U.S. Bank Offers U.S. Figure Skating VISA

U.S. Bank has partnered with U.S. Figure Skating to offer the “U.S. Figure Skating VISA” card. Cardholders can choose from four card designs depicting the U.S. Figure Skating logo, figure skates or the U.S. Figure Skating mascot, Snowplow Sam. The card generates support for the mission and programs of U.S. Figure Skating each time a new card is activated and repeatedly thereafter each time the card is used. The U.S. Figure Skating card features no annual fee, a low introductory rate on purchases and balance transfers, 100% fraud protection and 24-hour cardmember service. U.S. Figure Skating is the national governing body for the sport of figure skating comprised of approximately 1,425 member clubs and Basic Skills programs representing nearly 184,000 members.

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ECO-LOGIQUE MASTERCARD

The first credit card program in Canada to earn points for carbon offset credits has been launched. MBNA Canada Bank has introduced the “Eco-Logique MasterCard.” Under the new program cardholders earn points with each eligible retail purchase. The funds generated through these points will be used by MBNA to purchase carbon offsets that support environmental projects. In March, Bank of America, the parent of MBNA Canada Bank, announced a $20 billion, 10-year initiative to support the growth of environmentally sustainable business activity to address global climate change. MBNA Canada Bank has more than 500 co-branded and affinity credit card programs and is the second largest MasterCard issuer in the country.

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Online Banking Users Will Embrace M-Banking

A new report projects that by year’s end, mobile banking customers will top one million and that more than 40 million U.S. consumers will adopt mobile banking by 2012. TowerGroup says the adoption of mobile banking will be fueled by two primary factors: consumers’ increasing preference for real time, self-service transactions and their growing adoption of mobile data services and applications. The research firm estimates that up to 30% of online banking users will adopt the mobile channel in the next five years. TowerGroup expects that by 2012, approximately one-fourth of all mobile banking users will come from outside the online banking channel. However, the growth of mobile banking still faces cultural, technical and business challenges. Chief among the technical challenges are information security and consumer privacy.

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COLLOQUY LOYALTY RESEARCH

According to research conducted by the COLLOQUY loyalty team,
Canadian consumers’ participation in loyalty programs far outranks
that of U.S. consumers. The research shows that 75% of Canadian
consumers partake in loyalty marketing programs, defined in this context
as a program that recognizes and rewards the company’s best customers,
while only 39.5% of American General Adults do the same. Additional
differentiations between the two markets reflect that Canadian consumers
are more willing to accumulate points and miles, thus, exhibiting
patience over
Americans, 69% of Canadian programs offer points rewards while 55% of
American programs provide cash-back rewards and Canadians are twice as
likely as U.S. consumers to redeem rewards for friends/family. The
COLLOQUY research was segmented into different Canadian consumer
segments reflecting 96% of Affluent consumers participated in a rewards
program of some type. Additionally, 95% of Core Women , 90% of Seniors,
86% of General Adult and 78% of Young Adults throughout Canada
collected card rewards. COLLOQUY’s Research concentrates and
examines developments in the rewards realm around the world, providing
over 28,000 marketers with consulting, news, editorial, educational and
research services.

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First Data Quarterly Revenues Up 16% Y/Y

First Data reported that third calendar quarter revenues were up 16% to $2.1 billion. Card Services revenue for the quarter rose 10% to $473.2 million, compared to 3Q/06. Income from continuing operations was down 73%, but included $208 million of after-tax costs related to its merger with KKR. Commercial Services generated revenues of $1.2 billion, an 11% gain over the year ago quarter, primarily driven by strong transaction growth. Financial Institution Services generated revenue of $502 million, up 10% over 3Q/06. First Data International generated revenue of $425 million, up 28%. KKR acquired FDC on September 24th. Also effective September 24th, Michael Capellas became FDC’s new Chairman and CEO, replacing Ric Duques. Substantially all of the Company’s U.S. operations will be led by Edward Labry. FDC also announced that Tom Bell, formerly with Accenture, has been hired as EVP/Chief Strategy Officer. For complete details on FDC’s latest performance visit CardData ([www.carddata.com][1]).

FDC CARD SERVICES HISTORICAL
3Q/06: $429.5 million
4Q/06: $453.9 million
1Q/07: $443.6 million
2Q/07: $458.7 million
3Q/07: $473.2 million
Source: CardData (www.carddata.com)

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

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PHOENIX & VISTAATMS

Phoenix Interactive Design has announced the implementation of its ATMs
that utilize VISAatm terminal software with deposit automation and check
imaging. The new software provides ATM users with a variety of check
imaging and bulk-cash acceptance over a platform that allows integration
with image exchange solutions. The ATMs also provide a display of the
deposit for user-confirmation and amount verification. Other improvements
include refined amount recognition to ensure accuracy, image analysis,
scoring
and cash/check acceptance of multiple notes. These developments are
projected to save nearly $1.30 per deposit, citing a reduction in manual
effort
and time. Phoenix Interactive Design provides ATM operating software that
interfaces with ATM hardware manufacturers for self-service channels.

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Motorola Takes an Equity Stake in ViVOtech

Motorola has made an equity investment in ViVOtech, a contactless and mobile phone payment specialist . ViVOtech has more than 330,000 units deployed in 27 countries. ViVOtech’s investors include First Data, NCR, Nokia, Alloy Ventures, Draper Fisher Jurvetson, DFJ Gotham Ventures, Miven Venture Partners, and an undisclosed Fortune 500 company. In August, ViVOtech picked up NCR as a new investor as it raised more than $22 million in its third round of funding. ViVOtech recently announced that its “ViVOpay 5000” contactless payment reader is ready for use with “Visa payWave” programs in Canada, CEMEA, Europe, and Latin America. (CF Library 8/7/07)

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BLUE BAMBOO & GLOBALPLATFORM

Blue Bamboo has rolled out its H50 terminals with GlobalPlatform’s
GPC/STIP Specification for the Beijing transit card. The specification
will be used as the software platform for the terminals in merchant
retail locations and, with the partnership between Blue Bamboo and
KPay, will integrate the technology to provide the transit card. With
this, nearly 2,000 new Blue Bamboo terminals will be introduce before
2008. Blue Bamboo electronic payment technology provides wireless,
retail payment solutions while GlobalPlatform represents companies
with interests in the smart card industry from around the world.

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Better ATM Begins a Fundraising Initiative

AZ-based Better ATM Services has closed its first round of funding for a total of $1.02 million and will open another round of funding immediately. Better ATM Services has a successful pilot gift card program in place at 5 greater Phoenix, Arizona restaurants. The company also made strides recently with the certification of Diebold to dispense Better ATM Services’ uniquely designed cards using existing equipment with no add-on devices. Better ATM Services enables ATM independent sales organizations, retailers), prepaid distribution firms, transit organizations, event and entertainment venues, amusement parks as well as financial institutions to conveniently, profitably, and securely deliver prepaid cards to consumers.

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MOBICLEAR & TRAVELCARD

TravelCard Sweden has recently signed agreements to implement
MobiClear “Card Security” and MobiClear “On/Off Card Security” as
a value-adding measure to its VISA cards. MobiClear “On/Off Card
Security” allows cardholders to completely disable their cards when not
in use, guaranteeing piece of mind. The MobiClear “Card Security” solution
protects cardholders with the requirement of a four-digit PIN for entry
via their mobile phone when transactions are conducted. The solution also
provides a feature limit control allowing the customer to
determine a specified amount and, for any transaction exceeding the
amount specified, requires customer confirmation. MobiClear provides
secure identity solutions around the world to ensure safe trade over the
Internet and in retail outlets.

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TNB Purchases Five CU Card Portfolios

TNB Card Services has purchased the credit card portfolios of Gulf Coast Educators FCU of Texas, Lakes Area CU of Minnesota, Remington CU of New York, Oregon Territory FCU of Oregon, and NODA FCU of Louisiana. This series of purchases moved more than $12.3 million in outstanding balances and 10,400 card accounts under TNB’s ownership.Gulf Coast Educators FCU serves 34,000 members and three branches with assets over $250 million. Lakes Area CU serves 4,976 members with assets of $21 million. Remington CU holds assets of $27 million with 5,500 members. Oregon Territory FCU holds assets of $56 million and serves 8,200 members. NODA FCU has 3,900 members, with total assets of $25 million.

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JALCARD BIDDING

Japan Airlines has announced that it will be hosting auctions for its
JALCARD credit card for asset liquidation. The freeing up of assets
is expected to help the struggling airline stay afloat and the
relinquishment of the JALCARD credit card division will provide for
the needed capital. JALCARD has 1.9 million subscribers, generates
annual income of approximately 1.65 trillion yen and is expected to be
bid on by Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui
Financial Group Inc. and Credit Saison Co.

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