Solutionary has been PCI Recertified

Information security provider Solutionary has been recertified by the Payment
Card Industry (PCI) Security Standards Council as an Approved PCI Scanning Vendor (ASV) and as a
Qualified Security Assessor Company (QSAC). A longtime
leader in the payments industry, Solutionary has been both a QSAC and an
ASV for six consecutive years. Compliance and security solutions available today from Solutionary include
ActiveGuard Managed Security Services; PCI Self-Service Tools and Security & Compliance Consulting Services.
Solutionary is an information security company that delivers a wide
range of managed security solutions and professional services to reduce
risk, increase security and ensure compliance for medium-to-large
businesses. The company’s services are based on the ActiveGuard platform and next
generation security intelligence, offering true security and compliance
management.

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Americans Slash Revolving Credit by $13B+ in Nov

Consumer credit continued its decline as Americans cut another $13 billion off in November, bringing the year-to-date total reduction to $83 billion. Posting its 15th consecutive monthly decline, U.S. consumer revolving credit remained well below $900 billion in November. Since peaking at a revised $975.2 billion in the third quarter of last year, Americans have chopped-off more than $100 billion in revolving credit to-date. According to new and revised data released by the Federal Reserve, revolving credit declined at an annual rate of 18.5% in November, following a revised 9.9% decline in October and a 10.5% drop in September. In October revolving credit declined to a revised $887.7 billion and to a revised $895.0 billion in September. March posted the largest contraction over the past nine months, dropping more than $14 billion. Bank credit card debt (excluding store and gas credit cards) at the end of the third quarter was about $710 billion or roughly 85% of total revolving credit, according to CardData (www.carddata.com). Store and gas credit cards had about $105 billion in outstandings at year-end 2008. At the end of November, Americans were $2465 billion in debt, excluding home mortgages.

REVOLVING CREDIT HISTORICAL ($billions)
Nov 09 Oct 09 Sep 09 Aug 09 Jul 09 Jun 09
GRWTH: -18.5% -9.9 -10.5 -10.6 -3.6 -6.4
$OWED: $874.0 887.7 895.0 903.0 909.0 911.7
Source: Federal Reserve; revised figures as of 1/8/10;
For complete historical data, visit CardData (www.carddata.com)

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ViVOpay 8800 and 8600 are Introduced

NFC payment technology provider ViVOtech has launched the new customer-facing “ViVOpay 8800”
and “ViVOpay 8600” payment acceptance devices.The ViVOpay 8000 product series features built-in intelligent mLoyalty
software enabling merchants to offer exciting new mobile marketing and
loyalty programs to their customers. By delivering personalized coupons
and offers to their customers’ existing mobile phone, a merchant can
drive more traffic to its stores and create up-sell opportunities while
customers are in store. As a result, customers enjoy a high-value
shopping experience with personalized and location-based services and
offers delivered directly from the merchants. Using ViVOpay 8000 products, customers can redeem mobile coupons and
promotions electronically using contactless or mag-stripe cards,
contactless sticker-attached to existing phones or NFC-enabled mobile
phones.

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Largest Retailers Increase Sales 5.5% in 2009

Despite the recession, which now seems to be waning, the world’s largest retailers were able to increase sales 5.5% in fiscal year 2008 ending June 2009 with total retail sales of nearly $3.8 trillion. Profitability at the largest 250 retailers in the world, however, fell from 3.7 percent in fiscal 2007 to 2.4 percent in 2008 and two-thirds of retailers disclosed their bottom-line results saw their net profit margin decline in 2008. These findings, according to Deloitte Touche Tohmatsu and STORES Media’s latest report, “2010 Global Powers of Retailing,” also shows retailers in Europe saw their profitability fall from 4.1% in 2007 to 2.7% in 2008 while those in North America fell from 3.6% to 2.4%; hardlines and leisure goods retailers saw their profit margin fall to 3.1% from 6.8%; fashion retailers fell into negative territory and profits were cut in half to 4.1%; and food retailers saw profits fall from 3% to 2.2%.

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VeriFone MX 870 Meets PCI PTS 2.1

The “VeriFone MX 870” multi-media payment system has achieved certification for PCI PIN
Transaction Security (PTS) 2.1 requirements. In addition to secure payment processing, the “VeriFone MX 800” Series
devices offer unrivaled power and flexibility and can be set up for
virtually any interactive customer transaction. MX 800 devices can be
integrated with electronic cash registers and for use such as price
checkers, credit authorization, multimedia presentations and more.
MX 800 devices operate on one software platform, providing easy
integration and a single point of control, making it simple to create
and customize customer touchpoints with multiple uses. Along with a
common user interface, devices are modular, easily upgradeable, and
interchangeable to give retailers maximum flexibility for multiple uses
anywhere in the store. In meeting the latest PIN entry device security requirements set for
newly introduced products by the PCI Security Standards Council (PCI
SSC), the MX 870 is in compliance for sales through 2017. Systems
certified to PCI PTS 1.3 may be sold through 2014.

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Ingenico Beefs-Up PCI Assistance

Payment solution provide Ingenico has rolled out a PCI-DSS compliant
payment transaction process strategy. The strategy addresses the entire
payment transaction process including: “data in flight”, an advanced
technology enhancement at the point of card acceptance encrypts data in
flight and is offered with no per terminal or per transaction fees;
“data at rest”, in which card and transaction-based tokenization
provides unique data proxy to the point of sale eliminating the storage
of sensitive card data and reducing the PCI footprint for merchants.
Ingenico’s unique international PCI-DSS payment
infrastructure offers security monitoring, estate management, and value
added services to merchants and supports POS deployment from
manufacturing to merchant operational environment. Ingenico’s “On-Guard
Card Acceptance” encryption technology
will be embedded within the entire line of new Ingenico payment devices
deployed in North America as standard security functionality to provide
secure data capture and transmission at the point of card acceptance.
The company will offer this standard technology to all merchants without
charging transaction fees.

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Credit Card Penalty Fees Hit a New Record in 09

U.S. credit card issuers produced $166.5 billion in total pre-tax income last year, a 1.5% decrease over 2008. Interest income of $87.6 billion was down 13.2% as fee income of $78.9 billion rose 16.7%, compared to the prior year. Penalty fee income is expected to hit $22.9 billion, while the largest category of fee income, interchange income, should come in around $41 billion. According to R.K. Hammer, other fee income for 2009 will include cash advance fee income of $8 billion, annual fees income of $6 billion, and fee income from enhancements of $1 billion. Approximately 85% of this $22.9 billion in total penalty fees in the Hammer model is for late fees (the remaining 15% is for over limit fees, NSF fees, currency conversion, etc.). As in prior years, this figure again does not include higher APR’s charged to cardholders who go delinquent (thus incurring “penalty pricing” to be imposed), as this greater interest rate would appear in an “Interest Income” category, not fee income. As any industry has to do with rising costs, credit card issuers must charge higher fees to offset for accounts with increasingly higher risk. For example, typically 50% of all credit card loan losses are attributable to delinquency in the Hammer model, rotating through the consecutive monthly various billing cycles to charge off, typically at 4-5 cycles, 120-150 days past due. And charge-offs last year were $89.2 billion (9.8% of outstanding loans), up sharply from $55.9 Billion in 2008. R.K. Hammer is a global credit card consultancy, specializing in card portfolio sales and valuation.

PENALTY FEES HISTORICAL
2003: $11.7 billion
2004: $14.8 billion
2005: $16.4 billion
2006: $17.1 billion
2007: $18.1 billion
2008: $19.0 billion
2009: $22.9 billion
Source: R.K. Hammer

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INGENICO iSC350

Ingenico secure payment solutions has introduced its “Ingenico iSC350”
versatile multimedia payment terminal at the 99th Annual National Retail
Federation’s (NRF) Big Show. The “iSC350” features full motion video
over a crisp VGA monitor complete with stereo sound for up-selling,
cross-selling and strengthening brand loyalty. Built on Ingenico’s
“Telium 2” platform for fast transaction speed on a 400 MHz processor,
the terminal offers a variety of payment choices, including contactless
payment and signature capture, and has a top faceplate which can be
customized with a retailer-unique color. It is also designed to be PCI
PED 2.1 compliant; provides secure “On-Guard Card Swipe” encryption
technology; has a memory upgrade to 32 GB using uSD slot; offers 10%
faster software downloading; and an enterprise document management system.

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Visa payWave, Coca Cola and Vancouver Come Together

In conjunction with the “Vancouver 2010 Olympic and Paralympic Winter Games,” Visa announced it will be equipping 550 Coca-Cola vending machines with its “payWave” contactless payment terminals in Canada, most of which will be located in official Olympic venues. According to CardFlash International, these venues include the Olympic and Paralympic Villages in Whistler and Vancouver and two Vancouver training centers. This solution allows customers to “wave and go” when buying a Coca-Cola product from the vending machines, which is closely aligned with Visa Canada’s migration to chip card technology. Both the Visa “payWave” card and the Visa “payWave” terminal have built-in security measures.

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ACI Releases its Retail Systems Research Report

ACI Worldwide electronic payments software and solutions has released
its “Retail Systems Research” report examining the future of retail
payments, highlighting the need for retailers to review and upgrade
their payment systems. The report suggests retailers are not doing
enough to keep pace with consumers’ willing and swift adoption of
technology while 69% of retailers indicated maintaining or improving the
customer experience is the main driver of their in-store technology
investments. In response, the ACI “Retail Commerce Server” offers
retailers a solution to create and execute a payment acceptance strategy
and is available on multiple operating and hardware platforms. The
server provides payment acceptance authorization, switching, rewards and
loyalty management, gift and stored value card management and enhanced
loss prevention with refund and check authorization tools.

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GIANTSTONE & LONGTOP

Longtop Financial Technologies software developer has signed agreements
to acquire for cash 100% of Giantstone Information & Technology, a core
banking solution provider in China. Expected to close prior to March 31,
earnings from the acquisition will be accretive for the fiscal year
ended March 31, 2011. Giantstone primarily provides implementation,
customization, consulting as well as maintenance services to national
joint stock commercial banks to replace its existing core banking
systems with a global software company’s core banking system and various
applications being developed by domestic vendors. Giantstone also has
its own proprietary core banking product that in future will be targeted
at smaller banks in China. Giantstone has over 300 employees.

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Invenstar Launches Updated TouchSuite POS

Financial technology solution provider Invenstar has released an updated version of the TouchSuite POS system for salons.
“TouchSuite Pro” is designed to be an all-inclusive POS system for managing retail. The software and
hardware feature a simple touch screen, simple cash register ring up,
product scanning, split payments, gift cards, client/vendor management,
multi-operator merchant accounts, superior inventory tracking and
receiving management, SKU generation and barcode labeling technology all
built in and TouchSuite Pro’s retail management software
and hardware come pre-loaded and ready for data import. Invenstar’s partnership with
American Bancard, enables the company to offer low-cost,
high-value financial solutions to small and medium business retail
markets with “TouchSuite Point of Sale” and “QuickBancard” credit card
processing solutions.

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