Electracash & My Payment Network to Offer the “MyPayNet”

Check processor Electracash has entered into a licensing agreement with My Payment Network to offer the “MyPayNet” service under the Electracash brand. The “MyPayNet” service is a full-featured
online payment system that enables merchants to accept a wide range of
payments. This includes invoicing and recurring payments via online
checks and credit cards. Electracash and My Payment Network will work
together to market the service to new business segments not currently
serviced by Electracash. The “MyPayNet” service is based on the proprietary and PCI audited
technology developed and maintained by My Payment Network. The service
is uniquely designed for service companies and groups that want to take
advantage of electronic payments but have different needs than those met
by online shopping cart technology.

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OTI & WOOLWORTH

On Track Innovations announced that its contactless reader was
selected by Australia’s largest retailer, Woolworths, to support its
“ePump” initiative for payment at the gas station. The “ePump”, a feature of the Woolworths’ “Everyday Money” credit card provides customers with a fast and efficient way of refueling
their vehicles at over 300 participating Caltex Woolworths/Safeway
co-branded fuel outlets across Australia using the contactless feature
of the EDM credit card. The integrated pay-at-pump solution deployed by
Gilbarco Veeder-Root nationally is commissioned and operational.
The objective of the “ePump” program is to provide further convenience
to Woolworths’ loyal customers and to help ease congestion on the
forecourt. Instead of queuing up in-store to pay for fuel, EDM credit
card holders will be able to go directly to the pump to fuel their
vehicle, with their loyalty/rewards information sent and verified
automatically.

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USA Tech Launched ePort Connect Deployment Consulting Service

Non-cash transaction provider USA Technologies has launched the “ePort Connect Deployment Consulting Service” to help vending operators grow their business. The “ePort Connect Deployment Consulting Service” draws on insights from its 15 years of experience in network and financial services for unattended point of
sale, as well as a database of 35 million unattended small ticket credit
and debit card transactions that USAT has processed to date, USA
Technologies is in the unique position to help operators deploy their
credit- and debit-card-enabled vending machines based on actual
purchasing intelligence, ensuring the best financial return. The Service utilizes a five-step process for the successful deployment of cashless vending machines, kiosks and POS terminals by skilled and experienced deployment teams. The process includes preparation, installation, settlement, reporting and service.

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DATACARD & GOLDEN SPRING

Secure card personalizer Datacard Group has entered into an agreement with Golden Spring Technology, a provider of smart label and RFID equipment, for Datacard to offer smart label package systems and contactless smart card inlay systems in the Asia Pacific region. The solutions for contactless smart card inlay production
ranges from 1500 units per hour (UPH) up to 6000 UPH. The solutions of
the smart label equipment with flip chip process ranges from 1600 UPH up
to 20000 UPH. Datacard Group offers the world’s best-selling secure ID and card personalization solutions. The company’s portfolio includes systems for high-volume card issuance, card delivery and fulfillment, secure ID issuance and passport production, plus extensive service and supply offerings. Datacard Group serves customers in more than 120 countries.

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Planet Payment and The Bancorp Bank Team

Multi-currency processor Planet Payment has partnered with The Bancorp
Bank to offer Bancorp’s merchants and third party servicers Planet
Payment’s suite of products.The individual solutions that will be made
available to Bancorp customers includes “Multi-Currency Pricing” which
allows merchants to sell more effectively
to international customers by pricing in foreign currencies on a website
or in a catalogue and accepting payment in the currency the customer
chooses; “Pay in Your Currency” that provides merchants with a powerful
customer service feature that allows customers to pay for their
purchases in the currency they know best,their own; and “iPAY®” which
offers card-not-present merchants a suite of robust
payment and business management solutions.

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GE MONEY 1Q/09

GE announced first-quarter 2009 earnings from continuing operations of $2.8 billion, down 40% from first quarter 2008. First-quarter 2009 revenues from continuing operations were $38.4 billion, down 9% year-over-year. Capital Finance earned $1.1 billion in the quarter and remains on track to be profitable for the full year.
On March 19, GE conducted a ‘deep dive’ into GE Capital that demonstrated the strength of its team and its commitment to transparency. Estimated stress-test results showed that it does not need to raise additional capital even in the Fed’s adverse-case
scenario.

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Consumers Favor Payment Cards for FSA/HSA/HRA

A new survey of “Flexible Spending Accounts,” “Health Savings
Accounts,” or “Health Reimbursement Arrangements” found that two-thirds
of the nearly 900 survey respondents indicated that availability of the
payment card influenced their decision to sign up for the benefit, while
almost three-quarters said that having a card made using their account
funds easier. The majority of consumers commented that they have
encountered few – if any – problems and know exactly where the card can
be used. Card communication, in fact, was rated as good to excellent. As
a result, 92% of the respondents said they knew where and how to use the
card – and which items are eligible for pre-tax treatment based on IRS
guidelines. In addition, 87% of respondents found it advantageous to
have point of service substantiation.

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TransFirst Certifies Hypercom Terminals

Dallas-based payment processor TransFirst has “Class A” certified Hypercom’s Optimum T4205 and T4220 payment terminals.
Hypercom’s high security Optimum T4200 product family consists of eight
powerful 32-bit multi-application devices that share the same platform,
user interface and software toolkit to maximize efficiency, application
portability and offer customers a broad range of options to serve any
market need. TransFirst currently processes approximately $30 billion
in annual sales volume for more than 160,000 merchants and more than
1,000 financial institutions.

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Hypercom, Ingenico, and VeriFone Form an Alliance

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. The
founding members have appointed the following individuals to serve a one
year term as executive managers of the alliance: Christophe Dolique –
will serve as SPVA Chairman and is EVP, Global Marketing & Transaction
Services at Ingenico; TK Cheung – will serve as SPVA Vice Chairman and
Chief Technology Officer and is the VP, Global Quality and Security at
Hypercom; and Paul Rasori – will serve as SPVA Secretary/Treasurer, and
is the SVP, Global Marketing at VeriFone.
Membership is open to all payment industry stakeholders.

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Citi Card Securitization Revenues Slip in 1Q/09

Citibank reported that Global Cards GAAP revenues declined 10%, mainly
due to higher credit losses flowing through the securitization trusts in
North America. Average managed loans declined 7%, due to lower purchase
sales across most regions and the impact of foreign exchange. In North
America, GAAP revenues declined 17% as lower securitization revenues
primarily reflected the impact of higher credit
losses in the securitization trusts. Managed revenues increased 6%,
driven by a 252 basis point increase in the managed net interest margin
to 12.61%, partially offset by the absence of a prior-year gain on Visa
shares of $349 million. The managed net credit loss ratio increased 395
basis points to 8.88% in the Citi branded portfolio and 508 basis points
to 12.40% in the retail partners portfolio. The ratio reflects higher
net credit losses, exacerbated by the decline in average managed loans.
For complete details on Citi’s first quarter performance visit carddata.com.

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TowerGroup Says is Time to Re-evaluate Risk Models

The severe contraction that the credit card industry is experiencing
after decades of business boom is, according to a new
research report by TowerGroup, a direct result of antiquated business
models used to measure risk and monitor changing consumer profiles.
TowerGroup believes it will take time for the industry to change its
business model, but that forward-thinking issuers should begin planning
for the post-recession era even as they struggle in a down economy
today. Although card issuers have standard measurements in place such as
industry-wide credit scores, they often neglect to examine the big
picture of consumers’ creditworthiness realistically. To measure credit
portfolios successfully, issuers must take a more holistic view of their
customers, looking not only at their credit scores but also their past
payment history, credit line management, debt burden, cross-sale
potential and the duration of the customer relationship.

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Capital One US Card Delivers a $2.3B Q1 Profit

Capital One reported that its U.S card business delivered a $2.4 million profit in the first quarter. But, the U.S. Card charge-off rate increased to 8.4% for the first quarter of 2009, above the 8.1% charge-off rate expectation articulated in the fourth quarter of 2008. The company added $124.1 million to allowance for loan losses in anticipation of higher expected charge-offs in 2009. Allowance as a percent of reported loans increased 36 basis points in the first quarter of 2009 to 4.8%. The coverage ratio does not include the $9.5 billion of Chevy Chase Bank loans that were added to the balance sheet in the first quarter. Economic deterioration continued at a rapid pace during the first quarter, particularly in labor markets, driving increasing delinquency and charge-off rates across the company’s lending businesses, with the exception of Auto Finance. For complete details on Capital One’s first quarter performance visit CardData (carddata.com).

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