FIRSTVISION

Payment processor First Data reports new customers and contract renewals
for “FirstVision”, its full-service
global issuing and consumer finance processing solution. “FirstVision”
is the new name for First Data’s strategic processing
service and builds on the proven strengths of “VisionPLUS”.
“FirstVision” brings together an advanced processing platform and a
fully integrated suite of market-leading, value-added services. It
supports all major types of payment cards as well as
loans and loyalty programmes and encompasses a rich set of value-added
services to manage risk, enhance cross-selling and drive revenue growth.
Within the past six months, Co-operative Financial Services and Vanquis
Bank have renewed major processing
contracts and First Data has successfully completed the migration of the
card portfolios of Thai consumer finance organisation, Capital OK, and
Punjab National Bank to its issuing platform in Shanghai and signed a
five-year processing agreement with Unicard SpA, the cards unit of
Unipol Banca in Italy. Other new customers signed during 2008 include
Allied Bank and Bank Alfalah in Pakistan and Kotak Mahindra in India.

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WF.com Available Free in Apple App Store

Wells Fargo has released its “Mobile Banking Service” app for iPhone and
iTouch. The service allows users to connect to their Wells Fargo
accounts by allowing customers who browse the web on their mobile phone
can go to Wells Fargo’s mobile website at WF.com and sign on to their
bank accounts to check account balances;check account activity; transfer
funds between accounts and pay a bill.

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NEOVIA CEO

Ron Martin, President & CEO of NEOVIA, will leave the Group and step
down as
a Director of the Board on 31 May 2009. Dale Johnson, Chairman of the
Board, will assume executive responsibility for the Group until a new
CEO has been appointed. The Board has commenced a process to select a
new Group Chief Executive
Officer and good progress is being made in this regard.
During the interim period until a new CEO is appointed, Dan Starr,
Executive Vice President, and Doug Terry, Chief Financial Officer, will
assist the Chairman in the day-to-day executive management of the
Group’s business. These responsibilities are in addition to their
existing roles. This is part of a broader reorganisation to focus the
Group’s efforts on meeting the current challenges facing the business.

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DERBYSOFT & TRUSTWAVE

Hospitality tech service provider DerbySoft has selected Trustwave to
provide Payment
Card Industry Data Security Standard (PCI DSS) compliance validation
services. As a payment gateway provider for hotels and the hospitality
industry,
DerbySoft has engaged Trustwave to provide guidance on securing their
payment environment and validating PCI DSS compliance. They have
enrolled in Trustwave’s on-demand compliance management solution,
TrustKeeper(R) to access the necessary tools to support on-going
compliance such as quarterly network vulnerability scans. In addition,
Trustwave will perform an internal penetration test to ensure adequate
controls are properly in place for any person with access to the
internal corporate LAN/WAN environment.

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CAPITAL Card Beefs-Up its IP Communications

SD-based CAPITAL Card Services has deployed IN-based Interactive
Intelligence’s IP communications software suite. The suite, “Customer
Interaction
Center” (CIC), replaced CAPITAL’s Mitel PBX, along with several other
telephony products, and today supports the company’s 200 contact center
agents and an additional 100 business users. Since deploying CIC,
CAPITAL has reported improved operational
performance — from faster feature roll-out and better reporting, to
improved training and client satisfaction. CAPITAL Card Services is a
servicer of MasterCard and Visa
accounts for financial and non-financial institutions nationwide. The
company serves approximately 500,000 cardholders and manages more than
$145 million in outstanding card receivables for its clients.

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UPside Visa Prepaid Card is Launched

Card issuer Plastyc has partnered with NBA star Amar’e Stoudemire to
promote the “UPside Visa Prepaid Card”, issued by Meta Bank. Consistent
with Amar’e Stoudemire’s relentless efforts to encourage his
younger followers to stay on the right track, the cards will also be
available to high-school students above the age of 13, strictly under
the control of their parents. The cards feature Stoudemire’s foundation
“Each 1 Teach 1”. The “UPside Visa Prepaid Card is a new generation of
cards with low fees and unprecedented online access through websites,
cellphones and a Facebook application.

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Merchant Warehouse Exec Cited for E&Y Award

Card processor Merchant Warehouse announced that its President Henry
Helgeson is a finalist for the for the Ernst &
Young Entrepreneur Of The Year 2009 Award. The awards program
recognizes entrepreneurs who
demonstrate extraordinary success in the areas of innovation, financial
performance and personal commitment to their businesses and communities.
Under Helgeson’s guidance, Merchant Warehouse has created new and
innovative products and solutions that shake up the industry. Earlier
this year, the company launched BINsmart™, a patent-pending and
revolutionary technology that identifies, once a card is swiped, whether
it is a debit, credit or corporate card; calculates the estimated lowest
cost processing option; and then prompts for the best method to run that
sale. It also developed and launched its first iPhone and Blackberry
applications, MerchantWARE Mobile, which allow mobile workers the
convenience of accepting payments while on the road. Award
winners in several national categories, as well as the overall national
Ernst & Young Entrepreneur of the Year award winner, will be announced
at the annual awards gala in Palm Springs, California on November 14,
2009.

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ABS SLIDE

According to a new report released by Moody’s, the UK credit card
asset-backed securities sector continued to deteriorate in 1Q/09,
a trend which is expected to persist through to 2010. The
charge-off index reached 7.39% in March, which is its highest point
since April 2007. Meanwhile, the credit card delinquency index, an
indicator of the expected increase in charge-offs, surged to an all-time
high of 8.08% in1Q/09. Moody’s notes in the report that the
aggregate payment rate index has
remained broadly stable over the past 18 months between 16% and 18%.
However, the rating agency expects a decline in payment rates over the
coming months as re-financing options remain limited and more borrowers
are expected to make the minimum contractual payments each month, given
the increased financial difficulties they are facing.

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Contractor Management Teams with TransCard

Prepaid card provider TransCard has partnered with Contractor Management
Services to offer payroll cards. Contractor Management Service is the
nation’s leading Third Party Administrator and will offer the benefits
of prepaid cards to their
independent contractor members. By implementing prepaid cards, CMS will
eliminate the need for paper checks and distribute all payments
electronically.

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Study Finds Penalty APR Cure Period Vital

A new study has found that 82% of credit cards allow penalty interest
rate hikes that could last indefinitely. The Pew Charitable Trusts’
“Safe Credit Cards Project” is calling on Congress to add a
a “cure period” to curb penalty interest charges. The median allowable
penalty rate was 28% about double the average non-penalty rate. Pew says
Americans are on track to pay credit card penalty interest charges of
more than $7 billion annually. The Senate bill contains a “cure period”
that will ensure that cardholders have the opportunity to return to
their original interest rate after six months of on-time payments.
The Pew “Safe Credit Cards Project” studied all credit cards offered
online by the largest 12 issuers and included more than 400 credit cards.

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Gap in PDV Widens Between Debit and Credit

The gap between debit card and credit usage continues to widen in the
USA. In the fourth quarter purchase dollar volume for credit cards was
down 8% while PDV for debit cards was up 6%. Sequentially, the PDV for
credit cards declined 5% while debit card PDV edged down by 1%.
According to CardData, purchase dollar volume for Visa and MasterCard
credit cards for the fourth quarter was $336 billion, compared to $354
billion in 3Q/08 and $365 billion one-year ago. Debit card PDV came in
at $283 billion for 4Q/08 versus $286 billion in the third quarter and
$266 billion for 4Q/07. For the full year Visa and MasterCard debit card
gross dollar volume rose 11.6% to $1514 billion. While Visa will not
release first quarter data until the third quarter, MasterCard reported
that U.S. purchase dollar volume for credit cards in the first quarter
was down 13.9% while debit card PDV rose 4.9%. For complete details on
Visa and MasterCard performance visit CardData (www.carddata.com).

U.S. PURCHASE DOLLAR VOLUME
($ billions)
Credit Debit
1Q/07: $305 $229
2Q/07: $341 $250
3Q/07: $345 $248
4Q/07: $365 $266
1Q/08: $326 $268
2Q/08: $355 $289
3Q/08: $354 $286
4Q/08: $336 $283
Source: CardData (www.carddata.com)

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KIOSKS/ATM FORECAST

ABI’s NextGen Research forecasts global markets for financial kiosks and enhanced ATMs will grow at a compound annual rate of 9% and will include more than 186,000 financial kiosks and nearly 2.5 million ATMs by 2013. The report “Next Generation Financial Kiosks: No Bank, No Card, No Envelope Required” provides detail on the market and its outlook, including market drivers and inhibitors; detailed descriptions of self-service financial services applications and services; an examination of the regulatory and business challenges within this market and profiles of leading- and cutting-edge financial kiosk manufacturers and deployers. NextGen Research is the emerging technology arm of ABI Research.

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