BANCO CARREFOUR & TSYS

Payment outsources TSYS has signed a multi-year contract with Banco Carrefour S.A., to
process their hybrid and private label card business. The
first phase of the agreement is the launch of a new MasterCard hybrid
card in June 2009. The hybrid card will act as a private label card when
used within the Carrefour store environment, but will act as a general
purpose credit card when used outside of Carrefour stores. Carrefour chose “TS Prime”, TSYS’ outsourced servicing model on its
multi-client payments processing platform. TSYS will establish a local
client support infrastructure and is working with IBM to create a data
center facility in Brazil.

YUCHENG & MINSHENG

IT provider Yucheng Technologies will deploy a
stand-alone credit card call center for China Minsheng Bank (Minsheng),
with brand new systems designed to track and avert fraud.
Minsheng’s credit card call center will utilize Yucheng’s leading
software to decrease wait-time while increasing risk controls. The
systems will allow operators to access complete information across
multiple accounts to assist with caller identification and information
collection. The data is input into customer information and data
analysis systems, which can identify fraudulent credit card applications
and improper account access. Yucheng’s technology will help to lower
Minsheng’s credit card risk exposure. The new system will enable cardholders to review multiple accounts
seamlessly, and will streamline many business practices. In phase I
alone, Yucheng will expand Minsheng’s call center seats to 600, three
times current capacity. Due to the scalability, reliability and
responsiveness of our software, phase II will further increase
Minsheng’s call center capabilities in the highly competitive credit
card market.

Retail Credit Cards Feb Charge-Offs Top 12%

Among prime credit card asset-backed securities the average monthly payment rate declined 137 basis points in February to 15.78%. Portfolio yields improved to 16.83% from 16.00%. Retail credit cards showed similar trends for the February collection month. According to Fitch’s “Retail Cards Index,” the gross yield for February jumped 384 basis points over the prior month. The gross charge-offs registered a record high of 12.31% in February, surpassing the last record reading of 12.25% set in December 2004. The “Monthly Payment Rate Index” for retail cards continued to trend down and stood at 12.95% in February. It was, however, 13% lower than the same period a year earlier.

CARD FEE TESTIMONY

MasterCard Canada has told the Senate
Standing Committee on Banking, Trade and Commerce that it strongly
believes additional regulatory management of payment system fees will
result in unintended consequences for both Canadian consumers and retail
merchants. MasterCard believes it is unfortunate that the Retail
Council of Canada (RCC) and Canadian Federation of Independent Business
(CFIB) have called for government regulation before providing
recommendations to MasterCard. MasterCard and the CFIB have agreed to
meet in early May to discuss
the recommendations the CFIB made to the Senate Committee. MasterCard is
awaiting a response from the RCC to its offer to meet.

AmEx to Target Northwest Airline Customers

American Express has introduced new features to its “Delta SkyMiles Credit Cards” and is set to launch a new marketing campaign for former Northwest hubs. The cards enable cardholders to earn and redeem
miles in more ways and places, including the ability to earn Double Miles on all Delta-and Northwest-operated flights: “Gold” and “Platinum” Delta “SkyMiles” credit cardholders and Delta “Reserve” cardholders, who currently enjoy double miles on virtually every dollar of spend with Delta, can also earn double miles on all purchases made with Delta’s wholly-owned subsidiary, Northwest. Cardholders earn one mile for every eligible dollar of spending everywhere else; redeem for any seat anytime on all Delta-and Northwest-operated flights and redeem for award tickets with no redemption fees: American Express is waiving fees associated with award ticket redemptions on all Delta-and Northwest-operated flight and is launching a “Switch to the Official Card of the World’s Largest Airline” advertising campaign to reinforce the fact that the “Delta SkyMiles Card” is the official, exclusive card of Delta’s “SkyMiles” program within the U.S. and that “WorldPerks” members who wish to continue to combine miles earned from flying with miles earned on co-branded card purchases will need to take action and switch to a “Delta SkyMiles Credit Card”.

SINOPAY GPP

Sino Payments is now deploying its Global Processing Platform in
Shanghai to provide IP
credit and debit card processing services to its customers in China.
The SinoPay GPP system will facilitate the processing of Visa,
MasterCard, American Express, Diners, Discover and JCB and will be
integrated with China UnionPay to provide processing of UnionPay Debit
cards in China. SinoPay GPP can be deployed in any country to provide
efficient IP processing of all credit card types and has been
specifically designed for roll out around the region in Asia.

Comdata Promotes Daly to EVP

Comdata has promoted Joseph B. Daly to executive vice
president and general manager, enterprise solutions. In this role, Daly
will be responsible for sales and operations for Comdata’s Healthcare,
Merchant, and Prepaid solutions. Daly joined the organization in 2004 and served most recently as senior vice president of Merchant Solutions. Prior to Comdata, Daly was director of internal audit for Ceridian Corporation, Comdata’s parent company, where he was responsible for the execution of a risk-based
operational, financial and information technology annual internal audit
plan.

CARD MAIL

A new report has found that credit card issuers only reduced direct mail offers to prospective Canadian cardholders by 8%. However in the U.S., they cut such mailings by 50%. Mintel Comperemedia attributes this difference to a less severe financial crisis in Canada during 2008.
Though Canada’s economy was fairly stable last year, economists predict a slowdown during 2009. Mintel Comperemedia expects credit card mailings to follow suit and drop as well. A 20% decline in solicitations is projected for Q1 2009 in Canada (from Q4 2008). However, this reduction still pales next to the 47% drop projected in US mailboxes.

ORCC Introduces a Disbursement Solution

Online Resources’ eCommerce Services unit has introduced a disbursement solution. The disbursement solution satisfies a range of applications across a variety of industries including mortgages, credit cards, insurance, utilities, health care and others. Typical uses include refunds, rewards payments, credit card balance transfers, settlements, escrow payments, insurance claims, royalty payments and flexible spending account reimbursements. Online Resources manages end-to-end payment origination, clearing and settlement, reconciliation, exception processing and escheatment. Compared to in-house processing, clients typically reduce their processing costs by 30 percent or more, due in part to Online Resources’ network of over 6,000 electronic biller endpoints that provides faster, more efficient and accurate payment posting. Satellite TV provider DIRECTV is one of five major billers that implemented the service in the first quarter.

Consumer Direct Introduces Smart Credit

CA-based Consumer Direct has launched the online tool “Smart Credit”
that allows consumers to immediately address items on their
credit reports that may impact their credit scores. By taking “Smart
Actions” to correct errors, customers can request goodwill corrections
or debt settlements and lock their credit reports to prevent identity
theft without spending hours on the phone with each credit bureau and
creditor. For a limited time, “Smart Credit” will be available at an
introductory rate of $19.95 per month for the basic membership and
$29.95 for premium.

M-Payment Transactions to Soar by 2012

A new study projects that global m-payment transaction volume will soar
to $250 billion by 2012. The worldwide number of users of mobile banking
and related services is forecast to grow from 20 million users in 2008
to reach 913 million users in 2014. Asia-Pacific is expected to become
the most important regional market, accounting for 65% of the total user
base. The Arthur D. Little research found that in many national markets,
only one or two dominant mobile payment platforms (e.g. the paybox
platform in Austria) have prevailed, and key issues now being addressed
include cross border interoperability and standardization. While the
prevailing financial crisis poses challenges to value chain players, we
still believe that m-payment services will significantly develop over
the coming years with the rise of mobile internet, the continuous
improvement of mobile handsets and the younger generation’s preference
for mobile services. In emerging countries, Little expects m-payments to
become the first widespread cashless payment system.

PSI and The Egan Group Partner

E-banking provider PSI has signed a LOI with The Egan Group for MVMC to provide
strategic services including vault cash and armored car service, 24/7 help desk
and installation services. MVMC Corp is a large security and money management company servicing
over 8000 ATM locations for banks, credit unions, and ISO retail ATM
providers located throughout the tri-state and surrounding areas within
the Northeast Region and is complemented by a traditional armored
service provider, Armored Money Services.