STUDENT PAYMENT HABITS

A recent survey from APACS reveals that the payment profiles of students
between 16 to 24 indicate that 73% have
have a debit card, which is below the national average of 84% , while
only 22% hold a credit card
compared to the national figure of 64% and of those who own a credit
card, 59% always repay the full
balance on all of their cards, higher than the national average of 55%.
Men aged 16 to 24 withdraw an average of GBP2,821 cash a year
through 86 cash machine visits, and women of the same age group withdraw
GBP2,625 a year through 70 cash machine visits. Men aged 16 to 24 make an
average of 63 payments in supermarkets
over the year, spend GBP400 in restaurants, cafes and snack bars per year,
spend GBP22 a year in shoe shops, GBP66 a year in electrical retailers and a
total of GBP99 online shopping in three transactions. By comparison,
women make an average of 77
payments in supermarkets over the year, spend GBP218 in restaurants, cafes
and snack bars per year, spend GBP83 a year in shoe shops, GBP90 a year in
electrical retailers and a total of GBP209 online shopping in nine
transactions, with 40% of men aged 16 to 24 use telephone or internet
banking compared to 34% of women compared with a national average of 49%
across the country.

Details

RevolutionCard Approaches 300K Merchants

Revolution Money has signed a deal for RBS WorldPay to offer its
“RevolutionCard” as a payment option to RBS merchant clients. The
agreement extends the “RevolutionCard” network to nearly 300,000 online
and physical merchant locations. In August, RBS WorldPay began
processing “RevolutionCard’s” PIN-based transactions for participating
merchants. Merchants will be charged absolutely no interchange fee and a
nominal 0.50% transaction fee. St. Petersburg, Florida-based Revolution
Money is part of the family of companies within Revolution LLC, which
was founded by AOL’s former CEO, Steve Case, to drive “transformative
change by shifting power to consumers.” Jason Hogg is Revolution Money’s
CEO. RBS WorldPay (formerly RBS Lynk) is the U.S. payment processing
division of the Royal Bank of Scotland Group.

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ID DATA LTD

Smart card provider ID Data Group’s ID Data Limited, has filed
at the High Court of Justice in London notification of its intention to
appoint an administrator to
protect ID Data Limited from creditor actions. ID Data has previously
announced that, in order to meet its short term
working capital and debt funding requirements, it has been seeking funds
from investors and, in parallel, pursuing the possible sale of its
operating businesses. In the light of current stock market conditions
and following weeks of economic turmoil, the Company has decided to
focus on the sale of its main operating subsidiary, ID Data Limited and
has received expressions of interest in this as well as other parts of
the Group. ID Data is a fully accredited Visa and MasterCard card
producer and card
processor with its high security bank card capabilities.

Details

XIRING 3Q/08

Security solution provider XIRING has announced a turnover for the 3rd
quarter of 2008 of 6.2
million euros in line with the company’s forecasts (XIRING had announced
an “exceptionally high” turnover of 8.7 million euros for Q3-2007). The
consolidated turnover for the first nine months of 2008 of 19.1 million
euros is up 13.5% compared with the same period in 2007 (16.8 million
euros). For the first nine months of the year, the Banking activity
posted a turnover of 9.7 million euros, in line with the company’s
forecasts (+5.7% compared with 2007), with a 3rd quarter’s contribution
of 3.7 million euros. The majority of this turnover was generated
abroad, with the continued deployment of the Xi-Sign solutions started
in 2007 in the United Kingdom. The development of the market for
securing online banking transactions continues and the “liability shift”
with respect to e-commerce payments made by credit/debit cards is being
established progressively throughout
the world, based on national schedules that should be finalized in 2010.
This went into effect in France on October 1, 2008 where liability for
fraud has been transferred to the bank that issued the card, and the
retailer is now guaranteed payment, as with face to face payments.

Details

VISA & MHLPA/NHL

Visa Canada has announced a new sponsorship of the National Hockey
League Players’ Association and the National Hockey League, making Visa
the official payment card of the NHLPA and NHL. The partnership
allows Visa to engage with Canadian hockey fans nationwide and develop
hockey-themed opportunities.s Visa’s partnership with the NHL and NHLPA
strengthens Visa’s commitment to sport in Canada. In addition to its
global sponsorships of the Olympic and
Paralympic Games and FIFA, Visa is a proud supporter of its Canadian
Team Visa athletes and is the title sponsor of Canada’s national men’s
and women’s bobsleigh and skeleton teams. The NHLPA and NHL partnership
is yet another way for Visa to create Visa cardholder opportunities or
compliment those of its financial institution clients.

Details

EFT PLUS

ST&J Retail has released
the first installations of EFT Plus, a payments solution designed to
address North American Electronic Funds Transfer (EFT) requirements and
deliver Chip & PIN compliance for merchants in Canada. This initial
release of EFT Plus is specifically
designed for retailers using IBM’s 4690 POS platform and addresses the
mandatory security standards introduced by Visa, MasterCard and Interac
standards designed to reduce fraud and administration costs for
merchants as well as protect cardholder information. EFT Plus was
developed based on focus group sessions with 4690 POS
retailers (approximately 20% of the POS installed base in North America
is 4690), and leverages their investment in 4690 technologies. The
solution delivers value to both merchants and consumers by addressing
Chip and PIN compliance standards including global interoperability and
streamlining the customer experience at the cash register.
EFT Plus has been certified in Canada with Global Payments.

Details

U.S. Cardholders Show Signs of Struggling

A new survey conducted in late August has found that 10% of Americans
are taking out more cash advances on their credit cards than in the
past. The research also showed cardholders are struggling under a
burden of high balances. The survey conducted for Standard & Poor’s
found one in five individuals surveyed indicate they are “sometimes”
(14%) or “always” (6%) unable to pay their credit card and/or loan(s)
balances each month. An additional 8% can only make minimum payment
required and another 8% either always or sometimes pay less than the
minimum. In terms of the dollar value of balances carried by credit card
users, 22% have between $5,000 and $20,000 in credit card debt, while 3%
have more than $40,000 in credit card debt. When looking at their debt
as a percentage of their available credit, 25% are at or near the
maximum limit of their primary card with an additional 20% are at or
near the limit of their secondary card. Additionally, 35% of respondents
said their mortgage was the bill they would pay first while 26% of those
surveyed said it was their credit cards.

Details

EFT PLUS

ST&J Retail has released
the first installations of EFT Plus, a payments solution designed to
address North American Electronic Funds Transfer (EFT) requirements and
deliver Chip & PIN compliance for merchants in Canada. This initial
release of EFT Plus is specifically
designed for retailers using IBM’s 4690 POS platform and addresses the
mandatory security standards introduced by Visa, MasterCard and Interac
standards designed to reduce fraud and administration costs for
merchants as well as protect cardholder information. EFT Plus was
developed based on focus group sessions with 4690 POS
retailers (approximately 20% of the POS installed base in North America
is 4690), and leverages their investment in 4690 technologies. The
solution delivers value to both merchants and consumers by addressing
Chip and PIN compliance standards including global interoperability and
streamlining the customer experience at the cash register.
EFT Plus has been certified in Canada with Global Payments.

Details

NetSpend Plans a New Subsidiary for Hispanics

Prepaid specialist NetSpend is in the process of building an Emerging
Markets Channel to target the unbanked and underbanked U.S.
Hispanic market. Under a recent MOU, NetSpend will acquire the assets of
of Procesa International. Procesa International will continue to offer
its products and services through a newly-formed NetSpend subsidiary,
and the Emerging Markets Channel will be developing new NetSpend card
products for the same market. The new NetSpend unit also plans to
initially offer an international wireless recharge and international
billpay service. This will enable the Hispanic consumer in the U.S. to
add minutes to an international cell phone or pay a family member’s bill
in Latin America. NetSpend has named Patrick Brown, founder of Procesa
International, to lead the group.

Details

Citi North American Cards Post an $873MM Loss

Citigroup reported a stunning $873 million third quarter loss for its North American Cards unit, compared to $178 million in the prior quarter, and compared to an $808 million profit in the year ago quarter, due to soaring losses. Third quarter revenues for North American cards dropped 60% year-on-year from $3.5 billion to $1.4 billion. The managed net charge-off ratio increased 262 basis points to 7.13% for North American cards from 3Q/07 and jumped 60 basis points from the prior quarter. The 90-day delinquency ratio for North American cards increased 9 basis points from the prior quarter to 2.11%, and as compared to 1.60% for 3Q/07. Citi also reported 145.3 million open accounts at the end of the third quarter in North America, compared to 149.1 million one-year ago. Purchase volume for North American cards dropped 3% to $80.3 billion, compared to $83.1 billion for 3Q/07. North American managed loans rose 3% year-on-year to $151.1 billion and flat compared to the prior quarter. Citi also reported that it also took card losses in the EMEA region and Latin America. For complete details on Citigroup’s 3Q/08 performance, visit CardData ([www.carddata.com](http://www.carddata.com)).

CITIGROUP
North American Credit Card Net Income
3Q/07: $808 million
4Q/07: $322 million
1Q/08: $537 million
2Q/08: $178 million
3Q/08: (-$873 million)
Source: CardData (www.carddata.com)

Details

Fiserv Processing Upgrades the Back-Office

Fiserv has partnered with CAPITAL Card Services to offer Fiserv
Credit Processing Services’ clients with back-office
contact center services. The combination of CAPITAL’s new state of the
art contact center integrated with Fiserv’s credit processing system
will enable personalized customer service, and add a full
range of back office enhancements, including 24 x7 bilingual
multi-channel support, fraud mitigation, collections and customized
marketing services. CAPITAL Card Services is a servicer of MasterCard
and Visa accounts for financial and non-financial institutions
nationwide. CAPITAL provides turnkey account acquisition services,
underwriting strategies, marketing, customer service, collections, and
portfolio management services.

Details

ADVENT & EXPERIAN

Experian has reached an agreement to sell its
transaction processing activities, including card
processing and business process outsourcing activities, to Advent
International and Doc@Post, respectively.
The agreed gross cash consideration is EUR203m, on a debt and cash free
basis. After taxes and other transaction costs net cash inflow is
estimated to be approximately EUR150m. Proceeds from the sale will be used
to repay bank borrowings. For the year ended 31 March 2008, revenue from
Experian’s transaction processing activities in France was EUR240m
(US$341m) and EBIT was EUR26m (US$37m). The transaction processing
activities in France will be treated as a
discontinued operation in the statutory financial statements for the
year ended 31 March 2009. Experian will continue to have a strong
presence in France, through its
Decision Analytics and Marketing Services activities, which form part of
its growing core activities.

Details