FIS and CUNA Create a New CU Fraud Service

Fidelity National Information Services and CUNA Mutual have teamed to create a technology solution for credit unions that will allow for more efficient and secure transfer of the plastic card fraud data needed to activate an insurance claim. The companies said that credit unions are experiencing greater operating costs and tasks related to managing plastic card fraud data and claims. Due to the large number of data breaches, the incidence of fraud continues to grow at a rapid rate. Without the CUNA Mutual and FIS integration, credit unions must manually capture, enter and transfer fraud claims data and reports between the companies. FIS and CUNA estimate the new card services capability will save the credit union approximately 20 minutes of administrative data processing time per claim. The new service is available to approximately 2,300 credit unions that partner with both CUNA Mutual and FIS for their plastic card programs.

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hhgregg Extends Circuit City Card Program

IN-based electronics retailer hhgregg will accept Circuit City gift
cards until April 1. hhgregg will accept
Circuit City gift cards that, upon verification of the gift card
balance, can be applied toward any hhgregg purchase. The gift card value
will be good toward up to 20 percent of the total hhgregg product
purchase price and is not available for use on hhgregg.com. hhgregg
currently operates 108 stores in Alabama, Florida, Georgia, Indiana,
Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

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NCR Introduces APTRA Deposit Gateway

NCR has launched the web-based “APTRA Deposit Gateway” software as a
service that enables financial institutions to perform check image
processing for envelope-free deposits made at the ATM. The solution,
including server hardware and application software, will receive check
images and transaction details captured at the ATM, consolidate the
transactions and provide the financial institution with online access to
view check images, make corrections, generate transaction reports and
send image cash letters electronically. Through the SaaS model,
financial institutions will be provided with online access to this
system and enables financial institutions to go-to-market
quickly with minimal upfront investment or risk, by relying on NCR’s
hosted infrastructure.

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TNB Card Processing Signs Carter FCU

TNB has purchased the 1,700 card portfolio of LA-based Carter Federal
Credit Union. Carter Federal will tap TNB’s portfolio
consulting team to evaluate the card program and develop a strategic
plan that will enable it to reach 15% of growth in 2009. TNB will assess
the risk of the portfolio and optimize it by implementing changes to
pricing, product, and credit lines to ensure risk is properly balanced
with the credit union’s threshold. Carter Federal will also implement
TNB’s Rewards2U® loyalty program to increase card usage and
competitiveness, as well as offer the “MasterCard Family Account”, which
will enable it to reach younger “Gen Y” family members. The credit union
has also committed to being more proactive in marketing its card by
leveraging TNB’s marketing efforts, which include campaigns for
acquisition, usage, and retention. Carter FCU holds !40 million in assets.

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Dynamic Card Solutions Revenues Up 23%

Dynamic Card Solutions saw a 23% increase in revenue in 2008. During
the year, DSC issued 72 new instant issue CardWizard software licenses
and saw its customer base expand to 442 financial institutions.
Dynamic Card Solutions is an instant issuance
provider for Visa and MasterCard debit cards in the United States. The
company offers fully integrated solutions that allow financial
institutions and retailers to quickly and securely issue ATM, debit,
credit and prepaid cards instantly at branch or store locations.

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ASI’s iMIS Earns PCI-DSS Level Five

Web-based software provider Advanced Solutions International has
obtained level five service provider compliance with the Payment Card
Institute Data Security Standards (PCI-DSS) in support of its “iMIS”
solution. ASI is the developer of “iMIS”, an upgradeable, software
solution for managing associations, membership, non-profits and
fundraising. “iMIS 15” leverages
Microsoft’s .NET development platform to provide a flexible and open
web-based solution.ASI conducted the
self-assessment process of review and implementation of policies,
procedures and technologies to meet the 2009 PCI Compliance
requirements. Level five is the highest level, and applies both to iMIS
and to ASI hosting services.

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U.S. Business Cycle Indicators Sluggish

The Conference Board’s “Leading Economic Indicator” increased in December while the “Coincident Economic Index” and the “Lagging Economic Index” declined. However, the U.S. “LEI” only increased a mere 30 basis points due to the continued and very large positive contribution from real money supply. The Conference Board also noted that the yield spread also contributed positively to the “LEI.” Since June, the “LEI” has fallen 2.5%, faster than the 0.9% decline during the previous six months
through June 2008. In addition, the weaknesses among the leading economic indicators have remained widespread. The “CEI” fell sharply in December, amid a further contraction in industrial production and employment. The “LAG” decreased less than the “CEI” this month, and as a result, the coincident-to-lagging ratio fell again.

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AmEx U.S. Card Charge-Offs Soar to 6.7%

American Express posted an unprecedented 6.7% managed charge-off rate
for its U.S. Cards business, nearly double the year ago ratio. Fourth
quarter net income for U.S. Cards was $4 million, compared to $7 million
for 4Q/07 and $244 million for the prior quarter. Total revenues net of
interest expense for the fourth quarter decreased 13% to $3.2 billion,
driven by lower cardholder spending as well as lower securitization
income. Delinquency also grew significantly from 2.8% in 4Q/07 to 3.9%
in 3Q/08 and 4.7% for 4Q/08. Charge-offs on average U.S. card loans rose
to 6.7%, compared to 5.9% for 3Q/08 and 3.4% for 4Q/07. AmEx says
overall cardholder spending declined 10% year-over-year, or 5% adjusting
for foreign exchange rates. International Card Services reported
fourth-quarter net income of $36 million, compared to a net loss of $68
million a year ago. Global Commercial Services reported a fourth-quarter
net loss of $18 million compared to net income of $110 million a year
ago. For complete details on American Express’ fourth quarter results,
visit CardData (www.carddata.com).

American Express U.S. Card Metrics
Charge-Offs Delinquency
4Q/07: 3.4% 2.8%
1Q/08: 5.3% 3.7%
2Q/08: 5.3% 3.3%
3Q/08: 5.9% 3.9%
4Q/08: 6.7% 4.7%
Source: CardData (www.carddata.com)

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Ocean Tomo to Auction Payment Related Patents

Ocean Tomo Auctions announced the immediate online availability of 81 lots from its Spring 2009 Live Intellectual
Property Auction Catalogue to be. The Lots being offered for sale on March 27 include a wide variety of
innovative and attractive collections of intellectual property. The Social Networking
category, for instance, includes a Lot of patents disclosing a method for
facilitating meetings between unknown users with similar interests.
Given the popularity of social networking, this Lot will be particularly
applicable for those accessing social networking platforms through a variety of mobile
devices. IP assets are grouped into 22 categories including: Electronics &
Handheld Devices; Web Based Systems & Services; Networking; Memory; Computer Systems &
Hardware; Digital Media; Optical Networking; Semiconductors; Online & Mobile Commerce;
Telephony; Copyright Media Library; Social Networking; Information
Management & Data Systems; Wireless Communications; Wireless Communications & Telemedical
Systems; Power Control Systems; Display Technology; Financial Services;
Entertainment & Gaming; Security & Authentication Systems; Smart Cards; and
Location Based Systems & Logistics. Ocean Tomo provides financial
products and services related to Intellectual Property financial & survey expert
testimony, valuations, investments, risk management and transactions.

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OTI E-ID

Smart card provider On Track Innovations
has a signed a contract with the Registro Civil of the Government of Ecuador to launch a limited
scale pilot project for
the country’s National eID system, which will serve as the first stage
of the national eID system. The project includes issuance of new
biometric-based electronic ID cards and other public certificates
(birth, death, marriage, etc.) for the citizens of Ecuador.
OTI will supply its end-to-end turnkey solution, based on its
proprietary state-of-the-art, field-proven eID “Magna” platform. The
project includes supply of both stationary and mobile stations for data
enrollment, creating a central registry database and issuing
contactless, highly-secured smart ID cards. The solution also
incorporates a Biometric Automatic Fingerprint Identification System
(AFIS), which detects and prevents multiple registration attempts. The value of
this first stage project to OTI is estimated at $4 million, with
deliveries scheduled for the first half of 2009.

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