Saudi British Bank Implements Global FICO

The Saudi British Bank has implemented a “Global
FICO” score. The score applies Fair Isaac’s “FICO” credit risk scoring technology to rank-order consumers according to their credit risk.
Credit bureau data is now readily available in Saudi Arabia. PIC Solutions, the Fair Isaac alliance partner for the Middle East
Africa region, implemented the new scoring solution for The Saudi
British Bank. In addition to Saudi Arabia, “Global FICO” score is currently live or is being implemented in Turkey, Poland, Sweden, Ireland, Panama, Jamaica, Mexico, Singapore, South Korea, Taiwan and Thailand.

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First Data to Restate 2005 and 2006

First Data confirmed it will restate its Form 10-K for 2005 and its Form 10Q’s for the first and second quarters of this year. The restatements involve SEC interpretations of “SFAS 133,” which governs the appropriate accounting treatment for hedging and derivative transactions. The cumulative effect of these changes is a non-cash earnings increase of approximately $30 million for the five and a half years from the adoption of “SFAS 133” in 2001 through the second quarter of 2006, or less than one half of one percent of First Data’s earnings during the period. The restatements will have no effect on the Company’s cash flows or total stockholders’ equity, nor is it expected to affect the timing of the upcoming spin-off of Western Union.

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Jack Henry Revenues Rise 15% in Q2

MO-based Jack Henry & Associates reported that revenue for the second calendar quarter hit $162.3 million, a 15% increase over 2Q/05. Net income totaled $25.4, compared to $21.7 million, in the same quarter a year ago. The Company says the growth was primarily organic, led by core system sales to mid-tier financial institutions, and by strong continued growth in its electronic processing services including ATM/Debit Card, bill payment and remote deposit. The bank systems and services segment revenue increased 18% to $133.6 million, with a gross margin of 45% from $113.3 million and a gross margin of 43% in the same quarter a year ago. The credit union systems and services segment revenue increased 2% to $28.7 million with a gross margin of 37% for the quarter from $28.1 million and a gross margin of 41% in the same period a year ago. For complete details on Jack Henry’s latest results visit CardData ([www.carddata.com][1]).

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

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Sallie Mae Buys Upromise Companies

Sallie Mae has completed the purchase of Upromise and its family of companies, the nation’s leading saving-for-college company and administrator of 529 college savings plans. Together, Sallie Mae and Upromise will offer parents and students a comprehensive financial solution to access college — including a broad range of college savings vehicles, information, and student loans. SLM Corporation, commonly known as Sallie Mae, is the nation’s leading provider of education funding, managing more than $130 billion in student loans and serving 10 million borrowers. Upromise’s mission is to help families realize the dream of college. The Upromise Services division includes its popular rewards service, which allows families to automatically save money for college while making everyday purchases at more than 20,000 grocery and drug stores, 14,000 gas stations, 8,000 restaurants, thousands of retail stores and more than 400 online shopping sites.

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Travelocity Implements Verified by VISA

Verified by VISA announced a partnership to offer its online shopping security tool to Travelocity customers. Verified by Visa enables online shoppers to select a personal password they can use to authenticate their identity every time they make a purchase at Travelocity or one of the more than 100,000 merchants worldwide that now offer the service. Visa USA is the nation’s leading payment brand and largest payment system, enabling banks to provide their consumers and business customers with a wide variety of payment alternatives tailored to meet their evolving needs. Travelocity is committed to being the traveler’s champion — before, during and after the trip and guarantees everything about a customer’s booking will be right. If it’s not, Travelocity will work with its partners to make it right, right away.

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BofA Prices $1.75B ABS at Libor +1BPS

Bank of America’s FIA Card Services (f/k/a MBNA America Bank) priced an offering of $1.75 billion in credit card asset-backed notes from the BA Credit Card Trust at one basis point over the one-month LIBOR. This offering, scheduled to close on August 30, 2006, was lead managed by Banc of America Securities LLC and co-managed by ABN AMRO Incorporated, Barclays Capital, Merrill Lynch & Co. and RBS Greenwich Capital. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates.

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Meta Payment Systems Hires a FSV Executive

SD-based Meta Payment Systems has named John Hagy, formerly with FSV Payment Systems, as Chief Risk Officer and General Counsel. Mr. Hagy came to Meta from FSV Payment Systems in Houston, Texas, where he served as Chief Administrative Officer and General Counsel for over seven years. While in that position, Mr. Hagy directed the compliance and regulatory efforts of FSV and managed due diligence and corporate legal matters. MetaBank is a federally-chartered savings bank headquartered in Storm Lake, Iowa. Meta Financial Group, Inc.(R) is the bank holding company for MetaBank, MetaBank West Central, Meta Payment Systems(R), and Meta Trust Company(R).

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Merchant Acquiring Dominated by Big 5

A new report estimates that two trillion transactions will be processed by merchant acquirers worldwide this year. In the U.S. the merchant acquiring business is dominated by five powerhouse processors focused around three different business models: joint venture; acquisition; and organic growth. Sharing over 90% of the U.S. transaction volume, TowerGroup estimates that the volume driven by these merchant acquirers will approach 46 billion transactions in 2006. Given the concentration of large merchant acquirers in the U.S., TowerGroup believes consolidation of key players is unlikely. Instead, growth opportunities are likely to come from competition either between U.S. acquirers or with those outside the U.S.

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Valutec Card Solutions and Shift4 Team

Valutec Card Solutions and Shift4 have launched a certified, high-speed connection to interface Shift4’s “$$$ ON THE NET” customers with Valutec gift cards. This new interface allows Shift4’s $$$ ON THE NET customers to seamlessly accept and process Valutec gift cards directly through their point-of-sale (POS) systems quickly, securely and reliably. Valutec Card Solutions is the leading provider of turnkey gift and loyalty card services to small and mid-market general and specialty retail, restaurant, spa/beauty salon and hospitality merchants. Shift4, a leading developer of secure financial transaction processing software and services, provides secure, web-based, real-time enterprise payment solutions for leaders in the hospitality, retail, foodservices, auto rental and e-commerce markets.

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Encore Capital Hires a WaMu Executive

Encore Capital Group has hired Anthony Riggio, formerly of WaMu/Providian, as its SVP of Business Development and Portfolio Acquisitions. Mr. Riggio joins Encore building on a successful career in the credit card industry. Most recently, Mr. Riggio was Senior Vice President for Business Development and Strategic Partnerships for card services at Washington Mutual (formerly Providian) where he was credited with developing, structuring and negotiating significant business partnerships. Encore Capital Group, Inc. is a systems-driven purchaser and manager of charged-off consumer receivables portfolios.

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Morgan Beaumont STV Card Revenue Falls

FL-based Morgan Beaumont says it will discontinue quarterly conference calls and will distribute financial news releases instead. The prepaid card specialist and owner of the “SIRE Network” reported second calendar quarter revenue of $876,000 compared to $482,000 in the same quarter of 2005. The year-over-year revenue increase is primarily due to an $303,000 increase in telecommunications revenue, $255,000 increase in wholesale revenue and $240,000 decrease in stored value cards. The sequential decline compared to revenue of $1.9 million produced in the second quarter of 2006 resulted from the elimination of unprofitable business lines and the transition of the Company’s telecommunications card business from paper to plastic card. For complete details on Morgan Beaumont’s latest results visit CardData ([www.carddata.com][1]).

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

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