Hypercom Drops Verifone Suit to Update Stockholders

Hypercom has voluntarily withdrawn its lawsuit against VeriFone Systems seeking to preclude VeriFone from violating a two-year Mutual Nondisclosure Agreement signed by both companies on June 25, 2009. Hypercom disclosed it necessary to withdraw the litigation in order to set the record straight for its stockholders. This comes on the heels of September 24th, 29th and 27th unsolicited proposals Verifone made to acquire Hypercom outstanding shares for $5.25 per share in cash for a total of $290 million, which was unanimously rejected by the Hypercom Board of Directors and for which Verifone incorrectly suggested it had not engaged Hypercom in meaningful discussions. Hypercom also wanted to drop the suit against Verifone to establish for its stockholders the September 24 and September 27th proposals contained terms that the Board concluded significantly undervalued the Company and were substantially reduced compared to several previous private proposals. Recently, however, sources disclosed VeriFone is pursuing a hostile takeover of Hypercom, although Hypercom disclosed projections of a prosperous 3Q/10 high above Wall Street predictions of $112 million in net revenues (Cardflash Library 2010/10/04, 2010/09/30, 2010/10/07).

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Card Chargeoffs Over 10% Once Again

August U.S. credit card ABS chargeoffs were higher and once again crossed the 10% threshold to 10.37% and 10.03%, according to the latest “Prime Credit Card Chargeoff Index” from Fitch Ratings and “Moody’s: Credit card charge-offs higher in August, but signs of improvement continue,” respectively. This demonstrates a 58 basis point (bp) increase from the previous month while Bank of America, Chase, Capital One, Citibank and Discover, all reported higher default rates for the month. Despite the August increase, the charge-off rate is now below the 10% mark at 9.55% on a three-month rolling average basis for the first time since May 2009. In July, the credit card charge off rate continued to slow after climbing for 2 years straight and was down to 8.1%. This was after months of first soaring past the 6% mark in December of 2008, the 8% mark that following spring, and finally the 10% mark in September of ’09 and relieved fears credit card-backed securities would realistically near 12% by this time. This follows average charge-offs in 1Q/10 having reached an unprecedented 10.93% in March, According to CardData (www.carddata.com). For complete details on credit card charge-offs visit Carddata.com (www.carddata.com).

Charge-Offs
JUN 08: 5.3%
SEP 08: 5.5%
DEC 08: 6.0%
MAR 09: 8.7%
JUN 09: 9.5%
SEP 09: 10.1%
DEC 09: 10.6%
MAR 10: 10.9%
JUN 10: 10.3%
JUL 10: 8.1%
AUG 10: 10.2%
Source: CardData
(www.carddata.com)

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Ingram Micro To Distribute Intermec Portfolio

Ingram Micro announced its Data Capture/POS Division will now market, sell and support the complete portfolio of Intermec technologies in both the U.S. and Canada. Intermec is a channel leader in AIDC and mobile computing solutions. As part of the new alliance, Ingram Micro and Intermec will collaborate to enable the success of mutual channel partners actively involved in the Intermec PartnerNet program. In addition, Ingram Micro will also provide Intermec channel partners with a number of business-building resources including field credit, sales, marketing and technical support, as well as training and education around key technologies and market opportunities. The Ingram Micro Data Capture/POS Division is a value-added distributor of auto ID/data capture (AIDC), point-of-sale (POS), radio frequency identification (RFID) and wireless solution products and services.

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SafenSoft ATM Security Recognized for Innovation

The SafenSoft security solutions’ “TPSecure” ATM security solution was named one of the most innovative ideas in antimalware and antispam in the past ten years by delegates at the prestigious VB 2010 Conference. Held annually, the VB conference is organized by specialist publication and testing organization Virus Bulletin and attracts delegates from around the world focused on security issues in both the vendor and corporate communities. SafenSoft’s solutions for ATMs, corporate networks, and home computers are all built around the company’s patent-pending VIPO (Valid Inside Permitted Operations) technology, which effectively prevents any unknown or ill-intentioned application from executing, preserving system integrity throughout the device lifecycle.

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53% Avoid Bank Fees; 67% Less than $3

With 67% of consumers spending $3 or less in monthly bank fees for services such as checking account maintenance and ATM access, 53% pay nothing. Additional findings show 14% pay $3 or less; 9% pay $4 to $6; 5% pay $7 to $9; and 14% pay $10 or more. This, according to a recent survey by the American Bankers Association, suggests to those whom pay too much for their accounts to open a checking and savings accounts; to use your own bank’s ATM to avoid fees; use direct deposit; to keep at least the minimum balance in the account; keep track of transactions to avoid NSF fees; and get automatic alerts from the bank when balances are too low.

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PXT & Brookline Partner to Intro Smart Debit Card

In conjunction with PXT Payments, the town of Brookline, MA has launched its chip-based, secure “Brookline Debit Card” smart debit card program, along with an on- and off-street parking application. To create a safe, local currency that boosts consumer spending in Brookline, the PXT Payments smart debit card allows residents to no longer worry if they have enough change to park, or be concerned about potential identity theft when making payments anywhere in Brookline. From coffee houses to hardware stores, consumers can load their chip-based, encrypted card at any participating merchant. If consumers load $50 or more at any of the participating merchants, they will receive an additional $5 loaded for free. The PXT smart debit card program can be made for exclusive use in a single town, city, or Business Improvement District (BID), or standardized across a state, or even multiple states if local authorities coordinate.

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Smart Card Alliance Releases m-Marketing White Paper

The topic of “mobile marketing” and the related privacy and security considerations are addressed in a new white paper released from the Smart Card Alliance Payments Council, “Chip-Enabled Mobile Marketing.” The white paper focuses on chip-enabled mobile marketing — mobile marketing applications that use an RF chip, either built in or added to a mobile phone, to enable mobile contactless transactions. It can be downloaded for free by visiting the Smart Card Alliance Payments Council Web page. This white paper looks beyond payment to other marketing applications that can add significant value for merchants and the mobile marketing ecosystem.

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U.S. Bank Visa Triples Rewards on Charity Donations

U.S. Bank is rewarding its “FlexPerk”s cardholders for charitable giving efforts with triple “FlexPoints” on donations cardholders make to over 25,000 eligible 501 nonprofit organizations with their “FlexPerks Travel Rewards” or “FlexPerks Select Rewards” credit card. U.S. Bancorp strengthens communities through a number of its own philanthropic initiatives, for which it contributed over $20.6 million in grants and employee matching gifts to organizations across the country and over $8.1 million in corporate contributions and nonprofit sponsorships in 2009. The FlexPerks Travel Rewards Visa offers industry-leading value and innovation for customers who want travel rewards, also giving users cash back, merchandise, gift cards and statement credits.

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Verifone-Hypercom Takeover Prospect Unfolds

The Verifone-Hypercom saga continues as sources are disclosing VeriFone is indeed pursuing a hostile takeover of Hypercom. Verifone immediately began drafting a second buyout offer after the first bid was rejected September 27, which proposed to acquire all of the outstanding Hypercom shares for $5.25 per share in cash for a total of $290 million, according to the Cardflash Library. Hypercom quickly responded with its rejection thanks to its projections of a prosperous 3Q/10 high above Wall Street predictions of $112 million in net revenues. Subsequently, shares in Hypercom exploded 44% to $6.10, immediately overvaluing the VeriFone proposal. The Board decided this proposal is only intended to disrupt Hypercom operations after having taken market share from VeriFone in several markets. Be this as it may, the VeriFone CEO is disclosing his Company has grown more than Hypercom in the past 10 quarters and is continuing to gobble up competitors, the most recent of being an 80% ownership of Italy integrator and software developer All Business Solutions (ABS)(Cardflash Library 2010/10/04, 2010/09/30).

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Discover is Tops for Resolving Consumer ID Fraud

Among 26 top card issuers for identity fraud prevention, detection and resolution based on research from issuers’ websites and calls to customer service representatives Discover ranks best in identity fraud resolution. These findings, according to the sixth annual “Card Issuers’ Identity Safety Scorecard” from Javelin, also concluded Discover finished second in detection and second overall among all issuers in the study. This is thanks to the Card Issuers’ routine assessment and enhancement of its fraud prevention, detection and resolution systems to continue protecting cardmembers. Discover has finished among the top-scoring issuers since the scorecard was created six years ago.

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FNDS3000 Announces Corporate Restructuring

FNDS3000 Corp is conducting several strategic reorganizational initiatives to streamline its senior management structure, reduce corporate overhead and strengthen its overall operating platform. These include changes to the composition of its Board of Directors, which has been reduced from nine members to five; to expand the leadership role of current Chairman through his appointment to the additional posts of President and Chief Executive Officer; and eliminating approximately $500,000 in annual expected corporate overhead expenses through corporate staff and cost reductions in the U.S. FNDS3000 supportsemployee payroll, insurance, medical aid, gift cards, prepaid cellular charges and small-scale international transfer of funds.

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Dynamics Card 2.0 Technology Awarded by Finovate

Dynamics next-generation payment devices was awarded Best of Show at the FinovateFall 2010 conference. Showcasing innovations in financial and banking technology, the event featured the Dynamics “Redemption” device in a card form-factor, allowing consumers to redeem reward points or cash rewards with the push of a button at the time of checkout. Also, Dynamics announced its partnership with Citi and demonstrated Citi’s “2G” credit cards based on Dynamics’ “Card 2.0” technology. In November, Citi will expand the pilot of its second generation credit cards to additional Citi card customers in the form of the Citi PremierPass 2G and Citi Dividend 2G cards.

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