Involuntary Attrition Soars in February

Voluntary and involuntary credit card attrition have soared this year to a new high. Voluntary attrition, the number of accounts canceled by a cardholder, hit 8.88% in February, compared to 8.03% in the prior month and 7.21% one-year ago. Involuntary attrition, the number of accounts canceled by an issuer, posted a 17.25% ratio in February, compared to 16.04% in the prior month and 9.89% one-year ago.

VOLUNTARY ATTRITION
Sep 08: 6.65%
Oct 08: 6.81%
Nov 08: 6.99%
Dec 08: 7.34%
Jan 09: 8.03%
Feb 09: 8.88%
Source: CardData (www.carddata.com)

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Donatos Pizzaria Selects Veryant isCOBOL

AZ-based Veryant has been selected by OH-based Donatos Pizzaria to
implement its “isCOBOL Application Platform Suite” POS system. Donatos
devised a
phased strategy to move from its legacy COBOL application to a new
Java-based system. This plan eliminates an abrupt transition and
permits deployment of POS
terminals that will display the legacy applications alongside the newly
designed GUI interface. With isCOBOL APS as the bridge between the old
and new, Donatos can
minimize the impact of the migration by allowing users to continue using
a familiar application. It will also provide the flexibility and freedom
necessary to execute the transition plan on the company’s timetable. The
new system will present a modern GUI interface, but will still preserve
the company’s application investments and allow the old and new systems
to access the same ISAM data files.

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BillMyParents Site Gets Ready for Prime Time

ideaEDGE’s Socialwise has finalized the production version of the company’s “BillMyParents” payment system and is ready to go prime time. Launched in December, “BillMyParents” is a secure way for kids to shop online, while enabling parents to track and maintain control of expenditures. To prepare for launch, Socialwise has completed extensive testing of the “BillMyParents” youth payment system and related Application Programming Interfaces that will be integrated into popular social network applications and online e-Commerce environments. The company is launching with several leading social network application publishers/developers and online web-based casual gaming companies that cater to the teen demographic. Socialwise expects that BMP will be fully integrated with these partners within 60 days.

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AXS & HYPERCOM

AXS, the Singapore-based “Electronic Service Delivery Network” operator has selected Hypercom to provide a high security end-to-end technology upgrade for AXS’ more than 560 automated self-service kiosks. These AXS Stations will for the first time enable ATM card holders to pay for an array of services 24/7 at the hundreds of kiosks
strategically located throughout Singapore. The high speed, high security Hypercom integrated solution consists of the “Optimum T4220” Ethernet terminals embedded in each kiosk working in tandem with Hypercom’s “MegaNAC 180” network access controllers and EFT-Master electronic funds transfer server software at the back-end to
expedite direct debit transactions between the AXS data center, the
cardholder’s financial institution and the AXS Station.

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Bling Nation Adds Helms to its Board

Payment service provider Bling Nation has appointed Luke Helms,
vice-chairman at BoA, to serve on the Board of Directors.
Helms began his career with San Francisco, Calif.-based Bank of
California in 1968. Prior to his advisory role with
Bling Nation, Helms served as vice chairman of Cleveland, Ohio-based
KeyBank and vice chairman of Charlotte, N.C.-based Bank of America Corp.
and Bank of America NT&SA. In 1993, Helms became vice-chairman of Bank
of America with responsibilities that included retail banking in
California and all affiliate banks in 10 Western states.
Through its Community Payments Service, Bling Nation enables financial
institutions to more profitably and securely support payments between
their local demand deposit account (DDA) customers and their merchant
customers by bypassing the current global debit payment model and
replacing it with an efficient, cost-effective and local payment network.

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GiftCards.com Offers Monthly Fee Free Cards

GiftCards.com has issued the new “NMF Visa” gift cards with no monthly maintenance fees.
The “NMF Visa” giftcard offers customers the ability to personalize the card by adding the
recipient’s name and a personal message. There are dozens of styles to
choose from and cards can be issued in any denomination. Visa gift cards can be
used anywhere Visa is accepted and can even be used to pay bills.
Monthly maintenance fees can range from $1.00 to
$5.00 and are standard in the Open Loop gift card industry.

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GEMALTO & RBS

Gemalto has been commissioned to
carry out the migration to microprocessor EMV credit cards for the Royal Bank of Scotland to new markets in
Indonesia, Taiwan and India. The first project
commenced in October 2008 in Indonesia, with projects in Taiwan and
India to follow, and involved the conversion of the Bank’s traditional
magnetic stripe cards to EMV cards. Gemalto provides RBS with a complete
range of products and services including personalization and project
management. Fraud reduction is the major driving force behind Asia’s commitment to
EMV migration. According to the Indonesian Credit Card Association,
credit card fraud in the country amounted to 35 billion rupiah
(approximately 2.3 million Euro) in 2007. Gemalto has already
successfully completed the migration to EMV cards for 3 in 4 banks in
Indonesia, well ahead of the 2010 migration mandate set by the Bank of
Indonesia.The smooth project implementation resulted in a record
turnaround time of three months, instead of a typical industry average
in Asia of five to six months, translating into tangible operational
savings for RBS.

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tekservePOS Acquires Another POS Firm

IL-based tekservePOS has acquired POS provider Restaurants Solutions.
RSI’s solutions include POS hardware, POS software, 24 / 7 help desk
support,
repair center, and on-site and installation services serving over 4,000
quick service restaurants and dining establishments nationwide. In
addition, RSI is the official Squirrel distributor for the Chicagoland area.
In addition to offering its products and services to the hospitality
space, tekservePOS will leverage RSI’s industry-leading capabilities and
staff knowledge in the retail environment. tekservePOS plans to rollout
help-desk capabilities to support tekRETAIL Suite, its new POS software
offering.

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GIVEX & PCMS

Gift card provider and loyalty marketer Givex has been awarded
certification to “Vision BeanStore” by the PCMS Group. Vision BeanStore
is a multi-sector PoS product
developed to meet the needs of retailers from many different markets.
Businesses using “BeanStore” will now be able to sell Givex gift cards and
accept them as alternate forms of payment. Givex provides other
solutions for all
aspects of a merchant’s business including: loyalty cards, e-gift
vouchers, frequency
cards,returns cards, employee incentives, expense accounts, promotional
cards and
vouchers.

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Australian Credit Card Debt Declines Again

Growth in credit card debt in Australia dipped again in January, declining by A$700 million. Credit card volume also slipped 3% due to the weight of credit card surcharges and the economy at large. Year-on-year credit card debt growth has slowed to 5%, compared to 6% in the prior month and 10% one-year ago. According to the Reserve Bank of Australia credit card balances hit A$44.6 billion in January versus A$42.3 billion one-year ago. Credit limits now stand at A$123.6 billion, compared to A$115.3 billion in January 2008. According to the Reserve Bank of Australia there are currently 14.3 million credit card and charge card accounts in Australia, compared to 14.0 million one-year ago.

CREDIT CARD HISTORICAL
(A$ billions)
MONTH BALANCES VOLUME
Dec 07: 42.7 19.2
Jan 08: 42.3 17.1
Feb 08: 43.3 17.5
Mar 08: 43.0 17.1
Apr 08: 43.6 17.7
May 08: 44.0 18.3
Jun 08: 44.5 18.3
Jul 08: 44.4 19.0
Aug 08: 44.6 17.8
Sep 08: 44.6 19.2
Oct 08: 44.7 19.4
Nov 08: 45.3 17.6
Dec 08: 45.3 21.5
Jan 09: 44.6 16.6
Source: Reserve Bank of Australia

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