Q-CASHROUTER

Mats Odell, Minister for Local Government and Financial Markets, has
inaugurated Swedbank’s”Q-CashRouter” (QCR) at the Swedbank office on
Hamngatan, Stockholm. Offering cash recycling, the machine is designed
to reduce cost for cash handling and to increase security. And with cash
handling estimated to cost a total of SEK 11billion annually, given the
large number of daily transports required just to refill ATMs, empty
service boxes, collecting and delivering cash from branches and shops
and to transport the cash between the country’s cash centrals, the QCR
is a cash recycling machine for more efficient cash handling. It is a
cash deposit machine combined with two sideunits for cash withdrawal,
which enables the store owner to deposit the daily amount and to receive
a confirmation of an immediate credit to the bank account.

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Citizens Financial’s Green$ense Takes Off

Citizens Financial Group has rewarded Citizens Bank and Charter One
customers with “Green$ense”, a cumulative $5.2 million for reducing
paper with electronic banking-payment transactions.
Green$ense deposits cash directly into a customer’s checking account on
a monthly basis, providing greater
savings and spending flexibility. Rather than limiting cash payouts
to debit card transactions, Green$ense customers earn money for debit
card purchases (signature and PIN), online bill payments and recurring
payments, making it the most robust program of its kind in the industry.
Enrollment in Green$ense is free for all Citizens Bank and Charter One
customers with a checking account, including Green Checking, the bank’s
free checking product. There are no minimum balance requirements and no
hidden fees. As an added perk, customers who enroll in the program will
receive an industry-first Green$ense Visa® debit card made from recycled
plastic. Customers also will be enrolled automatically in online banking
with free Bill Pay and receive paperless statements.

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ICE & PEOPLE’S

Integrated Card Exchange (ICE) of CardWorks and Peoples Trust financial
services have launched their comprehensive processing solution for the
Canadian market, powered by Planet Payment multi-currency and data
processor. The processing solution provides Canadian merchants a
comprehensive suite of business-building tools to improve merchant
efficiency and profitability with full domestic processing support for
Visa and MasterCard including chip and pin, American Express, JCB, and
Interac debit card transactions. Merchants also have access to Planet
Payment’s “Pay in Your Currency” and Multi-Currency Pricing services.
E-Commerce and Mail Order / Telephone Order merchants have access to
iPAY, Planet Payment’s robust suite of payment acceptance and business
management tools.

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Survey Finds Card Offered Rates Jumped 20% in 2009

A new study finds that all of the credit cards offered online by the
top bank card issuers continue to include practices that will be
outlawed once all the new “CARD Act” rules take effect next year.
According to the Pew Health Group’s “Safe Credit Cards Project,”
advertised credit card interest rates rose an average of 20% in the
first two quarters of this year. In July, median advertised APRs for
purchases on bank issued cards were between 12.24% and 17.99%, compared
to a range of 9.99% to 15.99% in December 2008. Other findings shows
99.7% of bank cards allowed issuers to increase interest rates on
outstanding balances, from 93% in December; 95% of bank cards permitted
issuers to apply payments in a way the Federal Reserve found likely to
cause substantial financial injury to consumers; and 90% of bank cards
had penalty rate hikes with the vast majority imposed by “hair triggers”
of one or two late payments in a year. The Pew data were gathered from
July on nearly 400 cards.

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S-4

MasterCard Canada has congratulates the Canadian Government for its
passage of identity theft legislation, Bill S-4, to fight perpetrators.
Having received royal assent on Oct. 21, Bill S-4 Amended the Criminal
Code on identity theft and related misconduct. MasterCard has joined the
battle against identity theft with developing more secure, convenient
and rewarding payment solutions, most recently with its chip card to
provide greater security in electronic transactions. As a matter of
fact, MasterCard led the introduction of payment card chip technology in
Europe, Asia and now Canada, protecting the Canadian market from global
fraud migration.

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Hypercom Forms Global Data Protection Business Unit

Hypercom has teamed with Voltage Security to bring its Asia-Pacific-based “EFTSec Server” payment data encryption technology to North America, Latin America and Europe. As a result, Hypercom has formed the new “Global Data Protection Business Unit,” to be headed by
TK Cheung, Hypercom’s VP/Global Quality and Security. Cheung is also
Vice Chairman and Chief Technical Officer of The Secure POS Vendor Alliance. Hypercom was the first electronic payment solutions provider to initiate card data encryption with its “EFTSec” technology introduced in 2006. “EFTSec” is already in use by seven major banks and licensed to and implemented by several major terminal manufacturers. Hypercom says it believes end-to-end payment data protection encompasses protecting data throughout its lifecycle—not only encrypting it when in transit but also when at rest in a merchant or payment processing enterprise environment. The scope of payment data protection also includes the use of strong security technology throughout the design, deployment, operation and maintenance of payment terminals and their applications including the loading and storage of debit keys that reside on those devices.

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INSIDE & DCS

INSIDE Contactless and Dynamic Card Solutions (DCS) have partnered to
facilitate and speed the deployment of a new wave of innovative
contactless cards, mobile payment stickers and mobile payment peripheral
devices. This ensures banks will be able to instantly personalize and
activate mobile payment solutions based on INSIDE’s “MicroPass 4000”
contactless and “MicroPass 6000” dual interface payment chip sets. Using
the DCS “CardWizard” software, bank branch personnel will be able to
instantly and securely personalize any of INSIDE’s MicroPass-enabled
contactless or dual interface products in any form factor, including
MicroSD cards, contactless mobile payment stickers and other accessories.

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SMS Alerts Added to the ATIRAreload Card

The Members Group is offering SMS text message alerts to its prepaid “ATIRAreload” card product.
“ATIRAreload” cardholders can elect to receive a SMS text message alert
based on specific event triggers such as low balance, value load and purchase
transactions. They can also send a text message requesting information, such as
account balance. TMG is a wholly-owned subsidiary of the Affiliates Management Company,
which is owned by Iowa credit unions and their members.

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CARD MANUFACTURING

The number of cards manufactured was essentially flat last year. The latest ICMA survey reveals 19.4 billion cards were manufactured globally, up 60 basis points from 2007. The dollar market also increased by 4.3% to $9.7 billion in 2008. North America held its position as the largest producer of cards, with more than 8.8 billion cards manufactured in 2008. The Asia Pacific region continues to gain global share with 4.9 billion units manufactured. Europe remained in the third position with 4.1 billion units manufactured, followed by Latin America with one billion units manufactured and the Middle East/Africa (MEA) with half a billion units manufactured.

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Chase Paymentech, VeriFone and Semtek Team

Chase Paymentech has inked a joint initiative with VeriFone
Holdings and Semtek Corporation to provide merchants with encryption technologies.
The companies will work together to market and distribute VeriFone’s
“VeriShield Protect” solution to the Chase Paymentech base of retail
merchants. “VeriFone Hidden Encryption”, or VHE, based on Semtek’s proprietary
encryption technology, preserves the format of the card data, ensuring
that the encrypted card data can be used by typical point-of-sale
software systems with minimal modifications or disruption to the
merchant. The solution eliminates the need for a merchant to process,
transmit or store card data in the “clear.”
“VeriShield Protect”, which is compliant with Visa’s best practices for
data field encryption, also known as end-to-end encryption, is based on
the AES encryption standard.

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CUP & CHINA MINSHENG

TSYS and its joint venture with China UnionPay (CUP), CUP Data Services,
have renewed its credit card processing contract with China Minsheng
Bank. China Minsheng Bank began issuing credit cards in China in May
2005, since its credit card business has grown into a portfolio of 8
million cards. Several measurements of Minsheng’s credit card offerings
indicate they are among the best in China. CUP Data was established in
2003, has signed more than 60 credit-, debit- and prepaid-processing
client banks at year-end 2008 and is China’s largest third-party
processor of bankcard payments providing transaction processing,
disaster recovery and other services for issuing banks in China.

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Dodd Wants an Immediate Card Interest Rate Freeze

As the “Expedited Credit CARD Act” is likely to pass the Congress, Senate Banking Committee Chairman Chris Dodd has introduced a bill to immediately freeze credit card interest rates on existing balances. Dodd says “credit card companies have been jacking up rates in a last ditch effort to squeeze customers before all of the bill’s provisions can take effect.” In April, Chairman Dodd and Senator Schumer sent a letter to the heads of the Federal Reserve, OTS, and NCUA calling on them to implement an emergency freeze on interest rates tied to existing balance on credit cards. Reps. Barney Frank and Carolyn Maloney have introduced House legislation that would move the effective date of the new restrictions from February 22nd to December 1st. The Financial Services Committee unanimously passed the “Expedited CARD Reform for Consumers Act of 2009” last week. The “Credit CARD Act” requires credit card companies to review every account that has seen an interest rate increase since January 1, 2009 and reduce rates where warranted.

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