Thursday, January 6, 2011

Global Payments Reports Second Quarter Earnings

Image representing Global Payments as depicted...Image via CrunchBase
ATLANTAJan. 6, 2011 /PRNewswire/ -- Global Payments Inc. (NYSE: GPN) today announced results for its fiscal second quarter ended November 30, 2010.  For the second quarter, revenues grew 8% to $443.5 million compared to $409.0 million in the prior fiscal year.  Normalized diluted earnings per share from continuing operations for the quarter were $0.70 compared to $0.71 in the prior year (See Schedule 2 Normalized Income Statements).    On a GAAP basis, the company reported fiscal 2011 second quarter diluted earnings per share from continuing operations for the quarter of $0.67compared to $0.71 in the prior year (See Schedule 1 for GAAP Income Statements).
Normalized second quarter results exclude pretax expenses consisting of certain start-up and duplicative costs related to the company's Global Service Center in Manila, Philippines and employee termination benefits related to Canada.  (See Schedule 7 for Reconciliation of Normalized and Cash Earnings to GAAP).  
Chairman and CEO Paul R. Garcia stated, "Our performance demonstrates continued execution of our growth strategies in all of our regions.  In aggregate, the businesses performed as we expected during the quarter, with especially strong performance in Asia.  Given our solid performance to date and some benefit from favorable currency exchange rates, we are pleased to increase our organic revenue and earnings expectations for the year.
I am also delighted that we have closed our 'la Caixa' acquisition which will of course generate additional revenues and cash earnings.  Just as importantly, 'la Caixa' provides us a leading market position in Spain from which to drive long term growth."  
David E. Mangum, EVP and CFO, stated, "In an effort to assist investors in reviewing the company's underlying performance, and with the acquisition of 'la Caixa', we are supplementing our financial reporting with earnings per share on a cash basis, which excludes the impact of acquisition-related amortization, special or non-recurring charges, and their related tax effects.  On a cash basis, the company reported fiscal 2011 second quarter diluted earnings per share from continuing operations comparable to the prior year quarter of $0.76." (See Schedule 3 Cash Earnings income statements).
The company expects the "la Caixa" joint venture to add revenue of $25 million to $30 million and to be dilutive to our GAAP and normalized earnings per share by $0.02 to $0.04 for fiscal 2011 and accretive by $0.02 to $0.04 to cash earnings per share.  
For the full year of fiscal 2011, including the addition of the "la Caixa" joint venture, the company now expects revenue of $1,780 million to $1,820 million, or 8% to 11% growth over fiscal 2010, and diluted earnings per share from continuing operations on a cash basis of $2.95 to $3.06, reflecting 5% to 9% growth over fiscal 2010, normalized earnings per share from continuing operations of $2.66 to $2.77, reflecting growth of 5% to 9% and GAAP diluted earnings per share from continuing operations of$2.54 to $2.65 (See Schedule 9 for full details on guidance with and without the impact of "la Caixa").
Conference Call
Global Payments will hold a conference call today, January 6, 2011 at 5:00 p.m. ET to discuss financial results and business highlights.  Callers may access the conference call via the company's Web site at by clicking the "Webcast" button; or callers in North America may dial 1-888-895-3550 and callers outside North America may dial 1-706-758-8809. The pass code is "GPN."  A replay of the call may be accessed through the Global Payments' Web site through January 18, 2011.  
Global Payments Inc. (NYSE: GPN) is a leading provider of electronic transaction processing services for merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United StatesCanadaEurope, and the Asia-Pacific region.  Global Payments, a Fortune 1000 company, offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management.  Visit for more information about the company and its services.
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Visa Advances Cardholder Security Through Improved Fraud Detection

Visa Debit logoImage via Wikipedia
Investments in Visa network enable better fraud modeling, detection of emerging fraud trends; enhancements could identify $1.5 billion in annual global fraud

SAN FRANCISCO, Jan. 6, 2011 /PRNewswire/ -- Visa Inc. (NYSE: V) today announced significant improvements to its security capabilities which will dramatically improve its ability to detect and prevent global electronic payments fraud. Upgrades to Visa's global processing platform – VisaNet – have allowed Visa to develop new fraud models that enhance the speed and accuracy with which Visa detects attempted payment card fraud. An analysis of past global transactions suggests Visa's enhancements could help identify $1.5 billion in fraud, representing a 29 percent performance improvement from 2009 (1). In particular, fraud detection rates on the riskiest transactions improved by 122% over the previous model.

This dramatic increase in fraud identification is the result of an enhancement to the underlying processing platform that powers Visa's Advanced Authorization – an industry-leading security technology that analyzes and scores every Visa transaction for its fraud potential. A new operating system implemented earlier this year allows more information to be analyzed at once and performs more complex processing functions in milliseconds. This provides Visa with a comprehensive view into the global payments system, leading to high levels of intelligence around spending patterns and improving the company's ability to detect and prevent fraud in near real-time.

As a result, Visa and financial institutions that issue electronic payments cards will be able to more finely target different types of fraud – even as they emerge – enabling issuers to better isolate fraudulent transactions from legitimate ones. The global improvements were made on all models evaluating Visa transactions.

"The growth of digital currency has yielded vast benefits to consumers, merchants and entire economies around the world. Continued success requires that every time a consumer uses their Visa card, there's confidence that the purchase will be convenient and secure," said Jim McCarthy, Global Product Executive, Visa Inc. "That's why Visa continues to make investments to make our network among the most secure in the world. Now, these enhancements to our system will enable us to work with issuing financial institutions to deliver on that promise with more speed and reliability than ever before. So cardholders are more secure and merchants see improved throughput – legitimate purchases approved and fraudulent ones declined."

Visa Advanced Authorization risk scores are based on a global view of fraud and spending patterns across the entire Visa network. Because VisaNet processes more electronic card payments globally than other networks, Visa has a unique capability to identify fraud on individual accounts and coordinated attacks on multiple accounts across the system, enabling an issuer to potentially stop fraud at the check-out, before it occurs. Examples of how Visa's investments enhance fraud reduction capabilities:
Visa Advanced Authorization is better able to detect "high speed fraud," where criminals attempt multiple transactions within a very short time period – minutes or even seconds apart. Because Visa's network is not only able to process thousands of transactions per second, but also instantly recall and analyze millions of pieces of information in its memory, Visa is able to identify emerging fraud trends as they happen – not hours or days later.
A new cross-border model takes advantage of Visa's unrivaled global transaction perspective to increase fraud detection for transactions occurring outside a cardholder's home country. By being able to build "models-within-models," Visa is able to better focus on specific transactions types, fraud types and Visa product types. The new modeling capabilities are so powerful that it allows Visa to detect more than three times the amount of fraudulent cross-border fraud than previously identified.

VisaNet is the foundation of Visa Advanced Authorization, providing a modular processing platform that is able to handle more than 20,000 transactions per second and an unprecedented amount of processing memory to track emerging fraud trends as they occur. As Visa processes more transactions, the data helps further enhance the models over time and better identify potential fraud across the entire network.

According to McCarthy, fraud rates within the Visa system remain flat, having fallen to historic low levels: "Visa's continuous investments in the most sophisticated fraud-fighting systems have helped us to stay a step ahead of the criminals."

About Visa Inc.: Visa Inc. is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks—VisaNet—that is capable of handling more than 10,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank, and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: Pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit

(1) Annualized comparison of new model versus previous model at a 25-to-1 false positive ratio.

SOURCE Visa Inc.

Banks Talking About Imposing Annual Fee on Debit Cards

12 cents ain't gonna cut it...expect unexpected fees
From the Columbia Journalism Review:

The Wall Street Journal
 does a good job today on how banks are plotting new fees to get around the clampdown on their old ones, which included abuses like the overdraft racket and interchange-fee gouging that made them tens of billions of super-high-margin money a year.
The biggest eye-raiser here is that the banks are talking about charging an annual fee on your debit card now:

To counter that lost revenue, banks are thinking about imposing annual fees of $25 or $30 on debit cards, according to people familiar with bank strategies. Some also considering limiting the number of debit-card transactions that a customer can make each month, these people said. Another idea circulating in the industry: Limiting the size of a purchase that a customer could make with a debit card. At the same time, reward programs for debit cards are likely to get the ax, these people say.
Axing rewards programs, of course, is perfectly fine. But it’s unclear why limiting the size and number of debit transactions would be a money-saver for the banks. Are they trying to drive people back to paper checks, which cost much more to process?
But imposing annual fees to use a debit card is a different story. Over the last two decades, the banks have intentionally driven their customers toward debit. Initially that was because it cost them much less to process than paper checks. Then they found out theycould gouge retailers and consumers because of the monopoly setup of the payment system.
Here’s how The New York Times last year described how that system came about:
Fees were not an issue when debit cards first gained traction in the 1980s. The small networks that operated automated teller machines, like STAR, Pulse, MAC and NYCE, issued debit cards that required a PIN. MasterCard had its own PIN debit network, called Maestro.

Merchants were not charged a fee for accepting PIN debit cards, and sometimes they even got a small payment because it saved banks the cost of processing a paper check.
That changed after Visa entered the debit market. In the 1990s, Visa promoted a debit card that let consumers access their checking account on the same network that processed its credit cards, which required a signature.
To persuade the banks to issue more of its debit cards, Visa charged merchants for these transactions and passed the money to the issuing banks.

Citi Adds $60 Annual Fee to Many Cards – Watch Your Mailbox

If you have a credit card from Citibank, keep an eye on your mailbox because Citi has recently implemented a $60 annual fee for many of their cards. Citibank – the same too-big-to-fail monstrosity – the same company that accepted taxpayer bailout money and subsequently jacked up interest rates across the board – yeah, that company. Not content with the cash they’ve already wrung from the taxpayers, they have now tacked on this $60 fee to many cards that previously had no annual fee. However, Citi will generously refund the $60 if you spend $2,400 per year on the card. Wow, thanks for nothing, Citi.
Thanks to a reader named Bill for pointing this out to me. Several different cards are apparently affected, including:
  • Citi AT&T Universal Card
  • Citi Diamond Preferred Rewards Mastercard
  • Citi Dividend World Mastercard
  • Citi Dividend AMEX Card
  • Citi Drivers Edge Card
  • Citi Home Rebate Mastercard
  • Citi mtvU Student Card
  • Citi Platinum Select Mastercard Weekly Credit Card Rate Report

Rates for card categories tracked by are listed below:
Credit Card Averages

Avg. APR
Last week
6 months ago
National Average
Updated: 1-5-2011

Although most banks left interest rates alone over the holiday weekend, Barclays opened the year with two significant rate changes. The bank raised the rates for its U.S. Airways Premier World MasterCard from a range of 15.24 percent to 18.24 percent to a range of 15.99 percent to 24.99 percent. The bank also increased the APR for its upscale Visa Black Card for the first time in a year, bumping the rate up from a flat 13.24 percent to 14.99 percent.
Barclays confirmed the changes, but did not offer a comment.
The credit card rate survey is conducted weekly, using offer data from the leading U.S. card issuers' websites. Introductory offer periods and regular interest rates will vary with applicants' credit quality and issuer risk-based pricing policies.
About is the leading online credit card marketplace connecting consumers with multiple credit card issuers, including a majority of the 10 largest in the United States, based on credit card transaction volume.,, enables consumers to search for, compare and apply for credit cards and offers credit card issuers an online channel to acquire qualified applicants.  

Dynamics’ Card 2.0® Technology – Best of Innovations Winner at 2011 CES – To Power New Citi ThankYou(SM) Prestige 2G Card

Citi Cards announces plans to add the new Citi ThankYou(SM) Prestige 2G Card to its 2G family of credit cards during media-only webcast live from The Mirage at 11:30 a.m. PST

2011 International CES
2011 International CES:Dynamics Inc.

LAS VEGAS--(BUSINESS WIRE)--Citi and Dynamics Inc. announced today their plans for Dynamics’ Card 2.0® technology - the 2011 International Consumer Electronics Show (CES) Best of Innovations Winner for Personal Electronics – to power a new Citi credit card, the Citi ThankYou(SM) Prestige 2G Card, which Citi intends to pilot later this year. The Citi ThankYou Prestige 2G Card is part of the new Citi ThankYou credit card suite that Citi is launching this week.
“In order to deliver a groundbreaking consumer experience at the point of sale, an unprecedented level of innovation had to occur on Citi's backend processing systems. Dynamics is just getting started and will continue to deliver new innovations that offer unprecedented value across the entire ecosystem.”
Citi, a leading innovator in cards and payment technologies, is currently conducting a pilot of the Dynamics’ Card 2.0® technology with a selected group of its existing customers. The Citi ThankYou Prestige 2G Card pilot card will feature two buttons on the front of the card that allows customers a new way to redeem reward points with the push of a button at the time of checkout. The cardmember has two options with the new Citi 2G cards: if they select the button "Regular Credit," they can pay for their purchase with credit as they normally would, or they can select the "Request Rewards" button that would allow them to request to redeem points or cash rewards with a simple swipe of the card. When the cardholder presses one of the buttons, the card is activated, and the corresponding light will turn on to confirm the option selected.
"We congratulate Dynamics on the significant recognition of winning ‘Best of Innovations’ at the 2011 International Consumer Electronics Show," said Terry O'Neil, Executive Vice President of Citi's North America Credit Card division. "It is a terrific accomplishment, the first time a payments technology has received this coveted consumer award. We’re also excited that Citi is the first issuer to offer this award-winning technology that delivers greater choice and flexibility at the point-of-sale to our customers and reflects our continued investment in our cardmembers and the customer experience."
"The Best of Innovations win at CES is Citi's achievement as much as it is Dynamics," said Jeff Mullen, CEO of Dynamics. "In order to deliver a groundbreaking consumer experience at the point of sale, an unprecedented level of innovation had to occur on Citi's backend processing systems. Dynamics is just getting started and will continue to deliver new innovations that offer unprecedented value across the entire ecosystem."
Media can learn more about the Citi and Dynamics consumer pilot and Citi ThankYou Prestige 2G Card today during a live media-only webcast from CES at 11:30 a.m. PT. Journalists already attending CES can join in-person at The Mirage in Las Vegas. Those not attending CES can still join via webcast. Please RSVP (
Dynamics is exhibiting at CES in the Las Vegas Convention Center, South Hall 2, Ground Level at booth 26133 and will be a featured exhibitor at the CES Tweetup on Friday, Jan. 7, 4 p.m. – 7 p.m. PT at the Las Vegas Hilton. More information on Dynamics, its technology, applications and card images can be found at
For more information on Citi ThankYou Cards, go to To view a video on Citi ThankYou Cards and download b-roll, soundbites from Terry O'Neil or card images, go to
About Dynamics’ Technology
Countless applications can be realized with the Card 2.0® platform technology and are referred to as Payments 2.0® applications. Payments 2.0® applications include:
MultiAccount™: The device includes two buttons on the face of a card. Next to each button is a printed account number and a light source. A user can select an account by pressing one of the buttons. The card visually indicates the selection by turning ON the light source associated with the selected account. Additionally, the magnetic-stripe information associated with the selected account is written to the Electronic Stripe™.
Hidden™: The device includes five buttons on the face of a card and a paper-thin flexible display. The display hides a portion of a cardholder’s payment card number. To turn the device ON, a user must enter a personal unlocking code into the card. If the user enters in the correct unlocking code, the card will then visually display the user’s payment card number so that the user can read the number for online transactions. The Electronic Stripe™ is then populated with the correct magnetic information so that the card can also be used with magnetic stripe readers. After a period of time, the display turns OFF and the Electronic Stripe™ erases itself – thus removing all critical payment information from the surface of the card. If the card is lost or stolen, the card is essentially useless.
Redemption™: The face of the device is printed with a single credit account number and includes two buttons with associated light sources. A user can choose to either use regular credit or request to redeem points at the point of sale by pressing the appropriate button. The card will then visually indicate the selection by turning ON the light source associated with the selected option. The magnetic-stripe information associated with the payment option is then written to the Electronic Stripe™. The card can then be swiped at any magnetic stripe reader.
Dynamic Credit Card™: A unique security code is written to the Electronic Stripe™ every time the card is activated. A display may be added to the card such that a unique security code is also displayed every time the card is used. These displayed and in-stripe security codes eradicate fraud associated with stolen, or “skimmed,” intangible card numbers.
About Dynamics Inc.
Dynamics Inc. was founded and seeded in 2007 by Jeff Mullen, its CEO. Dynamics produces and manufactures intelligent powered cards such as advanced payment cards. Focused on introducing fast-cycle innovation to top card issuers, the company's first commercial application is the world's first fully card-programmable magnetic stripe for use in next-generation payment cards. The company has won many of the world's most prestigious international business plan competitions, including the Rice Business Plan Competition, Carnegie Mellon McGinnis Venture Competition and the University of San Francisco Business Plan Competition. The company recently won DEMOgod and the $1M People's Choice Award at Demo Fall 2010 and Best of Show at FinovateFall 2010. Dynamics is backed by Adams Capital Management and is headquartered in Pittsburgh, Pa., with offices in Silicon Valley and New York City.
About Citi
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at or


for Dynamics Inc.
Victoria Brown, 650-201-8825
Tami McCarthy, 917-604-5596

Gemalto Successfully Deploys OTA Platform and UICC for Verizon Wireless’ 4G LTE Network

LTE Circuit Cards and Platform Allow for Faster Speed, Personalized Services, More Applications and More Security

LAS VEGAS & BASKING RIDGE, N.J.--(BUSINESS WIRE)--From the 2011 International Consumer Electronics Show (CES), Gemalto today announced the successful deployment of its newly integrated over-the-air (OTA) platform and Universal Integrated Circuit Card (UICC) for the Verizon Wireless 4G LTE Mobile Broadband network.
Gemalto, the world leader in digital security, delivered the OTA and UICC for Verizon Wireless’ 38-market LTE network launch, which has already begun delivering 4G speeds to customers. This platform and circuit card will help Verizon Wireless deliver a secure and reliable multimedia data connection, provide global roaming capabilities, and remotely add new UICC applications and services on the 4G LTE wireless broadband network.
This UICC will be used inside mobile devices (initially USB modems for 4G mobile broadband) to manage subscriber information exchange, such as transferring contacts and preferences from one device to another, while at the same time providing secure access to the Verizon Wireless 4G LTE network. Gemalto’s OTA LTE platform, an industry first, will help the wireless leader manage LTE devices on its 4G LTE network, allowing for high-speed, low-latency, personalized services.
The Verizon Wireless 4G LTE Mobile Broadband network, launched in December 2010, is the fastest, most advanced 4G network in the United States, providing speeds up to 10 times faster than Verizon Wireless’ 3G network. Verizon Wireless’ 4G LTE Mobile Broadband network currently reaches one-third of all Americans, with plans to expand the network to the company’s entire 3G coverage area over the next three years.
Gemalto’s OTA and UICC will be highlighted from Jan. 6-9 in Verizon Wireless’ booth (#35216 in the South Hall of the Las Vegas Convention Center) at CES. For more information about the LTE Innovation Center and Verizon Wireless’ 4G LTE network, visit For more information about Verizon Wireless at CES, visit or follow the company on Twitter at
# # #
About Verizon Wireless
Verizon Wireless operates the nation’s fastest and most advanced 4G network and largest and most reliable 3G network, and serves more than 93 million customers. Headquartered in Basking Ridge, N.J., with 80,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications (NYSE, NASDAQ: VZ) and Vodafone (LSE, NASDAQ: VOD). For more information, To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library
About Gemalto
Gemalto (Euronext NL 0000400653 GTO) is the world leader in digital security with 2009 annual revenues of €1.65 billion, and over 10,000 employees operating out of 75 offices, with research and service centers in 41 countries.
Gemalto is at the heart of our evolving digital society. The freedom to communicate, travel, shop, bank, entertain, and work—anytime, anywhere—has become an integral part of what people want and expect, in ways that are convenient, enjoyable and secure.
Gemalto delivers on the growing demands of billions of people worldwide for mobile connectivity, identity and data protection, credit card safety, health and transportation services, e-government and national security. We do this by supplying to governments, wireless operators, banks and enterprises a wide range of secure personal devices, such as subscriber identification modules (SIM), Universal Integrated Circuit Card (UICC) in mobile phones, smart banking cards, smart card access badges, electronic passports, and USB tokens for online identity protection. Moreover Gemalto delivers on emerging applications related to the ‘Internet of things’ by supplying wireless modules and machine identification modules (MIM) for machine-to-machine communication. To complete these solutions we also provide software, systems and services to help our customers achieve their goals.
As the use of Gemalto’s software and secure devices increases with the number of people interacting in the digital and wireless world, the company is poised to thrive over the coming years.
For more information please visit


Verizon Wireless
Debra Lewis, 908-559-7512
Jessi Marshall, 512-257-3902

Mobile Payments - A Battle of Giants in a Fragmented Market

DUBLIN--(BUSINESS WIRE)--Research and Markets has announced the addition of the "Mobile Payments - A Battle of Giants in a Fragmented Market" report to their offering.

This study spotlights the mobile payment market, provides details about the related services and their technological aspects, analyses the usages and the industrial structure with a drawn of the value chain. The report makes an in-depth look in examining several business models - for NFC, SMS, Fixed/mobile wallet & App Stores - their impacts and upcoming opportunities.
Key questions
  • What are the different mobile payment services and which technologies are being used?
  • Who is using M-payment and how do they use it?
  • How are this emerging market and its value chain structured?
  • What are the existing business models and who is the furthest along with their deployments?
  • What are the market's key figures and what are the main forces driving development?
  • What does the competition landscape look like?
  • What sustainable opportunities are available to the different kind of players?
Key Topics Covered:
  • 1. Executive Summary
  • 2. Introduction
  • 3. Market structure and key factors
  • 4. Organisation & Industrial Strategy
  • 5. Strategic analysis
  • Tables
  • Figures
Companies Mentioned:
  • Amazon Mobile Payments
  • American Express
  • Apple
  • BarclayCard
  • Billing revolution
  • Boku
  • Carrefour
  • Deutsche Telekom
  • Facebook
  • Gemalto
  • Google
  • McDonald
  • MoBeePay
  • NFC
  • Nokia
  • NTT docomo
  • Obopay
  • Orange
  • PayPal
  • PTC
  • Sprint
  • Starbucks
  • Subway
  • Telecom Italia
  • Telefonica
  • Venmo
  • Verifone
  • Visa
  • Zong


Research and Markets
Laura Wood, Senior Manager
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

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