Morgan Beaumont Hires Marketing Executive

Florida-based Morgan Beaumont has hired Clare Morgan, formerly with Touch-n-Buy and Blackstone Calling Card, as VP of Marketing. Morgan brings to Morgan Beaumont over 10 years of marketing and public relations experience in the prepaid telecommunications and electronic transaction industries and will assume responsibility for the company’s corporate marketing efforts; including plans to bring national brand exposure to Morgan Beaumont’s nationwide cash load platform, the SIRE Network, and the company’s numerous stored value card solutions. Morgan Beaumont, Inc. is a provider of stored value and debit card solutions.

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Florida AG Nails a Collections Firm

The Florida Attorney General last week filed suit against a Jacksonville-based collections agency for repeatedly threatening consumers. Ellis Crosby & Associates allegedly used aggressive and illegal tactics to collect on its accounts, including posing as law enforcement officers or attorneys, threatening arrest by military police, collecting illegal fees greater than the original amount owed, and representing themselves as lawyers with the Attorney General’s Office. In one case a woman was contacted by an employee of Ellis Crosby claiming to have a videotape of her husband cashing a bad check. The company told the woman that the police were on their way to her home to arrest her husband. Another person, who was eight months pregnant, was threatened with arrest if the payment was not received. A representative of the Company informed the person that she should know “they don’t give very good prenatal care in jail.”

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VISA’s Latin America PDV Up 38% in Q2

VISA credit and debit purchases for Latin America and the Caribbean increased 38% over the twelve-month period ending June 30th, accoding to last week’s issue of CardFlash International. VISA’s total sales volume, including purchases and cash advances, surpassed US$258 billion, a 29% gain over last year. The number of cards-in-force approached 194 million, a 23% increase over the second quarter of 2004. Over the same period, purchase volume with VISA debit cards registered a 48% record growth, surpassing the US$21 billion mark. The number of VISA and “Visa Electron” debit cards grew to 139 million, a 22% year-over-year increase for the same period ended June 2005.

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Stratus Rewards White VISA is Acquired

Los Angeles-based Pro Sports & Entertainment, a live entertainment concern, has acquired Los Angeles-based Stratus Rewards, a company marketing to affluent consumers. Stratus launched the white-colored “Stratus Rewards VISA” in April 2004. The card, which carried a $1500 annual fee, offers a points program redeemable towards private jet service. The invitation-only credit card also offers discounted charter flights and complimentary car service, upgrades and special benefits with luxury hotels and upscale merchandise discounts. Points can also be donated as a cash contribution to a handful of select philanthropic organizations. Pro Sports & Entertainment says the acquisition will enable the firm to create astounding entertainment and lifestyle experiences for its clients. (CF Library 4/14/04)

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ACE Cash Express’ 2Q/05 Income Triples

Dallas-based ACE Cash Express reported second calendar quarter net income of $6.6 million compared to $2.2 million for the year ago quarter. Among the company’s accomplishments: A record 40.2 million customer visits and $10.3 billion in processed transactions, 13.3 million checks, with a face value of approximately $5.3 billion, resulting in check-cashing fees of $131.6 million, up 2 percent and 2.1 million loan transactions, disbursing over $640 million in loan proceeds and generating interest income and fees of $91.8 million. ACE Cash Express, Inc. is a retailer of financial services and largest owner, operator and franchisor of check cashing stores in the US.

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VeriFone Q Revenues Climb 21%; Tops $125M

VeriFone reported that net revenues for the quarter ending July 31st rose 21% to $125.7 million. The payment terminal manufacturer says the increase was driven by strong performance in its international business. During the quarter, the Company announced its multi-lane “MX870” system which uses a PIN pad and merges full-motion video with payment capabilities into a single networking system, enabling multi-lane retailers to broadcast advertising and corporate messaging directly to their customers. VeriFone also received “Class A” product certifications with multiple U.S. processors for its “Vx Solutions.” VeriFone also teamed with San Francisco-based Pay By Touch during the quarter. VeriFone went public on April 29th. For complete details on VeriFone’s latest performance, visit CardData ([www.carddata.com][1]). (CF Library 4/29/05; 5/13/05)

REVENUE HISTORICAL
2Q/03: $ 88.9 million
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
Source: CardData (www.carddata.com)

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

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ABS 60-Day Delinquency Falls to 1995 Levels

Charge-offs and delinquencies among credit card-backed securities headed south during July for both prime and sub-prime portfolios. The improving ratios are coupled with an unexpected drop-off in personal bankruptcy filings during the month. It was anticipated that charge-off ratios would trend up through January 2006 as last minute personal bankruptcy filings make their way into the courts through mid-October. For July, charge-offs in the “prime” asset-backed credit card securities market decreased 43 basis points to 5.98%. “Sub-prime” charge-offs fell by six basis points to 12.64%. One-year ago, “prime” charge-offs were 6.45% and “sub-prime” charge-offs stood at 16.68%. According to the “Fitch Credit Card Index,” “prime” delinquency (60+ days) fell to 2.58% in July, the lowest level since November 1995. “Sub-prime” delinquency (60+days) for July declined to 6.38%, the lowest level since February 2001.

ABS CHARGE-OFF HISTORICAL
Month Prime Sub-Prime
Jul 04: 6.45% 16.68%
Jun 05: 6.41% 12.70%
Ju1 05: 5.98% 12.64%
Source: Fitch Ratings

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ADS Inks a Credit/Gift Deal with Gordmans

Dallas-based Alliance Data Systems has signed an agreement with Omaha-based apparel and home fashions retailer Gordmans to provide private label credit card and gift card services. Alliance Data will provide Gordmans gift card transaction processing, reporting, and customer service functions. Rewards can be fulfilled via gift cards, and gift card promotions. Alliance Data Systems provides transaction services, credit services and marketing services and manages over 105 million consumer relationships.

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UMB to Issue a Humana HSA VISA Debit

Kansas City-based UMB Bank has signed a deal with Humana to provide a VISA debit card linked to “Health Savings Accounts”. The HSA combines a High-Deductible Health Plan (HDHP) with a tax sheltered savings account to help individuals and families manage their health care expenses. Electronic and telephonic access is available to check HSA monthly statements, request reimbursements and other related services.

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