VISA LAC Q2

Total volume on all Visa-branded products in Latin America and the Caribbean Region (LAC) grew 19% to US$581 billion, on a constant USD basis, for the year ending on June 30th. The number of payment transactions hit nearly 5.2 billion while cash transactions topped 3.2 billion. For the second quarter, Visa LAC reported a 15% growth in total volume versus the same quarter last year, for a total of US$150 billion. Recent Visa announcements in the region include the introduction of NFC payment technology in Brazil, and the launch of Financial Football in Brazil and Mexico, an innovative corporate social responsibility program that leverages the use of video games for educational purposes. At mid-year Visa had 344 million cards in the LAC region. For complete details on all Visa regions for the second quarter visit CardData (www.carddata.com).

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TransCard Inks University National Bank

Prepaid card solution provider TransCard has partnered with MN-based
University National Bank for a card program sponsorship
agreement. The two companies will work together on prepaid programs and
extend prepaid products and mobile bank accounts to those individuals
who are normally beyond the reach of conventional financial institutions.
University National Bank focuses on financial services in the urban
core, including specific initiatives targeted to the unbanked and
underbanked. The bank?s mobile banking platform, provided by mobe- inc.,
allows the bank to bring a large suite of financial services to a
largely underserved market segment. The bank offers a Socially
Responsible Deposit Fund (SRDF), which puts money to work in low- and
moderate-income communities through the bank?s provision of loans to
support small businesses, affordable housing development and non-profit
organizations in these communities. University National Bank?s mission
to be ?The Leader in Improving Our Urban Community? dovetails with
TransCard?s corporate values.

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Heartland Payment Systems’ Q3 Revenue Edges Up 4%

Heartland Payment Systems reported third quarter revenue was up 4.2% to
$442.6 million. Net revenue from Small and Mid-Sized Merchant (SME) card
processing and Network Services were both up in the third quarter. SME
transaction processing volume of $15.8 billion, was up 1.1% from a year
ago. However, due to a decrease in revenues from equipment-related
businesses, net revenues of $110.0 million for the quarter was down
marginally. Network Services transactions processed totaled 757 million
in the quarter compared to 771 million in the same quarter of 2008. Same
store sales in the SME segment were down 8.6% in the quarter, but HPY
says performance in September was the best in nearly a year. Overall,
the processor had a GAAP net loss of $13.6 million. About $36 million
(pre-tax) in expenses was attributable to the prior processing system
intrusion, including charges related to settlement offers made by the
Company. For the full year 2009, HPY expects net revenue (total revenues
less interchange, dues and assessments) to grow in the area of 10%, to
between $420 and $425 million. For complete details on Heartland’s third
quarter performance visit CardData (www.carddata.com).

HEARTLAND PAYMENT SYSTEMS REVENUES
3Q/08: $425 million
4Q/08: $386 million
1Q/09: $372 million
2Q/09: $417 million
3Q/09: $443 million
Source: CardData (http://www.carddata.com)

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VERIFYSMART JV

VerifySmart secure credit/debit card payment processing has signed an
MOU with Mr. Theodore ‘Teddy’ Permadi Rachmat of Indonesia outlining
terms of an Agreement to form a Joint Venture Company. The JV will
introduce a proprietary suite of fraud prevention and detection
technologies for institutions across Southeast Asia, Asia and the Middle
East. Tapping the breakneck speed at which Southeast Asia’s
technological and economic environments develop, and the financial
community’s inability to harness or eliminate crippling credit/debit
card and online transaction fraud loss, VerifySmart reduced credit/debit
card fraud loss numbers to zero in initial testing. Rachmat founded the
Southeast Asian conglomerate Triputra Group to generate revenues in
excess of $3b annually.

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Most Consumers Support New Under 21 Rules

Credit card comparison site CardRatings.com revealed the results of a poll that indicates
70% of respondents believe the new law restricting credit for consumers under the age of 21
is fair. The law restricting credit to consumers under the age of 21 is a
stipulation of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of
2009, which was designed primarily to protect Americans from unfair rate hikes and
notorious credit card fine print. Arnold believes the law may have gone
too far to protect students and young adults, and failed to go far enough in
educating credit card consumers. CardRatings.com has been educating consumers about credit cards since
1998.

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First Data and VeriFone to Partner

First Data payments processing and VeriFone Holdings secure payment
solutions have signed a strategic partnership to promote and enhance
secure payment solutions. This designates First Data the preferred
distributor and reseller of VeriFone secure countertop payment solutions
in the United States through its TASQ Technology subsidiary. TASQ
delivers value-added repair, maintenance and deployment services for
payment devices to merchants of all sizes. VeriFone will design, build
and manufacture new, high-volume co-branded countertop payment systems
that will expand the First Data award-winning line of payment solutions
in non-US reseller and distribution relationships, EMV countertop
solutions and Class A certification of other VeriFone devices.

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Oberthur Unveils the First USA EMV Payment Cards

The first EMV payment card solution for the U.S. market is now
available, offering banks the capability to issue cards with both EMV
and a magstripe to use domestically and abroad. The new “EMV-in-Box”
from Oberthur Technologies enables EMV cards to be issued within 12
weeks from project initiation. Initially, EMV will allow travelers from
the U.S. to make purchases internationally where magstripe cards are
often not accepted (71% of the POS terminals and 88% of ATMs are
EMV-compliant in Western Europe). The U.S. is quickly becoming the
weakest link in international credit card fraud because EMV adoption
lags so far behind the rest of the world. Fraud involving credit and
debit cards here reached $22 billion in 2008, an increase of 16% vs.
2007, and could increase even more as fraudsters target the U.S. more
frequently until EMV becomes prevalent. “EMV-in-a-Box” is a fully
integrated EMV migration solution and management program, is based on
best practices gained by Oberthur Technologies’ work on more than 200
EMV projects worldwide. The program includes on-site consultation, EMV
training, project management and technical support. Oberthur has issued
over 500 million EMV cards globally.

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FOREX & MONEYGRAM

MoneyGram International global money transfer has extended its
long-standing agreement with FOREX Bank foreign exchange bureau. FOREX
Bank has partnered with MoneyGram International since 2004 to provide
International money transfers across 100 locations in Sweden, Denmark,
Finland and Norway. The agreement extension illustrates the opportunity
presented by money transfers in the Nordic Region, mostly seen in light
of the volume of money sent overseas from Sweden and Norway by growing
migrant populations. Data show Nordics represent an estimated 3 million
immigrants currently residing and working across the region. MoneyGram
International has a global network comprised of 180,000 agent locations
in 190 countries and territories while FOREX Bank provides services at
over 100 locations in Sweden, Finland, Denmark, Norway and the UK.

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Diebold Names a New CFO

Diebold has named Bradley C. Richardson, previously CFO of Modine Manufacturing, as executive
vice president and CFO. Richardson has held the CFO position at
Modine since 2003. Richardson has broad experience in all elements of global finance,
including tax, treasury, financial control, pension management, and corporate development.
Prior to joining Modine, Richardson spent more than 20 years with BP
Amoco in a variety of senior financial and international operational posts. These
included vice president, performance management planning and control for BP
Amoco’s Upstream business segment, based in London; president of BP Amoco’s Caracas,
Venezuela operation; and chief financial officer of the Amoco Energy Group, North
America. Richardson holds a bachelor’s degree in economics and finance from Miami
University (Ohio), an MBA in accounting and finance from Indiana University, and a CPA
certificate in Illinois.

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MasterCard Q3 Revenue Up 2% as Global GDV is Flat

MasterCard posted a 2% increase in third quarter net revenue of $1.36
billion. Net income of $452 million compares to a net loss of $193.6
million for 3Q/08 due to $827.7 million in litigation settlements.
MasterCard’s gross dollar volume was relatively flat, up 0.3% on a local
currency basis, versus 3Q/08, to $633 billion. Worldwide purchase volume
for Q3 was also relatively flat, up 0.4% on a local currency basis,
versus the year ago quarter, to $480 billion. Global transactions were
flat at 8.2 billion. At the end of the quarter there were 964 million
MasterCard cards, about the same as last year. In the U.S. credit card
GDV was down 18% to $133 billion while debit card GDV rose 7.25 to $114
billion. Purchase dollar volume for credit cards declined 13.9% to $121
billion as debit card PDV rose 6.9% to $83 billion year-on-year. Credit
card accounts declined from 219 million for 3Q/08 to 177 million for
3Q/09. Debit card accounts rose slightly from 115 million to 118
million. For complete details on MasterCard’s latest performance visit
CardData (www.carddata.com).

MASTERCARD TRANSACTIONS (millions)
(purchases + cash)
TRANSACTIONS GROWTH
Sep 30, 2009 8,228 0.7%
Jun 30, 2009 7,985 0.7%
Mar 31, 2009 6,475 0.3%
Dec 31, 2008 7,768 6%
Sep 30, 2008 7,638 12%
Jun 30, 2008 7,462 12%
Mar 31, 2008 6,972 13%
Dec 31, 2007 7,306 14%
Sep 30, 2007 6,842 13%

Note: All MasterCard Credit, Charge and Debit Programs processed on
MasterCard’s networks. Source: CardData (www.carddata.com)

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Asset Acceptance Q3 Collections Down 14%

MI-based debt collector Asset Acceptance reported revenues of $47.7 million in the third quarter, compared to $58.4 million for 3Q/08.
The net loss for the quarter was $1.6 million,compared to net income of $3.0 million for the year ago quarter. Cash collections of $77.8 million in the third quarter were also down compared cash collections of $90.8 million in the year-ago period. The Company says the macro economic situation is still impacting collections but it is making investments to raise efficiency. During the quarter, the Company acquired $37.2 million (net of buybacks) in charged-off consumer receivable portfolios, with an aggregate value of $1.6 billion, or 2.32% of face value. This compares to the prior-year third quarter, when the Company invested $35.6 million to purchase consumer debt portfolios with a face value of $718.8 million, representing a blended rate of 4.95% of face value. AACC increased its purchasing by roughly 80% during the third quarter versus the second quarter of 2009. For complete details on AACC’s third quarter results visit CardData (www.carddata.com).

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U.S. Business Bankruptcies Soar 44% in 3Q/09

Commercial bankruptcies jumped 44% in the third quarter versus the
quarter one-year ago. In September there were 9361 bankruptcy filings, a
27% increase. According to Equifax, California remains the most
negatively affected state with eight MSA’s among the 15 areas with the
most commercial bankruptcy filings during September. It appears
the East Coast may be experiencing an earlier recovery from the
recession than the West Coast. There was a 69% drop and 49% decline in
bankruptcies in Charlotte and New York-White Plains respectively, and a
44% drop in Atlanta between the second and third quarters. Equally
consistent with this east/west difference over the same period, the
11th, 12th and 13th MSAs with the greatest number of bankruptcies at the
end of the second quarter of 2009 — Santa Ana-Anaheim, Denver and San
Diego — increased in rank to 5th, 4th, and 6th by the end of the third
quarter.

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