Vaultid has successfully engineered and tested a fully functional prototype of its “Vaultid Card”, a credit card that uses a computer chip, biometric fingerprint sensor and dynamic account numbering to protect users from identity theft The Vaultid Card only works after users pass their fingers over the sensor and the card’s microchip confirms their identity. Once the user’s identity is confirmed, the card displays a unique account number that’s transmitted along a secure merchant network via radio frequency identification technology. The unique number allows users to complete their transactions. Vaultid Cards can generate up to 10,000 unique account numbers before repeating a number. Vaultid LLC provides identity-theft solutions to banks, government agencies and various businesses.Details
NCR reported that second quarter revenue for its ATM business was $380 million, an 11% gain compared to one-year ago. The ATM segment was driven by strong revenue growth in Europe and Asia which outpaced a revenue decline in the Americas region and led to the year-over-year revenue increase. Operating income of $47 million increased from the $31 million generated in the second quarter of 2006 as higher volume and the benefit of currency translation more than offset an unfavorable shift in geographic revenue mix. Retail Store Automation reported revenue of $221 million and operating income of $8 million, the same as generated in the second quarter of last year. NCR expects its 2007 GAAP earnings to be $2.21 to $2.31 per share. For complete details on NCR’s current and past performance, visit CardData ([www.carddata.com])
NCR ATM REVENUE HISTORICAL
2Q/06: $343 million
3Q/06: $349 million
4Q/06: $472 million
1Q/07: $312 million
2Q/07: $380 million
Source: CardData (www.carddata.com)
Hypercom Corporation announced that its new IP-enabled Optimum T4200 platform has gained approval under MasterCard Worldwide’s Payment Terminal Security Program. To earn MasterCard’s approval, the products passed tests demonstrating that they protect transaction and cardholder data exchanged between the terminals and servers that the terminals communicate with, using encryption algorithms approved by MasterCard to guard against attacks such as eavesdropping, traffic injection, or device masquerading. The tests were conducted by an independent, accredited lab recognized by MasterCard. The results were reviewed by MasterCard before the approvals were granted. Hypercom Corporation is a provider of high security, end-to-end electronic payment products and services.Details
MasterCard posted record net income of more than $252 million for the second quarter compared to a $310 million loss one-year ago, as net revenues climbed 18% to $997 million. In the prior quarter, MasterCard earned $215 million on revenues of $915 million. Gross dollar volume climbed 13% for 2Q/07 to $555 billion and worldwide purchase volume increased 15% to $414 billion. As of June 30th, the Company’s customers had issued 855 million MasterCard cards, an increase of 11% over the same period in 2006. General & Administrative Expenses rose 18% to $431.5 million. However, Advertising & Market Development Expenses declined about 13% to $268.3 million. Total operating expenses increased 3.2%, to $725 million in the second quarter compared to the same period in 2006. For complete details on MasterCard’s second quarter performance, visit CardData ([www.carddata.com]).
MASTERCARD HISTORICAL ($ millions)
2Q/06 3Q/06 4Q/06 1Q/07 2Q/07
G&A: $365.2 $392.1 $399.3 $398.5 $431.5
A&M: $307.1 $290.2 $352.9 $178.5 $268.3
Net Income: ($310.5) $193.0 $ 40.9 $214.9 $252.3
Note: G&A: General & Administrative Expenses;
A&M: Advertising & Market Development Expenses.
Source: CardData (www.carddata.com)
Simplefy has entered into an agreement with First Data to begin offering the First Data “POS Value Exchange” solution. “POS Value Exchange” replaces a cash register and traditional point-of-sale terminal with a computer-based system that delivers a complete store management solution with greater information security, speed of transactions and more flexible payment options for customers. POS Value Exchange leverages three companies’ core competencies: 1) First Data’s payment processing power for virtually all forms of payment, from credit and debit to gift cards and checks; 2) Microsoft Dynamics – Point of Sale 2.0 software from Microsoft designed to manage inventory, track sales and improve customer management; and 3) a rugged, retail-specific point of sale hardware solution from HP. Simplefy is global provider of Point of Sale solutions with 1.5 billion dollars in credit card processing under management.Details
A monthly survey of the business economy shows that the housing market is continuing to be a major drag on the economy. The seasonally adjusted “Credit Manager’s Index” fell 1.2% in July, the first decline in four months. The report showed that eight of the 10 components in the “Index” fell. On a year-over-year basis, the combined “Index” fell 1.6% to 56.0. The manufacturing sector dropped 1.7% on a seasonally adjusted basis as seven of the 10 components of the index fell. The service sector fell 0.7% on a seasonally adjusted basis as five of 10 components fell. The CMI survey asks credit managers to rate favorable and unfavorable factors in their monthly business cycle.
Credit Manager’s Index
Jul 06: 57.6
Aug 06: 57.3
Sep 06: 57.1
Oct 06: 55.3
Nov 06: 55.2
Dec 06: 54.7
Jan 07: 57.2
Feb 07: 56.6
Mar 07: 55.0
Apr 07: 56.6
May 07: 56.7
Jun 07: 57.2
Jul 07: 56.0
Source: National Association of Credit Management
First Data announced that its shareholders approved the merger agreement with an affiliate of Kohlberg Kravis Roberts & Co. (KKR) with over 98% were cast in favor of the merger. Upon the closing of the merger, the Company’s shareholders will be entitled to receive $34.00 in cash, without interest, for each share of First Data common stock held. First Data is a provider of electronic commerce and payment solutions for businesses worldwide.Details
TSYS Europe and Lloyds TSB have rolled-out a new money transfer card in the UK. The new “Silver” account from Lloyds TSB includes a money transfer prepaid product, aimed particularly at the growing number of newly arrived migrants living and working in the U.K. Both firms said they launched one of the quickest prepaid products to market by a major bank. TSYS says the “Silver” account was launched on April 23rd and initial customer response has been fantastic.Details
Economic confidence among small business owners rose in July after a very sharp drop in June which was driven by a deteriorating outlook on economic conditions for their businesses, rising insecurity about the U.S. economy and increased cash flow issues. The “Discover Small Business Watch” index rose to 107.3, up nearly five points from June’s 102.5. The number of small business owners who report having had no cash-flow issues for the past 90 days is up to 60, the highest it has been since March. Discover found that 41% of small business owners feel that economic conditions for their business are getting better, a significant increase from 34% in June. about 39% of owners said that they would rate the overall U.S. economy as excellent or good, which is nearly the same as last month’s 38%. Also, 38% plan to increase spending on business development, up from 35% last month. Additionally, the poll found that three out of four small businesses said that their business either increases or stays the same during the summer.
Discover Small Business Watch
Aug 06: 100.0
Sep 06: 107.0
Oct 06: 120.0
Nov 06: 130.0
Dec 06: 109.7
Jan 07: 114.3
Feb 07: 113.4
Mar 07: 117.7
Apr 07: 110.3
May 07: 110.0
Jun 07: 102.5
Jul 07: 107.3
Source: Discover Business Card
VISA USA reported that 96% of the largest businesses that accept its cards for payment have confirmed they are not storing sensitive account data. Purging sensitive data such as magnetic stripe (also known as track data), “CVV2” (the security code on the back of the card) and PIN data from merchant payment systems and growing compliance with the “PCI DSS” were the stated goals of VISA’s “PCI Compliance Acceleration Program” launched in December. As of July, 40% of “Level 12” merchants validated compliance with the industry security standard. Another 50% have submitted their initial validation and are actively working to address remaining security deficiencies. The remaining 10% are working on their initial assessment. “Level 1” merchants identified by VISA from 2004 through 2006 must validate compliance by September 30th. Those “Level 1” merchants identified in 2007 must validate compliance by September 30, 2008. About 88% of “VisaNet” processors and 65% of third party agents have validated compliance with the “PCI DSS” and the remaining population is actively working to do so.Details
Advanta Corp. reported second quarter 2007 net income from continuing operations of $0.51 per diluted share for Class A and Class B shares combined. This is $0.03 per share higher than the first quarter. It includes a $0.01 per share asset valuation gain associated with the Company’s venture capital portfolio.
“The powerful dynamics we have described in the business are once again demonstrated by the performance in the quarter,” said Dennis Alter, Chairman and CEO.
Ending managed receivables grew to $6.0 billion at quarter end with ending owned receivables totaling $1.1 billion. During the quarter, 103,000 new customers were added and transaction volume increased to $3.7 billion. The managed net credit loss rate was 3.48% and the owned net credit loss rate was 3.06%.
Advanta is one of the nation’s largest credit card issuers (through Advanta Bank Corp.) in the small business market today. Advanta’s exclusive focus on this market, as well as its size, experience and commitment to developing meaningful product offerings and a high level of service tailored to the needs of small businesses, differentiate the company from other issuers. Founded in 1951, Advanta has long been an innovator in developing and introducing many of the marketing techniques that are common in the financial services industry today. Learn more about Advanta at www.advanta.com.
For complete details on Advanta’s latest performance visit CardData ([www.carddata.com]).