ADS Second Quarter Revenues Rise 15%

Dallas-based Alliance Data Systems posted record first quarter revenue of $563.8 million, a 15% increase over the year-ago quarter. Net income dipped 2% to $44.1 million. Transaction Services revenue decreased 2% in the quarter to $188.7 million, compared to the prior year. Credit Services revenue increased 14% in the second quarter to $201.4 million, compared to 2Q/06. Marketing Services revenue increased 26% in the quarter to $262.5 million compared to the year-ago period. During the second quarter, the Company announced that it had entered into a definitive agreement to be acquired by Blackstone and the deal should close by year-end. The Company also signed multi-year contract renewals with several long-standing sponsors including A&P Canada, Goodyear Canada and Forzani Group, Canada’s largest sporting goods retailer. The Canadian loyalty business recorded a strong quarter of double-digit organic growth through the continued expansion of the “AIR MILES Reward Program.” For complete details on ADS’ second quarter performance, visit CardData ([][1]).

2Q/06: $490.5 million
3Q/06: $506.6 million
4Q/06: $524.5 million
1Q/07: $549.2 million
2Q/07: $563.8 million
Source: CardData (


Danal Adds M-Business & Technology Execs

Mobile payment service provider Danal has appointed Denise Archer, previously SVP at BGCI as VP of mobile business development and David Cho, former CTO at Secos, as VP of technology. Archer will be responsible for developing strategic relationships for Danal with mobile carriers and Mobile Virtual Network Operators (MVNO) in the U.S. Cho will be responsible for all of Danal’s technology design, development, and strategy, including mobile carrier integrations, software development, and payment system management. Danal enables consumers to purchase goods and services online by charging their regular mobile phone bills.

PayPal’s Q2 Net Revenues Jump 34%

eBay reported that PayPal had 153.1 million total accounts at the end of the second quarter, a 35% increase from one-year ago. Total payment volume rose 32% to a record $11.7 billion which includes payments initiated through the PayPal system but excludes its payment gateway business. The number of active accounts hit 35.9 million as of June 30th, its highest level to-date. During the second quarter, PayPal handled 172.9 million payments, a 2% increase over the prior quarter, and up 21% from 2Q/06. PayPal’s 2Q/07 transaction revenue rate increased to 3.70% from 3.69% in the prior quarter. The processing expense rate for the second quarter was 1.12%, compared to 1.02% for 2Q/06. PayPal’s transaction loss rate came in at 29 basis points, up 2 basis points from one-year ago. PayPal net revenues totaled a record $454 million in the second quarter, a growth rate of 34% over the $339 million reported in one-year ago. For complete details on eBay/PayPal’s second quarter performance, visit CardData ([][1]).

2Q/06: $ 8.9 billion 113.7 million
3Q/06: $ 9.1 billion 122.5 million
4Q/06: $11.0 billion 133.0 million
1Q/07: $11.4 billion 143.3 million
2Q/07: $11.7 billion 153.1 million
SOURCE: CardData (


Diebold Sells 100,000 Opteva Machines

Diebold is celebrating the sale of its 100,000th Opteva ATM machine to MO-based Commerce Bank. The sale carries on the 20-year relationship between Diebold and Commerce. Diebold and Commerce will commemorate the event with a ribbon cutting and demonstration of the ATM’s features for the visually impaired by the National Federation of the Blind. The NFB endorses the Opteva units for meeting global accessibility guidelines and for helping to enhance the ATM experience for the visually and physically impaired. The 100,000th machine is part of an order of more than 300 Optevas purchased by Commerce, which serves customers through approximately 400 ATMs in the Midwest, primarily in Missouri, Kansas, Illinois, Oklahoma and Colorado. Installation of the ATMs is scheduled to occur in those four states throughout 2007. Commerce Bank is the principal subsidiary of Commerce Bancshares, Inc., a $15.2 billion regional bank holding company.

Brookwood Capital Facilitates a TNB Deal

Brookwood Capital has announced that TNB Card Services has established a credit card partnership with TX-based Gulf Coast Educators FCU. Under this agreement, TNB purchased Gulf Coast’s existing credit card portfolio and will issue credit cards under the Gulf Coast Educators FCU name. Based on NCUA reporting, the existing portfolio included more than 5,000 credit card accounts and $5.6 million in receivables among Gulf Coast’s nearly 34,000 members. The credit union has approximately $250 million in assets. Brookwood Capital is an advisor to credit unions related to the credit card industry, including brokerage, consulting and advisory services to credit card issuers nationwide.

BofA Q2 Credit Card Profits Slip 44%

Bank of America reported that its Card Services division had Q2 revenue of $6.43 billion, an increase of 2% compared to the second quarter of last year and net income declined 44% to $961 million due to higher credit costs. Managed U.S. consumer and business credit card loans at the end of the second quarter increased 4% year-on-year to $150.2 billion. Second quarter Card Services charge-offs were 5.20%, compared to 4.81% in the prior quarter and 3.55% one year ago. The managed 30+ day delinquency declined to 5.24%, compared to 5.44% in the first quarter and 4.73% for 2Q/06. BofA also reported that its merchant acquiring business handled $91.5 billion in processing volume during the second quarter from total transactions of more than 2.0 billion. Purchase volume for U.S. consumer and business cards was $61.4 billion for 2Q/07 compared to $55.5 billion for 1Q/07 and $59.8 billion for 2Q/06. For complete details on Bank of America’s 2Q/07 performance, visit CardData ([][1]).

(U.S & International Cards)
2Q/06: $162.1 billion
3Q/06: $164.5 billion
4Q/06: $170.5 billion
1Q/07: $165.4 billion
2Q/07: $169.9 billion
Source: CardData (


U.S. Merchant Systems Offers a Guarantee

Guarantee provider Assurz is partnering with U.S. Merchant Systems to offer a “100% Satisfaction Guarantee” to e-commerce retailers. If for any reason a buyer is unhappy with his or her purchase within the first 90 days after delivery, Assurz will refund the price including tax and shipping, and provide packaging materials as needed. Assurz does not charge restocking fees, and even pays the return shipping fee. Merchandise is liquidated in secondary channels to avoid competing with participating merchants. The partnership will provide first class customer service and drive sales for U.S. Merchant’s over 3000 active e-commerce merchant outlets. U.S. Merchant Systems is a Merchant Service Provider for VISA and MasterCard.


Shanghai Pudong Development Bank Credit Card Center (SPDBCCC)
and IHG (InterContinental Hotels Group) have launched a co-branded
Priority Club Rewards VISA. This is the first partnership between a
Chinese bank and IHG for which customers earn points on spending,
double points on spending in IHG hotels and bonus points upon activation.
Points can be redeemed for free stays in any of IHG’s 66 hotels in China,
more than 3,700 hotels worldwide and discounts with 40,000 special
merchants of the Citigroup. Priority Club Rewards has over 33 million
members globally, 600,000 of whom reside in mainland China, and IHG
has a monthly average growth of 15,000 Chinese members. IHG also owns,
manages, leases or franchises over 3,700 hotels and 558,000 guest rooms
in nearly 100 countries and territories.

GE Money Profits Rise 8% Despite WMC

GE reported that revenues for its Consumer Finance unit, now known as GE Money, climbed 17% in the second quarter to $6.1 billion. However, profits grew by 8% to $952 million, compared to one-year ago. despite a loss at its U.S. mortgage business, WMC. GE made the decision to exit this business and substantially reduced its exposure by selling $3.7 billion of WMC loans in the quarter. During the second quarter, GE Money has signed a deal to be the exclusive issuer of the “Lowe’s Platinum VISA” credit card and to continue providing private label and co-branded credit programs for Lowe’s Companies; Ohio-based The Andersons retail stores and GE Money have signed an agreement to extend its 10 year relationship with the “Andersons Credit Card” consumer financing program; GE Money and eBay announced plans to launch an “eBay MasterCard” in June; and the new Wal-Mart “MoneyCard” is being launched nationally with GE Money. For complete details on GE’s second quarter performance, visit CardData ([][1]). (CF Library 5/2/07; 5/22/07; 6/15/07; 6/20/07)

Income Revenues
2Q/06: $880 million $5268 million
3Q/06: $916 million $5590 million
4Q/06: $875 million $5811 million
1Q/07: $851 million $5807 million
2Q/07: $952 million $6145 million
Source: CardData (


CashBox Executive Steps Down

Cash Box has appointed company co-founder, Matt Thomas, as Chief
Technical Officer. Thomas has previously been working on the company’s
design and implementation of IT and technical infrastructures along with
operational teams and business processes. This appointment comes after
the appointment of Ciaran Morton to CEO, and David Auger as CFO and
Company Secretary.

ICMA Intros Advanced Card Education

The International Card Manufacturers Association has introduced “Advanced Card Education”, the first accreditation program for the card manufacturing industry. The ACE designation is awarded to people with a broad and detailed knowledge of card manufacturing and processes who successfully complete a rigorous exam. Applicants must be working for an ICMA member company and have a minimum of three years experience working in the card industry in any of the following areas: Card manufacturing, personalization or service bureau or a supplier to the card industry. The first designation, “ACE-M”, covers basic card manufacturing; future designations planned include “ACE-A” (advanced technologies) and “ACE-P” (personalization). ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants.

Nomad Software Becomes Nomad Payments

OTP Bank has upgraded its network of nearly 2,000 ATMs to Level Four’s
“BRIDGE:test” ATM software. “BRIDGE:test” is an automated testing
solution for Windows-based ATM applications and will enable OTP 80%
time savings for end-to-end testing of ATM software applications. The
software is part of a suite of open ATM software products designed to
maximize ATM investment by saving time and money through interoperable
product components. The entire BRIDGE suite offers
solutions for installation, testing and monitoring as well as run-time ATM
software. OTP Bank has a network of 440 branches and nearly 2000 ATMs,
making it the largest retail bank in Hungary. Headquartered in Budapest,
bank has 8,200 employees supporting over 11 million customers in 9