VeriFone to Buy Trintech Payments Business

VeriFone has inked a deal to acquire Dublin-based Trintech’s payment systems business for $12.1 million in cash. The deal is expected to close this month following the formation of a new subsidiary which will hold substantially all of the assets and liabilities of the payment systems business of Trintech. Trintech says it is divesting its payment systems business to concentrate on its transaction reconciliation software products and services. VeriFone says the acquisition will enhance its ability to deliver self-service payment, vending, and pay-at-the-pump applications. Trintech reported first quarter revenues of $11.1 million, a 15% decline over 1Q/05 due to lower product and license revenues. The net loss for the quarter was $2.1 million, compared to net income of nearly $400,000 one-year ago.

1Q/05: $13.1 million
2Q/05: $12.6 million
3Q/05: $11.4 million
4Q/05: $11.5 million
1Q/06: $11.1 million
Source: CardData (


Corporate Cards Offer Three Savings Tiers

A new study concludes that corporate payment card can reduce transaction costs, cut maverick spending, and provide increased negotiated supplier discounts. The report by AberdeenGroup, sponsored by VISA and MasterCard, found that personal cards are still the predominant vehicle to pay for business expenses, as reported by 64% of the survey respondents. Purchasing cards follow closely, with 57% reporting usage, and only 53% using Travel cards to pay for business expenses. About 28% use Fleet cards. The research found that a company could save an average of $8 to $27 per transaction in processing costs when moving to P-card processing. For travel expenses, the estimated potential savings in expense report processing from moving spend under the Travel card can reach approximately $26 per expense report. As a result of moving eligible spend under the Travel card, a company can save approximately 1.2% in financial fees, reduce maverick spending by 6.4%, and reduce the supplier base by an average of 8.5%.


Small Business Owners are Loan Ignorant

A just released semi-annual report found that 46% of small business owners believe incorrectly that banks commonly make loans to loyal customers who are in the midst of a cash flow crunch and 38% believe incorrectly that it’s a good idea to apply to as many lenders as possible when seeking a loan. The “OPEN from American Express 2006 Semi-Annual Monitor” also found that 49% of small business owners incorrectly believe a consumer loan can generally be used to help fund a business. Only 43% think that venture capital is hardly available to small business owners.


New Wallets Introduced for Contactless Cards

CA-based Kena Kai has launched a new line of “DataSafe Wallets” which utilizes RF shielding material to protect contactless payment cards. The new DataSafe Wallet line will include bi-folds, tri-folds, credit card wallets, women’s wallets, and passport holders in full-grain Italian leather. Each style will incorporate a patent-pending design of RF shielding material that will block any attempt to access the credit card’s Smart Card chips. The DataSafe Wallets will begin shipping September 30th and will retail for $40-$120. With a distinctive combination of style and innovation, Kena Kai designs unique items for people that enjoy life with a passion and appreciate how technology can often make their lives better.


Fee Income Props Up Credit Card Yield

After dipping below 18% in September, the yield on credit card portfolios jumped 50 basis points between January and June. Compared to one-year ago the yield on credit card-backed bonds is up 88 basis points. The healthy yield amidst a rising interest rate climate has been attributed largely to strong fee income. Variable interest rates also have propped-up the yield as issuers pass through any increases within one billing cycle. According to Moody’s Investor Services the yield for June among credit card-backed bonds was 18.51%, compared to 17.63% one-year ago.

Jun 05: 17.63%
Jul 05: 18.33%
Sep 05: 17.78%
Dec 05: 18.28%
Jan 06: 18.01%
Jun 06: 18.51%
Source: Moody’s Investor Services


Card Issuers Offered Austin’s NSFGuard

TX-based Austin Logistics is making its “NSFGuard” predictive analytics software solution for payment risk management available to credit card issuers. NSFGuard’s predictive analytic approach does this by attacking the float decisioning problem with greater precision and accuracy than traditional methods such as rules engines, decision trees and home-grown solutions. NSFGuard, on the other hand, scores each payment, independent of individual account risk assessment. Austin Logistics is a leading provider of next-generation predictive analytic and business intelligence software solutions that anticipate customer value and behavior to drive more profit from every customer interaction.


HoloMag Revenue Lifts ABNH’s Second Quarter

American Bank Note Holographics reported second quarter revenues of $8.4 million, an increase of 22% over 2Q/05. Net income of $1.0 million was double the year ago period. The increase in net income in the second quarter principally resulted from the increased revenue, including the “VISA HoloMag,” “VISA Dove” and “Mini Dove” revenue and the reduction of costs as a result of a negotiated settlement with a vendor. ABNH says $2.3 million of “VISA HoloMag” shipments that were completed and invoiced during the first quarter were not recognized as revenue in that quarter as collection of those amounts were not considered probable at that time as a result of the VISA decision to discontinue their “HoloMag” implementation. Approximately $0.9 million of those amounts were collected and recognized as revenue in the second quarter. During the second quarter, the Company developed a second generation “HoloMag” product that incorporates an electro-static dissipative agent that helps to insulate a vulnerable terminal from electro-static discharge. For complete details on American Bank Note Holographics second quarter performance visit CardData ([][1]).