CONSUMER STUDY

Research conducted by the Nationwide Building Society has revealed
that 69% of credit card consumers do not know the order of their
payment allocation. Among those polled, 66% seek a card that allocates
repayments to the most expensive debt first, yet the average consumer
keeps the same credit card for six years, regardless of the order of
allocation. This factor is what costs consumers GBP 500 million each
year. Among the 69% who are unaware of the correct allocation,
18% thought the longest outstanding debt is paid off first, 12% thought
items with the highest interest are paid off first, 9% thought they get to
choose which items are paid off first, 4% thought the most recent items
are paid off first, and 26% simply did not know.

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DATACARD & ACONITE

To offer customers EMV migration, pre-paid card solutions, and
enterprise card management, Datacard Group and Aconite
Technology have announced a partnership. The solutions of the new
partnership are designed for streamlined integration with companies’
existing host systems. Existing solutions to be combined include
Datacard® Affina® Issuance and Affina® Enterprise software solutions
and Aconite’s EMV Script Processor (ESP), EMV Transaction Enabler
(TRxE) and Pre-Paid Value Manager (PPVM). Datacard Group serves
customers in more than 120 countries while Aconite offers smart card
technologies.

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MEPS & ACI

The Malaysian Electronic Payment System (1997) Sdn Bhd (MEPS)
has extended its relationship with ACI Worldwide through the completion
of “BASE24 Release 6” software upgrade for electronic payments. The
completion of the software upgrade will allow MEPS to provide cross-
border ATM services and meet compliance with the ATM and e-Debit
switching network. ACI Worldwide currently serves more than 800
customers in 84 countries. MEPS provides shared banking services for
networks, electronic cash payments, such as e-Debit, and has partnerships
with switching networks in the ASEAN countries.

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BMO TRAVEL MASTERCARD

BMO Bank of Montreal has launched a prepaid general purpose travel card. The “Prepaid Travel Mosaik MasterCard” is targeting Canadian travelers looking for an alternative to travelers cheques.
The new card is personalized with the cardholder’s name and comes with
the extended warranty and purchase protection insurance. In addition,
the “Prepaid Travel Mosaik MasterCard” provides cardholders the
opportunity to earn one “AIR MILE” reward for every $40 spent on
the card at no additional fee. To promote the new card, BMO Bank of
Montreal is holding a “Purchase, Load & Win” contest with a grand prize
of 50,000 AIR MILES reward miles and $1,000 loaded onto the winner’s
Prepaid Travel Mosaik MasterCard. Cardholders will automatically receive
one contest entry each time their card is loaded with $500 or more thru
August 31st.

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TANGARINE & PEOPLES TRUST

Tangarine has signed agreements with Peoples Trust stipulating the sale
of prepaid Mastercards. Tangarine will be selling the prepaid cards under
the name of “HorizonPlus.” This is in response to the recent termination
of Tangarine’s previous prepaid Mastercard, “MyCard.” “MyCard”
customers will be reissued the “HorizonPlus” card at no additional cost.
Tangarine operates over 8,800 point of sale terminals across Canada
divided between wired (75%) and wireless (25%) terminals.

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MasterCard Embraces Microsoft’s Startup Center

Microsoft has joined with MasterCard Worldwide, FedEx Corporate Services and Bank of America Corp for Microsoft’s “Startup Center”, a business tool for entrepreneurs. An extension of Microsoft’s Small Business Center Web site, “StartUp Center” provides comprehensive advice that people can use to take action to turn a business idea into a legitimate launch. MasterCard Worldwide will provide Startup Center users with access to flexible cash-flow management solutions, business intelligence, and special programs and services. The MasterCard Find-a-Card tool is also available on the Startup Center to provide entrepreneurs with easy access to cash-flow management solutions.

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PRESTO CARD

The Presto smart card is soon to be introduced in the Greater Toronto Area
(GTA) replacing tickets, transfers and passes. With the same dimensions of
a credit card, the Presto’s smart card technology calculates fares for easy
collection. The fare card is pre-paid by the commuter and charged through
card readers on buses, trains, and stations. Trial introductions are being
implemented in July 2007 in the western GTA with implementation across
the entire region expected by 2010.

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EnXnet Multimedia Gift Card Set to Launch

EnXnet has successfully produced their first production units of the “Multimedia Gift Card”. Utilizing EnXnet’s ThinDisc technology, gift cards can now be fully interactive. The cards can provide detailed product information including new features and services, Internet connectivity, special online promotions, printable coupons and many other special features. The forecast for 2007 gift card sales is over $90 billion, with 2008 sales anticipated to be in the range of $150 billion.

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OMNIKEY & TELETRUST

OMNIKEY has joined the TeleTrust Association for the promotion of
consumer trust in information and communication technology. Composed
of 90 different members, with various fields of expertise, TeleTrust pools
resources for the development of secure applications. OMNIKEY brings
to the association expertise in secure identification with smartcard readers
mostly for online banking, e-commerce, and health cards. Considering that
OMNIKEY, an Assa Abloy ITG company, is 1 of the 3 leading vendors
of smartcards, experts project the company will be a significant addition
to the association.

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Newtek & Discover Seal an Acquiring Deal

Newtek Business Services has entered into a merchant acquiring agreement with Discover Financial Services. The agreement will allow Newtek Electronic Payment Processing to offer an integrated payment card processing package that includes Discover Network card acceptance to all of its customers. Newtek will have full responsibility for pricing, processing, settlement, risk management and customer service for the customer accounts. Newtek provides small business access to financial, management and technological support services.

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VISA USA’s Coghlan Quits; New President Named

VISA confirmed this morning that Hans Morris has been appointed President of VISA Inc., effective September 1st. VISA also announced that John Coghlan, President and CEO of VISA USA has resigned. Coghlan led the U.S. region of VISA since July 2005. John Partridge, President of Inovant, will assume the expanded responsibilities of interim President of VISA USA. Morris is currently CFO of Citi Markets & Banking, a post he assumed in November 2002. VISA filed SEC IPO documents on Friday and will officially begin conducting business as Visa Inc. following a series of mergers involving Visa Canada, Visa USA and Visa International. Visa Europe will retain its member-owned association structure and will become a licensee of Visa Inc. (CF Library 6/25/07)

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ABA Seeks Political Strength Via ACB Merger

The American Bankers Association and America’s Community Bankers confirmed yesterday they are engaged in a merger. The combined group says it will be politically stronger with broader grassroots representing a strong majority of all size banks and the vast majority of the industry and better equipped to deal with the new Democratic controlled Congress. The new organization would retain the American Bankers Association name. Ed Yingling will remain in his current role as President and CEO of the ABA. Diane Casey-Landry, currently President and CEO of ACB, would become EVP/COO of the combined entity. The ABA says no bank will pay more in future dues than it is paying today, and it expects that banks will generally pay less in dues under the new structure being developed. The ABA was formed in 1875 and ACB was founded in 1882.

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