AARP’s LifeTuner Focuses on Young Adults

AARP’s LifeTuner initiative has released the results of a survey “Personal Finances: The Final Frontier of
Social Media,” is based on a national survey of 1,002 young adults aged 18-34 that suggests a general reluctance to discuss money with friends and family could have a negative impact on their
financial futures. The report revealed 57% of young Americans consider their financial situation to be
the biggest concern in their lives; 66% rate their own financial situation as fair to poor, and
43% expressed concerns about their ability to make sound financial decisions; 78% have debt of some
kind with 36% reporting credit card debt, considered “bad debt” by most financial experts as by far the
most prevalent form; 68% of respondents admit that finances have caused stress in a
relationship or friendship. While social media sites have
lowered or eradicated the social boundaries around certain topics, finances remain
a taboo subject. People are more likely to discuss relationship status
(61%), politics (43%), their health (23%), and their weight (20%) than their
financial situation. However, among those young adults who have sought advice online, 85%
report being more confident about their ability to manage their finances.

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Xmas eCommerce Spending Projected to Rise 24%

According to the “eBillme Online Spending Index” eCommerce retailers can expect a surge in
consumer spending during Q4 2009 on average of $281 online, a 24% increase over last quarter.
However, while this represents the first increase in spending since last year, it is an 18% decrease in
the overall spending rate as compared to Q4 2008. Consumers were also surveyed about projected holiday spending this year.
Eleven percent of respondents plan to do most of their holiday shopping
on Cyber Monday, while 48 percent plan to avoid Black Friday shopping in
favor of shopping online. And when it comes to how much consumers plan
to spend this holiday season, 27 percent anticipate that they will spend
more online this year for holiday gifts as compared to last year.
The survey is conducted by Javelin Strategy & Research and released quarterly by eBillme.

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Confidence Index Resumes a Downward Trend

The Conference Board Consumer Confidence Index now
stands at 47.7 (1985=100), down from 53.4 in September.
“The Present Situation Index” decreased to 20.7 from 23.0 last month along with “The Expectations Index” declined
to 65.7 from 73.7. Consumers’ assessment of current conditions worsened in October with those
claiming business conditions are “bad” increased to 47.1% from 46.3%, while those claiming conditions are “good” decreased to 7.7% from 8.6%.
Consumers’ appraisal of the labor market was also bleaker. Those
claiming jobs are “hard to get” increased to 49.6% from 47.0%, while those
claiming jobs are “plentiful” decreased to 3.4% from 3.6%. Consumers
anticipating an improvement in business conditions over the next six months decreased
to 20.8% from 21.3%, while those expecting conditions to worsen
increased to 18.3% from 14.6%. The percentage of consumers
expecting more jobs in the months ahead declined to 16.3% from
18.0%, while those expecting fewer jobs increased to 26.6%
from 22.9%. The proportion of consumers expecting an increase in their incomes decreased
to 10.3% from 11.2%.

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JETSTAR MASTERCARD

Partnering with Macquarie Bank, Jetstar low fare airline has launch its
“Jetstar” low-rate MasterCard credit card. Its first offering beyond
airline and holiday travel, Jetstar is offering consumers a low-rate
through its MasterCard or Platinum MasterCard and ‘Jetstar Dollars’ to
redeem for Jetstar Flight Vouchers on flights to over 50 destinations.
Cardholders accrue one cent in Jetstar Dollars for every dollar spent on
everyday purchases and two cents for every dollar spent on everyday
purchases on the Jetstar Platinum MasterCard. Rated by Canstar Cannex as
the lowest rate credit card on the market, other features of the Jetstar
MasterCard include a zero per cent balance transfer for six months, a
$49 annual fee and up to 55 days interest free.

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Archdiocese of Chicago Deploys ePay Service

CA-based payment processor US Alliance Group has teamed with Chicago-based Coleman Consulting Group to create a new online giving payment
processing solution for the Archdiocese of Chicago and affiliates. The solution
for online giving encompassing all types of payment options, including
Credit Card processing, ACH processing and Remote Deposit Capture.
USAG’s solution allows members to manage contributions while allowing
participating locations to accept all forms of donations online. The
release is scheduled to begin this week and will continue through the
next nine months.

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Visa’s Op Revenue Up 10% as Transactions Rise 9%

Visa reported net income of $514 million for the third calendar
quarter, compared to $536 million in the second quarter and a net loss
of $356 million for 3Q/08. Net operating revenue was $1.9 billion, a 10%
increase over the prior year’s quarter, driven by data processing
revenues. For the third calendar quarter Visa network transactions
(Visa, Visa Electron, Interlink and PLUS) rose 9% to 10.46 billion. By
comparison, Visa’s total transactions were up 8% in the prior quarter
and 6% in the first quarter. Total processed transactions by VisaNet for
the 12 months ended September 30th, totaled 39.9 billion, an 8% increase
over the prior year. Visa also released data for the quarter ended June
30th which showed payments volume growth, on a nominal basis, was a
negative 2% over the prior year at $687 billion; total volume, on a
nominal basis and inclusive of cash volume, was $1.1 trillion, a 3%
decline over the prior year but total cards carrying the Visa brands
rose 5% worldwide over the prior year to over 1.7 billion. In the U.S.
Visa’s credit card gross dollar volume (GDV) declined 15% in the second
quarter to $209 billion while debit card GDV rose 5.8% to $296 billion.
Purchase dollar volume for the quarter was down 9.6% for U.S. credit
cards and up 4.6% for U.S. debit cards. Visa ended the quarter with 309
million credit cards and 352 million debit cards in the U.S. For
complete details on Visa’s latest performance visit CardData
(www.carddata.com).

VISA-NET TRANSACTIONS (millions)
Sep 30, 2009 10,463
Jun 30, 2009 10,266
Mar 30, 2009 9,360
Dec 31, 2008 9,797
Sep 30, 2008 9,590
Jun 30, 2008 9,473
Mar 31, 2008 8,800
Dec 31, 2007 9,094
Sep 30, 2007 8,645
Jun 30, 2007 8,411
Note: Visa, Visa Electron, Interlink and PLUS
cards processed on Visa’s networks.
Source: CardData (www.carddata.com)

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Visa Extends Olympic Games Sponsorship Till 2020

Visa has announced in Moscow, Russia it will extend its “Olympic Games”
sponsorship for a period of eight years. This ensures Visa will remain
the exclusive payment services sponsor and the only card accepted at the
four “Olympic Games” that follow “London 2012 Olympic Games,” including
the “2014 Olympic Winter Games” in Sochi, Russia, the “2016 Olympic
Games” in Rio de Janeiro, Brazil, and the “2018 Olympic Winter Games”
and the “2020 Olympic Summer Games.” Over the past twelve “Olympic
Games,” Visa has utilized its sponsorship to increase its global brand
leadership, grow Visa transaction volume, expand acceptance in new and
emerging markets and enhance preference for its products and services.
Additional benefits under the new agreements allow Visa to offer clients
and cardholders expanded POS presence, exclusive acceptance programs for
Olympic-related transactions and increased access to unique marketing
programs.

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IPKO VISA PREPAID

IPKO, Raiffeisen Bank, Better Served Kosovo and RevEurope introduced
“IPKO Visa Prepaid Card,” Kosovo’s first prepaid card. Allowing young,
cash-based and mobile Kosovars to spend with plastic and the ability to
send money domestically, top up their IPKO mobile phone accounts or
check balances with a simple text message, the “IPKO Visa Prepaid Card”
allows customers to buy and load cash on the card to shop online, make
purchases in the 28 million merchant outlets where Visa cards are
accepted and withdraw cash from 1.4 million ATMs in more than 200
countries worldwide. Additionally, Raiffeisen Bank customers will have
the ability to top up IPKO mobile minutes from their mobile phones as a
feature offered with the Raiffeisen Bank Visa Prepaid Card, which
Raiffeisen Bank is also launching in Kosovo.

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BankServ and Canon Integrate Deposit Solutions

E-payment provider BankServ has partnered with Canon U.S.A to offer “DepositNow” remote deposit capture solutions.
“DepositNow”and Canon’s “imageFORMULA P-150” mobile personal scanner, BankServ and Canon U.S.A. bring
to market a compact, affordable deposit solution. Using nearly any computer with an Internet connection, in any location,
individuals and businesses can quickly scan checks using their portable
Canon imageFORMULA P-150 personal scanner and securely deposit their
funds through DepositNow to any checking account in the U.S. all
without setting foot in a bank. Canon’s new P-150 personal scanner is
small enough to fit inside a briefcase or laptop bag and measures only
11-inches long, 3.7-inches wide and 1.6-inches high. Powered by a single
USB connection, the imageFORMULA P-150, with its automatic document
feeder, can scan full-size documents, business cards and checks in one
pass. The versatile, multi-function scanner retails at just $295.

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Fiserv’s Financial Segment Q3 Margin Soars 310BPS

Fiserv reported that third quarter revenues declined 4.4% to $992
million, compared to 3Q/08. However, net income rose 47% to $115
million. The financial segment operating margin increased 310 basis
points in the quarter to 29.6% through improved business mix, ongoing
cost efficiencies, and strength in the account processing business.
Fiserv signed 85 electronic bill payment clients in the quarter and a
total of 294 clients in 2009. Additionally, the company added 58
EFT/Debit clients in the third quarter and 164 clients so far in 2009.
Fiserv launched “Acumen,” a new global core account processing solution
for the U.S. large credit union market. During the quarter, Citi Prepaid
signed an agreement with Fiserv to provide millions of prepaid cards
including plastic manufacturing, personalization and fulfillment
services. Also, GreenChoice Bank, a Chicago-based de novo financial
institution, selected Fiserv as its technology partner. The company
expects adjusted internal revenue growth in the fourth quarter to be in
a range of 0% to 2%. For complete details on Fiserv’s third quarter
performance visit CardData (www.carddata.com).

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TSYS Revenues Up 5% from Q2 Despite Exchange Rates

TSYS reported third quarter revenues of $432.3 million, up 4.9% from the prior quarter, but down 1.6% from the year-ago quarter due to foreign currency exchange rates. Nevertheless, the processor says it has been accumulating cash for expansion, adding $76 million in the quarter and $209 million year-to-date to $420 million. For North America Services total revenues were down 8.2% for the quarter to $262 million. International Services revenues slipped 2.2% to $86 million. However, Merchant Services revenue soared 26% to $94 million. For North America Services operating income was down 3.9% for the quarter to $61 million. International Services operating income declined 2.2% to $10 million and Merchant Services operating income increased 2.2% to $17 million. TSYS recently formed TSYS Program Solutions to provide turnkey credit card programs for regional and community financial institutions. For complete details on TSYS’ third quarter performance visit CardData (www.carddata.com). (CF Library 10/14/09)

TSYS REVENUE
3Q/08: $500 million
4Q/08: $439 million
1Q/09: $409 million
2Q/09: $412 million
3Q/09: $432 million
Source: CardData (www.carddata.com)

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VISA & OLYMPICS

Visa has announced in Moscow it will extend its “Olympic Games”
sponsorship for a period of eight years. This ensures Visa will remain
the exclusive payment services sponsor and the only card accepted at the
four “Olympic Games” that follow “London 2012 Olympic Games,” including
the “2014 Olympic Winter Games” in Sochi, Russia, the “2016 Olympic
Games” in Rio de Janeiro, Brazil, and the “2018 Olympic Winter Games”
and the “2020 Olympic Summer Games.” Over the past twelve “Olympic
Games,” Visa has utilized its sponsorship to increase its global brand
leadership, grow Visa transaction volume, expand acceptance in new and
emerging markets and enhance preference for its products and services.
Additional benefits under the new agreements allow Visa to offer clients
and cardholders expanded POS presence, exclusive acceptance programs for
Olympic-related transactions and increased access to unique marketing
programs.

Details