LaserCard Joins the Smart Card Alliance

ID solution service provider LaserCard Corporation is the newest member of the Smart
Card Alliance. As a member of the Smart Card Alliance, LaserCard will participate in
education programs and conferences, industry councils and market
research. The company joins some 200 other members representing leading
companies in the financial services, computer, telecommunications,
healthcare, and retail industries, as well as federal government agencies.
Through this initiative, LaserCard aims to enhance its
collaboration with industry peers in delivering innovative,
technology-inclusive solutions that meet the increasingly complex
requirements of large-scale ID credential programs. LaserCard
integrates technologies including optical memory, microprocessor
chips, RFID tags, biometrics, security features, special materials and
durable credential construction to provide maximum security for its
customers.

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Capital Debt Settlement Adds a New Exec

Debt management firm Capital Debt Settlement has hired Monica Avalos, previously with Bank of America,
as Director of Client Services. At BoA, Avalos oversaw a business support
call center of 400 employees. Prior to Bank of America, Avalos held
the position of Associate Vice President with Saxon Mortgage, a
subsidiary of Morgan Stanley. Capital Debt Settlement represents clients in
40 states and is a member in good standing with TASC.

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Top U.S. Card Players Report Worst Q1 Contraction

The combination of seasonality and a recession cut abnormally deep into credit card outstandings and volume during the first quarter.
Discounting Chase’s acquisition of the WaMu portfolio, all of the five
top issuers posted significant declines in both outstandings and volume
for 1Q/09. According to CardData, Capital One fared the best in
outstandings and volume with a decline of less than 1% in outstandings
and a 12% contraction in dollar volume, compared to the year ago period.
On the other end of the scale HSBC, which has a significant sub-prime
portfolio, fared the worst with a 10% year-on-year decrease in
outstandings and a 23% decline in volume. Among the other top five,
Chase outstandings were up 16%, but excluding WaMu’s $25.9 billion in
card loans, outstandings were down about 1%. Chase’s volume dipped 11%,
but included WaMu. BofA was down 6% in outstandings and down 20% in
volume. Citi was down 5% in outstandings and 18% in volume.

1Q/09 vs 1Q/08
Outstandings Volume
Chase* +16% -11%
BofA – 6% -20%
Citi – 5% -18%
Cap One – 1% -12%
HSBC -10% -23%
* includes WaMu
Source: CardData (www.carddata.com)

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Solvport Signs an Automated Systems Deal

OR-based ATM and kiosk service provider Solvport
will expand technical help desk services it provides to CA-based Automated Systems
America. Solvport has provided field service and phone technical support for
Automated Systems America’s ATMs over the past four years, will now provide help desk
services for the “Money Source Cash Advance System” and
marks Solvport’s first entry into servicing ATMs and kiosks in
the casino and gaming industry. Service to be provided includes 24/7 help
desk support for Automated Systems America’s cash advance kiosks and client support
terminals located in casinos throughout California.

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Dukky Introduces Gift Card Group Mailings

A New Orleans firm has developed a new direct mail platform that enables marketers
to create high perceived value gift card offers as part of a group mailing, while
monitoring individual performance online.
Dukky is currently offering marketers a 50% refund on purchase costs, if the
response rate does not equal or exceed 8%. The marketer begins by searching for a
Dukky mailer by distribution level and demographics ans selecting a Dukky mailer
that matches specific recipient requirements. Marketers upload their gift card
artwork based and purchase a position within the selected mailer, which usually
features between 9 and 39 other offers. Upon receipt of the Dukky mailer, consumers
are directed to their Personalized Dukky Webpage. Dukky’s dashboard then provides
marketers with campaign performance information in real-time. Metrics include
purchase intent, contact preferences, secondary offer selection, viral and pass
along data.

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SunTrust and Delta to Launch Debit Card Rewards

SunTrust and Delta have teamed to extend air mileage rewards to signature-based debit card purchases. This is the first time Delta has offered mileage through a check card. It is the first co-branded check card relationship for SunTrust. Three versions of the “SunTrust SkyMiles Check Card” will launch June 22nd. The “SkyMiles Classic Check Card,” with a $20 annual fee, will award one mile for every $2 purchased and 2,500 bonus miles for the first signature purchase. The “SkyMiles Platinum Check Card,” with a $55 annual fee, will award one mile for every $1 purchased, 5,000 bonus miles for the first signature purchase and a complimentary “Delta Sky Club Day Pass.” The “SkyMiles Business Check Card,” with a $55 annual fee, will award one mile for every $1 purchased, 5,000 bonus miles for the first signature purchase and a complimentary “Delta Sky Club Day Pass.”

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CARNIVAL & VIRTUOSO

Carnival “SeaMiles” cruise loyalty solutions has partnered with Dania
Beach Florida Cruise Division to offer new member benefits. Available as
a “Carnival Sea Miles” MasterCard or “SeaMiles” Chase Visa Rewards Card,
both cards offer rewards applicable to “Any Cruise Line… Any Time”
with no restrictions, blackouts or fees. The “SeaMiles” cruise loyalty
credit card program has awarded more than two billion unit credits to
its members with operations in Fort Lauderdale, Boston and Toronto.
The Cruise Division, made available through the Virtuoso Travel Network,
provides its members amenities, complimentary room upgrades, airport
transfers, special dining experiences, exclusive shore excursions and
custom itineraries while Virtuoso is composed of 300 agencies, employing
over 6,000 agents in 22 countries.

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Credit Card Issuers Have Lost the PII Battle

A new research report suggests that the financial services industry has lost the
battle to protect consumers’ personally identifiable information (PII) data. Over
100 data breach incidents containing millions of data records were reported in
just the first four months of this year. Recent instances include hackers accessing
a FAA system and the theft of laptops from the Dezonia Group. The TowerGroup report
says financial institutions must now assume that all of their clients’ and
prospects’ personal information has been compromised or will be. To combat the
problem, TowerGroup recommends that financial services institutions assume that
traditional account information such as a client or prospect’s name, social
security number, address, telephone number, date of birth and account balance are
useless as authentication factors. Instead, consider using knowledge-based
authentication and one-time passwords delivered via SMS; implement an integrated,
cross-channel fraud prevention strategy that detects and diagnoses possible use of
fraudulently obtained PII in real time and across all business practices; and
continually evaluate and evolve fraud prevention approaches because smart
fraudsters constantly change their means and tactics for breaking security systems
and stealing data.

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VISA MIF

The EuroCommerce retail association is filing its complaint against Visa
Europe in reaction to the set “Multilateral Interchange Fees” (MIF) imposed by member banks on retailers. Asserting fees of this nature led the
European Commission to rule against MasterCard in December 2007.
EuroCommerce is arguing these fees constitute an infringement on the
European competition law and the new rates, published on March 11, 2009,
are unfair. The MIF, or non-negotiable fees the merchant pays the bank
with every payment card transaction, is partially paid to others, thus
distorting bank competition. Additionally, the EuroCommerce assertion is
backing its claim with research showing pan-European debit cards, profit
included, is no more than 1 eurocent per transaction.

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First Bankcard Renewals ABA CC Deal

Nebraska-based First Bankcard has renewed its relationship with ABA
Total Business Solutions.
The credit card program is designed to provide a broad array of
competitive credit card products to banks and their customers. First
Bankcard provides more
than 650 partner banks with proven delivery strategies while maintaining
focus on the
partner brand and expanding customer relationships. First Bankcard is a
division of
First National Bank, a subsidiary of First National of Nebraska with $20
billion in managed
assets and more than 6,000 employee associates located in 35 states.

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NCR PLANT

NCR has announced plans to build its R$73 million innovation hub and
manufacturing plant in Brazil to provide a broader range of its
self-service solutions. Responding to the market requirements of Brazil,
the Caribbean and Latin America, the new facility will focus on
“SelfServ” ATM design and create nearly 250 new jobs with operations
slated to commence in December 2009. These announcements are in
conjunction with NCR’s plans to establish ATM manufacturing in Columbus,
Ga., where all North American NCR ATM manufacturing will take place,
creating 870 new jobs. Brazil is the third largest ATM market in the
world and is projected to grow 16% by 2012 while the OH-based NCR
Corporation provides its self-service solutions in more than 100 countries.

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DCS Releases CardWizard easyPIN

Instant issuer Dynamic Card Solutions announced the availability of
“easyPIN” change solution that allows portable and remote changing of PINs.
“easyPIN” makes use of an Internet or phone connection and a small
unconnected handheld smart card reader that is issued by their financial institution.
Cardholders can simply insert their EMV card into the smart card reader
and follow the instructions that prompt them to change their PIN. This can be done
through the online banking website, interactive voice response (IVR) support, or an
optical interface. The flexible design of DCS’ easyPIN means
it can be integrated into issuers’ existing customer delivery channels such as
home banking, and the solution is also compatible with standard Two Factor
Authentication (2FA) functionality, such as MasterCard CAP & Visa DPA, ensuring that the
deployed readers provide a wide range of features to cardholders.

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