U.S. Bank Launches Online Card Spending Tracker

U.S. Bank is launching its “ScoreBoard” tool, offering trending and reporting data that allows customers to monitor their own credit card spending and also compare their card sales data to industry trends. The “ScoreBoard” application is available to U.S. Bank’s small business credit cardholders and merchant customers who process credit, debit and electronic check transactions through U.S. Bank Merchant Services. It features easy-to-read charts and graphs that provide a monthly snapshot of their credit card purchases, payments, offers insight into their merchant accounts, tracking sales transactions when customers use a card for payment of goods and services. Business owners who have a U.S. Bank-issued small business credit card can access “ScoreBoard” through their existing Internet Banking platform to monitor card spending by an individual employee cardholder or for their entire business; review transactions over various time periods and categories; and examine purchase activity by volume, average ticket price or merchant name.

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Alpha Card Services to Market ExaDigm Terminal

Alpha Card Services payment processor and merchant acquirer is set to market the ExaDigm “XD1000 Dual Comm” Countertop Payment Terminal to its merchant customers. Alpha Card has chosen to add the “XD1000” to its terminal offering because it offers a truly future-proof and highly cost-effective solution greatly reducing the impact that compliance upgrades, technology changes and advances in communications can have on their merchant customers. The terminal features advanced Linux operating system, is easily field upgradeable avoiding redundancy due to changes in technology; offers the ability to add wireless connectivity, including CDMA, GPRS and WiFi; and delivers advanced security features protecting merchants and cardholders.

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19% Trust mBanking, Up 10% over 18 Months

Mobile banking is gaining acceptance, with 19% of U.S. consumers have conducted banking transactions on a mobile device, compared to only 9% 18 months ago. Moreover, 33% of U.S. consumers age 16-24 conducted mobile banking, the highest age group concentration, while 52% of all consumers who have not used this type of service are most concerned about privacy. This, according to KPMG’s fourth annual Global Consumers and Convergence survey, also shows those comfortable using their mobile devices for financial transactions grew to 16%, 6% higher than 18 months ago; those uncomfortable with such usage declined to 55%, 11% lower than 18 months ago; over 10% used their mobile device to buy something from a retailer’s mobile site while 10% conducted an investment transaction on their mobile device.

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iCARD Systems Introduces Eco-Friendly Card

iCARD Systems is now providing its entirely paperless, plastic-free, and carbon neutral environmentally friendly Green iCARD” gift card solution through its Web site, http://green.clickit.icardgiftcard.com. With plastic gift cards account for 75 million pounds of discarded Polyvinyl Chloride (PVC) each year, the “Green iCARD” Gift Card is an emailable gift card, redeemed online for digital gift cards from more than 50 popular online retailers including Macy’s, Barnes & Noble, Overstock, Zappos, Sephora, Dick’s Sporting Goods and many more. Digital gift cards are typically a 19-digit code and four-digit PIN that the recipient can use online when completing their purchase online. Some retailers may also allow the codes to be used in physical stores.

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SCE FCU Selects Geezeo For PFM Platform

California-based SCE Federal Credit Union has selected Geezeo online banking to provide a PFM solution and integrated marketing platform. Offering online financial management (OFM) tools, personal financial management (PFM), social networking and web-based community platforms to financial institutions, Geezeo was founded in 2006 to offer banks tools to empower online customers with a holistic view of their financial assets, liabilities and budgets. SCE Federal Credit Union was founded in 1952 and currently has more than 42,000 members and $485 million in assets.

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AmEx Posts 2Q/10 Revenue Up 27%

American Express reported a $522 million 2Q/10 profit for its U.S. card services business, following a $153 million loss in the year ago period and a $428 million gain in 1Q/10. Total revenues net of interest expense increased 27% to $3.6 billion from $2.9 billion thanks to the consolidation of securitized cardmember loans, related debt onto the balance sheet in the first quarter and cardmember spending up 16%. Provisions for losses totaled $519 million, down 56% from $1.2 billion a year ago while total expenses increased 18%. These expenses include marketing, promotion, rewards and cardmember services, up 36% from the year-ago period.

American Express U.S. Card Metrics
Net Income
3Q/08: +$244 million
4Q/08: +$ 4 million
1Q/09: (-$ 25 million)
2Q/09: (-$153 million)
3Q/09: +$109 million
4Q/09: +365 million
1Q/10: +$428 million
2Q/10 +$522 million
Source: CardData (www.carddata.com)

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Semtek Clients Awarded ROC

Two of Semtek’s national retail clients have been awarded Reports of Compliance (ROC) from their PCI Qualified Security Assessors. Semtek’s encryption solutions, in these retail cases marketed under the brand name “VeriShield Protect” and installed within the TRSM of VeriFone payment terminals paired with Semtek’s Cipher Decryption Services, supported on the TNS network or in the merchant’s own data center, were subject to the payment industry’s mandatory PCI DSS auditing requirements. Both merchants received successful ROC and have been recognized by their merchant acquirers and the PCI DSS auditing body. Semtek focuses on resolving the security vulnerabilities of magnetic stripe, contactless, and EMV based payment systems.

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Risk Management Vital to Same Day ACH

Javelin Research has concluded to maintain volume, an ACH network must integrate key technology and infrastructure advances. Same-day ACH, which goes into effect August 2, will be offered by the Federal Reserve through its opt-in “FedACH SameDay.” This, according to Javelin’s “Strategic Guide to Same-Day ACH: Is Half a Solution Better than None?,” concludes for the FedACH service, same-day eligible standard entry class (SEC) codes composed 37% of all ACH transactions in 2009; developments in mobile payments offer a strategic incentive to payments networks such as the ACH; the value proposition of the ACH network can be clearly differentiated from that of other networks; and proactive risk management by the ACH network is required to support a ubiquitous move to same-day ACH.

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SanDisk Appoints New CEO

With Dr. Eli Harari, Founder, Chairman and Chief Executive Officer, stepping down December 31 after 22 years, Michael Marks, a member of the SanDisk Board since 2003, will assume the role of Chairman effective January 1. Marks, the President of Riverwood Capital private equity firm, was also CEO, Flextronics, for twelve years. SanDisk Corporation provides flash memory cards, from research, manufacturing and product design to consumer branding and retail distribution for mobile phones; embedded memory for mobile devices; and solid state drives for computers.

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epay Integrates with Radiant Systems

epay prepaid and payments processor has integrated with Radiant Systems to offer its prepaid and payments program through the “Radiant POS” for Petroleum and Convenience Retail. This partnership allows any retailer using the “Radiant POS” to easily add the epay program to their existing system with no additional hardware or expenses. In addition to taking epay’s full product offering via the Radiant integration, retailers can now offer pay-at-the-pump functionality for proprietary gift cards. Retailers have been increasingly interested in offering their proprietary gift cards at the pump, as it is a cost effective alternative from credit cards and the corresponding fees charged to retailers. This was created to be flexible enough to implement new products in the future without having to upgrade the software before deployment, allowing all transactions through the store’s current POS.

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TSYS Sees 2Q/10 Revenue Growth of $19mm

TSYS reported results for the 2Q/10, with total revenues of $433.7 million for an increase of 5.3% over the year ago figure. This was thanks in part to increased overall transaction volume and expense control, with 1H/10 having seen client revenues grow 3.6% while operating income was up 18.1%. Meanwhile, merchant POS transactions and FNMS transaction volumes each grew 8.5% for the quarter. However, income from continuing operations decreased 5.2% to $49.6 million compared to last year. The acquisition of FNMS on April 1 is being designated as positive, allowing TSYS to further diversify across the payments value chain.

TSYS REVENUE
3Q/08: $500 million
4Q/08: $439 million
1Q/09: $409 million
2Q/09: $412 million
3Q/09: $432 million
4Q/09: $435 million
1Q/10: $415 million
2Q/10: $434 million
Source: CardData (www.carddata.com)

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Visa completes $2B CyberSource acquisition

Visa announced that it has completed its acquisition of CyberSource Corporation, at a price of $26.00 per share of CyberSource common stock, or total consideration of approximately $2.0 billion, to be paid with cash on hand.
The acquisition of CyberSource expands Visa’s online payment, fraud, and security management capabilities. The combination is expected to accelerate the growth of the eCommerce category and enhance the value of Visa’s network, product and service offerings to financial institutions, merchants, partners and consumers.

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