NEWS

Celent analyzes check image exchange

2006 will be a breakthrough year for check image exchange, according to a report from Celent. In "Check Image Exchange: Roads to Rome" Celent predicts the percentage of checks sent and received electronically will reach 18% in 2006 and grow to 56% by 2007. The report also finds that banks will face unsustainable rising costs if they stick with paper processing. Celent, however, estimates that in 2010, approximately 19 billion checks still will be processed.

Financial services industry association debuts

Financial Solutions Providers (FSPi) has launched as a new nonprofit trade association for companies that market products and services to the financial services industry. FSPi's mission is to help members grow their businesses by enhancing relationships with banks, credit unions and other related enterprises. FSPi membership is open to companies that develop, manufacture or service products for the financial marketplace. For membership, visit www.fspinternational.org or call 330-936-3794.

Acquiring processing prices lower in 2005

The overall cost per transaction of merchant processing decreased in 2005, according to a study by Strategic Management Partners (SMP). "Pricing Benchmark Study" focused on the direct costs of high-volume processing services financial institutions and ISOs pay to third-party processing companies. The study also found that ISOs tend to have lower pricing than their bank counterparts. SMP observed that ISOs tend to be more aggressive in using a formal RFP approach with processors to achieve the best pricing, while financial institutions tend to sign longer term processing contracts. The study also found an upward trend in ancillary processing. The study is available by e-mailing kurt@smpbiz.com or calling 888-859-5637, ext. 2.

Consumers most concerned about information theft

A survey from Visa International revealed that theft or loss of personal and financial information is the primary concern of consumers worldwide, trumping job loss, natural disasters, epidemics and even terrorism. According to the research, technological advances in cardholder authentication would make 57% of consumers feel "much more confident" in the protection of their personal data. Sixty-two percent of online shoppers have become more discriminating about the Web sites they patronize, and 24% said that they shop less online.

ANNOUNCEMENTS

ACH Direct relocates

ACH Direct Inc. completed the relocation of its corporate offices to Allen, Texas. The new 20,000-square-foot facility houses 40 employees and a processing center.

Chase Launches 'blink' in Dallas-Fort Worth

JP Morgan Chase & Co. recently rolled out its contactless credit cards with "blink" in the Dallas-Fort Worth area. Initial merchants include 7-Eleven, AMC Theatres, CVS/pharmacy, RaceTrac and Regal Entertainment Group.

Global Payments certifies ExaDigm terminal

ExaDigm Inc.'s XD2000 POS terminal received Class-B certification from Global Payments Inc. This facilitates Global Payments in offering processing to merchant customers using Internet-protocol connections.

Ezic expands certifications

Ezic Inc. announced its certification with Chase Paymentech Solutions. Some of Ezic's international certifications include Cosmos Limited (Australia), Deutsche Bank AG (Germany) and Wirecard Technologies AG (Germany).

Financial Services Roundtable announces priority issues

The board of directors of The Financial Services Roundtable identified its priority public policy issues for 2006. They include information security, disaster recovery and payments and interchange issues. To view a complete list of priority issues, visit www.fsround.org/pdfs/2006%20Issues.pdf

Lipman receives Vital approval

Lipman Electronic Engineering Ltd. achieved Vital Processing Services Class A approval across the entire line of Lipman terminal hardware.

SLIM CD certified for Valutec processing

SLIM CD Inc. announced certification of its software on the Valutec gift and loyalty platform. This certification allows merchants to issue and accept Valutec's gift and loyalty cards at their locations.

Total Merchant Services introduces new agent programs

Total Merchant Services added Lipman's NURIT 8000 general packet radio service wireless unit to its free terminal program. The company also enhanced its upfront bonus program, offering agents a $200 signing bonus.Additionally, the company debuted a new roll-over/conversion bonus program, whereby agents earn bonuses for reprogramming merchants that process Visa U.S.A. and MasterCard International transactions.

PARTNERSHIPS

ACH Direct enters patent license with LML

ACH Direct Inc. entered into a patent license agreement with LML Patent Corp. The agreement provides ACH Direct license to LML's electronic check conversion patents in the direct consumer field, including U.S. Patent Nos. 5,484,988; 6,164,528 and 6,283,366. Terms of the agreement are confidential.

MasterCard and Citi to conduct contactless payments trial

MasterCard and Citi will conduct a trial of contactless payments in select New York City subway stations with pre-selected Citi customers. The trial is expected to last approximately six months. Participants will enjoy a 20% bonus and pay per ride at specially equipped turnstile readers.

Fiserv and RCS to provide private-label processing

Retail Credit Solutions (RCS) selected Fiserv's PLUS System to provide account management processing services. RCS provides account management solutions for private-label credit cards and focuses on small to midsized retailers

Global Payments endorsed by auto dealers; signs with Signature Card Services

Global Payments Inc. formed an agreement with the Missouri Automobile Dealers Association (MADA) whereby MADA will recommend Global Payments' card and check transaction processing services to MADA members.

In other company news, Global Payments implemented a multiyear processing agreement with Signature Card Services. Global will provide Signature Card Services with transaction processing services (including authorization, capture and settlement) as well as facilitate BIN sponsorship for credit, debit and electronic benefits transfer card processing.

Lipman receives $7 million order

Lipman received a contract to supply $7 million of customized NURIT 8320 and 8000 POS terminals and NURIT 222 PIN pads to the Industrial and Commercial Bank of China (ICBC). The terminals will be used in a joint project between ICBC and China National Petroleum Corp. to enable payment at fuel pumps for the first time in China's history.

Ingenico to supply terminals to Japan

Ingenico will supply payment terminals to NTT DATA Corp. NTT DATA operates CAFIS/INFOX-NET, the largest financial transaction acquiring network in Japan.

Payment Data Systems and Shelby Systems sign referral agreement

Payment Data Systems Inc. signed a contract with Shelby Systems Inc. under which churches contact Shelby to procure credit card payment capability for members. Payment Data then completes the contracts.

PaySpot partners with Paperless Transaction Corp.

PaySpot Inc. and Paperless Transaction Corp. are offering two months' free credit card processing to PaySpot merchants who add Paperless Transaction Corp.'s solutions to their product offerings by April 1, 2006.

Peppercoin to power small payments

TouchMedia selected Peppercoin's Small Payment Suite to process digital transactions at its TouchStand and TouchView in-store, digital media stations.

This offers TouchMedia's retaiers a way to accept credit and debit cards at kiosks on a pay-per-use, prepaid or subscription basis.

Wakefern implements VeriFone signature solutions pilot

Wakefern Food Corp. is implementing a pilot of the VeriFone VisualPayments Signature Solutions software. Wakefern is the distribution arm of ShopRite supermarkets.

Western union signs agreements

Western Union Financial Services Inc. signed an exclusive global agreement with Travelex, the world's largest nonbank foreign exchange payments company. Travelex locations will now offer only the Western Union Money Transfer service at 650 of its 700 retail locations, and across 97 airports worldwide. Western Union also signed a new six-year agreement for money transfer services with Grupo Elektra, a leading retailer in Mexico.

ACQUISITIONS

3i invests $23 million in Click & Buy

3i invested $23 million in Zurich-based Webpay AG, owner of Click & Buy, an e-payment and storefront provider for online and mobile digital content. Click & Buy opened a New York office in 2004.

ClickPay Solutions to buy SimpleCash

Cashing service provider ClickPay Solutions Inc. signed a letter of intent to acquire SimpleCash Funding. SimpleCash is a short-term funding solution that enables businesses to access working capital by using future revenue streams.

TNS acquires Comms XL

TNS acquired Comms XL. The deal furthers TNS' ability to provide an end-to-end POS solution.

APPOINTMENTS

FirstCard announces National Sales SVP

FirstCard Merchant Services appointed Joseph Armetta Senior Vice President of National Sales. Armetta is tasked with continuing FirstCard's merchant sales expansion through development of new partnerships with financial institutions and third-party vendors. Most recently Armetta served as Regional Sales Manager for RBS Lynk.

Leaders join Peppercoin advisory board

Five industry leaders joined Peppercoin's newly established advisory board. Initial members include Robert Buoniconti, Consultant; Robert Kiburz, Adviser; Bernard Morvant, Adviser; Steve Mott, Principal of BetterBuyDesign; and David Douglas Stone, President of Smart Payment Systems.

AmEx elects board member

Peter Chernin, President and Chief Operating Officer of News Corp., was elected to the board of directors of American Express Co. Chernin joined News Corp. in 1989 as President of Entertainment at the Fox Broadcasting Co.

Goodwin elected to CheckFree board

C. Kim Goodwin was elected to CheckFree Corp.'s board of directors. Goodwin previously served as Managing Director and Chief Investment Officer, Equities for State Street Research & Management Co.

Semtek hires new CEO

Patrick K. Hazel is Semtek Innovative Solutions Corp.'s new Chief Executive Officer. Hazel was previously the CEO of EWI Holdings. He has held a variety of principal and senior executive roles with Chancellor Media Corp., The Copley Press and American City Business Journals.

First Data appoints Senior Managers

Stefan Klestil joined First Data Corp. as Senior Vice President to lead the company's Central European operations. Most recently Klestil was a partner and head of financial services at Roland Berger. Paul Feldman also joined First Data as Senior Vice President, Operations, for Europe, the Middle East and Africa (EMEA). Dr. Feldman was previously Divisional Director at Nationwide Building Society. Additionally, the company appointed George Drimiotis as Chief Information Officer for First Data EMEA. Drimiotis was previously Managing Director of the company's operations in Greece.

VSoft hires Regional Sales Manager

VSoft Corp. named Bill Lebling as its Northeast Regional Sales Manager. Lebling has more than 27 years of financial industry experience. Before joining VSoft, Lebling was Vice President of Business Development at Jack Henry & Associates.

PULSE names CEO, President

Stan Paur, who has served as President and Chief Executive Officer of PULSE EFT Association LP for more than 23 years, will become Chairman of the network on March 31, 2006. David Schneider, PULSE Executive Vice President and Chief Corporate Development Officer, will succeed Paur as President. Schneider joined PULSE in 2000 and served as the company's general counsel.

Bottom Lines

• A security breach involving an estimated 200,000 debit cards was linked to an OfficeMax in Sacramento, Calif. Although a company spokesman said that there was not evidence of a breach, he would not comment on an investigation, which the FBI confirmed.
• 7-Eleven and H&R Block signed a deal that will let H&R Block customers cash their tax refund loan checks at 1,100 7-Eleven locations throughout the United States. The agreement will last for three years.
• Last month, India eased its strict protectionist laws against foreign retail investment. Now, single-brand overseas retailers may own up to 51% of a retail operation within the country. Large multibrand retailers, however, such as Wal-Mart Stores Inc. and Target Corp. are still barred from doing business in India.