Fair Isaac Third Quarter Revenues Drop 10%

Minneapolis-based Fair Isaac posted third quarter revenues of $178.2 million, compared to $198.7 million in the prior year period.
Income for the quarter was $23.8 million, compared to $32.5 million for 3Q/07. Scoring Solutions revenues dipped 19% to $37.3 million due to a decrease in revenues from risk scoring services at the credit reporting agencies and from its “PreScore Service.” Strategy Machine Solutions revenues decreased 4% to $94.5 million due to declines associated with revenues derived from fraud and collections and recovery products.
Professional Services slipped 9% to $33.2 million due to a decline associated with Analytic consulting services. Analytic Software Tools revenues dropped 25% to $13.2 million, due to a decrease in revenues generated from sales of the “Blaze Advisor” product. Due to the uncertain economic environment and limited visibility into clients’ spending intentions, Fair Isaac is not providing guidance at this time.
For complete details on Fair Issac’s third quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

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Consumer Confidence Hits Bottom; Wallets Close

Consumers’ economic confidence hit bottom again, declining by 7% from September to October. About 63% now rate the economy as poor and 72% think things are getting worse. The “Discover U.S. Spending Monitor” fell a record six points in October to 80.4. For the first time since the “Monitor’s” inception, 60% of consumers rate their finances as fair or poor. Nearly 56% of consumers also said their finances were getting worse. This record-high reading is up 4 points from September and more than 15 points from a year ago. However, a majority of consumers continue to have money left over after paying their monthly bills. This is the seventh consecutive month the number has been over 50%. Of those who had money left over, 79% have the same or more money left over than the previous month. Discover says one reason for the surplus may be consumers’ desire to cut back on discretionary spending to make ends meet. Consumers seem content with holding onto their extra money rather than spending it, an obstacle to a consumer-led economic recovery.

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Fiserv and Partners Intro UChoose Rewards

Fiserv has teamed with Affinity Solutions and Bridge2 Solutions, a leading redemptions provider to roll out
“UChoose Rewards” which provides merchant-funded and issuer-funded rewards
for financial institution. The Fiserv rewards product enables clients to build programs based on
the wants and needs of their cardholders and was developed to offer cardholders
the ability to earn points faster and redeem them from a wider range of
reward choices. “UChoose Rewards” will also allow financial institutions to
offer their customers the ability to combine points earned for all their
bank or credit union accounts, receive cash back for their card usage
and use the program to earn entertainment rewards as well as millions of
items of merchandise. The program allows institutions to
offer relationship-based rewards, for example, points for opening a new
account or taking out a loan with the institution and
has a wide range of customizable marketing materials as well as multiple
options in setting up the program.

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Global Axcess Triples Net Income in 3Q/08

FL-based ATM specialist Global Axcess posted $5.6 million in third
quarter revenues, about the same as the year ago quarter. Net income
nearly tripled to $276,800. The Company noted that the increase in
revenue was mainly due to an increase in surcharge/convenience fees on
selected ATMs beginning in the first quarter of 2008. During the quarter
Global Axcess reached a contingent settlement agreement with CAMOFI
Master LDC, a debt holder of Global Axcess and will pay $3.7 million in
cash to CAMOFI to cancel the note executed in October 2005. The
settlement agreement resolves the lawsuit initially filed by CAMOFI in
October 2007 and amended in December 2007 alleging breach of contract by
the Company. Through its wholly owned subsidiary,Nationwide Money
Services, the owns, manages or operates approximately 4,300 ATMs in its
national network spanning 44 states. For complete details on Global
Axcess’ latest performance visit CardData ([www.carddata.com](http://www.carddata.com)). (CF
Library 8/18/08)

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Online Retailers Expect Higher Holiday Sales

More than half of online retailers expect their holiday sales to increase at least 15% over last year. The “2008 eHoliday Study,” conducted by Shopzilla for Shop.org, also found that 78% plan to offer free shipping at some point during the holiday season, consistent with last year’s levels. Many retailers have beefed-up their Website features to improve the customer experience. Other findings: consumers acknowledge that 24-hour shopping convenience is one of the main reasons why they choose to buy online (58.6% this year vs. 58.5% last year). Shoppers’ other top reasons for buying online instead of in stores include not wanting to fight crowds (41.1%), easy price comparisons (36.4%), and free shipping (33.3%). Also, nearly one in four shoppers (23.1%) says they are spending more online due to high gas prices, more than double the number which said the same last year (9.0%).

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HPY’s Q3 Processing Volume Leaps 42% to $20B

NJ-based processor, Heartland Payment Systems, reported that total revenues for the third quarter rose 20% to $425 million, compared to 3Q/07. Total transaction processing volume jumped 42% to $20.0 billion. Net revenues in the third quarter were $119.3 million, an increase of 47.9% compared to the third quarter of 2007. Excluding
Network Services, net revenue was up 14.3% to $92.2 million. PBY notes that transaction processing volume and net revenue growth reflect a solid increase in the size and profitability of new merchants
added, offset by a 2% decline in same store sales. The Company adjusted its guidance for fiscal 2008. For the year, it expects net revenue (total revenues less interchange, dues and assessments) to grow
by 15 – 16% organically, to between $349 and $352 million. For complete details on Heartland’s latest performance visit CardData ([www.carddata.com](http://www.carddata.com)).

HEARTLAND PAYMENT SYSTEMS REVENUES
3Q/07: $355 million
4Q/07: $342 million
1Q/08: $340 million
2Q/08: $395 million
3Q/08: $425 million
Source: CardData (http://www.carddata.com)

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Small Business Embraces E-Banking

A new report from Aite Group reveals that 41% of U.S. small businesses prefer to interact with their
banks via the online channel. The report examines the
key issues currently challenging the online small-business banking
strategies of large U.S. banks, and provides insight into their plans for overcoming
them. Additionally, 81% of large banks rate their small-business customer’s
level of trust in online banking as “high to very high,” compared to the 33% that
felt this way 24 months ago. These are numbers that banks cannot afford to ignore,
and the online channel is one which banks should strive to fully leverage. Most
banks, however, currently limit small-business options by serving them on consumer
solutions, and do not yet have fully developed online offerings for these
customers. Of the banks surveyed, 53% are seeing much
greater customer retention as a result of migrating their small-business
customers from a retail banking platform over to a business banking platform, while
50% are seeing a greater number of both products and 47% see advanced online
capabilities used as a result of migration.

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ViVOtech Unveils the ViVOpay Kiosk II

NFC provider ViVOtech has launched the “ViVOpay Kiosk II” contactless payment reader for the kiosk, transit
turnstile, bus validator and ticketing markets. “ViVOpay Kiosk II” is a flexible contactless reader that is comprised
of a compact controller module and a customer-facing contactless antenna
module for easy integration into a new customer facing self-service
system. It features a weather-proof customer-facing antenna
that allows it to be used in self-ordering kiosk systems across a wide
variety of industries including parking meters, ticket
validation/payment machines, transit turnstile systems, airport self
check-in systems, on buses ticket acceptance machines, and many more.
ViVOpay Kiosk II also enables self service systems to accept
transactions from NFC mobile phone for payments, ticketing, promotions,
and coupons redemption applications.

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October Consumer Bankruptcy Filings Rise 40%

As predicted in Monday’s CardFlash, consumer bankruptcy filings topped 100,000 in October. The latest statistics from the American Bankruptcy Institute and the National Bankruptcy Research Center show a consumer filing total of 106,266 in October, a 20% sequential increase and up 40% over October of last year. The October figure represents the first time that bankruptcies have topped 100,000 since the “Bankruptcy Abuse Prevention and Consumer Protection Act” went into effect in October 2005. So far this year consumer filings have hit 880,076. According to the Administrative Office of the U.S. Courts, filings in the 12-month period ending June 30th neared the one million mark. The 967,831 bankruptcy cases filed represent a 29% increase over the prior 12-month period. Of the total filings 64% were Chapter 7 filings. Consumer filings for the same 12-month period, totaled 934,009, up 28% from the 727,167 bankruptcies filed in the 12-month period ending June 30, 2007.

BANKRUPTCY FILINGS
Jan 08: 66,050
Feb 08: 76,120
Mar 08: 86,165
Apr 08: 92,291
May 08: 91,214
Jun 08: 82,770
Jul 08: 94,124
Aug 08: 96,413
Sep 08: 88,663
Oct 08: 106,266
Source: CardData (www.carddata.com)

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USA Technologies’ Third Quarter Profits Soar

PA-based wireless cashless transaction specialist USA Technologies reports that its gross profit for the third calendar quarter soared 74% to $0.9 million, from the same quarter a year ago.
The increase primarily driven by an increase in the profit margin of its “ePort” equipment sales and the result of lower production costs. Total revenues for 3Q/08 were flat at $3.4 million. During the quarter, the Company processed approximately 4.7 million transactions totaling more than $11.6 million, compared to approximately 1.8 million transactions totaling more than $7.3 million in the same period of the prior year. This represents an increase of 161% in transaction volume and 59% in dollars processed. USAT currently has more than 42,000 customer connected devices on its USALive Network as compared with 24,000 a year ago. The Company has agreements with AT&T, Honeywell, Blackboard, MasterCard and others. For complete details on USAT’s third quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

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First Data and InComm Terminate Acquisition

First Data and Atlanta-based prepaid card provider InComm have mutually agreed to
terminate the planned acquisition of InComm but have signed a distribution agreement.
First Data and InComm will continue to support their joint customers with prepaid card
processing, program management and a distribution network that allows
First Data and its merchants to sell prepaid products in InComm prepaid
card malls. InComm provides marketing, distributing and technology
innovation of stored-value gift and prepaid products.

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AACC’s Q3 Revenues Climb 11% and Posts Profit

MI-based debt collector Asset Acceptance Capital reported that third quarter revenues increased 11% to $59.4 million. Net income for the quarter was $3.0 million, compared to a net loss of $1.7 million for 3Q/07. Purchased receivable revenues rose 12% to $58.1 million for the third quarter. During the quarter, the Company used $36.0 million to purchase charged-off consumer debt portfolios with a face value of $725.8 million, for a blended rate of 4.96% of face value. AACC says that its dollars invested in purchasing consumer debt portfolios returned to more normalized levels during the quarter. However, with the financial markets in turmoil, the Company was selective in its approach to purchasing during the third quarter, but expects there will be additional supply and better pricing in the next 12 to 18 months. For complete details on AACC’s third quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

Asset Acceptance Capital Revenues
3Q/07: $52.6 million
4Q/07: $62.2 million
1Q/08: $64.4 million
2Q/08: $56.5 million
3Q/08: $59.4 million
Source: CardData (www.carddata.com)

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