FFIEC Issues Authentication FAQs Document

The FFIEC member agencies released a FAQs document to aid in the implementation of the interagency guidance on “Authentication in an Internet Banking Environment” first issued on October 12th. The FAQs are designed to assist financial institutions and their technology service providers in conforming to the guidance by providing information on the scope of the guidance, the timeframe for compliance, risk assessments, and other issues. The FFIEC was established in March 1979 to prescribe uniform principles, standards, and report forms and to promote uniformity in the supervision of financial institutions.

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On Track Innovations’ Q2 Revenues Jump 32%

Contactless specialist, On Track Innovations, reported second quarter revenues of $10.3 million, a 32% jump over 2Q/05. The Company’s net loss dropped to $2.0 million for the second quarter, compared to $3.0 million in the year ago period. During the quarter, MasterCard, the Metropolitan Transportation Authority, and Citibank announced the beginning of a six-month contactless payment trial in select New York City subway stations with pre-selected Citi credit card and Citibank customers. The new payment tags leverages technology from OTI. Also, Chinatrust Commercial Bank, one of the largest credit card issuers in Taiwan, LAKS, a well-known Austrian watchmaker and OTI are supplying payment watches as part of “2006 FIFA World Cup” promotion for MasterCard “PayPass.” OTI says it expects total revenue in the second half to be slightly higher or about the same as the first half, owing to a slight delay in the banks’ roll-out schedule for their internal reasons, which will affect OTI’s payments business. For complete details on OTI’s latest performance visit CardData ([www.carddata.com][1]).

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

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Big U.S. Portfolios Post a 1.5% Y/Y Gain

Bank credit card outstandings among four of the top U.S. players increased a paltry 1.5% during the second quarter compared to 2Q/05 but jumped 2.6% sequentially. Among the top five players who break-out their U.S. portfolios only Capital One posted above average growth. The nation’s top issuer, Bank of America, posted a 7.6% year-on-year gain in global outstandings. (BofA no longer discloses its domestic portfolio statistics.) Industrywide credit card outstandings increased 8.6% year-on-year according to CardData ([www.carddata.com][1]). Chase, Citibank, Capital One and Discover hold a collective marketshare of 48%. Among the big four from the top five, Capital One grew 5.0% while Chase posted a 1.5% gain and Citibank a 1.0% increase. Discover’s domestic portfolio decreased by 0.5%.

BIG FOUR PLAYERS
($ billions outstandings)
2Q/06 1Q/06 2Q/05 CHNG
Chase 139.3 134.3 137.3 +1.5%
Citi 111.3 109.7 110.2 +1.0%
Cap One 48.7 47.1 46.4 +5.0%
Discover 44.1 43.6 44.3 -0.5%
TOTAL 343.3 334.7 338.2 +1.5%
INDUSTRY 721.4 704.1 664.5 +8.6%
Source: CardData (www.carddata.com)

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

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TNT to Premiere a MasterCard Mini-Drama

MasterCard will premiere a two-minute mini-drama this weekend via Turner Network Television. The piece, titled “Late,” will also be embedded in TNT on Demand and available for download via TNT.tv, MasterCard’s Priceless.com and TNT on AOL. “Late” shows a 20-something male driving along a busy street to deliver a pile of cash and he stops to buy a briefcase using his MasterCard. The drama centers around the suspenseful delivery of the cash. “Late” premieres within the film “Runaway Jury” on TNT August 19th. After the premiere presentation, “Late” will air again on TNT the following four weekends, during the TNT “Drama Lounge” featured film. The partnership with TNT and MasterCard was created by MasterCard’s media agency GSD&M.

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AXA Advisors Supports the Futuretrust MC

AXA Advisors and A.P. Lubrano & Company have teamed with Mothers Work to open “529” savings plans linked to the “Futuretrust MasterCard”. Futuretrust(R) is a MasterCard(R)-linked college savings program that helps families get a ‘jump’ on saving for college by automatically contributing 1% of a member’s purchases using a Futuretrust MasterCard to a tax-advantaged 529 college savings plan of the member’s choice. Mothers Work, Inc. is the world’s largest designer and retailer of maternity apparel, using its custom TrendTrack(TM) merchandise analysis and planning system as well as its quick response replenishment process to “give the customer what she wants, when she wants it.” AXA Advisors, LLC is a leading provider of financial services for consumers and businesses, working with clients to help them define and meet their financial goals.

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PTS Revenues Soar 400% in Second Quarter

Las Vegas-based PTS, which owns part of PTS Card Solutions, reported that second quarter revenue increased more than 400%. PTS Inc.’s subsidiary, Glove Box Inc. (www.ptspi.com), owns the rights to the patented, revolutionary Glove Box(TM), the only product that offers contamination reduction through automated glove dispensing. Another subsidiary of PTS Inc. is Disability Access Consultants (DAC). More than 54 million people in the United States have a disability, a number equal to 20% of the population. PTS Card Solutions Inc. (OTC:PTCD) is a partially owned and controlled subsidiary of PTS Inc. PTS Inc. recently assigned all of its interests in Global Links Card Services to this newly acquired subsidiary, PTS Card Solutions Inc.

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Pipeline Date 2Q/06 Revenues Rise 34%

MA-based Pipeline Data posted a 34% increase in second quarter revenue of $8.4 million. The net loss for the quarter was $1.5 million, due to a $2.1 million charge for the early retirement of debt. During the quarter, the Company’s AIRCHARGE subsidiary was approved by the City of Philadelphia Water Department as its wireless payment solution provider. Pipeline also reached an agreement with several institutional investors to purchase $37 million of convertible notes and warrants to be used to refinance short-term indebtedness and to fund acquisitions. In July, the Company completed the acquisition of Paynet Systems. For complete details on Pipeline Data’s latest performance visit CardData ([www.carddata.com][1]). (CF Library 6/13/06; 6/29/06; 7/13/06)

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

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Barnes & Noble Online Adds PayPal

Barnes & Noble.com has added PayPal as a payment method. It allows online shoppers to enter and store credit card and billing information in one place, instead of storing and updating this information on multiple sites. PayPal allows customers to shop online with confidence that their financial information will be kept private. PayPal has more than 114 million accounts and is available to users in 55 markets around the world. Barnes & Noble, Inc. (NYSE: BKS), the world’s largest bookseller and a Fortune 500 company, operates 797 bookstores in 50 states.

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Tier Online Puts More Emphasis on Payments

VA-based Tier Technologies has completely redesigned its Web site to reflect its focus on electronic payments and services. Offering a vastly improved browsing experience, the new website permits clients, prospects, investors, recruits and the media to quickly and intuitively gather information about Tier’s transaction-based products and services. Tier Technologies, Inc. offers a diversified array of innovative financial transaction and business processing solutions.

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87% of U.K. Tills are Chip & PIN Enabled

After six months of full implementation more than 99.8% of all “chip and PIN” card transactions in the U.K. are now PIN-verified. However, only 87% of the 975,000 tills in the country are upgraded to “chip and PIN.” APACS, the UK payments association, says this is changing quickly. The U.K.’s banks and card companies have now issued 130 million chip and PIN cards representing 92% of a total of 141 million cards. APACS noted that thanks to “chip and PIN,” in 2005, there was a reduction of nearly $114 million in counterfeit and fraud on lost and stolen cards, a 24% decrease over 2004.

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VISA Ed Site Gives Away 50K Calculators

VISA USA is giving away 50,000 free solar calculators through its “Practical Money Skills for Life” Web site to anyone on a first-come, first-serve basis. Parents, students, teachers, or anyone who would benefit from a new calculator, can go to the home page of the /Practical Money Skills for Life/ Web site to submit a mailing address so Visa can send the free calculator. 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.

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