Scotiabank Expands Latin American Card Portfolio

Scotiabank is expanding its operations in the Caribbean and Central America with the acquisition of Citibank’s retail banking business in the Dominican Republic. The acquisition consolidates Scotiabank’s position as the Dominican Republic’s fifth-largest private bank by assets, with 57 bank branches, 75 automated banking machines and more than 1,000 employees. Scotiabank will continue a co-branding
agreement with American Airlines, giving it exclusive rights to issue
American’s “AAdvantage” travel awards program co-branded cards in the
country. Scotiabank has US$285 billion in assets.

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Elan Acquires a Penn. Portfolio

Elan Financial Services has signed a deal to acquire the $14.5 million credit card portfolio of Pennsylvania-based Harleysville National Bank and enter into an agent relationship. Under the agreement, Elan has purchased the bank’s existing credit card portfolio, and subsequently will issue credit cards for the bank under the Harleysville name. As of March 31, 2006, the bank held approximately $14.5 million in credit card receivables. Harleysville National Corporation expects to report a gain for the second quarter of 2006 from the sale, net of federal income taxes, of approximately $900,000 or $.03 per diluted share. The Bank will continue to earn certain fees from ongoing portfolio activity.

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POSLynx220 Gets Class B Certification

Precidia Technologies has announced its “POSLynx220”
with “NetVu” has received Class B certification. The certification will
allow RBS Lynk’s retail and restaurant merchants to process faster, more
cost effective transactions over an IP network using their existing dial
based terminals. RBS Lynk can now offer a one box solution to restaurants and convenience stores that have an on-premise ATM in addition to payment terminals or PC cash registers. All of these devices can be connected to the multiport “POSLynx220,” for seamless Internet-based processing and network accessibility. Precidia Technologies designs and manufactures of IP access devices. RBS Lynk is a provider of electronic payment processing services.

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CardinalCommerce and Humboldt Team

CardinalCommerce and Humboldt Merchant Services have entered into an agreement to support the deployment of 3-D Secure authentication. The agreement established between CardinalCommerce and Humboldt Merchant Services results in Humboldt Merchant Services recommending the CardinalCommerce 3-D Secure payer authentication technology to its merchants interested in implementing the Verified by Visa and MasterCard SecureCode programs. CardinalCommerce currently provides authentication services through its proprietary technology, Cardinal Centinel.

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WaMu Card Profits Up 27% Sequentially

Seattle-based Washington Mutual/Providian reported that credit card profits climbed 27% from the fourth quarter to $210 million. During the first quarter, the issuer opened approximately 750,000 new card accounts, a third of which were WaMu retail customers. Average managed receivables topped $20 billion with over 10 million customer accounts at the end of the quarter. The 30+ day managed delinquency rate at the end of March was 5.18% of total managed receivables, up slightly from 5.07% at December 31st. Managed net credit losses at 5.79% were down from the fourth quarter’s 7.28%, a quarter during which abnormal bankruptcy-related charge-offs. For complete details on WaMu’s latest performance, visit CardData ([www.carddata.com][1]).

WaMu/Providian Net Income Track Record
1Q/05: $133.0 million
2Q/05: $225.3 million
4Q/05: $166.0 million
1Q/06: $210.0 million
Source: CardData (www.carddata.com)

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

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Online Chargebacks Near CP Levels

A new survey has concluded that online fraud rates for merchants are now similar to the fraud rates of brick-and-mortar stores due to the vigilance of online retailers. The Merchant Risk Council says card-present fraudulent chargeback rates are usually less than 0.1% of sales. The MRC found that 48% of the online retailers surveyed said that their chargebacks match that rate. Since 2001, online merchants report that the effectiveness of “Address Verification Systems,” for example, has dropped from 70% to 25%, although its use rose from 70% to 83% over the same period. Similarly, the adoption of “Card Verification Codes” increased from 38% to 73% but merchants report a decline in its effectiveness from 49% to 31%.

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TSYS First Quarter Revenues Up 18%

TSYS reported that first quarter profits rose 9% year-on-year to $50.4 million. Revenues for the quarter increased 18% to $412.3 million, compared to 1Q/05. Accounts on file increased to 440.4 million as of March 31st, up 19% from one-year ago. TSYS also reports that stored value accounts rose 18% to 14.9 million. Total consumer accounts on file at the end of the first quarter rose 28% to 272.5 million. During the first quarter, TSYS renewed its multi-year agreement to provide CompuCredit with processing and related services. TSYS says it expects total revenues for 2006 to increase between 6% and 8%. Also, that accounts on file at the end of the year will be approximately 395 million to 405 million. For complete details on TSYS first quarter performance, visit CardData ([www.carddata.com][1]).

TSYS REVENUE HISTORICAL
1Q/05: $350.0 million
2Q/05: $410.2 million
3Q/05: $422.0 million
4Q/05: $420.7 million
1Q/06: $412.3 million
Source: CardData (www.carddata.com)

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

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25 Million Mobile Wallets by 2011

A new report projects that as many as 25 million wireless phone subscribers in North America could be using their mobile phones as mobile wallets by 2011. However, AZ-based In-Stat said it found that attitudes of U.S. users towards mobile wallets are at best, lukewarm, with roughly one-third of respondents interested, one-third indifferent, and one-third uninterested. The most frequently mentioned barrier to the mobile wallet is added fees for its use (72% of respondents), followed by security concerns about loss of the phone and privacy.

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EZCheck Check Services Renews ECHO

Electronic Clearing House has signed a three-year agreement extending its long-standing partnership with EZCheck Check Services. Under this new agreement EZCheck will continue to utilize ECHO’s Automated Clearing House and authorization processing services, including risk management services, to augment its own check processing and check conversion infrastructure. Through ECHO’s range of products and access to other third party databases, EZCheck will be able to secure additional resources that aid in negative data acquisition, risk management integration and ultimately reduction of a merchant’s bad check experience. These resources, along with the robust ACH and transaction processing services supplied by ECHO, enable EZCheck to provide a suite of quality products and services to its merchant customers. EZCheck is a information and payment services company.

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