VISANET 2Q/09

Companhia Brasileira de Meios de Pagamento, a/k/a VisaNet, reports that revenues jumped 29% in the second quarter to 862.9 million
million reals. Net profits rose 48% to 364.8 million reals, compared to 2Q/08. The Company recently raised 8.4 billion reals through an IPO on the BMFBovespa. However, VisaNet is now being investigated by the Brazilian Justice Ministry Economic Law Department for alledged anti-competitive practices. Reportedly, the BJM SDE is assessing “the exclusive right of VisaNet to accredit businesses to accept cards carrying the Visa logo.” Visa do Brasil Empreendimentos Ltda. and Visa
International Service Association are also included in the investigation. BJM SDE has suspended VisaNet’s exclusivity for now.

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TNB Inks Anoka Hennepin CU for Processing

MN-based Anoka Hennepin Credit Union has sought a TNB card-processing
partnership following its 2008 merger, after which the CU was managing
two separate credit card portfolios processed on different platforms.
The partnership with TNB is meant to help streamline card operations and
position the the $160 million credit union for growth. A TNB evaluation
has yielded recommendations for card products, pricing, and marketing
promotions that will give the credit union the tools to drive growth.
These recommendations include the “MasterCard Family Account” to reach a
larger member base and build a relationship with a member’s entire
family and TNB’s “Design It! Photocard” personalization tool for
members. Anoka Hennepin Credit Union will convert approximately 3,500
card accounts with balances of $4.2 million to TNB to grow the portfolio
15% in new cardholders and balances within two years following the
conversion.

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Level 4 Retailers Familiar & Frustrated with PCI DSS

A poll of 220 Level 4 retailers found 86% of companies are familiar with “PCI DSS” and 88% understand the importance of security. The survey by ControlScan, the National Retail Federation, and the PCI Knowledge Base also found that 72% of small retailers believe the risk their company faces from a data compromise is “low” or “not possible,” However, 67% of previously breached respondents considered the risk from a data compromise to be “high” or “medium.” According to the survey respondents, small retailers first look to their acquirers and then to vendors of POS software, payment equipment and hosting as their “go to” resources for PCI compliance and security information. Additionally, the respondents generally expressed frustration with understanding, implementing and paying for compliance.

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KeyBank Selects Fiserv’s Mobile Money

OH-based KeyBank has chosen Fiserv’s “Mobile Money” to
support the bank’s strategic growth plans for the mobile channel.
“Mobile Money” provides KeyBank with “triple play” technology that enables
consumers to access their accounts using any of the three primary mobile
access modes: a downloaded application, mobile browser, or SMS.
The text messaging capabilities are provided by VeriSign
Messaging and Mobile Media, which successfully delivered more than 224
billion mobile messages through its networks in 2008. M-Com, the technology partner
underlying Mobile Money from Fiserv, tied for first place as a “triple
play” provider of all of the primary technologies used to enable mobile
banking: downloadable applications, mobile browser and SMS (text
messaging).The “Mobile Money” solution
combines banking and payments capabilities, and includes functions such
as balance inquiries, transaction history, account transfers, bill
payments and one and two-way account alerts. Informational services such
as an ATM and branch locator are also included.

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Tokenization and Encryption – The Better Mousetrap

The process of combining tokenization and encryption for securing cardholder data from the card reader through the entire transaction lifecycle has become a reality. The new solution can virtually remove merchants’ POS and card readers from the scope of PCI compliance. Electronic Payment Exchange has become the first payment processor to offer such a true end-to-end solution with the introduction of “BuyerWall.” With the new solution encryption built into the hardware and software at the POS, it protects against potential breaches before card numbers enter into the authorization process as it immediately encodes credit card numbers upon the card swipe. Tokenization then replaces
account numbers with values that are meaningless to hackers and identity thieves. FasTraxPOS, a retail automation company offering POS solutions to more than 1,300 convenience and tobacco-related stores, is one of the first organizations to adopt EPX’s new tokenized end-to-end encryption solution. EPX is a participating organization of the PCI Security Standards Council.

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RIS Ranks Epson POS Peripherals as #1

Epson POS solutions was ranked the number one peripherals provider for
the fourth year in a row in the “Hardware LeaderBoard 2009” by Retail
Information Systems News (RIS) magazine. The Company’s cumulative score
of 50.43 out of 60 was based on Product Features and Functionality;
Price/Value; Performance; Technology Innovation; Service; and Product
Reliability. Surpassing IBM, NCR, and Lexmark, the peripherals category
includes such products as keyboards, scanners, receipt printers,
electronic payment devices, signature capture pads, check imagers,
biometric identification readers, pole units, screens and cash drawers.
CA-based Epson was founded in 1975.

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Expedited Payments Represent a New Revenue Stream

According to a fresh report, expedited payment services may produce a new revenue stream for banks. GA-based Synergistics found one in six households with Internet have used expedited online bill payment services with 37% of users that report having paid a fee to use the service and slightly more than one-third of those who paid a fee find the fees to be unreasonably high or unjustifiable at any level, while more than six in ten are not as adverse. The “Maximizing Online Bill Payment” report found that 40% say the fees are a bit high and something they would pay only in an emergency. One-fifth find them to be an acceptable minor annoyance or reasonable for the service. Synergistics concludes that financial institutions should offer the service not only as a convenience to their customers, but as way to maintain their position as a leader in the payments area and should not give up this potential revenue to billers.

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ACCC Investigates Debt Settlement Business

Americans for Consumer Credit Choice (ACCC) has announced plans to
conduct a public study examining the debt settlement industry. Focusing
on results-oriented data and trade practices, the ACCC study will survey
other industry and interested groups to gage an independent objective
assessment of the consumer benefits provided by debt settlement
companies, such as consumer completion of debt settlement programs;
up-front fees; the quality of settlement officers; and consumer benefit.
These companies focus on negotiating down unsecured consumer debt while
the ACCC membership organization
is comprised of providers of consumer financial products and services
offering consumers free market financial choices.

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Revolving Credit Drops $56B Post Lehman Bankruptcy

Consumer revolving credit, mostly credit card debt, has been declining at a much faster pace in 2009 than previously reported and continued its rapid downward spiral in June. Posting its tenth consecutive monthly decline, U.S. consumer revolving credit dipped to $917.0 billion in June. Since peaking at a revised $973.5 billion in the third quarter of last year, Americans have chopped-off about $56.5 billion in revolving credit to-date. According to new and revised data released by the Federal Reserve, revolving credit declined at an annual rate of 6.8% in June, following a revised 6.3% decline in May and an 11.7% drop in April. In May revolving credit declined to a revised $922.3 billion and to a revised $927.9 billion in April. February posted the largest contraction over the past eight months, dropping nearly $13 billion, declining at an annual rate of nearly 14%. Bank credit card debt (excluding store and gas credit cards) at the end of the first quarter was about $780 billion or roughly 85% of total revolving credit, according to CardData (www.carddata.com). Store and gas credit cards had about $105 billion in outstandings at year-end 2008. At the end of June, Americans were $2503 billion in debt, excluding home mortgages.

REVOLVING CREDIT HISTORICAL ($billions)
Jun 09 May 09 Apr 09 Mar 09 Feb 09 Jan 09
GRWTH: -6.8% -6.3 -11.7 -8.9 -13.9 -0.7
$OWED: $917.0 922.3 927.9 936.2 948.4 961.0
Source: Federal Reserve; revised figures as of 8/7/09;
For complete historical data, visit CardData (www.carddata.com)

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Former AmEx CEO to Chair the AIG Board

Director Harvey Golub has been elected Non-Executive Chairman of the
Board for American International Group (AIG). Originally elected to the
AIG Board of Directors in May 2009, Golub was Chairman and CEO of AmEx
from 1993 to 2001, where he was hired in 1984 from McKinsey & Co. as a
partner. Harvey is also a member of the Board for Non-Executive Chairman
of Ripplewood Holdings, Campbell Soup Company, a Non-Executive Chairman
of the Board of Directors of The Reader’s Digest Association and a
director of RHJ International public investment company. AIG insurance
and financial services runs operations in more than 130 countries and
jurisdictions.

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OKI AMERICAS CEO

OKI Data has promoted Takabumi Asahi to President and CEO of OKI Data Americas. Asahi has been EVP and COO of North America at OKI Data Americas. Former President and CEO, Stewart Krentzman, will continue with OKI Data Americas as Advisor/Executive Management. OKI Data Americas is headquartered in Mount Laurel, NJ, and a subsidiary of OKI Data of Japan, markets PC peripheral equipment and customized document management solutions under the OKI Printing Solutions brand, including digital color and monochrome printers, color and monochrome multifunction products, serial impact dot matrix printers and thermal label and POS printers, as well as a full line of options, accessories and consumables.

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