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Table of Contents

Lead Story

Tapping into portfolio power players

News

Industry Update

Debit surcharges targeted by California lawmakers

Have NFC payments reached tipping point?

Skimmers shifting from ATMs to gas pumps

Trade Association News

Selling Prepaid

Prepaid in brief

Legislative fallout for gift card providers

Thom Aldredge
World Gift Card

Views

ISOs, MLSs and financial services re-regulation

Patti Murphy
The Takoma Group

Fraud trends in 2010

Nicholas Cucci
Network Merchants Inc.

Education

Street SmartsSM:
Variations on valuations

Ken Musante
Eureka Payments LLC

Going global in Europe

Caroline Hometh
Payvision

Succeeding at PCI compliance - Part 4: Maintaining the program

Dawn M. Martinez
First Data Corp.

Technical details: What to share and what to spare

Dale S. Laszig
Castles Technology Co. Ltd.

Are your online contracts enforceable?

Sarah Weston
Jaffe, Raitt, Heuer & Weiss PC

The proper care and feeding of LinkedIn

Marc W. Halpert
Connect2Collaborate

Company Profile

Federated Payment Systems LLC

New Products

iPhone terminal with gateways galore

iPay POS
Rapadev LLC

Inspiration

Shuffling the deck on negative people

Departments

10 Years ago in
The Green Sheet

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

August 23, 2010  •  Issue 10:08:02

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Industry Update

NEWS

Heartland, First Data, Hypercom report earnings

Reports from payments industry companies for the second quarter ending June 30, 2010, showed mixed results. Heartland Payment Systems Inc. reported a 14 percent jump in revenue year over year to $475.9 million for the quarter.

Profit jumped to $5.7 million, or 16 cents a share, versus a loss of $1.9 million, or 7 cents a share, for the same quarter last year. Heartland shares rose 6.7 percent to $16.73 in the trading session following its earnings report.

First Data Corp.'s second quarter consolidated revenue of $2.6 billion was up 18 percent compared to a year ago, primarily driven by the formation of the Bank of America Merchant Services alliance. The quarter's adjusted revenue of $1.6 billion increased 4 percent year over year.

First Data's adjusted earnings before interest, taxes, depreciation and amortization was $513 million, compared with $589 million for the second quarter of 2009. First Data attributed this to incentive compensation accruals, the termination of services by Washington Mutual Inc. and a write-off of receivables. The net loss attributable to First Data for the quarter was $171 million.

For equipment vendor Hypercom Corp., second-quarter revenue rose 5.2 percent from the first quarter 2010 to $103.9 million, but it fell 1.6 percent year over year. Revenue held steady year over year on a constant currency basis. However, net profit slid 59.5 percent to $2.9 million, excluding special items, from $7.2 million for the same quarter a year ago.

Education program teaches ins and outs of PCI DSS

Trustwave now offers a two-day education program to train information technology professionals on the Payment Card Industry (PCI) Data Security Standard (DSS). The company stated that the program is based on Trustwave's Assessment Methodology and helps customers interpret the requirements and achieve compliance in a cost-efficient manner.

The program provides an overview of the regulatory environment, card processing vulnerabilities and threats, and an in-depth review of each requirement. It is designed for executives, compliance officers, and information security and information technology pros. For further information, visit www.trustwave.com.

Visa introduces online shopping tool

Visa Inc. launched an online shopping tool branded Rightcliq, a plug-in to assist consumers with product comparisons, checkout and package tracking.

The Wishspace feature lets consumers organize images of products they're considering buying. At checkout, consumers can automatically fill in payment and shipping information that they store in their Rightcliq accounts.

As part of Rightcliq, Visa guarantees zero liability for fraudulent transactions on users' stored Visa accounts. Rightcliq's promotional line, "Power to the Shopper," is part of an integrated marketing campaign. For more information, visit http://rightcliq.visa.com.

ANNOUNCEMENTS

PNC, foreign banks receive ACI awards

Electronic payment product vendor ACI Worldwide Inc. issued a series of excellence awards to certain customers for their innovation in using ACI products. Awards were given to: PNC Financial Services Group Inc. in the United States, Fortis Bank AS in Turkey, JSCB Ak Bars Bank in Russia, HDFC Bank Ltd. in India and AmBank Group in Malaysia.

DCS gets instant-issue patent

The U.S. Patent and Trademark Office issued a patent to Dynamic Card Solutions LLC for its proprietary instant-issuance printing technology for unembossed payment cards. The patented process produces cards from blank card stock, including printing unembossed cards using reverse retransfer film with inhibitor panels.

Leadership forum sets sail

An all-star CEO roundtable panel at the eta Electronic Transactions Association's Strategic Leadership Forum will take the helm with a discussion entitled "Sail on to Better Waters." Kurt Strawhecker of The Strawhecker Group will moderate.

The panel includes Tom Bell, CEO, Bank of America Merchant Services; Mark Pyke, President of TSYS Acquiring Solutions; Debra Rossi, Executive Vice President at Wells Fargo Merchant Payment Solutions; Jeffrey Sloan, President of Global Payments Inc.; and Ed Labry, President of First Data Retail and Alliance Services.

The forum will be held Oct. 26 to 28 in Palm Beach, Fla. For more details, visit www.electran.org.

Element, Global ranked top channel products

Hosted Payments from Element Payment Services Inc. was chosen by Business Solutions magazine as one of 2010's Best Channel Products.

The award was based on an annual survey of value-added resellers (VARs) and independent software vendors, which ranked Hosted Payments as a top hosted processor for its reliability and ease of service by independent software vendors.

Business Solutions also named Global Transport, the proprietary payment gateway of Global Payments Inc., a Best Channel Product. Merchants, software developers, VARs and original equipment manufacturers use the Global Transport platform to integrate their POS applications with payment devices.

Juniper gives mobile awards to mBlox, eBay

Juniper Research Ltd. awarded its Future Mobile Award in the payments category to mBlox Inc. for its short message service transaction platform, which provides mobile payments capability for businesses selling digital products such as music.

The award in the coupons category went to Mobiqa Ltd., while eBay Mobile won in the retail category for its transition to a mobile platform.

MRC opens office in Spain

The Merchant Risk Council opened a European office in Madrid, Spain. The office is led by Nicolas Vedrenne, MRC's Managing Director for Europe. It connects merchants, risk-management software vendors, law enforcement and financial institutions.

NACHA issues fraudulent-email alert

NACHA - The Electronic Payments Association issued an alert that a fraudulent email purportedly sent by the organization is circulating. The email contains a link that NACHA suspects plants an executable virus with malware on recipient computers when the link is clicked. The subject line of the email is "Unauthorized ACH Transaction." The organization advises recipients not to click on the link. NACHA does not send communications about individual automated clearing house transactions.

PARTNERSHIPS

Kroger contracts with Cardtronics

Cardtronics USA Inc. will manage ATMs for The Kroger Co. at its 800 locations. Services will include installation, cash management, maintenance and transaction processing.

EMS teams with CRE Secure

CRE Secure Payments LLC integrated its PCI-compliant payment acceptance service into Electronic Merchant Systems' products for e-commerce clients. Online merchant clients of EMS are redirected to CRE Secure's hosted payment platform through a window that mirrors merchants' websites.

FTSI to service ATMs for Washington credit union

Financial Technology Solutions International Inc. will service ATMs for Vancouver, Wash.-based iQ Credit Union. With 28 ATMs, iQCU marks FTSI's first client outside California.

Home Trust Co. looks to Gemalto for EMV

Gemalto NV is managing Canadian Visa issuer Home Trust Co.'s migration to Europay/MasterCard/Visa smart payment cards. Gemalto, which sells security software and devices, is providing consulting services on the project.

JHA adopts Inetco software

Jack Henry & Associates Inc. deployed software from Inetco Systems Ltd. to improve customer service and reduce the risk of downtime. Inetco Insight displays real-time data about applications, switch components, network links and third-party service providers, isolating issues that could slow transactions.

Elavon certifies NMI

Network Merchants Inc. was certified on Elavon Inc.'s processing platform. NMI completed its certification with support for retail, MO/TO, e-commerce and Level 3 processing.

Paymetric deploys ACH from United Tranz*Actions

Clients of Paymetric Inc. have access to ACH and electronic check processing through a partnership with United Tranz*Actions LLC. The agreement also covers remote deposit capture (RDC) and check guarantee.

TransNet certified on Logivision

The TransNet payment engine application from Precidia Technologies Inc. was certified with the L-POS system from Logivision. Housed on the POSLynx220 payment router from Precidia, TransNet is validated as meeting the Payment Application DSS.

SSFCU joins CO-OP Network

Texas-based Security Service Federal Credit Union joined CO-OP Network, giving its 760,000 members surcharge-free access to CO-OP's 28,000 ATMs nationwide. CO-OP Network is operated by CO-OP Financial Services.

EZCheck to use Skyline's DirectFED for RDC

RDC specialist Skyline's DirectFED Payment Solutions Corp. partnered with EZCheck, a payment services company. EZCheck now uses Skyline's DirectFED as a Check 21 option for its clients. The partnership gives EZCheck the ability to do RDC with guarantees.

TrustCash integrates BlackBerrys into gateway

Online payment processor TrustCash Holdings Inc. integrated all BlackBerry device models from Research in Motion Ltd. into its mobile payment gateway. The move gives all TrustCash clients the ability to process credit cards and deposit cash for purchases directly through any BlackBerry device using the TrustCash gateway.

UBC partners with Trustwave

Trustwave will implement a Level 4 program at United Bank Card Inc. to help merchants achieve compliance with the PCI DSS. UBC stated that it processes accounts for over 110,000 merchant locations.

Visa Europe launches mobile payments over microSD smart phones

Visa Europe launched a microSD-based mobile payment system in Turkey with DeviceFidelity and Akbank. The system enables handsets equipped with microSD card slots to make mobile payments through all mobile operators and a majority of smart phones. The system deploys Visa's contactless and DeviceFidelity's In2Pay technology to deliver mobile payments to Akbank customers.

ViVOtech licenses Semtek encryption

ViVOtech Inc. chose Cipher Hidden Encryption software from Semtek Innovative Solutions Corp. for use in its customer-facing POS devices. The technology enables ViVOtech to offer its clients end-to-end encryption on a global scale, according to ViVOtech.

VocaLink teams with eWise

Payments processor VocaLink and online financial management product vendor eWise partnered to market a secure online payment system for the U.K. The system uses VocaLink's Immediate Payments platform with the eWise Online Banking ePayments network, marketed to financial institutions as a service providing customer authentication and payments to merchants.

ACQUISITIONS

AmeriMerchant picks up Canadian cash-advance firm

Cash advance provider AmeriMerchant LLC bought CanaFunding Corp., a move that allows AmeriMerchant's U.S.-based ISOs and agents to sell in Canada. Founded in 2007, CanaFunding now operates under AmeriMerchant management but retains its brand name in Canada.

NAB buys CDI

North American Bancard LLC acquired CDI Technology from investment firm Quantum Ventures of Michigan LLC. CDI, a Micros Systems Inc. dealer, is a regional supplier of POS systems to the restaurant and hospitality industry in Southeast Michigan and Western Ohio.

APPOINTMENTS

Cawthorne named President at Wausau

Wausau Financial Systems Inc., a provider of receivables processing systems, appointed Gary Cawthorne President, succeeding Joe Delgadillo. A member of Wausau's board of directors since April 2009, Cawthorne was previously a Managing Partner at Electronic Knowledge Interchange and President of Getronics Americas.

Kilat named Executive VP of Finance

CrossCheck Inc. promoted Dave Kilat to Executive Vice President of Finance. He joined the company in 2008 as Senior Vice President.

MasterCard appoints three

MasterCard Worldwide named Ed McLaughlin Chief Emerging Payments Officer and appointed Eileen Simon Chief Franchise Development Officer. McLaughlin, who was Group Executive for MasterCard's Franchise Development Group, replaces Josh Peirez, who has left the company. The mobile payment solutions joint venture, person-to-person, PayPass/Transit, chip technology and bill payment are among the emerging payment products and services that McLaughlin manages.

Simon was previously MasterCard's Group Executive and Senior Associate General Counsel. She will implement a global franchise strategy.

In addition, MasterCard named Tara Nathan CEO of its joint venture with Smart Hub Inc. Headquartered in Singapore, Nathan is responsible for developing the MasterCard Mobile Payments Gateway. She worked most recently for Citigroup.

Passilla appointed CEO at Elavon

Elavon Inc., a subsidiary of U.S. Bancorp, promoted Mike Passilla to President and CEO, effective Aug. 16, 2010. As Executive Vice President, Passilla had been responsible for global business development. He replaces Stuart C. Harvey Jr., who joined Ceridian Corp. as CEO.

BillingTree hires and promotes

In a company expansion, BillingTree Inc. made several staff promotions and additions. Randy Phelps was named Chief Operating Officer.

He had been Senior Vice President of Operations. And BillingTree hired Holly Merrill to the newly created position of Director of New Product Development.

Other promotions include Chad Probst to Director of Sales and Jason Rabago to Strategic Alliance Manager. Dave Yohe was hired to lead corporate marketing, and Jose Garcia joined the company as Customer Support Manager.

Tepoorten to lead CDI Tech

Following the acquisition of CDI Technology, NAB appointed David L. Tepoorten General Manager of CDI. Thomas C. Merten was named Merchant Services Manager. Peter C. Violassi and Cary Nickerson continue as Sales Manager and Director of Operations, respectively.

SignaPay appoints Wood to lead sales

Texas-based ISO SignaPay Ltd. and its subsidiary SenorPay hired Marty Wood as Director of Sales. Wood previously held sales and management positions at NAB and Century Payments Inc. and was President at Fast Transact Inc.

BOTTOM LINES

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | Harbortouch | USAePay | IRISCRM.COM | Humboldt Merchant Services