TNB Acquires an OH CU Portfolio

Dallas-based TNB Card Services has acquired the credit card portfolio from Columbus, Ohio-based CME Federal Credit Union in a purchase that encompasses 5,500 cards and more than $15 million in balances. TNB has bought more than 100 credit union card portfolios since launching its agent issuing program in 2002. CME Federal Credit Union holds $165 million in assets and has more than 25,000 members and four branches. TNB Card Services provides electronic payments processing, as well as an agent issuing solution for credit unions nationwide serving more than 450 financial institutions and managing more than 1.6 million cards.

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Punjab National Bank to Offer Aladdin eTokens

Punjab National Bank has chosen Aladdin “eToken” for the protection
of its’ customer and company data. Aladdin’s security requires two
factor authentication: the card user must be in possession of the device
and know the access pin to use the identity credential stored on the
“eToken”. The “eToken” device provides strong user authentication and
cost-effective password management solutions enabling organizations to
easily and effectively expand business opportunities with secure network
access. Aladdin has offices in 10 countries and a worldwide network of
channel partners.

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FAIR Attacks BofA & Patriot Act

The Federation for American Immigration Reform also attacked BofA’s pilot to market credit cards to illegal aliens. FAIR says the banking provisions of the “USA Patriot Act” gives BofA the green light. But, the law has one provision that troubles many of its critics. It allows financial institutions to accept some official identification sources issued by foreign governments, including the matricula consular, an ID issued by Mexican consulate offices to its nationals living outside Mexico, as valid. FAIR says the loophole was included in the “Patriot Act” because the banking industry lobbied heavily to get it into the law, so that they could do business with illegal aliens. FAIR says BofA is too big and powerful to really care what most Americans think.

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Card Type Approval Process for CCD & CPA Launched

For “Common Core Definitions” (CCD) and “Common Payment Application” (CPA)
compliant cards, EMV has introduced a “Card Type Approval” process. This
process is verification by EMVCo that a specific card product has
demonstrated conformance to the EMV Specifications. EMV offers a ‘one
stop’ “Card Type Approval” recognized by major payment system members.
EMVCo’s primary role is to manage, maintain and enhance the EMV
“Integrated Circuit Card Specifications” to ensure interoperability and
acceptance of payment system integrated circuit cards on a worldwide basis.

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Obopay Lands a Top CFO

Redwood City, CA-based Obopay has hired a new CFO. Dave Johnson has about 30 years in international financial services. He was COO and/or CFO at PayPal, BancAmerica Securities; BankAmerica Europe, Middle East and Africa Group; and Washington Mutual Capital. Obopay, founded in 2005, specializes in mobile payment and social money services in the U.S. Obopay has a management team comprised of former executives from VISA, Microsoft, Yahoo, Expedia, AT&T Wireless, Western Union, First Data, Norwest Bank and Chordiant Software.

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EchoStar DISH Network Joins Green Dot

Los Angeles-based Green Dot Financial Network has teamed with EchoStar Communications’ DISH Network satellite TV service to accept consumer payments for DISH Network services. The move will expand payment options for DISH Network and DISH Network’s DishNOW! cash customers by allowing them to pay for satellite TV service using a “Green Dot MoneyPak”. DISH Network customers purchase a “Green Dot MoneyPak” and load a dollar amount onto it. Customers then simply call DISH Network and select “pay with Green Dot MoneyPak” to pay their bill or load a DishNOW! pre-paid satellite system card. Green Dot Corporation is a provider of retail based financial services for America’s underserved community. EchoStar Communications Corporation serves more than 12.46 million satellite TV customers through its DISH Network.

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Gift Card Malls Gain Popularity

A new survey has found that 22% of adults purchased cards at a gift card mall this year, up from 14% in 2006. The poll also reveals that 60% of recipients have redeemed all of the gift cards they received in the past holiday season. The Comdata research found that 80% of consumers would prefer to receive a gift card from a favorite store rather than a gift chosen for them by the giver. More than half say they would be very or somewhat likely to purchase a gift card at a kiosk or cart at an airport or shopping mall. One-quarter of purchasers bought one or more gift cards online. Of those, approximately one-third indicated that this was the first time they had purchased a gift card through the Internet. Comdata says 53% of respondents say they often spend more than the original amount on the gift card, adding an average of 17%.

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Citi Hires American Express’ CFO

Gary Crittenden, EVP/CFO and head of Global Network Services at American Express, resigned Friday to become Citi’s new CFO, effective March 12th. Dan Henry, EVP/CFO of U.S. Consumer, Small Business and Merchant Services was named EVP and acting CFO at American Express. Crittenden joined AmEx in June 2000 as EVP/CFO and took over Global Network Services in June 2005. He also is currently a director on the boards of UPS and Staples. Henry joined AmEx in 1990 as Comptroller.

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Ukrgasbank to Deploy CREDITINFO & Decision Manager

Ukrgasbank has implemented software including “Decision Manager”. The new
software processes applications executing “Debt Manager” automatically and
was designed by CREDITINFO
Group of Iceland. “Decision Manager” addresses credit risks and
provides scoring cards of different retail credit products. The software
rationalizes the credit application process, determining the credit
worthiness of those with questionable credit by highlighting faults on their
report. At the same time, “Decision Manager” encourages increasing credit
limits and lower interest rates of the more disciplined borrowers. The
software will be used mostly to determine mortgage and credit card
granting. Before the end of 2007, the Bank plans to open 150 more
mini-divisions equipped with these up-to-date banking technologies.

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HSBC Gives its U.S. CEOs the Boot

Warning of higher-loan loss provisions and set to release its fourth quarter earnings reports on March 5th, HSBC confirmed the departure of its two top U.S. executives. Bobby Mehta, CEO of HSBC North America and CEO of HSBC Finance, along with Sandy Derickson, head of HSBC Bank USA and HSBC USA are out. Mehta also served as Chairman of HSBC Finance. Mehta joined HSBC Finance in 1998. HSBC acquired Household International in March 2003 for $14.8 billion. In March 2005, he was appointed to his most recent positions. HSBC named Douglas Flint to become non-executive Chairman of HSBC Finance. Brendan McDonagh, currently COO of HSBC Finance has become CEO. Derickson joined Household International in September 2000 as managing director and CEO of the company’s retail services business. Prior to joining HSBC, Derickson spent 24 years at GE Capital. She was promoted to group executive at HSBC Finance in 2002 and to vice chairman in April 2004. Paul Lawrence, head of Corporate, Investment Banking and Markets for North America, has been named to succeed Derickson. HSBC Finance has more than $26 billion in card loans. Delinquency (60 days+) for its VISA/MasterCard portfolio increased to 4.48% for the third quarter, compared to 4.10% in the prior quarter and 4.13% for 3Q/05. For complete details on HSBC’s performance, visit CardData ([www.carddata.com][1]).

HSBC 60+ DAY U.S. CARD DELINQUENCY
3Q/05: 4.13%
4Q/05: 3.52%
1Q/06: 4.22%
2Q/06: 4.10%
3Q/06: 4.48%
Source: CardData (www.carddata.com)

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

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Banco Rendimento To Pay Remittances For Poni Cards

The American Cash Exchange has announced a partnership with Banco
Rendimento. Through the partnership, the Brazilian bank will pay remittance for American Poni Card-holders. The Poni
Card is a stored value product and an important addition to the
remittance strategy of the bank, providing a simple way to transfer
money. Remittance is a $45 Billion market and Brazilians are expected to
send more than $7 Billion USD throughout 2007. Banco Rendimento
processed 800,000 remittances in 2006 and serves over 300,000 Brazilians
living abroad in 4 continents. The American Cash Exchange offers
personal payment solutions and is the largest distributor of ATM access
cards designed for the unbanked population.

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ATM Express Teams with JBM & Cingular

MT-based ATM distributor ATM Express has incorporated St. Louis-based JBM Electronics solutions and AT&T’s Cingular Wireless data network to power its network of ATMs. By using JBM Electronics’ wireless routers and the AT&T wireless data network, ATM Express has lowered costs by 70 percent and reduced transaction times from 25 seconds to as low as five seconds per transaction. AT&T has the largest digital wireless data network in the U.S., providing coverage in more than 13,000 cities and towns. JBM Electronics provides custom development for network connectivity solutions. ATM Express currently processes over 14,000 ATMs nationwide.

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