Oberthur Launches Two FIPS Certified Smart Cards

Oberthur Card Systems has received “Federal Information Processing Standard” “140-2 Level 3” certification for its “ID-One Cosmo 64 RSA D” and “ID-One Cosmo 64 RSA D” cards. Both cards comply with Precise Match-on-Card technology from Precise Biometrics. The “ID-One Cosmo 64 RSA D” is a dual interface multi-application cryptographic Java smart card specifically designed for the identity and government market.
The “FIPS 140-2” standard defines the security requirements that must be satisfied by cryptographic technologies used in security solutions that protect unclassified information. “FIPS 140-2” validation is required for any ID card products that are sold to the U.S. federal government.

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MasterCard Canada and SourceMedia Plan a Conference

MasterCard Canada and SourceMedia announced the first Financial and Payment Services Leadership Summit to be held November 7th and 8th in Toronto. Subtitled “Beyond Credit: The Future of Payments in
Canada,” the two-day summit will look at the future evolution of the
Canadian payments system, the role of consumer credit in the Canadian
economy, and the coming wave of innovation in the industry. Speakers will include key Canadian experts as well as international thought leaders such as Lawrence Bossidy, former CEO of Honeywell and
author, Executing and Confronting Reality, Malcolm Gladwell, author of The Tipping Point and the just-released Blink, and Michael Raynor, co-author with Clayton Christensen of The Innovator’s Solution.

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Bottomline Technologies Sales Up 17% in Q2

New Hampshire-based Bottomline Technologies reported quarterly revenue of $26.3 million, a 17% increase compared to 2Q/04. Net income for the quarter was $2.2 million, compared to $417,000 one-year ago. During the quarter, the company received 191 new orders for its “BACSTEL-IP” software solutions including Bank of America, British Airways, Co-Op Group Insurance and Accenture HR. BT also added United Missouri Bank and Colonial Bank as global customers and expanded its relationship with Fifth Third Bank. BT also acquired HMSL Group, a UK-based accounts payable automation services firm, in April. Bottomline provides payments and invoice automation software and services to organizations seeking more secure and efficient financial processes. For complete details on Bottomline Technologies’ latest results, visit CardData ([www.carddata.com][1]).

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

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GECF Invests $663MM in Hyundai Card

GE Consumer Finance has signed an agreement with Hyundai Card to form a strategic alliance in Korea and has released additional details.
Under the terms of the agreement, GE Consumer Finance will acquire a 43%
stake in Hyundai Card through a purchase of shares valued at $305
million, and participate in a rights issue in the amount of $162
million. In addition, GE will purchase subordinated debt in the amount
of $196 million, bringing its total investment in Hyundai Card to $663
million. The investment is GE Consumer Finance’s second in South Korea
in the last 12 months. In August 2004, GECF purchased an initial 38%
stake in Hyundai Capital Services, forming a joint venture under
which the two companies have been providing a variety of financial
services products to Korean consumers, including auto financing and
personal loans. Hyundai Card, is the third largest credit card company in Korea, with 3.4 million members and assets of more than $2.8 billion.

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ICMA Adds 6 New Members

The International Card Manufacturers Association has recently added
six new members. The new members include one principal member, or card
manufacturer, two personalizer members, two associate members and one
contributing member. The new Principal Member (Card Manufacturers) is
CardSuisse AG (Zug, Switzerland). Other new members include:
Communications Corporation of America (Boston, VA, USA);
Pittsburgh Embossing Services (Eighty Four, PA, USA); Technical Machine
Products (Cleveland, OH, USA); Fujifilm Sericol USA Inc. (Kansas City, KS,
USA); and M&M Engineering Consulting Inc.(Acton, MA, USA). ICMA is a
non-profit association of plastic card manufacturers, personalizers and
related industry participants. The group has 220 members globally.

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Northwest Airlines Extends Card Processing

Northwest Airlines confirmed that it executed a definitive term sheet that would amend and restate its credit card processing agreement until the end of 2008. The current processing agreement was set to expire in April 2006. The new terms include a provision that will allow a certain level of funds to be withheld from receipts by the processing bank, which would secure all obligations under the agreement as well as those of the co-branded credit card agreement. Other terms of the new deal include an option for prepayment of miles and fees to Northwest from the credit card issuer under the “Worldperks” program, subject to the company meeting certain requirements. U.S. Bank currently issues the “WorldPerks VISA” for Northwest Airlines. Northwest is the nation’s fourth-largest airline.

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TITANIUM CARD

The first “Titanium” card for India has been introduced by HDFC Bank and MasterCard. It is the second “Titanium” card to be issued in Asia. The new “HDFC Bank MasterCard Titanium Credit Card” features a 0% interest rate on balance transfers for the first three months and a monthly interest rate of 1.95% thereafter. Under the rewards program attached to the card, cardholders earn two reward points for
every Rs 100 spent up to Rs 10,000 per month. Cardholders also earn five reward points for every Rs 100 spent in excess of Rs 10,000. Reward points can be converted into miles for various airlines. The new card also features an extensive line of premium card perks such as concierge services and discounts at hotel and car rental firms.

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Target’s Credit Card Profits Up 28% in Q2

Target reported that its pre-tax credit card profits for the quarter ending July 30th increased 28% over the year ago quarter and 8% sequentially. Excluding the disposition of its Mervyn’s and Marshall Field’s card portfolios, Target’s credit card receivables increased 15% compared to 2Q/04. Target’s second quarter pre-tax credit card profits were $153 million, compared to $142 million in the prior quarter, and $120 million one-year ago. Target reported that its total credit card receivables, which include its VISA and “Guest” cards, were $5.42 billion as of July 30th, compared to $4.72 billion one-year ago. Delinquency (90 days+) for 2Q/05 was flat at 3.0%, compared to the prior quarter, and 3.8% one-year ago. Charge-offs were 7.2% for 2Q/05 compared to 7.4% in the prior quarter, and 8.8% one-year ago. Target’s credit card unit had revenues of $293 million in 2Q/05, a 14% increase over 2Q/04. For complete details on Target’s latest performance, visit CardData ([www.carddata.com][1]).

TARGET CARD LOAN HISTORICAL
(Excludes Mervyn’s & Marshall Field’s)
2Q/04: $4.716 billion
3Q/04: $4.914 billion
4Q/04: $5.456 billion
1Q/05: $5.251 billion
2Q/05: $5.421 billion
Source: CardData (www.carddata.com)

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

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ACCEL/Exchange POS YTD Transactions Up 50%

The Fiserv-owned “ACCEL/Exchange Network,” the nation’s fifth largest EFT network, posted a 50% gain in POS activity for the first six months of this year. POS transactions totaled 160 million for the first half. Total transactions for the period rose 40% year-on-year. “ACCEL/Exchange” transactions are currently enabled at 73,000 ATMs and approximately 2.4 million POS devices nationwide. Fiserv EFT is an ATM and POS processing business. Overall, Fiserv EFT reported volume of 2.28 billion transactions, a 13% increase over comparable 2004 volume of 2.02 billion. For complete detail on Fiserv’s second quarter results, visit CardData ([www.carddata.com][1]).

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

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America West Airline Expands UATP Acceptance

America West now accepts UATP payments at all points of sale including its Web site. The expanded service makes UATP an easy to choose payment selection from the America West drop down menu for online bookings by corporate travelers with all UATP cards. UATP accounts are accepted as a form of payment for corporate business travel by more than 200 airlines worldwide. America West operates over 900 flights daily to more than 90 destinations in the U.S., Canada, Mexico and Costa Rica.

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Heartland Payment Systems Prices its IPO

New Jersey-based Heartland Payment Systems set its planned IPO at 6.75 million shares at an estimated price of $14 to $16 per share. The offering is being made through an underwriting syndicate led by Citigroup Global Markets Inc. Heartland Payment Systems, Inc. provides bank card-based payment processing services to small- and medium- sized merchants in the United States.

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