Cardtronics plans to install S1’s “Postilion” software to provide in-house ATM transaction processing for its network of more than 26,000 ATMs. The modularized family of products drives consumer- generated transactions at every point of an electronic funds transfer (EFT) network. Cardtronics is the world’s largest owner/operator of ATMs with more than 25,000 locations. We operate in every major US market, and at over 1,000 locations throughout the UK and over 300 locations in Mexico. S1 Corporation delivers customer interaction software for financial and payment services and offers unique solution sets for financial institutions, retailers, and processors.
The recent avalanche in personal bankruptcy filings is forcing some credit card-backed securities to begin trapping cash in spread accounts. Bank of America and First National Bank of Omaha are already doing so. Chase, Citibank, Metris and National City are also expected to join the list. FitchRatings says bankruptcy filings will cause at least a 30% increase in U.S. credit card charge-offs over the next three to four months and charge-offs could surpass 7.5% from its current level of 5.72% in the near term. However, a more severe scenario where past due balances rise 25% would result in the charge-off index growing to nearly 8%, before falling back closer to the 12-month average. Fitch noted that issuers may take steps to lessen the bankruptcy impact and minimize the likelihood of hitting spread account triggers by adding new or unseasoned receivables.
Metavante has inked a definitive merger agreement to acquire MA-based Med-i-Bank. The $145 million deal includes approximately $138 million funded with Marshall & Ilsley stock. The 70-person company will continue to operate under the name of MBI, and will become a subsidiary of Metavante. MBI, founded in 1995, is a provider of electronic payment services for employee benefit and consumer-directed health care accounts. The Company also issues an employee benefits debit card. MBI’s solutions are currently used by approximately 200 third-party administrators and health plans that service over 15,500 employers and approximately 1.3 million employee accounts. The merger is expected to close in the third quarter.
TSYS has extended its current agreement with Bank of America, which includes all consumer- and commercial-credit VISA and MasterCard accounts issued by Bank of America, as well as the recently acquired portfolio of FleetBoston, through 2014. TSYS also processes Bank of America’s merchant accounts through Vital Processing Services, a joint venture with Visa U.S.A. TSYS recently announced an agreement with Visa to acquire its 50-percent equity stake in Vital Processing. The acquisition is expected to close in the first quarter. Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses, and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. TSYS (NYSE: TSS) brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe.
Global Payments reported revenue for the quarter ending November 30th of $188.5 million, a 27% increase over the prior year. Net income grew 59% to $23.6 million. GPN noted that revenue for the quarter included $31.2 million from the company’s DolEx and MUZO acquisitions, which were completed during fiscal 2004. The Company raised its fiscal 2005 annual revenue guidance to a range of $758 million to $768 million versus $629 million in fiscal 2004, a growth of 21% to 22%. For complete details on Global Payments’ latest performance visit CardData ([www.carddata.com]).
Toronto-based Advantex Marketing International posted that revenue for fiscal 2004, ending June 30th, was $82.4 million, compared with $96.0 million in fiscal 2003. The decline in revenue can be attributed to the Company’s Canadian credit card loyalty business. The downturn in the full-service restaurant industry in Toronto resulting from SARS and other factors also impacted revenue. In addition, Air Canada’s filing for bankruptcy protection and restructuring process under the Canadian Companies’ Creditors Act also influenced revenue. However, factors that adversely impacted the Company’s CIBC Aerogold ADVANTEX Benefit program have been just about eliminated. Advantex Marketing International is a chief developer of syndicated loyalty marketing programs, which strengthen relationships between organizations and customers as well as build new relationships between customers and networks of merchants, service providers, and packaged goods manufacturers.
The Australian Tax Office is going after cardholders who earn more than 250,000 reward points or frequent-flyer miles per year. The ATO
announced last week it will audit all highly rewarded cardholders and
those channeling business purchases through their reward credit cards
for no commercial reason. The ATO is reportedly preparing to ask credit
card companies to release data on cardholders accruing more than 250,000
points or miles per year. Under the new “ATO Practice Statement,” the
government wants to tax excessive rewards as a fringe benefit. The
Australian press is reporting that card issuers say the measure could
kill their credit card reward programs.
The Australian Tax Office is going after cardholders who earn more than 250,000 reward points or frequent-flyer miles per year. The ATO announced last week it will audit all highly rewarded cardholders and those channeling business purchases through their reward credit cards for no commercial reason. The ATO is reportedly preparing to ask credit card companies to release data on cardholders accruing more than 250,000 points or miles per year. Under the new “ATO Practice Statement,” the government wants to tax excessive rewards as a fringe benefit. The Australian press is reporting that card issuers say the measure could kill their credit card reward programs.
The “Priority Club Rewards” program is offering double points or miles to guests using a VISA card this summer. Priority Club Rewards is the world’s first and most global hotel loyalty program available in more than 3,500 hotels in nearly 100 countries. With more than 300,000 new travelers joining the program each month, Priority Club Rewards is also the fastest-growing hotel loyalty program in the hotel industry. Priority Club Rewards recently earned six first-place awards and eight second-place awards at the 2004 Freddie Awards, the most prestigious consumer- generated awards in the travel industry.
Hypercom reported net income of $8.7 million in the fourth quarter, a six-fold increase over the year ago quarter, driven by its focus on gross margin and operating expense. Revenues for the final quarter were $63.4 million, a 2.4% gain over 4Q/02. Hypercom’s gross margin improved from 35.1% one-year ago to 42.4% for 4Q/03. The Company says it improved its manufacturing, labor and overhead efficiencies, re-engineered its product designs, and renegotiated component costs during 2003. During the quarter Hypercom launched “Optimum”, a portfolio of 32-bit, high security, multi- application POS products including the “T2100” PIN-entry hand-over version and the “M2100” wireless mobile version. The firm also released the “S9”, a high security payment device that reads both smart and magnetic stripe cards and can be used as a hand-over or countertop PIN-entry device to enable merchants to take advantage of increased PIN-based card transactions. Additionally, Hypercom formed a strategic partnership with Diebold to distribute its outdoor payment technology to drive-up pharmacies in the U.S. and Canada. The Company projects 2004 revenue between $254.0 and $266.0 million and income from continuing operations of $21.0 to $25.5 million. For complete details on Hypercom’s latest performance visit CardData (www.carddata.com).
HYC TRACK RECORD
4Q/02: $61.9 million $1.2 million
1Q/03: $55.7 million ($1.1 million)
2Q/03: $64.4 million $4.8 million
3Q/03: $60.2 million $4.2 million
4Q/03: $63.4 million $8.7 million
Source: CardData (www.carddata.com)
Global Payments has closed its deal to acquire Latin America Money Services and DolEx Dollar Express for $190 million. DolEx Dollar Express is a leading provider of consumer-to-consumer electronic money transfer services to the large and rapidly growing Latino community living in the U.S. and their Latin American families abroad. Global Payments Inc. is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations, financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, Latin America and Europe.
Los Gatos, CA-based Acquire has come up with a novel way to combine the delivery of retail product information with a prepaid card. The new “Entertainment Everywhere GiftCard” has been integrated in a POS package with a full size or mini CD-ROM. Each “EE GiftCard” also offers a sweepstakes, featuring vacations and exciting merchandise give-a-ways. The sweepstakes registration captures valuable consumer profile and demographic information. Acquire’s “EE Data” software application measures the consumer’s interaction with the CD, capturing insertion rates, viewing metrics and in-depth consumer analysis. The full size or mini CD-ROM can be used by retailers to showcase their latest products, services and corporate branding in an interactive format.