FINANCIAL OUTLOOK

While some financial expansion is expected this year, research shows 34%
of those polled do not expect a return to growth until the first six
months of 2010 while 32% feel growth won’t be until a period thereafter.
Meanwhile, 72% were caught off guard by the severity of the financial
crisis, 70% were surprised by the speed of the recession, 30% had seen
some improvement in their business over the last 12 months while 50% had
not seen any. The results come from a survey of 125 global financial
services conducted through Ernst & Young, which also shows 70% have
permanently changed their risk management strategy in response to the
crisis; 68% have implemented permanent differences to their regulatory
framework and 54% have changed their operating model. Additional
research shows 59% have seen their profitability decline; 56% have seen
revenues decline in the same period; 65% agreed international
governments’ contributed to rebound over the past 6 months; and 61% had
more opportunity to improve cost cutting in the last six months. Ernst &
Young assurance offers tax, transaction and advisory services to clients
around the world.

Details

June Consumer Bankruptcies Rise 41% Y/Y

The number of U.S. consumer bankruptcy filings rose at a 41% annual clip in June. However, the number of filings was down nearly 7% sequentially, but up 36.5% for the first half of this year, compared to one-year ago. According to the American Bankruptcy Institute and the National Bankruptcy Research, consumer filings totaled 116,345 in June, compared to 124,838 in May and 82,770 in June 2008. Chapter 13 filings constituted 28% of all consumer cases in June, up slightly from May. According to the Administrative Office of the U.S. Courts total bankruptcy filings rose in the first quarter by 34.5% from 33.1% in the fourth quarter. Total filings in the first quarter of this year hit 330,477, compared to 301,317 for the fourth quarter and 245,695 one-year ago. Consumer filings for the 12-month period ending March 31st, totaled 1,153,412, up 32.4% from the same period one-year ago. (CF Library 6/9/09)

BANKRUPTCY FILINGS
Jun 08: 82,770
Jul 08: 94,124
Aug 08: 96,413
Sep 08: 88,663
Oct 08: 106,266
Nov 08: 99,925
Dec 08: 84,926
Jan 09: 88,773
Feb 09: 98,344
Mar 09: 121,413
Apr 09: 125,618
May 09: 124,838
Jun 09: 116,345
Source: ABI/NBKRC; CardData.com

Details

COFFEE CLUB & SIMPHONY

MICROS Systems hospitality and retail information technology solutions
has announced The Coffee Club is to deploy its “Simphony” POS solution
in over 200 of its stores across Australia and New Zealand over the next
six months. The Coffee Club is deploying the “Simphony” solution for its
reliability, store-level resilience and service oriented architecture
which provides maximum benefits for its customers. The Coffee Club model
has depended on training, operational support and innovative marketing
strategies for its recent franchise expansion, which includes its first
store having opened in Thailand in 2009, while MICROS Systems provides
enterprise applications on over 310,000 systems at various retail
merchant operations in more than 130 countries. The Company’s
MICROS-Fidelio subsidiary also provides central reservation and customer
information solutions for more than 25,000 hotels worldwide while
MICROS-Retail offers point-of-sale, loss prevention and cross-channel
functionality to over 90,000
retail stores.

Details

Illinois Renews ACS Debit Card Program

Affiliated Computer Services has signed a five-year agreement
with the State of Illinois to offer a reloadable MasterCard
debit card for the child care assistance program.
The card will be offered
as an option to traditional paper checks for payments to service
providers participating in the state’s Child Care Assistance Program,
which offers quality, affordable child care to families. Additionally,
it will be available to personal assistants who help with household tasks and personal
care to people with disabilities. ACS serves four million cardholders with 24 EPC programs for state and
federal clients, disbursing payments for programs such as child support,
Temporary Assistance for Needy Families (TANF), unemployment insurance,
disability and state employee payroll. The addition of child care
providers and personal assistants will significantly expand the use of
EPC services. ACS processes more
than half of the nation’s child support payments; processes nearly 570
million Medicaid claims each year totaling more than $50 billion in
provider payments; saves state child care programs millions of dollars;
services student loans for more than 11 million borrowers; and
facilitates more than 75 million online searches for unclaimed property
per year.

Details

UKASH E-CASH

Ukash has partnered with Caixa Galicia Bank to offer Card holders across
Spain the option to purchase Ukash e-cash vouchers through the Bank’s
950 ATM machines as an alternative to online payment transactions. Using
Caixa Galicia debit and credit cards, as well as other bank cards,
consumers concerned about protecting their financial details over the
internet can buy the secure vouchers from Caixa Galicia ATM by
performing a series of simple steps, including entering desired voucher
value, which is then printed to disclose its secure 19-digit code for
online shopping. Ukash is also available from over 6,000 post offices,
Telecor and Recarga Express outlets across Spain.

Details

TNB Unveils the High-End Onyx MasterCard

Following on the heel’s of the “Chase Sapphire” card, TNB Card Services has unveiled the “Onyx MasterCard.” Texas-based Texas Dow Employees Credit Union has teamed with TNB to offer the new credit card to its high end members. The “Onyx MasterCard” blends revolving and non-revolving credit, targeting members with credit scores of 720 and higher. A cardholder with a $10,000 credit limit can access up to three times the line of credit, for purchasing power up to $30,000. The first $10,000 is on a revolving limit, like a traditional credit card, in which the balance due can be paid in full each month, or revolve with interest. The remaining balance, or non-revolving credit, is due in full at the end of each billing cycle. In addition to cardholders earn up to two percent cash back for all purchases, including non-revolving transactions. TDECU has 120,000 members and more than $1.4 billion in assets.

Details

NCB & LONGTOP

Longtop Financial Technologies financial software developer and
solutions has been awarded a contract to develop a customized analytical
credit card data mart for National Commercial Bank in China. With this
development, Longtop is focused on affording the National Commercial
Bank credit card division fraud protection and meaningful information
about its credit card holders to identify, segment and classify the most
valuable members and their needs. Longtop software development and
solutions develops and delivers comprehensive software applications to
meet the IT needs of the financial services institutions across China
through its six solution delivery centers, three research centers and
seventy five service centers.

Details

EDS Powers AmEx Technology Services

American Express has signed a long term technology service agreement with EDS.
EDS will manage the American Express end-user
desktop computing environment and its global voice and data networks and
will provide on-site services for about 60,000 employees
in more than 130 countries around the world. EDS delivers a broad portfolio of information technology, applications
and business process outsourcing services to clients in the
manufacturing, financial services, healthcare, communications, energy,
transportation, and consumer and retail industries, and to governments
around the world.

Details

Comdata Lands a Metavante Executive

E-payment solution processor Comdata has tapped Greg Licata, previously
with Metavante, as its new VP of healthcare.
For the past seven years, Licata served MBI/Metavante in a variety of
leadership roles. He is a
co-founder and former chairman of the Special Interest Group for IIAS
Standards (SIGIS), creating the standards that enable a broad range of
participants in healthcare to implement consistent systems and processes
for healthcare transaction processing and data retention. Comdata
entered the healthcare industry in 2008. As a leader in
electronic payment solutions, the company launched a Flexible Spending
Account (FSA) payment card through a partnership with Ceridian Benefits
Services, a division of Comdata’s parent company, Ceridian.

Details

ABS Excess Spread Falls to a Decade Low

The latest results of U.S. credit card-backed securitizations reveals that the three-month excess spread index fell below the 5% threshold for the first time since November 1998. Excess spread for credit card ABS can be viewed as a transaction’s profitability, measuring the difference between its revenue (portfolio yield and interchange) and expenses (coupon, servicing, and chargeoffs). The June reading, which covers the May collection period, fell to 4.83% from 5.30%, according to the latest “Credit Card Indexes” from Fitch Ratings.
Although chargeoffs are climbing and excess spread is compressing, the ratings on many trusts have remained stable as issuers have added more credit enhancement and turned on the discount option in order to deal with the sour economy. Fitch says excess spread is compressing as a result of soaring chargeoffs, which climbed past 10% to hit another record high this month. The overall effect on excess spread would be worse had there not been strong gains in gross yield. Although prime rate is 175 basis points lower year over year, gross yield is actually 17 basis points higher.

Details

CHARGE Anywhere Supports the way5000

Mobile payment solution provider CHARGE Anywhere is providing support for the WAY Systems’ “way5000” POS device. The “way5000”
PCI PED approved credit and debit device integrates
technologies that open an endless number of possibilities. Merchants
have the option of using a PCI PED certified, pocket sized mobile payment
solution that will enable them to take their business with them anywhere while qualifying
for lower transaction rates. The way5000 device empowers merchants to process many
transaction types, anywhere, any time. The terminal
is programmable, runs multiple applications and can download new
applications or update over-the-air (OTA).

Details

Network Merchants Launches CertifyPCI

E-commerce gateway provider Network Merchants has launched the
“CertifyPCI” web-based certification tool for merchants that offers a
$50,000 per occurrence insurance. According to Visa, merchants, service
providers and their agents are required to use payment applications that
support the Payment Card Industry Data Security Standard by July 1,
2010 in an effort to mitigate emerging security risks. “CertifyPCI” is
committed to streamlining the PCI Certification process in an effort to
help merchants easily achieve a higher level of security. More than 285
million records were compromised in 90 confirmed breaches last year
according to Verizon’s 2009 Data Breach Investigations Report.

Details