U.S. Bank Merchant and CC Volume Remain Lower

U.S. Bancorp reports that second quarter merchant acquiring volume declined 11%
year-on-year to $59.7 billion and that the number of merchants declined 849,626.
However, average credit card outstandings soared by 24% to $14.3 billion.
Charge-offs rose to 7.36% from 6.32% in the first quarter and 4.84% for 2Q/08.
Total credit card volume, including consumer and business cards, declined 6% for
2Q/09 to $19.9 billion. Total debit card volume rose 4% from one-year ago to $9.4
billion. Credit and debit card revenue, corporate payment products revenue and
merchant processing services revenue were lower in the second quarter by 2.6%,
3.4% and 10.0%, respectively, as transaction volumes declined. USB noted that
marketing and business development expense was higher by 21% due to costs related
to new credit card product initiatives. Payment Services contributed $62 million
of the Company’s net income in the second quarter, a decrease of 74.8% from the
same period of 2008 and 36.7% from the prior quarter. The decline year-over-year
was due primarily to a $284 million increase in the provision for credit losses
driven by an increase in net charge-offs and an increase in provision expense
related to credit card portfolio growth, higher delinquency rates and changing
economic conditions from a year ago. For complete detail on U.S. Bancorp’s latest
results visit CardData (www.carddata.com).

MERCHANT ACQUIRING VOLUME HISTORICAL
2Q/07: $62,853,000,000
3Q/07: $63,882,000,000
4Q/07: $62,382,000,000
1Q/08: $64,853,000,000
2Q/08: $66,940,000,000
3Q/08: $66,941,000,000
4Q/08: $58,630,000,000
1Q/09: $57,877,000,000
2Q/09: $59,725,000,000
Source: CardData (www.carddata.com)

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Sterling HSA to Offer the WealthCare Card

Sterling HSA has selected Metavante as its exclusive provider of benefit debit card and healthcare payment technology. Metavante’s “WealthCare Card” will provide account holders with card-based access to their HSAs along with real-time balance information. The Metavante platform also offers a benefits administrator the freedom to choose its preferred HSA custodian when adding the account to the multi-purse debit card. New HSA accounts at Sterling HSA jumped 97% in 2008, with a corresponding 86% increase in dollar deposits. Metavante enables integrated consumer benefit account management of HSA, FSA, HRA, and dependent care and transportation accounts via card-based system.
Sterling HSA is an independent, privately held company offering health savings account administration services to employers and individuals nationwide.

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Avanquest Taps UpClick’s Payment Platform

Avanquest Software is to expand its use of UpClick’s payment processing
platform by leveraging it for traffic generated through email marketing
and search campaigns. Avanquest possesses and promotes 1,500 titles to
consumers through retail, online and direct sales channels. The
UpClick’s free payment processing platform will provide Avanquest Free
Online Payment Processing through PayPal, VISA, MasterCard, Solo and
Switch; Additional revenue from cross-sells through the UpClick network
of partners; and additional revenue from the subsequent network product
exposure. The Avanquest products can generate revenue for through
eligibility for use in cross-selling affiliate promotion thanks to
network exposure. France-based Avanquest is present in North America,
Europe, and Asia and was attracted to the UpClick platform thanks to its
international availability.

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June Card ABS Charge-Offs Set a New Record

Charge-offs among credit card-backed securities hit a record 10.76% in June as the overall delinquency rate declined for the third consecutive month to 5.81%. For the second consecutive month, Moody’s yield index continued to inch higher following yield-enhancing measures taken by many issuers. In June, the yield index rose to 18.52%, a new record for this year. The Index also shows payment rates rebounding to 16.53% in June after a two-month decline. Excess spread, which serves as a proxy for the profitability of a credit card program, also increased to 4.83% in June from 4.42% in May. Moody’s continues to expect a recovery of the credit card sector to begin once charge-offs peak in mid-2010 between 12% and 13%.

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Nebraska Courts Utilize Online Payments

Nebraska’s Administrative Office of the Courts has rolled out online
payments to case types which had a required court appearance. Payments can now be made by
defendants in criminal or traffic cases and by any party to a civil or
small claims case. The service securely accepts credit cards and
electronic check (ACH). Some payments that can now be made using the
courts Internet payment system include alimony payments, attorney fees, property settlements, probation fees and court costs.NIC is the nation’s leading provider of official government portals, online services, and secure payment processing solutions.

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LendingTree Launches a New Promo Campaign

Online lending network LendingTree has launched a new feature rich
website and promotional spots featuring 60’s TV icon Adam West. Some of the new features include:
“MoneyRight”, which allows consumers to aggregate all of their
personal finances and accounts in a single convenient interface; “LookB4ULock”: This feature provides customers with a critical
last-minute check to make sure they are getting the best deal possible
before locking into a loan; “Lender Ratings & Reviews”: A comprehensive, user-generated library
of detailed ratings and reviews for every lender on the LendingTree
network; “Ask the Tree”: Provides users with answers to personal finance or
mortgage-related questions; “Mortgage Checkup”: An easy online checkup to allow anyone with a
home to make sure their current mortgage is “healthy” and “Financial Calculators”, the “Enhanced Mortgage Rate Table”, “My Credit” and
“My Loans”, that lets the borrower review lender matches and customized loan offers online,
including a side-by-side comparison between offers and the option to
sort offers by interest rate and monthly payment. The “You to the Rescue” campaign, narrated by West, features everyday people becoming
superheroes by meeting the challenges of today’s economy and taking
control of their financial destiny. Since inception, LendingTree has facilitated more than 25
million loan requests and $185 billion in closed loan transactions.

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SBOBET & NEOVIA

SBOBET online sportsbook has chosen to implement Neovia Financial
payment processing for its sports betting websites. The independent
global online payments business will support SBOBET operations in Asia
and Europe for its more than 500 sporting events every week. SBOBET is
also about to launch the first ‘Live Dealer’ Casino licenced by the Isle
of Man Government and ‘casino.sbobet’ which will also use NEOVIA to
process payments. Processing will be conducted using the NETELLER
e-wallet and the NETBANX payment gateway. The NEOVIA Payment Suite will
be implemented thanks to its ability to accept direct payments through
single suppliers on a secure platform.

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FishNet Security Certified by Visa

MO-based FishNet Security has been accredited as a Qualified Incident
Response Assessor by Visa.
As a member of Visa’s QIRA program, FishNet
Security is available to respond immediately when payment card data
breaches occur, investigate the incidents onsite, oversee remediation
procedures, and then provide final assurance to Visa that compromised
systems have been secured and brought back into compliance.
Visa requires merchants to contact a QIRA immediately when they
experience a payment card data breach. Visa
started the QIRA program to better equip clients, merchants and agents
in mitigating the threat of a network intrusion and data compromise by
ensuring quick and thorough remediation of compromised card-processing
computing systems.

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iovation Reaches a Major Milestone

OR-based device reputation service iovation has reached two billion
reputation checks for its online business customers. The “Device
Reputation Authority”
(DRA), iovation’s global fraud database, offers information delivered
in real-time to determine
whether or not they have seen a given
device before and if that device has a history of fraud or abuse at any
site that uses the service. These checks have resulted in the
identification of over 140 million unique device reputations, an
impressive growth of nearly 500% from just one year ago. iovation
maintains a large
and growing database of device reputations that reflect actual online
fraud—e.g. a credit card chargeback. The growth of that database has
allowed the company to create a device-based risk service that
complements and provides significant uplift to existing identity-based
fraud management tools. DRA also exposes previously hidden
relationships between accounts and devices
in customers’ systems. Customers will know if one applicant has
applied for credit ten times in the past hour, or created ten new
accounts. Exposing these relationships is essential in catching fraud
rings and money laundering rings, where the associations between devices
and individuals aren’t apparent with standard fraud management systems.

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IKOBO VISA

M2 Global has expanded its card-based “iKobo Money Transfer” service to businesses and mass payments. “iKobo for Business” and the “iKobo Mass Payments” will enable small and medium sized businesses to
transfer money internationally to pay commissions, payouts, incentives,
rewards and other payments to employees, contractors and other
affiliates who receive their funds on a reloadable “iKobo Visa Prepaid
Debit” card. The card product also offers patented security
and fraud mitigation technology. M2 Financial, M2 Systems and M2 International, develops, acquires, operates and licenses software enabling platform interoperability and the initiation and settlement of electronic payments.

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Prepaid Discover/MC Taxi Card Goes National

A new prepaid card has emerged that offers taxi-specific services anywhere in the USA. The new “Taxi on Demand” cards are the creation of TransCard, MasterCard, Discover, STAR and Chattanooga-based company Taxi on Demand. The cards can only be used for taxi services. The “TOD” prepaid card comes in denominations of $35, $50, $100 and $200 and accommodates cardholders with access to cab companies in the physical vicinity accepting of the card through a toll-free call center number. The card was originally designed to target the college demographic and now is available nationwide. TransCard is a top ten, stored-value processor and a global provider of transaction-based processing services since 1993. TransCard became part of Discover’s PULSE network this month. In March, TransCard won “Best-in-Category” designation at the third-annual Paybefore Awards. (CF Library 3/19/09; 7/1/09)

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