Tempo Intros a SaaS Card Platform

CA-based affinity card enabler Tempo has rolled out a SaaS platform to
enable organizations to offer open loop debit cards and loyalty rewards.
Tempo’s new solution is supported by an innovative software-as-a-service
(SaaS) technology platform, which makes it easy for organizations to
offer affinity and co-branded debit cards. It is also easy for consumers
to apply, activate their cards, and track purchases online. Working with
First Bank & Trust, Tempo manages all aspects of card issuance,
including risk management, application processing, card fulfillment,
authorization and settlement. The debit cards enabled by Tempo are
issued by First Bank
& Trust, of Brookings, SD, part of Fishback Financial Corporation.
Tempo’s platform enables these cards to be linked to cardholders’
pre-existing checking accounts.

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ING & NCR

NCR is set to provide at least 1,200 “SelfServTM 34” ATMs with
cash-recycling functionality for ING Belgium at their Proxi branches.
Proxi branches highlight “self bank” self-service and customer advice
areas and, with this NCR deployment, reduce safety risk to staff and
customers, not to mention greater autonomy in day-to-day banking. Cash
deposited through the units, which have a capacity of approximately
16,000 notes, will be re-dispensed to subsequent customers making
withdrawals. ING Belgium has taken a clear lead with this approach,
requesting automatic cash-recycling modules on almost all the 1,200 ATMs
for installation, 95% of which will be installed inside branches. This
is the most extensive deployment of cash-recycling ATMs in Europe.

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Experian to Track Discretionary Spending

Experian has introduced “Discretionary Spend Estimate” which provides insight about household spending.
Identifying the most appropriate target audience is the first step for marketers who want to
reach the right consumers with their products and services, according to
Experian®. Knowing which consumers have discretionary dollars to spend
and reaching those who are most likely to spend is key when it comes to
closing the sale. Consumers who appear nearly identical in terms of demographics actually
may vary widely when it comes to discretionary spending. Traditionally,
marketers have used income, net worth and income-producing assets to
enhance their consumer targeting efforts. While beneficial, these data
elements provide insight only into spending capacity, not how much
actually is being spent.

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Most Americans Want CARD Act Moved-Up

According to a new survey, a majority of consumers (56%) want the law
moved up to December instead of February 2010. The survey also found 45%
(up from 33% in June survey) of consumers say their card company has
made one or some combination of the following changes to a credit card
account: increased their interest rate 27% (up from 15% in February
survey); increased their fees 19% (up from 14% in June survey);
lowered their credit limit 17% (up from 8% in February survey);
increased their minimum payment due 17% (up from 12% in June survey);
and reduced their rewards program 12% (up from 9% in June survey).
This national telephone poll was conducted for Credit.com by GfK Custom
Research North America from October 10-11.

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World Debit MasterCard Adds Another Issuer

Since its launch in March, the “World Debit MasterCard” has gained momentum. The new card offers an extensive rewards, savings and an
array of special perks. Fifth Third Bank has now introduced the card. The card features “MasterCard Savings” that provides U.S. consumer debit and prepaid MasterCard cardholders with significant merchant-funded discounts and special offers from thousands of merchants across the country. The Fifth Third Bank “World Debit MasterCard” also features access to “Priceless.com/World,” through which cardholders gain unique access to events and games and can take advantage of exclusive opportunities for hotels, shopping and travel. Cardholders can earn one point for every $1 spent on signature purchases and enjoy no limit on how many rewards points they can earn each year. When combined with the “Fifth Third Rewards Checking” account, customers also can earn one point for every $10 in direct deposits to their checking account. The card also offers “MasterCard Savings Plus.”

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Charge-Offs of Top Issuers Up 156BPS from Q2

Over the past twelve months average managed charge-offs among the
nation’s top three issuers have nearly doubled, rising from 5.93% for
3Q/08 to a record 11.16% for 3Q/09. Sequentially, charge-offs jumped 156
basis points compared to 242 basis points, according to CardData. Chase
reported that its managed net charge-off rate for the third quarter was
10.30%, up from 5.00% in the prior year and 10.03% in the prior quarter.
Excluding Washington Mutual, the managed net charge-off rate for the
third quarter was 9.41%. Chase notes that within the WaMu portfolio,
charge-offs hit 21.94%, compared to 19.17% in the second quarter and
12.09% at year-end 2008. BofA reported that third quarter charge-offs
for its global cards rose to 12.90%, compared to 11.73% for 2Q/09 and
6.40% one-year ago. Citi posted managed charge-offs for its North
American cards of 10.29% for the third quarter, compared to 10.18% in
the second quarter and 6.39% in the third quarter of last year. For
complete details on third quarter results visit CardData (www.carddata.com).

CHARGE-OFFS HISTORICAL
BofA* Chase Citi**
3Q/08: 6.40% 5.00% 6.39%
4Q/08: 7.16% 5.56% 6.68%
1Q/09: 8.62% 7.72% 8.42%
2Q/09: 11.73% 10.03% 10.18%
3Q/09: 12.90% 10.30% 10.29%
* Global Cards
** North America cards
Source: CardData (www.carddata.com)

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Diebold Increases ATM Service Security

Diebold has introduced a two-factor authentication technology that uses a secure USB device to identify and authorize technicians who service ATMs. The new “ValiTech” also provides a detailed audit trail.
Prior to the introduction of “ValiTech,” Diebold technicians had to secure a temporary password, provided by the financial institution, each time a service call required a technician to access the system level of the ATM. This practice holds true for any service technician accessing an institution’s ATM, requiring multiple calls and generating numerous temporary passwords. Diebold’s “ValiTech” links each authorized service technician to a USB hardware cryptographic device – or token – using a digital certificate from VeriSign.

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CyberSource Incorporates Tokenization

CyberSource has incorporated automated account updating services into its “Enterprise Payment Security 2.0,” allowing for customer billing records to tokenize in its remote secure storage servers, automatically updated with new account information through its “Account Updater Service.” Subsequently, when payment transactions are sent to CyberSource for processing, CyberSource, not the merchant, stores the raw payment data in its secure systems and assigns each transaction a “payment token.” This enable merchants to use transaction information for recurring billing and issuing credits without exposing transaction data. Tokens and their functions render them useless to hackers seeking illegal use of customer data while the principles to eliminate payment data exposure rely on three points of interaction, including storage, capture/transmission, and back office administration, achieved through payment tokenization.

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VIPdesk on a Hiring Binge in Kentucky

Virtual customer service provider VIPdesk is hiring 100 Kentucky-based CSRs to work from home.
Customer Service Representatives will respond to incoming calls from
debit card holders with questions about their account status, balance
inquiries and how to reset their PIN. They will work from home, earning $8-$9/hour
responding to incoming calls from debit card holders of a premier
financial services client. VIPdesk will provide two weeks of paid training for all new Customer Service Representatives, who must
live in the state of Kentucky. All Customer Service Representatives will
have access to benefits. VIPdesk specializes in delivering virtual contact center
solutions in several industries including retail, travel, automotive and
financial services.

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FRAUDLOCK

With identity theft having increased 32% in 2009, as the fastest growing
white collar crime in the country and a fraudulent transaction taking
place every eight seconds, there were 59,000 victims in 2009. This costs
the UK economy GBP1.3billiion annually, making it difficult for victims
to gain credit. The total solution, guaranteeing protection against
identity theft, uses every technique and technology available. The
solution offers 12 key features with private investigators, black market
monitoring, lost or stolen card recovery service, free online credit
reports, credit monitoring, pro-active protection, online security
software and advice, free credit rating and analysis, reduced junk mail
and credit offers, a statement reminder service which spots undelivered
statements and an advice line.

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