OPTEVA 520

Diebold has signed agreements to provide Union Bank with 120 of its
“Opteva 520” lobby cash dispenser ATMs for Nigerian banking customers.
Union Bank, one of the largest banks in Nigeria, has nearly 400 branches
nationwide and will increase its presence across the country with this
development. Diebold, meanwhile, provides integrated self- service
delivery and security system solutions with its more than 17,000
employees and representation in nearly 90 countries.

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CORRECTION FOR 5/12: U.S. Debit Cards

In Monday’s CardFlash the first story regarding U.S. debit cards was incorrect as VISA’s fourth quarter 2006 figure was posted as $205 billion when the correct figure was $230 billion. We regret the error. The correct headline is “U.S. Debit Card GDV Growing by 14%” instead of “U.S. Debit Card GDV Growing by 23%.” The corrected summary appears below:

VISA’s dominance in the U.S. debit card market continues as it maintains its market share at 73% in 4Q/07. Overall off-line and PIN gross dollar volume (GDV) for VISA and MasterCard debit cards is growing at an annual rate of 14%. In the fourth quarter VISA and MasterCard posted $358 billion in GDV compared to $315 billion in the year ago quarter, according to CardData ([www.carddata.com][1]). Sequentially, debit card GDV rose 5%. VISA reported $261 billion in fourth quarter GDV while MasterCard posted $97 billion. In the first quarter MasterCard reported that its debit card GDV rose 16% to $104 billion. VISA’s first quarter data will be released in the third quarter.

VISA/MASTERCARD DEBIT GDV
($ billions)
VISA MASTERCARD TOTAL
4Q/06 230 85 315
1Q/07 226 90 316
2Q/07 248 92 340
3Q/07 249 92 341
4Q/07 261 97 358
Source: CardData (www.carddata.com)

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

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BURO DE INFORMACION

Equifax has acquired a 70% share increase in Credit Report C.A. Buro de
Informacion Crediticia in Ecuador, for a 95% total ownership of the
Ecuadorian bureau. Equifax, in addition, was a founding member of the
Credit Report C.A., which was established in 2004 and has recently
proved useful given Ecuadorian consumer lending was up by 15% in 2007.
This increased investment in the bureau is part of Equifax’s strategy to
expand its global presence beyond the 14 countries around the world in
which it currently operates. Equifax has provided consumer and business
credit intelligence for over 100 years and employs nearly 7,000
associates across the globe.

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U.S. Credit Card Volume Growing by 6%

VISA gained market share in the U.S. credit card market last year at the expense of MasterCard and Discover. VISA’s share of U.S. gross dollar volume (GDV) for general purpose credit cards rose to 44.2% from 43.7% in 2006. Discover’s share slipped 70 basis points while MasterCard slipped 20 basis points. According to CardData ([www.carddata.com][1]) VISA’s U.S. credit card GDV grew by 7.5% to $942 billion in 2007 while MasterCard’s increased 5.8% to $645 billion. American Express posted $437.5 billion in 2007 U.S. GDV, a 7.5% increase over the prior year. Discover posted $106.6 billion in volume, a 7% decline over 2006. Total 2007 credit card GDV was $2.13 trillion, compared to $2.00 trillion for the prior year and $1.53 trillion in 2002. For complete details on current and historical credit card volume and market share visit CardData ([www.carddata.com][2]).

CREDIT CARD GDV 2007
VISA $942 billion 44.2%
MasterCard $645 billion 30.2%
AmEx $437.5 billion 20.5%
Discover $106.6 billion 5.0%
TOTAL $2131.1 billion
Source: CardData (www.carddata.com)

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

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OBERTHUR SCA OSCA

Oberthur Technologies has been recognized with the 2008 award for “Outstanding Smart Card Achievement” by the Smart Card Alliance
multi-industry association for its roles and leadership in the North
American smart card marketplace. Initiatives such as these demonstrate
the SCA focus on stimulating the understanding, adoption and widespread
application of smart card technology and has recognized Oberthur with
the OSCA for its innovative achievements. Oberthur is actively involved in a wide range of smart card-based products including: “SIMphonIC Flybuy; the “Dual Hybrid ID One Cosmo” card for physical and logical access; and the “VersaFOB.”

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Sub-Prime Indigo MasterCard Goes Online

OR-based Genesis Financial Solutions has launched its web page to allow non-prime consumers to apply for the “Indigo” MasterCard online, expanding accessibility of credit. Specializing in purchasing portfolio portions issuers are looking to shed, Genesis Bankcard Services provides partner banks with origination, credit card management/service, customized strategies and programs focusing on relationship management while providing customers with reasonable pricing and customer service.

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Dave & Buster’s Card Hackers Get Busted

For having hacked into cash register terminals at 11 Dave & Buster’s Inc. restaurants across the U.S. in order to acquire “Track 2” payment card information (account numbers and expiration dates), three defendants have been charged in a federal grand jury indictment. The U.S. DOJ alleges the group, which included men from the Ukraine, Estonia and Miami, around May 2007 gained unauthorized access to the cash register terminals and installed at each restaurant a “packet sniffer.” At one restaurant location the “packet sniffer” captured track 2 data for approximately 5,000 credit and debit cards, eventually causing losses of at least $600,000 to the financial institutions that issued the credit and debit cards.

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VISA Adds Transparency to Operating Rules

Starting tomorrow Visa Inc., for the first time, will make its VISA International and Regional Operating Regulations available publicly via its corporate Website. VISA also released its first calendar quarter 10-Q yesterday. In regard to the operating rules disclosure, Visa has omitted proprietary and competitive information, as well as certain details from the rules relating to the security of the network. For example, in the merchant rules, Visa has omitted authorization limits by country and processing codes which could aid fraudsters. Previously, Visa Inc. made its Visa USA Operating Regulations available to merchants and third party agents under a non-disclosure agreement. In its 10-Q VISA Inc. reported first quarter operating revenues of $1.45 billion, a 79% increase over the year ago quarter and net income of $314 million, a 74% increase over 1Q/07. On a pro forma basis, operating revenues increased 22% and net income rose 28%. VISA noted that growth in its operating revenues exceeded growth in payments and transactions volumes due to newly introduced service fees in April 2007, and changes in pricing for various services outside the U.S. since December 31, 2006. Operating expenses increased by 39% to $307 million in 1Q/08 to $1.10 billion. Following VISA’s recent IPO a $3.0 billion deposit was made into an escrow account from which settlements of, or judgments in, covered litigation will be paid. During the first quarter VISA also recorded an additional litigation provision of $285 million related to the covered litigation as a charge against income. VISA will release its first quarter operational performance data in the third quarter. VISA shares closed yesterday at $82 per share after closing at $55 per share on its first day of trading March 19th. For complete details on VISA’s first quarter performance visit CardData ([www.carddata.com][1]).

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

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DeluxeCard Agent Bank Program Launched

The Bancorp Payment Solutions Group has partnered with Deluxe Corporation offer the DeluxeCard agent bank program. The DeluxeCard program allows financial institutions to expand their current product portfolio and offer their customers a prepaid card solution with potential to drive in-branch traffic, increase share of wallet, create revenue and enhance brand recognition. The variety of Bancorp solutions, including instant issue gift cards, bulk gift card ordering, and consumer gift card programs helps financial institutions tap the $2.1 billion gift card market. DeluxeCard is one of several new programs Deluxe has introduced to help monetary institutions grow their businesses through a wide range of products and services beyond checks including consumer loyalty programs, identity theft and fraud prevention solutions, industry thought leadership initiatives and brand-building programs.

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Coinstar Investor Wants Board Changes

Shamrock Activist Value Fund (“SAVF”) has released an open letter to stockholders in CA-based Coinstar, in which it currently owns 13.3% of the outstanding shares, to promote their nominees for election to the board. The Shamrock nominees for the Coinstar Board include Eugene I. Krieger, John M. Panettiere and Arik Ahitov, collectively focal on improving operational performance and capital allocation policies. This focus is in response to figures showing, during the past 5 years, the organization has spent over $550 million in acquisitions and capital expenditures, but its “ROIC” has plummeted by over 50% from 12.7% in 2002 to 5.7% by the end of 2007. Additionally, the nominees intend to improve corporate governance, compensation practices (which the organization has only recently began to improve), and to rebuild trust/confidence with stockholders through improved communication. This improved communication includes providing more transparency to shareholders regarding the direction and plans of its fiduciaries. The nominees will be decided on at the 2008 Annual Meeting of Stockholders.

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MobiClear Names a New CEO and COO

Personal identity verifier MobiClear has appointed Stephen P. Cutler as CEO and Lt. Colonel Edward C. Pooley as COO. Cutler has a solid background in e-commerce and cyber business, as well as security and international relations. At the FBI, he was instrumental in the development of innovative international collaborative efforts in cyber investigations, as well as security, money laundering, and similar issues. Pooley is a former member of the Michigan State Bar, as well as the US Federal Bar Association. He has successfully operated several companies in very competitive business environments on the international level. Due to his efforts, he has successfully improved the operating environments within these companies and successfully improved overall business efficiency, effectiveness, and profits.

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MasterCard Foundation Funds Microfinance

The MasterCard Foundation has awarded $600,000 to six microfinance training institutes to fund 200 scholarships. According to a recent study by the Center for the Study of Financial Innovation, the greatest risk facing the microfinance sector, which provides access to financial services to low-income populations in developing countries, is the uneven quality of management and limited staff capacity. The Scholars Program will help meet this need by extending educational and training opportunities to microfinance staff at the regional and local levels. The MasterCard Foundation is an independent, private charitable foundation headquartered in Toronto, Canada. It was established through MasterCard’s customer financial institutions at the time of the company’s initial public offering, to fuel economic growth and opportunity for underserved people around the world.

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