Morgan Drexen Backs President Obama’s Examination

Morgan Drexen is backing the Obama administration to examine credit card companies and how they charge consumers. Morgan Drexen is a debt consolidation company that works with local and regional attorneys to substantially lower credit card debt, protect clients from threats and harassment, and help consumers build a secure financial future. They offer a Emergency Direct Assistance Fund (EDAF), which gives a free $1000 cash advance to qualifying families to help them quickly settle their outstanding debt. EDAF is the first hardship program of its kind and is quickly gaining national recognition as a much-needed lifeline for families that are suffering through today’s economic upheaval.

MBNA BUSINESS CREDIT CARD

MBNA has announced the
launch of a new business credit card, designed specifically with sole
traders and small businesses in mind. The new MBNA Business Credit Card
offers 0% p.a. on business purchases for one whole year from the date
the account is opened. The credit card has no annual fee and comes with free purchase
protection insurance and Employee Misuse Insurance. The standard rate of interest for purchases will
be 15.9% APR (typical) variable.

Electracash & My Payment Network to Offer the “MyPayNet”

Check processor Electracash has entered into a licensing agreement with My Payment Network to offer the “MyPayNet” service under the Electracash brand. The “MyPayNet” service is a full-featured
online payment system that enables merchants to accept a wide range of
payments. This includes invoicing and recurring payments via online
checks and credit cards. Electracash and My Payment Network will work
together to market the service to new business segments not currently
serviced by Electracash. The “MyPayNet” service is based on the proprietary and PCI audited
technology developed and maintained by My Payment Network. The service
is uniquely designed for service companies and groups that want to take
advantage of electronic payments but have different needs than those met
by online shopping cart technology.

OTI & WOOLWORTH

On Track Innovations announced that its contactless reader was
selected by Australia’s largest retailer, Woolworths, to support its
“ePump” initiative for payment at the gas station. The “ePump”, a feature of the Woolworths’ “Everyday Money” credit card provides customers with a fast and efficient way of refueling
their vehicles at over 300 participating Caltex Woolworths/Safeway
co-branded fuel outlets across Australia using the contactless feature
of the EDM credit card. The integrated pay-at-pump solution deployed by
Gilbarco Veeder-Root nationally is commissioned and operational.
The objective of the “ePump” program is to provide further convenience
to Woolworths’ loyal customers and to help ease congestion on the
forecourt. Instead of queuing up in-store to pay for fuel, EDM credit
card holders will be able to go directly to the pump to fuel their
vehicle, with their loyalty/rewards information sent and verified
automatically.

USA Tech Launched ePort Connect Deployment Consulting Service

Non-cash transaction provider USA Technologies has launched the “ePort Connect Deployment Consulting Service” to help vending operators grow their business. The “ePort Connect Deployment Consulting Service” draws on insights from its 15 years of experience in network and financial services for unattended point of
sale, as well as a database of 35 million unattended small ticket credit
and debit card transactions that USAT has processed to date, USA
Technologies is in the unique position to help operators deploy their
credit- and debit-card-enabled vending machines based on actual
purchasing intelligence, ensuring the best financial return. The Service utilizes a five-step process for the successful deployment of cashless vending machines, kiosks and POS terminals by skilled and experienced deployment teams. The process includes preparation, installation, settlement, reporting and service.

DATACARD & GOLDEN SPRING

Secure card personalizer Datacard Group has entered into an agreement with Golden Spring Technology, a provider of smart label and RFID equipment, for Datacard to offer smart label package systems and contactless smart card inlay systems in the Asia Pacific region. The solutions for contactless smart card inlay production
ranges from 1500 units per hour (UPH) up to 6000 UPH. The solutions of
the smart label equipment with flip chip process ranges from 1600 UPH up
to 20000 UPH. Datacard Group offers the world’s best-selling secure ID and card personalization solutions. The company’s portfolio includes systems for high-volume card issuance, card delivery and fulfillment, secure ID issuance and passport production, plus extensive service and supply offerings. Datacard Group serves customers in more than 120 countries.

U.S. Bank has Issued its 30 millionth Visa Gift Card

U.S. Bank has issued its 30 millionth Visa gift card and is the nation’s number one issuer of Visa prepaid cards. The
company provides prepaid solutions for teens with the U.S. Bank “Visa
Buxx” Card, for travelers with the U.S. Bank Visa “TravelMoney” Card, for gift-givers with the U.S. Bank Visa Gift Card, and for businesses and government with the U.S. Bank “AccelaPay” Visa Card and the U.S. Bank “ReliaCard”Visa. Funds are easy to access while safely stored in a card account. Customers can purchase U.S. Bank
Visa Gift Cards at any branch location, or online at www.usbank.com.
U.S. Bank issued gift cards are also available at many of the nation’s
leading malls.

TSYS & Navy FCU Renew Their Agreement

TSYS provides core processing services for Navy Federal’s Visa and
MasterCard credit card product, supporting more than 850,000 active credit card accounts. Services provided under the agreement
include statement processing, card embossing, accounting and settlement,
fraud prevention services, member service and collection operating
systems, correspondence and risk mitigation. TSYS Loyalty provides
tailored marketing and program design, analytics, rewards processing,
redemption and fulfillment solutions that serve the unique needs of Navy
Federal’s members participating in “nRewards”, “goRewards” and “Flagship” credit card programs. The Navy Federal Credit Union is the world’s largest natural person credit union with $39 billion in assets, 3.2 million members, 175 branch offices, and 7,100 employees worldwide.

BofA Posts Q4 $1.8B Loss

Bank of America global credit cards posted a $1.8 billion loss in the first quarter compared to a $867 million profit on credit cards for 1Q/08. First quarter charge-offs rose sharply to 8.62%, compared to 5.19% one-year ago. The managed 30+ day delinquency ratio also increased to 7.10%, compared to 6.68% in the forth quarter and 2.90% for 1Q/08. In addition, the debit cards swung a net loss of $1.8 billion as a result of a weak economic environment. For complete details on Bank of America’s 4Q/08 performance, visit CardData (www.carddata.com).

BOFA CREDIT CARD NET INCOME
(Global Cards; Excludes Business Cards)
1Q/08: $670 million
2Q/08: $423 million
3Q/08: (-$373 million)
4Q/08: (-$204 million)
1Q/09: (-$1769 million)
Source: CardData (www.carddata.com)

MBNA Europe Launches Business Credit Card

MBNA has announced the
launch of a new business credit card, designed specifically with sole
traders and small businesses in mind. The new MBNA Business Credit Card
offers 0% p.a. on business purchases for one whole year from the date
the account is opened. The credit card has no annual fee and comes with free purchase
protection insurance and Employee Misuse Insurance. The standard rate of interest for purchases will
be 15.9% APR (typical) variable.

BuyerWall has Protected More Than $10B in Transactions

DE-based Electronic Payment Exchange estimates by the end of 2009 it will have protected more than $10 billion in client transactions by “BuyerWall” data security technology. From the point of sale, EPX as the processor takes sole custody of
the vulnerable card data but instead of receiving card data from a
transaction, merchants are given a “BuyerWall Recognized Identification
Code” (“BRIC”). The BRIC then takes the place of payment data in
merchant systems for every operational aspect of the transaction. BRIC
transaction codes are replacement values (sometimes called “tokens”),
not mere encryptions of the card numbers. “BRICS” cannot be
reverse-engineered to derive card numbers. They have no value to
potential intruders. “BuyerWall” represents the latest major advancement in merchant payment transaction security because it establishes a wall between a merchant and vulnerable customer credit
card data. At-risk cardholder data never enters the merchant’s computer
systems at any time, therefore eliminating any possibility of external
or internal card data compromise.

PayPal’s Total Volume Rise 10% in 1Q/09

eBay reported that PayPal posted $642 million in net revenue for the first quarter, an increase of 11% year-over-year, but flat sequentially. Net total payment volume for the quarter was $15.8 billion, an increase of 10% year-over-year. Global active registered accounts increased to 73.1 million, representing 22% year-over-year growth. During the first quarter, PayPal handled 254.1 million payments, a 1% increase over the prior quarter, and up 20% from 1Q/08. PayPal’s 1Q/09 transaction revenue rate increased to 3.81% from the prior quarter but was still lower than the previous years rate at 3.88%. The processing expense rate for the first quarter stayed the same at 1.16% which is slightly lower than the prior year at 1.18%. PayPal’s transaction loss rate went down five basis points to 0.28%. For complete details on eBay/PayPal’s third quarter performance, visit CardData (www.carddata.com).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
1Q/08: $14.4 billion 60.2 million
2Q/08: $14.9 billion 62.6 million
3Q/08: $14.8 billion 65.3 million
4Q/08: $16.0 billion 70.4 million
1Q/09: $15.9 billion 73.1 million
SOURCE: CardData (www.carddata.com)