Two Cross-Border Card Fraudsters Nailed

A U.S. district court has barred two defendants in an FTC cross-border telemarketing fraud case from engaging in deceptive credit card marketing. The complaint filed by the FTC alleged that the companies falsely claimed that consumers who paid a fee ranging from $159 to $236 would be guaranteed a low-interest rate, high-credit limit, and no-annual-fee MasterCard or VISA card. The Commission charged that since August 1999, the defendants had operated boiler rooms in Toronto, targeting U.S. consumers with no credit or poor credit histories. After paying for the promised cards, however, consumers did not receive them. Instead, they got packages containing coupons and discounts for travel, recreation, automobile services, medical plans, satellite service, and cellular telephones. The FTC received assistance from the U.S. Attorney’s Office for the Southern District of Illinois and Canadian authorities.

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PSCU Hires a Former VISA USA EVP

FL-based PSCU Financial Services has hired Steve Ruwe, former VISA USA EVP of Operations and Risk for 13 years, as Chief Risk Officer. Prior to joining PSCU Financial Services, Ruwe was Visa USA’s Executive Vice President of Operations and Risk for 13 years. As a highly regarded risk management expert, Ruwe has testified before Congress numerous times on issues related to data security, Internet gaming, and Internet pharmacies. PSCU Financial Services is owned by more than 500 member credit unions representing over 10 million cardholder accounts and more than 345,000 online bill payment subscribers.

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GE Money Promotes Green to SVP/CFO

GE Money has named Robert Green as SVP/CFO. He has been CFO for the Americas since March 2006. From April 2004 to March 2006, Green was the Chief Financial Officer for the Bio-Sciences unit within GE Healthcare. Prior to this role, Green served in successive financial services finance roles including Manager of the GE Capital Audit Staff, CFO for European Equipment Finance and CFO for Americom. GE (NYSE: GE) is Imagination at Work — a diversified technology, media and financial services company focused on solving some of the world’s toughest problems.

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Cardtronics Second Quarter Revenues Jump 6%

Houston-based ATM specialist Cardtronics reported record second quarter revenues of $73.3 million a 5.9% increase over 2Q/05. The increase was primarily attributable to incremental revenues associated with the Company’s United Kingdom operations, which began in May 2005 with the acquisition of Bank Machine Limited. However, the increase was partially offset by higher ATM cash costs and higher selling, general and administrative costs. Cardtronics posted net income for the second quarter of $800,000, compared to net income of $1.4 million for the same period in 2005. Average transacting ATMs for the second quarter totaled 25,755. Average cash withdrawal transactions per ATM per month during the second quarter increased 5.7% to 408 from 386 during the same period in 2005. The Company now expects full-year revenues to be in the range of $280 to $290 million, up from the $270 to $290 million range that was previously communicated. For complete details on Cardtronics’ latest results visit CardData ([www.carddata.com][1]).

CARDTRONICS REVENUE HISTORICAL
2Q/05: $69.2 million
3Q/05: $71.7 million
4Q/05: $69.8 million
1Q/06: $58.3 million
2Q/06: $73.3 million
Source: CardData (www.carddata.com)

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

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Cash Technologies Teams with Topline

Los Angeles-based Cash Technologies has signed a five-year sales and licensing agreement with Topline Solutions to integrate “Claim-Remedi’s ProIdentify” insurance verification software into Topline’s patient payment management system. The agreement also allows Topline to market ProIdentify as a stand alone product through existing and future customers. Topline Solutions, Inc. was formed to address the problem of steadily rising patient receivables in medical practices and institutions. Cash Technologies, Inc. develops and markets innovative data processing solutions in the healthcare and financial services industries.

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CyberSource Lands Two First Data Execs

CyberSource has hired two former First Data executives including George Barby as VP/Worldwide Operations and Carolyn Brackett as VP/Channels & Alliances. Barby will direct CyberSource’s global information technology operations and technical services. Brackett will lead the continuing development of CyberSource’s long term channel and referral partner strategies. CyberSource Corporation is a leading provider of electronic payment and risk management solutions. CyberSource solutions enable electronic payment processing for Web, call center, and POS environments.

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RBC Cash Index Falls in August

The latest “RBC CASH Index” declined to 74.8, compared to 80.1 in July due to a drop in confidence regarding economic expectations but offset by solid consumer confidence in job security. The RBC CASH Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. Royal Bank of Canada (TSX, NYSE: RY) uses the initials RBC as a prefix for its businesses and operating subsidiaries, which operate under the master brand name of RBC Financial Group.

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MC Supports Real-Time HSA Transactions

MasterCard is introducing a new system enhancement and service designed to increase the use of “Flexible Spending Accounts” and other medical reimbursement plans by enabling third-party administrators to substantiate purchases in real time using item-level data collected at the point-of-sale. Currently, a significant percentage of eligible transactions are declined at the point-of-sale because they cannot be adequately substantiated in real-time. The service, which has a patent pending, is the first offering of its kind and provides a more streamlined solution for benefit administrators and merchants. Merchants will now only need to provide SKU/UPC/NDC data to MasterCard, and they should experience much higher approval rates.

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Moms Favor Reward Cards But Frustrated

A new survey has found that 41% of moms have rewards credit cards, but 53% of this group have not redeemed their points. The “All About Rewards” survey of moms nationwide, conducted by Harris Interactive and commissioned by the “Disney Rewards VISA” from Chase, also found that 41% of moms say they are dissatisfied with their rewards card program and 34% say their credit card does not offer the types of rewards their family wants. About 32% were frustrated by the restrictions their card carries. Nearly one-third were unsure of the rewards their credit card offers.

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Cash Systems’ Q2 Revenue Up 51%

Las Vegas-based Cash Systems reported that revenue for the second quarter hit $24.1 million, an increase of 51% year-over-year. The Company posted a $438,000 loss from operations in the second quarter compared to a loss of $2.7 million from operations in the second quarter of 2005. During the quarter Cash Systems signed multi-year contract renewals with Cannery Casino & Hotel and Rampart Casino, both located in Las Vegas, Nevada as well as Chickasaw Nation’s newest casino, Riverwind Casino. The Company says revenue is now expected to grow to approximately $90 million in fiscal 2006, up from prior guidance of $82 million. Also, Cash Systems expects a return to profitability in the fourth quarter. For complete details on Cash Systems’ latest performance, visit CardData ([www.carddata.com][1])

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

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FirstCity Eyes $4B in Debt Portfolios

TX-based debt buyer and collector, FirstCity Financial, reported second quarter earnings of $1.3 million compared to $2.7 million one-year ago. The Company purchased $25.2 million in portfolio assets during the second quarter and invested equity in these portfolios of $19 million. These purchases consisted of six portfolios — five in the USA and one in Europe. The Company is currently evaluating 35 different transactions representing over $4 billion in face value of assets. For complete details on FirstCity Financial’s latest performance, visit CardData ([www.carddata.com][1])

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

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