Card Charge-Offs Dip 34bps M/M to 10.93%

U.S. credit card ABS improved for the second straight month in March as chargeoffs dipped 34 basis points (bps) to 10.93% and Fitch’s 60+ day delinquency index dropped 17 bps to 4.27%. Led by a 234-bp decline in Bank of America’s credit card chargeoffs, the overall Fitch Ratings credit card chargeoff index shows the chargeoffs for the month period are still higher than the trailing 12-month average of 10.69%.U.S. retail credit card ABS chargeoffs declined 40 bps to 13.01% following record highs in February, but were still 17% higher than the same period a year ago. Delinquencies remain elevated compared to the long-term chargeoff index average of 3.05% while early stage delinquencies also fell by 11 bps to 5.74%, having declined by 38 bps (6%) when compared to the year ago period. Gross yield set another record high of 22.84% in March from 21.47% in the prior month;monthly excess spread rose 107 bps to 8.89% in March as a result of an improvement in both the chargeoffs and the yield component while the monthly payment rate (MPR) increased by 56 bps to 19.35%.

CREDIT CARD COF
SEP 09: 11.52%
OCT 09: 10.09%
NOV09: 10.68%
DEC 09: 12.56%
JAN 10: 11.37%
FEB 10: 11.27%
MAR10: 10.93%
SOURCE:Carddata.com

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CSI Fleet Fuel Card Offers Spending Optimization

CSI Enterprises is offering CSI Fleet Fuel Card to give customers savings up to
15% or more. Immediate savings come from access to the CSI Savings
Discount Network, allowing fleet managers to identify not only low-price
merchants, but also those who offer specially negotiated discounted
prices to CSI card users. Savings within a given zip code can be
significant, ranging from a few cents per gallon to as much as 15 or 20
cents. Expense management is realized by combining
those immediate gas savings with the savings that come from controlling
spending, especially the unauthorized kind also known as slippage.
Every CSI Fleet Fuel Card may be set with both individual purchase and
monthly limits, purchase types (fuel only, fuel and repair, fuel, repair
and store, etc.), even the days and times purchases may be made as well
as options to require different PIN and mileage prompts to make a purchase.
CSI Enterprises provides a specific line of controlled financial
payment products including business fleet fueling/maintenance payment
cards, a corporate virtual payment MasterCard and card solutions for
corporate purchasing, travel and entertainment spending.

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Overall Card Trends Set to Improve for 2Q/10

Recent stabilization in the unemployment rate combined with positive early stage delinquency trends are partially to thank for volume trends having grown 2.3% year-over-year for 1Q/10 amongst the top six general purpose card issuers, compared to an average decline of 14.4% in 1Q’09. This is expected to translate into lower credit card portfolio losses in the second half of 2010, although Fitch notes recent legislative and accounting changes will provide some challenges in the near-term. Issuers re-priced card portfolios in 2009 in preparation for the CARD Act. The Act currently places various restrictions on card interest rates and fees and are soon to require penalty fees be reasonable and proportional.

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Secure ID Provider LaserCard Posts Year End Financials

Secure ID solution provider LaserCard reports that revenues for the
fourth quarter of fiscal 2010 were $14.2 million,
compared with $12.4 million in the prior quarter and $14.7 million in
the same quarter a year ago. For the fiscal year ended March 31, 2010,
LaserCard reported revenues of
$58.6 million, compared with prior fiscal year revenues of $49.8
million. Revenue from optical security media cards totaled $43.3
million in
fiscal 2010, up 40% from $30.9 million in fiscal 2009. Revenue from
specialty cards and printers totaled $14.1 million in fiscal 2010 versus
$15.8 million in fiscal 2009, with the remaining revenues coming from
professional services and other products and services within the drive
systems and services segment. Optical security media card backlog at
March 31, 2010 totaled $10.4 million. LaserCard Corporation develops,
manufactures, and integrates LaserCard® optical
security media cards, multi-technology cards, encoders, peripherals,
smart and specialty cards, biometrics, and modular software.

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MoneyGram Posts 1Q/10 Revenue Up 3% Y/Y

MoneyGram International global payment services reported 1Q/10 money transfer transaction volume increased 6% while total revenue grew 3% year-over-year to $288.9 million. Year-ago fiscals posted $279.9 million. Meanwhile, fee and other revenue grew 5% to $280.9 million, while investment revenue decreased to $5.6 million, compared with $11.7 million in the prior year. Additional data show money transfer fee and other revenue increased 7% year-over-year, 4% on a consistent basis year-over-year; global agent locations increased 10% since the year ago period to 198,000; net income was $10.8 million and EBITDA was $57.3 million; and adjusted EBITDA for the quarter was $61.7 million versus $66.1 million in the prior year. In the Global Funds Transfer segment, revenue increased 5% to $256.7 million from $244.4 million in 1Q/09, with operating income of $27.8 million and an operating margin of 10.8%; money transfer transaction volume increased 6%, with fee and other revenue increasing 7 percent to $222.7 million from $208.2 million in the same period last year; and bill payment transaction volume declined 3% year-over-year.

MONEYGRAM REVENUE
1Q/08: $102.4 million
2Q/08: $143.7 million
3Q/08: $148.8 million
4Q/08: $193.6 million
1Q/09: $160.9 million
2Q/09: $291.2 million
3Q/09: $304.5 million
4Q/09: $296.4 million
1Q/10: $288.9 million
Source: CardData (www.carddata.com)

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GiftCardBin Launches Buy Back Program

CA-based GiftCardBin has launched a buy back program that enables customers to get
cash for any unwanted or unused gift cards and seeks to expand its
reputation as a trusted online source by integrating the world’s most
popular online payment system, Paypal. With
the heightened awareness of unredeemed cards in America, GiftCardBin want to make
those aware that they can sell their unused gift cards for a good cash
payout. New York is an example of a states effort to
claim unused gift cards as unclaimed property. Growing deficits are
forcing States to exhaust all and any potential resources. In 2008 under
New York’s abandoned property fund, the state collected 9.6 million
dollars in unredeemed gift cards.

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GCA Appoints New VP of Sales

David Lucchese has been appointed executive VP of sales with Global Cash Access. Lucchese was most recently VP, sales, games with Bally Technologies, where he started as senior VP of sales, systems. In his new role with GCA, David will oversee domestic sales. NV-based GCA provides cash access products and related services to over 1,100 casinos and other gaming properties in the United States, Europe, Canada, the Caribbean, Central America and Asia. In doing so, it provides gaming patrons access to cash through ATM cash withdrawals, POS debit card transactions, credit card cash advances, check verification and warranty services, and Western Union money transfers.

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MagIC3

American Express Business Travel, a global leader in business travel management, announced it is offering its automated central command post complimentary for those customers who implement its business continuity suite. Information learned from the volcanic ash cloud situation demonstrated the importance of continuous information exchange between corporate security, travel, finance and other departments and combining that with the creativity and persistence of experienced travel counselors became the formula to successfully manage through this unexpected situation. American Express Business Travel reported its client base had more than 150,000 travellers impacted by the travel cancellations. American Express recommends for companies to consider to ensure preparation and business continuity for any unforeseen travel disruption that include the following tips: Be a safety net. Distressed travellers seek solace in their travel
managers and expect a personal touch from their service; Take a fresh look. Nothing is more important than knowing the
whereabouts of your travellers and verifying their safety; evaluate your servicing configuration. Does it include allowances for emergency and after-hours service; revisit your traveler communications strategy. It must allow for
two-way, real-time communication with employees and travellers both
individually and company-wide and consider a traveler portal solution that can target individual travellers based upon their preferences and travel history then post and push timely
and relevant information; embrace telepresence and teleconferencing. due to travel interruptions; utilize an automated ticket tracking
application to identify all unused tickets; create the dialog with your peers through online forums
and discussion boards. Share your experiences and pick up a new tip
or learning along the way and debrief while the situation is still fresh.

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Lenco Mobile Completes MMS Platform

Lenco Mobile has successfully completed testing of its Multimedia
Messaging (MMS) platform in the US.
Lenco Mobile is currently sending millions of MMS messages to mobile
subscribers outside of the USA and the company believes that it will
achieve high acceptance in the USA. Testing in the USA was carried out
through a leading third party aggregator which provides connectivity to
the major wireless carriers in the USA including AT&T, Verizon and
Sprint. Lenco Mobile’s leading edge MMS messaging platform is capable of
sending up to 250 MMS messages per second. The company believes that
this far exceeds the number of messages being sent by other commercially
installed MMS messaging platforms. Lenco Mobile owns and operates
businesses focused on the high growth mobile marketing and Internet sectors.

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USAT Showcases PCI-Compliant Cashless Payment Service

USA Technologies networked devices and wireless non-cash transactions reported its “ePort EDGE” cashless payment terminal is at the center of their hardware and support services demonstrated at the NAMA Expo, April 28-30 in Chicago. USAT is also showcasing its turn-key payment processing capabilities, including its cashless hardware and comprehensive back-end services program, ePort Connect. ePort Connect consists of merchant account set up and management, wireless connectivity, online sales reports, consumer support, over-the-air (OTA) updates, DEX data transfer and machine health alerts. USAT’s hardware and services are also certified as PCI compliant. The EDGE won the NAMA Innovation Award based on this criteria and for its one-piece design, faster transaction processing, and ability to perform various tasks simultaneously to for maximum up-time.

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Fiserv Reports Total Adjust Revenue of $954mm

Fiserv inancial services technology posted total 1Q/10 GAAP revenue of $1.01 billion, compared with $1.02
billion the year ago period, while total adjusted revenue decreased 1% to $954 million, compared with $968
million in 2009. A slight decline in operating margin and an increase in free cash flow increased 15% over
the prior year to $225 million, thanks in part to decreases in higher margin revenue and continued expansion in consumer payments. With this, Fiserv signed 93 electronic bill payment clients and 46 debit clients. Among its new clients are the Charles Schwab co; the Coastal Federal Credit Union which now makes available the Fiserv “CheckFree RXP” online bill payment and presentment solution to its 195,000 members; First National Bank Alaska, which integrates Fiserv’s debit solutions with the “Premier” account processing platform; and SunTrust Bank, which implemented Fiserv’s “Mobile Money.”

FISERV REVENUE
4Q/08$984 million
1Q/09 $968 million
2Q/09$983 million
3Q/09 $992 million
4Q/09 $1.01 billion
1Q/10$954 million
Source: CardData (www.carddata.com)

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