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Table of Contents

Lead Story

Fraud busting, electronic style


Industry Update

Prepaid players join for expansion

Revenues up in downturn

Cash advance leaders advance

What a time it was: ETA 2008

New interchange rates for MasterCard and Visa, effective April 2008


George Massey

Another 100 years of cash?

Mike Lee
ATM Industry Association

Breaches across America


Welcome to the wireless mainstream

Tim McWeeney
WAY Systems Inc.


Street SmartsSM:
ETA wants you, too

Jason Felts
Advanced Merchant Services

No foundation, no success

Jeff Fortney
Clearent LLC

Merchant security is your business

Adam Atlas
Attorney at Law

Employee retention begins day one

Curt Hensley
CSH Consulting

Preparation power

Daniel Wadleigh
Marketing Consultant

Company Profile

BCC Merchant Solutions

New Products

Optimize revenue, minimize fraud

Vindicia ChargeGuard
Vindicia Inc.

Security stamped on hardware, software

Apriva Certified Secure Program
Company: Apriva


Face off to boost sales





Resource Guide


A Bigger Thing

The Green Sheet Online Edition

May 12, 2008  •  Issue 08:05:01

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Revenues up in downturn

The payments industry has taken a beating lately in the media. Today's ISOs and merchant level salespeople (MLSs) must deal with regulatory legislation, security breaches, fraud, myriad new products and services, unprecedented scrutiny - the list seems endless.

Strong growth

Regardless of recent media attention, the payments industry is healthy. Net earnings for fiscal year 2007 and the first quarter of 2008 were up overall despite higher credit card costs, market fluctuations and a deepening economic downturn.

CO-OP Financial Services, which operates the largest automated teller network serving credit unions exclusively, saw a 10 percent increase in cash distribution to its shareholders totaling $24.5 million for 2007. "Our electronic funds transfer services, strategic partnerships and growing membership play a significant role in allowing us to achieve astounding transaction figures," said Stan Hollen, CO-OP Financial's President and Chief Executive Officer.

Alpha Card Services Inc., a Pennsylvania-based processor and merchant acquirer, adds about 4,000 merchants a year and saw revenues approaching $2 million for the first quarter of 2008, nearly half of the amount of revenue the company earned for all of 2007.

"From 2004 to 2006 we had 1,540 percent growth," said Lazaros Kalemis, Alpha's CEO. Kalemis is confident about overall industry growth, but he sees a sound infrastructure as a major key to success. "I think it depends on how somebody is set up," Kalemis said. "We're a conservative company but we're growing at a good clip, and our growth is high due to our attrition rate which, at 4.5 percent, is about 12 percent below the industry average."

Healthy diagnosis

First quarter 2008 numbers for some of the larger acquirers and card brands include:

As always, the payments industry is going through a metamorphosis; new markets, technologies and revenue growth opportunities for ISOs and MLSs continue to evolve.

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 | Simpay | USAePay | Impact Paysystems | Board Studios