Dynamic Card Solutions Signs 250 Clients

CO-based Dynamic Card Solutions has signed its 250th customer, Citizens Commerce National Bank, a full-service community bank located in Woodford County, Kentucky. In May 2006, Citizens Commerce National Bank agreed to offer DCS instant issued Visa debit cards to its members. Citizens Commerce National Bank opened on November 12, 1996, with a single full-service location in Versailles, Kentucky. Founded in 1996 and a wholly owned subsidiary of Dynamic Solutions International, Dynamic Card Solutions is an innovative developer of instant issuance and PIN selection solutions for banks, credit unions and retailers.

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PayPal Nears 114MM Accounts; But Volume Slows

eBay reported that PayPal had 113.7 million total accounts at the end of the second quarter, a 44% increase from one-year ago. Total payment volume rose 37% to a record $8.9 billion which includes payments initiated through the PayPal system but excludes its payment gateway business. The number of active accounts hit 29.5 million as of June 30th, its highest level to-date. During the second quarter, PayPal handled 143.3 million payments, a 4% decrease over the prior quarter but, up 27% from 1Q/05. PayPal’s 2Q/06 transaction revenue rate was 3.73%, down one basis point from the prior quarter, but, up six basis points from one-year ago. The processing expense rate for the second quarter was 1.02%, compared to 1.08% for 2Q/05. PayPal’s transaction loss rate came in at 27 basis points, up eight basis point from one-year ago. For complete details on eBay/PayPal’s second quarter performance, visit CardData ([www.carddata.com][1]).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
2Q/05 $6.5 billion 78.9 million
3Q/05 $6.7 billion 86.6 million
4Q/05:$8.1 billion 96.2 million
1Q/06:$8.8 billion 105.0 million
2Q/06:$8.9 billion 113.7 million
SOURCE: CardData (www.carddata.com)

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

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hotels.com Offers Prepaid VISA Cards

hotels.com has launched the “Hotels for Life” sweepstakes, through August 28, offering a $25 prepaid “VISA” card every hour, throughout the sweepstakes period. Those who enter the sweepstakes will have the chance to win the grand prize of “hotels for life” — the opportunity for two guests to stay at a three star hotel for six nights once a year for 25 years — an approximately $25,000 value. hotels.com is also giving away a $25 prepaid Visa(R) card every hour, 24 hours a day, throughout the sweepstakes period. Site visitors who register will receive one entry into the sweepstakes. hotels.com(R) is a leading provider of lodging worldwide, offering reservation services through its own web sites (including http://www.hotels.com and others), its interactive affiliate network (http://www.IAN.com ), and its toll-free call centers (1-800-2-HOTELS).

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GreenZap to Process $100MM in Card Payments

San Diego-based GreenZap reported a payment processing relationship with an Internet Exchange Service that manages advertising for over 28 million businesses. The Company also announced a new member ID verification program designed to reduce fraud, plus the approval of $100 million in monthly processing capabilities for credit card and ACH transactions. The company also announces its future plans to launch a GreenZap classifieds section, as well as new “Merchant Tools” services enabling companies to download a GreenZap pay button as an alternative payment method to credit cards or other online payment applications such as PayPal. The new merchant API (application program interface) allows businesses to accept GreenZap as a payment method by integrating a pay button into their existing Website or shopping cart application.

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PaymentDynamics Preferred Payments Study Coming

Edgar, Dunn & Company and TransUion are combining resources and data to develop the “PaymentDynamics 2006 Preferred Payments Study.” The study is the first of its kind to combine consumer payment attitudes, behavior and credit information. The study will not only provide financial institutions with a complex understanding of their customer’s payment needs, but it also will include the predictive and profiling tools necessary to drive profitable growth across their product portfolios. The study’s findings will be available beginning in the fourth quarter 2006. “PaymentDynamics 2006” is a continuation of EDC studies on consumer payment preferences, attitudes and behavior conducted in 2000, 2004 and 2005. This marks the first year EDC will partner with a large credit reporting entity, like TransUnion, to incorporate consumer credit information into the findings and market profilings.

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CyberSource Decision Manager is Beefed-Up

CyberSource’s “Decision Manager” has been enhanced to provide fraud detection for online direct debit purchases covering five European countries. Direct debit, a payment method in which the consumer supplies bank account information to the merchant allowing the merchant to then draw funds directly from the consumer’s account, is a popular purchase mechanism in Europe. CyberSource Corporation is a leading provider of electronic payment and risk management solutions.

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PayPass Moves into Europe via Garanti Bank

Turkey’s Garanti Bank has become the first European MasterCard issuer to launch a “PayPass” card. Starbucks, Burger King and Cinebonus are among the local merchants already signed-up for the rapidly growing contactless payment card program. Garanti will upgrade about 25,000 “Bonus” to the “PayPass” technology. There are a number of “PayPass”-related programs currently underway in ten countries including Canada, United Kingdom, Japan, Korea, Lebanon, Malaysia, Australia, Taiwan, Philippines and the USA. 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.

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La-Z-Boy Furniture Store Card is Honored

Wells Fargo Financial Retail Services has awarded La-Z-Boy Furniture Galleries a “Client Award” for its private-label credit card program. The annual award recognizes select clients for success achieved with their consumer private-label credit card program through Wells Fargo Financial Retail Services. The award is based on program participation and credit card sales volume. Wells Fargo Financial Retail Services, headquartered in Des Moines, Iowa, specializes in providing consumer private-label and dual-line credit card programs to retailers in North America. Its parent is Wells Fargo Financial, a unit of Wells Fargo & Company.

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Credit Card Debt Nears a Record A$36B

Credit card debt soared to a new record of nearly A$36 billion in May.
Credit card volume also set a new monthly high of A$16.5 billion after
dipping sharply in the prior month. During the past twelve months,
credit card debt has increased 17% in Australia. For May, credit card
balances increased $500 million from the previous month to A$35.9
billion. One-year ago credit card debt stood at A$30.8 billion. Gross
dollar volume on credit card and charge cards in May was A$16.5 billion,
compared to A$14.2 billion one-year ago. In April GDV on credit cards
was $13.2 billion. Card credit limits reached A$97.1 billion at the end
of May, compared to A$85.5 billion for May 2005. There are currently
13.0 million credit card and charge card accounts in Australia, compared
to 12.0 million one-year ago.

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Capital One U.S. Card Profits Dip

Capital One’s second quarter U.S. credit card profits fell 2% year-over-year after soaring in the prior quarter. Purchase volume in the U.S. was up 17% to $20.9 billion while U.S. managed card outstandings increased 5% from the year-ago quarter. The number of U.S. card accounts dropped by about 560,000 during the quarter to 37.2 million compared to 37.3 million in the prior quarter and 37.8 million one-year ago. U.S. card net income was $421.8 million, compared to $602.8 million in the prior quarter and $432.4 million for 2Q/05. U.S. managed card outstandings were $48.7 billion for 2Q/06 compared to $46.4 billion one-year ago and $47.1 billion in the previous quarter. The managed delinquency rate (30+ days) for U.S. credit cards was 3.30% for the second quarter, compared to 3.31% for 1Q/06 and 3.60% for the second quarter of 2005. The net charge-off rate for U.S. credit cards was 3.29% for the second quarter, compared to 2.93% for the first quarter and 4.90% one-year ago. For complete details on Capital One’s second quarter performance, visit CardData ([www.carddata.com][1]).

COF U.S. CARD NET INCOME
2Q/05: $432.4 million
3Q/05: $481.8 million
4Q/05: $237.0 million
1Q/06: $602.8 million
2Q/06: $421.8 million
Source: CardData (www.carddata.com)

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

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Canada’s Prepaid Benefits Card

Mint Technology and FP Financial have teamed to provide the first prepaid financial services product in Canada used to remit recurring social assistance benefits to Canada’s First Nations communities. The “FirstPeoples Prepaid Benefits Card” program will allow administrators and benefit recipients to take advantage of direct financial savings, convenience and the added safety and security that a traditional credit card offers. Under the program, social assistance benefits can be remitted monthly onto personalized prepaid cards and recipients will then be able to have immediate access to funds; withdrawing funds from ATMs and making purchases everywhere traditional credit cards are accepted.

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M&A Activity in ARM Soars in 06

M&A activity in the Accounts Receivable Management industry is on track to set a new annual record. MD-based advisory firm Kaulkin Ginsberg reports that during the first half of this year, there were 28 completed transactions and two significant pending transactions, representing an aggregate estimated deal value of $3.5 billion. By comparison, deal value for all of 2005 – a record year for deal activity – was just over $1.7 billion. KG says 2006 will likely be a bellwether year in ARM. KG says the recent announcement by Michael Barrist to purchase NCO Group with One Equity Partners represents the largest deal in industry history – valued at over $1 billion. Plus, West Asset Management is undertaking a $4.1 billion recapitalization by private equity firms Thomas H. Lee Partners and Quadrangle Group.

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