InfoSpace Payment Solutions Reportedly Up for Sale

WA-based InfoSpace is reportedly seeking a buyer for its credit-card payment processing business. The company currently provides card processing to more than 83,000 small and medium-sized Web-based businesses. The firm has retained Thomas Weisel Partners to assist in the sale. InfoSpace Payment Solutions enables merchants to authorize, settle and manage electronic transactions via its IP-based payment gateway, “[Authorize.Net][1].”

[1]: http://www.Authorize.Net

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FleetBoston Buys Circuit City’s Bankcard Portfolio

FleetBoston has agreed to buy Circuit City’s sub-prime VISA and MasterCard portfolio. Under terms of the deal, FleetBoston will pay $1.3 billion for VISA and MasterCard credit card receivables, and related cash reserves, that total about $1.5 billion. Circuit City says it expects the sale to result in an after-tax loss of approximately $89 million, compared with the company’s mid-September estimate of $105 million and its mid-August estimate of up to $200 million. Based on current receivable projections, Circuit City anticipates that the net after-tax cash proceeds from the sale will be approximately $282 million. The agreement includes a transition services arrangement under which employees of Circuit City’s finance operation will continue to service the accounts until final conversion, which is expected to occur in the quarter ending May 31, 2004. In August, the company said that getting out of the bankcards business would enable the company to avoid the large cyclical profit swings that are inherent in finance operations serving primarily non-prime accounts. Circuit City will retain about $1.5 billion in private-label and co-branded VISA credit card outstandings. The deal is expected to close by year-end. (CF Library 6/18/03; 8/13/03; 9/22/03)

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Fiserv Revenues Up 26% for the Third Quarter

Fiserv reported Tuesday that processing and services revenues for the third quarter were $712.0 million, a 26% increase over the third quarter of last year. Net income per share-diluted for the third quarter was $0.41 per share, compared to $0.34 per share for 3Q/02. During the third quarter, Fiserv completed five acquisitions including the EDS Credit Union Industry Group based in Plano, Texas; Chase Credit Research and Chase Credit Systems based in North Hollywood, California; Unisure located in Cincinnati, Ohio; Insurance Management Solutions Group located in St. Petersburg, Florida; and, General American Corporation, based in Pittsburgh, Pennsylvania. Fiserv also signed new business during the third quarter with Cardtronics; SAS Institute; Arch Coal; and, HSBC Mortgage Corporation. Fiserv also substantially increased its relationship with London-based Abbey National Bank to include a two-and-a-half-year outsourcing agreement to support the banks business banking operations. For complete details on Fiserv’s third quarter performance visit CardData ([www.carddata.com][1]).

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

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Diebold ATM Revenues Up 8% for the Third Quarter

Diebold reported record third quarter net income of $48.3 million, a 9.5% increase over 3Q/02. Third quarter revenue was $570.2 million, a 7.6% gain over the third quarter 2002. ATM revenue increased 8.3% for the quarter to $385.2 million. During the third quarter, Diebold signed total “Opteva” ATM orders of more than $40 million. “Opteva” orders from four major financial institutions in North America totaled $23 million. The company also signed two ATM orders from banks in China totaling $17.6 million, an ATM order from a bank in Brazil totaling $6.9 million, an ATM order from a customer in Belgium for $1.7 million, an ATM order totaling $1.5 million in Portugal, an upgrade order for a customer in Colombia for $1.2 million, and, an ATM order for $1.1 million from a bank in Russia. Diebold says strong gains in ATM orders, driven in part by growing acceptance of “Opteva,” have increased the company’s revenue expectations for the fourth quarter. The company is now projecting full-year ATM revenue growth of 4-6%, compared to the previous estimate of 1-4%. For complete details on Diebold’s third quarter performance visit CardData ([www.carddata.com][1]).

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

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Wireless Purchase Transactions With PCS Telemetry Services Launched

PA-based USA Technologies has signed a deal with Sprint to provide nationwide availability of wireless credit card processing and non-cash transactions utilizing the Sprint “Nationwide PCS Network”. Utilizing a certified embedded CDMA module within a network of machines, the solution will make wireless credit card payment technology and networking of distributed assets available to a variety of industries including vending, entertainment, hospitality, commercial laundry and digital imaging. PCS Telemetry Services is a high-speed wireless connectivity solution designed to provide a convenient, cost-effective platform to gather and distribute information across a range of applications, including fleet management, wireless point of sale transactions, ATMs and utility service applications via the enhanced Sprint Nationwide PCS Network. USA Technologies is a leader in the networking of distributed assets, wireless, cashless transactions, associated financial/network services, and energy management.

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PULSE Completes Migration to In-House Switch for EFT Transactions

Houston-based PULSE EFT Association has successfully completed the four-day migration of its Houston switch operations to a new, in-house system. The switch, housed in a new, secure, 24/7 state-of-the-art data center located in Houston, is continuously monitored from the PULSE Command Center where trained technical staff oversee all operations. A subsequent phase of the migration will be the implementation of dual, continuous processing, which will enable PULSE transactions to be processed on either of the PULSE Houston or Dallas platforms simultaneously. PULSE is the nation’s leading independent financial industry-owned and controlled electronic funds transfer network, currently serving more than 4,300 bank, credit union and savings institution members across the country.

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Chase Portfolio Stays Flat, But Losses Decline

J.P. Morgan Chase reported that its credit card outstandings were flat compared to the prior quarter and the year-ago quarter, holding at $50.3 billion. However, charge-offs declined 21 basis points from the second quarter, but remain up by 29 basis points from 3Q/02. Delinquency (30+ days) increased 22 basis points over the second quarter to 4.62%, and up 15 basis points over 3Q/02. Charge volume for the third quarter was slightly lower than one-year ago, $22.9 billion versus $23.0 billion. Chase’s account base increased by 300,000 accounts in the third quarter to end at 30.6 million. However, active accounts declined from 16.4 million in 2Q/03, to 16.3 million for the third quarter. For complete details on Chase’s third quarter performance visit CardData ([www.carddata.com][1]).

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

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Affluent Consumers Want More Time Not Money

American Express yesterday released the results from its “American Express/RoperASW Global Affluent Study” of 11,000 consumers that showed half of high-income consumers around the world would choose to have more time in their lives, rather than more money. Affluents less sensitive to price than non-affluents. Despite the importance of price to many affluent shoppers, understandably perhaps they place less emphasis on it than do non-affluent shoppers. merican Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking.

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Encore Merchant Services Launches eMerchantView

Encore Merchant Services has introduced “eMerchantView,” a new product available to credit union member businesses that use EMS for their credit card processing. This product is an Internet-based solution, which includes six months of history for batch deposit information, transaction details, chargeback information, retrieval information, cardholder account inquiries, and three months of statement history. Encore Merchant Services is a division of Primax Payment Systems, which is headquartered in Wakefield, Massachusetts. Primax Payment Systems currently has over 5,000 merchants located in 48 states.

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MasterCard Makes McWilton Official CFO

MasterCard International last week announced it has named interim CFO and corporate controller Chris McWilton as permanent CFO. Prior to joining MasterCard, McWilton was a partner at KPMG LLP, the international accounting and tax firm, where he headed the Information, Communications, and Entertainment practice of the New York office. MasterCard International is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members’ credit, deposit access, electronic cash, business-to-business and related payment programs.

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Oasis Technology to be Acquired by eFunds for $28 Million

Toronto-based Oasis Technology is being acquired by Arizona-based eFunds. Oasis will receive $28 million in cash under a definitive agreement with eFunds to acquire Oasis’ assets. Oasis, founded in 1989, is a provider of software to enable u-payments through an open platform. The company has 150 clients in 75 countries. The combined organization will now serve more than 200 software customers in over 80 countries around the world. eFunds says the deal will enable it to make an immediate entry into new markets with an open solution platform, expanding its domestic and international customer base. Oasis clients include ABN AMRO, American Express, Citibank, Credicard/Redecard Brazil, Diners, Europay, Golden Card (China), Luottokunta, MasterCard, National Processing Company, Saudi Arabian Monetary Agency, and VISA International. The acquisition is expected to close by the end of this year.

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Security FCU Names NYCE Primary EFT Network for PIN Debit

MI-based Security FCU has signed a seven-year agreement to designate the NYCE Network as its primary provider of PIN debit transaction access to its customers’ deposit accounts. As part of this seven-year agreement, Security Federal will use NYCE for switching all of its POS debit transactions and priority routing all domestic ATM transactions. NYCE Corporation is at the forefront of electronic payments in the U.S., providing consumers with secure, real-time account access 100 million times each month. SECURITY Federal Credit Union is a non-profit financial cooperative headquartered in Flint, Michigan, serving Genesee County and most of Saginaw County. With a membership of over 38,000, SECURITY pledges to assist members with sound management of their financial needs and provide competitive savings plans and economical sources of credit.

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