CTA and I-GO to Intro a Dual Purpose Card

The Chicago Transit Authority and I-GO Car Sharing are cleared to launch
a joint smart card that can be used to gain access to I-GO vehicles and
ride the CTA. With board approval, CTA and I-GO will commence
development of the joint smart card. The program is expected to be
launched by the end of the year. Individuals who wish to register for a
Chicago Card Plus and are eligible for an I-GO membership will have the
opportunity to participate in the program. Customers who register online
for both services will receive a single card that can be used to ride
the CTA and unlock their reserved I-GO vehicle.

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CITI GLOBAL 3Q/08

Citigroup reported that revenues for its global card business declined 40% in the third quarter. In North America revenues declined 60% mainly due to lower securitization results and in Latin America third quarter revenues dropped 34% primarily due to the absence of a gain on the sale of Redecard. Meanwhile, Citi’s Asian card business revenues jumped 24% and in the EMEA region card revenues were 5%, year on year. In North America, credit costs nearly doubled, reflecting higher net credit losses, up 68% or $311 million. In EMEA, credit costs increased 33%, in Latin America, credit costs increased 65% and in Asia, credit costs increased 51%. Worldwide credit card purchase volume of $111.1 billion was flat in the third quarter compared to one year ago. The number of open credit card accounts fell slightly to 182.7 million at the end of 3Q/08. For complete details on Citi’s third quarter performance visit CardData (www.carddata.com).

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Radiant Payment Services is Launched

GA-based e-payment provider Radiant Systems has launched Radiant Payment
Services with a focus on delivering payment processing services to U.S.
hospitality and retail businesses. Radiant Payment Services will
continue expanding the recurring
services model, which currently comprises a third of Radiant’s revenues.
More than 5,000 stores and restaurants are already using Radiant Payment
Services. Radiant Systems is a
global provider of technology to the hospitality, retail, and
entertainment industries. Radiant’s point of
sale hardware and software solutions have helped to redefine the
consumer experience in more than 100,000 restaurants, retail stores,
stadiums, parks, arenas, cinemas, convenience stores, fuel centers and
other customer-service venues.

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SCM & XIRING

Remote transaction provider XIRING and SCM Microsystems have partnered to develop mobile eHealth smart card
terminals for the German healthcare system. With this agreement, SCM will sell the mobile terminals
in Germany through its existing distribution channels and Value Added
Partners. XIRING brings strong technical and field experience to
the collaboration, highlighted by its robust mobile platform for
healthcare professionals that is already deployed in France. SCM
Microsystems has developed several generations of proto-type and
market-ready desktop eHealth terminals based on its close, multi-year
collaboration with gematik, the German healthcare organization
overseeing the country’s eHealth scheme, and the German Federal Office
of Information Technology, BSI (/Bundesamt für Sicherheit in der
Informationstechnologie/), in charge of defining security requirements
for the program. XIRING and SCM are uniquely qualified to address the
demanding technical specifications and strict security targets for
mobile terminals in the German program. Beginning in
late 2008, new electronic health insurance cards will be distributed to
82 million German citizens, creating a market for compatible mobile
eHealth terminals that facilitate at-home patient consultation and
treatment by Germany’s 310,000 healthcare professionals and 130,000
physiotherapists.

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Big Banks Don’t Understand Small Biz

A new report from Aite Group reveals that large banks have still not be
able to serve small businesses including their abilities to understand
business needs, customer service, and serve small businesses at the
right target cost point. Banks admit to weaknesses in areas such as
cross-selling, achieving high online adoption rates, serving
small-business customers through an integrated sales/service model and
customer service, and acknowledge a need for improvement. They feel
their performance is far stronger when it comes to offering the right
online capabilities and building customer trust. Most large banks
recognize the need to further enhance their online capabilities with
functionalities like the ability to create or view spending and income
trends, develop forecasts, and categorize card transaction data.
However, they must also improve their customer service, better integrate
their technologies and share best practices across the bank.

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FVC & VASCO

VASCO Data Security International announced that Value Added Distributor
FVC has become VASCO’s first authorized
training center and certified partner for “VACMAN Middleware” and
“Identikey” in the Middle East. FVC distributes
VASCO’s “DIGIPASS” technology, VACMAN authentication software, aXs GUARD
and Identikey through its channel network enhancing the availability of
VASCO’s authentication solutions across the Middle East, Northern Africa
and Pakistan. As a certified partner, VASCO offers FVC the leverage to enhance its
core offerings and strengthen their relationships with valued customers.
The partnership allows VASCO to bring added value to their end-users
through FVC’s market knowledge, expertise and ability to customize
solutions and services. VASCO is a leading supplier of strong authentication and e-signature
solutions and services specializing in Internet Security applications
and transactions.

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Big 3 Charge-Offs Average 5.83% for Q3

Credit card charge-offs for the nation’s three largest issuers, Chase, BofA and Citi jumped again in the third quarter, now approaching an average of 6.00%. BofA posted third quarter charge-offs of 6.40%, compared to 5.96% in the prior quarter and 4.67% one-year ago. However, BofA’s 44 basis point sequential increase in charge-offs was an improvement over the 77 basis point jump in the second quarter. Citi reported 3Q/08 charge-offs of 6.10%, compared to 5.72% in the prior quarter and 3.86% one-year ago for its Visa and MasterCard domestic programs. Citi’s 38 basis point sequential increase in charge-offs was also an improvement over the 79 basis point jump in the second quarter.
Chase, the nation’s largest issuer, posted third quarter charge-offs of 5.00%, compared to 4.98% in the prior quarter and 3.64% one-year ago
However, Chase’s two basis point sequential increase in charge-offs was far better than the 61 basis point jump in the previous quarter. For more details on third quarter credit card performance visit CardData ([www.carddata.com](http://www.carddata.com))

Credit Card Charge-Offs
3Q/07 4Q/07 1Q/08 2Q/08 3Q/08
BofA 4.67% 4.75% 5.19% 5.96% 6.40%
Chase 3.64% 3.89% 4.37% 4.98% 5.00%
Citi 3.86% 4.30% 4.93% 5.72% 6.10%
Source: CardData (www.carddata.com)

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Meta Payment Systems Joins PCI Council

Meta Payment Systems has joined the
PCI Security Standards Council as a new “Participating Organization”.
As a Participating Organization, Meta Payment Systems will now have
access to the latest payment card security standards from the Council,
be able to provide feedback on the standards and become part of a
growing community that now includes more than 500 organizations. In an
era of increasingly sophisticated attacks on systems, adhering to the
PCI DSS represents an entity’s best protection against data criminals.
By joining as a Participating Organization, Meta Payment Systems is
adding its voice to the process.

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eCommLink and VAT Target Payroll Cards

Prepaid processor eCommLink and OR-based stored value solution provider
Virtual Automated Technologies have partnered and integrated platforms
to offer prepaid solutions for the payroll and incentive markets.
The first programs that eCommLink will process for VAT are prepaid
payroll cards to enable businesses to offer direct deposit to their
employees who do not have a traditional bank account Prepaid debit
cards for multi-level marketing commission payments, payday loans, and
consumer rebate and incentive programs will also be offered through this
partnership.

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INSIDE & ACT

INSIDE Contactless was recognized by contactless technology authority ACT Canada
as winner of its “Lorne Boates Award”. The INSIDE MicroPass contactless platform was chosen by Canadian issuers
and card manufacturers because it was fully certified, secure, and
available in abundant quantities to meet aggressive time-to-market
deadlines. Coupled with the platform’s proven performance in global
markets, INSIDE MicroPass has emerged as the platform of choice for
contactless payment in Canada. MicroPass platforms already power
thousands of contactless consumer transactions in Canada’s grocery,
restaurant, theater, gas stations, and retail outlets.

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WINCOR NIXDORF CENTER

Wincor Nixdorf is to open a prestige new business support centre and help desk in
Dartford with 200 staff to provide IT services to high-street retail names
from Drake House, Crossways Business Park, Dartford.
The company is relocating from
its existing office, Jupiter House at Orbital Business Park in Dartford,
as well as transferring operations and personnel from other regional
business centres and taking on new staff.

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Big 3 Outstandings Rise 5.3% for 3Q/08

Credit card outstandings for the three largest U.S. card issuers, Chase, BofA and Citi, grew by an average of 5.3% in the third quarter. The growth was led by Chase, posting a 7% gain over 3Q/07 to $159.3 billion. BofA was only up 1% to $183.4 billion, while Citi posted a 2.5% increase to $96.0 billion, according to CardData. The three largest issuers have a 53% collective market share in the U.S. market with $438.7 billion in end-of-period 3Q/08 outstandings. American Express will report third quarter results this afternoon. Visa will report third quarter financial results and second quarter card statistics next week. MasterCard is set to issue its full third quarter performance report the week of November 3rd. For the latest third quarter results visit CardData ([www.carddata.com](http://www.carddata.com)).

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