TSYS Loses BofA Consumer Card Processing

Bank of America, pending its acquisition of MBNA, has notified TSYS of its intent to bring the processing of its consumer card portfolio in-house next October. The BofA decision will reduce TSYS annual revenues by approximately 14.9%. However, TSYS expects to continue providing commercial and small business card processing for BofA and MBNA as well as merchant processing for BofA. BofA will pay a termination fee related to the deconversion of the consumer portfolio. TSYS says all relationships with BofA and MBNA are expected to generate a combined total of $376.9 million in revenues for 2005, or 23.5% of total revenues. TSYS projects an annualized loss of approximately $239 million in revenues upon deconversion of the consumer card portfolio that BofA plans to move in-house.

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E-Shoppers Seek Jewelry & Luxury Goods

While many online retail subcategories saw significant growth at the start of the holiday shopping season, a new report has found that jewelry and luxury goods led the list of top gaining categories in November with 39% growth over October. The latest monthly analysis from comScore Media Metrix also found that retailers featuring a presence online and offline reached 62.1 million visitors in November. The category was carried by Wal-Mart.com which received 32.1 million unique visitors in November, up 54% from October. comScore Networks earlier this week said it expects consumer spending at U.S. Internet sites to exceed $19.5 billion for the holiday season, a 24% jump over 2004. Online spending topped $3 billion for the week ending December 11th, the highest for the season. VISA reported that e-commerce spending grew by 33.2% the week of December 5-11, compared to the same period in 2004.

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ABA Forms a Health Savings Account Council

The American Bankers Association and the American Bankers Insurance Association jointly announced the formation of The HSA Council, an organization of banks, insurers and technology leaders committed to increasing the distribution of health savings accounts through banks The HSA Council will identify public policy hurdles and propose solutions to decision-makers in Congress and the administration in hopes of increasing the adoption velocity of health savings accounts in the health insurance market. ABIA is a separately chartered affiliate of the American Bankers Association.

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Asia Pay Signs Alliance Agreement with InterPay

Shenzhen-based Asia Payment Systems has signed an alliance agreement
with Singapore-based InterPay International. The two
companies will cooperate in markets across Asia with a special emphasis
on developing business in China. Asia Pay and InterPay have formed a
joint project team to develop and implement an action plan. One
opportunity already identified is the provision of processing systems
and technical support to second tier Chinese banks which is expected to
facilitate future partnership opportunities with Chinese financial
institutions. Asia Pay is developing a credit card processing network
that provides clearing services to merchants and financial
institutions in China, Japan, and other markets in Asia. InterPay
International is the holding company for a group of companies
offering payment and loyalty card and online re-charge products and
services throughout Asia.

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Restaurant.com Joins the Futuretrust Net

The “Futuretrust MasterCard” program has partnered with Restaurant.com to offer a 15% rebate to cardholders. The rebates can be applied to tax-free savings programs for any accredited college, university, or trade school. Futuretrust is a MasterCard-linked college savings program to get a head-start on college savings. The Futuretrust program has no membership fee or caps to the amount of rebates a member can earn. Rebates are automatically contributed to a tax-advantaged 529 college savings plan of the member’s choice. Restaurant.com offers $25 dining certificates for $10 that can be used at 7,000 restaurants nationwide. Futuretrust members also earn 1% of sales every time they make a purchase with the Futuretrust MasterCard.

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Nuevo Banco to Issue American Express Cards

Nuevo Banco Comercial has signed an agreement to affiliate new establishments to the American Express merchant network and issue AmEx-branded products in the local market. This first Uruguayan
partnership for AmEx. Nuevo Banco Comercial has 48 branches and is the top issuer of credit and debit cards in the country. Under terms of the deal, the bank will be responsible for all operations supporting the card as well as acquiring and servicing local merchants accepting the AmEx cards in Uruguay.

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Wachovia Names a Contact Center Chief

Wachovia has named John McCabe to be General Manager of its contact center organization, replacing Steven Boehm, who recently was named president of the newly formed Wachovia Credit Card division. McCabe will be responsible for approximately 5,500 employees at Wachovia’s 12 large-scale contact center sites. Prior to joining Wachovia in 2000, McCabe served as president and managing director of ICT Group, one of the largest customer outsourcing companies in the world. McCabe earned a master’s in business administration from City University of New York at Baruch College. Wachovia had assets of $532.4 billion, market capitalization of $73.9 billion and stockholders’ equity of $46.8 billion at September 30, 2005.

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MS & GOLDFISH

Morgan Stanley has agreed to purchase Lloyds TSB “Goldfish” credit card
unit for GBP 1 billion which includes a 22% premium. The deal adds
800,000 credit card accounts to the MS card portfolio which currently
has 1.5 million accounts in the UK. Lloyds TSB fully acquired the
“Goldfish” business in August 2003 in a GBP 112.5 million deal with
energy supplier Centrica (f/k/a British Gas). At the time Centrica held
a 70% stake in Goldfish Bank Ltd. At the time of the 2003 deal, the
“Goldfish” credit card portfolio had 1.18 million cardholders, 11,000
personal loan accounts and 17,000 retail savings accounts. However,
Goldfish Bank had an operating loss of GBP 30 million in the first half
of 2003. Centrica began the “Goldfish” credit card program in 1996 in a
partnership with Household International. In September 2001 Centrica
purchased HFC Bank’s entire rights and interests in the “Goldfish”
credit card for GBP 85 million. (CFI Library 8/7/01; 8/1/03)

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NCR Expands its Self-Serve Kiosk Business

NCR has acquired another self-service kiosk provider. FL-based, privately held Galvanon has been purchased by NCR for an undisclosed amount. Galvanon offers kiosks, Web self-service applications and technology for health care organizations. Founded in 2002, Galvanon has more than 50 customers, including Baylor Health Care System, Westchester Medical Group, Providence Health Systems and numerous urgent care centers nationwide. Galvanon’s operations and its founders will remain in Maitland, Florida and will operate as a wholly owned subsidiary of NCR Self-Service LLC. In October of 2004, NCR acquired Kinetics, a privately held provider of self-service solutions for the travel industry for $26 million. (CF Library 10/4/04)

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ACS Acquires Ascom Transport Revenue Division

Ascom has sold its Transport Revenue Division to ACS for CHF 130
million. ACS acquired the Transport Revenue Division with its businesses
in Fare Collection and Parking with locations in Switzerland, France,
USA, Italy, Great Britain, Spain, Hong Kong, Mexico and Chile as well as
the North and South American part of the Toll business unit. All 789 employees and related business activities have been transferred from Ascom to ACS. Ascom provides analysis and consulting, system design and system integration, project management, engineering and implementation.

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USTT Seeks a Reverse Stock Split

Pennsylvania-based USA Technologies has completed a $4 million private placement and is planning to do a 1-for-100 reverse stock split to end its penny stock days. As a condition of the transaction, and at the request of the Investor, the Company has agreed to file a proxy and call a Special Shareholder Meeting. Proceeds will be used for working capital and other general corporate purposes. The Company issued to the Investor 40 million shares of common stock at $0.10 per share. USA Technologies provides networking of wireless non-cash transactions, associated financial/network services and energy management.

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BOC Finalizes Diebold Opteva ATM Deal

Diebold and Bank of China have finalized the purchase of 642 “Opteva”
ATMs. Under the present guidance of the State Council and China’s Banking Regulatory Commission, BOC is undergoing an aggressive and resolute reform to raise the efficiency and profitability of its bank branches. The bank aims to transfer about 40 percent of its traditional teller transactions to its self-service delivery channel by 2008, while increasing surcharge revenue through self-service transactions. BOC has
more than 560 international offices in 25 countries and regions.

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