Mintel Survey Shows ID Theft a Growing Concern

A new survey from Mintel reveals an increased concern of identity theft as the economy worsens.
The survey results indicate that 46% of respondents
say they’re more worried about someone stealing funds from their bank accounts or stealing their identities. Identity theft protection is very important to consumers, especially when choosing which banks to do business with. Nine in 10 people told Mintel that protection against identity theft and illegal account access was very or somewhat important to them when selecting a bank. Among small business owners, 42% rank identity theft protection as one of the top three factors they’d consider when obtaining a new business credit or debit card.

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Chase Disney Rewards Portfolio Adds Debit Card

Chase Disney Rewards Visa Cards has added the “Disney Rewards” Visa
Debit Card to its portfolio, giving Chase checking account customers
access to valuable Disney perks and rewards through the control and
accountability of a debit card for an annual fee of $25. With the new
card, cardmember save on Disney merchandise when they use the card and
enjoy such Theme Park perks as “A Character Meet ‘N’ Greet Photo
Opportunity” at Walt Disney World and Disneyland Resorts with a
complimentary 5×7 photo and 10% off select merchandise purchases of $50
or more at Disney Store locations and resorts. Cardmembers earn points
on qualifying debit card purchases they can redeem for Disney Theme Park
passes, hotel stays, meals, movies, toys, music, books and much more.

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INSIDE & TAZTAG

INSIDE Contactless and TazTag have partnered to develop and bring to
market secured multi-application contactless solutions based on NFC
technology. INSIDE’s third-generation “MicroRead” NFC solution has been
integrated into TazTag’s “TazCard” NFC e-Wallet and open application
platform and the “TazKiosk” interactive NFC urban advertising kiosk.
Essentially a special purpose, Java-based tablet computer about the size
of a credit card, the “TazCard” is capable of supporting a variety of
identity, healthcare, transportation, loyalty, ticketing, payments and
other secure NFC-based applications. With a 3.5-inch color touch screen,
biometric authentication, audio output, data storage and a
tamper-resistant secure element, the “TazCard” offers USB and 6lowPAN
communications in addition to the NFC provided by the MicroRead chip.

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Moneta & Equifax to Launch Credit Decisioning

GA-based alternative payment provider Moneta has entered into an
agreement with Equifax for instant credit decisioning. Moneta currently
offers an easy-to-use online payment method that allows customers to fund
online purchases directly from a bank account, without disclosing their
personal financial information to the merchant. The instant credit feature,
scheduled for release in early 2010, will extend the funding options of
Moneta payments to include the extension of transactional credit for online
purchases, in real-time. Merchants accepting Moneta payments may now offer
a range of bank-sponsored funding options to their customers including
checking, savings, money market and now instant transactional credit lines
underwritten by the sponsoring bank.

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RBS & LML

RBS Citizens Bank has entered into a Settlement and License Agreement in
response to litigation filed by LML Patent in the US District Court for
the Eastern District of Texas alleging the former infringed U.S. Patent
No. RE40220. The Agreement provides RBS with a license to LML’s patents
for electronic check conversion transactions including “ARC”, “WEB”,
“POP”, “TEL” and “BOC” while RBS will pay LML compensation in the amount
of $1,150,000 for releases, licenses, covenants and all other rights
granted under the Agreement. LML was represented in the license
negotiations by the law firm McKool Smith P.C. and is a leading provider
of financial payment processing solutions for e-commerce and traditional
businesses.

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Cardlytics Launches Targeted Promo Solution

Loyalty and reward provider Cardlytics has launched more than 50
national retail merchants across its transactional marketing platform
to deliver targeted promotional offers to consumers through their
online banking statements. Cardlytics’ platform allows banks and retailers to combine resources in targeting consumers using any combination of parameters, including merchants and merchant categories where someone shops, how much they spend, and where they live. Offers are delivered to consumers through their online banking statement, with all customer data held private and secure within each financial institution, thus protecting each user’s personal information and anonymity. The full-service solution targets customers based on debit or credit card transaction data, then tracks the delivery, activation, purchase and fulfillment of retail offers, allowing retailers to directly assess their online advertising’s impact on actual purchases – whether they occur online or in-store. Cardlytics’ multi-channel approach includes online banking, SMS, e-mail, mobile, online-mall and social networks.

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Discover Renews IBM IT Service Agreements

Discover has renewed its IT service with IBM as part of an extended outsourcing agreement. As part of the agreement, IBM will continue providing management and support for some of Discover’s most critical IT operations. IBM will make investments in software, processing, and storage technologies that will result in improved operations, efficiency, reporting and compliance.

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Papa John’s Introduces CashStar E-Cards

Interactive gift card provider CashStar has teamed with pizza delivery chain Papa John’s to offer virtual gift cards.
Papa John’s online gift cards can include a personalized message and be
emailed to the intended recipient, either immediately or at a later
scheduled date. The online gift card arrives via e-mail with a link to
access the gift card and can be redeemed directly online with Papa
John’s convenient online ordering. Papa John’s operates and franchises more than 3,400 delivery and
carryout pizza restaurants worldwide. In conjunction with Papa John’s
digital initiatives for reaching and interacting with customers,
including online and mobile web ordering, the new online gift card
option is available on the company’s website.

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Card Activation Scores 10 Settlements

Chicago-based POS technology provider Card Activation Technologies has made significant progress as it continues to seek
licenses for its patent. During 2009, Card entered into separate Settlement and Non-Exclusive
License Agreements with ten major retailer, restaurant and supermarket
chains including their affiliates. The terms of these Settlement and
Non-Exclusive License Agreements are confidential. On September 9, the
United States District Court for the Northern District of Illinois,
Eastern Division, issued an extremely favorable report and
recommendation to Card on claims construction issues concerning its
patent. On October 13, Card Activation retained Stinson Morrison Hecker
LLP, one of the nation’s largest law firms, to assist Orum and Roth LLP
with the prosecution of the company’s patent infringement lawsuits. On
November 3, Card announced that they would file up to 45 additional
lawsuits against major retailers. Card anticipates filing additional
lawsuits to protect and enforce its patent during 2010.

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Credit Card Performance Should Improve Next Year

With the unemployment rate expected to peak next summer coupled with
the gargantuan attrition in the credit card market during 2009,
delinquency rates will likely start to fall in 2Q/10 and charge-offs
should start to decline in 3Q/10. During the third quarter credit card
delinquency (30+ days) stood at 5.8% while charge-offs averaged 9.4%,
according to CardData. Based on the monthly data released during the
fourth quarter, delinquency is expected to come in at 6.1% and
charge-offs at 10.5%. There is a consensus the unemployment rate will
peak at 10.3% for the second quarter of next year and slowly taper off
during the second half of 2010. Considering that the majority of the bad
credit has left the market, over 100 million accounts have been closed
during the recession and that credit card debt has declined 7.3% this
year, it is likely that delinquency will peak at 6.2% in the first
quarter and charge-offs will peak at 11.1% in the second quarter. Also,
the first quarter historically carries artificially high delinquency and
charge-off ratios following the holiday volume pay down. Nevertheless,
the two metrics will likely begin a very slow downward trend throughout
2010 as the very slow recovery continues. For the latest performance
metrics, including November 2009, visit CardData (www.carddata.com).

U.S. CREDIT CARD METRICS
(Past, Present & Future)
Unemployment Delinquency Charge-Offs
1Q/08: 5.1% 4.1% 5.6%
2Q/08: 5.5% 4.0% 6.0%
3Q/08: 6.1% 4.4% 6.2%
4Q/08: 7.2% 5.2% 6.4%
1Q/09: 8.5% 5.9% 8.7%
2Q/09: 9.5% 5.6% 9.7%
3Q/09: 9.8% 5.8% 9.4%
4Q/09: 10.1% 6.1% 10.5%
1Q/10: 10.2% 6.2% 10.8%
2Q/10: 10.3% 6.0% 11.1%
3Q/10: 10.2% 5.8% 10.9%
4Q/10: 10.1% 5.6% 10.9%
Source: CardData (www.carddata.com)

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FCAC & CARD REGS

New regulations on credit cards and fixed- and variable-rate loans and
lines of credit, will come into force on January 1, 2010 to insure
better communication of information for consumers of financial products
and services offered by federally regulated financial institutions.
Effective January 1, 2010, the legislation will require a summary box
containing all prescribed information to clearly indicate interest
rates, grace periods and fees; a consumer consent on credit limit
increases; no over-the-limit fees due to holds; new federally-regulated
debt collection practices; and in most cases all borrowers on a joint
loan must receive the information documents. The Financial Consumer
Agency of Canada (FCAC), encourages consumers to be familiar with these
regulations and those effective September 1, 2010, which disclose
consumers will no longer pay interest on new purchases for 21 days after
the statement date if you pay your balance in full by the current
month’s due date; institutions have to apply any payments made in excess
of the required minimum to the balance with the highest interest rate
and to other balances in decreasing order of interest rate or on the
relative proportion of each; credit card statements issued by federally
regulated financial institutions must indicate how much time it will
take you to pay the current balance in full if you pay only the required
minimum each month.

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