FIRST DATA & TIO

E-commerce provider First Data will integrate bill payment processing services
from payment processor TIO Networks
with First Data’s Money Network electronic payroll distribution service.
First Data’s Money Network electronic payroll distribution service
enables employers to reduce payroll costs while providing a secure,
flexible spending card solution to their underbanked employees, which
cardholders can use to make purchases at millions of debit acceptance
locations. Money Network cardholders
will be able to pay bills online, by phone, and in some cases at
self-service kiosks, thereby reducing the time and cost of paying bills.

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FICO Shows Consumers Letting go of Credit

FICO “Score Trends” research demonstrates repayment behavior across the financial services industry has shifted in 2008-2009, with bankcard accounts 1.6 times more likely to become 90 days delinquent than were mortgage loans. In 2005, however, bankcard accounts were more than three times more likely to become 90 days delinquent. And for borrowers scoring high on the FICO® score’s 300-850 score range, the level of repayment risk actually has become greater for real estate loans than for bankcards. In 2009, 0.3 percent of consumers with FICO scores between 760-789 defaulted on real estate loans, compared to 0.1 percent who defaulted on bankcards. This demonstrates mortgage default risk for consumers with high FICO scores now exceeds their credit card default risk, even though most credit cards are unsecured credit and mortgages are secured by real estate.

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nuBridges Launches Token Manager DSS

nuBridges has released
a new version of its “Protect Token Manager”, its Format Preserving
Tokenization solution for data security. Technological advancements in “nuBridges Protect Token Manager Release
1.3” include:granular control over the encryption key lifecycle and consistency with
the evolving OASIS® Key Management Interoperability Protocol (KMIP)
standards; pre-configured templates for even easier protection for international
PII such as UK National Insurance Numbers and Canadian Social Insurance
Numbers and enhanced surveillance of client, user and administrative activities
LDAP integration support. This allows for ease of enterprise-wide, role-based
administration and web-services governance.
nuBridges solutions and support have established a new standard of quality for the
industry, and are trusted by the world’s most demanding organizations to
exchange and protect billions of payment card transactions.

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Visa Offering Grants Cardholders Exclusive Hotel Benefits

Visa has introduced its “Signature Luxury Hotel Collection” (VSLHC) travel offering, allowing Signature cardholders to find, book and enjoy benefits at select properties throughout the world. The VSLHC offers cardholders access to the best available rate, room upgrades, VIP guest status, complimentary valet parking or internet access, a food and beverage voucher, complimentary continental breakfast and late checkout privileges. All perks offered by Visa Signature Luxury Hotel Collection ranked among the top ten important travel benefits in a 2009 survey of Visa Signature cardholders, most important being Complimentary room upgrades and free internet access, respectively. For a limited time, Visa Signature cardholders who make a Visa Signature Luxury Hotel Collection booking and complete their stay will automatically receive a limited edition copy of Overnight Sensations – The Americas, profiling select destinations with detail-rich photography and narratives designed to inspire travelers’ imaginations.

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Global Cash Access Reports 4Q and Annual 2009 Results

Global Cash Access reported a revenue decrease of 15.6% to $148.8 million for its 4Q/09, a decrease of 15.6% over the $176.3 million recorded in the year ago period. Additionally, operating income and cash earnings per share from continuing operations were down 13% and 11%, respectively. Meanwhile, for its 2009 year ended December 31, 2009, revenues were $667.7 million, a decrease of 0.6% from the $671.6 million in revenues recorded in fiscal year 2008 while GAAP EPS and Cash EPS grew on a year over year basis by 25% and 7.6%, respectively. Revenues were adversely impacted throughout the year and quarter by the continued weakness in the gaming sector and consumer revolving credit. For complete details on GCA’s latest results visit CardData (www.carddata.com). (CF Library 8/25/09; 10/13/09; 11/05/09; 5/07/09)

GCA REVENUE HISTORICAL
1Q/08: $143.5 million
2Q/08: $151.5 million
3Q/08: $185.1 million
4Q/08: $176.3 million
1Q/09: $181.7 million
2Q/09: $173.0 million
3Q/09: $164.3 million
4Q/09: $148.8 million
Source: CardData (www.carddata.com)

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Hyatt, Chase and Visa Form Strategic Alliance

Hyatt and Chase announced a multi-year, strategic alliance that will create the first-ever Visa-branded credit card that allows consumers to earn points through the Hyatt “Gold Passport” global loyalty program. Hyatt “Gold Passport” global loyalty program delivers a superior level of service, recognition, and customer experience to its most loyal guests. IL-based Hyatt Hotels Corporation has a worldwide portfolio consisting of 424 properties. JPMorgan Chase has approximately 145 million credit cards in the United States and Canada and is a leader in investment banking, financial services for consumers, small business and commercial banking.

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Adility&InComm to Distribute Gifts Cards Through 5mm

Adility, a company that provides local businesses with an online platform to manage and distribute gift cards, prepaid cards, discounts and coupons, and InComm, prepaid products sales and marketing and transaction processor, have made available network access to local businesses. The InComm distribution network of over 150,000 retail locations through Adility’s proprietary platform and sell their gift cards to consumers who shop local at major retailers. The business owner creates a free account at www.adility.com, defines the prepaid or gift cards offer and chooses retailers and retail store locations in near proximity to his business location. Adility handles printing the cards, placing the gift cards in local retail stores, and coordinating the approval process with each retailer.

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TEKchand and Euronet USA Partner for ATM Marketing

Euronet USA has entered agreements to promote and resell IL-based TEKchand’s ATM marketing and remote device
management solutions in conjunction with Euronet’s “Integrated
Transaction Management” payment solution. TEKchand offers a comprehensive application suite for ATM marketing and
remote device management. Its “ATMLive Manager” platform enables financial
institutions to manage ATM screen content, targeted marketing and
multiple cost-saving remote management functions for the ATM channel.
“ATMContentPro”, TEKchand’s appliance-based delivery model, is a complete
end-to-end solution that combines all mission critical elements into a
single appliance package. TEKchand is a supplier of marketing and management
software applications designed specifically for the ATM channel
Euronet offers payment and transaction processing solutions to financial institutions, retailers,
service providers and individual consumers which include comprehensive
ATM, POS and card outsourcing services; card issuing and merchant
acquiring services; consumer money transfer and bill payment services;
and electronic distribution for prepaid mobile airtime and other prepaid
products.

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GLOBUS & VERSAPAY

Card transaction processor VersaPay Corporation has signed a three-year, exclusive agreement
with Globus, a provider of touring travel and vacation packages.
Under the terms of the agreement, VersaPay will provide Globus with a
credit and debit card payment processing solution, taking advantage of
VersaPay’s PCI compliant (meets all Payment Card Industry data security
requirements) e-commerce gateway. VersaPay will generate revenue based
on a percentage value of each transaction that Globus processes through
its payment system.

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MONEXAS

Research and Markets has added the “Monexas Cloud-Based Billing Includes Flexible Channel Support” report to their offering. Vancouver, Canada-based Monexas targets small businesses with its billing solution, providing cloud-based, billing and payments offering for online services, for SaaS and cloud computing companies and for more traditional businesses that are moving to electronic billing. Monexas billing-and-payments solution is PCI DSS compliant and highly scalable, featuring an integrated product catalog and a rating engine that supports virtually all kinds of recurring service-billing models.

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DOD

Card manufacturer Oberthur Technologies is now offering Drop-on-Demand
(DoD) printing to provide more options for customers looking for a
single vendor to provide card design, manufacturing, personalization,
fulfillment and inventory management. The new high speed, UV-curable
ink jet printer for card personalization allows Oberthur Technologies to
target prepaid and non-secure customers. The increased printing
capabilities provide additional printing and design options, allowing
the company to meet new demands as they arise. Oberthur Technologies’
single source solution include Smart Design, which provides skilled card
designers to create a full range of creative design ideas for cards
while utilizing Smart Plastics, Oberthur’s comprehensive range of
innovative card bodies, finishes and inks. Additionally, Oberthur
Technologies provides a state-of-the-art, ISO 9001 and 14001-certified
manufacturing facility in Exton, PA., and a service center for card
personalization in Chantilly, VA that produces ultra-secure j-hook
packaging, including Oberthur’s patent-pending Smart Seal.

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Fitch Ratings Sees Credit Card ABS Changes Unlikely

According to a recent report by Fitch Ratings, U.S.credit card ABS
trusts will weather the changes brought about by the enactment of the
CARD Act on February 22. However, Fitch says credit card companies
are set to face more acute pressures. Many issuers proactively altered
their business models and implemented
portfolio-wide pricing changes over the last 12-18 months. In light of
the changes, consumers can expect improved disclosure, a more
favorable payment allocation, elimination of double cycle billing, and
more predictable due dates. Also expected is gross yield to decrease
by 100-200 basis points (bps) over the coming months. Gross yield is
comprised of interest, fee, and interchange income expressed as a
percentage of principal receivables. Although it will be more difficult
to change APRs going forward, the pricing on many accounts has already
been increased in anticipation of these changes and many
accounts with fixed APRs have been converted to
variable APRs indexed to Prime Rate and will trend higher as prevailing
interest rates rise.

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