SHELTER SURVEY

Based on a survey conducted by the housing charity Shelter, 7.5%
of those between the age 18 and 24 have been forced to use credit
cards to pay mortgage or rent over the past 12 months. According
to experts at the company, the credit crunch, interest rate hikes and
un-affordable housing, combined with irresponsible mortgage lending
and credit profiling are the reasons for this trend, which was mostly
felt in the West Midlands and Wales regions. In these regions, 9%
of homeowners and renters have been forced to make the respective
payments on credit.

Details

Alliance Data Posts its Strongest Quarter

Dallas-based Alliance Data Systems reported that total third-quarter revenue increased 14% to a record of $575.5 million. Adjusted EBITDA for the third quarter increased 30% to $172.8 million. ADS says the results were driven by double-digit growth from the “AIR MILES Reward Program” in Canada, U.S. Marketing (Epsilon) and private label services. During the second quarter, the Company announced that it had entered into a definitive agreement to be acquired by Blackstone which is expected to close in the fourth quarter. Marketing Services revenue increased 25% in the third quarter to $272.8 million compared to the prior-year period. Credit Services revenue increased 12% in the third quarter to $202.5 million compared to the prior-year period. Transaction Services revenue decreased 3% in the third quarter to $190.1 million compared to the prior-year period. The Company is raising its guidance for 2007 to revenue of $2.3 billion, up from the previous guidance of $2.25 billion. For complete details on ADS’ third quarter performance visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

Details

WaMu Q3 Credit Card Profits Slip 51%

Seattle-based Washington Mutual reported that third quarter net income for its Card Services unit decreased 51% from the year-ago quarter to $102 million. Managed card outstandings were $26 billion as of September 30th, compared to $22 billion one-year ago. At 5.73% of period-end managed receivables, the 30+ day managed delinquency rate was down from prior quarters due to the strong receivables growth in the quarter. Net credit losses of 6.370% during the quarter down from the prior quarter’s 6.49%. During the quarter, Card Services opened a record 945,000 new credit card accounts. Marketing to WaMu customers continues to be an important growth opportunity for Card Services and accounted for approximately one third of production. For complete details on WaMu’s latest performance, visit CardData ([www.carddata.com][1]).

WaMu Net Income Track Record
3Q/06: $207.0 million
4Q/06: $149.0 million
1Q/07: $256.0 million
2Q/07: $141.0 million
3Q/07: $102.0 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

Details

USAT Raises $15 Million from Investors

USA Technologies has sold to institutional investors a total of 2,142,871 shares of common stock at a price of $7 per share resulting in gross proceeds of $15 million. The private placement proceeds will be used towards the purchase of e-Port devices for the “Quick Start “program that enables buyers to proliferate credit card acceptance across their fleets of vending machines without tapping into capital dollars. With Quick Start, vending operators and bottlers pay only $24.95 per month for the e-Port device and full e-Port Connect services over a pre-determined period. USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management.

Details

ECHO Adds LendingTree Exec to its Board

Electronic Clearing House has announced the appointment of Keith B. Hall, recently retired as SVP President and CFO of LendingTree, to the Board of Directors. Hall brings to ECHO 30 years of experience in financial analysis, accounting, investor relations, strategic planning, process redesign and international operations. Hall held chief financial officer positions with three public companies (Broadway & Seymour, Inc., Loctite Corporation, and Legent Corporation) that were acquired. He also was employed for over twelve years in various financial positions of increasing responsibility at United Technologies Corporation (UTX), including chief financial officer of Carrier Corporation’s North American Operations. He holds an MBA from Harvard Business School and a Bachelor of Arts degree from Coe College. ECHO provides a fully integrated payment processing suite, including credit card processing, electronic check conversion (ECC), eChecks (ACH), check guarantee, check verification, check collection, and debit cards.

Details

GPN Completes Discover Network Integration

Global Payments has completed the integration of Discover Network card transaction processing and support services for the majority of its merchants. Global Payments now processes Discover Network card transactions for its direct merchants, as well as the merchants in its alliance with Comerica Bank, offering authorization, settlement, and support services in one, integrated, cost-effective, and simplified payments solution and is also currently integrating Discover Network card transaction processing and support services for its ISOs. Global expects to complete the integration of all of its independent sales organizations within the first half of next year. Global Payments is a provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi- national corporations

Details

PPI Offers Merchant Cash Advances

Payment Processing has announced a new referral relationship with AdvanceMe that allows PPI resellers to offer “Merchant Cash Advances” to merchants based on their future credit and debit card receivables. A “Merchant Cash Advance” provides working capital to business owners without any personal collateral by purchasing the business’ future credit card sales. Once a PPI merchant is approved, a lump sum is deposited into the merchant’s business checking account. As each day’s credit and debit card transactions are settled, a specified percentage is forwarded by PPI to AdvanceMe and applied to the remaining Merchant Cash Advance balance. Payment Processing is a integrated payment solutions provider.. AdvanceMe has made more than 40,000 fundings, providing more than 15,000 business owners in all 50 states with nearly $850 million dollars in working capital.

Details

First Data Renews National City Bank

First Data and National City Bank has agreed to a long-term contract extension for its debit and credit card portfolios currently processed by First Data. First Data will continue to provide comprehensive processing services for 5.6 million signature debit card accounts and 3.8 million credit card accounts. National City is also a member of First Data’s STAR Network, a coast-to-coast electronic payments network specializing in secure, real-time purchase and ATM transactions.

Details

PayPal Q3 Payment Volume Rises 34%

eBay reported that PayPal had 164 million total accounts at the end of the third quarter, a 34% increase from one-year ago. Total payment volume also rose 34% to a record $12.2 billion which includes payments initiated through the PayPal system but excludes its payment gateway business. The number of active accounts hit 37.5 million as of September 30th, its highest level to-date. During the third quarter, PayPal handled 177.4 million payments, a 3% increase over the prior quarter, and up 21% from 3Q/06. PayPal’s 3Q/07 transaction revenue rate increased to 3.67% from 3.70% in the prior quarter. The processing expense rate for the third quarter was 1.15%, compared to 1.07% for 3Q/06. PayPal’s transaction loss rate came in at 25 basis points, down ten basis points from one-year ago. For complete details on eBay/PayPal’s third quarter performance, visit CardData ([www.carddata.com][1]).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
3Q/06: $ 9.1 billion 122.5 million
4Q/06: $11.0 billion 133.0 million
1Q/07: $11.4 billion 143.3 million
2Q/07: $11.7 billion 153.1 million
3Q/07: $12.2 billion 164.0 million
SOURCE: CardData (www.carddata.com)

[1]: http://www.carddata.com

Details

Fair Isaac to Fight DoD Purchase Card Fraud

Fair Isaac reports that the U.S. Department of Defense will utilize the company’s industry-leading fraud detection technology to deter misuse in its “Purchase Card Program.” The “DoD Purchase Card Program” enables authorized DoD personnel to purchase certain goods and services, such as office supplies and equipment, directly from private sector vendors. It is one of several charge card programs that the DoD operates to streamline business processes and reduce administrative costs. Under terms of the agreement, Fair Isaac will deliver a custom modified “Falcon Fraud Manager” solution in an ASP environment to help the DoD combat misuse of purchase cards. The custom fraud solution will analyze each authorization transaction using DoD-specific risk indicators.

Details

Berman Marketing Enters Prepaid Cards

The Berman Marketing Group has announced its plan to enter the Pre-Paid Debit Card industry and target the unbanked and underserved market . The company’s plan to enter the Pre-Paid Debit Card Market is in the development stage. There are several major obstacles that will have to be overcome for the company to execute their plan. First, an agreement with a card issuer must be reached and secondly, the company will need additional capital to fund the marketing costs associated with this venture. The company plans to obtain the ability to market Pre-Paid Debit cards by leveraging the infrastructure of Merchant Processing International (MPI) on a revenue sharing basis. The Berman Marketing Group is a multi-channel direct market firm specializing in direct response marketing through television, radio, Internet and print media.

Details

Paymetric Unveils a Card SAP Solution

Houston-based Paymetric announced the release of a payment card management and analytics solution for optimizing payment card processing functionality in native SAP. The new “PCMA” provides tools to optimize credit card acceptance and improve transaction visibility through enhanced payment card utilities, expanded reporting and analytics capabilities, and advanced receivables management functionality. “PCMA’s” receivables management tools allow companies to accept credit card payments against an open invoice, a process that in native SAP would require the invoice be canceled and re-issued through the sales system. “PCMA” also allows companies to accommodate deposit and down payment processing in SAP by posting debits and credits directly to customer accounts from a payment card. Benefits of these improvements include reduced risk, improved customer satisfaction, and reduced days sales outstanding.

Details