GIVEX AUSTRALIA

The Givex Corporation gift card and loyalty transaction processor has
announced its expansion into the Australian market. Providing gift and
loyalty card programs, Givex intends to expand its Australian market
presence through local retailer partner programs for which the
organization will offer transaction processing power, contstant access
to tracking, support, card marketing, fulfilment services and network
communication methods. Furthermore, the Givex card solution will allow
merchants to use the cards across all aspects of their business and
provides its retention/prepaid technological solutions to partners in
over 35 countries.

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Identity Confidence Index Rises in 2007

A survey commissioned by the Identity Theft Resource Center and shredder manufacturer Fellowes indicates that 65% of respondents feel they are vulnerable to identity theft, up from 57% in 2007. This new research is part of a long-term awareness initiative called “Americans’ Identity Confidence Index,” which gauges how consumer perceptions of identity theft and specific preemptive behaviors change over time. Through the index, Fellowes and the ITRC annually survey respondents on five questions pertaining to vulnerability, and report on overall changes. This year, the index remained consistent with last year’s findings, indicating consumer confidence is still down compared to 2006 when it was first measured. Americans still remain confused about how identity theft occurs. Thirty-five percent believe identity theft occurs through online exchanges, when in reality it only accounts for 12% of the crime. Only 7% of Americans believe their family and friends are responsible for the crime, even though national statistics show that 17% of all identity theft cases involve family and friends. Regarding methods of protection, 70% of women report using tools and solutions to protect themselves from identity theft, compared to just 62% of men. Women are also more likely than men (90% vs. 84%) to keep a closer eye on their bank accounts, and avoid giving out personal information over the phone (79% vs. 70%).

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AURIEMMA EXEC

Auriemma Consulting Group(ACG) has appointed Matt Simester director of
its UK office to oversee European client activity. Catering to the
payments and lending industry, ACG has been increasing international
business with most leading issuers in the United Kingdom. Prior to ACG,
Mr. Simester held senior roles at Barclaycard and Affinion
International. ACG has expanded its practice into additional card-based
and lending vehicles providing a full spectrum of products to US and
international businesses.

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Asta Funding’s Q1 Revenues Inch Up 4% Y/Y

NJ-based collection specialist Asta Funding reported that revenues for the first quarter were up 4% to $33.9 million. The Company reported a net loss for the quarter of $7.7 million, compared to net income of $12.6 million for 1Q/07. Asta says with regard to its large portfolio purchase, consummated a little over a year ago, its actual collections were slower than its original expectations and it incurred a significant impairment of approximately $30.3 million. This is a result of a variety of factors, including the effects of the economic downturn. Net cash collections from collection of consumer receivables acquired for liquidation was $44.9 million for the second quarter, versus $62.2 million in the prior year’s quarter. Net cash collections from collection of consumer receivables acquired for liquidation was $95.0 million for the six months ended March 31st, compared to $104.1 million in the prior year’s period. Net cash collections represented by account sales of consumer receivables acquired for liquidation was $4.9 million or 9.8% of net cash collections in the quarter, compared to 18.3% in the second quarter of fiscal 2007. For complete details on Asta’s latest results visit CardData (www.carddata.com).

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ACCENTURE LAB

Accenture has opened a new facility at its research and development
technology lab, the “Accenture Payments Innovation Showcase,” to host a
workshop for 150 global organizations in Sophia Antipolis, France
dedicated to innovation in global payments. The lab will examine mobile
communications, point-of-sale technology, bank-to-corporate
connectivity, processing, process models, biometrics, regulation and
security to demonstrate how businesses can drive innovation, reduce
costs and improve quality through new technologies. Such technologies
include mobile payments provisioning, Near Field Communications,
biometric identification, POS scenarios, mobile banking and SAP Payment
Engines. Accenture employs 178,000 in 49 countries and generated net
revenues of US$19.70 billion for the fiscal year ended Aug. 31, 2007.

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USA Technologies G7 ePort Takes-Off

Wireless cashless payment processor USA Technologies’ “ePort G7” has been successfully launched, with orders for 8,000 terminals and hardware sales estimated to be $3.5 million. The ePort G7 provides a wireless, cashless transaction solution for vending machines that combines traditional mag-stripe and RF payment capabilities with the ability to accept Gift, Stored Value and Loyalty programs. The G7 operates with MasterCard’s PayPass, American Express’ ExpressPay, Visa’s Contactless, Chase Bank’s Blink, and Discover’s Network Zip Contactless system. The G7 also has the capability to execute remote, ‘over the air’, software updates via the USALive Network, allowing ePort customers to upgrade capabilities and leverage new services within thousands of locations in a rapid, cost effective and efficient manner.

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LASERCARD

Having defined the Middle Eastern region as an area of strategic focus
for the growth of secure ID solutions, LaserCard has received a $2.9
Million order for a Saudi Arabian National optical smart card ID
program, bringing the organization’s program total to $4.7 Million just
for 2Q/08. The Saudi Arabian cards will be continually issued through 40
offices in cities throughout the Kingdom and to which LaserCard has
supplied approximately $16 million of cards, software, hardware and
services since the program inception in 2003. LaserCard provides secure
ID solutions to governments and commercial clients around the world.

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Gift Cards Reach Critical Mass in the U.S.

A new survey has shown that 90% of American adults who responded to an online survey purchased or received a gift card in the previous 12 months and 60% did both. According to a survey commissioned by First Data, birthdays and Christmas are the two most common occasions to give gift cards. Among gift card purchasers who purchased gift cards that can only be used at one retailer, 68% bought at least one gift card as a birthday gift, while 61% bought at least one card as a Christmas gift. The majority of gift card purchasers (88%) bought more than one card. On average, consumers who purchased cards that can be used at a single retailer bought five gift cards in the previous 12 months and spent an average $46 on each card. Gift card recipients spent an average of $29 over the original value of the gift card. Top reasons why respondents purchase gift cards include that the receiver can buy what they want (72%), followed by the convenience of purchasing (43%), flexibility in redeeming a gift card (38%), and in general, not knowing what to buy the receiver (33%).

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MARCH DEBT

Credit card outstandings rose in March by GBP 400 million to a record
GBP 55.1 billion. This is the third consecutive month of growth
following several monthly declines in 2007. Year-on-year credit card
outstandings (not seasonally adjusted) were only up 2%. According to the
The Bank of England, the increase in net consumer credit in March (GBP
1.2 billion) was below that in February and below the previous six-month
average. Net other loans and advances increased by GBP 0.9 billion,
lower than the February increase. The annual growth rate of consumer
credit rose by 0.2 percentage points to 6.7%; the three-month annualized
growth rate rose by 1.4 percentage points to 8.6%.

NOTE: Chart does not include about GBP10 billion from specialist
lenders, retailers, and insurance companies. SOURCE: Bank of England

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Target’s Q1 Credit Card Revenues Soar 20%

Target reported that its total credit card revenues for the quarter ending May 3rd increased nearly 20% over the year-ago quarter as late fee and other revenue soared 22% and finance charge revenues increased 20% while third party merchant fees rose 13%. Earlier this month, Target and Chase announced a deal under which Chase will invest in Target’s credit card receivables. Credit card outstandings for the quarter increased 29% year-on-year, topping $8.42 billion. Delinquency (60 days+) for 1Q/08 increased to 4.2%, compared to 4.0% in the previous quarter and 3.2% one-year ago. Charge-offs, as a percentage of period-end receivables, decreased to 7.0% for 1Q/08, compared to 6.4% in the prior quarter, but down from 7.7% one-year ago. For complete details on Target’s latest performance, visit CardData ([www.carddata.com][1]). (CF Library 5/6/08)

TARGET CARD LOAN HISTORICAL
1Q/07: $6.510 billion
2Q/07: $6.906 billion
3Q/07: $7.652 billion
4Q/07: $8.624 billion
1Q/08: $8.420 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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LEVEL FOUR

Level Four, an open standards ATM software developer, conducted a survey
of 50 attendees at the European ATMs show in mid-April 2008
demonstrating nearly 22% of European banks intend on alleviating ATM
downtime over the next 12-18 months. Among problems contributing to ATM
downtime is unreliable network availability, resulting from changes to
the network such as migration to the Windows operating system, and
lacking customer services, which 21% of respondents intend to address
over the next 18 months. Additional findings of the survey show 17% will
be pursuing/executing a multi-vendor strategy, 16% plan to upgrade to
new IT infrastructures and 16% plan to integrate their ATM channel with
other banking channels. In response, Level Four encourages the banks to
better manage/control their networks with intelligent ATM monitoring.

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FNIS and Elan Financial Services Team

Fidelity National Information Services has signed an agreement with Elan Financial Services to provide its cardholders of both MoneyPass and FNIS’s Intercept with access to nearly 15,000 ATMs across the U.S. Fidelity National Information Services is a provider of core processing for financial institutions; card issuer and transaction processing services. MoneyPass is a network of Elan Financial Services, a provider of complete outsourced solutions, with a focus on payments and ATM and debit card processing for financial institutions, independent sales organizations (ISO) and retailers.

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