BluePay Offers Merchant Loans to Small Businesses

In addition to its wide range of payment processing services, BluePay secure credit card processing solutions now offers merchant lending programs and assistance for growing businesses. This lets businesses qualify for merchant cash advances, merchant funding and merchant account lending. The right merchant loan can provide the opportunity for secure, streamlined payment processing and business operations. BluePay’s payment processing services help improve business, as well, with services including e-commerce payment gateways, electronic invoicing, secure credit card equipment, mobile and wireless payment solutions, Level II and Level III processing capabilities, and much more.

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BB&T Expands Cardtronic’s Allpoint Network

Allpoint Network of Cardtronics surcharge-free ATM network inked
multi-year agreement with NC-based BB&T to provide surcharge-free ATM
access in Florida and Texas. With this, BB&T’s Texas and Florida debit
cardholders can access Allpoint’s 40,000 ATMs worldwide. The
surcharge-free ATMs located at a variety of nationally-known retailers
in Florida and Texas are branded with the Allpoint logo. Allpoint
surcharge-free ATM network has over 40,000 ATMs in leading national and
regional merchant locations across the United States, United Kingdom,
and Australia for greater access, convenience, and savings to customers
of financial institutions.

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COINSTAR MONEY TRANSFER

Coinstar Money Transfer has inked agreements with state owned bank of Philippines Land Bank to develop remittances business from Italy. This is another key component of the Coinstar Money Transfer aggressive development strategy in Italy to broaden consumer’s options for a fast and reliable money transfer service aiming to the Filipino community, who will finally be able to send money from any Land Bank branch in Italy at competitive fees.

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Small Businesses on Networking Sites 3X in 3 years

Social networking by small business owners has nearly tripled in the past three years, jumping 23% in the past six months alone, but less than a third of owners are using it to promote their businesses. In polls conducted in April and October of this year, the percentage of small business owners who are members of an online social networking community increased from 48 percent to 59 percent. But only 29 percent of all small businesses said last month that they have ever used social networking websites to promote their businesses. Discover has been surveying U.S. small business owners about the issues that affect them for more than four years through the Small Business Watch. The first poll about social networking was conducted in October 2007, when only 22 percent of small business owners said they were members of a “popular general-interest online community.” In April 2010, the question was rephrased to ask if they were “a member of any online social networking community such as Facebook, Linked-In, MySpace or Twitter,” and 48 percent said they were. By October of this year, the number climbed to 59 percent.

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GuestLogix POS Adds U.S. Regional Airline

GuestLogix airline provider of onboard store technology announced Delta has selected its “OneTouch” onboard retail technology and merchandising platform to enhance onboard service. The “OneTouch” solution will allow its customers flying on regional aircraft to accept credit card payments for products and services sold onboard dual class aircraft as they currently do on mainline flights. GuestLogix provides new opportunities for airlines to grow ancillary revenues by providing payment industry compliant transaction technologies to accept many forms of payment and the merchandising platform to introduce new travel-relevant products and services that help travellers get the most out of their trip.

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MPR Down After Skying in September, Up 4% Y/Y

The monthly payment rate was down for the month of October to 19.23% after hitting a 31 month high of 19.65% in September. This is still a
4% increase from last year and more than 19% higher than the long term historic average of 16.15%. MPR performance slipped 91 bps to 13.47% after having hit
a 2-year low in July. Year-over-year, MPR was up over 1% from 17.77% and is at the second highest level in over a year. This is consistent with seasonal
patterns and driven by seasonal factors as well as fundamental changes in cardholder payment trends. Historically, the MPR sees a lag in the fall months as
the holidays approach, as has been the case since the start of the economic recession. Monthly payment rates have been resilient given the lack of credit
availability because the percentage of cardholders who are charging rather than revolving has not changed significantly. For complete details on current and
historical MPR data, visit CardData.com (www.carddata.com)(CardFlash Library, 2010/11/12).

MONTHLY PAYMENT RATE
Jul 09: 17.12%
Aug 09: 16.96%
Sep 09: 16.59%
Oct 09: 17.77%
Nov 09: 17.66%
Dec 09: 17.23%
Jan 10: 17.15%
Feb 10: 15.95%
Mar 10: 18.79%
Apr 10: 14.61%
May 10: 13.96%
Jun 10: 14.22%
Jul 10: 12.86%
Aug 10: 13.11%
Sep 10: 19.65%
Oct 10: 19.23%
Source: CardData (www.carddata.com)

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SmartMetric Files Patent Infringement Against AmEx

SmartMetric announced that a patent Infringement Lawsuit has been filed against American Express in the
United States District Court, Central District of California. The suit claims Patent Infringement of the
Company’s United States issued Patent No. 6,792,464 regarding
contactless, contact and RFID card systems. Mastercard uses data cards that, when within proximity
to a reader establishes an automatic connection to a network, with which SmartMetric takes issue, claiming
infringement. Resultantly, SmartMetric wants full and comprehensive compensation.

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Overdraft Fees Down 6%, A First in Over 25 Years

For the first time in more than 25 years, the median price of overdraft protection fees has dropped. Having plummeted 6%, from $28 in July 2010 to now stand at $27.50, the average cost of overdraft fees are falling thanks in part to the Federal Reserve having issued regulations requiring banks and credit unions to obtain consent from existing users and all new users for debit card overdrafts and overdrafts at ATMs by August 15 2010, and 75% of consumer checking account holders having given said consent. This, according to research by Moebs $ervices, indicates over 97 million checking account holders want overdraft protection to serve as their safety net. Accordingly, community banks and credit unions lowered the price of their overdraft fees while large Wall Street banks with over $50 billion in assets remained high at a median price of $35 and subsequently lost 2% of the market share. This comes on the heels of research indicating 77% of consumers have not paid an overdraft fee in the previous 12 months and is a revenue stream fast drying up. Thanks mostly to the recently passed CARD Act, only 21% of consumers paid one or more overdraft fees while 2% did not know whether they paid an overdraft fee and 90% of overdraft revenue comes from frequent users. Among the minority who did pay an overdraft fee in the previous 12 months, 69% were thankful the payment was covered while 29% wished the bank had refused the payment. Additionally, overdraft revenue is expected to total no more than $35.4 billion this year, down from $37.1 billion in 2009 and on par with 2008. The hit to OD revenue was felt in 4Q/09, during which $2 billion in revenue was lost when banks and credit unions started to implement their own floors and ceilings on overdrafts in response to Congressional complaints, which was then followed by another $2.3 billion in revenue lost in 1Q/10 thanks to the Opt-In regulation by the Federal Reserve. This cost banks and credit unions about $2 billion in operational costs and training alone for proper implementation (CardFlash Library 2010/09/17).

AVERAGE OVERDRAFT FEES
NOV10 JUL10 JUN09
National $27.50 $28.00 $26.00
East $25.00 $29.00 $25.00
South $29.00 $30.00 $29.00
Midwest $26.50 $27.75 $25.00
West $25.00 $27.00 $25.00
Source: Moeb$; For complete historical data, visit CardData
(www.carddata.com)

OVERDRAFT REVENUE
2011: $38.0 B
2010: $35.4 B
2009: $37.1 B
2008: $35.4 B
2007: $34.1 B
2006: $31.5 B
2005: $29.7 B
Source: Moeb$; For complete historical data, visit CardData
(www.carddata.com)

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FIS Launches mFinancial iPhone App

FIS banking and payments technology has released its newest mobile banking app to allow consumers to set up mobile account management through an iPhone using their debit card. Unlike most mobile financial apps, the entire enrollment process can be completed from start to finish through the customer’s iPhone. While most other financial iPhone apps require the individual to have an online banking account or register online, FIS makes it possible to download the app and register, all from your mobile phone – there is no need to have a personal computer (PC) or an online banking account. In addition, the FIS app can be fully and uniquely branded by each financial institution or prepaid card sponsor so that it is searchable in the App Store. To date, more than 45 institutions have their branded iPhone apps from FIS in the App Store. FIS plans to roll out the same mobile financial service capabilities for the Android platform within the next 30 days in the Android Market.

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MASTERCARD

MasterCard has purchased the prepaid Card Program Management (CPM) operations of Travelex for $458 million in cash, with an earn-out of up to an additional US $55 million if certain performance targets are met. The transaction is expected to close in the first half of 2011. MasterCard is acquiring the Travelex operations that manage and deliver consumer and corporate prepaid travel cards to business partners around the world, including financial institutions, retailers, travel agents and foreign exchange bureaus. These operations also manage cross-border payroll, per-diem and expense-management prepaid cards for corporations. MasterCard has no plans to issue cards directly as a result of this transaction. The deal is an extension of a strong and long-term partnership between MasterCard and Travelex. Last year, the two companies expanded their relationship by agreeing to convert the majority of Travelex card programs to the MasterCard brand and by implementing the global prepaid transaction-processing capabilities of MasterCard Integrated Processing Solutions™ (IPS). MasterCard IPS provides financial institutions world-class debit and prepaid processing solutions that are scalable, reliable, secure and flexible.

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Americans Cut $170B Revolving Credit Since 3Q/08

Consumer credit continued its decline as Americans cut another $4.5
billion off October, bringing the year-to-date total reduction to $200
billion. Posting its 26th consecutive monthly decline, U.S. consumer
revolving credit remained well below $900 billion in October and was
down 8.5% since the year ago period. This is compared to the September
figure when revolving credit outstanding was down 13% since the previous
year to $806.1 billion and the year ago figure when revolving credit was
down 12.4% to $865.8 billion. Since peaking at a revised $975.2 billion
in the third quarter of 2008, Americans have chopped-off more than
$170 billion in revolving credit to-date. According to new and revised
data released by the Federal Reserve, revolving credit declined at an
annual rate of 9.3% in October, following a revised 10.5% decline in
September and a 10.6% drop in August. In September revolving credit
declined to a revised $806.1 billion and to a revised $810.0 billion in
August. March 2009 posted the largest contraction over the past 24
months, dropping more than $14 billion(CardFlash Library, 2010/12/08).

REVOLVING CREDIT HISTORICAL ($billions)
Commercial banks 362.4 598.6
Finance companies 46.4 67.7
Credit unions 35.4 35.3
Savings institutions 38.1 45.5
Nonfinancial business 8.8 8.4
Pools of securitized assets 6,7 402.8 46.2
Source: Federal Reserve; revised figures as of 12/7/09;
For complete historical data, visit CardData (www.carddata.com)

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ONETOUCH

GuestLogix airline provider of onboard store technology announced Delta has selected its “OneTouch” onboard retail technology and merchandising platform to enhance onboard service. The “OneTouch” solution will allow its customers flying on regional aircraft to accept credit card payments for products and services sold onboard dual class aircraft as they currently do on mainline flights. GuestLogix provides new opportunities for airlines to grow ancillary revenues by providing payment industry compliant transaction technologies to accept many forms of payment and the merchandising platform to introduce new travel-relevant products and services that help travellers get the most out of their trip.

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