Mounting opposition to the Durbin Interchange amendment to the Dodd-Frank Act, set for full implementation this Summer, now includes the American Bankers Association (ABA). As disclosed in a letter recently addressed to Senator Durbin, the ABA insists the Durbin amendment requires the Fed to interfere in the interchange fee structure and impact the rate of…
Always a reliable performer, Heartland Payment Systems announced its 4Q/10 net income of $6.6 million and total revenues of $478 million. This was up on total revenue of $420 million in the year ago quarter, but down marginally on $499 million posted in 3Q/10. Performance throughout the quarter was due in great part to Heartland having closed on a new credit facility in November, with a five-year $100 million term loan and a $50 million revolving credit facility with a five-year commitment. While adjusted Net Income was up to $7 million on the $5.9 million posted a year ago, additional 4Q/10 figures show a net revenue of $110.5 million, up 5.1% year-over-year; a 35.7% increase in operating income year-over-year; operating margin on net revenue of 12.9%; and same store sales up 3.8%, up almost 100% since 3Q/09. For all of 2010, GAAP net income was $34.5 million; net revenues for 2010 were $444.9 million, up 6% compared to 2009; adjusted net income and Earnings per Share for fiscal 2010 were $25.8 million, compared to $29.3 million in 2009.
Usually a solid performer, Diebold felt a 4Q/10 loss from continuing operations of ($119.9) million from the $7.9 million gained in the year ago period. Revenue was up though by 9%, posting a solid $791.0 million from 4Q/09 thanks to global orders having increased 7%, a growth of 12% since 4Q/09. Every region of the world was good to Diebold throughout the quarter with revenue growth from 3% in EMEA on the low end to 19% in Latin America. Performance was thanks to financial self-service orders in North America having grown in the recovery and a growing demand for deposit automation solutions. While Latin America and Asia are reliable markets for the Company, Europe continues to prove a challenge. Diebold is seeking to tap the market and re-engineering its infrastructure to free up more resources, after experiencing less than 3% on the Continent. Meanwhile, total operating expenses as a percentage of revenue for the quarter was 41.9%, an increase of 21.5% Y/Y, and included a net $0.3 million of restructuring charges and $9.2 million in restructuring charges thanks to U.S. workforce reduction. For the full-year 2010 operating loss was (0.1%) of revenue, down 5.6% from the year ago period while non-GAAP operating profit was 6.9%, up 0.7% year-over-year.
Fundtech global transaction banking put up record-crushing 4Q/10 revenues of $37.8 million, a 15% increase over the $32.8 million posted 4Q/09 and a 5% increase over the $36.0 million in 3Q/10. Net income saw astronomical growth to $5.8 million compared $3.4 million a year ago and $2.9 million in just the previous quarter. The entire 2010 year wasn’t anything the Company had to complain about either with revenues up 20% to $141.9 million from $117.8 million in 2009. Net income in 2010 was $12.5 million compared with net income of $4.7 million in 2009. Growth since 2009 was all the buzz in the board room, with operating income having grown a whopping 229%; cash management up 14%; messaging having grown by 21%; and the payments segment up 24%. This was thanks in some part to Fundtech having closed 128 new deals and added 12 new bank customers in 4Q/10; closed 15 new system sales with banks; and having implemented SEPA direct debit systems in 24 European banks for some serious revenue streams. Subsequently, Fundtech sees good things to come in 2011 with major expansion into Latin America and China for strong and steady growth with projected revenues between $154 million and $159 million.
Capital One has made available its “Journey” Student Rewards Credit Card to help college students build their credit with confidence and reward them for responsible credit use. The card offers straightforward cash rewards with 1% cash back on all purchases and an additional 25% bonus on the cash earned each month that cardholders pay their bill on time. With a variable APR of 19.8% on purchases and no annual fee, the “Journey” card offers a low initial credit limit as cardholders familiarize themselves with how credit works. Tools such as free customizable text/email alerts help students manage their credit by keeping track of their spending and payment due dates. The Card is designed to give students the information they need to manage credit wisely, coupled with built-in guardrails and rewards to help keep students on track as they build a credit history.
NCR ATMs has extended its security offering through a new agreement with McAfee security technology company. NCR has begun offering “Solidcore Suite” for APTRA for use with the McAfee “ePolicy Orchestrator” platform. The “Solidcore Suite for APTRA” is a multivendor ATM software security solution with real-time centralized management that prohibits the introduction of unauthorized code to an ATM and protects the system from insider attacks. With this, NCR and McAfee have developed a new version of “Solidcore Suite” for APTRA that runs seamlessly with McAfee ePO software and proactively allows only authorized code to run, rather than reacting to known or unknown attacks as they arise.
ControlScan PCI compliance solutions has unveiled its “Merchant Milestone Reporting” enhancement to its PCI Dashboard. This lets acquirers and ISOs see their portfolio compliance within a single report and segments non-compliant merchants into one of seven different compliance categories. The “Merchant Milestone Reporting” segmenting lets acquirers identify where merchants are in the compliance process and what tools, information, or coaching are needed to reach full compliance. Many Level 4 merchants do not have the compliance or technical resources internally to pursue this type of education, which means they must rely on their ISO or acquirer for valuable assistance.
Wendy’s franchisee Calhoun Management Corporation has adopted the Cybera “ONE” solution, having inked agreements with Cybera PCI compliance solution provider and ERC POS equipment for security and PCI compliance. The Cybera “ONE” solution benefits wireless security service that protects cardholder data from hacker attempts and vulnerabilities from unauthorized devices and deploys rogue access point detection services to help ensure compliance with PCI-DSS wireless requirements through. It also offers managed firewall with integrated IDS (intrusion detection service); hosted SIEM (Security Information and Event Management) with remote logging to meet PCI-DSS log retention requirements; and a hosted UTM (Unified Threat Management) through a centrally managed platform that monitors that detects and analyzes security events 24x7x365 across all locations.
MasterCard is pleased members of the House Financial Services Committee are examining the ramifications of the Durbin Amendment and the impact the proposed Federal Reserve Rule will have on consumers as well as financial institutions of all sizes. Debit cards are a popular form of payment and unfortunately, consumers are already seeing the impact of the proposed rule with a reduction of benefits including the loss of free checking and an increase in fees. The Company would rather merchants are charged the traditional 1% than the 12 cents for each transaction.
Celebrating its 5-year anniversary, Prosper.com will run a special one-day promotion for borrowers, holding all for new loans submitted on February 17, 2011, the Company will cover the borrower’s second month’s payment up to $300. Intent on removing barriers for borrowers, the website offers social and financial benefits for individual investors. Prosper lenders and borrowers have more than 1 million members and approximately $220 million in funded loans. Prosper’s five years of experience and actual P2P lending data and risk management team lets borrowers get rates as low as 5.9% APR.
U.S. Bank has selected Hara Environmental and Energy Management (EEM) as it continues to reduce its energy and carbon emissions. Hara’s comprehensive energy and resource management software will take U.S. Bank’s sustainability efforts to the next level as it identifies further energy reduction opportunities in U.S. Bank properties, tracks and measures environmental initiatives and leverages best practices. Hara EEM will create a central repository that accesses U.S. Bank’s energy and environmental data on more than 2,200 of its owned and operated sites across 25 states. U.S. Bank was already designated an ENERGY STAR Partner by the U.S. Environmental Protection Agency for its voluntary commitment to energy efficiency and is committed to educating and providing employees and customers with solutions to help them minimize paper use through electronic banking options.
Visa and the Cash Learning Partnership have got together for the distribution of money in disaster relief faster, more effective and more secure. Beginning with a focus project in the Philippines, the partnership will support the development of knowledge and tools that will help humanitarian organizations deliver relief funds quickly and efficiently to people affected by natural disasters and other emergencies. The partnership also will promote knowledge-sharing with the broader humanitarian community through the development of trainings, case studies and other resources. The Visa/Cash Learning Partnership collaboration will rely on the experience and expertise of each organization to support cash transfer programming in the Philippines ‘ a country typically at-risk for natural disasters each year.