Mercury Payment Systems Launches a New Platform

Colorado-based Mercury Payment Systems has launched a new platform offering a dial-up payment processing solution for gift card processing. Merchants with electronic cash registers or point-of-sale (POS) systems who process transactions using a dial-up connection are eligible for Mercury’s integrated technology with free enhancements that include certified 24/7 technical support and Web reporting for immediate access to all transaction data. Mercury Payment Systems is an integrated transaction processing company that acquires more than 500 new merchants a month and provides services for over four million monthly transactions.

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Hypercom’s Revenue Up 17% Over 1Q/05

Hypercom reported that net revenue for the second quarter was flat year-over-year but up 17.4% sequentially. Second quarter revenue was $64.0 million, compared to $54.5 million for 1Q/05 and $63.1 million for 2Q/04. Hypercom says delays in software certifications prevented certain “Optimum” family products from shipping as high a volume as originally forecasted. Gross profit for the second quarter was $9.8 million, versus adjusted non-GAAP gross profit of $26.9 million for 2Q/04. The Company says total charges of approximately $16.2 million were made in the second quarter related to accounting valuations, reserves and accruals, as well as reductions to the Company’s operating cost structure. For complete details on Hypercom’s second quarter performance, visit CardData ([www.carddata.com][1]).

HYPERCOM REVENUE HISTORICAL
2Q/04: $63.1 million
3Q/04: $62.8 million
4Q/04: $79.7 million
1Q/05: $54.5 million
2Q/05: $64.0 million
Source: CardData (www.carddata.com)

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

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Global Axcess Corp Adds 1,500 ATMs

Florida-based Global Axcess Corp has signed a formal letter of intent to acquire an independent ATM company which owns and operates over 1,500 ATM sites located primarily on the East Coast. The proposed terms of the transaction have not been disclosed at this time. Based on its historical financial results, the acquisition is expected to contribute approximately $3,600,000 in annual revenue to Global Axcess. Global Axcess Corp is a network-based electronic commerce and transaction processing companies.

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Retail Decisions & Paymentech Intro ReD eCheck

Retail Decisions and Paymentech have launched “ReD eCheck,” a new electronic check service that offers merchants electronic check processing software and conversion hardware as a single integrated solution for performing point-of-purchase and accounts receivable conversion transactions. By using ReD eCheck, merchants have the ability to capture and transport e-check transactions by scanning the paper check into a piece of hardware which captures the check information necessary to convert to an ACH transaction and transports the information to Paymentech’s processing platform. Paymentech, L.P. is one of the largest payment processors for businesses accepting payments via traditional point of sale, Internet, catalog and recurring billing and processed 8.5 billion transactions and $200 billion in card volume in 14 currencies in 2004. The Retail Decisions Group provides international electronic payment transaction services.

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Asta Funding’s Q2 Net Income Up 52%

New Jersey-based Asta Funding reported that 2Q/05 net income rose 52% to a record $8.5 million. Revenues for the period were $19.0 million, an increase of 58% compared to 2Q/04. During the quarter, Asta purchased portfolios with a face amount exceeding $481 million, bringing its aggregate purchases for the past nine months to $2.3 billion. Asta specializes in the purchase, management and liquidation of performing and non-performing consumer receivables. For complete details on Asta’s second quarter performance, visit CardData (www.carddata.com).

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Wells Fargo Targets Home Improvement Market

Iowa-based Wells Fargo Financial Retail Services has rolled out a revolving dual-line consumer credit card designed exclusively for select retailers within the home improvement industry. The new “Home Projects VISA” offers one credit line for home improvement purchases and a second line for everyday purchases. As part of the program launch plan, WFFRS is offering limited-time special introductory rate promotions to program participants. The issuer says the selling points are easy enrollment procedures, competitively priced special-terms promotions, fast over-the-phone application processing, generous consumer credit lines and quick funding.

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BioPay Enters KY Via Cheers Food and Fuel

Kentucky-based Cheers Food and Fuel has deployed “BioPay” biometric payments in its ten stores. The BioPay system uses a person’s unique finger image and their chosen BioPay number (usually a phone number) to authorize a secured debit direct from their checking account. Once enrolled, the customer can purchase in seconds with their finger at any BioPay payment location across the United States. The BioPay service is free to the consumer. BioPay has over 1.9 million registered consumers and over 1,400 merchant locations.

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EFT POS Terminal Market to Hit $1.6B by 2011

A new report from Frost & Sullivan reveals that revenues in the global EFT POS terminal market are expected to reach $1.6 billion by 2011. Terminal manufacturers need to concentrate on countries such as China, India and Russia for long-term profitability where there is increasing adoption of electronic payments due to infrastructure development, strong government support, and the expanding presence of wireless networks. Online debit and personal identification number (PIN) pad sales are areas that are likely to offer manufacturers an opportunity to increase market share and spur terminal sales in North America as well as value-added services, such as gift, loyalty, e-commerce, advertising, couponing and electronic receipt capture (ERC) programs. Frost & Sullivan is a global growth consulting company.

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Valero Energy Installs 2,000 VeriFone Systems

VeriFone announced the installation of more than 2,000 “Topaz/Sapphire” integrated POS systems for Valero Energy Corp. The workstation offers multiple tasks such as fuel-dispenser control, car wash control and fast-food and merchandise transactions and enables Valero to customize the system to recognize special discounts and customer loyalty programs. In addition, the system allows managers easy access to current store activity data, which increases reporting and inventory control efficiencies. VeriFone Holdings, Inc. is a provider of secure electronic payment technologies. Valero Energy Corp. is one of the nation’s largest retail operators with more than 4,700 retail and branded wholesale outlets and annual revenue of approximately $55 billion.

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Wells Fargo Card Loans Up 18%, Volume Up 20%+

Wells Fargo Card Services and Wells Fargo Financial Bank reported second quarter outstandings of $9,174,077,412, an 18% increase over the same period one-year ago. Second quarter card volume rose 22% for Wells Fargo Financial Bank and about 20% for Wells Fargo Card Services. Combined, Wells Fargo Card Services and Wells Fargo Financial Bank reported 2Q/05 volume of $5,414,130,710. At the end of the second quarter, Wells Fargo Financial Bank had 567,396 active accounts, a 13% increase over the prior year. Wells Fargo Card Services had 3,626,751 active accounts, a 7% increase over the prior year. For complete details on Wells Fargo Card Services and Wells Fargo Financial Bank second quarter results, visit CardData ([www.carddata.com][1]).

Issuer 2Q/05 2Q/04 CHANGE
WF Card Services (IA) $7.13b $6.25b +14%
WF Financial Bank (SD) $2.05b $1.56b +31%
Total $9.18b $7.81b +18%
Source: CardData (www.carddata.com)

WELLS FARGO CARD LOAN HISTORICAL
2Q/04: $7.9 billion
3Q/04: $8.3 billion
4Q/04: $8.9 billion
1Q/05: $8.7 billion
2Q/05: $9.2 billion
Source: CardData (www.carddata.com)

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

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Ohio-Based Diebold Loses its CFO This Week

Diebold announced that its SVP/CFO Gregory Geswein has resigned effective August 12th to become CFO of Reynolds Company. Prior to joining Diebold as CFO in April 2000, Geswein spent a year with Agilysys (formerly Pioneer-Standard Electronics) in Cleveland, Ohio as CFO and 13 years with Mead Corporation in Dayton, Ohio. Originally from Ironton, Ohio, Geswein earned a bachelor’s degree in Business Administration and an MBA from the University of Cincinnati. Diebold, Incorporated provides integrated self- service delivery systems, security and services with reported revenue of $2.4 billion in 2004.

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MasterCard Profits Up 82% as Revenues Grow 19%

MasterCard posted second quarter revenue of $772 million, a 19% gain over one-year ago. Profits soared 82% to $120 million. This is the sixth consecutive quarter of double-digit revenue growth for MasterCard. MasterCard noted that the impact of currency fluctuations contributed 1% to revenue growth for 2Q/05. During the second quarter, operating expenses as a percentage of total revenue declined to 75% from 85% in same period in 2004. General and administrative expenses increased 12% to $319 million, compared to 2Q/04. Advertising and market development expenses increased about 1% to $232 million, compared to one-year ago. MasterCard’s gross dollar volume increased 12.3% to $408.4 billion and worldwide purchase volume climbed 14.5% during the quarter to $290.1 billion. For complete details on MasterCard’s second quarter performance, visit CardData ([www.carddata.com][1]).

MASTERCARD HISTORICAL ($ millions)
2Q/04 3Q/04 4Q/04 1Q/05 2Q/05
G&A: $284.7 $284.9 $338.7 $306.6 $319.2
A&M: $228.8 $190.1 $329.5 $171.7 $231.6
Net Income: $ 65.7 $ 97.5 $ 1.3 $ 93.3 $120.2
Note: G&A: General & Administrative Expenses; A&M:
Advertising & Market Development Expenses.
Source: CardData (www.carddata.com)

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

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