Cardinal Awarded Card Authentication Patent

OH-based CardinalCommerce has been granted a US patent for “Dynamic Number Authentication for Credit/Debit Cards”. At present, Cardinal’s intellectual property portfolio includes three US and three European patents, as well as other issued and pending patents. Cardinal Centinel enables payment brands such as Verified by Visa, MasterCard SecureCode, Amazon Payments, Bill Me Later, ClickandBuy, Cred-Ex, Ebates, eBillme, eLayaway, Google Checkout, Green Dot MoneyPak, Mazooma, Moneta, MyECheck, NACHA Secure Vault Payments, OneTouch Online Purchasing, paysafecard, PayPal, RevolutionCard, SafetyPay, TeleCheck, Ukash, and more to a network of thousands of merchants and merchant service providers.

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GEMALTO SAM

Gemalto digital security has deployed its “Secure Access Modules” (SAM)
for EasyCard payment terminals in Taiwan for eSECURE Technology. The
“SAM” card is used to upgrade existing payment terminals for contactless
use, providing nearly 16 million consumers a simple, fast and secure
means to make small sum payments. This development marks a new
advancement towards rendering the use of EasyCard, a Gemalto Channel
Partner Program member, similar to that of an electronic wallet. “SAM”
is delivered under the form of a small format microprocessor card that
can be inserted into a terminal, is a proven solution that is used as an
effective and simple means to provide local off-line security for
prepaid and small amount transactions, of which Gemalto has already
deployed several million.

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U.S. Q3 Credit Cards Drop by 100MM+ Y/Y

The number of Visa, American Express and MasterCard credit cards in the U.S. has declined more than 15% over the past year, dropping by nearly 100 million cards. Through the third quarter the number of credit cards-in-force for MasterCard was down 21.6% while American Express was down 11.0%. Through the second quarter Visa credit cards were down 7.8% year-on-year. (Discover does not publicly release number of cards.) According to CardData (www.carddata.com), as of September 30th, there were 551 million credit cards for Visa, MasterCard and American Express, compared to 650 million for 3Q/08. At the end of the third quarter MasterCard had 211 million credit cards, American Express had 39.8 million cards and Visa had an estimated 300 million credit cards. (Visa reported 309 million for the second quarter.) For the latest payment network statistics visit CardData (www.carddata.com).

U.S. CARDS IN FORCE
(Visa+MasterCard+Discover)
3Q/08: 650 million
4Q/08: 641 million
1Q/09: 600 million
2Q/09: 569 million
3Q/09: 551 million
Source: CardData (www.carddata.com)

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TransFS Card Terminal is Unveiled

Transparent Financial Services has launched the free “TransFS Card Terminal” iPhone app that provides businesses with credit card
acceptance capabilities. “The TransFS Card Terminal” is the first iPhone app of its kind to be free of cost and provide complete freedom of choice in credit card processor selection and offers businesses the ability to introduce or test mobile card acceptance without the fear of wasted cost or unwanted commitments. TransFS Card Terminal provides card acceptance capabilities without the cost of purchasing or leasing terminals. For new merchants and those just beginning to accept credit cards, this offers potential savings of hundreds of dollars per point of sale.

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MOBILE PAYMENT AMEX

American Express, Commercial Bank of China (ICBC) and Union Mobile Pay (UMPay) has launched the “Mobile Payment Card” dual-currency credit card with mobile account payment capabilities and features. The “Mobile Payment American Express Card” offers cardholders the advanced UMPay mobile e-commerce service for secure, convenient, and flexible online, offline, and mobile payment options. After activating their mobile payment function, cardholders can select merchants accepting mobile payments from their mobile phones and authorize payments for digital downloads, utilities, and other online and offline goods. The
transactions will be automatically charged to their ICBC “Mobile Payment
American Express Card” accounts in either the US dollar or Renminbi.

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Medical Marijuana Prepaid Card in the Works

A pre-paid loyalty and ID card for licensed medical marijuana dispensaries and collectives operating within the states of California and Colorado is in the works. Commerce Online and RedFin Network have teamed to offer the new card. The Commerce Online branded, pre-paid loyalty and ID card will be marketed through our new Collective Card Services division, and may be loaded to any denomination of funds with direct deposit at local bank, via the Internet, POS system by the member of the collective or medical dispensary. Fourteen states presently allow some use of marijuana for medical purposes: Alaska, California, Colorado, Hawaii, Maine, Maryland, Michigan, Montana, Nevada, New Mexico, Oregon, Rhode Island, Vermont and Washington. There are an estimated 300,000 to 400,000 medical marijuana patients in California.

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MIFARE TECHNOLOGY

NXP independent semiconductor and STMicroelectronics secure smart card
chips have signed a global strategic licensing agreement for NXP’s
“MIFARE” technology. This allows STMicroelectronics to integrate the
entire MIFARE family into its security solutions for mobile phone and
banking applications, facilitating the convergence of the MIFARE
infrastructure and NFC enabled mobile devices. ST can also include
MIFARE Classic and MIFARE DESFire technology into its leading (U)SIM
card ICs and other embedded secure solutions for the mobile phone
market, as well as into security solutions for PC readers and banking
card ICs. NXP Semiconductors provides High Performance Mixed Signal and
Standard Product solutions has about 29,000 employees working in more
than 30 countries while STMicroelectronics had 2008 net revenues of
$9.84 billion.

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Heartland – VeriFone Dispute Moves to Court

Heartland Payment Systems says VeriFone took down the website that was using the Heartland name to lure Heartland customers following a blowup this week between the firms. The NJ Federal Court granted Heartland Payment Systems’ application for an order to show cause against VeriFone. The return date for an expedited hearing on Heartland‘s injunction on its Lanham Act false-advertising claims was set for December 7th. No motion to transfer these claims to California as requested by VeriFone was granted at the hearing. HPY says the need for the court hearing resulted from the public relations attack VeriFone launched against Heartland last week claiming Heartland can no longer support its customers using VeriFone terminals. The discord between Heartland and VeriFone began when Heartland refused to work exclusively with VeriFone to produce “E3” terminals featuring Heartland’s end-to-end encryption technology.

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SEPT ABS

The UK aggregate credit card charge off index increased to 11.8% in
September 2009, almost doubling from the levels observed in Q1 2008,
thanks to the MBNA I and MBNA II master trusts. Following months of
continuous deterioration, the sector is beginning to show some
preliminary signs of stabilisation, with delinquency rates flat or
decreasing across most trusts for the past three to four months. The
pace of increase of charge offs appears to be reducing across most
trusts, according to Moody’s, which also cautions Christmas spending
could lead to a post-Christmas rise in arrears for a mid-2010 increase
in charge-offs. Meanwhile 3Q/09 figures released by the Insolvency
Service revealed personal insolvencies had reached their highest level
since records began in 1960, up 28% on the same period last year.
Moody’s continues to have a negative outlook for the UK credit card
sector and is pegged for possible downgrade.

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Nigel Morris Joins Prosper Board

Peer to peer lending marketplace Prosper has named Capital One
co-founder Nigel Morris to its Board of Directors.
Morris co-founded Capital One in 1994, and during his ten-year tenure,
Capital One’s customer base grew to 45 million,
managed loans increased to more than $70 billion and the company emerged
as one of the top seven issuers of MasterCard and Visa credit cards in
the world. He is currently the managing partner of QED Investors, a
direct investment fund focused on high-growth companies that leverage
the power of data strategies. In addition, he works in an advisory
capacity with General Atlantic Partners, Columbia Capital, and Oliver
Wyman. He also serves on the board of The Economist Group, London
Business School, and Venture Philanthropy Partners. People and
institutional
investors register on Prosper as lenders, then set their minimum
interest rates, and bid in increments of $25 to $25,000 on loan listings
they select. In addition to criteria commonly used by institutional
lenders, such as credit scores and histories, Prosper lenders can
consider borrowers’ personal stories, endorsements from friends, and
community affiliations. People and institutions list and bid on loans
using Prosper’s online
auction platform. Borrowers can list loan requests between $1,000 and
$25,000 on Prosper and set the maximum rate they are willing to pay an
investor for the loan, and tell their story. Once the auction ends,
Prosper takes the bids with the lowest rates and
combines them to facilitate the funding of one simple loan to the
borrower, and then issues what are called “Notes” to all the winning
bidders.

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First Data to Deploy Interceptas

First Data and online fraud prevention provider Accertify have entered into an agreement to integrate Accertify’s “Interceptas”
fraud prevention platform with First Data’s eCommerce processing gateways and platforms.
The agreement with Accertify, in conjunction with the tokenization and
encryption solution developed by First Data and RSA, called the “First Data Secure
Transaction Management” service, redefines how merchants manage and
protect their customer payment data. The integration of Accertify’s platform will provide First
Data with a comprehensive, end-to-end fraud deterrence solution. This solution will
equip First Data’s customers with tools to help mitigate risk and reduce losses
associated with fraud. The solution also eliminates the need for merchants to deploy
separate payment and risk platforms. First Data will offer this combined solution
to its 300,000 merchants around the world that sell goods or services over the
Internet and in a card-not-present environment.

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UATP Teams with NxSystems

Corporate travel provider Universal Air Travel Plan has partnered with global payment solution NxSystems.
NxSystems product line includes domestic and international
prepaid cards that are processed through a proprietary multi-currency payment platform
gateway that allows worldwide access to e-banking, e-payments and e-commerce.
NxSystems brings to the UATP partnership the unique ability for
split-tender payments, domestically and internationally.
Split tender will enable consumers to use the voucher prepaid debit card in a multitude of currencies with
combined payment options, for use around the globe. NxSystems’ proprietary
“NxPay Payment Platform Gateway” software provides consumers with a global payment
solution that links prepaid debit cards to its multi-currency payment platform,
creating an innovative and comprehensive web-enabled solution. Real-time transactional
information can be managed globally.

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