Discover Network, the credit card payments network of Discover Financial Services (DFS) has agreed with InteliSpend Prepaid Solutions, whereby the latter will issue and manage its prepaid cards on the Discover network.
InteliSpend Prepaid Solutions, an independent entity within Maritz Holdings, Inc. is an issuer and reseller of prepaid products of American Express Company (AXP) and Discover branded prepaid products and a program manager for MasterCard Incorporated (MA) and Visa Inc. (V).
The agreement between the companies entails issuance of point-based, commissionable RAN prepaid cards across the Discover network.
Discover will have a license for InteliSpend’s patented DirectSpend RAN (restricted authorization network) process while InteliSpend will process, issue and fulfill orders, take on risk and provide client and customer service support for Discover clients.
The agreement, on one hand will help Discover to add value to its customers in the prepaid market and on the other will augment its ability to offer its partners prepaid cards devised to meet business-to-business incentive needs.
Also, the agreement will enable InteliSpend to offers its customers a wide range to choose incentive solutions or purchasing prepaid cards at point-of-sale.
Discover Financial reported its fiscal fourth quarter earnings of 64 cents per share, well ahead of the Zacks Consensus Estimate of 42 cents. The improvement was due to significant improvements in the credit quality, as well as gains from the payments business driven by strong volumes. However, these were partially offset by higher-than-expected expenses.
The Zacks Consensus Estimate for fiscal first-quarter 2011 is 48 cents per share. For full fiscal years 2011 and 2012, the Zacks Consensus Estimates are, respectively, $1.98 per share and $2.17 per share.
The quantitative Zacks #2 Rank (short term Buy rating) for the company indicates upward pressure on the stock over the near term.
Based in Riverwoods, Illinois, Discover Financial Services is a credit card issuing and an electronic payment services company in the United States. The company offers credit cards, personal and student loans and deposit products.
AMER EXPRESS CO (AXP): Free Stock Analysis Report
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MASTERCARD INC (MA): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
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