Fair Isaac’s CEO Quits as Q3 Profits Sink 38%

MN-based Fair Isaac confirmed yesterday that its CEO, Thomas Grudnowski, has resigned, effective immediately. Charles Osborne, Fair Isaac’s CFO, has been named interim CEO. The Company is facing intense pressure over its credit scoring business. Last month, Fair Isaac sued all three national credit reporting agencies over their launch and marketing of the “VantageScore” credit scoring model. Fair Isaac alleges that Equifax, Experian, TransUnion and VantageScore Solutions are jointly engaging in unfair and anti-competitive practices that harm the “FICO” credit score brand and goodwill that Fair Isaac has spent 50 years creating. Meanwhile, the Company reported that third calendar quarter revenues were $207.3 million versus $203.3 million reported in the prior year period. Net income for the quarter totaled $22.1 million, versus $35.7 million, reported in the prior year period. The company expects revenues for quarter ending December 31st to be approximately $210.0 million. For complete details on Fair Isaac’s latest performance visit CardData ([www.carddata.com][1]).

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

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BLUE VISA DEBIT

The country’s first carbon neutral debit card has been introduced. The new Barclays “Blue VISA Debit Card” is being rolled out to the bank’s 11 million debit card users as their current ones expire.
The card was developed by Barclays, Axalto, and The Carbon Neutral Company. The card effectively balances out the harmful emissions of
the card’s manufacturing process by preventing the release of the same
amount of greenhouse gases somewhere else. The “Climate Leadership Index,” published in September, lists Barclays among the top 50 “best in
class” companies in the “Global FT500” for initiatives addressing the
challenges of climate change. Barclays is the fifth highest ranking bank
in the index.

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Monthly Payment Rates Continue to Dog Issuers

Monthly payment rates, the amount that cardholders pay on their credit card debt, topped the 21% level again in September, driven by higher minimum payments in the sub-prime sector. However, as dependence on revolving credit grows with declines in home equity extraction and charge-offs/delinquencies begin to normalize, monthly payment rates are expected to possibly decline in the fourth quarter. Payment rates, among asset-backed credit card bonds, were 21.06% in September, up 82 basis points from the prior month. Year-to-date, the monthly payment rate has averaged 20.67%, running 185 basis points from one-year ago. According to FitchRatings, the yield increased 10 basis points to 17.96% and is up seven basis points over year-ago levels.

ABS METRICS
YIELD MPR
Apr 06: 18.81% 21.74%
May 06: 17.61% 19.14%
Jun 06: 17.97% 21.00%
Jul 06: 17.63% 20.71%
Aug 06: 17.86% 20.24%
Sep 06: 17.96% 21.06%
Source: FitchRatings

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Heartland’s Third Quarter Net Income Rises 55%

NJ-based Heartland Payment Systems posted third quarter revenues of $293.8 million, an increase of 29% over 3Q/05. Net income for the quater was $10.1 million, compared to net income of $6.5 million in the third quarter of 2005. Processing volume for the quarter increased 26.4% to $11.7 billion. The Company’s active merchant count rose to 133,000 at September 30th, a 22% increase over the past twelve months and includes 129,100 of card processing merchants and 3,900 of payroll merchants. For the year, the company is raising its guidance, and now expects net revenue to grow by 30% to 32%. For complete details on Heartland Payment Systems’ third quarter performance visit CardData ([www.carddata.com][1]).

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

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MasterCard Worldwide Celebrates its 40th Year

MasterCard Worldwide, founded in 1966 as the Interbank Card Association, celebrated its 40th anniversary this week at its Global Technology and Operations Center in O’Fallon, Missouri. Since its founding in 1966, MasterCard has grown into a global company featuring one of the most recognizable brands in the world. It has also become a payments industry leader, serving consumers and businesses in more than 210 countries and territories around the world as a franchisor, processor and advisor. MasterCard Worldwide advances global commerce by providing a critical economic link between financial institutions, businesses, cardholders and merchants worldwide.

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Kabira Technologies Names a New Marketing Guy

Transaction processing software specialist, Kabira Technologies, has hired Doug Doyle, formerly with ILOG, as vice president of worldwide marketing. The addition of Doyle rounds out Kabira’s management team following other key appointments, including Bradley Rode as COO, Eric Graber as VP of global sales, Mark Phillips as CTO and Sanjay Saini as VP of global customer services. These executive appointments are part of Kabira’s new strategy to align its unique strengths in high volume transaction processing software and the rapidly accelerating needs of real-time, always-on business models. Kabira provides high performance transaction processing software for global enterprises to manage high volumes at a substantially lower cost.

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Cards and Vending are Like Peas and Carrots

PA-based USA Technologies has released a new survey showing that consumers spend 32% more using credit cards in vending machines. The survey results were unveiled at USA Technologies’ cashless vending education session attended by 50 vending operators, bottlers and the media, making it one of the most popular events at the convention. The seminar included speaker presentations from USA Technologies business partners, including MasterCard and Mid Atlantic Vending. USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management. USA Technologies provides networked credit card and other non-cash systems in the vending, commercial laundry, hospitality and digital imaging industries.

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PayPass FOBs Reach New Miniaturization Levels

The smallest-ever card-based contactless payment FOB has been certified by MasterCard as a “PayPass” product. The new “VersaFOB” from Oberthur Card Systems is snapped out of a full size card at the end of the production process and then inserted into a key-chain casing. “VersaFOB” is patented, and Oberthur has plans to license the manufacturing and personalization of “VersaFOB” products to additional card manufacturers and commercial personalization bureaus. Oberthur says having the payment device on a keychain is the ultimate in speed and convenience for consumers and merchants. At mid-year there were nearly 10 million “PayPass” cards and devices in the market and approximately 32,000 merchant locations around the world that accept “PayPass,” including McDonald’s, 7 Eleven, CVS, Duane Reade, Sheetz and Regal Entertainment Group. (CF Library 10/27/06)

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Global Cash Access 3Q/06 Revenues Soar by 21%

Las Vegas-based Global Cash Access reported third quarter record revenues of $142.9 million, an increase of 21.3% over the same quarter last year. Adjusted cash earnings were $13.6 million, compared to $11.0 million in 3Q/05. The Company also reported that same store surcharge revenue was up 13.3%, cash advance dollars disbursed were up 28.2%, and ATM transaction volume rose 20% in the third quarter. GCA says its “3-in-1 Enabled QuickJack Plus Redemption Kiosk” installations reached 325 as of October 29th and that its new “Arriva Card” produced 1,551 accounts as of October 29th and $5.8 million in transaction volume through October 29th. For complete details on GCA’s third quarter peformance visit CardData ([www.carddata.com][1]).

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

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S1 Corporation Names a New Top Executive

Atlanta-based S1 Corporation has named Johann Dreyer, former Group President of S1’s Postilion Business Unit, as CEO, President and Director of S1 Corporation. or the past year, Johann Dreyer has been group president of S1’s Postilion business unit, which includes the ATM/POS, community financial, and international operations that represent nearly 40 percent of the company’s revenue. Dreyer came to S1 nearly two years ago when S1 acquired Mosaic Software, where he was founder and served as CEO of that business. S1 Corporation (Nasdaq: SONE) delivers customer interaction software for financial and payment services and offers unique solution sets for financial institutions, retailers, and processors.

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eCrime Researchers Summit Scheduled for November

The Anti-Phishing Working Group and the National Center for Forensic Science have scheduled an “eCrime Researchers Summit” in Orlando on November 16th and 17th. During the two-day conference on Nov. 16 and 17, leading researchers from around the world will converge on Orlando to present their findings on: phishing, the criminal art of stealing consumers’ online credentials; techniques for detecting and visualizing Internet servers that have been commandeered by criminals; automated systems for investigating online scams; and digital forensics tools. The Anti-Phishing Working Group (APWG) is an industry association focused on eliminating the identity theft and fraud that result from the growing problem of phishing, email spoofing and crimeware. The National Center for Forensic Science provides research, education, training, tools and technology to meet the current and future needs of the forensic science, investigative and criminal justice communities.

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