Heartland Completes Phase One of its E3 AES Pilot

NJ-based Heartland Payment Systems has completed the first phase of its “E3” end-to-end encryption pilot project, having transmitted live AES (“Advanced Encryption Standard”)-encrypted card transactions from a merchant to its own processing platform. AES is the highest level of encryption and is currently on track to replace DES (Data Encryption Standard) and Triple DES as the desired standard for sensitive data. Composed of five payment zones for transaction encryption of card reads through the Heartland network, four of which were confirmed with the completion of the first phase, “E3” focuses on protecting data in transit. The five payment zones include; Zone 1- from data entry/card read at the merchant to the authorization network of the processor; Zone 2-from the entry into the authorization network of the processor and through all points in which data is in motion within the network(s) of the processor and its sub-contractors; Zone 3- while the data resides in a central processing unit (CPU) or a host security module (HSM); Zone 4-in a direct access storage device (DASD) or archival storage; and Zone 5- from the processor to the authorization and settlement centers of the card brand or issuer.

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GLOBAL CARDS

Shipments of payment smart cards to North America doubled last year. Also, open-platform is gaining ground and now represents 15% of
all global shipments, a 72% increase compared to 2007. The Smart Payment Association’s “2008 Global Payment Card Market Survey” reports that more than 580 million payment smart cards were delivered by its members last year a 39% growth rate over the prior year driven by EMV deployments. The SPA members are Gemalto, Giesecke & Devrient, Oberthur Technologies and Sagem Orga. Both dual interface and pure contactless cards confirm SPA’s expectations, outperforming the market with year-on-year growth rates of 140% and 66% respectively. DDA technology is continuing to gain importance, with 69% growth year-on-year, representing 25% of SPA members’ shipments in 2008. Migration to DDA has started worldwide, and both Visa and MasterCard mandate that all cards should support DDA by 2011 in Europe.

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PLS Prepaid Card Offers 5% Interest Rate

IL-based PLS Financial Services has introduced the “Gold Prepaid Card”
that offers a promo interest rate earning of 5%. “The PLS Gold Visa
Prepaid Card”, issued by Meta Bank, is unique because of the savings
account option. Our customers can earn a promotional 5.00% APY on their
savings–ten
times the national average–with no minimum deposit. The card is
offered through TX-based NetSpend and is
available at more than 120 PLS Check Cashers locations in the U.S.
PLS and NetSpend have also simplified the process of loading value onto
the PLS Gold Prepaid Card. Customers may choose direct deposit of their
paychecks onto their NetSpend card, which are then immediately available
for use. The NetSpend Prepaid Card Network includes leading consumer
brands and companies serving the un-banked and under-banked markets, and
its strategic relationships include card issuers, EFT networks and
payment card associations.

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MTN & GEMALTO

MTN Uganda multinational telecommunications has chosen Gemalto’s
comprehensive solution for the deployment of its nationwide mobile
payment program. Supplying MTN server integration services as a
technological partner, Gemalto is to provide accessibility to its server
to interconnect operators with banks and its SIM cards to execute the
m-payment application. The Gemalto solution provides secure, convenient
and affordable means for MTN Uganda subscribers to carry out
peer-to-peer fund transfer using their mobile phone, affording the
utility of a bank account and Internet access. Service deployment began
March of 2009, having hosted nearly 180,000 m-payment transactions, MTN
Uganda is part of the MTN Group operating in 21 countries in Africa and
the Middle East serving over 100 million subscribers and Gemalto digital
security had 2008 annual revenues of EUR1.68 billion, employing 10,000
through its 75 offices in 40 countries.

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Visa Inks and Invests in Montise Mobile Payments

Visa continues to rack up more partnerships to facilitate the expansion of global mobile payments with today’s announcement of a strategic alliance with Monitise. Under terms of the deal, Visa plans to make a minority equity investment in Monitise, a UK-based mobile payments specialist. Monitise says it can optimize the user experience
for Visa mobile payments and related services as its solution can detect phone make, model, screen size, browser type and multimedia capabilities. Visa says the partnership will produce mobile payments, mobile money transfer, mobile transaction alerts and mobile marketing offers. The two companies indicate they will focus on increasing the speed to market of unique payment and related services including mobile
user enrollment services, application development and channel management. Last week, Visa announced two major m-payment partnerships. The NeuStar alliance will combine Visa’s global payment network with NeuStar’s carrier grade infrastructure. VisaNet Peru and Telefonica announced they will launch the “Pago Móvil con Visa” service (Visa Mobile Pay) to enable cardholders in Peru to pay for products and services over a wireless network. In 2007 Monitise
plc and Metavante partnered to create Monitise
Americas. The mobile service is integrated with the NYCE Payments, which delivers the service to U.S. customers, and is available through mobile phone handsets over a secure network. CF International Library 11/28/07; CF Library 6/23/09)

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TOURIST OUTLOOK

According to Visa’s recently published “Tourist Outlook: Canada” report,
Canadians are still participating in international travel despite the
difficult economic environment, with over 68% planning multiple
international trips over the next 24 months. Additional findings show
the economy has not affected 52% of respondents’ travel habits while 62%
prefer to use a credit card while travelling abroad. In response, Visa
is making it known its payment card acceptance network reaches 130
countries and is protected by the “E-Promise” for shopping online, by
mail, or by phone. The card issuer is also recommending its traveling
cardholders inform financial institution before leaving the country;
memorize their PIN; review cardholder agreements to determine insurance
coverage; to take advantage of travel perks; maintain records; and to
keep contact info on issuing financial institutions handy.

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BluePay Launches a Green EBPP Solution

IL-based BluePay has introduced “View’n Pay” paperless billing
electronic invoicing solution. BluePay’s merchant
processing services gives customers more payment options while reducing
the amount of paper used on a daily basis. With BluePay’s View’n Pay solution, the bill payment and
processing procedure is streamlined and simplified. BluePay offers many
solutions for merchant credit card processing, and can assist clientele
in implementing credit card and ACH payment solutions. They can provide
everything from interactive voice response systems (IVR) for phone
payment options to developing a recurring or one-time billing and
payment solution. BluePay’s EBPP allows merchants to create and store
multiple payment sources and options as well as provides a daily report
to the merchant of all transactions. The merchant never hosts the
customer’s credit card, which reduces the liability for the merchant.

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GOL SMILES

GOL Linhas Aereas Inteligentes low-fare airline subsidiary, VRG Linhas
Aereas, has signed an operating agreement with Bradesco and Banco do
Brasil (“Financial Institutions”) for the issue and administration of
co-branded loyalty credit cards, including the SMILES brand loyalty
program. Under the Operating Agreement, GOL will initially receive
approximately R$252.0 million for the acquisition of miles from the
SMILES program and the Financial Institutions’ rights to access and use
the registration database and a share of the revenue from the credit
cards issued, 60% of which will be paid by July 31, 2009, 22% by January
31, 2010, and 18% in monthly installments during the first five years.
SMILES has more than 6.2 million clients and up to 100,000 new
registrations monthly.

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FEIB & AIG

American International Group (AIG) has agreed to sell the assets of AIG
Credit Card Company (Taiwan) to Far Eastern International Bank for
undisclosed terms. For the transaction, ABN AMRO Bank, Hong Kong Branch,
acted as financial advisor and Linklaters LLP and Russin & Vecchi served
as legal counsel to AIG, which offers its insurance and financial
services in more than 130 countries and jurisdictions. Subject to the
approval of the Financial Supervisory Commission of the Republic of
China, Far Eastern International Bank is expected to be in control of
AIG Credit Card Company by the third quarter of 2009.

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ADVANTAGE HIZZ

HSBC Bank has selected On Track Innovations’ contactless payment
product suite for its “Advantage Hizz” (Fast Advantage) MasterCard
“PayPass” program. HSBC is deploying “Advantage Hizz” to offer customers
a contactless payment solution without the need for a signature nor
password on purchases of less than 35 Turkish Lira. In addition to
offering its customers the traditional payment card, HSBC is also
providing a contactless key fob and sticker for acceptance in 4,000
quick-serve restaurants, convenient stores, book & music stores,
accessory stores, groceries and supermarkets. Adhering to multiple
surfaces, the contactless sticker and fob meet all payments industry
security requirements with the speed and convenience of contactless
transactions. Providing contactless microprocessor-based smart card
solutions since 1990, OTI applications are deployed for homeland
security, payments, petroleum payments and other applications around the
world.

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ABM & FEES

The Association of Banks in Malaysia (ABM) announced its commercial
banks are now required to reduce late payment credit card charges from a
maximum of RM75, to which the penalty was recently reduced from RM100,
to a maximum of RM50. Under the new regulation, cardholders are required
to pay a minimum of RM5, which was reduced from RM10, or 1% of the total
balance outstanding on the statement date- whichever is higher- up to
no more than RM50 for late charges. Additionally, credit card users
will now be allowed a minimum three-day grace period from the due date
of payment.

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AirPlus International Promotes 3 Executives

Corporate travel payment solution provider AirPlus International has promoted Aaron Kelling to EVP, Strategic Partnerships.
Alexander Houston to EVP, Sales and Kathy Cantwell has been promoted to VP, Client Services. Formerly serving as AirPlus Vice
President, Sales and Account Management for the Northern US and Canada,Kelling will now have responsibility for the entire US market.
Prior to joining AirPlus Kelling was with American Express as
Director of Business Development as well as with Galileo International in
various roles including Director of Global Strategic Sales. During his time
with Galileo, Kelling was prominently featured in an article for Forbes
magazine entitled, “Life of a Salesman.” Formerly serving as Vice President Sales for the southern US region, Houston is well-rounded and possesses over 30 years of diverse travel
industry experience and is an active participant in industry
associations and events. Cantwell, formerly Director, Customer and
Agency Relations, has 20 years of travel industry experience in both
technology and international integration capacities and joined AirPlus
during its initial launch in the US market just over five years ago.

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