RAPID ADVANCE & MCE

RapidAdvance has purchased Merchant Cash Express payment card
factoring as its subsidiary, the latter providing the former a platform
from which to embark on the UK market. This comes on the heels of
RapidAdvance’s Canadian market entry, expansion to which the
organization credits its reputable and fair business practices with its
customers. These customers are composed mostly of merchants looking for
business financing to support their growth, purchase new inventory,
leverage seasonal opportunities or reduce other financial obligations.
Merchant Cash Express Limited has for over 50 years provided an
alternative funding to merchants for growth capital not available
through conventional sources.

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First Data Promotes Wall to the CFO Position

First Data has announced the promotion of Phil Wall from SVP of finance, where he has served since 2002, to CFO. Wall oversaw acquisitions and alliances across 37 countries over the past six years. Succeeding Kim Patmore, who has filled the role since 2000, Wall and FDC are expecting a smooth transition, given his knowledge and experience in the industry, particularly within the organization itself. Phil’s additional experience includes his financial management roles with Equifax and with Schlumberger, combined with his advanced education, which includes a mechanical engineering degree from Imperial College and an MBA from Oxford, Brookes University. First Data processes transaction data and has operations in 37 countries, serving over 5.4 million merchant locations and more than 2,000 card issuers’ customers.

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Fair Isaac Inks a Strategic Deal with Equifax

Equifax and Fair Isaac have inked a deal to develop and sell advanced analytics and scoring solutions for businesses and consumers. Under the agreement, the two companies will jointly market and sell new “FICO” analytic products. The companies also agreed to work together to accelerate testing and roll-out of the “FICO 08” model for Equifax customers. Separately, Fair Isaac has agreed to dismiss Equifax as a defendant in its lawsuit against VantageScore and the three national credit reporting companies. Equifax and Fair Isaac have a long history of providing products that combine the Equifax credit report with the “FICO Score,” including the delivery of “ScorePower” and “ScoreWatch” through Equifax’s Personal Information Solutions business at Equifax.com, as well as through Fair Isaac’s myFICO.com web site.

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Prepaid Resources Expands its CONNECTIONS Council

Prepaid Resources resource provider for the prepaid debit card industry has compiled a team of payment experts to form its “CONNECTIONS” advisory council. These experts are to provide product guidance on law, risk, compliance, bill payment, merchant services, mobile payments, ACH, Check 21 processing, loyalty and rewards, and anti-money laundering (AML) for Program Development, Creative design, Technical Design and Cardholder Marketing. Collectively, these initiatives will provide strategic guidance for prepaid solution engineering, planning custom card program design projects and development.

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NetSpend Expands it Prepaid Management Team

Prepaid solution provider NetSpend has promoted James DeVoflaer to SVP of IT, Paige Ellis to VP of HR , Lisa Henken joins the senior management team as VP of partner services and Todd Ginsberg, previously a senior software developer, moves into a new position as application architect senior software developer for the company’s eBusiness unit. NetSpend’s proprietary processing platform allows it to support prepaid card programs end-to-end from customer acquisition and card fulfillment to customer service and risk management. The NetSpend Prepaid Card Network includes leading consumer brands and companies serving the un- banked and under-banked markets, and its strategic relationships include card issuers, EFT networks and payment card associations.

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Facecard to Generate Charity for Bonnaroo Event

Prepaid Mastercard provider Facecard has teamed up with the presenters the Bonnaroo music and comedy event opening June 13 in Manchester TN. Facecard will make a charity donation of $10,000 to Bonnaroo charities for everyone from the Bonnaroo community who signs up for a Facecard and the 1st 10,000 people to sign up for the card will automatically get $5 loaded on their card to purchase Bonnaroo merchandise. The Facecard MasterCard Prepaid Card and the Facecard MasterCard Gift Card are issued by MetaBank.

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FTC & FDIC Find a Sub-Prime Card Whipping Boy

The FTC has filed a lawsuit charging CompuCredit and Jefferson Capital Systems with deceptive marketing practices in selling credit cards to consumers in the subprime market. The FDIC also issued notice of administrative charges against CompuCredit and two banks that issued credit cards marketed by CompuCredit. The FTC alleges that CompuCredit violated the “FTC Act” by misrepresenting the amount of credit that would be available immediately to consumers, failing to disclose up-front fees, failing to disclose that certain purchases could reduce a consumer’s credit limit and misrepresenting a debt collection program as a credit card offer. CompuCredit says the claims asserted by the FTC and FDIC regarding CompuCredit’s past credit card marketing practices are untrue and without merit. The FDIC repeatedly determined over the years that the marketing materials fully disclosed fees and terms in compliance with consumer protection laws. CompuCredit says it intends to vigorously contest these unsupported allegations and is confident that it will prevail. The Company also noted that the FDIC retained CompuCredit for the express purpose of marketing credit cards to customers of a bank directly controlled by the FDIC. Specifically and ironically, the FDIC retained CompuCredit in June 2002 to serve as its marketing partner for a portfolio of the Nextbank credit card.

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WaMu to Issue a Twentieth Century Fox Card

Twentieth Century Fox Licensing & Merchandising has partnered with Washington Mutual to launch the “Fox Entertainment Rewards Card” by this fall. The new card program will provide cardholders access to entertainment-specific and special rewards. Twentieth Century Fox Licensing & Merchandising markets properties worldwide on behalf of Twentieth Century Fox Film Corporation, Twentieth Television and Fox Broadcasting Company, as well as third-party lines, while WaMu has assets of nearly $319.67 billion and currently operates approximately 2,500 banking stores throughout the US.

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InComm to Distribute ACE’s Poni Prepaid Cards

Prepaid transaction and POS solution provider InComm has established a partnership with NJ-based American Cash Exchange to distribute ACE’s “Poni” remittance cards. The “Poni” Card is a US-to-Mexico money remittance card sold in peso values that enable individuals living in the United States who transfer money internationally to purchase and instantly transfer money to Mexico. The recipient uses a card similar to an ATM card to withdraw peso transfers from over 26,000 ATM machines in Mexico. There are no hidden fees charged to the recipient or the purchaser and no bank account or ATM card is required to transfer the funds. The Poni Card also includes a free call to Mexico that enables the consumer to communicate the redemption number that is needed for the recipient to retrieve the funds. The peso denominated cards will be initially distributed with a 2000 peso face value.

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PROFIT 100

On the 20th annual “PROFIT 100” list of Canada’s fastest growing
companies, Cash Store Financial ranks 15th overall for 2008. The
organization experienced growth of 2,390%, as disclosed by PROFIT
Magazine’s “Your Guide to Business Success” June 2008 edition, and has
385 “Cash Store” and “Instaloans” branches across Canada. The “Cash
Store” and “Instaloans” act as brokers to facilitate payday advance
services, employs over 1,500 associates and is headquartered in
Edmonton, Alberta while PROFIT has over 300,000 readers nationally and
profiles Canada’s top 100 most successful companies based on growth over
a five year period with its “PROFIT 100” list.

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April U.S. Credit Card ABS Metrics Deteriorate

The charge-off rate has climbed to its highest level since the change in the personal bankruptcy regulations in 2005. Among credit card-backed securities late-stage delinquency rate also rose in April. According to Moody’s the April charge-off rate rose to 6.27%, up 31% from the rate a year ago, 4.77%. The delinquency rate rose to 4.50% from 3.70% a year ago, but was down seven basis points from the prior month. Moody’s also reports that the payment rate index fell to 17.49% in April. For the second month in a row, the average yield index on credit cards dropped from its year-earlier rate. April yield was 18.14%, down from 18.63% a year ago. Moody’s notes that there is little doubt that the credit card industry is in the midst of a challenging period and that collateral performance will get worse before it gets better. For some ABS trusts, a further weakening of the collateral performance may put downward rating pressure on some outstanding credit card ABS ratings – especially those relating to subordinate classes.

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MONERIS CFO

Moneris Solutions has announced Samir Zabaneh has been appointed to the
role of Chief Financial Officer. Bringing with him senior level
experience as a CFO in the private and public sectors at
PricewaterhouseCoopers, CIT, Q9 Networks and Fortress Investment Group,
Zabaneh is a CPA, an MBA and a member of several professional
associations/boards. Moneris Solutions employs nearly 1,800 associates,
provides payment processing solutions for payment card, wireless and
online payment services to over 350,000 merchants locations in virtually
every industry segment.

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