NEWS

Data Security Act re-introduced

Sen. Patrick Leahy, D-Vt., Chairman of the Senate Judiciary Committee, and Sen. Bernie Sanders, I-Vt., introduced the Personal Data Privacy and Security Act of 2007. Committee member Sen. Arlen Specter, R-Pa., co-sponsored the bill. Leahy said the act would require notifying victims of data breaches. It would also deal with the problem of lax security and accountability.

Among the bill's provisions, it requires notice to law enforcement, consumers and credit reporting agencies when personal information has been compromised. The notice trigger is tied to significant risk of harm. Appropriate checks and balances prevent over-notification, as well as underreporting.

The bill provides exemptions for national security and credit card companies using fraud-prevention techniques. In recent cases, the retailers DSW Inc. and TJX Inc. experienced data thefts from their computers.

VeriFone to bring news, payment options to N.Y. cabs

N.Y. yellow cabs will soon provide passengers news and weather updates, credit and debit card payment options, and automated collection of trip data. WABC-TV/channel 7 in New York will provide the news, which will be delivered over integrated payment and content systems from VeriFone Transportation Systems, an alliance between VeriFone and Taxitronic, a N.Y. taxicab meter supplier.

ANNOUNCEMENTS

Calpian offers ISO funding

Calpian Inc. introduced Calpian Loans, a funding program for ISOs. The program is available to ISOs with portable and nonportable merchant portfolios. In the past, only ISOs that could leverage their portable merchant portfolios as collateral could obtain loan funding, according to the company. Calpian is a wholly owned subsidiary of ART Holdings Inc.

Charge Card Systems expands

Charge Card Systems is opening a 7,500-square-foot corporate headquarters in Boca Raton, Fla., and a call center in Las Vegas.

First Data closing check and money order biz

First Data Corp. is terminating its official check and money order operation, a move it expects will free up between $250 and $300 million in cash. The company plans to use the funds for acquisitions, share repurchases or other corporate purposes in 2007. First Data intends to serve existing business clients through the end of their respective contracts.

Global Payments Chairman recognized

Institutional Investor magazine named Global Payments Inc.'s Chairman, President and Chief Executive Officer Paul R. Garcia one of "The Best CEOs in America" for the third year in a row. In the January 2007 issue, Garcia was ranked among top CEOs in the "Technology: Computer Services and IT Consulting" business sector.

Heartland reports growth

Heartland Payment Systems Inc. announced a 20% increase in fourth quarter 2006 net income. The company reported $6.6 million compared with $5.5 million in the fourth quarter 2005. For the three months ended Dec. 31, 2006, processing volume grew 25% to $11.4 billion over the same period in 2005.

For the full year 2006, net income increased 49% to $28.5 million. Heartland's active merchant count rose to 137,400, a 21% increase over the past 12 months.

JCB logo receives makeover

JCB International Credit Card Co. Ltd. unveiled a new emblem, its first change in nearly 40 years. The new design will begin appearing at selected JCB-accepting merchant locations worldwide in June 2007. Subsequently, JCB-branded cards will be issued with the new emblem in April 2008.

For the last 39 years, the JCB emblem has had three S-shaped patterns, which stood for "sign, smart and safety." The three main colors - blue, red and green - symbolized universal acceptance. The newly designed logo will keep the same colors. But it will redefine the 'S' shapes as "support, strength and sharing."

NCHA settles 161.8 million items in January

In January, the National Clearing House, a settler of clearing house check and image volume in the United States, settled 161.8 million items valued at $158.9 billion. NCHA's January image volumes represent 33% of the organization's total volumes, up from 27% in December.

Perimeter eSecurity approved as scanning vendor

Perimeter eSecurity has been certified to perform Payment Card Industry (PCI) Data Security Standard (DSS) compliance assessments. It recently completed the PCI Security Standards Council's test to become an approved scanning vendor. Perimeter eSecurity will help merchants manage data security risks, evaluate their system's security and assist them in achieving PCI DSS compliance.

RentPayment completes SAS 70 audit

RentPayment recently completed the American Institute of Certified Public Accountants' Statement on Auditing Standards (SAS) No. 70, Type II audit. The audit reviewed the company's data center and managed service controls.

PARTNERSHIPS

CrossCheck certifies Mobilescape 5000

CrossCheck Inc. awarded Class B platform certification to Commerciant LP's Mobilescape 5000 check and credit card wireless payment solution.

CyberSource picked by Lloyds

Lloyds TSB Bank Plc has chosen risk-management solutions provider CyberSource Ltd. as a preferred provider for its corporate customers.

EZCheck deploys Orion products

EZCheck has deployed and supports the Orion all-in-one check reader, imager and card solution from 4Access Communications Co. In addition, EZCheck uses the 4Access Web-based archive and retrieval system and the 4Access Web-based terminal configuration server.

Fidelity to process for NewAlliance

NewAlliance Bank's Merchant Services Center signed a merchant processing agreement with Fidelity National Information Services Inc. Fidelity will provide authorization and capture, online debit and associated services.

Nxgen wins foodservice distributor

Nxgen Payment Services has partnered with Progressive Group Alliance, a U.S. independent foodservice distributor group. Nxgen will provide Progressive Group Alliance's members credit card processing, electronic gift cards and ATMs. Nxgen is a registered merchant service provider with Cynergy Data through Bank of America Corp.

Pay By Touch to offer GETI check products

Pay By Touch will offer its partners and merchants Global eTelecom Inc.'s check conversion and guarantee products. GETI's solutions enable merchants to accept and process paper checks electronically.

DDS helps PAI consolidate reporting

Data Delivery Services Inc. will provide Web reporting and technology services to Payment Alliance International's management, partners and merchants. This partnership will allow PAI to consolidate information from multiple processors into a single environment for reporting and analysis. Merchants, for example, will have a single point of access to their processing statements, transaction history and other acquiring information.

TSYS partners with Clearent, Moneris

TSYS Acquiring Solutions now provides merchant services for Clearent. TSYS also renewed its merchant-processing service agreement with Moneris Solutions, covering its U.S. portfolio.

ACQUISITIONS

ActiveCore buys CollectivePOS

Technology provider ActiveCore Technologies Inc. is acquiring Collective Point of Sale Solutions Ltd., doing business as CollectivePOS, a Canadian payment processor. CollectivePOS will generate USD $6 million in sales in 2007 from more than 9,000 existing merchant accounts processing over $1 billion. The acquisition is expected to close by the end of the first quarter.

Size and Intelligent Results join First Data

First Data acquired Size Technologies Inc., a developer of loyalty, stored value and transaction marketing products that integrate with existing payment systems. The purchase enables First Data to offer merchants a real-time, tender-neutral loyalty solution.

First Data will also buy Intelligent Results, a customer data analytics and management software company. The company currently serves clients in the financial services, utilities and government services markets.

Hypercom acquires Australian service firm

Hypercom Corp. acquired ACG Group Pty Ltd., an Australian provider of installation, service and support for POS equipment. Hypercom recently appointed John Tait General Manager of Hypercom's Australia, New Zealand and Pacific Region.

Vesta acquires Lightbridge's TDS

Vesta Corp. acquired the Telecom Decisioning Services assets of Lightbridge Inc. TDS provides services that enhance a client's customer-acquisition strategies to assist in determining an applicant's creditworthiness. TDS also provides fraud tools and database analysis to identify potential fraudulent activity. This acquisition builds on Vesta's payment and security services.

APPOINTMENTS

Pay By Touch hires IPO veteran

Pay By Touch appointed Jeff Amann Chief Administrative Officer and Interim Chief Financial Officer. He joins the company from Siebel Systems Inc., where as General Counsel he guided the company through its initial public offering.

First Data promotes Bartlett-Andersen, hires Tavares, Hesh

First Data named Robyn Bartlett-Andersen General Manager of Healthcare Services. She joined First Data in 1978 and has been part of the health-care team since its inception.

First Data also named Silvio Tavares Senior Vice President and Head of Investor Relations. Alex Holmes, Director of Investor Relations, will return to an operational leadership position. Prior to joining First Data, Tavares was Senior Director with the Corporate Executive Board Co.

First Data International appointed Sean Saeed Hesh Managing Director of Merchant Solutions Pte Ltd., a newly formed merchant services joint venture with Standard Chartered Bank in Asia. Based in the merchant solutions headquarters in Singapore, Hesh joins with 17 years of experience, including 13 years with First Data's Commercial Services unit.

I2c appoints Conway

Scott Conway has joined i2c inc. as Director of Infrastructure. Conway will manage the company-wide project-management teams. He has held positions within Sun Microsystems Inc. and Merrill Lynch.

Precidia hires Davis, Sarosdy

Precidia Technologies Inc. appointed Ed Davis and Ted Sarosdy Vice Presidents of U.S. sales, targeting the retail payments industry. Davis, Vice President, Eastern United States, most recently served as Director, National Sales for RBS Lynk. Sarosdy, Vice President, Western United States, comes from Hypercom Inc. where he was Vice President of Sales for the transaction communications division.

MPF names new board

The Mobile Payment Forum, an alliance of organizations dedicated to the advancement of mobile commerce, announced its incoming board of directors. The board includes Martin Harrison, First Data International; Simon Pugh, MasterCard Worldwide; Christopher J. Bierbaum, Sprint Nextel; Bob Adamany, VeriSign; Stephanie Ericksen, Visa International; and Oliver Kelly, Vodafone.

AmEx elects Yale's Levin and Aetna's Williams to board

American Express Co. elected Richard C. Levin, President of Yale University, and Ronald A. Williams, Chairman and CEO of Aetna Inc., to its board of directors. Levin is a Director of the William and Flora Hewlett Foundation and Satmetrix. Williams is a trustee of The Conference Board and serves on the Massachusetts Institute of Technology Sloan School Dean's Advisory Council.

Mitchell appointed by NACHA

NACHA - The Electronic Payments Association named Leslie Mitchell Director, Network Risk Policy. Mitchell will manage the development of risk management tools and policies for the automated clearing house network, working closely with member financial institutions and regional payment associations.

Paul named VP of Charge Card Systems

Charge Card Systems, the majority stockholder of Merchants' TPS, announced that Merchants' TPS will be marketed and sold under the Charge Card Systems brand. Bill Paul, minority stockholder and Merchants' TPS President, was named Vice President and National Sales Manager for Charge Card Systems. Paul will oversee all sales, agent recruitment and support for both companies.

Fleet One promotes two

Fleet One LLC promoted David Rewers to Group Vice President of Fleet Sales and Glen Sanginario to Group Vice President of Financial Operations. Rewers has 16 years of experience in the fuel card industry, the most recent four at Fleet One. For the past year, Sanginario has served as Vice President of Financial Operations.

Ross joins AmeriMerchant

Irene Ross has joined AmeriMerchant as Director of Communications. A former Vice President with both Rubenstein Associates and The Manzone Group, she recently worked at Discover Financial Services LLC.

Wheeler signs on to Way Systems

Randall R. Wheeler joined Way Systems Inc. as Chief Marketing Officer. Wheeler formerly served as Executive Vice President of Sales and Marketing for Lipman USA, where he grew the landline and wireless POS business to record levels.

BOTTOM LINES

• The average user of prepaid cards loads about $180 onto the card one time per month and makes 3.5 POS transactions with it, spending about $40 each time, according to the Federal Reserve Bank of New York and the Center for Financial Services Innovation, which presented the data at the second annual Prepaid Card Expo.

• Three out of 10 online users say debit is their preferred payment method. The survey, conducted jointly by Edgar Dunn & Co. and TransUnion and presented at the expo, found that of the 8,000 respondents, 26% each preferred credit cards and cash. Checks were preferred by 12%.

• Because consumers have consistently increased their use of plastic, interchange expense to merchants has risen 29% since 1995, said David Evans, Market Platform Dynamics, in an expo session on interchange.