More Thrust Added to British Airways Visa

British Airways and Chase Card Services have joined forces to ramp up the rewards program for the “British Airways Visa
Signature” card that include a 25% increase in the number of BA miles earned and new cardmembers will
receive a bonus 100,000 BA Miles. The new enhanced benefits of the “British Airways Visa Signature” Card
include an improved earn rate of 1.25 BA miles for every $1 spent and 2.5
BA Miles for every $1 spent on British Airways travel and vacation packages, an
increase of 25% from the previous offer; a companion redemption voucher reward when
cardmembers spend $30,000 a year. Cardmembers redeeming BA Miles for a British
Airways flight in any cabin class will receive a flight for a companion in the same
class; a bonus 100,000 BA Miles for existing US British Airways
Executive Club members and new card holders approved for the card. Cardmembers receive
50,000 BA Miles after their first purchase, and they receive another 50,000 miles
after they spend at least $2,000 in the first three months. New cardholders automatically become a member of the British Airways
Executive Club and can earn more BA Miles through partners such as Avis,
Marriott, Hilton and E-stores and by taking advantage of great offers from
British Airways and oneworld alliance partners such as AmericanAirlines.

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VISA ALERTS

Visa announced the roll-out of transaction alerts, which allow issuers to provide near real-time alerts to Visa account holders throughout the U.S. and Canada. Alerts are sent on behalf of participating issuers directly from VisaNet within seconds of a transaction occurring. Alerts are triggered when the transaction meets certain criteria the account holder has selected and are delivered directly to the account holder via email, SMS text message or the “Visa Mobile” application. The alert message sent to account holders contains the amount, time and date of the transaction, as well as information relating to the merchant, such as name and location. If the transaction appears to be irregular, the account holder can immediately contact their issuer to help stop further transactions on the account. Over the last 12 months, Visa piloted transaction alerts with eight leading North American financial institutions and more than 2,000 participants.

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CARTA DI ATENEO

Banca Popolare di Sondrio and Oberthur Technologies have teamed to launch the European Union’s first prepaid Visa contactless card. The “Carta di Ateneo” is a dual interface payment card that combines Visa-certified contactless and EMV payment as well as access
control and personal identification features. Issued in conjunction with KCCS Key Client Card and Solutions, the card will be used by students and faculty employees of two Milanese learning institutions, the Politecnico di Milano and the University of Milan Bicocca. Cardholders can make contactless purchases of up to 15 euros, simply by
passing the card in front of a contactless terminal. For larger
purchases, the card’s EMV interface is used with either the cardholder’s
PIN or signature. More than 300 merchants within the vicinity of the
university campuses will provide contactless point of sales terminals to
accept the card.

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ABNOTE & MASTERCARD

ABnote Europe secure data and services has received the Card Quality
Management (CQM) Certification from MasterCard after completing a
successful MasterCard audit. Applied to ABnote’s dual interface smart
card body production, embedding and personalization from its Czech
facility, CQM quality program ensures high quality standards throughout
the entire production process of MasterCard-branded products. ABnote’s
production processes from card bodies to personalization have formally
been verified to pursue the strict MasterCard quality specific
requirements for production management, testing, evaluation,
documentation, auditing and process improvement.

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PenFed to Offer an American Express Card

The Pentagon FCU has struck a strategic partnership with American Express under which PenFed will issue “The PenFed Premium Travel Rewards American Express Card”
The PenFed Premium Travel Rewards American Express Card annual fee of
$50 is waived the first year of Cardmembership. Cardmembers can earn 5 times the rewards points on airline spend and 1
reward point on all other spend. Plus, until December 31, 2010,
Cardmembers also can earn 3 times rewards points on hotel and dining
spend. In addition, Cardmembers who spend $650 within the first 90 days
of Cardmembership will earn 20,000 bonus rewards points. Rewards can be redeemed for airline travel with no restrictions, hotel
stays, car rental, travel adventures and experiences, designer
merchandise and gift cards with major retailers.
Cardmembers who spend $15,000 each year will receive a complimentary
membership to Priority Pass, which gives Cardmembers VIP Airport Lounge
Access to over 500 lounges worldwide. The PenFed Premium Travel Rewards American Express Card also offers
numerous insurance benefits, such as Travel Accident Insurance, Trip and
Baggage Delay Insurance, Roadside Assistance and Car Rental Loss and
Damage Insurance. Pentagon Federal Credit Union has more than
900,000 members and assets in excess of $13.5 billion, and provides
worldwide service to Army, Air Force, Coast Guard, Department of
Defense, and Department of Homeland Security personnel; members of the
VFW; and others in the defense community and their families.

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HYPERCOM EMV

Hypercom Corporation is now to deliver a common, unified EMV Level 2
implementation across its “Optimum” and “Artema” product platforms, both
of which are EMV 4.2a Level 2 type approved. Now using the exact same
software kernel, “Optimum” and “Artema” countertop, mobile and
unattended terminals will ensure a consistent user experience globally
with faster certification, streamlined application development and
quicker time to market, as announced at the CARTES & IDentification 2009
summit. Hypercom global payment technology delivers a full suite of high
security, end-to-end electronic payment products and services focused on
addressing the high security electronic transaction needs of banks and
across a wide range of various sectors.

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NCO Group Q3 Revenue Down and Net Loss Widens

NCO Group reported revenues of $374 million for 3Q/09,
a net loss of $25 million and EBITDA of $34 million. This compares to
revenues of $381 million, a net loss of $26.5 million, and EBITDA of $16
million for 3Q/08. NCO is organized into three operating divisions:
Accounts Receivable Management, Customer Relationship Management (“CRM”)
and Portfolio Management. During the third quarter, both the ARM and CRM
divisions operated below their respective revenue and profitability
targets. The revenue and profitability shortfalls in ARM were primarily
the result of lower than expected collections as a result of the ongoing
difficult economic climate, as well as reductions in volumes and average
balances from clients. The revenue and profitability shortfalls in CRM
were primarily the result of lower than expected volumes from existing
clients, due to the impact of the difficult economic climate on their
businesses. During the quarter, PM operated below its revenue and
profitability targets primarily the result of fewer than expected
purchases during the first nine months of 2009 as well as lower than
expected collections, which resulted in the impairment charge. For
complete details on NOC’s latest performance, visit CardData
(www.carddata.com).

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General Purpose Gift Cards Poised to Take-Off

A new survey has found that 16% of holiday shoppers don’t buy store-specific gift cards because they are concerned that the store may go out of business. The report published by Auriemma Consulting Group says general-purpose gift cards branded by Visa, MasterCard, American Express, and Discover are gaining in popularity. Store-specific gift cards are the most popular for smaller purchases, but the intention to purchase a general-purpose gift card goes up as the dollar amount increases. The most popular reason consumers cited for giving gift cards this holiday season is the desire to give recipients the flexibility to purchase something that they really want or need. The survey was conducted in September of 439 credit card users who plan to do holiday shopping this year.

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Target’s Credit Card Profits Rise in 3Q/09

Target reported that pre-tax profit for its credit card segment nearly doubled in the third quarter to $60 million, compared to the year ago quarter of $35 million, but a little below the prior quarter’s $63 million. Charge-offs rose to 12.7% in the third quarter, compared to 12.1% in the second quarter and 8.7% one-year ago. Quarter-end receivables decreased to $8.0 billion, compared to $8.3 billion in prior quarter. Delinquency (60 day) rose to 6.5% for 3Q/09 compared to 5.8% in the second quarter. Delinquency (90 day) also edged up to 4.6% from 4.1% in 2Q/09. Target noted that credit card profit was driven by improved portfolio performance that more than offset the impact of lower floating interest rates. Target’s pretax return on invested capital (ROIC) from its investment in the credit card segment increased to 9.0% in the third quarter from 4.3% in 2008. For complete details on Target’s latest performance, visit CardData (www.carddata.com).

TARGET CARD LOAN HISTORICAL
3Q/08: $8.745 billion
4Q/08: $8.764 billion
1Q/09: $8.457 billion
2Q/09: $8.293 billion
3Q/09: $8.048 billion
Source: CardData (www.carddata.com)

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Visa Offers Account Alerts in U.S. & Canada

Visa announced the roll-out of transaction alerts, which allow issuers to provide near real-time alerts to Visa account holders throughout the U.S. and Canada. Alerts are sent on behalf of participating issuers directly from VisaNet within seconds of a transaction occurring. Alerts are triggered when the transaction meets certain criteria the account holder has selected and are delivered directly to the account holder via email, SMS text message or the “Visa Mobile” application. The alert message sent to account holders contains the amount, time and date of the transaction, as well as information relating to the merchant, such as name and location. If the transaction appears to be irregular, the account holder can immediately contact their issuer to help stop further transactions on the account. Over the last 12 months, Visa piloted transaction alerts with eight leading North American financial institutions and more than 2,000 participants.

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MasterCard’s MoneySend To Go Global in 2010

Next year, MasterCard is introducing the capability for its cardholders
of money transfers from any “MasterCard” or “Maestro” card to any other
“MasterCard” or “Maestro” card worldwide. The MasterCard “MoneySend”
removes barriers impeding the transfer of money around the world and
provides a cost-effective money transfer platform enabling P2P payments
and cross-border remittances. This will give banks access to the $456
billion global remittance opportunity while fostering deeper
relationships with their cardholders. Asia Pacific, the Middle East and
Africa comprise over 46% of the world’s remittance volumes. In 2008,
Punjab National Bank in association with MasterCard introduced
“MoneySend,” enabling money transfers from “MasterCard” or “Maestro”
accounts held at Punjab National Bank to any “MasterCard” or “Maestro”
account at participating banks across India. In 2008, DBS Bank and
MasterCard launched “MasterCard MoneySend,” enabling DBS customers to
make remittances to participating banks in Indonesia, Malaysia,
Philippines, Thailand and India. In 2007, MasterCard along with State
Bank of India announced the launch of “MasterCard MoneySend,” allowing
consumers to send intra-country P2P money transfers using the ATM channel.

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