RDS & TRANSNET

POS system provider Retail Data Systems has entered an agreement with IP
IP networking solution provider Precidia to offer the “Transnet” payment
engine. Retail Data Systems has deployed the TransNet solution in
several quick service restaurants (QSR) using existing NEC cash
registers and POS systems. TransNet is a payment application that
handles transactions from card swipe to authorization by a processor and
offers merchants and dealers the flexibility to route transactions to
any processor, without any hidden fees or difficulty. The router-based
design provides a higher level of security than competing options, by
safeguarding the payment application on a firewalled, SSL encrypted
router rather than a vulnerable PC or POS device.

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Security One FCU Switches to TNB

TNB will take over the processing of the 2,500 debit and 1,500 credit
card portfolio of TX-based Security One Federal Credit Union.
The new processing agreement enables Security One to issue new credit
union-designed plastics for its card-carrying members. Debit cardholders
will
receive a Texas-themed card and credit cardholders will receive a
patriotic card with an
image of an eagle and U.S. flag. TNB will take over the processing of
approximately 2,500 signature debit
accounts and 1,500 credit cards with outstanding balances exceeding $2
million.
The Security One FCU credit card program will be evaluated by TNB’s
portfolio
consulting team to assess pricing, product, and risk in correlation with
its performance.
Security One also plans to roll out TNB’s Rewards2U loyalty program for
both its
signature debit and credit cardholders. The credit union will leverage
Rewards2U
for other credit union products and services, such as online bill pay,
home loans,
and auto loans in addition to using it to reward cardholders for usage.
Security One Federal Credit Union has 10,000 members and assets of $46
million.

Details

VISA EUROPE 2008

Visa Europe reported that gross point of sale volume grew 10% in 2008 to 1.39 trillion euros generated from 361 million cards. Debit cards POS volume was up by nearly 11% and online transactions jumped 24% during the December Christmas shopping period. Visa Europe notes that on the busiest holiday shopping day it processed 731 transactions every second, with a total of 24.5 million in that one day to a value of 1.4 billion euros. Over the last three years Visa Europe invested on average 87 million euros every year on research and development of new products and technology. Visa Europe is owned and operated by its 4,600 European member banks and was incorporated in July 2004. In October 2007, Visa Europe became independent of the new global Visa Inc., with an exclusive, irrevocable and perpetual licence in Europe. About 11%
of consumer spending at the point of sale in Europe is with a Visa card.

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RDM & HBNET

Hypercom’s “HBNet” will provide high speed transaction transport services for Canadian e-payment processor RDM Corporation. The “HBNet” network speeds the authorization and processing of electronic
transactions for retailers, financial institutions, government and
healthcare providers. RDM is a provider of specialized software and hardware products for electronic payment processing. RDM has
pioneered electronic check conversion systems and web based image and
transaction management services for banks, retailers, payment processors
and government agencies as well as print quality control and image quality systems for a variety of global customers.

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NOV INDEX

The Conference Board Leading Economic Index declined 1.4% and The
Conference Board Coincident Economic Index decreased 0.2% in November.
The LEI declined sharply again in November as a result of
a large decline in industrial new orders, followed by smaller declines
in production expectations, new unemployment claims (inverted) and the
stock price component. The yield spread was the only positive
contributor. Between May and November, the leading index declined 4.9%
(a -9.5% annual rate), which is below the 2.2% decline (a -4.3%
annual rate) during the previous six months.
The Coincident Economic Index, a measure of current economic
activity, also declined in November, the fourth decline in the last six
months primarily as a result of falling industrial production and
employment. During the last six months, Real GDP declined at a 0.4%
average annual rate in the second and third quarter of 2008 (including a
0.5% annual rate of growth in the third quarter), well below the 1.5%
average annual rate of growth during the previous two quarters. the
leading economic index now stands at 101.9 (2004=100).

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Dillard’s Offers Planet Payment Service

Retailer Dillard’s is now offering NY-based Planet Payment’s “Pay in Your Currency” service.
The “Pay in Your Currency” service provides international shoppers paying
for their purchases with Visa or MasterCard payment cards with the choice to
pay in their home currency at the point of sale, rather than allowing their
issuing bank to perform the conversion after the sale has been completed. The service
provides greater clarity and certainty to international purchases by allowing the
customer to pay in the currency that he or she knows best. The service
is being offered through OH-based Fifth Third Processing Solutions
Dillard’s current credit card acquirer. Planet Payment enables processors, acquiring banks and their
merchants to accept process and reconcile credit card transactions in multiple
currencies, allowing cardholders to view prices and settle transactions in their native
currency.

Details

CardWizard/FCP 20/20 Deployed in TX

TX-based Advancial FCU is installing Dynamic Card Solution’s
“CardWizard” instant issue program. Advancial will be installing DCS’
instant issue
software and hardware in their Texas, Louisiana and Alaska branches. The
Credit Union’s instant issue program will enable instant issue of a
permanent debit
card immediately at the branch location in lieu of members having to
wait seven to 10 business days to receive their card and personal
identification numbers (PINs) through the mail. The card can then be
immediately used at ATMs and for most POS transactions once the member
leaves the branch. Advancial
decided to offer its members unembossed debit cards utilizing the FCP
20/20 printer to print, in real time, the cardholder’s personal card
information on its custom pre-printed plastic. DCS’ “CardWizard” software
transfers all personalization data to the FCP 20/20 where the card is
securely and immediately printed and presented to the cardholder at the
time of their visit and is the first and only instant issuance
application in the financial marketplace to have validated compliance
with Visa’s Cardholder Information Security Program (CISP) and Payment
Application Best Practices (PABP)

Details

Tier Technologies Acquires ChoicePay

Tier Technologies has inked an agreement to purchase substantially all
of the assets of OK-based ChoicePay. The deal is for $7.5 million in
cash at closing and an earn-out based upon a percentage of the
profitability of future defined new client business not to exceed $2.0
million. ChoicePay specializes in streamlining high-volume bill payment
processes enabling billers to accept customer payments by electronic
check, credit card or cash using a superior Internet, IVR, call center,
kiosk, and agent payment platforms. ChoicePay has over 50 contracts and
about $10 million in annual revenues. Tier Technologies currently serves
over 3,300 electronic payment processing clients throughout the USA.

Details

Selling Source Acquires a CompuCredit Unit

NV-based Selling Source has acquired the marketing unit of CompuCredit
and has formed a new consumer financial products group to target U.S.
credit card issuers. In addition the group will also handle credit card
lead generation in the U.K. As part of the deal, CompuCredit entered
into a long-term agreement to perform certain marketing services for
FPG. John Hashman, formerly with CompuCredit, heads the newly acquired
team as EVP of the group. Jon Colston, who served as the director of
risk management at CompuCredit, also joins FPG as director of
operations. London Bay Capital, a private equity firm based in San
Francisco, acquired a controlling interest in Selling Source in December
2007.

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Merchant Focus Names a New Sales Exec

Payment solution provider Merchant Focus Processing has hired Nathan
England, previous with CyberSource, to the position of VP, Reseller
Marketing. England worked for
CyberSource Corporation (CYBS) as Authorize.Net’s Inside Sales Manager,
and more recently as a Business Development Manager helping develop,
grow and manage Authorize.Net’s Affiliate Reseller program. England will
now be
responsible for managing the Recurring Revenue Reseller program, which
provides merchant accounts for the clients of
software developers, billing systems, mail order management solutions,
shopping carts and technology partners. Merchant Focus Processing,
focuses on two unique market segments, each of which has special
requirements and challenges. Merchants
transacting $250,000 or more annually in credit card sales qualify for
Interchange-Plus pricing with no monthly fees of any kind through
Established Merchants Only.com, and brand new businesses encounter
special merchant friendly terms and low Two Tier pricing through
Merchant Focus.com.

Details

U.S. Bank’s Q4 Acquiring Volume Drops 12%

U.S. Bancorp reported that its fourth quarter merchant acquiring volume
slipped by 12.4%, compared to the third quarter and is down 6.1% from
the fourth quarter of last year. Also, fourth quarter credit card
charge-offs rose 33 basis points sequentially and are now up 189 basis
points from one-year ago. U.S. Bancorp’s Payment Services contributed
$235 million of the Company’s net income in the fourth quarter, a
decrease of 25.2% from the same period of 2007 and a 12.6% decrease from
the third quarter of 2008. The decline was due primarily to an increase
in charge-offs, higher delinquency rates and changing economic
conditions. Merchant acquiring volume for the fourth quarter was $58.6
billion, compared to $66.9 billion in the prior quarter and $62.4
billion for 4Q/07. U.S. Bancorp currently processes for 843,388
merchants. Credit card charge-offs rose to 5.18% for the fourth quarter,
compared to 4.85% for 3Q/08 and 3.29% for 4Q/07. Average credit card
loans grew from $12.2 billion in the third quarter to $13.0 billion. For
complete details on U.S. Bancorp’s 4Q/08 performance, visit CardData
([www.carddata.com](http://www.carddata.com)).

U.S. BANCORP
MERCHANT ACQUIRING VOLUME HISTORICAL
4Q/06: $56,007,000,000
1Q/07: $57,839,000,000
2Q/07: $62,853,000,000
3Q/07: $63,882,000,000
4Q/07: $62,382,000,000
1Q/08: $64,853,000,000
2Q/08: $66,940,000,000
3Q/08: $66,941,000,000
4Q/08: $58,630,000,000

CREDIT CARD CHARGE-OFFS
4Q/07: 3.29%
1Q/08: 3.93%
2Q/08: 4.84%
3Q/08: 4.85%
4Q/08: 5.18%
Source: CardData (www.carddata.com)

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