HCFB Contracts MUZO for its Credit Card Program

Home Credit & Finance Bank Russia has signed an agreement with Prague-based MUZO for payment card processing and issuing services
for the Bank’s new, revolving consumer credit program. MUZO, the largest indirect payment processor in the Czech Republic, will integrate a comprehensive front and back office solution for HCFB’s new program based on MasterCard’s PIN-based “Maestro” card. MUZO’s services
will include: authorization for ATM and POS transactions, as well as card personalization and related card management and distribution
solutions of the issued cards including PIN related support services.
HCFB is the second largest provider of consumer credit in Russia.
Global Payments is majority owner of MUZO.

Triton EPP T1.0 Certified by Interac

MS-based Triton has received certification for its “Encrypting PIN Pad T1.0” under the Interac Association “Device Certification Program”. Triton’s T1.0 EPPs also received certification meeting VISA(R) International standards recently mandated, thereby ensuring that Triton ATMs are certified to process both Interac and VISA transactions. Triton currently provides distributors, financial institutions, and processors with a total ATM security solution by offering an ATM that complies with international 3DES and Interac MACing security requirements. Triton is the largest provider of off-premise ATMs and ATM management software in North America and has more than 100,000 installations in over 17 countries worldwide.

Smartpay Completes Funding for Jieyin Service

Smartpay Jieyin has completed $65 million
round of equity financing to expand its consumer electronic payment service in China. Chinese consumers will utilize “Jieyin” for the payment of their mobile and VoIP-based long distance phone bills. A significant number of China’s leading mobile operators, with a combined subscriber base of over fifty million consumers, have initially contracted with Smartpay to utilize this service for bill payments.
2b Holdings led the latest round of funding.

TSAI Revenues Slip, Profits Double Sequentially

Omaha-based Transaction Systems Architects reported second calendar quarter revenue of $72.5 million, a decrease of 2% over 2Q/03. Net income was $18.7 million for the quarter, compared to a net loss of $1.9 million one-year ago. During the quarter, the Company added 13 new customers while maintaining a worldwide presence of 76 countries. ACI Worldwide, the Company’s largest business unit, added seven new customers during the quarter. The Company has revised its revenue estimate for fiscal 2004 from a range of $282 to $292 million to a range of $291 to $296 million. For complete details on TSAI’s second quarter performance visit CardData ([www.carddata.com][1]).

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

EURONET 2Q/04

Euronet Worldwide reported that its overall revenues for the second quarter nearly doubled to $87 million compared to one-year ago.
Transactions for the EFT processing segment also doubled, and transactions for the prepaid processing segment were up 140%, compared to the second quarter of 2003. The EFT processing unit posted second quarter revenues of $18.0 million, compared to $12.2 million for 2Q/03.
The EFT business processed 54.1 million transactions in the
second quarter, compared to 27.1 million transactions for the same
period last year. The segment completed the quarter with 5,097 ATMs owned or operated, compared to 3,120 ATMs at the end of the second quarter 2003. The EFT results were largely attributable to the
growth in ATMs in India, Poland and Romania. The prepaid processing unit reported second quarter revenues of $65.6 million, compared to $32.2
million reported for the second quarter 2003. The unit handled second quarter transactions of 54.6 million, compared to 22.8 million prepaid
transactions processed in second quarter 2003. The Prepaid Processing
Segment processes electronic point-of-sale prepaid transactions at more
than 162,000 point-of-sale terminals across more than 68,000 retailers in Europe, Asia Pacific and the U.S. The prepaid processing segment’s second quarter’s revenue were driven by strong growth from the company’s e-pay group, combined with the November acquisition of
transact Elektronische Zahlungssysteme GmbH, a German prepaid
processor, and the company’s U.S. prepaid operations, which were initiated in September with acquisition of Austin International Marketing and Investments, with the January acquisition of
Prepaid Concepts and further expanded with the May acquisition of Electronic Payment Solutions, an electronic point of sale
company operating primarily in the southern U.S.

SecureOMS Now Supports Diebold and NCR ATMs

San Jose-based I-S-Cubed has added support for Diebold and NCR ATMs to “SecureOMS,” its automated key management solution. Banks, credit unions and transaction acquirers can now manage networks containing both brands of ATMs from a single point of control, eliminating their need to implement multiple point solutions. Customers will also be freed from the requirement of maintaining host utilities tied to a particular host application vendor or platform. I-S-Cubed Inc. is a global provider of secure cryptographic key management solutions for network-connected devices in the financial services, retail and enterprise markets.

Europay Attacks Cross-Border Fraud with IRIS

Europay France is tackling cross-border fraud with the deployment of the “IRIS” fraud prevention solution
delivered by IRS Intelligent Risk Management Solutions. “IRIS” is installed at EPF’s processing centers in Paris and alerts to all
suspicious cross-border transactions of the more than 14 million French
MasterCards in real time. Europay says during last months’ pilot phase, it detected more than 30% of the fraud volume, while staying at an exceptionally low false positive rate around 4:1. A similar “IRIS” implementation is protecting cross-border transactions of more than 90 million German debit cards with great success since the end of 2001.
Unlike other neural net solutions, “IRIS” does not use domestic transaction nor cardholder data, and is not dependent on complete cardholder profiles. IRS Intelligent Risk Management GmbH is an affiliate of GZS Gesellschaft
fur Zahlungssysteme mbH, Germany’s leading processing-services provider.
Europay France processes all cross-border transactions for the
MasterCards issued by the French MasterCard members.

FICO Scoring Extends to the Credit-Underserved

Fair Isaac took a big leap yesterday as it announced it has extended its “FICO” scoring to consumers who have minimal or no credit history on file. Predictive information considered in the formulation of this score include payment performance data on financial activities such as deposit accounts, pay day loans, and product purchase payment plans. Fair Isaac estimates as many as 50 million Americans currently do not have “FICO” scores including recent immigrants, people with low incomes, recent widows and divorcees, and young adults. The company has established a fully regulatory-compliant subsidiary, Fair Isaac Credit Services, Inc., to operationally deliver this capability. The new extended “FICO” for credit-underserved U.S. consumers is available for immediate use.

Egg Cracks a Profit, Ready to Flee France

After losing more than $182 million on its French VISA card over the past five quarters, Prudential’s UK-based Egg is withdrawing from the French market. For the second quarter, Egg produced an operating profit for its British “Egg VISA” card of $35.3 million versus an operating loss of $30.0 million for its French “la Carte Egg VISA.” Overall, the Egg plc Group made a profit of $1.8 million in the second quarter leading to an overall loss before tax for the first half of 2004 of $7.3 million, down from a loss of $41.9 million in the same period last year. The Group has been trying to sell-off both credit card portfolios but no deal has been announced to-date. During the quarter, Egg added 171,000 new credit cardholders to bring its total portfolio to 2,944,969 cardholders. Total Egg credit card outstandings were $5,630 million at the end of June. For complete details on Egg’s second quarter performance visit CardData ([www.carddata.com][1]).

EGG SNAPSHOT
UK VISA FRENCH VISA
2Q/03: +$35.3 million -$45.0 million
3Q/03: +$36.4 million -$37.8 million
4Q/04: +$29.3 million -$35.6 million
1Q/04: +$27.6 million -$28.7 million
2Q/04: +$35.3 million -$30.0 million
Source: CardData (www.carddata.com)

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

Gemplus Smart Payment Card Revenues Up 37%

French global smart card specialist, Gemplus, reported that payment microprocessor card revenue for 2Q/04 rose 37% year-on-year, and 15% quarter-on-quarter. Gross profit for the Company’s financial services unit increased 29%, from $8.2 million one-year ago to $10.6 million. Financial services revenues increased from $46.7 million to $53.8 million during the same period, a 15% gain. Financial services revenue growth was primarily driven by EMV and, to a lesser extent, by Pay-TV cards. EMV shipments continued to improve with strong growth in Scandinavia, France and Mexico. Microprocessor card revenue growth was partly offset by lower sales in magnetic stripe cards, due to cannibalization by EMV cards. For complete details on Gemplus’ second quarter performance visit CardData ([www.carddata.com][1]).

GEMPLUS SNAPSHOT
Revenues Gross Profit
2Q/03: $46.7 million $ 8.2 million
3Q/03: $57.5 million $15.2 million
4Q/03: $54.4 million $ 8.7 million
1Q/04: $48.7 million $11.0 million
2Q/04: $53.8 million $10.6 million
Source: CardData (www.carddata.com)

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

NRF Is Hopping Mad about PIN POS Fees

The National Retail Federation says that fees for PIN POS debit card transactions are causing confusion in the marketplace as consumers believe the fees are charged by the retailer instead of the bank issuer. The NRF last week asked the Federal Reserve Board to require more disclosure on such fees. In the July 23 comments, NRF asked the FRB to require any bank that charges a fee for PIN transactions to “fully disclose the fee it will charge and the name of the bank that will receive the fee.” The NRF says a bank should be required to reveal that it is already receiving an interchange fee, and to bear all costs of disclosure, including any hardware or software the merchant would be required to install. If banks are not required to make meaningful disclosure and pay for related costs, they should be barred from charging PIN fees, the NRF said. The NRF says the bank fees, which range from $0.50 to $1.50 per transaction, have prompted consumers to demand refunds from countless retailers.

Comdata’s SVS Buys into ProfitPoint

Comdata’s Stored Value Systems has acquired a minority interest in TN-based ProfitPoint, which provides integrated gift card and loyalty programs for small and medium-sized retailers and restaurants. The investment reflects SVS’ continuing commitment to the development of innovative stored value solutions, particularly in this high-growth market segment. Stored Value Systems, Inc. (SVS) is one of the world’s leading providers of electronic gift cards and other card-based transaction programs. ProfitPoint is a payment services company that markets value added, card based loyalty programs to businesses which enables them to attract new customers, encourage repeat visits, track, monitor and report customer purchasing patterns and reduce the risk of shrinkage and exposure to fraud.