Credit Union Portfolio Sales All But Dry Up

Credit card portfolio sales in the credit union market are grinding down to a trickle. Among CU credit card portfolios with at least $1 million in outstandings, only $4.5 million changed hands in the second quarter, compared to $190 million in the prior quarter and $20.5 million one-year ago. Portland, OR-based AssetExchange says it latest analysis also reveals that outstanding balances grew 6.3% year-on-year in the second quarter to $32 billion, slightly above 5.9% growth rate in the first quarter. Card accounts grew 2.2% over the same period to 12.3 million. Both figures are above the current overall industry growth figures. Cards as a percentage of total assets declined to 4.57% in the second quarter of 2009, down from 4.80% in 2Q/08. Credit card penetration remained approximately flat in the second quarter at 18%.
AssetExchange is a credit card advisory and brokerage firm.

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TRINTECH 2Q/09

Trintech Group integrated financial governance, transaction risk
management and compliance solutions has announced revenues of $9.9
million, an adjusted EBITDA net income of $1.5 million and a net profit
of $603,000 for the second quarter ended July 31, 2009. Revenue was down
5% Y/Y; EBITDA net income was up 595% Y/Y; cash balances totaled $17.8
million; $826,000 cash was generated from operating activities for an
increase of $945,000 Y/Y. Contributing to the positive gains, Trintech
announced recently signed software agreements with P.F. Chang’s; Mexx;
WNS Business Outsourcing; and Providence Health & Services. The Company
currently allows more than 600 companies to achieve performance
management through its comprehensive platform of account reconciliation,
accounting compliance, and financial reporting applications. For complete details on Trintech’s latest performance visit CardData (www.carddata.com).

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COUNTRY STYLE PAYWAVE

The Country Style Bakery chain has joined the ranks as a Visa “payWave”
contactless payment enabled merchant. The store will accept “payWave”
contactless payments with the intentions of providing customers greater
checkout speed and convenience. The technology allows consumers to “wave
and go” when conducting merchant transactions at over 100 participating
Country Style locations across Ontario, all of which will be equipped
with the Visa “payWave” enabled terminal by the end of summer. Country
Style Food Services coffee and baked goods franchisor has more than 400
locations across Ontario.

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Fifth Third Processing Solutions Cited

OH-based Fifth Third Processing Solutions has been
awarded the MasterCard Worldwide “Best in Class” Gold Award for its
excellence in operational achievements. Award winners are determined in the first quarter of each year based on
prior year data. Winners must have annual authorization transaction counts of
greater than one million through the MasterCard Worldwide Network and be compliant with all
MasterCard Rules. The awards program annually acknowledges
performance in key areas that impact cardholder experiences. This marks the second
consecutive year that Fifth Third has been recognized for its payments transaction
processing. Fifth Third Bancorp is a diversified financial services company
with $116 billion in assets and operates 16
affiliates with 1,307 full-service Banking Centers.

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Retalix Second Quarter Income Triples Y/Y

Retalix reported that revenues in the second quarter declined 17% to $48.9 million, compared to the year ago quarter. However, GAAP net
income for the quarter was $4.9 million, compared to $1.5 million for 2Q/08. The Company says a 17% reduction in operating expenses and
currency shifts were the profit drivers. Also, the income in the second quarter largely offsets a similar financial expense recorded in the
first quarter that was due to the — then — strengthening of the U.S. dollar. Retalix expects FY 2009 revenues to be between $180 million and
$200 million and GAAP net income to be between $1 million and $6
million. Retalix solutions serve the needs of grocery chains,
convenience and fuel retailers, food and consumer goods distributors and
independent grocers. For complete details on Realtix’s latest results visit CardData (www.carddata.com).

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DOCOMO DCMX

DOCOMO’s credit payment service has topped 10 million this week. “DCMX” enables subscribers to make purchases using their mobile phones as credit cards via “iD,” DOCOMO’s branded mobile payment platform for handsets equipped with contactless IC cards (Osaifu-Keitai). Currently, over 30 million DOCOMO customers use Osaifu-Keitai-compatible handsets and about 60% of all DOCOMO customers are using Osaifu-Keitai services. As of July 31st there were approximately 420,000 “iD” readers/writers nationwide. Subscribers of the standard “DCMX” and “DCMX GOLD” plans can also earn DOCOMO’s loyalty points each time they make a purchase transaction. Launched in April 2006, DCMX reached 1 million subscribers in November 2006, 5 million in February 2008 and 10 million, just three years and four months since the original launch.

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JUNE LEI

The Conference Board Leading Economic Index (LEI) for Australia
increased for the fourth of the last five months by 0.9% while the
Conference Board Coincident Economic Index (CEI) decreased 0.1% in June.
With the 0.9% increase in June, The Conference Board LEI for Australia
now stands at 113.8 (2004=100), which declined 0.2% in May and increased
0.3% in April, while the CEI now stands at at 112.5 (2004=100), which
increased 0.4% in May and increased 0.1% in April. LEI results for the
month were attributed to positive gains in building approvals; yield
spread; share prices; money supply; the sales to inventories ratio; and
gross operating surplus while rural goods exports declined for the month.

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VeriFone Releases PAYware CMS 8.0

VeriFone has rolled out “PAYware CMS 8.0” comprehensive card
management enterprise software for banks,
financial institutions, processors and retailers to issue cards, accept
electronic payments and merchant management. “PAYware CMS” enables
issuers to easily set up and manage feature-rich
card programs for both physical and virtual card payments. For
acquirers, PAYware CMS
supports individual merchant needs such as acquiring services contracts to
accept, authorize and settle card transactions; it also offers
multi-merchant support at
all levels. PAYware CMS 8.0 supports all aspects of card and merchant
management,
payment authorization, clearing and settlement. It can also be used by
telcos to
issue pre-paid cards and by government agencies to issue and process
electronic benefits. New security features include encryption of
sensitive data, PAN masking, and
detailed audit tracking of user activity. The software supports all
major card association schemes and full EMV compliance for both issuing
and acquiring
organizations.

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Charge-Offs Remain Likely to Top 11% by 2010

Despite a slowing in the unemployment rate and improved credit card performance metrics in July there is still a high probability that charge-offs will rise to 11% by year-end. Charge-offs exceeded the unemployment rate for the first time ever in the second quarter. Discounting the seasonality of the July and August credit card metrics and the masking of those falling off the unemployment charts, the gap between the ratios will likely widen by year end. According to CardData (www.carddata.com), average charge-offs for the second quarter were 10.2% with an unemployment rate of 9.4%. With a 9.9% unemployment rate expected for September, third quarter managed charge-offs will likely hit 10.3%. Four of the six top U.S. credit card issuers posted lower charge-offs in July, ranging from 12 basis points to 70 basis points below the prior month. Furthermore, higher charge-offs reported by Capital One (10 bps) and BofA (1 bps) were not significant. (CF Library 8/20/09)

Unemployment Charge-Offs
Mar/08: 5.2% 4.6%
Jun/08: 5.7% 5.3%
Sep/08: 6.0% 5.5%
Dec/08: 7.1% 6.0%
Mar/09: 9.0% 8.7%
Jun/09: 9.4% 10.2%
Sep/09: 9.9% 10.3%
Dec/09: 10.1% 11.0%
Source: CardData (www.carddata.com)

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RETALIX 2Q/09

Retalix reported that revenues in the second quarter declined 17% to $48.9 million, compared to the year ago quarter. However, GAAP net income for the quarter was $4.9 million, compared to $1.5 million for 2Q/08. The Company says a 17% reduction in operating expenses and currency shifts were the profit drivers. Also, the income in the second quarter largely offsets a similar financial expense recorded in the first quarter that was due to the — then — strengthening of the U.S. dollar. Retalix expects FY 2009 revenues to be between $180 million and $200 million and GAAP net income to be between $1 million and $6 million. Retalix solutions serve the needs of grocery chains, convenience and fuel retailers, food and consumer goods distributors and independent grocers. For complete details on Realtix’s latest results visit CardData (www.carddata.com).

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CPC Inks ControlScan for PCI DSS Compliance

FL-based prepaid product provider Sound Cash Global Solutions has
launched the “Avianca Cash Reloadable Visa Prepaid Card” program. The Card has a unique
feature set that includes mobile account management, Avianca Plus miles,
PIN-less international LD, international remittances and other card
benefits. The “Avianca Cash Visa Prepaid Card” is a general spend stored
value card issued in the US by Metabank pursuant to a license from Visa
U.S.A. Inc., with Sound Cash as program manager.
Sound Cash is a joint venture company formed between Avianca
and Denarii. Sound Cash delivers stored value card programs coupled to
mobile banking platforms for the airline industry.

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Avianca Airlines Unveils Reloadable Visa

FL-based prepaid product provider Sound Cash Global Solutions has
launched the “Avianca Cash Reloadable Visa Prepaid Card” program. The Card has a unique
feature set that includes mobile account management, Avianca Plus miles,
PIN-less international LD, international remittances and other card
benefits. The “Avianca Cash Visa Prepaid Card” is a general spend stored
value card issued in the US by Metabank pursuant to a license from Visa
U.S.A. Inc., with Sound Cash as program manager.
Sound Cash is a joint venture company formed between Avianca
and Denarii. Sound Cash delivers stored value card programs coupled to
mobile banking platforms for the airline industry.

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