Monthly Payment Rates Begin to Spiral Downward

Monthly payment rates continued their downward spiral in March, falling below 18.50% for the first time since July 2005. The MPR, or the amount that cardholders pay on their credit card debt each month, peaked in October of last year, reaching almost 21%. The higher payment rates were driven by new minimum payment standards that took effect last year. Last week, Moody’s reported that the payment rate among credit card-backed securities fell slightly to 17.72% in February, after posting a record-setting forty-two months of consecutive year-over-year improvement. Moody’s noted that the combination of higher interest rates and a cooling off of the real estate market diminished the attractiveness of “cash out” refinancing activity in which many borrowers reduced their more expensive credit card debt by drawing on the equity in their home — either by refinancing their mortgages or by accessing their home equity lines of credit.

MONTHLY PAYMENT RATES
Apr 06: 20.01%
May 06: 19.68%
Jun 06: 19.99%
Jul 06: 20.46%
Aug 06: 20.20%
Sep 06: 20.02%
Oct 06: 20.83%
Nov 06: 20.01%
Dec 06: 19.70%
Jan 07: 19.88%
Feb 07: 18.79%
Mar 07: 18.21%
Source: CardData (www.carddata.com)

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Gilbarco Certifies NPC on Passport

Gilbarco Inc. has certified an electronic funds payment service from National Payment Card, LLC of Boca Raton, FL for use with the Gilbarco Passport point of sale system. National Payment Card is an electronic funds payment service bureau that interfaces with point of sale systems that enables consumers to associate their driver’s license or existing membership card with a bank account so it initiates payment at the pump or inside the store through the Federal Automated Clearing House (ACH) system. The Passport interface to the electronic funds payment service from National Payment Card enables funds to come directly from the consumer’s bank account, removing middlemen in the credit card and debit card networks altogether. Retailers can pass along the savings in processing fees to the consumer in the form of discounted fuel. Gilbarco Veeder-Root and Gasboy are leading suppliers of integrated fuel control, site management, and support services for petroleum marketers and commercial fueling enterprises worldwide. National Payment Card is a marketer of card-based payment systems.

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Princeton Softech Joins the PCI SVA

NJ-based Princeton Softech is among the first 24 companies to have joined the Payment Card Industry “Strategic Vendor Alliance”. The PCI SVA was founded by a group of leading data security firms, including ConfigureSoft, Cyber-Ark, Modulo Security, Proginet, Protegrity, Reflex Security and Safe-Net to provide the best in technology solutions and services to retailers, e-commerce companies, financial institutions, payment processors, POS vendors and other organizations that must protect consumer privacy to achieve compliance with the PCI Data Security Standard (DSS). Initiated by MasterCard International and Visa in January 2005, the PCI DSS is a set of twelve multifaceted regulations that represent a unified industry standard for protecting cardholder data that is stored, transmitted or processed. The PCI DSS must be implemented by all members, merchants and service providers that store, process or transmit cardholder information. Fines for non-compliance can range up to 500,000 USD per incident. Princeton Softech provides enterprise data management solutions that address critical business issues.

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OKI Relocates Manufacturing Division

The OKI Group held opening ceremonies for its recently relocated
manufacturing division, OSZ. The company’s new facility in
Shenzhen, China is twice the size of the previous and will triple
production of OSZ’s ATM and printer manufacturing. It is a four-story
building with 52,000 square meters of floor space and enough room
for future expansion.This will meet with the company’s growth reflected
in the shipment of over 200 thousand printers and slightly under 20
thousand ATMs last year. The company plans to increase this to 600
thousand printers, 30 thousand ATMs (including main units) a year.

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ANZ Selects ILOG JRules For Loan Automation

ILOG’s “JRules” has been selected by ANZ for the automation of residential
mortgage loan applications. ILOG’s team will support ANZ through the phases
of the Mortgage Automation Program with the best practice approach. The
company is a global provider of Business Rule Management System software
(BRMS) upon which over 2,500 corporations and 465 leading software
vendors rely. ANZ has 1,265 worldwide points of representation, including
781 branches in Australia, and more than six million customers worldwide.

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Chase Certifies RDM Synergy Terminal

RDM “SYNERGY”‘s all-in-one payment terminal has been
given Class B certification by Chase “Paymentech”. “Paymentech”,
a joint venture between JPMorgan Chase & Co. and First Data
Corp., is a merchant acquirer accepting payments at the point-of-
sale that processed approximately 18.2 billion transactions in 2006,
with more than $660.6 billion in annual bankcard and debit volume.
With this development, Chase “Paymentech” customers can use
RDM’s payment platform technology for imaging, MICR reading,
and terminal applications. The company’s Class B certification
encompasses credit, debit and check electronification.

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VeriFone Signs InterSwitch Nigeria

Verifone Holdings has announced that it has signed agreements
with Nigerian transaction switching and electronic payment
processing company InterSwitch. This will allow inter-bank
electronics payments for Nigerian cardholders with deployment
of VeriFone’s GPRS-enabled “Vx 610” payment systems to
Interswitches’ bank and merchant customers. Interswitch unites
banks onto the same ATM and POS network, providing integration
to 23 out of the 25 banks in the country. Using wireless technology,
the “Vx 610″system delivers high-speed functionality and ease of
use without tying customers to a fixed location. It is owered by
a 32-bit processor for quick transactions.

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Banco Ahorro Famsa Inks With Fiserv

Fiserv has announced that Banco Ahorro Famsa has chosen
their solutions to provide banking core, treasury, anti-money
laundering and risk management solutions. The bank received
certification by the supervisory government agency Comision
Nacional Bancaria y de Valores (CNBV) in early January 2007 to
initiate operations and will conduct business with the general public.
Plans include the establishment of 300 branches in Grupo Famsa
S.A. de C.V. stores in Mexico by 2008. Fiserv will support the
bank through expansion with client service.

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Survey Shows SEPA Not Popular Among Big Firms

A survey has demonstrated that of 511 large companies in Western
Europe, 60% are unfocused on preparing for the SEPA introduction.
Moreover, less than 30% are preparing for parallel initiatives, such as
globalization of messaging standards. If unprepared for SEPA when
implemented, company treasury departments could lack funds to
execute payments and incur higher bank fees.

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