TransFirst ePayment Services Names a President

Dallas-based TransFirst has promoted Michael Phelan to president of the company’s ePayment Services division. Prior to joining TransFirst, Phelan served as vice president of business development for the Wealth Management Group at First National Bank in Omaha, Neb., where he was responsible for sales, marketing and product development, Investment One Brokerage, corporate bank marketing, training and strategic initiatives. TransFirst offers a first-rate suite of products and services and customized processing programs uniquely tailored for the special business needs of financial institutions, independent sales organizations and agents and its referral and reseller partners.

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Store & Gas Cards to Post a 4.4% CAGR

A new report has taken a contrarian view of the private-label credit card market. The analysis predicts that the store and gas credit card market will expand from $106 billion last year in outstandings to $131 billion by 2010. NY-based Packaged Facts says the private label credit card market will grow at a compound annual rate of 4.4% over the next four years. The research firm says the growth will be driven by the appeal of rewards, 0% financing, 10% off initial purchase, and similar tried-and-true marketing efforts. Packaged Facts also says newer technologies which better communicate with and for consumers will drive the growth. Citi Commerce Solutions, GE Money, and HSBC dominate with a combined 81% market share. Other analysts suggest wallet clutter and fierce competition will dampen private-label credit card growth.

PRIVATE LABEL CARDS
2005: $106 billion
2006: $111 billion
2007: $116 billion
2008: $121 billion
2009: $126 billion
2010: $131 billion
Source: Packaged Facts

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Global Payments Signs PAI for Processing

Atlanta-based Global Payments has signed a deal with Payment Alliance International to provide PAI with end-to-end processing services including authorization, capture, settlement, and BIN sponsorship. Under the terms of the agreement, Global Payments will provide PAI with end-to-end processing services including authorization, capture, settlement, and BIN sponsorship. Payment Alliance International, PAI, is an emerging leader in the Payments sector offering credit card and check processing, as well as other services like ATM and analysis products. Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies, multi- national corporations and gaming establishments located throughout the United States, Canada, Latin America, Europe and the Asia-Pacific Region.

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TSYS Appoints a CTO of Distributed Systems

TSYS has promoted Olin Wise to chief technology officer for distributed systems. In his new role, Mr. Wise will provide strategic direction for applications on all non-mainframe platforms, including prepaid, e-commerce and loyalty, among others. Mr. Wise has worked for TSYS for 21 years, serving most recently as group executive for all e-commerce services. TSYS is one of the world’s largest payment-services companies, offering a broad range of packaged or outsourced issuing and acquiring technologies that support consumer finance, credit, debit and prepaid services for financial institutions and retail companies worldwide.

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42% of Businesswomen Mostly Use Cards

A recent survey reveals that 42% of women entrepreneurs make more than half of their purchases with a credit or debit card. Most hold either a credit (52%) or a debit card (30%), while 19% hold both. The second annual “Women in Small Business” survey, conducted by Ipsos on behalf of MasterCard, also found that 72% of women-owned businesses are more than five years old, with 45% having been in operation for more than ten years. Interestingly, 33% of women small business owners use a money management software application to handle their finances, an increase from 27% reported in 2005.

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Fifth Third Buys Dallas Telco FCU Cards

Fifth Third Processing Solutions has acquired the credit card portfolio of Dallas Telco FCU and has established an agent relationship with the assistance of NH-based Brookwood Capital. Under this agreement Fifth Third has purchased Dallas Telco’s existing credit card portfolio, and will issue credit cards for the credit union under the credit union’s name. BROOKWOOD CAPITAL is the leading advisor to credit unions related to the credit card industry, including consulting and advisory services to credit card issuers nationwide.

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VISA Plans to Go Public

The rapidly evolving landscape in the payments industry has picked up even more steam as VISA announced this morning it is planning to go public. VISA is planning to combine VISA USA, VISA International and VISA Canada to form a single global public company called VISA Inc. VISA Europe will remain a membership association owned and governed by its 4,500 European banks. It will become a licensee of VISA Inc. VISA says it expects the proposed restructuring will take between 12 to 18 months to complete. Under the new structure the public will own a majority of the new company and the majority of the directors will be independent. A search for independent directors and a CEO for VISA Inc. is underway. VISA is the largest payment card network in the world with more than a 1.4 billion cards in circulation, and is twice as large as it nearest competitor by nearly all measures.

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Q3 Report Critical for MC Stock

After going public in mid-May, shares of MasterCard’s stock have soared by 84%, peaking at $75 per share late last week. However, there is a consensus among analysts that the stock may have plateaued for now. This week the stock has been hovering around $72 per share. Nevertheless, there is much anticipation of the payment card network’s third quarter performance. MasterCard will release its latest earnings report on November 1st. This week, Citigroup cut MasterCard shares to “Hold” from “Buy” and Goldman Sachs downgraded it to “Sell” from “Neutral.” In August MasterCard posted a 9.7% year-on-year increase in revenue for the second quarter of $846.5 million, driven by a 16.4% jump in gross dollar volume. MasterCard’s gross dollar volume hit $485 billion and worldwide purchase volume rose 17.5% to $351 billion during the second quarter. The recent surge in MasterCard’s stock has raised its market value from $5.5 billion to about $10 billion. (CF Library 5/23/06; 8/2/06)

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Wawa Joins Debitman’s Retailer’s Network

Mid-Atlantic convenience store chain Wawa has joined “The Retailer’s Network” operated by CA-based Debitman Card. Under the partnership a private-label “Wawa Check Card” will be issued. The card will reward customer loyalty with an initial $5.00 gift card after the first use, followed by cash rebates on every purchase. The initial phase is expected to last 90 days, followed by a potential chain-wide implementation. Wawa operates more than 550 stores. More than 200,000 merchant locations in the U.S. participate in Debitman’s “The Retailer’s Network,” including Wal-Mart, Sam’s Club and CVS. In August, WESCO Stores joined the Debitman Card payment network and is now issuing its own branded debit cards to customers at its 51 Michigan locations. Last month, Debitman Card was granted a patent for “Method And System For Facilitating Electronic Funds Transactions.” (CF Library 8/22/06; 9/28/06)

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VISA EUROPE STATUS

VISA’s plans to become a publicly traded company does not include VISA Europe. VISA Europe will remain a membership association owned and governed by its 4,500 European banks. However, VISA Europe will be a minority stockholder in the proposed new global company, and the new VISA will have a minority investment interest in VISA Europe. VISA announced it is planning to combine VISA USA, VISA International and VISA Canada to form a single global public company called VISA Inc.
VISA Europe will become a licensee of VISA Inc. VISA says it expects the proposed restructuring will take between 12 to 18 months to complete. Under the new structure the public will own a majority of the new company and the majority of the directors will be independent. A search for independent directors and a CEO for VISA Inc. is underway. VISA is the largest payment card network in the world with more than a 1.4 billion cards in circulation, and is twice as large as it nearest competitor by nearly all measures. Last year VISA Europe posted more than one trillion euros in gross “Consumer Expenditure Value.”

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Pay By Touch Debuts the TrueMe Device

San Francisco-based Pay By Touch has introduced “TrueMe,” the first secure, on-demand biometric authentication service on the Internet. TrueMe (http://www.trueme.com) gives PC users a fast, easy and secure way to identify themselves, interact and transact on the Web using their fingerprints. By simply sliding a finger on a TrueMe-certified finger sensor, users can securely access their Web-based accounts with no need to remember IDs, passwords or account numbers. TrueMe is quick and easy to use and, most importantly, safe. Pay By Touch (www.paybytouch.com) is wowing the world one touch at a time as the leader in biometric authentication, personalized marketing and payment solutions.

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AmEx Expands/Enhances Starwood Cards

American Express has beefed-up its co-branded Starwood Hotels & Resorts cards with the introduction of a small business credit card and an upgraded consumer credit card. Both cards will now offer a bonus of 10,000 “Starpoints” for the first purchase, which is enough for up to three free nights. Other new features include double “Starpoints” on Starwood stays and an automatic upgrade to “Gold Preferred Guest” membership status by spending $30,000 on the Card in each calendar year. Additionally, both cards will offer double points and access to private sales with select Starwood retail outlets. The “Starwood Preferred Guest Business Credit Card” will also include the “OPEN Savings” program and expense management reporting. Starwood and AmEx have had a co-branded card partnership since 1996, when AmEx first launched the “ITT Sheraton ClubMiles Card.”

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