Heartland’s Chief Executive Named Top Entrepreneur

NJ-based Heartland Payment Systems’ chairman, CEO and founder, was named “Ernst & Young New Jersey Entrepreneur Of The Year” in the category of Financial Services Carr was selected by an independent panel of judges comprised of local community and business leaders from among 31 finalists nominated in eight different industry categories representing 27 companies in 25 towns across New Jersey, such as retail and biotech firms. The Entrepreneur Of The Year awards program was created and is produced by professional services firm Ernst & Young LLP.

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Infineon to Offer Ten Year Chip Card Controllers

Munich-based Infineon Technologies plans to offer new chip card controllers for improved security of electronic identity cards and passports. Infineon’s “SLE66CLX640P” security controller is designed for tomorrow’s chip card-format electronic ID cards, while the controller
is intended for integration into electronic passports. Until now, chip
cards have been designed for a maximum useful lifetime of five years,
whereas electronic ID cards and passports are generally valid for ten
years. Infineon’s chips are the only products in the world capable of
supporting both of the contactless interface formats that dominate the
marketplace, ISO/IEC 14443 Type A and Type B, which differ in the data
transmission protocols they employ.

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Tidel Technologies Settles Shareholder Lawsuits

Houston-based Tidel Technologies has settled a consolidated shareholder lawsuit for $3 million and two million shares. In the agreement, Tidel and the officers and directors named in the lawsuits continue to deny any and all allegations of wrongdoing, and they will receive a full release of all claims asserted in the litigation. Tidel Technologies, Inc. is a manufacturer of automated teller machines and cash security equipment designed for specialty retail marketers.

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Zinek AB Launches its Mobile Banking System

Uppsala-based Zinek AB has launched its “Mobile Banking” system.
Zinek’s systems are powered by the robust “Mobile Message Engine”
server, which has the scalability and extendibility to fit all the physical demands and characteristics financial institutions can possible throw at it. The feature rich server enables banks to quickly launch services like: account balance requests, recent transaction inquiry,
internal account transfer, stock exchange information requests, alerts and automatic help desk, while many more customized banking services can be seamlessly launched on top of the extendable plug in architecture.
Currently Zinek sells the “Mobile Banking” system / “Mobile Message Engine” server product to service providers, systems integrators, ISP’s and large enterprises, enabling them to launch secure and multiple interactive mobile messaging services into their networks.

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Interest Costs and Operating Expenses Rise

Rising interest costs and operating expenses are continuing to eat into profitability. The after-tax, return-on-assets for credit card issuers dipped to 1.53% in May, sharply lower than the previous two years. However, the current ROA remains slightly above the May 2001 level of 1.49%, driven by lower funding costs over the past three years. The net interest margin declined to 6.69% in May, compared to 8.33% one-year ago, according to CardData ([www.carddata.com][1]). Meanwhile, operating expense has climbed to 5.10%, compared to 4.74% for May 2003, but down slightly from the prior month. For complete monthly and quarterly portfolio performance metrics visit CardData ([www.carddata.com][2]).

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[1]: http://www.carddata.com
[2]: http://www.carddata.com
[3]: http://www.cardweb.com/images/c/charts3/may_aprmetrics.jpg

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OTI’s MediSmart Solution Deployed in the USA

On Track Innovations has entered the U.S. healthcare market with its “MediSmart” solution. OTI has signed a VAR and licensing agreement with J4 Technologies to integrate OTI’s “MediSmart” contactless smart card-based medical card program into J4 offerings to the health care industry in the U.S. This follows the successful implementation of OTI’s “MediSmart” by CareCross Health, the leading primary healthcare provider in South Africa. “J4 MediSmart’s” pricing model is based on pay-per-use, negating the need for large capital expenditure by the user. OTI generates revenues on the “MediSmart” contactless smart cards, readers, support and maintenance as well as on-going transaction fees.

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American Express Launches Selects Program

American Express has added a new benefit for cardholders in eleven countries that offers nearly 1,000 special discounts worldwide. The new “American Express Selects” program is available to cardholders in the USA, UK, Canada, Mexico, Argentina, Australia, Malaysia, France, Italy, Singapore and Greece. In the coming months, AmEx expects to make the service available to a wider range of merchants in an increasing number of locations. The Company also noted that it has adopted a strict criteria for the new program to ensure that all offers on “Selects” meet its standards for value and duration of the offer. Samples of U.S. savings include 25% car rental discounts and up to 20% off rates from national hotel chains.

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Fifth Third Processing Solutions Hires Drucker

OH-based Fifth Third Bancorp has hired Charles Drucker, former EVP/COO of First Data’s STAR Debit Services, as president of Fifth Third Processing Solutions. Mr. Drucker will be responsible for strategy, sales, product development, relationship management and administration for Fifth Third Processing Solutions’ Merchant Services, Financial Institutions and Card Products businesses. Mr. Drucker holds a Bachelor of Science degree in Management. He formally served on the MasterCard Acquirer’s Committee and the Visa Acquirer’s Council. Fifth Third Processing Solutions processes over nine billion ATM and POS transactions per year for more than 1,650 financial institutions and over 201,000 retail locations worldwide.

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GlobalPlatform Smart Card Seminar Scheduled

GlobalPlatform is hosting a free one-day business seminar on 14
September at Børsen, the Royal Exchange, in Copenhagen, Denmark.
Cryptomathic is co-hosting the event. In addition to gaining a basic
grounding in the benefits of GlobalPlatform technology, seminar
participants will hear from industry experts who have developed
GlobalPlatform solutions for their EMV and PKI application programs and
gain a technical insight into the latest developments of
GlobalPlatform’s infrastructure and strategies. Presentations will be
delivered throughout the day by representatives
from GlobalPlatform Member organizations, including Axalto,
Cryptomathic, Datacard Group, Giesecke & Devrient, Setec,
STMicroelectronics, and Visa International. Guest presentations will be
delivered by speakers from Luottokunta, Rosan Finance, Skandiabanken and
the US Department of Defense.

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Diners Club Offers America West Discounts

America West is offering Diners Club cardholders a 20% discount on redemptions for First Class seats through September 30th. As the Card of choice for leading corporations, frequent travelers, and affluent individuals around the world, Diners Club is a premier provider of innovative solutions, powerful information and data, unmatched service, and award-winning rewards.

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The ICMA Adds 7 Card Manufacturers and 4 Suppliers

The International Card Manufacturers Association has added eleven new members, including seven principal members, or
card manufacturers, and four associate members, or suppliers.
New principal members include: Abaker Printing Co. (Riyadh, Saudi Arabia); Aristos Philis SA (Alexandroupolis, Greece); dz card Philippines Inc. (Paranaque City, Philippines); dz card/India Pvt. Ltd. (Gurgaon-Haryana, India); Interlock AG (Steinhaldenstrasse, Switzerland); Leigh Mardon (Victoria, Australia); and, SOKYMAT SA (Veveyse, Switzerland). New associate members include: Charoen Pokphand Petrochemical Co.,Ltd. (Bangkok, Thailand); Datum Automation Ltd (Hampshire, England); Goex Corporation (Janesville, WI, USA); and, Prime Factors, Inc. (Eugene, OR USA).

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Cap One Becomes a Bank Holding Company

The Federal Reserve Board announced its approval of the application filed by Capital One Financial Corporation, McLean, Virginia, to become a bank holding company after the amendment of the charter of its subsidiary, Capital One Bank, Glen Allen, Virginia, from a limited-purpose, credit-card bank charter to a full-service bank charter.

Attached is the Board’s Order relating to these actions.

[Click here to view the full PDF][1]

[1]: /cardflash/secure/oldstatic/2004/july/capitalone.pdf

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