Heartland Payment Posts Record $499mm Revenue

Heartland Payment Systems payments processing announced 3Q/10 systems revenues of $499 million and a net income of $7.5 million. SME card processing volume was a record $16.6 billion, up 5.9% on the year ago period; net revenues posted $115.4 million and the Network Services processed 825 million transactions- both quarterly records. Moreover, operating income as a percentage of net revenues was 12.3% in the third quarter of 2010, down from the year ago period thanks to net revenues rising slower than processing and servicing costs, which were actually marginally lower than in 2Q/10 on an absolute basis. Overall, small and mid-sized merchant (SME) quarterly transaction processing volume was $16.6 billion, up 5.9% from the year ago period; net revenue was $115.4 million, up 4.9% from the year ago period; and same store sales rose for the second consecutive quarter 2.0% from the year ago period.

HEARTLAND REVENUES
1Q/09: $372 million
2Q/09: $417 million
3Q/09: $443 million
4Q/09: $420 million
1Q/10: $411 million
2Q/10: $420 million
3Q/10: $499 million
Source: CardData (http://www.carddata.com)

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Citi CEO Honored by NY Police & Fire

Vikram Pandit, CEO of Citi, was honored by The New York Police & Fire Widows’ & Children’s Benefit Fund at its 25 th Annual Benefit Dinner, for his strong support of the Benefit Fund and NYC’s first responders. Event attendees will include New York City Police Commissioner Raymond Kelly, New York City Fire Commissioner Salvatore Cassano, former Honoree, Board Member and Hockey Hall of Famer Mark Messier, Lyor Cohen, Warner Music Group CEO and recipient of the inaugural “Answer the Call” award, Port Authority Police Department Superintendent Michael Fedorko, Uniformed Firefighters Association President Steve Cassidy and Patrolmen’s Benevolent Association President Patrick Lynch.

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PCI DSS PARTNER KIT

LogRhythm has launched a new toolkit for business partners to help them capitalise on resurgent market interest in the PCI-DSS. LogRhythm’s “PCI DSS Partner
Kit” provides comprehensive information about the industry regulations, as well as how log management and security information event management (SIEM)
solutions ease the process of PCI compliance. With UK organizations struggling to meet the standard, only 11% of regulated organizations are compliant.
Subsequently, The LogRhythm “PCI DSS Partner Kit” comprises fully customisable mail shot campaigns, sales and marketing materials, technical whitepapers
and background information from the PCI-SS Council.

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PenFed & Diebold Provide ATM Service at DCVA

Diebold has partnered with PenFed to provide an ATM to the Veteran’s Affairs Medical Center in Washington DC for use in the new Independence Way rehabilitation center. Independence Way is a rehabilitation environment simulating “real-life” so that Veterans with various medical ailments can train for community re-entry within the safe and therapeutic setting of the Medical Center. The ATM, which dispenses play money, is used by therapists to teach Veterans in the Polytrauma Program how to perform transactions. Other training tools include a grocery store, Metro system map, and motor vehicle simulator.

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Cardtronics Appoints CMO

Tom Pierce has joined Cardtronics ATMs as Chief Marketing Officer. In this role, he will lead company-wide marketing, advertising and communications efforts; build Cardtronics’ brands; support Cardtronics’ sales organizations and develop market strategies to increase Cardtronics’ per ATM and fleet wide transaction volume. Bringing with him extensive marketing strategy and communications experience, Peirce most recently served as VP, Marketing Strategy for FIS payment and financial technology after having filled marketing leadership positions with Metavante Corporation, Wausau Financial Systems, and Journal Sentinel. He holds a Bachelors degree in journalism from Marquette University and has been an active member of his community with involvement in numerous charitable and community organizations.

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U.S. Retail Industry Sales Swing Up

MasterCard “SpendingPulse” macro-economic report indicated October 2010 sales in most sectors posted positive year-over-year growth compared with retail sales a year ago, starting with
year-over-year overall apparel sales up a sharp 8.2%. In addition to the 3.8% gain in September, this performance was the year’s largest year-over-year increase for the sector, in which women’s apparel grew 5.3%; Children’s grew 8.7%; and Family segments grew 11.6%. Men’s Apparel was the only to lose ground, down 0.3% year-over-year. The Consumer Electronics and Appliances segment declined by 3.1% in October, thanks mostly to a significant fall in total ticket prices for this category; the Luxury Index grew 4.2%; and eCommerce sector growth was up 7.9%. The overall eCommerce sector is up slightly higher than September’s year-over-year gain of 7.8%, and August’s 7.2% increase.

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Pace Communications Selects NCR Marketing

Pace Communications has selected the NCR e-mail marketing and preference center modules of the hosted NCR “APTRA eMarketing” to handle multichannel customer communications programs and enhance consumer experience. NCR will help Pace facilitate its custom publishing and e-commerce divisions for Weddings and E-Personalized Gifts brands. In doing so, NCR will help provide a centralized and secure means to run and analyze personalized direct marketing programs to customers via e-mail and other channels. The “APTRA” eMarketing Preference Center works in conjunction with Pace’s business software, CRM system and customer databases, and provides Pace’s customers with a convenient online portal to set their communication preferences. It also enables Pace to deliver real-time, personalized and synchronized messaging across all of its marketing channels, in the way consumers prefer to receive them.

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Chase Kicksoff Rewards Holiday Promotion

Chase is deploying its annual “Ultimate Rewards” holiday rewards promotion, offering enhanced rewards to all Chase Freedom, Chase Sapphire, and Ink from Chase cardmembers with “Ultimate Rewards.” With this, cardmembers have access to merchandise redemption discounts, opportunities to earn bonus points, and a Best Buy gift card bonus offer through such options as the “Give a Gift, Get a Free Gift Card” promotion. With this promotion, from November 14 through December 20, cardmembers who participate in Ultimate Rewards and redeem 5,000 points or more in a single transaction will receive a free Best Buy gift card as a bonus – a $10 gift card for 5,000 points or a $25 gift card for 10,000 points. Also, the “Shop ‘N Save on Cyber Monday” promotion, Chase Ultimate Rewards cardmembers who choose to use their reward points to do their holiday shopping on Cyber Monday will save 30% on merchandise redeemed through “Ultimate Rewards” and are eligible for the ‘Give a Gift, Get a Free Gift Card’ promotion. Lastly, the “Eight is Great: Earn 8 Times the Points When You Shop at ultimaterewards.com” promotion gives Chase cardmembers with Ultimate Rewards who do their online holiday shopping between November 26 and November 30 at the “Ultimate Rewards Mall” eight bonus points for every dollar they spend at select merchants.

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Credit Manager Index Lunges Near 55 Mark

Breaking the up-and-downs seen in many of the months over the past year, the latest “Credit Managers’ Index” maintained a steady increase for the month of October to 54.9, skyrocketing from 53.8 in September. This is thanks in part to banks being more aggressive thanks to the increase in extended credit with a small jump in the number of credit applications to levels not seen since June- with fewer rejected ones-and promising numbers in both the manufacturing and service sectors. According to the National Association of Credit Management, The amount of credit extended is back to levels previously seen in May, which had already started to improve in September to 60, is now up to 61.9. The overall “Index” has still showed a dramatic decline from the levels in April, since which point it had slipped from 56.5 to the July figure of 53.0 and is still slowly gaining. At any rate, Indicators did gain remarkably since the August figure of 48.1. The number of additional disputes and delinquencies also suggests that some sectors of the economy are still struggling. NACM noted these numbers don’t translate to prosperity, but the trend renews hope for a reasonably strong finish to 2010.

CMI HISTORICAL
OCT 09: 51.0
NOV 09: 52.3
DEC 09: 52.9
JAN 10: 55.1
FEB 10: 55.2
MAR 10: 55.7
APR 10: 56.5
MAY 10: 55.9
JUN 10: 54.1
JUL 10: 53.0
AUG10: 53.3
SEP 10: 53.8
OCT 10: 54.9
SOURCE: CardData.com

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Union Bank Launches mBanking App

Union Bank has launched its “Mobile Business Center” secure m-banking app. Letting customers access accounts and perform treasury management activities on their smartphones, the mobile banking application is available to the bank’s commercial customers at no cost. With this, chief financial executives, treasury management and small business owners can view account balances; approve wire transfers; and scheduling internal transfers. There is no limit to the number of accounts or users who can access the application and fund balances are displayed in all major foreign currencies. It also provides alert notifications on web-enabled mobile devices and access to the Mobile Business Center to take action.

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Hypercom Posts Astounding Revenue Up 23.7% Y/Y

Hypercom posted a record 3Q/10 net revenue of $125.1 million, up a staggering 23.7% ($23.9 million) over the year ago figure of $101.2 million. This performance was also up on the 2Q/10 figure of $103.9 million and was thanks mostly to strong growth in Europe by 21.3%; Asia-Pacific by 81.2%; and in the Americas by 7.8%. Meanwhile, gross profit was $40.1 million, compared with the $32.1 million in 2Q/10 and the year ago figure of $33.2 million; operating expenses were $33.1 million, compared to $29.2 million last quarter and $30.5 million in the year ago period; operating income was $7.1 million, compared with $2.9 million in the prior quarter and $2.7 million in 3Q09; and net income was $4.5 million, compared with the last quarter net loss of $1.3 million and net income of $1.2 million in the year ago figure. The quarterly performance is also a reflection of stock gains on the unsolicited Verifone acquisition proposals dated September 24th, 29th and 27th for $5.25 per share in cash for a total of $290 million. Unanimously rejected by the Hypercom Board of Directors, the proposal exploded Hypercom share prices 44%, immediately overvaluing the proposal (CardFlash Library 2010/10/07, 2010/10/08).

HYPERCOM REVENUE HISTORICAL
3Q/08: $121.1 million
4Q/08: $120.5 million
1Q/09: $ 82.8 million
2Q/09: $106.8 million
3Q/09: $101.2 million
4Q/09: $117.4 million
1Q/10: $ 98.8 million
2Q/10: $103.9 million
3Q/10: $125.1 million
Source: CardData (www.carddata.com)

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CMEx Joins Hurricane Recovery

The Caribbean Media Exchange (CMEx) is assisting Caribbean nations and citizens recover from Hurricane Tomas. CMEx has started an online hurricane emergency relief campaign targeting regional and international travel and tourism industry partners as well as the Caribbean’s populations abroad. Tax-deductible for US taxpayers who itemize their deductions, donations will benefit recovery efforts in nations who request urgent humanitarian assistance, 100% of which-less credit card transaction fees-will be directed to recovery efforts on the ground.

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