U.S. Prepaid Card Spending to Hit $296B

MasterCard this week released a new Boston Consulting Group report that predicts spending on prepaid payment cards in Europe will hit $163 billion by 2010, compared to $296 billion for the U.S and $59 billion in Japan. MasterCard says the U.K. will emerge as Europe’s largest single market and the fourth largest in the world with a projected prepaid spend of $34 billion by 2010. The U.K. is closely followed by Italy where total spending is estimated to hit $33 billion and France, with an estimated total spend of $27 billion. The research also shows that one of the main drivers of prepaid spending in the upcoming future will be through Government programs.

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The Company Software Does $$$ ON THE NET

The Company Software, a provider of management software for the overnight vacation rental industry and parent company of TCSReservations, has inked a deal with Shift4 Corporation to utilize “$$$ ON THE NET” with tokenization technology. Shift4’s Tokenization technology allows TCS customers to continue the same reporting, credits and incremental authorizations necessary to take reservation payments both online and in-house without the burden of maintaining and storing data. Shift4 is a developer of secure financial transaction processing software and services, provides web-based, real-time enterprise payment solutions for leaders in the hospitality, retail, foodservices, auto rental and e-commerce markets.

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XIRING and SMARTSOFT Partner to Secure Online Banking

XIRING and SMARTSOFT are collaborating for the development of
an online security solution for Turkish banks. The collaboration will
protect against card-not-present fraud by allowing customers easier
access to their finances through phone and Internet securely.
SMARTSOFT provides end-to-end implementations of EMV solutions,
MasterCard CAP and VISA DPA standards in Turkey. The company
helps banks in securing e-Banking systems. XIRING provides remote
transaction security for the banking and healthcare industries.

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Banamex to Issue VISA and MasterCard on MULTOS

Using Keycorp’s MULTOS smartcard technology, Banamex will be
implementing Visa and Mastercard EMV chip cards. MULTOS
will allow the bank to issue VISA and MasterCard using the same
operating platform, flexibility and choice. As a founding member of
MULTOS, Keycorp develops and distributes smartcard operating
systems and smartcard applications. Banamex has a distribution
network of more than 1,400 branches and 5,800 ATMs throughout
Mexico.

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Metavante Inks PA-Based AmeriServ Financial

Metavante Corporation’s Banking Solutions has renewed its core processing software agreement with PA-based AmeriServ Financial Bank. AmeriServ deploys “Bankway”, an in-house core banking solution, at its more than 21 banking offices throughout western and central Pennsylvania. AmeriServ has also signed an agreement for Metavante’s electronic funds transfer and card services and will begin participating in the NYCE Network. NYCE will be the sole provider of retail PIN debit access for AmeriServ’s 23,000 cards. Metavante Banking Solutions provides core account processing, fully integrated delivery channels, business and marketing analytics, electronic banking, integrated payments, image, risk and compliance solutions, along with business and technology consulting and serves over 1,500 financial services providers, ranging from community banks to the top 50 U.S. Banks.

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Corporation Bank Launches a Credit Card

Corporation Bank is set to launch its own credit card according
to the Business Standard. The bank plans to outsource many
processes, however, it will be responsible for the marketing and credit
approval of the card. Corporation Bank is also planning a joint
credit card with Oriental Bank of Commerce and Indian Bank due
out in November of this year. The alliance has syndicated
Rs 1,290 crore of loans through partnerships in Mumbai, Delhi and
Chennai. The banks are in the process of sharing their ATM networks,
surplus cash, currency chests and training infrastructure. The alliance
has also identified 50 branches from each of the three banks for check
collection and demand draft payment.

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2005 Cross-Border Card Scam is Settled

A federal district court in Illinois has entered final orders against Centurion Financial Benefits based in Canada for allegedly defrauding U.S. consumers out of more than $9 million through the sale of phony advance-fee credit cards. The three people involved were hit with strong injunctive relief. The FTC charged the group in 2005 with falsely offering major credit cards to people who agreed to have the defendants electronically debit their bank accounts for an advance fee of $249. The defendants typically claimed that the credit cards would have a $2,000 credit limit, zero percent interest, and no annual fees, and often targeted their offers at consumers with poor credit histories. Consumers who provided their bank account information did not receive a major credit card, but instead were sent an application for either a stored value card or cash card that had no line of credit associated with it and could be used only if the consumer first loaded funds onto the card.

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CompuCredit Posts a First Quarter Loss

Atlanta-based sub-prime card specialist CompuCredit reported a net GAAP loss for the first quarter of $2.5 million, compared to net income of $30.7 million for 1Q/06. The Company says the loss was primarily due to lower than expected fee assessments due to lower than expected delinquencies, the timing of marketing efforts, and the final transitional effects of implementing its previously announced decision to discontinue billing finance charges and fees on credit card accounts that become over 90 days delinquent. Total managed receivables for the first quarter were $2,894,136,000, a 15% increase compared to one-year ago. As of March 31st, CompuCredit had 3,945,000 accounts, compared to 3,549,000 in 1Q/06. The adjusted charge-off rate was 12.5% in the first quarter, as compared to 11.9% for 4Q/06 and 7.1% in the year ago quarter. As of March 31st, the 60-plus day delinquency rate was 12.8%, as compared to 14.1% for 4Q/06 and 10.6% for 1Q/06. For complete details on CompuCredit’s first quarter performance, visit CardData ([www.carddata.com][1]).

COMPUCREDIT NET INCOME SNAPSHOT
1Q/06: $30.7 million
2Q/06: $28.3 million
3Q/06: $38.8 million
4Q/06: $ 9.7 million
1Q/07: (-$ 2.5 million)
Source: CardData (www.carddata.com)

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

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Asia Travelers Prefer Cards Over Cash

Visa International has collaborated with Pacific Asia Travel Association
(PATA) to conduct and release the “Asia Travel Intentions Survey.”
The survey asks over 5,000 international travelers from 10 key travel
markets their travel intentions, motivations of visiting certain
countries and
what prevents them from visiting others. This years’ findings demonstrate
that 52% of those surveyed were considering Asia as a travel destination.
Also reflected is that in 90% of the markets surveyed, the respondents
would prefer to use a credit or debit card rather than pay with cash or
travelers’ checks. In China, 77% preferred use of a card, 62% of
Swedish and 62% of Australians. Korea had the only respondents who
preferred the use of cash over credit or debit cards with 51% favoring
cash.

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AmbironTrustWave Joins the PASS Consortium

Denver-based IP Commerce announced that AmbironTrustWave will deliver data security services and technologies through the “Payments as a Secure Service” Commerce Center. As part of this agreement, AmbironTrustWave has joined the growing number of commerce organizations working together to deliver commerce services as part of the PASS Consortium. PASS enables business users to perform a wide variety of commerce activities securely from their Windows Vista desktop.Created by IP Commerce, PASS Consortium is comprised of financial institutions and payment service providers working together to promote secure and efficient open financial transactions by leveraging IP Commerce’s IP Payments Framework and Windows Vista operating system. Additional members include: BankServ, Chase Paymentech, CIT Group, Inc., Internet Commerce Corporation, and PayPal. AmbironTrustWave is a global provider of information security and compliance management solutions to businesses and the public sector.

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