in August. This is the lowest rate since January 2002, when delinquency came in at 5.41%, according to CardData ([carddata.com][1]). Charge-offs for October dipped to 7.36%, compared to 7.40% in September, and 7.44% in August. This is the lowest charge-off rate since September 2002, when charge-offs hit 7.33%, according to CardData ([carddata.com][2]). For the October period, 60+ day delinquency was 3.08%, 90+ day delinquency was 1.77%, and 120+ day delinquency was 96 basis points. Meanwhile, recovery averages of charged-off card loans has been fairly consistent at 45 basis points, according to CardData ([carddata.com][3]).

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

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Global Payments Certifies EtherDial and CellDial Products

Ottawa-based Precidia Technologies has received certification for its “EtherDial” and “CellDial” products on retail, restaurant and lodging applications and terminals with Global Payments.
The “EtherDial” and “CellDial” IP Access products connect existing dial-based terminals to IP networks via Ethernet or an always on digital wireless connection. The products help merchants in the retail, restaurant and lodging industries to reduce communication costs with the elimination of a dedicated telephone line for transaction processing.

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Edgar, Dunn Hires Gallagher

Edgar, Dunn & Company has hired Hugh Gallagher, formerly VP/GM at eFunds, as engagement manager to the company’s Atlanta office. Mr. Gallagher’s new responsibilities will focus on providing strategic planning and financial advisory services to the firm’s financial services clients, with a particular focus on payment products. Before joining EDC, Mr. Gallagher served as vice president and general manager at eFunds Corporation, where he managed the profitability and revenue growth of the payments business for this multimillion-dollar transaction processing and risk management services firm.

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Holiday Spending to Average $1500 With 75% on Payment Cards

Canadians are expected to spend an average of $1,500 this year buying gifts, decorations, food and other holiday-related goods. A survey for Moneris Solutions by Ipsos-Reid shows that Canadians will spend an average of $761 on gifts and an average of $724 on other holiday-related spending such as clothing, travel and decorations. Almost three quarters of the survey’s respondents
selected debit or credit card as the payment form they will use most often when shopping this season. Three in ten Canadians prefer using credit card and 26% prefer cash. Almost half of all women say debit cards are their first choice for holiday shopping payment options, compared to 38% of men, while almost one-third of men prefer credit cards, compared to only 28% of women. Other survey findings: 58% say “they don’t set a budget and spend as they go”; and 38% of Canadians say they are last-minute shoppers.

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Trans Union Expands Direct Marketing Capabilities

TransUnion has acquired Chicago-based direct marketing solutions provider Douglas-Danielle, in a move to aggressively enter direct marketing. TransUnion says it will immediately integrate Douglas-Danielle’s suite of self-service response solutions into its existing set of direct marketing solutions. Called “SMARTSites,” these Web-based, campaign-specific, response tools address the areas of account acquisition, card/account reactivation, usage, balance transfer, collection disputes and fraud prevention. TransUnion will also incorporate Douglas-Danielle’s agency services, which include marketing functions such as program planning, creative, data and media along with program management, into its operations. Douglas-Danielle was founded in 1998 and has 48 employees.

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ICBA Bancard Names David Hayes as Chairman

ICBA Bancard has elected David Hayes, president and CEO of Security Bank in Dyersburg, TN as chairman, and has elected new directors, including Stephen Stenehjem and Kerby Crowell. Additionally, Ken F. Parsons Sr., chairman of Venture Bank in Lacey, Wash., was re-elected as director of the Western region; Charles L. Saeman, president and COO of State Bank of Cross Plains in Cross Plains, Wis., as director of the Midwest region; Ronald F. Miller, chairman, president and CEO of Shenandoah Valley National Bank in Winchester, Va., as director of the Northeast region; and C.R. “Rusty” Cloutier, president and CEO of MidSouth Bank, N.A. in Lafayette, La., as director of the Southeast region.

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VeriFone Snags Former Hypercom Sales SVP

VeriFone has hired Tom Veasey, an eleven-year veteran of Hypercom and its SVP of Sales, to join its North America sales team. At Hypercom, Veasey was primarily responsible for US processor sales, counting American Express, Concord EFS, First Data, Nova, and Vital among his customers. Verifone is recognized worldwide as the trusted leader in secure electronic payment technologies, provides expertise, solutions and services for today with a smart migration strategy for tomorrow.

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Digital Insight Completes Magnet Deal

Digital Insight has completed the acquisition of Magnet Communications for 1.45 million shares of its stock and $33.5 million in cash. Digital Insight announced its agreement to acquire Magnet on October 23, 2003. As previously announced, the acquisition is expected to be neutral to slightly accretive to non-GAAP pro forma earnings per share in 2004, excluding non-cash charges to amortize certain acquired intangible assets. The Magnet acquisition is not expected to have a material impact on Digital Insight’s previous guidance for non-GAAP pro forma earnings per share for the fourth quarter ending December 31, 2003.

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National Bread Maker Joins the Gift Card Craze

Comdata’s Stored Value Systems and SLC-based Gift Card Solutions have jointly signed Panera Bread to a contract to issue a private-label cash card. The St. Louis-based bakery-cafe operator will offer the new card in its 558 stores in 35 states. There are 149 company-owned and 409 franchised bakery cafes in its nationwide business. Panera has had a long-standing business relationship with GCS, as one of its first gift check clients before migrating to electronic cash cards through the SVS / GCS partnership. Comdata is a wholly owned subsidiary of Ceridian Corporation. Gift Card Solutions is a minority-owned marketing partner of Stored Value Systems.

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