CyberSource Q3 Revenue Jumps as Transactions Soar

CyberSource reported third quarter revenue of $65.7 million, a 14%
increase compared to 3Q/08. On a GAAP basis, net income for the third
quarter was $2.7 million, compared to net income of $207,000 for 3Q/08.
During the third quarter, CyberSource processed a record 611
million billable transactions, a 30% increase over the same period the
previous year. The value of transactions processed was $29.0 billion, a
6% increase over Q3 2008. CyberSource signed 35,000 new customers in the
quarter, up 26% over the prior year, increasing its customer base to
approximately 284,000 active customers. CyberSource generated $20.3
million of global acquiring revenue during the third quarter, up 5%
sequentially and 1% over the prior year. The Company added approximately
800 new acquiring customers during the quarter, and now has over 6,000
global acquiring customers. Total revenue for 2009 is expected to be
between $262.0 and $263.0 million, compared to prior guidance of between
$260.0 and $263.0 million. For complete details on CyberSource’s third
quarter performance visit CardData (www.carddata.com).

Details

EPICOR FOR HOSPITALITY

Capital Plaza in Bucharest has deployed Epicor Software solutions for
Hospitality, a global enterprise resource planning solution (ERP).
“Epicor for Hospitality” offers industry-specific applications and tools
for complete property management (PMS) and point of sale (POS)
integration, cash and sales reconciliation, procurement and supply chain
management, along with integral back office capabilities for finance and
accounting, reporting and analytics. “Epicor for Hospitality” is
tailored to meet the requirements of the hotel industry and is used
internationally by hotel chains such as Hyatt and Le Meridien with easy
integration and easy-to-use interface.

Details

Mocapay and VF PAYware Connect Integrate

VeriFone and Mocapay have partnered to deliver mobile gift and
couponing on behalf of its customers, integrated with VeriFone
customer-facing payment systems. Mocapay has integrated and certified
with VeriFone’s “PAYware Connect” gateway to extend its reach and
availability to a broader set of merchants and to help expedite
certifications with new processors. Mocapay’s platform provides
merchants the ability to mobile-enable their existing gift and loyalty
programs through payment at the POS. Gift cardholders can transact at
the point-of-sale, access their account balance and transaction history,
find the nearest location, and reload their account from their mobile
phone.

Details

INGENICO 3Q/09

Ingenico’s consolidated revenue for the third quarter declined 1%
year-on-year to 182 million euros, but rose 5% from the prior quarter.
In North America revenue was up for the second quarter in a row and
increased 16% due to large one-off sales to large retailers. In Latin
America revenue slightly increased by 3%. China/Asia‐Pacific revenue
increased 26% due to continued performance in Australia and a high level
of sales in China. EEMEAA revenue continued to decline (‐30%) due to the
impact of the downturn. Northern Europe revenue continued to decrease
(‐7%) mainly due to the United Kingdom whereas performance in Germany
continued to be strong, notably thanks to the healthcare market.
Southern Europe revenue resumed growth (+5%) as sales in France held
well whereas Spain continued to be impacted by downturn. In September
Ingenico announced the acquisition of 100% of easycash Beteiligungen, a
leading German payment services provider, for an enterprise value of 290
million euros. For complete details on Ingenico’s third quarter
performance visit CardData (www.carddata.com).

Details

Hypercom and Heartland Payment Systems Team

Hypercom Corporation and Heartland Payment Systems have entered into a
strategic
relationship to deliver payment systems to retailers and implement
Heartland’s end-to-end encryption “E3”
solution. Heartland is licensing Hypercom’s “SmartPayment Server Software”
products as key components of its host electronic transaction processing
platform. Branded as “Heartland Connect Gateway”, this software will
enable Hypercom POS systems to integrate E3 technology which
is designed to protect card data from the moment of swipe through
transmission to the card brands. The gateway will also allow Hypercom
terminals and others to support E3. “SmartPayments” will facilitate
Heartland’s ability to offer E3 to several
key markets by providing an infrastructure and total solution that
supports restaurant, hotel and retail, mobile commerce, IP terminals, an
e-commerce virtual terminal solution for card-not-present and
card-present transactions including debit. “SmartPayments” provides the
ability to support integrated plug-ins for Microsoft’s Retail Management
System (RMS) and Intuit’s QuickBooks accounting packages.

Details

GCONOMY VISA

A new credit card that rewards cardholders for positive green actions has been launched by Barclaycard US and RecycleBank in the USA. The new “Gconomy Visa” offers points for each purchase, donates a portion of every purchase to a “green” schools program, and rewards households for recycling. The card is also made from 55% recycled plastic. Cardholders earn 1.5 “RecycleBank Points” for every dollar spent with “RecycleBank Reward Partners” and one point spent elsewhere. A portion of every purchase is donated to the “RecycleBank Green Schools Program,” that offers numerous grants, ranging from $100 to $5,000 to schools that work with children (ages 6-18) in the fields of environmental awareness, education, and action. Additionally, RecycleBank motivates households to recycle by measuring the amount of recycled material from the home and converting it into “RecycleBank Points.” RecycleBank has committed to donating a minimum of $1 million dollars over the next five years to the RecycleBank Green Schools Program via the “Gconomy Visa” card. NYC-based RecycleBank services over 1 million members across 22 states and the U.K.

Details

Sept Card ABS Metrics Point to Higher Charge-Offs

Charge-offs among credit card-backed securities retreated in
September, but delinquency rates, the precursor of future charge-offs,
continued to worsen. Payment rates also continued to decline and may
likely continue to decline. According to Moody’s Investors Service,
charge-offs among credit card ABS declined from a record 11.49% in
August to 10.72% for September. Moody’s continues to expect the
charge-off rate to peak at between 12% and 13% in mid-2010. Delinquency
rose for a second consecutive month from 5.79% to 5.97% in September.
The payment rate fell to 16.76% from 16.90 the prior month. Yields on
credit cards in turn slipped modestly in September to 20.39%
from 20.52%. This month, Moody’s notes that almost 310 basis points of
the yield index is due to principal discounting, which improves the
yield figure through re-characterizing securitized cashflows as finance
charge collections.

Details

Expedited CARD Act Moves Along; Likely to Pass

The Financial Services Committee unanimously passed H.R. 3639, the
“Expedited CARD Reform for Consumers Act of 2009, which moves up the
effective date for credit card reforms from February 22nd to December
1st. The bill now moves to the House floor for consideration. The
committee voted to keep the original effective date of February 22nd for
prepaid gift cards and for small credit card issuers with under 2
million cardholder accounts. Meanwhile, the ABA says banks are working
diligently to implement the “CARD Act” by next February, as Congress
required, but it would be extremely difficult, if not impossible, for
them to meet the new deadline contemplated by this bill. Moving up the
implementation date will place additional strain on institutions and is
likely to further restrict access to credit at a time when consumers,
small businesses and the broader economy need it the most. The ABA also
noted that federal regulators are still in the process of finalizing
rules pursuant to the “CARD Act.” If H.R. 3639 were enacted it would
create a scenario where card issuers are required to comply with rules
that are not yet in place. This would expose banks to significant risk
of litigation and also cause a lot of confusion for both banks and their
customers. The result could be a dramatic pull-back in lending.

Details

RBS WorldPay to Process NPCA Debit Cards

RBS WorldPay payment processor has inked processing agreements with the
National Payment Card Association (NPCA) to process its debit cards.
NPCA offers merchants a card acceptance solution with significantly
lower transaction fees than traditional credit or debit cards and first
introduced its alternative payment solution in June 2006. NPCA’s ACH
card solution has proven to be a beneficial alternative to traditional
card acceptance in primarily the petroleum industry. The NPCA PIN based
payment system processes transactions through the Federal Reserve
Automated Clearing House (ACH), resulting in lower merchant fees and a
self-funded loyalty program that provides immediate savings to consumers.

Details

TMG Lands Two New Clients and Renews Two

TMG (The Members Group) has added VA-based Belvoir FCU and FL-based
ECOM Financial Corp for processing of prepaid cards.
TMG has also renewed its credit card processing partnership with CA-based
Oakland Municipal Credit Union and Meriwest Credit Union has
chosen to renew its debit card processing contract with TMG. TMG is dedicated to
providing innovative and flexible card processing and payment solutions
to credit unions and financial institutions across North America.

Details

Improving Metrics Drive AmEx Q3 US Card Profits

American Express reported a $109 million third quarter profit for its
U.S. card services business, following a $200 million loss in the second
quarter. Charge-offs retreated for the first time during the recession,
dropping 110 basis points sequentially, as delinquency also edged down
by 30 basis points. U.S. Card revenue declined 16% to $2.9 billion,
largely due to lower volume and balances. Marketing, promotion, rewards
and cardholder services expenses decreased 16% from the year-ago period,
reflecting lower rewards costs and reduced investments in marketing and
promotion. Charge-offs on managed U.S. card loans dropped to 8.9%,
compared to 10.0% for 2Q/09 and 5.9% for 3Q/08. Delinquency (+30 days)
dropped to 4.1%, compared to 4.4% in the prior quarter and 3.9% one-year
ago. U.S. card loans declined 19% from 3Q/08 to $51.9 billion, and are
$2.1 billion lower than the prior quarter. For complete details on
American Express’ third quarter results, visit CardData (www.carddata.com).

American Express U.S. Card Metrics
Charge-Offs Delinquency Net Income
3Q/08: 5.9% 3.9% +$244 million
4Q/08: 6.7% 4.7% +$ 4 million
1Q/09: 8.5% 5.1% (-$ 25 million)
2Q/09: 10.0% 4.4% (-$200 million)
3Q/09: 8.9% 4.1% +$109 million
Source: CardData (www.carddata.com)

Details

Higher Revenue Margin Delivers a Cap One Profit

Capital One posted a third quarter $290 million profit for its U.S.
Card business. The issuer delivered the significant profit in the face
of rising delinquency and charge-offs, coupled with declining balances
and volume. The profits was driven by an improving revenue margin. COF’s
revenue margin rose 230 basis points from the second quarter to 16.76%.
Purchase volume of $23.8 billion for 3Q/09 was off 10% from the year ago
quarter, but flat compared to the second quarter. U.S. managed card
outstandings declined to $61.9 billion for the third quarter, compared
to $64.8 billion in the previous quarter and $69.4 billion for 3Q/08.
The managed delinquency rate (30+ days) for U.S. credit cards was 5.38%
for the third quarter, compared to 4.77% for 2Q/09 and 4.20% for the
third quarter of 2008. The net charge-off rate for U.S. credit cards was
9.64% for the third quarter, compared to 9.23% for the second quarter
and 6.13% one-year ago. During the quarter Cap One changed its reporting
structure, dividing its business into three segments: Credit Card,
Commercial Banking and Consumer Banking. For complete details on Capital
One’s third quarter performance, visit CardData (www.carddata.com).

COF U.S. CARD NET INCOME
3Q/08: $344.2 million
4Q/08: $-176.3 million
1Q/09: $0.7 million
2Q/09: $166.9 million
3Q/09: $289.8 million
Source: CardData (www.carddata.com)

Details