US Dataworks Names a New CFO

Payment processing solution provider US Dataworks, has hired Randall J. Frapart,
previously with Plumgood Foods, as its CFO. Frapart served
as Chief Financial and Chief Operating Officer of Plumgood Food, LLC, an
online grocer. From January 2006 to December 2007 he served as
Executive Vice President and Chief
Financial Officer of ForeFront Holdings Inc, a publicly traded global golf
accessory company. Previously, Frapart served as Senior Vice
President and Chief Financial Officer of HyperFeed Technologies, Inc., a
publicly traded provider of software, which provides ticker plant and
smart order
routing technologies and managed services to exchanges, hedge funds and
other
financial institutions. Frapart began his career
at KPMG in Chicago, where he held various positions in the Information,
Communication and Entertainment Assurance practice for over 12 years.
He received his B.S. in Accounting from Washington University in St. Louis,
has his MBA in Management from the University of Texas and is a
certified public
accountant.

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Portfolio Recovery Associates Up 12% in Q2

VA-based debt collector Portfolio Recovery Associates reported net income of $11.7 million, a 3% gain over 2Q/08. Total revenue in the second quarter increased 12% to $71.1 million. The Company purchased $3.38 billion of face-value debt during the quarter for $84.7 million. This debt was acquired in 119 portfolios from 15 different sellers.
Cash collections rose 6% to $90.5 million in the second quarter. Call center and other collections increased 7%, external legal collections decreased 26%, internal legal collections grew 119%, and purchased bankruptcy collections gained 43% when compared with the year-earlier period. PRAA notes that productivity, as measured by cash collections per hour paid, the Company’s key measure of collector performance, finished at $145.20 for the first six months of 2009 vs. $131.29 for all of 2008. For complete details on Portfolio Recovery Associates’ second quarter performance visit CardData (www.carddata.com).

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VISA PRESIDENT

Visa announced that its President, Hans Morris, will be stepping down and a streamlined executive management team has been formed. Morris joined Visa in September 2007 and played a key role in planning the 2008 IPO. In the new structure, Visa’s global sales, client service, marketing, product development and innovation functions will be consolidated under COO John Partridge. CEO/Chairman Joe Saunders says Morris will remain with the company until the end of the year in a different capacity, helping to ensure a seamless transition to the new structure. Prior to Visa, Morris was CFO of Citi Markets & Banking, a post he assumed in November 2002. Citi Markets & Banking encompasses the global capital markets, investment banking, corporate banking and corporate transaction services businesses. His Citi responsibilities included managing a multibillion-dollar annual budget and a staff of 14,000 in more than 100 countries. During his career with Citi he held numerous leadership positions, including Vice Chairman, Chief Operating Officer and Head of Client Management at the Investment Banking division of Salomon Smith Barney. (CF Library 7/26/07)

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Brinkman Financial Launches NextPay

Online payment services Brinkman Financial has launched NextPay merchant
card processing and tapped Lynn Varnell, previously with Chase
Paymentech as CEO.
NextPay is a Level One Payment Card Industry (PCI) compliant processor.
Varnell will head NextPay as chief operating officer. A 13-year veteran
of the banking, financial and ecommerce services and merchant credit
card processing industries, Varnell most recently served Chase
Paymentech as director of strategic partnerships. From its NextPay
Gateway and Virtual Terminal to its recurring and
online billing applications, NextPay gives all merchants confidence that
its one-provider platform delivers the stringent security they need.
NextPay also launched a suite of processing tools designed to improve a
merchant’s business performance, revenue recognition and information
security.

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JUN CHARGE-OFFS

Credit card charge-offs exceeded the 10% mark in June, a new record. Compared to one-year ago, charge-offs are up 46.5%. Moody’s Investors Service says that assuming charge-offs increase in line with
unemployment, an increase of 25% by the end of next year from today’s
10.12% level should be expected, resulting in charge-offs exceeding 12.5% by mid-year 2010. Moody’s also notes that 30+ day delinquencies have largely stabilized over the past quarter for numerous trusts. Other key credit card indices such as the payment rate and yields remain
broadly stable. Credit card excess spreads remain positive at present but are under pressure due to increasing defaults.

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TSYS and CMC Team for TSYS FlexCollect

Payment solution outsourcer TSYS has teamed with Collections Marketing
Center to offer “TSYS FLEXCollect” integrated collections service.
TSYS FlexCollect is available directly to
existing TSYS customers. By intelligently optimizing collections
channels based on demonstrated individual account holder behavior and
preferences, TSYS FlexCollect can maximize agent productivity and
improve the customer experience while shortening collections cycles and
mitigating charge-off risks. CMC FlexCollect, the industry’s first
completely virtual collections
service, complements the TSYS platform with its ease of use and
adaptability geared towards a wide variety of account holders. The
enterprise solutions span credit cards, mortgage and home equity loans,
student loans, auto/RV/marine loans, healthcare, phone and utility bill
payments.

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GE Capital Assists AccessOne MedCard

GE Capital, Healthcare Financial
Services was an administrative agent on a $25 million
revolving line of credit for NC-based AccessOne MedCard. AccessOne provides alternative
programs that allow hospitals to more efficiently serve their self-pay
patient consumers. This is accomplished by creating a private label, low
interest medical credit card for individual hospital clients, the
“AccessOne MedCard.” The program also includes a 12-month interest free
and hardship option and is offered to all patients without
credit scoring or credit reporting. The loan will be
used to refinance existing debt and to support growth initiatives. GE
Capital Markets served as sole lead arranger and sole bookrunner.

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Data Show a Second Quarter Spending Uptick

A new survey finds that total spend across eight key categories
increased an average of 3% per person between Q1 and Q2. Mint.com
analyzed the spending by its million-plus user base and says the uptick
is the first in eighteen months. The study found that “Shopping” and
“Travel” spend are both up 17% while “Entertainment” is up 6%. Spending
on “Food and Dining,” “Travel,”; and “Gifts and Donations” are back
within 10% of 2Q/08 levels. However, “Home”; “Entertainment”;
“Shopping”; and “Bills and Utilities” remain at 10-20% of 2Q/08 levels.
Spending on “Gas and Fuel” is down nearly 40% versus the year ago
quarter. For the first year of the “Index,” Mint.com users consistently
cut spending, reducing quarterly spending by 15% ($2,000) in 1Q/09 from
2Q/08. Mint tracks over $175 billion in transactions and $47 billion in
assets.

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Maverick Powers Bluegreen Visa Card

DE-based payment solution provider Maverick Network Solutions has
integrated a Visa Reward card program for resort management company
Bluegreen Corporation.
Using a customized software system provided by Maverick Network
Solutions, Bluegreen Corporation has successfully integrated a Visa
Reward Card in 16 of its resorts, to use as a premium for prospective
timeshare purchasers. By tailoring its technical platform to integrate
with the system used by
Bluegreen to register people for resort tours, Maverick was able to meet
Bluegreen’s need to consolidate its incentive program, while reducing
costs and increasing efficiencies.

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Encore Capital Group Rises 11% in 2Q/09

San Diego-based debt collector Encore Capital Group posted $78.0
million in revenues and $6.6 million in net income for the second
quarter, a year-on-year gain of 11.4% and 6.5%, respectively. Gross
collections were up 20% to $122.4 million. Investment in receivable
portfolios was $82.0 million, to purchase $1.9 billion in face value of
debt, compared to $52.5 million, to purchase $1.8 billion in face value
of debt in the same period of the prior year. Encore Capital also
announced the addition of two new senior executives. Ronald Naves,
former SVP/Legal Affairs and Litigation at Gemstar-TV Guide
International, will join the Company as SVP and General Counsel. Ashish
Masih is from Capital One where he held many senior roles in the
Collections and Recoveries areas and will now serve as Encore’s SVP of
Corporate Development. For complete details on Encore Capital Group’s
second quarter performance visit CardData (www.carddata.com).

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AB LENTICULAR

ABnote North America plastic card and secure document printer is
introducing lenticular printing on medium to long run plastic card and
poster products. Lenticular printing allows for printed images to appear as three dimensional or animated, is created by interlacing image in
reverse and printed directly on the smooth backside of a multi-angled
lenticular lens. Branded AB Lenticular, this process delivers 30% more
animation and 3D depth than comparable technologies by using a
combination of the most optically clear lens available in the industry,
printing precision and tight process control monitoring. ABnote is
partnering with Tracer high quality lenticular products to introduce the
3-D technology. For optimum image clarity and reducing manufacturing
cost, Tracer’s technology utilizes a single substrate, a thick
lenticular lens and is printed with an array of specially formulated inks.

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