JPMorgan Chase Sued Over Alleged FLSA Violations

A lawsuit has been filed against JPMorgan Chase alleging violations of the “Fair Labor Standards Act” overtime regulations at call centers in 11 states. JPMorgan operates or has operated call centers in Texas (Houston, San Antonio, Arlington and Dallas); Pennsylvania (Fort Washington); Arizona (Tempe and Phoenix); Missouri (Kansas City); Massachusetts (Boston); Ohio (Columbus); Colorado (Littleton); Florida (Tampa); Delaware (Newark); Louisiana (Monroe); and Illinois (Chicago). This case does not involve current and former Chase call center employees in the State of New York.

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InteliData & Striata Offer an e-Bill Solution

InteliData Technologies and Striata have teamed to offer an end-to-end eBill solution that can be deployed in-house or in an ASP environment. InteliData provides online banking and Electronic Bill Payment and Presentment “EBPP” technology and services to leading banks, credit unions, financial institution processors and credit card issuers. Striata Inc. is an application software developer and service provider focused on enabling secure electronic communication.

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QNQ BILL EXPRESS CARD

OnQ and US-based GlobeTel Communications have teamed to launch
a stored value MasterCard. The new “OnQ Bill Express Magic Money MasterCard” will be distributed through QnQ’s 8,000 points of sale throughout the country. The new prepaid debit card can be topped up at selected retail outlets and used wherever the MasterCard and Maestro logos are featured. The OnQ Group of Companies specializes in e-Commerce and business solutions through products that provide clients with a “one-stop” shop for multiple solutions, or specific solutions, for specific needs. GlobeTel is in the international carrier termination business and is expanding to provide strategic advantages to commodity telecommunications based products.

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Fair Isaac Posts a Disappointing Second Quarter

Fair Isaac reported revenues of $173.2 million for the quarter ending June 30th, a 6% gain over 2Q/03. Net income for the quarter totaled $28.8 million, compared with net income of $30.0 million for the same quarter last year. The Company said it was disappointed in the lower-than expected results but says its innovation is as strong as ever, as they learn how to execute well in multiple markets simultaneously. Fair Isaac says it has begun the integration of London Bridge. The Company’s Board of Directors approved a stock repurchase program to acquire up to $200 million of the company’s outstanding common stock. Fair Isaac this week announced it has extended its “FICO” scoring to consumers who have minimal or no credit history on file. For complete details on Fair Isaac’s second quarter performance visit CardData ([www.carddata.com][1])

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

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Stored Value Card for Seafarers Launched

The founder of Pier One has teamed with Miami-based GlobeTel Communications to launch a stored value card program for the more than 200,000 seafarers in the Philippines. The new “Lighthouse Card,” to be promoted by entrepreneur Illac Diaz, enables Filipino seafarers to load and remit their cash from overseas at special rates to their loved ones’ “Lighthouse Card” back home. Lighthouse cardholders in the Philippines can then withdraw their money from any ATM in the Philippines and access their account from any where they are in the world.

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Bankruptcies Continue a Downward Trend in June

Year-to-date bankruptcy filings are still running nearly 3% below the year ago levels. During June, 127,742 filings were made compared to 130,242 for June 2003. Total bankruptcies for the second quarter were 409,794 compared to 412,968 for 2Q/03. Consumer bankruptcy filings for the first six months of 2004 were 801,817, down from 825,792 in 2003. The decline for the first half of this year is the first drop in consumer bankruptcy filings since 2000.

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Monthly Filings Historical
Jun 03: 130,242
Jul 03: 138,400
Aug 03: 138,266
Sep 03: 127,079
Oct 03: 148,044
Nov 03: 131,921
Dec 03: 113,383
Jan 04: 114,737
Feb 04: 124,719
Mar 04: 152,567
Apr 04: 145,543
May 04: 136,509
Jun 04: 127,742
Source: CardData (www.carddata.com)

[1]: /images/g/graphs/monthlyfilingsjun04.jpg

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CIBC and American Express Pull Entourage

CIBC, the country’s largest VISA issuer, is putting an end to “Entourage,” its co-branded venture with American Express, on October
31. CIBC says that “Entourage” failed to
meet financial expectations. The company will instead
refocus on its core VISA business.
“Entourage” was introduced in January 2002, AmeEx’s first
card-partnership in Canada, and made CIBC the first
Canadian bank to issue both American Express and VISA.
At the time, American Express referred to Canada as a
“critically important credit card market” for the
company. The venture had also been a milestone for American
Express because CIBC was the first bank in either
Canada or the U.S. to partner with the company for a
co-branded card. Since then, however, MBNA has signed with American
Express to offer co-branded cards in both countries,
and that agreement awaits the Supreme Court’s decision
on whether to uphold two lower courts’ nullification
of VISA and MasterCard’s exclusionary rules.
Under terms of the agreement between American Express
and CIBC, CIBC issued the cards, held the accounts and
handled all customer service functions. The company marketed three versions of the “Entourage”
card. The “Entourage American Express Card” was Canada’s
first smart chip credit card, offering consumers
tighter security for online transactions; the
“Entourage Platinum American Express” offered exclusive
features for consumers; and the “Entourage Business
American Express” offered features for the business
card holder.

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Euronet Revenues Double in the Second Quarter

KS-based Euronet Worldwide reported that its overall revenues for the second quarter nearly doubled to $87 million compared to one-year ago. Transactions for the EFT processing segment also doubled, and transactions for the prepaid processing segment were up 140%, compared to the second quarter of 2003. The EFT processing unit posted second quarter revenues of $18.0 million, compared to $12.2 million for 2Q/03. The EFT business processed 54.1 million transactions in the second quarter, compared to 27.1 million transactions for the same period last year. The segment completed the quarter with 5,097 ATMs owned or operated, compared to 3,120 ATMs at the end of the second quarter 2003. The prepaid processing unit reported second quarter revenues of $65.6 million, compared to $32.2 million reported for the second quarter 2003. The unit handled second quarter transactions of 54.6 million, compared to 22.8 million prepaid transactions processed in second quarter 2003. The prepaid processing segment processes electronic point-of-sale prepaid transactions at more than 162,000 point-of-sale terminals across more than 68,000 retailers in Europe, Asia Pacific and the USA. For complete details on Euronet’s second quarter performance visit CardData ([www.carddata.com][1])

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

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OBERTHUR 2Q/04

Oberthur Card Systems reported it delivered 33 million microprocessor cards during the second quarter, a 17% gain over the year-ago quarter. Smart payment card sales increased by 32% to EUR25.6 million driven by the EMV migration in the UK, and despite delays in France and Italy. Total sales in the second quarter were EUR108 million, an 11% increase year-on-year. Sales of “Other Cards” (magnetic stripe cards, scratch cards and memory cards) remained stable at EUR17.1 million. Sales of all microprocessor cards during the second quarter were EUR67.4 million, a 16.5% gain over 2Q/03.

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Hard Rock Cafe Rewards VISA Card Launched

Hard Rock Cafe and MBNA have launched a rewards VISA card linked to the Hard Rock “All Access” program. The no annual fee Hard Rock Rewards Visa(R) Card acts as an accelerator to Hard Rock Cafe’s “All Access” program by providing the cardholder with free membership and rewards each time he or she uses the new card for purchases anywhere. Hard Rock Cafe International, one of the most globally-recognized music, entertainment and dining brands has a network of more than 115 signature Hard Rock Cafes in 44 countries and owns the world’s greatest collection of music memorabilia.

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American Card Services Signs Distributorships

American Card Services says it has entered into several major new distributor partnerships for its stored value card and is picking up $500,000 in a private placement. The company is currently generating revenues and has produced 150,000 stored value debit card packs. The company engages in a profitable business model, retaining an estimated 35 percent of the sale price of card packs and 55 percent of the fee income as its gross margin from recurring fees (after variable expenses). American Card Services Inc. operates in the stored value card arena.

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