ThankYou Net to Offer Prepaid Visa Cards

Citi’s ThankYou Network has partnered with Citi Prepaid
Services to introduce a new prepaid card rewards option for members of
“ThankYou Network”. The prepaid cards are available in $25, $50 and $100
denominations that can be used everywhere Visa debit cards are accepted
and feature Visa’s “Zero Liability” protection against fraudulent
charges. ThankYou Network has grown to 13 million members, who can now earn
points by making purchases with their “Smith Barney Financial Management”
account cards and by booking qualified travel on Expedia. They can also
earn even more points by shopping through ThankYou Network’s Online
Shopping Mall, which features more than 300 brand-name online and
in-store retailers.

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Payment Related Patents Go to Auction

Ocean Tomo Auctions is offering several strategic and essential patents
at the upcoming Live Intellectual Property Auction at the
Chicago Cultural Center on October 30th. Several innovative offerings
related to e-commerce systems and security
are included in the Online & Mobile Commerce category. Among them, Lot
36 allows for a more convenient and less confusing online shopping
experience by improving the interface of each step in the shopping and
check-out processes; Lot 38 relates to a system allowing a user to
complete a number of transaction types (i.e., online shopping,
securities trading, etc.), via a personal cell phone, with convenience
and security; and Lot 38a is directed to the field of social e-commerce,
allowing shoppers to form groups determined by a commonly desired
product, potentially accumulating demand and increasing buying power.
Patents in the Transactions & Financial Services category may be useful
to credit card companies; Lot 51a relates to a method for correcting
credit report errors in conjunction with processing a loan application.
Ocean Tomo Auctions is the auctions arm of
Ocean Tomo, LLC, an Intellectual Capital Merchant Banc firm.

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AEIS Discounts its Prepaid Corp Gift Cards

American Express Incentive Services’ has introduced its online store
“RewardCardStore.com”, offering a portfolio of prepaid gift cards
specifically designed to be ideal employee recognition gifts, drive
sales, and foster
strong corporate relationships. The product portfolio includes a mixture
of universal prepaid cards and card products utilizing “DirectSpend”,
patented prepaid card acceptance process that strategically directs
cardholder spend to a specific merchant or group of merchants.
The one-stop business gifting and incentive solutions available at
RewardCardStore.com were developed to appeal to the special needs of
small business customers. In
addition, the Select Shopping Card is ideal for those seeking discounted
gift cards for the holidays. RewardCardStore.com is offering the
“Select Shopping Card” at 5% off the card value now through the end of
the year. AEIS is a joint venture between American Express Travel
Related Services Company, Inc. and Maritz Inc. and provides
business-to-business reward solutions.

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NCR ATMS

NCR has secured
orders for approximately 6,000 automated teller machines from
China’s top five commercial banks which include Agricultural Bank of China, Bank of
China, Bank of Communications, China Construction Bank and Industrial &
Commercial Bank of China. NCR also achieved positive
results from small- and medium-sized commercial banks.
According to the latest report from Retail Banking Research
“Global ATM Market and Forecasts to 2013” NCR is the largest ATM
manufacturer in China and globally, as of the end of 2007. With these
most recent orders from China’s banks in 2008, NCR continues to maintain
its market leadership position in China. RBR forecasts the China ATM
market will continue double-digit growth from 2008 to 2013.

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HYPERCOM MANAGING DIRECTOR

Hypercom has appointed Samia Christine Bounaira as Managing Director, Hypercom Mexico.
Bounaira has more than 20 years of international sales and
management experience in card-based products and services. As Oberthur Technologies
Sales Director for Mexico and Central America from 2004 to present, Ms.
Bounaira directed all aspects of the company’s in-country sales and
marketing to the banking, government and transport sectors. Among her
many accomplishments, she opened the lead office in Mexico City
and in less than one year generated significant market share and doubled
sales revenues.

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PAYVISION & TRUSTWAVE

Card-not-present solution provider Payvision has partnered with Trustwave
to provide its global merchant base with
best-in-breed security and compliance services. Payvision will offer its merchant population access to additional
Trustwave technology and services to support real-time compliance. Such
services include “TrustKeeper Agent”, an on-site monitoring software that
performs policy checks and inspects for prohibited data storage on any
system in which it is installed. The new alliance will afford Payvision customers the ability to take
advantage of Trustwave’s outstanding suite of technology and services,
including its flagship “TrustKeeper” on-demand compliance management
technology, which provides the tools necessary to validate PCI DSS
compliance. Other services include SSL certificates
for e-commerce merchants and help-desk support for those organizations
requiring additional assistance to become PCI DSS compliant.

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Citi Launches Paylink & Obopay Pilot

Citi announced the launch of “Citibank Paylink for Commercial Cards” and the launch of a pilot of a new mobile person-to-person money transfer service with Obopay. “Citibank Paylink for Cards” integrates a purchasing card into a client’s accounts payable system. The MasterCard “Payment Gateway” acts as the network between Citi, the buyer and the supplier. Prior to the availability of this new service, buyers had multiple interfaces and inefficiencies in their payment processes.
Beginning this week, the Citi Obopay mobile payment service will be offered to all Citibank customers in the U.S., with a focus on Boston, Chicago, Maryland, Philadelphia, and New Jersey. Citi says this is the first time that a real-time, person-to-person mobile money transfer service with the ability to link directly to a bank account has
been offered in the U.S. By using a phone’s Web browser, SMS text messaging or the downloadable mobile application, customers can send and receive money nearly instantly needing only the mobile phone numbers of friends and family members.

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UTC Drops its Bid for Diebold

United Technologies has dropped its plans to acquire Diebold. UTC had offered $40 per share in an unsolicited bid of $2.6 billion in February. UTC says it has been frustrated with Diebold’s delay in releasing financial data. UTC say the extended refusals of UTC’s requests for management discussions and due diligence, and the scheduling of the annual meeting for November 12th were the main factors in its decision. Diebold noted that despite the current turmoil in the financial industry, the Company increased its 2008 earnings expectations on September 30th, when the company became current with its financial reports. Diebold’s second-quarter profit rose 37% to $27.2 million.

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INSIDE & CPI

CPI Card Group and INSIDE Contactless have teamed to
create the industry’s first contactless sticker product
for open-loop payments. The technology combines the
flexible “MicroPass 4003” contactless payment processor with a tuned RF
antenna in a compact, shielded prelam for payment sticker applications.
CPI has established a scalable operational process
for producing these payment stickers based upon “MicroPass” prelams
delivered from INSIDE. The sticker devices are delivered from CPI
already pre-cut from ID1 card devices and pre-personalized to allow for
fulfillment using traditional card fulfillment equipment and processes.
CPI Card Group will be delivering its first
“MicroPass”-based payment stickers to a global leader in electronic
commerce and payment services, and anticipates orders from several other
leading card issuers.

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Chase Card Profits Decline 63% in Q3

J.P. Morgan Chase reported that third quarter credit card profits declined 63% year-on-year to $292 million, but rose by 17% sequentially. End-of-period managed loans of $159 billion increased by 7% year-on-year, but up 3% from the second quarter. Charge volume of $93.9 billion increased by 5% from 3Q/07. Net accounts opened during the quarter were more than 3.6 million, down 10% from one-year ago. The managed net charge-off rate for the quarter was 5.00%, up from 3.64% in the prior year and 4.98% in the prior quarter. The 30-day managed delinquency rate was 3.69%, up from 3.25% in the prior year and up from 3.46% in the prior quarter. Merchant processing volume of $197.1 billion increased 9% compared to the year-ago quarter. Managed net revenue was $3.9 billion, an increase of 1% from the prior year. Net interest income was $3.2 billion, up 4% from 3Q/07. Chase says the increase in net interest income was driven by higher average managed loan balances and wider loan spreads. However, these benefits were offset largely by the effect of higher revenue reversals associated with higher charge-offs. For complete details on Chase’s third quarter performance, visit CardData (www.carddata.com).

JPM CHASE HISTORICAL ($billions)
3Q/07 4Q/07 1Q/08 2Q/08 3Q/08
EOP Outstandings: $149.1 157.1 150.9 155.4 159.3
Charge Volume: $ 89.8 95.5 85.4 93.6 93.9
Source: CardData (www.carddata.com)

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Allpoint Networks to Expand Overseas

Fee-free ATM network Allpoint expands internationally to 37,000 ATMs
worldwide.
Through the integration of the fast growing Bank Machine ATM network.
Bank Machine brings more than 2,500 surcharge-free ATMs to Allpoint.
Allpoint, a division of Cardtronics, provides greater access,
convenience and savings to
customers of financial institutions with limited ATM presence while
providing the institutions with the tools to compete more effectively
for customers.

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Alliance Companies Hires a TNB Exec

The Alliance Companies have hired Jay Kurian, previously with TNB, as
Managing Director for New Business Development.Kurian served as First
Senior Vice President at Town North Bank and Founding Director and Chief
Risk Officer of Town North Bank Nevada and
established the agent issuing program, TNB Card Services, for credit
unions and other financial institutions and was in charge of the P&L and
the Product Development for Credit and Debit Processing. His
leadership further guided the expansion of TNB with the chartering of
TNB Nevada and the building of a $300 million credit card portfolio.
Prior to TNB, Kurian was Vice President and director of U.S. card products
for Banco Popular where he helped launch Banco Poplar’s US mainland
entry and grow the bank from $1.4 billion to $6.0 billion. Alliance
Companies provides
partnership development and advisory services to the payments industry.

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