InfoSpace 2Q/02

WA-based InfoSpace, a provider of wireless and Internet software and application services, reported Tuesday that its Merchant Services unit processed more than 20 million transactions, accounting for more than $1.5 billion in total dollar volume during the second quarter. InfoSpace’s channel for selling merchant services has grown to include more than 1,200 resellers. Overall 2Q/02 revenues were $33.5 million with a net loss of $13.5 million. Merchant Services accounted for 38% of total revenue, up from 36% in the first quarter. During the quarter, more than 10,000 new merchant accounts were established. Notable merchants added during the quarter included Seattle’s Best Coffee, Cleveland Indians Baseball Company and the Nature Conservancy Catalog. For complete details on InfoSpace’s 2Q/02 results visit CardData ([www.carddata.com][1]).

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

Details

ATM SURCHARGES

China Construction Bank has begun levying a 2 yuan transaction fee for customers using an ATM belonging to another bank. This is the first time a Chinese bank has levied such fees which are not sanctioned by the China’s central bank. Furthermore, the People’s Bank of China and the State Development Planning Commission recently banned all bank fees pending further review. The central bank and the ministry which regulates prices are now developing detailed rules on service charges. The new ATM fees by CCB went into effect this week and currently apply only to Beijing customers. The PBC and SDPC rules do not apply to foreign banks operating in China.

Details

iDine 2Q/02

Miami-based iDine Rewards Network reported total net operating revenue for the second quarter of $18.8 million and net income of $7.5 million. Gross dining sales for the quarter amounted to a record $65.4 million, representing an increase of 32.3% over the corresponding prior year period’s dining sales of $49.4 million and a 14.8% increase over the $57 million reported in the previous quarter. The company offers its members a variety of dining savings and rewards programs at more than 8,600 restaurants throughout the USA via a registered credit card platform. The Company currently has 12.8 million credit cards registered through 9.8 million enrolled accounts. Dining incentives are offered through the Company’s dining programs, either branded under the name iDine or provided through co-branded and private label partnerships, such as airline frequent flyer programs, club memberships or other affinity organizations. For complete details on iDine’s 2Q/02 results visit CardData ([www.carddata.com][1]).

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

Details

Fair Issac/HNC Update

The merger of Fair Isaac and HNC Software was approved yesterday by 98% of Fair Isaac stockholders and 70% of HNC’s stockholders. Under the merger agreement, HNC stockholders would receive 0.519 of a newly issued Fair, Isaac share for each share of HNC common stock. Following the merger, HNC stockholders would own approximately 36% of the total outstanding stock of the combined company.

Details

Cap One Educates Latinos

San Francisco-based Consumer Action and Capital One announced the third phase of the “Money Wi$e” program which targets Latinos. Through the Money Wi$e partnership, the growing Latino population has access to free brochures in English and Spanish that teach responsible banking methods in simple, straightforward terms. According to the Federal Reserve Bank, nearly 13 million or one out of four Latinos living in the United States do not have bank accounts.

Details

PayPal Profits

PayPal reported yesterday its second consecutive quarter of profits. Revenues for the second quarter totaled $53.8 million and net income was $529,000. PayPal estimates third quarter revenues could range from $56 million to $57 million. For the second quarter, PayPal earned an average transaction revenue rate of 3.33% of total payment volume. PayPal incurred an average transaction processing expense rate of 1.14% of total payment volume; the percentage of payment volume funded by credit cards declined to 46.2% in the second quarter, from 50.5% in 2Q/01, and 47.7% in the first quarter of this year. Transaction revenues less transaction processing expenses and less the provision for transaction losses, which amounted to 0.38% of total payment volume, resulted in a gross margin of 54.3% for the second quarter of 2002. For the second quarter, the payment volume sent to business and premier accounts amounted to 90% of total payment volume. This volume increased to $1.45 billion in the second quarter of 2002, representing 10% growth from $1.31 billion in the first quarter, and 119% growth from $663 million in the second quarter of 2001. In the second quarter, registered accounts grew by 2.5 million to 17.8 million. Business and premier accounts grew by 480,000 in 2Q to a total of 3.7 million, and international accounts grew by 399,000 to a total of 1.8 million. For complete details on PayPal’s 2Q/02 results visit CardData ([www.carddata.com][1]).

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

Details

Fish & Chips

USA Payment Systems said Tuesday it is using Transaction Network Services to transport payment card authorizations from ATMs in the UK and from debit-card enabled slot machines in the U.S. TNS is providing the network for USA Payment Systems to process transactions from ATM/debit-card enabled slot machines located in U.S. casinos. The application, which is currently testing in one casino, will allow ATM/debit cardholders to receive cash right from the machine, instead of having to acquire cash through ATMs or credit card advances. USA Payment Systems is targeting more than 400,000 slot machines for the application. USA Payment Systems drives over 60,000 credit card/POS terminals, 1500 ATMs, and processes over 5 million transactions per month. Major customers of USA Payment Systems include Bank of America and Global Cash Access.

Details

New Stock Lows

The capitulation in the stock market may drive card-related stocks to new 52-week lows today. Yesterday the Dow fell to 7702, a 23% decline for this year, while the S&P 500 fell to its lowest point since May 1997. The collapse in the U.S. stock market reverberated around the world overnight and may create some panic selling today in the US markets. In after-hours trading, MBNA was trading at $14.15 and AmEx was trading at $28.97. Providian was down slightly in after-hours trading, while the other card stocks were unchanged. Metris hit a new low yesterday as the sub-prime credit card market continues to get battered.

TOP CARD STOCKS
COMPANY 7/23 CLOSE 52-WK LOW
American Express $28.66 $24.20
MBNA $13.80 $13.54
Capital One $30.99 $29.99
Providian $ 2.84 $ 2.00
Metris $ 2.35 $ 2.35

Details

NAR VISA Expands

First USA is expanding its National Association of Realtors VISA program to include the “Value Miles Reward Program” beginning in November. Through the partnership, NAR members, national, state and local association staff and their immediate families can take advantage of the exclusive Realtor Platinum Visa card — either a personal or business credit card. Cardmembers enjoy one of the lowest rates available on purchases and balance transfers with no annual fee.

Details

SMART INLAY EXEC

NanoPierce Technologies’ ExypnoTech subsidiary has named Ronald Krippendorf as the production manager for the high-volume production of smart inlays in the new ExypnoTech production facility located in the IGZ Rudolstadt, Germany. The company also announced that after completing a two week acceptance procedure, ExypnoTech has taken delivery of its first high-speed production line for RFID smart inlays from F&K Delvotech. RFID inlays are used to produce smart labels, smart cards and other RFID products. RFID is currently employed for tracking and identifying luggage, shipping containers, express mail, rail cars, personal access, automated toll collection, article surveillance, library books and vehicle immobilizers, to name just a few applications.

Details

ISO EXIT

Humboldt Bancorp has signed a definitive agreement for the sale of its proprietary merchant processing division to iPayment Holdings for $34 million in cash. Humboldt says it expects to recognize an after-tax gain on the sale of $18 million which is expected to close by the end of August. Under terms of yesterday’s deal, Humboldt will continue to serve as the sponsoring financial institution for IPH for a period of up to eight months after closing. Humboldt intends to completely exit the Independent Sales Organization sponsorship business as its remaining ISO contracts expire over the next 18 months. The majority of the remaining ISO processing is with a single national firm that provides financial guarantees against any loss incurred by Humboldt. IPH is based in Nashville and currently provides merchant card services for approximately 60,000 businesses throughout the country. No job eliminations are expected in connection with the transaction.

Details