BORDERLINX

Forty eight per cent of Canadians intend to conduct some online shopping
before Labour Day, one in six of whom will be searching for
back-to-school deals. Of the 48%, one-third is expected to spend more
than did so the year ago period for an average of nearly $600; 35% shop
online for convenience; 40% shop online for cheaper prices; and 26% shop
online for wider selection. These findings, according to a July 2009
survey of Canadian online shoppers commissioned by Visa Canada, also
show 25% of the back to school shoppers will be shopping for books; 22%
will be looking for computers; 10% will be looking for backpacks; and
40% will be looking for clothing. Among the internet back-to-school
shoppers, the average consumer plans to spend $318 while 40% plan to
also shop in retail stores. In retail stores, they expect to spend an
average of $298. Additional findings show Canadian online shoppers made
an average of 7.1 purchases at Canadian sites in the past year but 4.8
purchases were conducted at U.S. sites; 37% did so for pricing; 34%
liked the variety; and 26% needed to for availability. Catering to
Canadian Visa cardholders, Visa is offering its “Borderlinx” solution,
allowing for Canadian orders from U.S. only sites and providing a
calculator to estimate total cost with taxes, duties, currency
conversion and shipment.

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EVO Merchant Services CEO Cited

Payment processor EVO Merchant Services announced that CEO Ray Sidhom is a recipient of the 2009
Ernst & Young Entrepreneur Of The Year Award for Metro New York.
Sidhom started selling credit card machines to
retailers. By 1994, he was convinced of his prospects. He formed EVO Merchant Services
with the goal of building an in-house infrastructure to process credit cards
throughout the entire transaction cycle. Fourteen years later, the tools he developed
serve the $20 billion in transaction volume for the nearly 200,000 he processes
for every day. Currently, EVO is investing in the growth of its
partners that have helped it achieve its own phenomenal expansion. As a Metro New York award winner, Sidhom is now eligible for
consideration for
the Ernst & Young LLP Entrepreneur of the Year 2009 national program.

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First Internet Bank Goes Contactless

IN-based First Internet Bank is issuing Visa “payWave” contactless debit
cards.
Since its launch ten years ago, First IB has offered customers a lineup of
convenient account access services – including a robust website with
self-service features for anytime account access, and traditional
magnetic stripe
Visa debit cards as a secure alternative to carrying cash. The
contactless debit
card offering is the most recent enhancement to the Bank’s lineup of
added value
services. First IB has also introduced mobile banking as well as
personal budgeting and
account aggregation services in the past twelve months.
First Internet Bank of Indiana is the first state-chartered,
FDIC-insured institution
to operate solely via the Internet and has customers in all 50 states.
Deposit services
include checking accounts, regular and money market savings accounts with
industry-leading interest rates, CDs, and IRAs with over $540 million in
assets.

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Hypercom Delivers a Profit as Revenues Jump Q-Q

Hypercom reported that net revenue for the second quarter increased 28% sequentially to $106.8 million, but down 14%, compared to 2Q/08. The payment terminal manufacturer delivered net income of $1.3 million for 2Q/09, compared to a $9.9 million loss in the prior quarter and a $10.9 million loss in the year ago quarter. The results were attributable to tightly controlled operating expenses coupled with a significant sequential increase in sales across all regions. The Company also noted that its “Optimum” product line continues to gain traction worldwide with more certifications this year. During the second quarter,
Hypercom, Ingenico and VeriFone announced the formation of the “Secure POS Vendor Alliance,” a non-profit business organization chartered with implementing common payment security standards among vendors of secure POS devices used by retailers, acquirers and cardholders alike. In the U.S. during the quarter, Chase Paymentech, Elavon and TransFirst certified the “Optimum T4205”; First Data awarded “Class B+” certification to Hypercom’s “Optimum T4205” with “SPOS32” software; Apriva certified the “SPOS32” payment software on the “Optimum M4230” mobile payment terminal for the retail and restaurant markets; The Phoenix Group inked a deal to purchase up to $6 million of Hypercom’s “Optimum” payment products for resale to U.S. businesses; and Hypercom, Electronic Payment Systems and Mercury Payment Systems launched a pilot of the “HyperSafe Remote Key System.”. For complete details on Hypercom’s second quarter performance visit CardData (www.carddata.com). (CF Library 4/8/09; 4/9/09; 4/15/09; 4/22/09; 5/20/09; 6/22/09)

HYPERCOM REVENUE HISTORICAL
2Q/07: $ 67.5 million
3Q/07: $ 70.8 million
4Q/07: $ 89.5 million
1Q/08: $ 70.5 million
2Q/08: $124.2 million
3Q/08: $122.2 million
4Q/08: $121.6 million
1Q/09: $ 83.6 million
2Q/09: $106.8 million
Source: CardData (www.carddata.com)

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WESTJET MASTERCARD

WestJet, RBC Royal Bank and MasterCard have announced the upcoming
launch of its co-branded “WestJet” travel rewards credit card. Providing
cardholders a chance to earn “WestJet rewards,” the new card is slated
to be issued in the Fall of 2009 by RBC with MasterCard and will make
for an addition to its existing portfolio of travel rewards credit
cards. The new ‘WestJet Card’ will be the first MasterCard product
offered by RBC in Canada, which is the first Canadian bank to offer both
MasterCard alongside other credit card brands. With this, consumers are
given more choice and innovation. WestJet offers scheduled service
throughout its 66-city North American and Caribbean network while RBC
and its subsidiaries employ nearly 80,000, serving its 18 million
institutional clients across 55 countries.

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Consumers More Sensitive to Bank Fees

A new impact report issued by Javelin reveals that banks risk losing customers sensitive to fees.
Seven years of Javelin consumer survey data
underscore the necessity of designing banking products and services to
serve the customers’ craving for financial control, as 8 out of 10
online households now bank online. Some questions posed in the report include:
how fast will online banking and bill-pay adoption grow over the
next five years; how active are users of online-banking and bill-pay services;
can banks use online-banking and bill-pay services to boost
revenues, increase customer loyalty, reduce costs and create cross-selling opportunities;
can mid-size banks and credit unions boost the performance of
their online-banking services to better compete with giant national financial institutions
and what services can make online banking more appealing to consumers?

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Asta Funding Returns to Profitability in Q2

Asta Funding reported second calendar quarter revenues of $17.3 million, a 27% decline over the same period in 2008. However, the Company returned to profitability after two quarters of reported losses.
Net income for the quarter was $1.5 million, compared to net income of $2.4 million for the year ago period. The profitability was attributed to prudent actions in cost management and debt reduction. The Company completed $13.8 million of portfolio acquisitions with a face value of $335.6 million during the quarter, compared to $2.7 million of acquisitions during the first six months of fiscal year 2009. Net cash collections of consumer receivables acquired for liquidation, including
net cash collections represented by account sales decreased 23% to $37.6 million for the quarter, but increased slightly over the prior quarter’s
$36.9 million. For complete details on Asta Funding’s latest performance visit CardData (www.carddata.com).

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HSBC USA 2Q/09

HSBC reported that its Personal Financial Services business in the U.S. posted a pre-tax loss of $2.9 billion for the first half of this year, compared with a loss of $2.2 billion in the first half of 2008. HSBC USA Consumer Finance, which includes private label and co-brand credit cards such as the “General Motors MasterCard,” reported a pre-tax profit of $90 million for the second quarter, compared to a $12 million loss for 2Q/08. Operating income jumped 61% to $604 million for 2Q/09, primarily due to higher late fees on higher delinquencies in the private label and co-brand credit card portfolios. HSBC USA also reported that managed delinquency (60+ days) for its private label cards was flat sequentially at 4.21%, but up from last year’s 3.43%. Managed delinquency for V/MC credit cards hit 4.23% in the second quarter, compared to 3.44% in prior quarter and 4.55% one-year ago. HSBC ended the quarter with $15.1 billion in private label outstandings and $13.8 billion in credit card outstandings. For more details on HSBC’s second quarter performance visit CardData (www.carddata.com).

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Travelex Names a New VP/Currency Select

Foreign exchange service Travelex has appointed Paul Ackermann to VP, Currency Select Sales-North America.
Ackermann has over 25 years of experience in senior management,
sales and marketing, particularly in the technology and financial products field.
He has been with Travelex for two years and prior to that worked for 10 years with
First Data Resources. Previously, Ackermann had been the Head of
Sales for North America in Travelex’s Outsourcing division. This new position will
allow him to focus solely on generating new Currency Select business in the
United States and Canada. Travelex Currency Select is a proven, global solution offered to
merchant and ATM acquirers that process international transactions at an ATM, online or POS.

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AmEx and Hilton Launch a Shutterfly Promo

American Express has teamed with Hilton Hotels and online photo
publisher Shutterfly to offer a $55 Shutterfly photo reward.
Travelers who use Hilton Family’s signature online group booking tool to
reserve rooms and complete their stay at participating hotels between
August 1, 2009 and January 31, 2010 using an American Express ® Card
qualify for a reward from Shutterfly.
Whether booking guest rooms or event space for a wedding, a family
reunion, a business meeting or beyond, guests will also get the added
bonus of $55 toward Shutterfly photo merchandise so they can capture and
preserve those memories for years to come. By booking using an
American Express Card, once guests reach the $2,000 spend threshold for
their room block or event, they are eligible to receive a $55 shopping
spree at Shutterfly to purchase products such as a hard-cover photo
book, photo prints, or a collage poster – all via the Shutterfly web site.

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DIEBOLD 2Q/09

Diebold reported that second quarter revenue declined 9% to $700.5 million, but net income rose 5% to $30.6 million. Revenue in the EMEA region was off 31% while the Americas posted a 5% decline and Asia a 2% decline. The Company’s Financial Self-Service Division, mostly its ATM business, posted a 2% decline in second quarter revenue to $536.2 million. ATM product revenue was up 2% while ATM services was down 7% for 2Q/09, compared to 2Q/08. In the Americas financial self-service orders decreased more than 30%, primarily due to a difficult comparison to the prior-year period when the company had two very large orders in Brazil. Orders in the EMEA region decreased more than 40%, but orders in Asia Pacific increased more than 50%. Diebold is forecasting that total revenue will be down 13% to 7% while financial self-service revenue will be off by 8% to 2% for the 2009 full year. For complete detail on Diebold’s latest results visit CardData (www.carddata.com).

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