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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1WORLD CARD

One World Ventures prepaid cards has expanded its global relationship to
include “1World” Card Programs in countries throughout Asia Pacific,
including Vietnam. The Company is launching the program in the Country
with a new Global partner. To its more than 86 million citizens, Vietnam
banks have only issued around 10 million payments cards while the
Country’s economy is growing more than 7% a year and per capita income
has more than doubled over the previous decade. One World Ventures
invests in technologies, communities, and systems that facilitate trade,
finance, communication, and travel across international boundaries,
cultures, and languages, focusing on niche markets and providing
cost-effective operations.

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Asset Acceptance Capital Q2 Revenue Slips 13%

MI-based debt collector Asset Acceptance Capital reported total
revenues of $49.1 million in the second quarter, a 13% decline from the
year ago quarter. Net income for the quarter was $0.8 million, compared
to net income of $2.1 million for 2Q/08. During the second quarter, the
Company invested $20.0 million to purchase charged-off consumer debt
portfolios with a face value of $727.9 million, for a blended rate of
2.74% of face value. This compares to the prior-year second quarter,
when the Company invested $64.8 million to purchase consumer debt
portfolios with a face value of $1.9 billion, representing a blended
rate of 3.38% of face value. Cash collections of $87.3 million in the
second quarter were down from cash collections of $95.2 million in the
year-ago period. For complete details on AACC’s second quarter
performance visit CardData (www.carddata.com).

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Visa and U.S. Bank Form the Syncada JV for B2B

A new joint venture has been formed offering a global B2B network for corporations and governments to process and track invoices, make and receive payments, and have payables or receivables financed
through financial institutions. Syncada, created by Visa and U.S. Bank,
builds on Visa’s multi-bank network and U.S. Bank’s automated B2B e-invoicing, payment processing and trade finance network “PowerTrack.”
Currently, Syncada serves U.S. Bank and its legacy client base and processed over $18 billion in invoices in 2008. Now Visa has made a capital investment in Syncada to expand the service worldwide. Syncada will be headquartered in Minneapolis with operations in Chicago, Memphis, Toronto, Mumbai and Brussels. Visa says Syncada will extend the reach and capabilities of its commercial product suite.

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