Chase Releases an Alternative Payments Forecast

Chase Paymentech’s Future Payments Now forum has presented a new report titled “Alternative Payments Forecast 2007-2012” The report indicates that U.S. online transaction volume will reach $355 billion in 2012, and that payments alternatives will represent 30% of this volume. Traditional methods will grow by 14% in the same period, with credit card volume expected to reach $156 billion (44% of total online volume) and debit almost $94 billion (26%) by 2012. While traditional payment options such as credit and debit cards continue to be of primary significance, alternatives provide payment options, some of which are aimed at under-banked consumers and to address premature abandonment of the online shopping cart. Chase Paymentech Solutions is a global payments firm and the world’s largest merchant acquirer that processed approximately 18.2 billion payment transactions, with more than $660.6 billion in annual bankcard and debit volume in 2006.

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CheckFree Announces Two New Services

CheckFree Corporation has announced a new service for financial services organizations and corporations, “CheckFree Reconciliation and Exception Management Hosted Service”. CheckFree’s “Hosted Service” provides low-cost access to CheckFree’s leading reconciliation and exception management solution, “Accurate NXG”. An intuitive, web-based interface enables easy access by any authorized user. CheckFree Electronic Commerce solutions enable financial services providers to offer the convenience of online banking, and along with billers, to offer the convenience of receiving and paying household bills online, via phone or in person through retail outlets.

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Card Charge-Offs Ramp-Up in August

Charge-offs headed north, hitting 4.77% in August topping the record for this year set in May. This is the third consecutive month that credit card charge-offs have increased. There has been concerns that the mortgage meltdown may have spilled over into the general consumer finance market. During the second quarter Citi reported that charge-offs for bankcard and private label cards declined to 4.55% compared to 4.63% in the prior quarter and 4.11% one-year ago. BofA posted second quarter credit card charge-offs of 5.20%, compared to 4.81% in the prior quarter and 3.55% one year ago. Capital One reported that the net charge-off rate for U.S. credit cards was 3.73% for the second quarter, compared to 3.99% for the first quarter and 3.29% one-year ago. (CF Library 7/19/07; 7/20/07)

CHARGE-OFFS
Jan 07: 4.33%
Feb 07: 4.39%
Mar 07: 4.44%
Apr 07: 4.60%
May 07: 4.65%
Jun 07: 4.60%
Jul 07: 4.62%
Aug 07: 4.77%
Source: CardData (www.carddata.com)

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BidPay.com Reaches Out to Online Sellers

Online payment service provider BidPay.com has announced that online sellers and third party developers can now integrate BidPay as a payment option on their checkout pages. Sellers register for an account and take advantage of a variety of new integration options, from the ability to create individual payment buttons to full access to the BidPay Direct Payment API (application programming interface). Third party developers can use the new tools to integrate BidPay into their shopping carts and eCommerce platforms. Payment information is kept at BidPay. BidPay is an online payment service and a wholly owned subsidiary of CyberSource Corporation.

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NCR Completes the Teradata Data Spin-Off

NCR has completed the spin off of its Teradata Data Warehousing business through the distribution of a tax-free stock dividend to its stockholders. NCR distributed one share of common stock of Teradata for each share of NCR common stock to NCR stockholders of record as of the close of business on Sept. 14, 2007. As a result of that distribution, NCR no longer owns shares of Teradata, and Teradata is an independent company. Beginning Oct. 1, 2007, Teradata common stock is listed on the New York Stock Exchange (NYSE) and trades under the symbol “TDC.”

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FundsTech Launches a U.S. Payroll Card

FL-based FundsTech has launched a new payroll card for the U.S. market. The Company already has deals in South Africa and Europe. The “FundsTech Cash Card” allows for the domestic and international transfer of money (replaces Western Union) which is also a market estimated to be over $100 billion annually. On a global scale, it is estimated that there are 1 billion in the working population with no bank account, a market estimated at over $100 billion annually.

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NetBank Falls Apart; ING Picks Up the Pieces

The Office of Thrift Supervision announced Friday that it closed the Atlanta-based $2.5 billion NetBank and appointed the FDIC as receiver. NetBank sustained significant losses in 2006 primarily due to early payment defaults on loans sold, weak underwriting, poor documentation, a lack of proper controls, and failed business strategies. However, ING DIRECT agreed to acquire $1.4 billion in deposits and 104,000 new customers of Netbank for $14 million. Since its inception in 2000, more than 5 million Americans have their savings with ING DIRECT, building the bank to $57 billion in deposits, $23 billion in mortgage loans and $75 billion in assets.

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Experian Introduces the FamilySecure Service

Experian Consumer Direct has launched “FamilySecure.com” to help parents and guardians monitor for identity theft that may be affecting them and their children. Through the Web site, parents and guardians can enroll themselves and their children in a comprehensive credit monitoring product that alerts them of key changes in their credit file and their children’s that could be a sign of identity theft. Parents and guardians are notified of any credit inquiries, open accounts or public records such as bankruptcies, tax liens or monetary judgments associated with them or their child’s identity. If a match is found, the parent or guardian is alerted via e-mail and information is provided regarding how to take corrective action if identity theft has occurred. If a parent, guardian or child becomes a victim of identity theft while the parent or guardian is using the credit monitoring product and fraud resolution service provided by Experian Consumer Direct through “FamilySecure.com”, Experian Consumer Direct will reimburse certain identity theft expenses up to $2 million in accordance with the terms of the guarantee. Experian Consumer Direct is part of Experian Interactive and a provider of online credit reports, scores and monitoring products delivered directly to consumers.

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FDC & MOSKOMMERTSBANK

First Data has signed processing agreements with Kazkommertsbank
subsidiary, Moskommertsbank. This will allow the bank to focus on the
development of its MasterCard portfolio and payment card business, a
significant source of the bank’s revenue. For the bank, First Data will
oversee operational and technological aspects of the bank’s credit card
division and provide issuer and acquirer processing. This will cut back on
the division’s operational costs. First Data operates in 38 countries,
serves
over 5 million merchant locations and 1,900 card issuers.
Moskommertsbank is one of top 3 leaders in real estate mortgage holders
in Russia with loan volumes above $1 billion for 1Q07, has 7 branches in
Moscow, 3 in St.-Petersburg and a branch in Volgograd, Kaliningrad,
Novosibirsk, Chelyabinsk, Nizhny Novgorod, and Perm.

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AUGUST DEBT

According to the British Banker’s Association, credit card borrowing
fell GBP 100 million while personal loans and overdrafts fell GBP 300 million in
conjunction with a gross mortgage lending increase of a mere 1% for
the month of August, 2007. These statistics are part of an overall decline
in consumer borrowing in the UK. This cyclical trend is similar to findings
for August of 2006 during which mortgage purchase approvals were
down 14% by number and 7% by value. These mortgage lending rates
were also reflected in the consumer credit realm.

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GALITT SECURITY SOLUTIONS

The “Groupement des Cartes Bancaires” has approved the GALTT’s
“KeyControl” in response to the difficulty of managing frequently
renewing passwords on the VISUCARD platform. With the platforms
often changing and renewing passwords, an EMV feature to insure
against fraud, personalization errors become increasingly common.
The “KeyControl” control host verifies personalization data on payment
cards and is the only validation tool qualified by the “Groupement
des Cartes Bancaires” for use with VISUCARD. GALITT payment
systems has more than 20 years in e-payments and covers the
transaction cycle from end-to-end with marketing and technical solutions.

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CARDPOINT & ALPHYRA

Cardpoint and alphyra have agreed on terms for a merger. The parent company
will operate under the name of “Payzone” and will allow the companies
to collaborate on the creation of a new European consumer payments
and cash distribution group. Terms of the merger stipulate that Payzone
will acquire shares of both Cardpoint and alphyra to be 59.05% owned
by alphyra Shareholders, 40.95% by Cardpoint Shareholders and
Payzone is to be led by a board drawn from both company administrations.
Furthermore, alphyra’s acquisition will be conducted
according to a sale-and-purchase agreement between Payzone and the
alphyra Vendors, the Cardpoint acquisition is to be conducted according
to a “Scheme of Arrangement” between Cardpoint and Cardpoint
Shareholders, and Payzone shares will be traded on the main market of the
London Stock Exchange at such time as the Directors deem to be best for
the Company and its Shareholders. alphyra has operations in 20 countries
and processes over 400 million transactions annually with a total value of
over 12 billion Euro through a payzone network of over 150,000 retail
POS.

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