Cash Systems First Quarter Revenue Rises 25%

Las Vegas-based Cash Systems has announced first quarter 2007 revenue was $25.5 million, an increase of 25%, compared to $20.5 million in the first quarter of 2006. The Company reported a loss of $268,021 from operations of in the first quarter of 2007 compared to loss from operations of $1.5 million in the prior year period. Net loss was $1.4 million, or $0.08 per diluted share, compared to net loss of $1.2 million or $0.07 per diluted share in the first quarter of 2006. The Company’s long-term EBITDA margin target is 10% to 12%. Although the Company does not expect to achieve its long-term EBITDA margin target in 2007, the Company does expect EBITDA to be positive in every quarter of fiscal 2007 and the second half of the year should reflect new product introductions and their positive contribution to margins. Cash Systems is a provider of cash-access and related services to the retail and gaming industries.

Details

Consumer Action & AmEx Expand Credit Training

Consumer Action and American Express have expanded their jointly developed credit card education program, “Credit Cards: What You Need to Know,” and scheduled three additional free training events in Plantation, Florida; Phoenix, Arizona and Birmingham, Alabama. The program is centered on a training module with a curriculum and educational brochures, translated into five languages, that are distributed to the more than 9,000 community-based organizations within Consumer Action’s network to educate consumers about how to best choose and use credit cards. Last year, American Express and Consumer Action awarded $82,250 to 30 agencies that had been trained at the project’s training meetings to support their own education activities and the use of the materials. American Express and Consumer Action launched the program in 2005. Consumer Action is a non-profit 501(c)(3)advocacy and education organization. Consumer Action conducts surveys of credit card rates and terms, tracks trends in the industry and assists consumers in comparing cards and understanding their rights when using credit.

Details

Brits Income Allocates 15% to Cards

CPP life assistance firm has recently conducted a survey showing that
adults in the UK spend 15% of their annual income on credit card
purchases. This figure averages to be GBP2,540 per year, per consumer
which could averages to be as much GBP150,000 through out the
their lifetime. Furthermore, 40% of those polled search for 0%
transfer deals, women own fewer cards than men and 12% sign up
for a gold card because “it looks good in their wallet”. Also, 80%
are aware of the risks of identity theft and 13% have been victims.

Details

e-Port Drives USA Technologies Q1 Revenues

PA-based USA Technologies reports that revenue for the first calendar quarter soared by 66% to nearly $3 million. The revenues were driven by higher sales of the Company’s “e-Port G-6” product which is part of a MasterCard “PayPass” initiative, as well as accelerating growth in license and transaction fees as the Company adds more connections to its “USALive” network. During the quarter, USA Technologies began to equip Great Plains Coca-Cola Bottling Company’s vending machines with its “e-Port G6” cashless transaction solution to accept “MasterCard PayPass.” The Company also completed a $10 million private placement during the quarter. More recently, USAT launched “e-Port Connect” which wirelessly enables self service terminals to accept cashless payments, handles all elements of the transaction processing and allows customers to monitor and manage their terminals online. For complete details on USA Technologies latest results visit CardData ([www.carddata.com][1]). (CF Library 4/20/07)

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

Details

Capital One Finds Consumers Indifferent To Finance

A Capital One Canada survey has found that since the end of tax season,
39% of those polled want to forget about finances until tax-time next year
and 41% would rather clean out their basement or garage than think about
finances. Only 29% said they would review their credit cards to make sure
they are getting the best rates and fees. Albertans, however, are more
likely
to take a hard look at credit options at 32% while Quebecers are least
likely
at 20%. Experts say, however, that spring is a good time for people to
evaluate finances and take control of their situation. Only 16% of
Canadians
are attracted to offers with promotional awards and only 2% are interested
in offers with a time-limited introductory rate. Also, 26% buy in bulk, 17%
look for free samples and meals at work or other functions, 4% of Canadians
say they “mooch” off friends and family and 69% use and stick to a budget.

Details

Classic FICO to Offer Some New Enhancements

Fair Isaac says its researchers have added key innovations to the “Classic FICO” credit risk scoring model that will significantly enhance its predictive power, without changing important features such as scoring range, score reason codes, minimum scoring criteria, inquiry treatment, and related model parameters. The Company says development tests indicate that the new score research model will increase predictive strength by 5-15%, largely in originations and new accounts; sub-prime borrowers; and borrowers with thin or young credit bureau files. Fair Isaac plans to begin delivering the new “FICO” score innovations starting in September. The Company noted that since the “FICO” introduction in 1989, it has delivered more than 100 billion credit scores.

Details

Choice Examines Foreign Currency Gouge

Choice Consumer Research analysis has revealed that consumers
have been charged more for overseas transactions than their statements
reflect. The extra fees were hidden in the exchange rates that were
applied to transactions, for which customers have been compensated for
failure to adequately disclose fees in other countries. These companies’
statements did not mention the fees that MasterCard and Visa add to
their wholesale exchange rates, of 1-1.1%, which customers were
charged in addition to the banks’ fees. CHOICE is advocating that the
Australian Securities and Investments Commission (ASIC) should
investigate the disclosure of these fees and what was charged and that
consumers should be properly informed in advertising and other
documents of what they’re paying for.

Details

Blackstone to Acquire Alliance Data for $7.8B

Dallas-based Alliance Data Systems is going private following a deal to be acquired by Blackstone Capital Partners for about $7.8 billion in cash and debt assumption. Blackstone will acquire all of ADS common stock at $81.75 per share in cash, representing a 30% premium over yesterday’s closing price. The deal is expected to close year-end. ADS posted record first quarter revenue of $549.2 million, a 15% increase over the year-ago quarter. Net income rose 1% to $56.9 million driven by strong performance in its Marketing Services unit, according to CardData ([www.carddata.com][1]). The ADS/Blackstone deal follows last month’s news that First Data signed an agreement to be acquired by Kohlberg Kravis Roberts for about $29 billion. Under the agreement, FDC shareholders will receive a premium of approximately 34%. (CF Library 4/2/07; 4/19/07)

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

Details

ServerSide Creates a Card Virtual Portfolio

ServerSide Group has created a “Virtual Portfolio” to allow issuers to
offer an infinite variety of stock and personally designed cards to an
unlimited number of affinity groups. With this online system, all
stakeholders in the card creation and management process can create,
collaborate, review, approve and market cards without restrictive
inventory issues such as forecasting how many cards are required,
dealing with the problems of over- and under-printing, and storage
costs. The speed to market new card products targeting subgroups
has massively increased and can be launched and managed at very
little cost. The “Virtual Portfolio” online interface allows issuers to
rapidly launch card programs targeting any number of affinity partners,
subgroups, co-brands, individual branches and even specific events
such as concerts or sport matches.

Details

Top Issuers Flunk Multichannel Experiences

A new study on the state of cross-channel customer experiences has found that credit card issuers earned the third lowest overall average score out of four industry groups. Out of the 16 major firms examined, which included four top card issuers, Chase ranked as the highest scoring credit card issuer, but only ranked eighth overall. The new report from MA-based Forrester Research grouped 57 criteria into 15 categories covering Web site and IVR interactions, email interactions and cross-channel transitions and phone agent interactions. In nine of the 15 categories, credit card issuers fell below the overall average — with the biggest gaps coming in the Web site value and IVR value categories. Forrester says all of the four card issuers (Chase, Citi, AmEx and BofA) had severe failures against four criteria: Web site text legibility, essential content in email responses, allowing users to complete goals in the required channels and phone agents providing confirmation of interactions in other channels. Out of the four industry groups, electronic retailers and PC manufacturers achieved significantly higher averages than credit card issuers.

Details