Austin-based Buzz Points has named Dwayne Spradlin as Chief Executive Officer. Since its launch, Buzz Points has expanded to 32 markets in 24 states.
Global processing powerhouse First Data had a busy year with nine contract extensions, a new German contract, and expanded nine partnerships. FDC also introduced three new products: Clover Station, VisionPLUS Flex, and Go Daddy Payment Solutions, plus upgraded a number of existing products. FDC also acquired Perka and took 100% ownership of JV. The Company also had three CEO’s during 2013 and received two major awards. Annual revenues also increased slightly in 2013, after two level years.
Sunoco has selected PROS pricing and revenue management software as its pricing technology partner to improve its ability to streamline and process data in increasingly volatile market conditions for its branded and unbranded rack-fuels business. With this, Sunoco will deploy the PROS “Scientific Analytics,” “Price Optimizer” and “Deal Optimizer” software modules-the complete PROS Pricing Solution Suite. The three modules seamlessly work together to support the company’s pricing lifecycles, from identifying pricing opportunities, to setting pricing strategies and executing optimized prices.
Leighton “Lee” Yohannan has forged his investment in PayCommerce cloud-based platform for universal business payments, subsequently taking the role as Company Chairman. The “significant” capital investment in the company will extend Company marketing efforts, accelerate business growth and support the PayCommerce “Business Process Management as a Service” (BPMaaS) platform. With this platform, resellers can provide small-to-medium sized businesses (SMBs) with a solution to automate receivables and payables and integrate the processing and global settlement of virtually all forms and types of payments. Yohannan is currently director emeritus and founder of Wayne, PA-based LiquidHub, a systems integrator and technology strategy consultancy with revenues of more than $60 million annually, which was acquired by a private equity firm in late 2007.
Gift card marketplace Plastic Jungle has obtained $4.8 million in its
Series A Preferred Stock Financing. The financing will allow Plastic
Jungle to accelerate its growth through
key new hires, as well as increased marketing and business development
The round was led by Shasta Ventures with
investments from Bay Partners, First Round Capital and Harrison Metal.
As part of the round, Plastic Jungle will add two new members to its
board of directors, including Tod Francis of Shasta Ventures and Josh
Kopelman of First Round Capital. Existing board members include Gary
Briggs, Plastic Jungle founder and Chief Operating Officer Tina Henson,
and St. Bernard Software CEO Lou Ryan.
Another class action lawsuit has been filed on behalf of consumers
against NJ-based Heartland Payment Systems over a recently discovered
security breach. Philadelphia-based Berger & Montague filed the suit
last week in the U.S. District Court for the District of New Jersey.
PA-based Chimicles & Tikellis also filed a similar lawsuit against HPY
in the same court. Two weeks ago Heartland confirmed it was the victim
of a security breach within its processing system last year. The
intrusion was discovered in January, but the processor believes it is
contained. The Company insists that no merchant data or cardholder SSNs,
unencrypted PIN, addresses or telephone numbers were involved in the
breach. In January, HPY formed an internal department dedicated
exclusively to the development of end-to-end encryption. Heartland
delivers credit/debit/prepaid card processing, payroll, check management
and payments solutions to more than 250,000 business locations
nationwide. (CF Library 1/21/09; 1/28/09; 1/30/09)
PA-based marketing agency Altus Group has been selected by Chase Card Services to provide strategic, creative and production management services. Altus will focus on several lines of business including Chase Visa Business, Chase Freedom, ChaseHealthAdvance and Continental Airlines World MasterCard from Chase. To date, Altus has conducted five direct marketing campaigns for Chase
with a combined value of approximately $1 million.
Philadelphia-based Berger & Montague has filed a lawsuit against Hannaford Brothers over its alleged payment card data breach. The complaint alleges that Hannaford was negligent for failing to maintain adequate computer data security of customer credit and debit card data, which was accessed and stolen by a computer hacker. The stolen data included “credit and debit card numbers and expiration dates,” which were accessed from Hannaford’s computer system “during transmission of card authorization.” The intrusion affected all Hannaford stores located throughout the North Eastern U.S., as well as Sweetbay stores in Florida. About 4.2 million unique credit and debit card numbers have been exposed to potential fraud. To date, there have been approximately 1,800 cases of reported credit and debit card fraud stemming from the breach.
Naomi Bar-Yam of Newton, MA, is the January winner of Advanta’s monthly “$10,000 ideablob.com contest” for the “best business idea” category, beating-out 8 other finalists. The company’s “Mother’s Milk Bank of New England” serves babies, hospitals and families throughout the respective region providing screened, pasteurized breast milk to premature and ill babies. This business model was deployed in response to research showing that banked milk saves babies’ lives whom are born in a compromised state. Advanta credit card issuer was founded in 1951 and has provided innovations in the financial services market around the world ever since.
More shareholder lawsuits hit VeriFone. CA-based Girard Gibbs became the first securities litigation specialist to jump on VeriFone’s recently announced accounting problems. Also last week Philadelphia-based Roseman & Kodroff and PA-based Brian Felgoise filed suits in the U.S. District Court for the Northern District of California. The lawsuits were filed on behalf of persons who purchased or otherwise acquired securities of VeriFone between March 1, 2007 and November 30, 2007. The lawsuit alleges that VeriFone and certain of its present and former officers violated the “Securities Exchange Act of 1934.” VeriFone last week announced it was restating its financial statements for the first three fiscal quarters of 2007. VeriFone’s share price fell by 45% on nearly 35 times its average trading volume. VeriFone said pre-tax income for the first nine months of this year is likely to be nearly $30 million lower than what was previously reported. The restatement is principally due to errors in accounting related to the valuation of in-transit inventory and allocation of manufacturing and distribution overhead to inventory. VeriFone’s Board of Directors have also decided to delay its fourth quarter earnings report, due out last week, pending completion of the assessment of the errors and the restatements. (CF Library 12/4/07)
CA-based CO-OP Financial Services now operates 25,000 surcharge-free ATMs via its network in 50 states and 10 countries. In 2002, the CO-OP Network operated just 14,000 surcharge-free ATMs. CO-OP Financial Services is the nation’s largest credit union service organization with nearly 2,000 credit union members, 120 million-plus monthly transactions and 24 million cardholders. This week, the Pennsylvania Credit Union Association partnered with CO-OP. The “CO-OP Network” currently has 564 surcharge-free ATMs located in Pennsylvania. Philadelphia-based Freedom Credit Union, with more than 55,000 members is the most recent Pennsylvania credit union to join the “CO-OP Network.” The Pennsylvania Credit Union Association supports more than 500 member credit unions and serves nearly three and a half million members. At year-end 2006, CO-OP had 24,364 surcharge-free ATMs.
CO-OP Free ATMs
Source: CardData (www.carddata.com)
Two antitrust lawsuits seeking class action status have been filed against Comdata alleging the company has harmed competition by using its market dominance to impair the ability of rival card issuers to challenge Comdata’s monopoly. The lawsuits were filed by two independent truck stops who want to represent all independent truck stops. The suit alleges that in the mid-1990s Comdata acquired its chief truck stop card rival (NTS) and the monopoly point of sale system (Trendar). After becoming a monopolist in the truck stop card and point of sale system markets, Comdata changed its pricing system and significantly increased card fees paid by independent truck stops relative to fees charged to the chain truck stops. The suit says chain truck stops typically pay about 50 cents a transaction, whereas independent truck stops pay a percentage of the value of the transactions, typically over 2%. The Plaintiffs are represented by Washington, DC-based David Balto; Philadelphia-based Berger & Montague; and San Francisco-based Lieff, Cabraser, Heimann & Bernstein.