Cost Plus Reports PIN Pad Card Fraud

Southern California-based Cost Plus has alerted its customers of suspected EFT PIN pad tampering. Between February and April certain account and PIN numbers used at eight of their locations may have been acquired by unauthorized third parties. The Company has begun the process of replacing the PIN pad devices throughout all of its stores nationwide and expects to complete the process by the end of August. Furthermore, the Company has engaged Verizon Business/Cybertrust, a nationally recognized data security firm, to review its overall data security program. Cost Plus World Market now operates nearly 300 stores in 34 states under the names “World Market” and “Cost Plus World Market.”

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WaMu Credit Card Profits Nose-Dive in Q2

Seattle-based Washington Mutual reported that second quarter net income
for its Card Services unit sunk to a net loss of more than $175 million,
due to higher credit costs and valuation adjustments. With a significant
sub-prime credit card exposure, WaMu posted a second quarter charge-off
rate of 10.84% and a 30+ day managed delinquency rate of 7.05%.
Charge-offs for the first quarter were 9.32% and 6.49% for the year ago
quarter. Delinquency rose from 6.89% in the prior quarter and 5.11% in
the year ago quarter. Total managed receivables at quarter end remained
level at $26.4 billion. During the quarter, Card Services opened 755,301
new credit card accounts, up from 666,407 in the prior quarter.
Approximately 35% of the new accounts came through the retail channel as
the company continued to leverage its retail network. For complete
details on WaMu’s latest performance, visit CardData ([www.carddata.com](http://www.carddata.com)).

WaMu Net Income Track Record
2Q/07: $ 133 million
3Q/07: $ 66 million
4Q/07: $ 92 million
1Q/08: $ 199 million
2Q/08: ($175 million)
Source: CardData (www.carddata.com)

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ATIRApay Cards Target Credit Unions

IA-based TMG has made available payroll cards to its credit union
clientele through its pay card service, “ATIRApay.” Powered by Visa or
Mastercard, “ATIRApay” reloadable, prepaid cards have more than 40,000
U.S. employee payroll cardholders, was initially launched in July 2007
as an alternative to traditional payroll checks, provides employers a
cost-effective way to distribute employee wages, health care benefits
and incentive pay. The card is issued to the employee through the
employer’s TMG client-credit unions. TMG (The Members Group) is a
financial services organization dedicated to providing innovative
customized solutions to credit unions and financial institutions across
the country.

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BOPO CARDS

Holders of Bopo prepaid cards in Australia must use or withdraw their
remaining balances by August 15th, 2008 according to the Cuscal
financial-services firm, issuer of the Visa-branded card which will
initiate its own form of payment of unclaimed funds to Bopo cardholders
after the said date. This is a direct result of Cuscal’s issuing
partner, Bill Express, facing imminent bankruptcy which was fundamental
to the initial launch of the Bopo card nearly two years ago. Cuscal,
however, does not have full access to the bopo systems which may cause
difficulty in accessing certain data/services and has established a Q&A
web page to address possible questions of concerned consumers.

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ISLAMIC CARDS

Global wealth redistribution, electronic commerce, and population development are driving the requirement for a credit card model that serves the Islamic population. A new study predicts that the number of credit cards that fit the Islamic banking model will soar from its current base of less 1 million accounts to as many as 6 million accounts by 2012. According to the new TowerGroup report, Islamic credit cards are similar to traditional cards as payment instruments, but as lending instruments they must not violate “Shariah” – the written and interpreted code of Islam, which among other tenets rejects levying interest earned on debt, prohibits speculation, and excludes certain activities. Therefore, Islamic credit cards require a pricing alternative to interest and require scrutiny of transactions to ensure purchases are not prohibited. Three types of credit card issuers now operate in the Islamic card space: major global banks that set up separate Islamic banking companies; traditional banks converting to the Islamic model; and Islamic startups.

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ARTEMA MODULAR TERMINALS

Hypercom’s “Artema Modular” unattended payment terminal with MSC’s PIN
Pad API has received “Chip 2.0 PED Device Certification” from the
Interac Association for use within the Interac Direct Payment (IDP)
network. The payment terminal implements a multi-layered security system
to protect data throughout the transaction, a secure, metal keypad and
card reader bezel that uses a motorized or manual card reader. This
certification allows integrators to use “Artema Modular” securely in
vending machines, ticketing machines, multi-media kiosks and is in
addition to other certifications provided the device such as PCI PED,
EMV Level 1 & 2 and ZKA. MSC provides POS service and support to client
customers across Canada while Hypercom Corporation delivers solutions to
businesses in more
than 100 countries allowing secure expansion of revenue and profit.

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TransFirst and AdvanceMe Ink a Deal

Card processor TransFirst has announced a referral agreement with
GA-based merchant cash provider AdvanceMe. TransFirst’s more than 160,000
merchant customers will have access to working capital to build their
businesses — including opening new locations, remodeling, purchasing
equipment, paying for promotional programs and more. TransFirst’s
Merchant Cash Advance program will allow merchants to quickly access
funding for planned and unplanned business events in a simple and
straightforward manner. TransFirst serves traditional and
non-traditional merchants and offers
comprehensive, secure payment processing solutions for financial
institutions, independent sales organizations, healthcare and
government. For the past 10 years, AdvanceMe has provided more than $1
billion of working capital to date, to more than 20,000 businesses in
500+ industries across the country.

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Banco do Brasil & FISERV

Fiserv information management systems has partnered with the Brazilian
bank, Banco do Brasil, to help the institution concentrate on the
Brazilian-U.S. immigrant demographic with the creation of the “Federal
Savings Bank.” “Federal Savings Bank” will provide scalability and
deploy Fiserv’s “Premier” core banking system from Information
Technology, Inc. (ITI), providing mortgages, deposit accounts, “Fiserv
Credit Processing,” IPS-Sendero for enterprise risk management, Fiserv
EFT for ATM and debit cards and Fiserv Lending Solutions to immigrants.
Available for either outsourced or in-house account processing, Premier
offers products and associated consulting services for virtually every
banking function, Fiserv provides information management, electronic
commerce systems and services to the financial and insurance industries
with nearly $4 billion in total revenue while Banco do Brasil was
established in 1969 and has a total net worth of $160-billion.

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Concur Beefs-Up Travel & Expense Software

On-demand employee spend management service provider Concur is debuting
“Concur Travel & Expense”. “Concur Travel & Expense” automatically
reconciles line-item level booked travel data with actual spend,
offering travel managers visibility into all aspects of their corporate
travel spend. Concur enables clients to report on,
compare and analyze booked itineraries, corporate card spend, supplier
e-receipts, cash expenses and supplier contracted. All aspects of
employee initiated T&E spend are captured and automatically reconciled
by Concur and made available for detailed analysis on-demand, without
any messy integration of disparate systems or outside sources of data.

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TRANSNET

Precidia Technologies IP payment and networking software/devices
announced its “TransNet” payment engine application has been certified
with Posera Software’s “Maitre’D” restaurant system, allowing
restaurants using the system to deploy the payment solution. “TransNet”
router-based payment engine application integrates with the Maitre’D
system to provide fast, secure transactions routed to any certified
transaction processor and helps merchants reduce costs. Compliant with
Payment Industry Best Practices (PABP) and PCI DSS, “TransNet” also
maintains settings to help merchants consistently meet PCI compliance
and operates on a secure payment router. Precidia Technologies designs
and manufactures IP payment and networking products for organizations in
more than 85 countries.

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Yodlee Expands PayToday Availability

Yodlee has made available its “PayToday” expedited, same-day, electronic payments solution to any financial institution’s online banking website, providing an opportunity to generate fee revenue. The service is designed for payment to hundreds of credit card, mortgage, auto finance, insurance, utility, cable and wireless organizations in response to research demonstrating over 35% of U.S. consumers use expedited payments, 75% of the top 50 U.S. banks offer, or are planning to offer, expedited payments and fee revenue from expedited payment services is projected to grow to $1.7 billion by 2009. Yodlee “PayToday” is compatible with existing online banking and bill payment services and provides end-to-end electronic execution of transactions to lower costs and increase bank profits. Yodlee provides payment solutions to over 100 financial institutions worldwide.

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Fiserv CVE to Utilize Microsoft CRM Platform

Fiserv information technology services has announced its “Customer Value
Enhancement” (CVE) group will provide banking specific configurations
utilizing the “Microsoft Dynamics Customer Relationship Management”
(CRM) 4.0 platform. Implementing “Microsoft Dynamics CRM” provides “CVE”
customers with role-based customizable templates, management dashboards,
best practice processes, proven change management consulting and blended
learning offering. Fiserv is headquartered in Wisconsin and reported $4
billion in total revenue from continuing operations for 2007.

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