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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First Data’s Profits Up 11% in Q2

First Data reported that second quarter net income rose 11% while total revenues increased 10% to more than $2.9 billion. The Company says the commercial and international segments drove the increase. Western Union produced revenue of $1.1 billion, a 15% increase, and operating profit was $352 million, up 9%. Commercial Services generated revenue of $1.0 billion, an 11% increase or 9% excluding reimbursable debit network fees. Operating profit was $277 million, up 27%. Financial Institution Services generated revenue of $452 million, down 6%. Operating profit was $95 million, down 11%. First Data International generated revenue of $299 million, up 41%. Operating profit was $34 million, up 43%. As of June 30th, accounts on file were 532.2 million domestic and 56.0 million international. Of the card total domestic accounts on file, 106.0 million were bank card accounts, 315 million were retail accounts and 111.2 million were debit accounts. For complete details on FDC’s second quarter performance, visit CardData ([www.carddata.com][1]).

FDC NET INCOME
2Q/05: $391.9 million
3Q/05: $421.5 million
4Q/05: $397.9 million
1Q/06: $373.7 million
2Q/06: $436.4 million
Source: CardData (www.carddata.com)

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

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Rewards Network Net Income Up 85%

Chicago-based Rewards Network posted net income for the second quarter of $2.6 million compared with net income of $1.4 million for 2Q/05. Second quarter sales dipped 9% to $66.4 million, compared to one-year ago. The Marketing Credits Program sales declined 10% to $61.0 million. Marketing Services Program sales remained flat at $5.4 million. The Company says that while the Marketing Credits Program restaurant count has declined 22% year-over-year, it has been successful in growing the number of Marketing Services Program restaurants, up 43% from 2Q/05. For complete details on Rewards Network latest performance visit CardData ([www.carddata.com][1]).

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

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Garanti Brings PayPass to Europe

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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