Dynamic Card Unveils CardWizard 5.1

Dynamic Card Solutions has released “CardWizard 5.1” which offers enhanced features
and capabilities that create flexible instant card issuance and PIN
selection. CardWizard 5.1 is designed with optimum functionality and ease of use.
In addition to DCS CardWizard’s complete custom background selection
that enables financial institutions and retailers the ability to produce
a fully personalized, thermally printed unembossed card in real-time,
this new software release will also feature enhanced interfaces and
reporting functions, multiple language capabilities, as well as a new
menu option to specify PIN pad devices.
Companies can combine CardWizard with an array of card issuance machines and PIN pad
devices to create flexible card issuance environments to accommodate
multiple user requirements. As a component-based Windows 9x/NT/200x
software application, “CardWizard 5.1” is currently available and easily
integrates into existing branch, host and network systems and boasts an
easy-to-use administration component.

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U.S. Bancorp Acquiring Volume Slowly Rebounding

U.S. Bancorp reports that third quarter merchant acquiring volume declined 7% year-on-year to $62.0 billion, compared to an 11% year-on-year decline in the second quarter, as the number of merchants rose to 855,498. Payment Services contributed $67 million of the Company’s net income in the third quarter, a decrease of 67% from 3Q/08, but a 24% increase over the prior quarter. The decline year-over-year was primarily due to a $223 million increase in the provision for credit losses. Net interest income increased 22.5% to $55 million due to strong growth in credit card balances, partially offset by the cost of rebates on the government card program. Total noninterest expense increased by $64 million (16.2%), principally due to marketing and business development expense related to new credit card products. Average credit card outstandings rose 7.4% to $15.4 billion. Charge volume decreased 4.5% to $20.95 billion. For complete detail on U.S. Bancorp’s latest results visit CardData (www.carddata.com).

MERCHANT ACQUIRING VOLUME HISTORICAL
3Q/07: $63,882,000,000
4Q/07: $62,382,000,000
1Q/08: $64,853,000,000
2Q/08: $66,940,000,000
3Q/08: $66,941,000,000
4Q/08: $58,630,000,000
1Q/09: $57,877,000,000
2Q/09: $59,725,000,000
3Q/09: $62,011,000,000
Source: CardData (www.carddata.com)

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Cenex to Offer the Cabela CLUB Visa

Outdoor sports and hunting retailer Cabela’s has
partnered with CHS’ Cenex brand to offer the “Cabela CLUB Visa” that gives double points to members.
The new Cenex co-branded Cabela’s CLUB Visa card offers the same great
benefits as the Cabela’s CLUB Visa credit card, with the added benefit
for all CLUB members of double points or 2% in CLUB points for
every purchase made at any of the 1,600 Cenex-branded fueling centers.
Additionally, CLUB members receive 2% for all purchases at
Cabela’s and 1% for all non-Cabela’s purchases. Points can be
redeemed for free Cabela’s merchandise of the cardholders’ choice. Cenex
co-branded CLUB card members will also receive exclusive discounts and
invitations to member-only events. The card will have no annual fee.
CHS will promote the Cenex co-branded Cabela’s CLUB Visa online and in
its fueling centers starting in mid-October. Under this exclusive
partnership, Cenex is the only petroleum brand able to offer double CLUB
points on a co-branded Cabela’s CLUB Visa.

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ChoicePoint Fined for Turning-Off Security Tool

Data broker ChoicePoint has agreed to strengthen data security
requirements and to pay $275,000 to settle FTC charges it failed to
implement a comprehensive information security program protecting
consumer information and resulting in a 2008 data breach. Subsequently the
personal information of 13,750 people were put at risk of identity
theft. The incident could have been avoided if a representative of
ChoicePoint hadn’t turned off a key electronic security tool used to
monitor access to one of its databases for four months. During that
period, an unknown person conducted unauthorized searches of a
ChoicePoint database containing sensitive consumer information for 30
days, after which the company brought the matter to the FTC. The FTC
then concluded if the security software tool had been working,
ChoicePoint would have detected the intrusions earlier, thus minimizing
the extent of the breach. The FTC is subsequently requiring ChoicePoint
report to the FTC every two months for two years detailed information
about how it is protecting the breached database and records containing
personal information.

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PICOPASS

INSIDE Contactless chip technologies has partnered with ADELYA
Software-as-a-Service company specialized in contactless and mobile
loyalty and relationship programs. This will allow consumers to quickly
conduct retail loyalty, ticketing, low-end ID and other transactions
using the mobile phones they already have. INSIDE is providing ADELYA
with technology to transform mobile phones into contactless loyalty
cards, and more than 300,000 loyalty cards embedded with INSIDE’s
“PicoPass” contactless stickers have already been deployed throughout
France to customers of Tape à l’oeil, a children’s clothing retailer.
The “PicoPass” stickers are part of a family of 13.56-MHz contactless
memory chips available in 2K and 32K EEPROM configurations that support
both ISO 14443/B and ISO 15693 protocols.

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NetSpend Intros New Orleans Saints Card

Prepaid card provider NetSpend and grocery retailer Winn-Dixie Stores have teamed to offer a New Orleans
Saints-branded prepaid Visa debit card to Winn-Dixie customers in the
Greater New Orleans area.
The companies also announced that customers who purchase and activate a
new Saints® NetSpend® Visa® Prepaid Debit Card between August 10th and
December 2nd are automatically entered to win four tickets to a Saints
home game during the 2009-2010 season. One grand prize winner gets a VIP
trip featuring four tickets to the January 3rd game between the New
Orleans Saints and the Carolina Panthers in Charlotte, NC with round
trip air and hotel accommodations. The cards, which are issued by Inter National
Bank of McAllen, TX, are now available at approximately 70 stores.

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Dresser Wayne Offers POS Upgrade Kits

Fuel industry tech provider Dresser Wayne announced
that “iX Pay Secure Payment” upgrade kits are available for installed
Ovation, Vista, and Tokheim Premier line fuel dispensers.
iX Pay Secure Payment solutions ease the upgrade path today and provide
flexibility for tomorrow. The kits were created specifically for these
dispensers, leveraging Dresser Wayne’s decades-long experience in
outdoor payment products, and feature a refreshed user interface. These
kits are also designed to be upgradeable to meet future security
requirements, including PCI Unattended Payment Terminal (UPT). The kits
enable retailers to update equipment to meet Payment Card Industry (PCI)
security compliance requirements. The iX Pay Secure Payment terminal was the first device certified to the
Version 2.0 security standard for both the PCI Encrypting PIN Pad (EPP)
Security Requirements and Canada’s Interac Association Chip PED
requirements.

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Citi ThankYou Network Adds a Bonus Center

Citi’s loyalty program “ThankYou Network” has unveiled an enhanced online Bonus
Center. Members now have access to hundreds of ways to earn extra ThankYou
points by shopping through the Bonus Center at ThankYou.com. Members can now gain even
more value from the Bonus Center with new benefits such as: “Daily Deal”,where members can earn at least 15 points per dollar
spent on limited quantities of hot new items offered daily; “MegaEarn Offers”, members can earn hundreds of extra points
on brand name merchandise and entertainment; “OpenTable® Dining Reservations”, where members can earn ThankYou
bonus points for booking dining reservations online at more than 11,000
participating restaurants and earn additional points when they pay
for their meal with a Citi credit card that has ThankYou Network as its
rewards program and “Discounts and Deals” to benefit from discount
offers, free shipping, and free gift with purchase deals in addition to
ThankYou points they are already earning.

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BUSINESS MONITOR

Most Canadian small business owners are unprepared to deal with common
disruptions that impact their daily business with 20% having experienced
a “significant” disruption. Of the small businesses having experienced
this disruption, 46% said the impact lasted more than a month; 80%
disclosed preparing is not a priority; 20% said preparing is a top
priority; 49% don’t have fire and flood insurance; while only 7% are
“very prepared”. Promising findings, however, show 57% ave initiated a
Data back-up plan; 34% have Emergency cash reserves; 31% have Back-up
power systems and 20% hold Catastrophic illness insurance. Additionally,
50% of small business owners in Canada are hopeful their business’s
future financial position is poised to get better while 29 % remain
worried their financial position is about to get worse.

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ALTERNET

Alternet Systems representatives are joining a Kenyan Trade Mission
focus on mobile payment opportunities across the East African market in
developing economic regions. Alternet has announced partnerships to
penetrate markets in Asia and Africa through the Greenfield program, in
addition to its current base of sales in Central and South America.
Alternet began participating in the Greenfield program earlier this
year, started by NewMarket Technology, to accelerate the introduction of
new technologies into emerging markets around the world where technology
buying is on the rise, while improving return on investment (ROI)
potential.

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New White Paper Out on Smart Cards & Fraud

A new report from the Smart Card Alliance details the reduction of fraud with contactless card implementation.
Much of the fraud on debit and credit cards in the United States results
from activities like counterfeiting and card skimming. Credit and debit
card fraud is possible because magnetic stripe cards use static data
that can be copied and reproduced on fraudulent cards or used in an
Internet purchase transaction. The Alliance does not see protection of
data or better fraud detection techniques as the solution to the fraud
problem. Rather, the solution is to replace this static data with
dynamic data, because it renders stolen account or transaction
information useless. To achieve this goal, the Smart Card Alliance recommends contactless
chip cards, already implemented throughout the United States. Current
contactless payment devices generate dynamic cryptograms (encrypted
codes), similar to those generated by EMV payment cards, so certain data
on the card and the terminal change with every transaction. The
authentication of the cryptogram assures the issuer that the card
presented is authentic. If data is copied or intercepted at the reader,
the data is already obsolete for future transaction attempts, and cannot
be used successfully to counterfeit cards or replay transactions.
Importantly, the current U.S. payments infrastructure can already handle
the contactless payment dynamic cryptograms. The white paper, “Fraud in the U.S. Payments
Industry: Fraud Mitigation and Prevention Measures in Use and Chip Card
Technology Impact on Fraud,” developed by the Contactless and Mobile
Payments Council, is available on the Smart Card Alliance Web site.

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ENCRYPTION PROJECTS

With 52% of organizations planning encryption projects to comply with
PCI DSS, while 53% of U.S. organizations are planning an encryption
project to comply with HIPAA, data-specific regulations to safeguard
consumer privacy is having an increasingly broad impact. Only 43% of
organizations using database encryption and 41% using tape encryption,
however, are at continued risk. This, according to the “2009 Encryption
and Key Management Benchmark Survey” conducted by Trust Catalyst on
behalf of Thales, also shows 34% have now spent one year or more
planning for key management issues; 49% must be able to recover an
encrypted database in one hour or less; payment processing must be
available in less than one hour for 54% of all surveyed; 8% of
organizations have experienced problems with a lost encryption key over
the last two years; and 39% of organizations have lost data permanently
or disrupted business operations. However, 52% are most concerned with
data security; 47% would not move to the cloud unless data was encrypted
and 43% have no plans to move to cloud computing.

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