The Green Sheet Online Edition
August 13, 2007 • Issue 07:08:01
First Data shareholders say yea to KKR
Shareholders of First Data Corp. voted overwhelmingly
in favor of the processor's merger with an affiliate
of Kohlberg Kravis Roberts & Co. Only 2% nixed
the union. Upon the merger's conclusion, First Data
shareholders will receive $34 in cash, without interest,
per share of First Data common stock held. Ric Duques,
First Data Chairman and Chief Executive Officer, said
most of the necessary conditions have now been met,
and "we are well on our way to closing this transaction,
as expected, in the third quarter."
NAOPP teleconference to highlight hot legal issues
Payments industry Attorney Paul Rianda will address
free-terminal program legal issues, as well as other
important legislative developments, in a free teleconference
for members of the National Association
of Payment Professionals. The call will take place
Wednesday, Aug. 29, 2007, at 1:00 p.m. Eastern time.
For call-in information, NAOPP members should e-mail
firstname.lastname@example.org. Membership in NAOPP is $99 a year
for merchant level salespeople.
ATM thieves strike again
In June, a criminal duo reprogrammed the ATM at
Mastrorocco's Market in Pittsburgh, Pa., to dispense $20
bills, while the machine recorded that it was dispensing
$1 bills. The Pittsburgh Post-Gazette reported that
the two-day heist netted $1,540 for the pair, who used
the ATM's keypad to alter the device. The theft was
similar to one in Virginia Beach, Va., last fall when
thieves, likewise, reprogrammed an ATM using its keypad.
In both cases, the ATM manuals, along with administrative
passwords, were available online.
The Pittsburgh theft was perpetrated with a stolen credit
card. The crime went undetected for nearly a week
while Mastrorocco was on vacation. Upon his return, he
found the discrepancy between the amount of money in
his safe and the ATM accounting of cash dispensed.
Citi and Obopay team for mobile payments
Citi Card, a division of Citigroup Inc., is piloting a mobile
peer-to-peer payment service with leading mobile payment
provider Obopay. Initially, the new service will be
offered to select new and existing Citi Card customers in
Boston and Chicago as part of a limited trial.
Participating consumers can add money to their mobile
payment accounts through credit cards or electronic
bank transfers. Then, using the Obopay mobile application,
text messaging or a mobile Web browser, they
can manage their accounts directly via mobile phone.
Consumers will be able to instantly send or receive
money between friends or family, make payments to
institutions, check balances, view payment histories and
add funds to their mobile accounts.
CFSI banks on the underbanked
The nonprofit Center for Financial Services Innovation
raised an initial $1 million from KeyBank and the Ford Foundation for its new CFSI Catalyst Fund LP. The fund
will invest in companies that offer products and services,
such as prepaid cards, to the underbanked market.
Diebold installs 100,000th Opteva
Diebold Inc. recently sold its 100,000th Opteva ATM.
Introduced in 2003, the Opteva line includes full deposit
automation and personalized user services, using Agilis
software. A 20-year customer of Diebold, Commerce
Bank purchased the milestone ATM as part of a 300-unit
order. The device was installed with fanfare in July at
the bank's Clayton, Mo., branch.
The event included a presentation by the National
Federation of the Blind, highlighting the ATM's features
for visually impaired users.
Moneris on the move
In July, Moneris Solutions Inc., an electronic transaction
processor, held a ribbon-cutting ceremony for its new
U.S. headquarters. The hub is at Woodfield Corporate
Center, 150 N. Martingale Road, Suite 900, Schaumburg,
Ill. A joint investment of Royal Bank of Canada and the
Bank of Montreal, Moneris serves more than 350,000
North American merchant locations and has over 1,100
UBC launches new charity program
United Bank Card Inc. launched Pennies for Humanity,
a new charitable donation program. The endeavor
enables UBC's merchants to make tax-deductible donations
to nonprofit organizations by contributing a percentage
of each transaction. Under this program, merchants
can contribute $0.01, $0.02 or more from every
transaction to the American Cancer Society, Make-AWish
Foundation, National Federation of the Blind or
National Cancer Coalition.
Participating merchants are given marketing collateral
signifying their enrollment in the program, and detailed
monthly and annual reporting. Based on UBC's annual
transaction volume and growth, the company projects
its charitable contributions from this program will
exceed $1 million within the first year.
Best Western taps ExaDigm for POS duties
Best Western International Inc. selected ExaDigm's
XD1000 countertop payment solution for deployment
The XD1000 provides a single terminal capable of
processing all card-based payments, including traditional
credit and debit cards and the Best Western
The terminal's PC-based platform, which runs on the
Linux operating system, reportedly provides reliability,
security, ease of use, and the flexibility and upgradeability
that come with PC-based architecture.
Merchant Lynx selects JR's POS Depot
JR's POS Depot is Merchant Lynx Services' preferred
provider for POS hardware and deployment services.
Merchant Lynx Services offers merchants credit and
debit card processing, check guarantee services, prepaid
phone card and gift card programs, as well as
payment solutions for e-commerce businesses.
TriSource bonds with Granite
TriSource Solutions LLC signed a long-term processing
agreement with Granite Payment Alliance. Under
the agreement, Granite will use TriSource's Nobel
Electronic Transfer processing platform. Granite will
provide full turnkey processing and support services
to the agent bank market.
TenderCard captures Catuity
In conjunction with AmeriBanc Corp., an active Catuity
Inc. reseller since January 2007, TenderCard reformatted
its existing gift card program to meet AmeriBanc's
requirements: program simplicity, flat monthly fees
and quick turnaround.
TenderCard acquired and converted some 200 merchants
from Catuity's system; it plans to integrate
another 1,000 in three phases.
In June, Catuity's board of directors voted to seek a
buyer for the company after determining it "would be
unable to raise sufficient capital in the U.S. public markets
to be able to continue [doing business]," according
to a form filed with the Securities and Exchange
Commission. Catuity stated it would immediately
suspend its U.S. operations.
The company also terminated all U.S.-based employees
and is no longer taking new client orders.
Ingenico swallows Turkish distributor
Ingenico, a global supplier of transaction and secure
payment solutions, agreed to purchase Planet, its
Turkish distributor, for 26 million euros.
With this acquisition, Ingenico intends to further develop its business in Turkey and broaden activities in neighboring high-growth markets such as the Persian
Gulf countries, Egypt and Romania.
According to Ingenico, Planet's information technology
and services development platforms will enable
the company to enter the payment applications market
and extend its offerings in such areas as terminal rental,
repair and maintenance, as well as preprocessing of
The Bancorp bullish on BankFirst prepaid
The Bancorp Inc. is set to acquire BankFirst Corp.'s
Stored Value Solutions business. SVS provides customized
stored-value program development and card
issuing services to WageWorks Inc., Western Union
Holdings Inc. and Evolution Benefits Inc., among others.
It had issued more than 3.7 million prepaid cards as of
SVS employs cards branded by Visa U.S.A., MasterCard
Worldwide and Discover Financial Services LLC.
Under the terms of the agreement, Bancorp will purchase
SVS for $60.6 million, payable with $12.1 million in
Bancorp common stock shares and $48.5 million in cash.
The transaction is expected to close in the fourth quarter
of 2007, pending approval by the Federal Deposit
U.S. Merchant Systems appoints two
U.S. Merchant Systems appointed Gary Breeds and
Keith Boucher National Sales Directors. Breeds, who
spent five years with CrossCheck Inc., later served as
Vice President of Partner Acquisitions with a Louisville,
Boucher's career began at CrossCheck. Most recently,
he was a Manager in Westamerica Bancorp's Redwood
Merchant Services division.
Panini promotes Pratt
Panini North America appointed Michael Pratt Chief
Marketing Officer. Most recently, Pratt developed for the
company some widely-used business case models for
distributed data capture.
He also authored several white papers. Pratt's prior
experience includes senior executive positions for a NCR Corp. and AT&T.
First American hires Rizenbergs
First American Payment Systems LP named Rick
Rizenbergs Senior Vice President and Senior Sales
Strategist. Rizenbergs has over 25 years of sales experience.
Most recently, he was part of Siemens Medical
Solutions' executive team.
CrossCheck's Ficarra to serve on ETA committee
Bob Ficarra, CrossCheck Inc.'s Vice President of Partner
and ISO Relations, will serve as Vice Chair of the
Electronic Transactions Association's annual meeting
program planning committee for a one-year term.
Credit Union 24 welcomes Santiago; re-elects Cromer, Garcia
Credit Union 24 shareholders elected Joan Santiago to
the company's board of directors. They also re-elected
Ray Cromer Jr. and Maria Garcia to second terms.
Santiago is a Vice President with IBM Southeast
Employees' Federal Credit Union. She takes the seat
of retiring board member Paul Simkins, a founder of
Credit Union 24.
Cromer, who heads Envision Credit Union, has served
as the board's Chairman since June 2006. Garcia, a
Suncoast Schools Federal Credit Union executive, has
served on the board since 2004.
PaySimple snags Segale
PaySimple added Jeremy Segale to its management
team as Vice President of Operations. Segale, formerly
of Avaya Inc., will be based at the company's
headquarters in Denver.
While working for Avaya, Segale served as Director
of North American Remote Services, heading a group
of over 600 engineers. Previously, he was a Senior
Purchasing Manager with Dex Media.
eTelcharge.com wins Wilson
ETelcharge.com has appointed James L. (Toby) Wilson
Senior Vice President of Technology. Wilson was most
recently Principal of JTW Consulting, where he implemented
e-commerce systems for streaming video and
- Total retail sales grew 3.2% in the first quarter of 2007 versus the first quarter of 2006, the
U.S. Census Bureau estimated; e-commerce sales grew 18.4% for the same period (adjusted
for seasonal variation and holiday and trading-day variations).
- Confidence among small-business owners is on the rise according to Discover Financial
Services LLC's Small Business Watch: In July, 41% of respondents said their business conditions
are improving, up from 34% in June.
- Spending on back-to-school merchandise is likely to reach $18.4 billion this year, a survey
conducted by BIGresearch on behalf of the National Retail Federation indicated. Families
of school-age children are expected to spend an average of $563.49, up 6.9% from the 2006
average of $527.08.
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