Paying Down Card Debt Ranked High

A new study from Target Research focuses on changes in credit card behaviors with 28% making paying down on debt a primary goal.
In addition, when the data are viewed by those who are “Credit Worthy”, the 40% of households have no trouble paying their balances
and “Credit-On-The-Edge”, the 60% who would be challenged to pay off all balances,
Of the “Credit-Worthy”, 38% are most interested in providing for retirement. Of those who are
“Credit-On-The-Edge”, 47% want to pay off their debt, and
this number has increased by 25% over the past year. Target Research Group is a
full-service marketing research company offering consumer and business
to business insights that drive competitive marketing solutions for the
Financial, CPG and Legal industries.

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MC Q4 Profits Down 21% as US PDV Slips 8%

MasterCard posted fourth quarter net income of $239 million, a 21%
decline over 4Q/07. However, net revenue for the quarter was $1.2
billion, a 14% year-on-year gain. Global transactions dropped
significantly in the fourth quarter to an annual growth rate of 6%,
compared to 12% in the prior quarter and 14% in the year ago quarter.
For the fourth quarter there were 7.8 billion purchase and cash
transactions globally. MasterCard’s gross dollar volume gained 3% in the
fourth quarter to $605 billion, compared to third quarter GDV growth of
12%. In the U.S. credit card gross dollar volume fell 11% to $152
billion and debit card gross dollar volume increased 6% to $104 billion.
Purchase volume on U.S. credit cards was down 10% while cash volume
dropped 23% in the fourth quarter, compared to the year ago quarter.
Purchase volume on U.S. debit cards gained 7% while cash volume rose 7%
in the fourth quarter, compared to 4Q/07. At the end of the quarter
MasterCard had 263 million credit cards and 126 million debit cards
in-force in the U.S. MasterCard noted that in response to the difficult
financial environment the Company reduced general and administrative
expenses by 3% and advertising and marketing expenses by 33%. For
complete details on MasterCard’s fourth quarter performance visit
CardData (www.carddata.com).

MASTERCARD TRANSACTIONS (millions)
(purchases + cash)
TRANSACTIONS GROWTH
Dec 31, 2008 7,768 6%
Sep 30, 2008 7,638 12%
Jun 30, 2008 7,462 12%
Mar 31, 2008 6,972 13%
Dec 31, 2007 7,306 14%
Sep 30, 2007 6,842 13%
Jun 30, 2007 6,657 15%
Mar 31, 2007 6,162 20%
Dec 31, 2006 6,395 20%
Note: All MasterCard Credit, Charge and Debit Programs processed
on MasterCard’s networks.
Source: CardData (www.carddata.com)

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NCR’s Fourth Quarter Net Income Slides 37%

NCR reported that fourth quarter revenue declined 7% to $1.42 billion, compared to 4Q/07. Net income declined 37% to $56 million.
Revenues declined 8% in the Americas region, primarily due to lower sales to customers in the retail and hospitality industries. In the EMEA region, the revenue decline of 8% was attributable to the negative effect of foreign currency translation. Revenues fell 1% in the Asia-Pacific-Japan region. During the quarter NCR completed the largest annual new product introduction schedule in the company’s history. Among new products is “APTRA Vision,” a next-generation management-decision and support system. Hanmi Bank, the largest Korean–American bank in the U.S., introduced “APTRA” software and hosted services. Also, Silvergreens Restaurant became the first to deploy NCR’s two-sided thermal printing technology. NCR expects full-year 2009 revenues to be in the range of 2% to 6% lower compared with 2008. For complete details on NCR’s fourth quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

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TransCard Offers Online Bill Pay Option

Prepaid card provider TransCard has launched a online bill pay option
for MasterCard clients and cardholders.
TransCard’s online bill pay platform provides cardholders with the
fastest, easiest way to pay their bills. It has been integrated with the
cardholder website, so it’s just another click of the button for
cardholders to go from checking their balance to paying their bills.
Payments can be set up to be either one-time or recurring, with the
amounts directly deducted from cardholders’ accounts as with any other
transaction. It also has the ability to cut paper checks for those
companies who may not have the technology to process 100%-digital
or electronic payments.

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International Drives Visa Q4 Profit Up 35%

Visa reported that fourth calender quarter net income increased 35% to $574 million and net operating revenue rose 17% to $1.7 billion, compared to the same quarter in 2007. However, global transaction growth
for the quarter ended December 31st slowed to an annual rate of 8%,
compared to 11% in the prior quarter and 13% in the year ago quarter. For the fourth calendar quarter there were 9.8 billion transactions processed via VisaNet. Service revenues rose 8% in the quarter to $793 million. Visa also released third calendar quarter performance data which showed that payments volume grew 12% over the prior year to $701 billion; total volume, inclusive of cash volume was $1.1 trillion, was up 16%; total cards carrying the Visa brands rose 10% worldwide over the prior year to 1.7 billion; and total payment transactions increased by 13% over the prior year to 14.5 billion. In the U.S. market, gross dollar volume increased 7% to $524 billion; purchase dollar volume rose 9% to $421 billion; cash dollar volume increased 2% to $103 billion; the number of accounts gained 9% to 478 million; and the number of cards-in-force rose 2% to 654 million, compared to the same quarter in 2007. Visa projects that net revenue growth over the next twelve months will be at the lower end of the 11% to 15% range, due to the current economic environment in the U.S. and around the globe. Visa noted that
annual net revenue growth may be somewhat challenged in 2010 if the
current economic environment in the U.S. and around the globe persists beyond 2009. For complete details on Visa’s latest performance visit CardData (www.carddata.com).

VISA-NET TRANSACTIONS (millions)
Dec 31, 2008 9,797
Sep 30, 2008 9,590
Jun 30, 2008 9,473
Mar 31, 2008 8,800
Dec 31, 2007 9,094
Sep 30, 2007 8,645
Jun 30, 2007 8,411
Mar 31, 2007 7,645
Dec 31, 2006 8,018
Note: Visa, Visa Electron, Interlink and PLUS
cards processed on Visa’s networks.
Source: CardData (www.carddata.com)

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iMergent Fourth Quarter Revenues Down 31%

UT-based iMergent posted revenues for the fourth calendar quarter of $27 million, a 31% decline due to fewer workshops, general negative economic conditions and customer refunds. The Company had a loss from operations of $7 million, compared to a loss from operations of $143,000 in the same quarter last year. Last month, the Company announced it will reduce its workforce by approximately 25%, bringing its total workforce to approximately 250. Also, CFO Robert Lewis resigned on February 6th, replaced by iMergent’s Controller, Jonathan Erickson. In December, Brandon Lewis resigned as the company’s president and COO, effective March 9, 2009. Lewis also resigned as a director effective immediately, and the board will consist of six members. iMergent provides eCommerce software for small businesses. For complete details on iMergent’s latest results visit CardData ([www.carddata.com](http://www.carddata.com)).

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Pipeline Data is Totally Restructured

Pipeline Data has entered into restructuring agreements with convertible
noteholders and the
holders of a $16 million put claim and will form a new board of directors.
Under the terms of the transaction, the current $37 million, 8% coupon
preferred convertible notes due June 29, 2010 will be restructured as a
$42.1 million loan, 10% coupon until June 30, 2010 and a 14% coupon
until June 30, 2011. The Company will have the option to extend the
notes for an additional year until June 30, 2012, at its sole
discretion. The agreement calls for the removal of all convertible
equity features and the immediate termination of 11.1 million detached
full-ratchet warrants. ComVest Investment Partners III, an affiliate of
the ComVest Group, will
lead a $15 million initial investment in cash for the purposes of
restructuring the balance sheet and acquiring new merchant account
portfolios and other operating companies. As part of the investment, the
Company shall issue ComVest a $15 million face amount preferred
convertible stock instrument convertible into common stock of the
Company at 12.2 cents per share with a 16% payment-in-kind (PIK). Total
shares outstanding post transaction will be approximately 41 million
common and 122,950,820 preferred convertible shares (initially
convertible into 68% of the Company’s Common Stock). Total debt will be
reduced from $53 million to $42 million when taking into consideration
the current combined $37 million convertible notes and the $16 million
extinguishment of the put obligation. ComVest will also make available
to the Company an additional $15 million acquisition line of credit,
maturing September 30, 2012. Pipeline’s entire Board of Directors
will resign and a new Board will be formed, including ComVest Partner
and Advisory Board Member Peter J. Kight.

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H&R Block Extends its MasterCard Deal

MasterCard and H&R Block have extended their agreement for the “H&R Block Emerald Prepaid MasterCard” .
The prepaid card offers H&R Block’s retail tax clients with flexible, convenient and secure
access to tax refunds, payroll funds or other direct deposits. H&R Block Bank
issued more than 2.6 million cards last year and expects to increase the number to 3
million this tax season. Cardholders have the ability to
reload cash to their cards at more than 40,000 retail locations across the U.S. The
card also supports direct deposit of payroll funds, enabling H&R Block clients
to avoid high check-cashing fees and take advantage of many of the benefits
offered by a traditional bank account. “The H&R Block Emerald Prepaid MasterCard” is offered primarily
through the company’s network of 13,000 offices.

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Infohammer Introduces the ITWERCS System

Infohammer has released its “Information Technology Web-Enabled Restaurant Control System” to its key partners.
The “ITWERCS” system is a restaurant
management system that includes point of sale, kitchen display systems,
perpetual inventory, ordering, receiving, people management, employee
self-service for scheduling and online training. “ITWERCS” provides triple-redundancy at the unit level, and uploads all
transactions up to the Enterprise in real-time, providing for a rock-solid
point of sale that keep transactions going and customers happy. The
power of the Microsoft SQL-based Enterprise allows multi-unit managers to view
all data in a consolidated fashion, manages employees across multiple business units,
and its hierarchal security setup allows for easy administration of all
aspects of the restaurant business. All configurations, menu items,
inventory items and touchscreen layouts are managed from the Enterprise, which is
accessible via SmartClient, Web Client or the new Silverlight Client.

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National Payment Card Assn Gets Funded

National Payment Card Association has received $2 million from KPG
Ventures to spur growth into supermarkets and chain drug outlets.
The National Payment Card Association
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 can provide immediate savings to
consumers. Specifically, the program benefits retailers by helping them
shift away from the interchange fees credit card companies normally
charge on each transaction by moving them to the lower cost ACH system.
The merchant can then use some of the savings to change customers’
payment behavior by passing some of that savings along to them right at
the pump.

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Metavante’s 4Q/08 Revenue Gains 6% Y/Y

Metavante reported that fourth quarter revenue rose 6% to $433 million. Net income for the quarter of $40 million, compares to a $93 million net loss for 4Q/07. The Financial Solutions Group posted fourth
quarter revenue of $169 million, a 4% gain over 4Q/07. The Payment
Solutions Group generated fourth quarter revenue of $265 million, an 8%
year-on-year gain. During the quarter Chicago-based Harris renewed its
NYCE Network participation and named Metavante subsidiary NYCE its
primary provider of PIN debit and ATM card access.
Also the release of “BenSoft,” a software solution which combines the
“RepayMe” full flexible benefits administration platform with
Metavante’s healthcare payments processing and benefit debit card
solutions. The company expects organic revenue growth in 2009 of 3% to
4%. For complete details on Metavante’s fourth quarter performance visit
CardData ([www.carddata.com](http://www.carddata.com)).

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MICROREAD NFC

INSIDE Contactless will celebrate MicroRead series of successes and the company’s achievements in the NFC industry
at the Mobile World Congress. INSIDE’s third-generation MicroRead RF chip, which was introduced on
February 6, 2008, provides the broadest range of Near Field
Communication (NFC) options that enable numerous new contactless
applications. INSIDE and its MicroRead chip achieved several significant milestones in
the past year. The include: INSIDE and Sagem Wireless established a partnership to integrate
MicroRead and its associated software stack into Sagem’s new NFC handset
platform; INSIDE’s MicroRead chip was included in most of the NFC handsets
used by the Pay-Buy-Mobile operators in Australia, France, Ireland,
Korea, Japan, Malaysia, Norway, the Philippines, Singapore, Taiwan,
Turkey and the U.S.; INSIDE became a Sponsor member of the NFC Forum, and joined its
board of directors; NSIDE’s MicroRead NFC chip was selected as the winner of the GSM
Association’s 2008 Mobile Innovation Global Award for Most Innovative
Device-Centric Technology; INSIDE and FIME teamed to ensure NFC interoperability and develop a
comprehensive process, support and service portfolio for testing and
certifying NFC mobile handsets and Nokia Growth Ventures, Motorola Ventures and Samsung
Ventures America each participated in INSIDE’s latest round of funding.

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