Payment Data Systems Names a New CTO

Payment solution provider Payment Data Systems has promoted Ken Keller to VP and CTO. Keller brings more than 17 years in the development and delivery of specialized high volume transaction based systems. As the Chief Technology Officer, he is responsible for setting the architectural and product strategies, plans for Payment Data Systems’ merchant processing, bill payment and card issuing businesses. Prior to joining Payment Data Systems in 2003, he served in a variety of key leadership and executive technical roles at Billserv, Inc. He earned a Bachelor of Business Administration in Information Technology from the University of Texas – San Antonio.


CARD SWITCHEROOS research, conducted with the help of 1,560
participating credit card holders during November of 2007, has found
that 2.6 million cardholders plan to transfer their credit cards debts with
the start of the New Year. However, research also shows that this may be
difficult for many consumers given the limitations of the credit crunch-
deterring many from being able to switch cards. In addition, MoneyExpert
warns, balance transfer fees can be as high as 3% and 0% balance transfer
offers typically do not run longer than 10 months. These may be
factors to nearly 6.6 million cardholders whom have decided not to transfer
debt and remain with their current credit cards.



According to ABI research, the number of NFC chipset shipments will
grow steadily over the next 5 years, with 419 million projected for
shipment in 2012. Additionally for 2012, ABI forecasts that NFC
chipset ASP will decline to $0.97 to generate a market revenue of
$406 million given the conducive European market. These projections
were made using Bass Curve regression and an analysis bottom-up
approach to foresee the demand for handset applications from
operators and third parties. ABI Research market research firm
studies emerging technologies on consumer and business markets
using market intelligence, primary research, and expert assessment.

Details has Topped 100K Registered Users

Money management site has registered more than 100,000 users since September 2007 and has released the results of its first customer survey that reveals a change in spending habits.’s survey shows that 87% of respondents feel they better understand their spending after using Mint, with nearly half of them have changed their spending behavior as a result of what they’ve learned. The most frequent change being eating and drinking at home more often. In the coming months, will also add the ability to track investments, student loans and mortgages, giving users an even more complete view of their personal finances.


GPN Intros the Global Transport Platform

Atlanta-based Global Payments has launched a next generation payment processing platform. The new “Global Transport” platform offers a uniform application programming interface supported by multiple communication options to simplify and speed integration to the merchant’s payment acceptance environment for debit, credit, and EBT transaction processing. It will also enhance GPN’s ability to meet the growing demand for integrated POS payment processing solutions and reduce the complexity of integrating payments processing for software and hardware OEMs.


Fee Income Contributes 39% of Total Revenues


For 2007, P/L revenue and expense streams for the credit card industry calculated by investment banker R.K. HAMMER:

2007 Revenue Streams: $160.1 Billion total for ’07 vs. $145.3 Billion in ’06 18.30% ROA Yield

Interest Income: $97.1 Billion for ’07 (representing 61% of total revenue), up from $90.1 Billion in ’06

Fee Income: $63.0 Billion for ’07 (representing 39% of total revenue), up from $55.2 Billion in ’06

2007 Expense Streams: $119.4 Billion total for ’07 vs. $106.7 Billion in ’06 13.65% ROA Yield

Operating Expense: $40.7 Billion (34.1% of total expense), up from $39.5 Billion in ’06

Blended Cost of Funds: $37.6 Billion (31.4% of total expense), up from $33.6 Billion in ’06

Net Charge offs: $41.1 Billion (34.5% of total expense), up from $33.6 Billion in ’06

2007 Net Pretax Profit: $40.7 Billion, vs. $38.6 Billion in ’06 4.65% ROA Yield


This was the highest ROA % year for the card industry since 1987.

2007 ROA percentages based upon our model’s denominator calculation of $875 Billion in card loans for national brand and private label/retail credit card segments.

R.K. Hammer has been tracking card profitability and credit card portfolio sale prices since 1983, and is a leading independent broker of bank card portfolios in the U.S. and in 50 countries abroad.


Consumer Bankruptcy Filings Top 800K in 07

The number of new consumer bankruptcy filings soared by 40% in 2007. According to the American Bankruptcy Institute, relying on data from the National Bankruptcy Research Center, overall consumer filings for the 2007 calendar year reached 801,840 compared to the 573,203 filings recorded during the similar period in 2006. However, NBKRC’s data also showed that the 66,389 consumer filings recorded in December represented a 7.5% decrease from the 71,799 filings in November. Chapter 13 filings constituted 38% of all consumer cases in December, a slight decrease from November. According to the Office of the U.S. Courts bankruptcy filings peaked at more than two million in 2005 as new bankruptcy laws went into effect that greatly reduced eligibility to make a Chapter 7 filing. says that many homeowners are upside down on their mortgages and maxed out on their credit cards, setting the stage for higher figures in 2008.


Online Xmas Sales Post a Respectable 19% Gain

The final figures are in that show online holiday sales rose 19% to a record $29.2 billion between November 1st and December 31st. Monday, December 10th was 2007’s “Cyber Monday,” posting more than $880 million in sales. VA-based comScore reports that the softness in the growth of online retail sales during the first ten days of November was a drag on the final figures, but the period between Thanksgiving and Christmas experienced a strong 21% growth rate. comScore previously reported $24.6 billion in 2006 holiday sales and $21.3 billion for the 2005 season. The other top online shopping days for 2007 were Tuesday, December 11th with $819 million and Thursday, December 6th with $803 million in sales. The heaviest spending week during the 2007 holiday season was the week ending December 16th, with $4.7 billion in online sales, edging out the week ending December 9th, which saw $4.6 billion.


Solutran Captures 34% of NACHA BOC in Q3

Solutran reports a 34% market share of industry Back Office Conversion volume for the quarter ending September 30, 2007. Most of Solutran’s share can be attributed to its patent-pending BOC solution, Solutran’s POS and Imaging Network, or “SPIN”. Check depository information is captured in the merchant’s current POS system and checks are then forwarded to Solutran’s centralized processing center for imaging, archiving, and destruction. NACHA recently released BOC’s national processing volumes for the third quarter at 840,743 transactions.


Vesdia Names a Board Member as CEO

Loyalty marketer Vesdia has named James Douglass, previously with Swingvote, as CEO. As President of Swingvote, Douglass led the company’s strategy for electronic delivery of shareholder communication services to the top 50 banks and brokerage firms. Douglass previously served as CEO of Visionary Systems where he developed and implemented successful business initiatives for delivering decision software to the top 100 financial institutions. He earlier held positions as CFO and Executive Vice President of Corporate Development at CheckFree. Douglass began his career in financial services at KPMG Peat Marwick. He holds a Bachelor of Business Administration in Finance and Accounting from Georgia State University.


MC Inks PayPass, Easy Savings and QSR Deals

Airport concessionaire The Paradies Shops has agreed to accept MasterCard “PayPass” and Burger King has launched a post-holiday MasterCard sweepstakes. Also, Microsoft and Monster have joined the “MasterCard Easy Savings” program. The Paradies Shops will offer “PayPass” at its more than 500 retail store locations throughout the U.S. and Canada by late 2008. Paradies operates in over 60 airports and hotels in North America. The new BurgerKing/MasterCard promotion gets underway today through March 2nd. MasterCard cardholders in the U.S. are automatically entered to win each time they make a purchase at a participating Burger King restaurant. Prizes include $500 “MasterCard Gift Cards,” $250 “MasterCard Gift Cards” and $50 “BK Crown Cards.” Grand Prizes includes a $5,000 travel award. The MasterCard/Burger King promotion is being supported through in-restaurant POP as well as advertising in InTouch, US Weekly, Star and People Magazine. Under the Microsoft and Monster deals, MasterCard “BusinessCard” credit and signature debit cardholders enrolled in the program will receive a 3% discount on online search marketing and related advertising services from Microsoft, as well as a 5% discount on online recruitment services from Monster. The “MasterCard Easy Savings” program was launched in September and provides savings from business-relevant merchants across key purchasing categories and includes over 25 participating issuing banks.