MasterCard & Acculynk Launch Debit E-Commerce Authentication

Acculynk signed agreements to provide MasterCard Worldwide “PaySecure,” its Internet PIN debit solution, to U.S. financial institutions that issue Debit MasterCard cards. With “PaySecure,” cardholders are given optional verification method for PIN-based e-commerce transactions. In keeping with MasterCard’s commitment to innovation in debit, the agreement provides participating financial institutions an opportunity to expand and enhance their e-commerce authentication methods with PaySecure via the MasterCard Worldwide Network. PaySecure appears as a payment option at an enrolled online merchant’s checkout screen when the consumer’s debit card is issued by a financial institution that has enrolled its cards in the PaySecure service. Rather than typing in their PIN, consumers enter their PIN using their mouse on Acculynk’s patented, graphical PIN-pad to complete the transaction.

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eAccess LLC to Supply Smart Cards to PATH

eAccess Cubic Corporation subsidiary and smart card, RFID solutions and services provider is set to deliver 1 million smart cards to the Port Authority of New York and New Jersey (PATH) under a new three-year-contract. eAccess will deliver a substantial quantity of Limited Use Contactless Smart Cards, packaged with a secure RFID shield for convenient storage and retail handling. To be sold through retail kiosks at various PATH stations, the new cards meet the ANSI 410 standard adopted by the American National Standards Institute, as well as ISO/IEC 14443 compliance. ANSI 410 has accelerated the use of Limited Use cards among public transit agencies and systems integrators.

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NRF Says Need for Further Federal Action on Card Fees

The National Retail Federation is advocating the need for further federal action to control card swipe fees. Pointing to a new Federal Reserve study showing that swipe fees result in a “transfer of income” from low-income individuals to wealthy individuals and driving up prices for all consumers, with an estimated $151 of the extra amount paid by the average cash-using household goes to subsidize card-using households. The NRF is also pushing to allow merchants to charge different prices for cash and credit, disclosure of “full information” about fees, redistribution of fees to low-income individuals through tax policy, increased competition from alternative payment systems if it cannot be attained within the credit card market, and government regulation of both credit card fees and rewards.

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HSBC Appoints New VP, Card Services

Brian Hughes has been appointed Executive VP and Head of Card and Retail Services for HSBC Finance Corporation. Having been with HSBC since 2004, most recently serving as EVP, Marketing, for Card and Retail Services, he was responsible for the strategic direction and day-day-day leadership and operations of the Retail Services business and its merchant relationships. Hughes has played a key role in working effectively with the merchants on business solutions, including renegotiating many merchant and partner contracts. Prior to joining HSBC, Hughes was a Principal with Booz Allen Hamilton, where he specialized in growth strategy and marketing effectiveness.

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Visa Posts 2Q/10 Payment Volume Growth of 14%

Visa’s three months ended June 31, 2010 payments volume growth was positive was a positive 14% over the prior year at $803 billion, compared to the prior quarters’ positive 13% over the prior year at $745 billion. Total processed transactions for the three months ended June 31, 2010 totaled 11.7 billion and were a positive 14% increase over the prior year, compared to 10.6 billion the prior quarter. Meanwhile, service revenues were $873 million, compared to $885 million the prior quarter, an increase of 13% versus the prior year. Data processing revenues rose 31% over the prior year to $792 million while international transaction revenues, which are driven by cross border payments volume, grew 25% over the prior year to $574 million.

VISA-NET TRANSACTIONS
Jun 08: 9.5 billion
Sep 08: 9.6 billion
Dec 08: 9.8 billion
Mar 09: 9.4 billion
Jun 09: 10.3 billion
Sep 09: 10.5 billion
Dec 09: 10.9 billion
Mar 10: 10.6 billion
Jun 10: 11.7 billion
Note: Visa, Visa Electron, Interlink and PLUS
cards processed on Visa’s networks.
Source: CardData (www.carddata.com)

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Cintas Earns PCI DSS for Third Year Straight

Cintas Corporation secure document management services earned Payment Card Industry (PCI) Data Security Standards (DSS) compliance for the third consecutive year. All Cintas document storage and shredding locations meet the stringent and comprehensive requirements set by the PCI Security Standards Council and adhere to the information security controls and processes that ensure data integrity. Cintas provides cost-effective document shredding, storage and imaging programs. Its services are designed to provide businesses with data privacy and security, compliance with regulatory requirements and greater control and access to information.

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SmartMetric Files Second Complaint Against Visa and MasterCard

SmartMetric has filed a second Amended Complaint against Visa and MasterCard for patent infringement in United States District Court. The Company has included a full copy of the entire complaint included in an SEC Form 8-K filing. SmartMetric will be seeking a preliminary and permanent injunction against each defendant, prohibiting each of them from further infringement, an award of actual damages SmartMetric has suffered by reason of the infringement, and a royalty on each of the defendant’s infringement. SmartMetric has developed a portable biometric identity and transaction card capable of storing a wide variety of personal information.

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5.2 Billion Smart Cards Shipped in 2009

In 2009, 5.2 billion microcontroller and memory-based smart cards shipped into applications such as SIM cards, payment and banking, government ID, and transportation. The IC market for the year was valued at $1.7 billion, according to the latest metrics from ABI Research’s Smart Card Market Data. Gemalto maintained as the number one manufacturer, with an estimated 33.8% market share, while Morpho (previously Sagem Orga) gained the most market share (up 1.8%) to consolidate its fourth position. Meanwhile, with 26.3%, Infineon continued to account for the most revenue among the IC manufacturers while in unit terms, Samsung’s strong position in SIM cards saw it capture 34% of IC volumes. The ABI Research “Smart Card Market Data” forecasts show that the market is ready to grow, both in terms of card volumes and IC revenues.

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Wells Fargo Named Best Consumer Internet Bank

Wells Fargo & Company was named the Best Consumer Internet Bank and Best Corporate/Institutional Internet Bank in the U.S. In the Consumer category, again was the U.S. winner in Bill Payment and Presentment, Best Web Site Design, and Best Online Deposits Acquisition, and added Best Integrated Consumer Bank Site. On the Corporate/Institutional side, Wells Fargo earned Best Website Design and Best Information Security Initiatives. This at the 11th year Global Finance has named the World’s Best Internet Banks. Winning banks were selected based on strength of strategy for attracting and servicing online customers, success in getting clients to use web offerings, growth of online customers, breadth of product offerings, evidence of tangible benefits gained from Internet initiatives, and website design and functionality. Wells Fargo Internet Banking currently has 17.4 million active online customers.

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56% of Small Business Owners Post Revenue Up Y/Y

Small business owners are showing signs of confidence in their own businesses, with 56% having reported revenue in line or higher than last year. Meanwhile, 47% expect revenue to be higher next year while 63% say their company is financially healthy. This is despite the fact 90% of small business owners feel the economy is currently in a recession, 80% feel we will still be in a recession next year, and 75% think the economy will still be in a recession in 2011. These findings, according to results of the 2010 U.S. Bank Small Business Annual Survey, concludes 32% feel their state has better conditions for small businesses than the rest of the country; 41% would like to see their bank meet their individual needs better; 39% want their bank to know them and their business better; and 30% want their bank to deal in a more straight-forward manner.

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TheHomeCard.com Offers Cash Rewards to Home Buyers/Sellers

The “HomeCard” Company has introduced the “TheHomeCard.com Cash Rewards Program” to match home buyers, sellers and renters with local real estate agents and earn cash rewards up to $7,000 to use after they move-in. The program helps simplify the home-buying, selling and renting process by efficiently screening and pairing consumers seeking to buy, sell or rent with real estate professionals. In addition, cash rewards are awarded based on the value of a home purchased, sold or rented of as much as $7,000 on a “HomeCard” pre-paid card for use anywhere Visa or MasterCard is accepted.

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Diebold 2Q/10 Revenue Slips 4% Y/Y

Diebold posted 2Q/10 income from continuing operations of $30.4 million, compared to $24.9 million last quarter, while revenue was $665.2 million, down 4% from 2Q/09. Total revenue was down 4%, including a net positive currency impact of 3% while total gross margin was 26.8%, an increase of 2.4 percentage points from the year ago period. Operating profit was 7.0% of net sales in the second quarter 2010, an increase of 0.3 percentage points from the second quarter 2009. Included in operating profit in both periods were restructuring charges and non-routine income, as well as an impairment charge in the second quarter 2010. Excluding these items from both periods, non-GAAP operating profit margin* was 7.8% in the second quarter 2010 and 7.1% in the second quarter 2009. Income from continuing operations was $30.4 million, or 4.6% of revenue in the second quarter 2010, a decrease of 4.9%, or 0.1 percentage points from the second quarter 2009.

REVENUE
2Q/09 $700.5
3Q/09 $645.2
4Q/09 $724.9
1Q/10 $619.0
2Q/10 $665.2
Source: Carddata.com

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