GECF Signs Virginia for MC Cards & vPayment

The State of Virginia has signed a deal to issue MasterCard purchasing and travel cards to employees, agencies and other participants, and to use “vPayment” via GE Consumer Finance . COV will also be implementing vPayment, the CPS electronic settlement tool that provides additional controls and data capture compared to traditional purchasing cards. Corporate Payment Services, the commercial card unit of GE Consumer Finance, develops and markets corporate bank cards and e-settlement tools designed for small-, medium-, and large-sized companies and organizations.

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Pay By Touch Acquires Capture Resource

San Francisco-based Pay By Touch has acquired Capture Resource, a supplier of integrated reward programs and business process outsourcing solutions Under the terms of the deal, Pay By Touch will assume responsibility for all of Capture Resource, Inc. assets and will manage the company’s 120 million-plus consumer loyalty enrollment profiles, including more than 12,000 supermarkets and retail institutions. The acquisition brings integrated rewards solutions and business processing solutions to Pay By Touch customers, especially in its core growth areas: grocery store chains, credit card issuers, healthcare providers, and financial transaction processing companies. Pay By Touch’s loyalty offerings are intended to help retail companies maximize customer lifetime value by elevating shopping frequency, increase amount of sale and improving customer retention.

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Circuit City Survey – 80%+ Want Gift Cards

A recent survey by Circuit City has found that 82% of consumers would like to receive gift cards. More than 4,200 men and women responded to the survey. Women like to receive gift cards even more than men; 87 percent of women versus 76 percent of men. Twenty-six percent said they complete their holiday shopping a month or more in advance. Forty-four percent acknowledged they are still shopping within one week of the holiday. Circuit City is a leading specialty retailer of consumer electronics.

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AmEx Launches its First Russian Credit Cards

American Express and Russian Standard Bank have launched the first AmEx cards issued in Russia. RSB has issued more than 2.4 million credit cards and has a presence in more than 2000 cities in Russia. The “American Express Green,” “Gold,” “Platinum” and “Centurion” Cards are ruble and dollar denominated. RSB is responsible for issuing the cards, extending credit, managing accounts, marketing and customer service support. AmEx will provide its technical, operational and marketing experience in managing a global card business and access to its global network of millions of merchants. AmEx will also continue to manage relationships with merchants in Russia, including signing new merchants to accept the card. American Express currently has more than 90-partnerships in more than 100 countries around the world.

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Commerciant Hires Two Top Sales Executives

Houston-based Commerciant has hired Hubert Vaz-Nayak, as SVP/Sales & Marketing and Marc Beauchamp as VP/Indirect Sales.

Mr. Vaz-Nayak was most recently the Director of the IT Sector Program at the Houston Technology Center, and SVP of Marketing & Strategy at Impresa Technologies, a management consulting company. Through both organizations, he helped technology sector companies to establish and rapidly grow their market presence via processes he has honed over the course of his career. Beauchamp has built several successful bankcard organizations, managing a staff of over 100 sales people, with sales offices in all the major markets in the U.S. After the sale of his company in 2001, he launched a bankcard consulting firm. Mr. Beauchamp has worked with some of the largest ISOs in the industry and has trained over 3,000 bankcard sales representatives across the country (www.bankcard101.com). He is the author of “How to Survive and Thrive in The Merchant Services Industry.”

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TNB Intros VIP CardStation for Credit Unions

Dallas-based TNB Card Services has introduced “VIP CardStation,” an online tool that gives credit unions real-time control to update cardholder data and logs any changes made to a cardholder’s account with a record kept of who made the change and when. The VIP CardStation screen looks very similar to Windows-based screens that computer users are familiar with. Navigation has been simplified to allow point-and click access to various tasks. Complex work flows have been eliminated and replaced with simple “wizards” that walk the user through multi-step functions. VIP CardStation also offers built-in system checks to reduce common keying errors, audit reporting, and detailed delinquency information by cycle. TNB Card Services provides electronic payments processing, as well as an agent issuing solution for credit unions nationwide.

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SAM’S CLUB Gets Hacked in Late September

SAM’S CLUB announced this weekend it is investigating credit card fraud affecting cardholders who purchased gas at SAM’S CLUB stations between September 21st and October 2nd. The company has notified the U.S. Attorney’s Office for the Western District of Arkansas and the U.S. Secret Service and asked for their assistance in the investigation. The investigation began when the credit card issuers reported that some cardholders were reporting fraudulent charges on their statements. It is still in its preliminary stages, with no determination on how the data was improperly obtained.

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RSA to Acquire Fraud Expert Cyota for $145MM

RSA Security has inked a deal to acquire privately-held Cyota for approximately $145 million. Cyota’s online fraud services currently protects more than 430 million accounts, including seven of the top 10 banks in the U.S. and four of the top five in the U.K. The transaction involves up to $136 million in cash for all of the outstanding stock of Cyota, $5.5 million in cash to fund a three-year retention pool and at least $3.5 million for the assumption of all outstanding Cyota stock options. RSA Security believes that the acquisition will enable the Company to establish itself as a strategic hub for the consumer marketplace, providing the ability to authenticate and protect all aspects of online banking and e-commerce: end-users, merchants and transactions. Cyota created the first anti-phishing solution in Dec. 2003. The transaction is expected to close within 30 days. RSA Security was advised on the acquisition by America’s Growth Capital.

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VeriFone Revenues Up 20%; Profits Up 4X

VeriFone reported that net revenues for the quarter ending October 31st rose 20% to $130.5 million as profits more than quadrupled. The payment terminal manufacturer says the increase was driven by a 34% year-over-year gain in its international business. VeriFone’s net income for the quarter was $12.1 million compared to $2.8 million for the year ago period. During the quarter, VeriFone and TaxiTronic created a joint venture to equip taxis with integrated fleet management and customer payment systems, Meijer Stores completed the in-place updating of thousands of VeriFone “Omni 7000MPD” terminals and Houston-based ISO Retriever Payment Systems selected VeriFone as the preferred provider of payment solutions for its nearly 100,000 merchant sites. Internationally, VeriFone recently announced a second major order from a major Mexican bank for a combination of IP, Wi-Fi and GPRS systems and also received the “CB5.2” certification from Groupement des Cartes Bancaires in France for the “Vx 510” countertop payment solution. VeriFone went public on April 29th. For complete details on VeriFone’s latest performance, visit CardData ([www.carddata.com][1]). (CF Library 9/13/05; 10/24/05; 10/25/05)

REVENUE HISTORICAL
3Q/03: $ 90.3 million
4Q/03: $ 87.9 million
1Q/04: $ 89.5 million
2Q/04: $104.0 million
3Q/04: $108.6 million
4Q/04: $111.3 million
1Q/05: $117.9 million
2Q/05: $125.7 million
3Q/05: $130.5 million
Source: CardData (www.carddata.com)

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

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