Payment Data Systems & NeWave Partner

San Antonio-based Payment Data Systems has signed an expanded renewable agreement with NeWave for its wholly-owned subsidiary OnlineSupplier.com. It is expected that the expanded services will result in additional estimated revenues to PDS of $208,000, increasing the total value of the agreement to approximately $550,000 a year. Payment Data Systems, Inc., is an integrated payments solution provider delivering comprehensive, cost-effective solutions to billers and retailers for the processing and management of electronic payments. NeWave, Inc. is an online auction and e-commerce solutions provider.

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MasterCard Smart Data Tops 66K Companies

MasterCard reported that more than 66,000 businesses and over 70 issuers in 26 countries around the world are now using its proprietary Web-based reporting and expense management solutions, “MasterCard Smart Data OnLine” and “MasterCard Smart Data Express.” Businesses have utilized “MasterCard Smart Data” solutions since 1995 and now nearly 50 million transactions go through “Smart Data” each year.

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FSV Launches a STV Card for MoneyTree

FSV Payment Systems has made a national roll-out of its stored-value customer-loyalty card program for check-cashing giant Moneytree after a six-month pilot. The Cash Solution card will be offered to all Moneytree patrons with no charge to obtain the basic card or to load funds onto the card. Cardholders will also be able to upgrade their PIN cards to prepaid MasterCard-branded debit cards at Moneytree locations for a one-time, nominal activation fee. Moneytree owns more than 100 check-cashing locations in the Western US. FSV Payment Systems offers host-based FSA-, payroll-card- and stored-value ePayments solutions directly to large employers and financial institutions as a strategic business partner of Fiserv, Inc. Moneytree provides check cashing, payday loan services, money orders, and wire funds transfers.

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NCR Corporation Names Bill Nuti as CEO

NCR this morning announced that its board of directors has named Bill Nuti to the posts of president and CEO as of August 8th. Nuti has served since December 2003 as president and CEO of Symbol Technologies. Nuti departed Cisco in 2002 as SVP responsible for both the company’s Worldwide Service Provider business and the U.S. Theater Operations. Nuti’s career also includes sales and management positions at IBM, Network Equipment Technologies and Netrix. Last week, NCR reported second quarter revenue for its ATM business was $323 million, down 2% from the year-ago period. Overall, NCR reported 2Q/05 net income of $127 million. For the third quarter, NCR expects total revenue to grow 2% to 3% from the prior-year period. For complete details on NCR’s current and past performance, visit CardData ([www.carddata.com][1]) (CF Library 7/27/05)

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

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Acacia’s Financial Systems Innovation Signs 3

Acacia’s Financial Systems Innovation has inked non-exclusive licenses covering a patent that applies to credit card fraud protection technology with 7-Eleven, Academy and Michaels Stores. The system includes an electronic card reader and the generation and use of a transaction number, which specifically identifies each transaction processed within the system, eliminating the need to print detailed information concerning the cardholder’s identity or account number on the customer’s receipt. The Acacia Technologies group develops, acquires, and licenses patented technologies.

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SEPA Impacts European Debit Card Business

A new report has found that one of the “Single Euro Payments Area” has thrown the European debit card business into turmoil. As an initial lever to move European banks toward implementation of “SEPA,” the EU instituted “Regulation 2560/2001.” It mandated that cross-border cash withdrawals or card payments below EUR12,500 cannot cost more than in-country cash withdrawals or card payments of the same amount. At the start of 2006, that threshold shifts upward to EUR50,000. TowerGroup estimates that cross-border debit card transactions cost 4% in fees, while the cost of debit card transactions domestically within eurozone countries tends to fall below 4% of transaction value. Therefore, “Regulation 2560/2001” has effectively mandated the creation of a cross-border debit network to replace in-country debit networks currently in existence across the eurozone and across the whole EU. This raises the issue of who will own that Pan-European Debit Network and how it will relate to the Pan-European Direct Debit System and the Pan-European Automated Clearing House.

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LaserCard’s Loss Widens by 13% in Q2

California-based LaserCard reported second calendar revenue of $7.0 million, compared with $8.7 million in the same quarter a year ago and a net loss for the quarter of $1.7 million, compared with a net loss of $1.5 million for 2Q/04. LaserCard Corporation manufactures and markets LaserCard optical memory cards, chip-ready Optical/Smart cards and other advanced-technology secure identification cards and has sold over 28 million secure ID cards for border security, immigration and national identification globally.

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ABS Charge-Offs Head North in June

Charge-offs among credit card-backed securities headed north again in June while delinquencies, in both prime and sub-prime portfolios continued a downward spiral. Charge-off ratios will likely trend up through January 2006 as last minute personal bankruptcy filings make their way into the courts thru mid-October. For June, charge-offs in the “prime” asset-backed credit card securities market increased 21 basis points to 6.41%. “Sub-prime” charge-offs nose-dived again by 72 basis points to 12.70%. One-year ago, “prime” charge-offs were 6.84% and “sub-prime” charge-offs stood at 17.02%. According to the “Fitch Credit Card Index,” “prime” delinquency (60+ days) fell to 2.61% in June, the lowest level since July 2002. “Sub-prime” delinquency (60+days) for June declined to 6.45%, the lowest level since June 2001.

ABS CHARGE-OFF HISTORICAL
Month Prime Sub-Prime
Jun 04: 6.84% 17.02%
May 05: 6.20% 13.42%
Jun 05: 6.41% 12.70%
Source: Fitch Ratings

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40% of Companies are Now Using Gift Cards

First Data has formed First Data Prepaid Services which includes ValueLink and Money Network. The Company released a survey today that indicates of the companies offering some form of customer incentive, 40% are using gift cards most often, second only to product or service discounts at 52%. Twenty-nine percent said that their primary use of gift cards was for the consumer market, while roughly the same number (28%) said their primary audience for gift card incentives was for the business-to-business market. The remaining 43% split their use of gift cards as incentives among consumers and other businesses equally.

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Wachovia to Deploy Dynamic Card’s CardWizard

Wachovia Corporation has selected “CardWizard” software from Colorado-based Dynamic Card Solutions to enable the instant issuance of an all-in-one campus card that students can use as a student ID card, ATM and VISA debit card. Wachovia will pilot two programs at the University of North Carolina at Chapel Hill and the University of North Carolina at Greensboro. CardWizard instant issue software provides full reporting, card inventory, security and monitoring features required for instant issue. Dynamic Card Solutions is a developer of instant issuance and PIN selection solutions for banks, credit unions and retailers.

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RBS Lynk Teams with ATM USA for I-ATMs

Atlanta-based RBS Lynk has teamed with ATM USA to introduce Internet ATM transaction processing services. The internet protocol solution will be targeted to convenience stores in the United States. To deploy the service an Internet payment gateway is installed at the site of the convenience store merchant’s Internet connection. Several store locations may be supported by a single payment gateway, depending on transaction volume. ATM USA, LLC is one of the nation’s largest and fastest growing ATM distribution and service providers with more than 2,500 ATMs throughout the United States. RBS Lynk is a single-source provider of electronic payment processing services.

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