Capital One Finalizes Deal to Switch to TS2

Georgia-based TSYS has finalized a five year definitive agreement with Capital One to provide processing services for its North American portfolio of consumer and small business credit card accounts. Capital One has more than $46 billion in managed loans in its US Card division. TSYS plans to complete the conversion of Capital One’s portfolio from its in-house processing system to the TS2(R) payments engine in phases, beginning in late 2006 and ending in early 2007. Capital One’s subsidiaries collectively had 48.9 million accounts and $83.0 billion in managed loans outstanding as of June 30, 2005. TSYS provides outsourced payment services.

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First Data Buys Austria’s Top Card Processor

First Data has signed an agreement to acquire Austrian Payment Systems Services, Austria’s top card processor. Under the terms of the agreement, APSS’ headquarters will remain in Austria and the company will continue to manage its relationships with Austrian banks locally. The acquisition complements First Data’s expansion last year into Greece and this year into Slovakia, Lithuania, Latvia, Serbia, Montenegro, Russia, Hungary and the Nordic region. APSS provides the country’s banking industry with debit and credit card issuing and acquiring processing, as well as card network operations and terminals and ATM processing. The deal is expected to close in the fourth quarter.

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RBS to Launch the FXmicropay Service

The Royal Bank of Scotland has signed an agreement with BitPass to enable automated foreign exchange management online. BitPass will use the “RBS FXmicropay” service to aggregate, execute and settle transactions in more than 30 currencies, allowing international online content brands and portals that leverage the BitPass platform to conduct cross-border content sales at a high volume, while RBS manages the FX risk. “FXmicropay” has a capacity for over 3,000 transactions per second. The “BitPass Network” has more than 2,500 merchants in
over 30 countries. Buyers from more than 100 countries can use BitPass to purchase and access their favorite content.

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Troy Aikman to Demo PayPass at McDonalds

NFL legend Troy Aikman will demonstrate MasterCard’s “PayPass” cards to purchase meals for members of the Madison Square Boys and Girls Club at a McDonald’s restaurant in midtown Manhattan. MasterCard will make a matching donation to the Madison Square Boys and Girls Club for each lunch purchased during the event. MasterCard PayPass uses radio frequency technology to transmit payment details. MasterCard International manages a family of well-known, widely accepted payment cards brands including MasterCard(R), Maestro(R) and Cirrus(R) and serves financial institutions, consumers and businesses in over 210 countries and territories.

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Intelli-Check Lands a Private Placement

NY-based Intelli-Check has landed a private placement of about $5 million this week. The company will sell up to 1,240,000 shares of its common stock at $4.00 per share. As part of the offering, investors will also receive warrants to purchase up to an additional 496,000 shares of the company’s common stock at $5.40 per share. JMP Securities LLC acted as the sole placement agent of the offering. Intelli-Check, Inc. provides technology that assures the authenticity of driver licenses, state issued non-driver and military identification cards used as proof of identity.

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August RBC CASH Index Remains Pessimistic

The “RBC CASH Index” for August dropped again to a new low following a drop in July reflecting increasing pessimism about the economy and investing, however, the survey also found that American consumers feel good about their jobs. The RBC Jobs Index stands at 114.6, up significantly from last month’s 109. A majority (52%) now feel it is unlikely that they, someone in their family or someone they know personally will lose a job as a result of economic conditions. The CASH Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal financial situations, savings, and confidence to make large investments. The Royal Bank of Canada is Canada’s largest bank as measured by assets and is a diversified financial services companies.

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MasterCard to Use PocketServer for Smart Cards

MasterCard has agreed to purchase TranSend’s “PocketServer v3.2” for issuance on its European smart cards. The purchase will be used to support two additional MasterCard member banks with pilot programs using the “OneSMART Web” package. “PocketServer” and “PocketServer Plus” have more than 4 million users, providing a convenient and secure online experience coupled with two-factor authentication. Arizona-based TranSend also offers “CardTouch,” a stored value clearinghouse platform.

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July Retail Sales Slow But Jobs Jump

U.S. retailers sales slowed in July but employers added 207,000 workers last month. Retail Metrics says its tracking showed that same-store sales rose 3.7% in July compared to one-year ago. However, that was below consensus expectations of 4.2%. In June the figure stood at 5.4%. Meanwhile, the Bureau of Labor Statistics of the U.S. Department of Labor reported that both the number of unemployed persons, 7.5 million, and the unemployment rate, 5.0%, were unchanged in July. A year earlier, the number of unemployed was 8.2 million and the jobless rate was 5.5 percent. Consensus expectations was for a job gain growth of 183,000 jobs.

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InfiCorp Does $41MM in CU Card Partnerships

Atlanta-based InfiCorp Holdings reports it has recently purchased more than $41 million in credit card outstandings from six credit unions. In each case, the CU entered into a long-term relationship with InfiCorp. Recent acquisitions include: Tucson Old Pueblo CU, Pan Am Horizons FCU, First Financial CU in Albuquerque, Royal Oakland Community CU in Michigan, Helena Community CU and Allegius FCU in Indiana. InfiCorp has partnerships with more than 100 credit union and community banks. InfiCorp Holdings is a wholly-owned subsidiary of First National of Nebraska.

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