The Green Sheet Online Edition
March 14, 2011 • Issue 11:03:01
Hypercom shareholders give thumbs up to VeriFone
Hypercom Corp. shareholders approved the merger with VeriFone Systems Inc. The deal is expected to close in the second half of 2011, pending regulatory approval. The proposed merger, disclosed in November 2010, was approved by more than 99 percent of the shares voted, which accounted for approximately 80 percent of shares outstanding. VeriFone is buying its competitor in the POS equipment market in a stock transaction valued at $485 million. The merger positions VeriFone to dominate international markets for POS terminals and systems. In a Jan. 12, 2011, filing, VeriFone stated the company's intention to sell off Hypercom's U.S. business, perhaps to avoid federal objections on an anti-trust basis. The company said Hypercom could enable VeriFone to expand its business in Europe, where VeriFone has had less success than elsewhere.
Heartland turns it around, Elefant honored
Revenue at Heartland Payment Systems Inc. rose 5.1 percent year over year to $110.5 million during the quarter ended Dec. 31, 2010. The company reversed its loss in the prior year's quarter of $9.4 million, or 26 cents a share, when Heartland was still paying sizable settlements related to fraud from a 2008 data breach. Even after $632,000 in expenses related to the breach in the most recent quarter, Heartland posted a profit of $6.85 million, or 17 cents a share. For the full year, profit totaled $34.9 million, versus a loss of $50.7 million a year ago.
Small and midsize merchant transaction processing volume of $15.7 million was up 6.8 percent from a year ago. Same-store sales grew at the fastest rate in over three years, according to the company.
In other company news, Steve Elefant, Chief Information Officer at Heartland, was named a 2011 Premier 100 Information Technology Leader by IDG Computerworld. The Premier 100 spotlights leaders for their innovative ideas and effectively managed information technology strategies. Elefant joined Heartland in 2008. He was instrumental in the management and development of the company's E3 encryption technology. Heartland launched E3 in May 2010. Since then, it has been adopted by 11,000 retailers and business owners. Heartland Chairman and Chief Executive Officer Robert O. Carr stated, "We congratulate him for these accomplishments and this well-deserved recognition."
CardinalCommerce scores another patent
CardinalCommerce was awarded a patent for its method of extending a payment system's architecture to mobile applications via text messaging. It is the company's eighth patent issued by the U.S. Patent and Trademark Office.
ChargeSmart moves to larger offices
Alternative payment provider ChargeSmart Inc. relocated to larger headquarters in San Francisco. The company reported that within the last year, it increased transaction volume over 400 percent and now serves 300,000 clients in the United States.
Clearent's ISO business grows
Missouri-based Clearent LLC indicated its merchant account processing business experienced triple-digit growth in 2010. In the fourth quarter, seven new ISOs and six financial institutions (FIs) signed with Clearent for account processing.
Fiserv debit network sees record growth
Fiserv Inc. said its Accel/Exchange debit payment network experienced record-setting growth in total transactions in 2010. POS transactions grew nearly 30 percent, to more than 1.15 billion, while ATM transactions increased by 22 percent, to 82 million. More than 300 FIs joined the network in 2010, bringing total FI membership to about 2,800.
Itautec enters U.S. ATM market
Itautec, a Brazilian electronics manufacturer specializing in ATMs, entered the U.S. market. The company began selling its Adattis ATMs, cash dispensers and kiosks to credit unions and banks. Itautec (pronounced ē-tau-tek) has 6,000 employees worldwide and opened its U.S. headquarters in Doral, Fla.
Mutual of Omaha adopts FTNI platform
Mutual of Omaha Insurance Co. implemented the ETran ePayment system from Financial Transmission Network Inc. The managed-service platform incorporates Payment Card Industry (PCI) Data Security Standard (DSS) compliant card processing, check scanning and automated clearing house processing.
UBC signs 1,000 trainees
United Bank Card Inc. registered its 1,000th trainee to its Harbortouch training course, which prepares ISOs for its free POS system program. ISO partners can offer merchants a free Harbortouch system with integrated payments.
Utiba expands mobile clearinghouse services
Singapore-based Utiba Pte. - whose platform enables mobile network operators, banks and payment service providers to provide mobile payment services to customers - launched an initiative to create a large-scale, international mobile-to-mobile remittance clearing house. Its services include corridor routing, transaction settlement and foreign currency exchange. Utiba's U:Hub platform currently handles over $100 million in transactions per month.
VeriFone takes PAYware Mobile global
VeriFone launched a second generation of its PAYware Mobile Service and expanded it to new markets. The gateway service begins this quarter in the U.K. and Canada. Countries in Europe, Latin America and Asia will be added throughout 2011. PAYware Mobile allows small businesses to accept smart cards and contactless payments, as well as mag-stripe cards.
Provider and developer team up to benefit FIs in fraud
Payment systems provider ACI Worldwide Inc. and monitoring-system developer Integrated Research Ltd. launched Prognosis for ACI Proactive Risk Manager. The system assists FIs in monitoring their fraud systems in real time.
ISO Banctek signs with Cynergy Data
Colorado-based sales office Banctek Solutions signed a new processing alliance with Cynergy Data LLC. Cynergy's reporting system, back-end processing and ability to place high-risk merchants onto its platform reportedly were factors in the choice.
CardinalCommerce selects HomeATM
CardinalCommerce made available to its merchants the Rover POS terminal from HomeATM-AnywhereCommerce. The terminal is certified as a PCI 2.1-compliant PIN entry device. The Rover is offered to merchants using the Cardinal Centinel Universal Merchant Platform.
FIS adopts FICO fraud platform
Fidelity National Information Services Inc. deployed the Falcon Fraud Manager 6 platform from Fair Isaac Corp. The system uses POS device behavior patterns to thwart fraud.
Fifth Third signs six
Six credit unions signed contracts with Fifth Third processing Solutions LLC for electronic funds transfer services, including ATM and card processing, card production, fraud protection, debit marketing, rewards and gateway services. The credit unions are My Credit Union and USE, VAMC Fayetteville Federal, Turtle Creek Federal, Freestone and Montana Educators' credit unions.
First Data offers PIN debit to e-merchants
First Data Corp. is offering its online merchants the PaySecure PIN debit service from Acculynk. The service provides merchants an additional security measure to reduce card-not-present fraud.
MasterCard, Symantec, NagraID develop display card
MasterCard Worldwide, NagraID Security S.A. and Symantec Corp. introduced the MasterCard Display Card in Europe and Asia. The card has strong authentication security features, including generation of one-time passwords, according to the companies.
MetroBank integrates Accertify gateway
Panama-based MetroBank S.A. integrated the Interceptas fraud-prevention platform from Accertify Inc. to help payment processors and merchants in Latin America combat card fraud.
Accertify's payment gateway adds another level of security for transactions over any major payment network.
MnCUN expands relationship with CO-OP Financial
Minnesota Credit Union Network expanded it marketing partnership with CO-OP Financial Services. The credit union now offers all CO-OP products and services.
NewNet and Perceptive Development join forces
NewNet Communication Technologies LLC and Perceptive Development Inc. demonstrated their secure mobile payment system at the GSMA Mobile World Congress in Spain in February 2011. The collaboration marries Perceptive's FlexTransact mobile payment software services with NewNet's payment processing platforms, which deploy derived unique key payment transaction encryption.
Panini and Cachet build RDC system for the Mac
Remote deposit capture (RDC) specialists Panini and Cachet Financial Solutions teamed to offer RDC capability to small businesses using Apple Inc. Macintosh computers. The partnership's RDC Select system reportedly offers native support in a Mac environment.
PTC implements check acceptance from FTNI
Paperless Transaction Corp. adopted ETran RDC check acceptance services from FTNI. ETran's hosted service capability and ability to be bank agnostic were factors in the selection of FTNI, according to PTC.
PayDQ implements MasterCard RPPS
PayDQ adopted MasterCard's Remote Payment and Presentment System. RPPS allows PayDQ clients to settle bill payments electronically through PayDQ's EZPost platform, rather than waiting for paper checks to arrive and be processed.
TMG signs four CUs for processing
The Members Group added a new credit union client and renewed partnerships with another three. Patriot Federal Credit Union signed on for processing its debit, PIN and ATM accounts. Re-upping with TMG are United Nations Federal, Honda Federal and Orlando Federal credit unions.
VeriFone provides NFC to Garanti Bank
VeriFone provided 10,000 near field communication (NFC) contactless payment acceptance systems to Garanti Bank for merchants in Turkey. The commercial rollout of Garanti's integrated NFC SIM mobile payments program involves Turkish mobile network operator Avea.
Neovia acquires Optimal Payments
Neovia Financial PLC completed the acquisition of Optimal Payments, a payment processor based in Montreal, Canada. The deal was announced Jan. 20, 2011. Neovia reportedly intends to change its name to Optimal Payments PLC. Optimal founder and CEO Joel Leonoff was appointed Executive Director of the combined company.
Sage buys fifth merchant portfolio in a year
Sage Payment Solutions, the payment division of Sage North America, acquired a small portfolio of merchant customers processing on third-party platforms from Heartland. It is Sage's fifth merchant portfolio acquisition in the past year.
AFCE elects two to board of regents
Two prominent certified fraud examiners were elected to the board of regents of the Association of Certified Fraud Examiners.
Johnnie R. Bejarano and E. Wendell Hopewell join other board members in setting membership standards. Bejarano, a senior financial analyst, is area Chair of Accounting and Finance at the Denver, Colo. campus of the University of Phoenix School of Business. Hopewell is Managing Director of Forensic Professionals LLC.
First Data announces new team leaderhip
Following a reorganization, First Data assembled a new leadership team for North America. The integration of business operations and management in North America reportedly better positions the company amid regulatory changes and other developments transforming the industry. Nine Senior Vice Presidents report directly to North America President Ed Labry:
- Vickie Brown, Wal-Mart Stores Inc. Partnership Management
- Jim Contardi, Product Solutions
- Kelley Everetts, Client Care and Implementation Support
- Kim Fitzsimmons, Merchant Services and Community Banks
- Mark Herrington, Global Product Management and Innovation
- Matt Kardell, National Clients and Alliances
- Pete Korpady, Global Network Management
- Barry McCarthy, Strategic Clients and Alliances
- Stan Wilson, Business Development.
In First Data's Global Product Management and Innovation organization, the following executives now lead the following product areas: Kevin Barry, Network Solutions; Steve Boehm, Issuing Solutions; Bruce Dragt, POS Solutions; Jeff Johnson, Prepaid Solutions; Dom Morea, Advanced Solutions and Innovation; and Silvio Tavares, Information and Analytics Services.
SignaPay appoints Jones
SignaPay LLC hired Kevin G. Jones to assume the role of President, a title previously held by Founder and CEO John Martillo. Jones had been Vice President for Sales and Marketing at First American Payment Systems LP.
PAY.ON's Kuzelj departs
Following the departure of Chief Sales Officer and cofounder Robert Kuzelj, Germany-based PAY.ON AG appointed Chief Operating Officer Nikolaus von Tayson to also lead sales.
Kuzelj was also a member of the board. He retains his shares and will remain closely related to the company as a sales partner and expert in global payments technology.
ViVOtech beefs up leadership team
NFC systems leader ViVOtech hired six senior Silicon Valley and European technology executives. They include:
- Lance Nakamura, Vice President of Systems Engineering and Development, who was Vice President of Product Development at Semtek, Chief Technology Officer at WAY Systems Inc., and Chief Architect and Vice President of Hardware and Systems Development at VeriFone.
- Dickey Singh, Vice President of Software Engineering and Development; he had executive engineering roles at Replay Solutions LLC and MarketTools Inc., as well as management positions with SPSS Inc. and Tata Consultancy Services Ltd.
- Dave Kleinberg, Vice President of Software Product Management and Marketing; most recently, he was CEO of startups Opelin Inc. and General Interface, which were acquired. Kleinberg was also cofounder and Executive Vice President at NetObjects Inc. and Director of Product Management at Macromedia Inc.
- Stuart Taylor, Vice President of Systems Product Management and Marketing; previously, he was Vice President at Hypercom and VeriFone.
- Bob Cook, Vice President of Sales, Financial Markets; he held several senior management positions at VeriFone, including corporate officer with profit-and-loss responsibility and Vice President and General Manager of several divisions and channels.
- Steve Hine, Vice President of Sales, EMEA; Hine was Head of Service Sales at Wincor Nixdorf in the U.K., Sales and Marketing Director at Ingenico, and Vice President of Sales at ACI Worldwide.
- According to the National Retail Federation's 2011 Tax Returns Consumer Intentions and Actions Survey, conducted by BIGresearch, 13.2 percent of Americans will spend their refunds on big-ticket items this year, up from 12.5 percent in 2010.
- Nissan North America Inc. reported record February 2011 U.S. sales of 92,370 units versus 70,189 units a year earlier, an increase of 31.6 percent. Nissan Division sales were up 31.8 percent for the month and also set a new February record. Sales of Infiniti vehicles rose 29.9 percent over the prior year.
- General Mills expects its global cereal sales to grow by $1 billion to $4.8 billion through 2015, according to a company statement. Through Cereal Partners Worldwide, a joint venture with Nestl€, the company operates in 130 countries beyond the United States and Canada.
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