PaymentOne Inks Acclaim Games

Acclaim Games has signed an agreement with San Jose-based PaymentOne to provide a variety of “no credit card required” payment options for its consumers. PaymentOne’s “PhoneBill” solution allow over 180 million consumers to easily have digital charges put onto to their existing broadband and landline accounts. These “no credit card required” options eliminate the need and significant hurdle for the consumer to provide sensitive private credit card information. PaymentOne has generated over $2 billion of incremental revenue for digital merchants.

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Emigrant Boosts its Cash-Back Rebate

New York-based Emigrant Bank has raised the amount of the cash back rebate for its “EmigrantDirect Platinum MasterCard” from 1.25% to 1.40%, retroactive to the inception of the card in January. The maximum benefit of the card is offered to those with an average daily balance of $10,000 in an EmigrantDirect American Dream Savings Account, about one third of a typical customer’s EmigrantDirect savings account. The rebate, for which all purchases qualify, is deposited bi-annually into the account. EmigrantDirect’s American Dream savings account has attracted more than 225,000 customers and $6 billion in deposits since its launch in Jan. 2005.

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Unified Western Grocers Go VPN

Unified Western Grocers, the largest retailer-owned wholesale grocery cooperative in the Western United States, is deploying the Netifice “Retail Connect” VPN service to support data communications between its member stores for credit card processing. Currently, UWG is rolling out the service to increase bandwidth and decrease connectivity costs for 140 stores and plans to add an additional 200 members following the initial implementation. Retail Connect enables stores to conduct electronic authorization and payment services with leading credit card processors.

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Corillian and Getronics Sign Deals

Corillian and Getronics have signed a multi-year reseller and systems integration agreement to deliver comprehensive online financial services to financial institutions worldwide. Getronics will resell and implement Corillian’s Voyager platform and online banking applications as its preferred offering for financial institutions who in turn will be able to benefit greatly from the addition of the Voyager platform to Getronics’ retail banking solution that includes their Globalfs multi-channel branch software as well as comprehensive security, IP communications, and workspace management infrastructure services. Corillian is a provider of online banking, bill payment and fraud prevention solutions to the financial services industry.

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Cap One CEO Gets a Big Payday in 2005

Capital One’s top executive realized a gain of more than $249 million last year. The big payday for Richard Fairbank was due to exercised options to buy about 3.6 million shares. In 2004, Fairbank earned $56 million. Most of the exercised options in 2005 were granted more than ten years ago and were nearing their expiration. At the end of 2005, Fairbank held options on an additional 8.2 million shares. Fairbank gave up salary, bonuses, etc. in 1997 in exchange for stock options. Meanwhile, the chief executive of American Express had his payday increase 10% in 2005 to more than $23 million. Ken Chenault earned $1 million in salary, $6 million in a bonus, $9 million in a restricted stock award, and $7 million in miscellaneous compensation, primarily employee benefits.

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E-Monee.com to Market Crewpay Cards

E-Monee.com has signed an agreement to market its “Global
Electronic Treasury System” in Jeddah. E-Monee’s pre-paid
consumer card, “Crewpay” will substitute payments of payroll currently
made in cash to thousands of international workers. The “Crewpay Card”
allows individuals to receive pay via E-Monee’s private network of ATMs
in the currency of choice and features a MasterCard that lets individuals
spend money or make purchases anywhere in the world. Workers will also be
able to credit money to their “Crewpay” companion cards for family members
residing in their native countries enabling the international workers to
eliminate the traditional money sending costs. E-Monee also features a “Crewpay MasterCard.”

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Industry Eats Record Bankruptcy Losses

The bank credit card industry lost more than $25 billion during 2005 due to personal bankruptcies. The record loss was driven by the introduction of new laws which created a stampede of filings in February when passage was imminent and in the fall when the new rules took full effect. It took Congress eight years to reform the bankruptcy laws and during that period credit card issuers lost more than $147 billion. Since 1996, charge-offs cumulatively total $332 billion, peaking in 2005 at more than $50 billion. In 1995, bankruptcy-related charge-offs were $4.6 billion, or 30% of gross charge-offs. In 2001, bankruptcy-related charge-offs doubled from year 2000, from $9.9 billion to $19.1 billion, comprising 48% of all charge-offs, according to CardData ([www.carddata.com][1]). Last year, 50% of all charge-offs ended up in a bankruptcy filing.

BANK CREDIT CARD BANKRUPTCY LOSSES
($ billions)
YEAR RECV C-O C-O BR NET
1995: $358 4.31% $15.4 30% $ 4.6
1996: $412 4.85% $20.0 41% $ 8.2
1997: $444 5.63% $25.0 42% $10.5
1998: $454 5.49% $24.9 42% $10.5
1999: $490 4.98% $24.4 40% $ 9.8
2000: $569 4.58% $26.1 38% $ 9.9
2001: $608 6.55% $39.8 48% $19.1
2002: $661 7.51% $49.6 47% $23.3
2003: $677 7.22% $48.9 46% $22.5
2004: $698 6.22% $43.4 38% $16.5
2005: $711 7.11% $50.6 50% $25.3
RECV-year-end receivables; C-O: charge-offs; BR- percentage
of charge-offs in bankruptcy; NET: net losses due to bankruptcy.
Source: CardData (www.carddata.com)

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

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Jefferson Wells Becomes a VISA QDSC

Milwaukee-based Jefferson Wells has been named a VISA “PCI Qualified Data Security Company”. Having been recognized by Visa USA, Jefferson Wells is now able to perform on-site security audits for merchants and processors who accept and process payment cards. In June 2001, Visa USA introduced the Cardholder Information Security Program to help protect cardholder data wherever it resides in the Visa payment system. The program is intended to ensure that members, merchants and service providers maintain the highest information security standard. Jefferson Wells is a global provider of professional services in the areas of risk, controls, compliance and financial process improvement.

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Contactless e-Port Solution Released

PA-based USA Technologies has introduced the sixth generation of its “e-Port” payment card solution for vending machines. The new “e-Port G6” will now support contactless cards. The new contactless “e-Port” technology is currently undergoing marketplace trials by MasterCard in hundreds of vending locations across multiple U.S. cities. The new “G6” unit can be mounted in the machine’s existing bill acceptor opening or mounted anywhere on the face of the vending machine. USAT says it will sell for the same price as the “e-Port G5. The Company estimates that there are 8 million vending machines in the U.S., and the estimated 30 million vending machines worldwide.

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Credit Agricole Martinique Deploys NCR Personas ATMs

NCR Corporation announced the rollout of 30 new NCR “Personas M
Series 87” ATMs with image-based “Intelligent Deposit” capabilities at
Credit Agricole Martinique bank branches in France and French Guiana.
Credit Agricole Martinique’s initiative is part of the bank’s “New
Concept Branch” project which gives its customers more autonomy in
performing everyday banking transactions. The cash or check deposit
function available with NCR’s “Personas M Series” has largely contributed
to attaining this goal. With these deposit-taking units in place, Credit
Agricole Martinique has successfully increased available times to
conduct banking transactions and also offers immediate crediting of
deposits to customer accounts.

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Cash Systems Hires a New EVP/CFO

Las Vegas-based Cash Systems has landed Andrew Cashin, formerly with Alliance Gaming, as its EVP, CFO and Treasurer. Cashin brings more than 17 years of financial and operational experience as well as 13 years of experience in the gaming industry. During his ten years at Alliance Gaming, Inc., Cashin most recently served as a Senior Vice President of Bally Gaming, where he ran all business lines in the division, including the Sierra Design Group. Cashin has directly managed seven business integrations, including four systems technology acquisitions. He was also responsible for the daily oversight of Bally Gaming & System’s finance department from 2000 through 2003. Mr. Cashin began his professional career as an accountant with Arthur Andersen & Co.

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Voca Lands a SEPA Expert

Voca has appointed Erik Mansson as Director of European Business
Development. Mansson will lead Voca’s engagement with the European banking
community as Voca rolls out its new payments infrastructure. Mansson is a
leading expert on European cross-border payments and
electronic funds transfers in the Single Market. He joins Voca from the
European Central Bank, where he was the Senior Market Infrastructure
Expert. His role at the ECB included facilitating the development and
implementation of the SEPA strategy. He was responsible for coordination
of the ECB’s contacts with commercial banks through the European
Payments Council (EPC), and those with corporates through the European
Association of Corporate Treasurers (EACT). In addition to his experience
at the ECB, Mansson brings 15 years’ experience in the payments industry
gained in both corporate treasury and banking. He holds an MBA from the
Stockholm School of Business. Voca is a provider of payments services.

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