AMEX

American Express is giving people the opportunity to put their own creative spin on the Company’s advertisement with a chance to win a trip for two to New York and to have their ad featured in its ad campaign. Online, users can interact with a unique Facebook(R) application to design their ad and then share their masterpiece at www.facebook.com/americanexpresscanada until November 15 or in person using a digital canvas to create an ad at different locations around Toronto.

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First Data and VeriFone Launch DSS

First Data and VeriFone have partnered to release the VeriFone edition of the First Data “TransArmor” solution to U.S. multi-lane and petroleum merchants. With this, businesses using VeriFone’s “MX 800” series of devices, “Secure PumpPay” and the “Ruby” POS can implement complete securit on VeriFone’s “VeriShield” encryption tokenization technology from RSA. The “TransArmor” VeriFone edition protects consumer payment card data ‘in- flight’ from the moment it enters the merchant environment, utilizing VeriFone’s hardware fortified and format preserving encryption technology, allowing merchants to exceed existing industry guidelines and requirements for end-to-end encryption and tokenization of payment card data. Production will be available in 1H/11 and will be the only end- to-end encryption and tokenization solution available to First Data’s merchants using VeriFone’s multi-lane and petroleum platforms. VeriFone will certify its entire terminal line to enable First Data’s TransArmor payment security solution, including those sold to level 4 merchants, supporting First Data’s goal of making the TransArmor solution truly hardware agnostic.

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Regulatory Uncertainty, Profits Felt Across Industry

With the Justice Department having filed suit against Visa, MasterCard and American Express, accusing them of violating antitrust laws, Visa and MasterCard agreed to settle and let merchants offer discounts to consumers with cheaper types of payment cards. American Express, with the most to lose with their higher fee cards has “no intentions” of settling with the DOJ, however. The settlement will require the associations to modify its rules to more specifically conform to its business practices after a two-year investigation of their acceptance rules and practices. With this, all ten State Attorneys General who had requested information or opened investigations of MasterCard’s merchant acceptance business practices have closed their investigations while Visa will let U.S. merchants offer discounts or other incentives to steer customers to a particular form of payment and plans to change its relevant rules. The settlement agreement does not address Visa’s rule prohibiting U.S. merchants from surcharging consumers. The Department of Justice claims that the credit card processors’ practice of preventing merchants from giving discounts to customers who use smaller fee cards is an anti-competitive manoeuvre. According to the NRF, Interchange fees totaled $48 billion in 2008, three times the amount collected when NRF began tracking them in 2001, and are hidden from most consumers because they are not disclosed on monthly statements. Meanwhile, despite this increased regulation, Capital One 3Q/10 net income hit $803 million compared with net income of $394 million last year, thanks mostly yo a decline in U.S. credit-card delinquencies (Cardflash Library 10/05/2010)

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Visa Inc Uncertain Under Durbin, Income Up 51% Y/Y

For the 3Q/10 Visa Inc posted net income of $774 million, up 51% on the
3Q/09, while revenue was up 13% to $2.12 billion, compared with the
projected $2.09 billion forecast. Meanwhile earnings were 96 cents per
share compared with projections of 95 cents. With this, Visa is
expecting earnings per share growth of 20% in 2010. Uncertainty
regarding federal regulations restricting the fees that merchants pay
for debit transaction processing is weighing on performance, for which
Visa has prepared different strategies for dealing with the law. The
Company expects impact on no more than 20% of overall revenue. On an
adjusted basis, net income for the quarter was $695 million, an increase
of 35% over the prior year. Diluted class A common stock earnings per
share were $0.95, an increase of 38% over the prior year.

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MoneyGram Sees Money Transfers up 9% Y/Y

MoneyGram International posted 3Q/10 money transfer transaction volume up 9% thanks in part to a 16% growth in non-U.S. sends in the current quarter versus prior year and global agent locations up 11% compared to the year ago period to 207,000. With this, total revenue was down 4% from the year ago period to $292.9 million, but up on the $283.6 million posted in 2Q/10. This was thanks in part to total fee and other revenue having declined 2% to $288.5 million from $294.9 in the year ago period. Money transfer transactions originating outside of the United States increased 16% over the prior year while bill payment transaction volume increased 1%, while fee and other revenue decreased 6 percent to $31.2 million from $33.1 million in 3Q/09. Meanwhile, Net income was $10.0 million and EBITDA was $57.3 million. Influencing this quarterly performance was a long-term sponsorship agreement with the International Cricket Council (ICC), providing MoneyGram a presence at all the major ICC cricket tournaments around the world during 2011-2015; having teamed with Univision to become a reload partner; having renewed a multi-year contract extension with the United Kingdom Post Office (UKPO) to continue providing MoneyGram money transfer services; and a global alliance with Ceridian Stored Value Solutions.

MONEYGRAM REVENUE
1Q/08: $102.4 million
2Q/08: $143.7 million
3Q/08: $148.8 million
4Q/08: $193.6 million
1Q/09: $160.9 million
2Q/09: $291.2 million
3Q/09: $304.5 million
4Q/09: $296.4 million
1Q/10: $288.9 million
2Q/10: $283.6 million
3Q/10: $292.9 million
Source: CardData (www.carddata.com)

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Research Shows NCR Top ATM Brass

RBR research and intelligence firm has concluded NCR holds the #1 market share position for the consecutive 24th year. In its “Global ATM Market and Forecasts to 2015” report, RBR confirms NCR as the largest ATM supplier with an installed base market share of 29.5% across North America, Europe, the Middle East, Africa and Asia. The total number of ATMs topped the two million mark for the first time in 2009, with 2,089,524 deployed worldwide. In comparison, only 284,000 ATMs existed 20 years earlier in 1989. The installed base of ATMs continued to grow in the mid- to high- single digits or more in all regions through 2008 and 2009, despite the pervasive market disruptions and challenges encountered by financial institutions in this period.

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GEMALTO EZIO

Gemalto digital security and Consultoría International Banco (CI Banco) have unveiled the “Gemalto Ezio” strong authentication server and One-time Password (OTP) tokens to enhance eBanking security for CI Banco’s customers. The Gemalto strong authentication solution combines OTP tokens customized for CI Banco with the software platform to create a time-based challenge-response mechanism. This added layer of security ensures the authenticity of the Internet banking session and provides an enhanced level of protection for users when accessing their accounts or performing online transactions. The “Ezio” platform supports multiple authentication methods and allows CI Banco to strengthen its customer offer with options to expand to other types of authentication devices, including EMV payment cards, connected readers or mobile phones.

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LifeLock Warns of Skimming Scrooges

With 66% of consumers feeling at risk for identity theft, restaurants are a hotbed of card crime. When a waiter runs a payment card through restaurant machine first and then secondly through a handheld skimming device, capturing the name, card number and expiration date from the magnetic stripe, the victim is left holding the bag. With retail sales projected to reach $447.1 billion for the 2010 holiday season, a 2.3% increase over last year, identity thieves are also putting their skimming devices over the top of the ATM card reader, capturing the information off the magnetic strip of your card before the ATM does. This, according to Lifelock, also indicates paying for fuel at the pump can be dangerous.

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Citi Launches New Payments Unit, Appoints CEO

Citi has introduced its new “Global Enterprise Payments” business unit to develop comprehensive institution-to-consumer and consumer-to-institution payments solutions for the world’s largest global corporations and financial institutions. This significant growth opportunity for Citi called for a new CEO, for which they found Paul Galant. To serve as CEO and leverage Citi’s industry leading services from its Global Transaction Services (GTS) and Citi Cards businesses, Paul will leverage the Bank’s wholesale and retail payment capabilities. Bringing with him a deep knowledge of both institutional and consumer payments, Paul was the CEO of Citi Cards where he led the NA Branded Cards and International Cards businesses through a period of massive industry and regulatory change and enhanced its innovation pipeline and prepared the business for future growth. He was also CEO of the Global Transaction Services business.

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Paybyweb to Distribute for WAY Systems

Paybyweb Merchant Accounts, credit card terminals, and payment processing has been selected by WAY Systems mobile POS solutions to distribute the “MTT-1510” mobile/wireless credit card terminal. Paybyweb has taken 100% of the MTT-1510 inventory for resale, which represents the highest number of terminals WAY Systems has ever sold. WAY Systems has designed, developed, tested and delivered end to end payment solutions for mobile merchants all over the world, allowing merchants to conduct business any time anywhere and increase their revenue by accepting credit and pin based debit cards.

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BOKU & AT&T Offer Direct Billing mPayment

BOKU mpayments has partnerd with AT&T to launch a direct mobile payment connection trial. Offering customers a direct carrier-billing solution for online goods and services using their existing wireless service account, the trial allows AT&T’s wireless customers to pay for virtual goods and online content from participating merchants using the BOKU mobile payments service from their wireless handset. Customers can make online purchases by entering their mobile number and charging directly to their existing AT&T wireless service account. The connection also enables two-step authorization and capture, transaction processing and the ability to pass refunds back to the customer’s account. BOKU markets their mpayment service to online merchants and publishers on a global scale.

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PAYMENT GATEWAY

Datafast CIA payment processor has switched to Hypercom for its card payment terminals and begun deploying a planned 4,500 “Optimum T4200” countertop and “M4200” mobile payment terminals to its merchant customers. Expected for completion by December, the deployment of the card payment terminals and merchant field services are being provided by MST, one of the authorized distributors of Hypercom products in the Country. Datafast is a significant win for Hypercom demonstrates its competitive advantages and strengthens its footprint in the market.

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