Total Card Picks Enterprise Configuration Manager

System management provider Configuresoft has announced Total Card has selected Configuresoft’s “Enterprise Configuration Manager” for PCI DSS compliance. ECM addresses all six PCI security areas, through a continuous process which assures PCI DSS compliance 24 x 7. ECM quickly discovers, analyzes and automatically eliminates PCI compliance deficiencies such as password policy violations and vulnerable machine configurations. Rapid deployment across the enterprise enables customers to reduce the time to prepare and the cost of PCI audit by over 70%. Total Card is a third party credit card servicer.

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Citi Warns of a Kitchen Sink Third Quarter

Citigroup announced that dislocations in the mortgage-backed securities and credit markets, and deterioration in the consumer credit environment are expected to have an adverse impact on third quarter financial results. Citi currently estimates that it will report a decline in net income in the range of 60% from the prior-year quarter, subject to finalizing third quarter results. Citi says its expected third quarter results are a clear disappointment. The decline in income was driven primarily by weak performance in fixed income credit market activities, write-downs in leveraged loan commitments, and increases in consumer credit costs. However, Citi says it expects to return to a normal earnings environment in the fourth quarter.

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Small Business Owners Trim Jobs This Fall

A semi-annual survey of business owners finds that hiring plans among business owners have dropped, with three in ten business owners reporting plans to hire full and/or part-time staff in the next six-months. That is down from 34% in fall 2006, 37% in fall 2005, 35% in fall 2004, 34% in fall 2003 and 26% in fall 2002. The “OPEN from American Express Small Business Monitor” also found that healthcare is cited by one in five small business owners as the issue that will most sway their decision on the next president of the United States, followed closely by homeland security. More business owners believe the downturn in the housing market and rising interest rates have negatively impacted their business. The survey found a 5% rise in the number of business owners who believe that the downturn in the housing market has had a negative affect on their business, compared to this spring.

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Delinquency Edges-Up for the Third Month

Delinquencies for managed credit card outstandings headed north in August after falling for three consecutive months. Despite the recent credit meltdown, credit card delinquency has remained steady this year but will likely rise through the fourth quarter as more consumers get squeezed with higher interest rates. According to CardData ([www.carddata.com][1]), delinquency (30+ days) for August inched up to 4.70% of managed outstandings, versus 4.64% in the prior month and 4.22% one-year ago. Chase reported that the second quarter 30-day managed delinquency rate was 3.00%, down from 3.14% in the prior year and 3.07% in the prior quarter. BofA said its managed 30+ day delinquency ratio for the second quarter declined to 5.24%, compared to 5.44% in the first quarter and 4.73% for 2Q/06. Citi reported that overall delinquency (90+ days) declined slightly from 1.57% for 1Q/07 to 1.47% for the second quarter 2007.

DELINQUENCY
Aug 06: 4.22%
Sep 06: 4.27%
Oct 06: 4.32%
Nov 06: 4.40%
Dec 06: 4.44%
Jan 07: 4.56%
Feb 07: 4.63%
Mar 07: 4.66%
Apr 07: 4.72%
May 07: 4.67%
Jun 07: 4.62%
Jul 07: 4.64%
Aug 07: 4.70%
Source: CardData (www.carddata.com)

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

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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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