Restaurant Data Concepts Facing Lawsuits

RI-based POS technology provider Restaurant Data Concepts and NJ-based CC Productions are the target of pending legal action
for possible PCI DSS breaches of its POSitouch technology, installed in more than 20,000
restaurants nationwide. According to the attorneys preparing the lawsuit,the companies allegedly sold and installed POS
systems that contributed to identity thefts at multiple restaurant
locations. At the core of the allegations in the developing lawsuit:
1) POSitouch’s POS system failure: A forensic
audit reveal that POSitouch sold a system that was non-compliant with
PCI-DSS. 2) CC Productions’ mismanagement: The reseller engaged in
flagrant violations of PCI standards that gave rise to the security
breaches. When companies such as CC Productions engage in the support
and management of a merchants’ POS application system they need to
ensure that they are not engaging in suspect actions that open up the
ports so that hackers may penetrate the entire system through malware.
While the exact amount of the identify theft losses to banks, the
financial losses to the restaurants, fines, investigatory costs, fines
imposed by the credit card companies and other costs attributed to
fixing the computer systems’ security breaches are still being tallied,
the lawsuit is seeking compensation to repay the penalties levied by the
credit card companies and the massive costs to track down and repair the
POS system problems. According to the attorneys, damages “could run well
into seven figures.”

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NCR Rolls Out BLOCKBUSTER Express DVD-Rental Kiosks

NCR Corporation has introduced BLOCKBUSTER Express-branded DVD-rental kiosks at 105 Tom Thumb and Randalls stores in Dallas,
Houston, and Austin. NCR announced plans to replace existing DVDPlay-branded kiosks with
BLOCKBUSTER Express units when it acquired DVDPlay in December 2009. As
a result, former DVDPlay customers now have the benefit of the largest
selection of DVDs in the industry. With capacity for more than 950 DVDs,
NCR’s kiosks hold more than twice the typical number of DVDs held by
competing kiosks. In addition, customers now will be able to return DVDs
two hours later at 9 p.m., as well as rent DVDs online at
blockbusterexpress.com. Consumers can conveniently return DVDs to any BLOCKBUSTER Express kiosk,
not just where they rented the DVD. No membership is required to rent
a DVD at a BLOCKBUSTER Express kiosk – customers simply swipe their
credit card and are charged $1 per night until they return the DVD.

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PHYWORKS

Mixed signal IC provider Phyworks has announced shipment of its 30 millionth chip and predicts revenue growth in 2010 of 90%. The company cites revenue increases in core PON (passive optical network), mobile backhaul and equalizer markets as key contributing factors to its on-going success.
Phyworks is a privately held company headquartered in Bristol, UK and established a dedicated office in Santa Clara, USA in 2009. Phyworks was named as the UK’s 5th fastest growing private technology company and #1 fastest growing semiconductor company in the Sunday Times’ TechTrack 100 Awards for 2009.

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VeriFone Reports 1Q/10 16% Revenue Increase

VeriFone posted a 16% increase in 1Q/10 revenues to $240.7 million, compared to 1Q/09 revenues of $201.6 million. Meanwhile, the POS terminal manufacturer posted Non-GAAP gross margins of 39.2%, compared to 39.2% in the prior quarter and 33.8% in 1Q/09 and GAAP net income per diluted share of $0.23, compared to $0.12 per diluted share in the prior quarter and $0.13 per diluted share in 1Q/09. During the quarter, VeriFone announced the acquisition of the assets of Orange Logic, a South Korean payment systems provider, gaining the people and infrastructure needed to introduce its secure electronic payment product line into the Republic of Korea. VeriFone also launched its “VX Evolution” to offer reliability and extended product lives, leveraging technologies widely-used in the cell-phone industry and meeting PCI PED 2.0 standards. For complete details on VeriFone’s latest performance visit CardData (www.carddata.com).

REVENUE HISTORICAL
1Q/07: $217.2 million
2Q/07: $231.7 million
3Q/07: $237.9 million
4Q/07: $185.5 million
1Q/08: $233.0 million
2Q/08: $258.7 million
3Q/08: $244.7 million
4Q/08: $214.0 million
1Q/09: $201.6 million
2Q/09: $211.2 million
3Q/09: $217.8 million
4Q/09: $223.4 million
1Q/10: $240.7 million
Source: CardData (www.carddata.com)

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BANKING REPORT

Research and Markets has announced the addition of the “Kazakhstan Commercial Banking Report Q2 2010” report to their offering. Kazakhstan Commercial Banking Report provides industry professionals and strategists, corporate analysts, banking associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Kazakhstan’s commercial banking industry.
The report profiles BTA Bank, Kazkommertsbank, Halyk Bank of Kazakhstan, Alliance Bank,HSBC Kazakhstan,KZI Bank
and KazInvestBank.

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GCA to Present at the Cowen and Company Annual Conference

NV-based casino cash supplier Global Cash Access Holdings announced that Scott Betts, president and chief
executive officer, will present at the Cowen and Company 38th Annual
Technology Media& Telecom Conference on Wednesday, June 2, 2010 at the
Palace Hotel in New York City. The presentation will begin at 3:25pm EDT.
Global Cash Access is a leading provider of cash access products
and related services to over 1,100 casinos and other gaming properties
in the United States, Europe, Canada, the Caribbean, Central America and
Asia.

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Cardlytics Appoints Senior VP, Business Development

Jason Brooks has joined Cardlytics transaction marketing as senior vice president of business development. Bringing with him a wealth of experience, Brooks served as VP, product development with Meta Payment Systems (MetaBank), after having founded ECM Financial Services paycards in 2002. Brooks also served as InComm’s vice president of financial services, overseeing the U.S. and international launch of various gift card products and retail money remittance solutions. Cardlytics unites banks and merchants to provide rewards to customers based on their individual purchase behavior.

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UMB Acquires Credit Card Portfolio from 5Star Bank

Kansas City-based UMB Bank has acquired CO-based5Star Bank’s credit card portfolio.
5Star Bank is a provider of banking services for Armed Forces Benefit
Association (AFBA) a 63-year-old organization of members of the
uniformed services of the United States. The agreement
included $66 million in assets and 63 agent bank credit
card relationships. Terms of the deal will not be disclosed.
UMB Financial Corporation owns and operate 135 banking centers throughout
Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona.
5Star Bank is a $192 million asset organization.

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Experian Looking For New freecreditscore.com Band

Experian is conducting a nationwide search for a new
“freecreditscore.com” band to represent the brand, giving talent from
anywhere in the country a chance to enter.
Freecreditscore.com kicked off the talent search with MTV News reporting
on sessions in New York, Chicago and Los Angeles before letting bands
across America submit their video entries online.
The four finalist bands will receive national media exposure in
commercials on the FOX broadcast of the Major League Baseball All-Star
Game, as well as a prize package from musical instrument leader Gibson
Guitar. Later this year, freecreditscore.com plans to further emphasize fiscal
responsibility through new creative that will air across MTV in support
of mtvU’s ongoing public affairs campaign on the subject.
The Martin Agency, a full-service advertising agency based in Richmond,
Va., will produce the series of television advertisements that say
goodbye to the old band while announcing the nationwide search for new
musical talent.

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Visa and Bancomer Transfer Services Launch Visa Money Remittances

Visa and Bancomer Transfer Services have launched a money transfer service that will provide an additional alternative for consumers that send money from the United States to friends and family living abroad. Consumers will be able to initiate a Visa money transfer transaction at any BTS location in the United States. The Visa money transfer transaction can reach any eligible Visa account in the world, including all key remittance destination countries, including El Salvador, Brazil, China and The Philippines, with plans to extend the program to allow remittances from BTS locations to any country within the Visa network. The Latin America corridor is one of the largest money transfer markets in the world, with a total of USD $58.8 billion transferred in 2009. In 2009, BTS alone accounted for USD $10 billion in consumer funds transferred to Latin America, making BTS one of the largest processor of remittances for this region. Other large remittances markets served by BTS from the U.S. include Asia, Europe and Africa.

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CITIBANK CARDS

Citibank Bhd says it expects to get about 100,000 new credit card customers over the next three years.
With credit card penetration coming to 60% of addressable population and expenditure through credit cards amounting to
20% of private consumption, there is opportunity for issuers to grow their market share.
The card covers a wide range of everyday items made available in the market today, and gives
instant cash back of up to 5% on popular categories such as petrol, groceries, phone bills and pharmaceutical purchases throughout the year.

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Federal Reserve Launches Online Database for Credit Card Agreements

The Federal Reserve Board has launched a database that contains consumer
credit card agreements from more than 300 credit card issuers.
The agreements contain general credit terms and conditions along with
pricing and fee information. The database will help consumers compare
credit card agreements and find a card that best suits their personal
finance needs. However, not all consumer credit card agreements are
available in the database. For example, the Board’s recent credit card
rules exempted issuers with fewer than 10,000 open credit card accounts
from submission because the overwhelming majority of credit card
accounts are held by issuers that have more than 10,000 open accounts.
The database (www.federalreserve.gov/creditcardagreements
) will be updated
quarterly; the next submission deadline is August 2, 2010.

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