Citi To Loan Billions in TARP Funds

Citi has released its second quarterly TARP
Progress Report published today and titled, “What Citi is Doing to
Expand the Flow of Credit, Support Homeowners and Help the U.S.
Economy.” Citi’s TARP committee has authorized initiatives to deploy $44.75 billion across key areas of the U.S. economy to help expand the flow of credit to consumers, businesses and communities. The total includes $8.25 billion in new programs approved in the first quarter. The municipal lending program is intended to help finance the
construction of schools, airports, non-profit hospitals and other
infrastructure and capital projects. Loans made as part of the
initiative will provide “AA”-rated municipal clients with access to
tax-exempt funding for three years for capital investment projects or to
refinance existing variable rate debt. Citi has already made proposals
to potential borrowers totaling more than half of the $5 billion
available under the program.In addition
to the municipal lending program, these new initiatives are: Supplier Financing – $2.0 billion to purchase trade receivables from
small and medium-sized businesses in the United States in order to
provide them with needed liquidity
Residential Mortgages – An additional $1.0 billion in mortgages to lend
to qualified borrowers to refinance their primary residences
Auto Loans – $250 million to lend to consumers via dealerships nationwide. As of March 31, Citi had put $8.2 billion of its approved TARP capital initiatives to work in the economy, primarily to purchase mortgage
securities in the secondary market, a critically important source of
funds that supports lending to home buyers. In providing access to funding that is currently unavailable
from other sources, Citi also expects the program to lower borrowing
costs and add funding flexibility for municipal clients.

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CONTACTLESS PILOT

Barclays and Barclaycard have welcomed the announcement that RBS and MasterCard are to trial
contactless payments in Boots stores across London and Liverpool. Since launching contactless payments with the introduction of
Barclaycard OnePulse in September 2007, Barclays and Barclaycard have
led the way in introducing contactless technology, including plans for
payments via mobile phone to be available on the mass market by 2012.
There are now almost two million contactless enabled Barclaycard’s and
half a million Barclays debit cards on the market, including all new and
re-issued Barclaycard OnePulse, Barclaycard Platinum, Barclaycard
Goldfish, and Barclays Visa and Premier Visa debit cards.

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iPayment Reports Q1 Decrease in Revenue

Credit and debit card-based payment
processing service iPayment announced
financial results for the three months ended March 31, 2009. Revenues
decreased to $170,053,000
for the first quarter of 2009 from $185,455,000 for the first quarter of
2008. Revenues, net of
interchange, were $73,143,000 for the first quarter of 2009 compared
with $77,074,000 for the first
quarter of 2008. Net loss was $210,000 for the first quarter of 2009
compared to net income of
$1,331,000 for the same period last year. iPayment’s payment processing
services enable merchants to process both traditional card-present, or
“swipe,” transactions, as well
as card-not-present transactions, including transactions over the
internet or by mail, fax or telephone.

REVENUE HISTORICAL
1Q/08: $185.5 million
2Q/08: $212.6 million
3Q/08: $203.7 million
4Q/08: $193.0 million
1Q/09: $170.1 million
Source: CardData (www.carddata.com)

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AmEx Reports “No Capital Need” After Stress Test

American Express has received a final report from the Federal Reserve which concludes that
there would be “no capital need” under the assumptions used by the
Supervisory Capital Assessment Program. American Express had a year-end 2008 Tier One Common Risk-based ratio of 9.7%, one
of the highest in the industry. That translates into a capital level
approximately $6 billion above the regulatory benchmark of 4.0% and a year-end 2008 Tier One Risk-Based Capital ratio of 9.7% or 13.0% on a pro forma basis reflecting the issuance of
preferred shares in January as part of the Capital Purchase Program.

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NRF Urges Senate to Approve Cash Discount Amendment

The National Retail Federation today urged
the Senate to approve the “Durbin-Bond” amendment would allow merchants to offer discounts to
customers who use low-fee credit cards rather than high-fee cards. The amendment is aimed at credit card interchange, a fee averaging close
to 2% that Visa and MasterCard banks charge merchants to process
the transaction each time a credit card is used to pay for a purchase.
Visa and MasterCard rules effectively require the fees to be built into
the price of merchandise, driving up costs for all consumers regardless
of whether they pay by cash, check or plastic. The fees totaled $48
billion in 2008 and cost the average household $427, according to NRF
estimates. Both numbers are three times the levels seen when NRF began
tracking interchange in 2001.The “Durbin-Bond” amendment would add debit cards to
cash and checks on the list of payments for which a discount can be
offered, and would prohibit credit card companies from penalizing
merchants for offering a discount, for the way in which they display
discounts or for directing customers toward a discount payment option.

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Healthcare Payment Org SIGIS Hits 5000 Members

The Special Interest Group for IIAS Standards (SIGIS) announced that its membership has reached this landmark level of 5,000. SIGIS provides members with a standard to implement an IIAS as required by Internal Revenue Notice 2006-69 which requires that a merchant’s point-of-sale system compare a customer’s purchases against an electronic file of eligible healthcare items that can be purchased with the customer’s FSA or HRA debit card. SIGIS is composed of a broad range of participants, including retailers, card issuers, third party plan administrators, merchant acquirers, processors, financial institutions, trade association groups, software vendors, and payment card networks.

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Paymetric Takes SAP Pinnacle Award for Thought Leadership

ERP payment acceptance provider Paymetric has been awarded a 2009 SAP Pinnacle Award in the area of Thought Leadership for credit care tokenization solution development. Paymetric is an SAP software development partner and has been a member
of SAP’s Enterprise Services Community since 2006, working alongside
other industry and application experts to facilitate the adoption of
enterprise service-oriented architecture. A member of SAP’s Platform
Thought Leadership Council since its inception, Paymetric
continues to provide its perspective to SAP as both a development
partner and an SAP certified third-party service provider. SAP Pinnacle Awards were granted to leading SAP
partners that have excelled in enhancing the customer experience,
addressing critical issues such as accelerating co-innovation and

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CO-OP Financial To Offer Usage Analytics Plus

CO-OP Financial Services has launched
“Usage Analytics Plus” portfolio optimization product. This web-based tool allows credit unions to view, manage, and evaluate
cardholder usage behavior using a variety of criteria like merchant
type, network and transaction type in an easy-to-read,
user-friendly format. CO-OP is adding the product to Revelation’s first
module, developed by Saylent Technologies, a payment intelligence
software provider that created the Card360TM card portfolio optimization
solution used in the CO-OP Revelation platform. “Usage Analytics Plus” further leverages the breadth of member data by laying cardholder demographics over transaction data. Now, credit unions can analyze usage patterns based on this information combined with specific parameters, such as identifying
heavy PIN users at certain merchants or determining recent cards issued
that haven’t been activated. Clients using the new module find it beneficial to have data combined, particularly for analyzing potential fraud impacts.

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NATIONAL BANK MASTERCARD

National Bank Financial Group has enhanced its Platinum MasterCard
by adding new benefits. Cardholders
will now be covered for hospital and medical travel insurance, be entitled to receive three additional cards, and the maximum “Car
Rental” insurance coverage is now extended from 31 to 48 consecutive days. The Platinum MasterCard also offers a generous A la carte rewards plan that allows you to earn 1.5 points for every dollar spent, which you can
then exchange for a vast selection of rewards: exciting entertainment,
brand name items and gift certificates. New cardholders who apply for a National Bank Platinum MasterCard credit
card before July 31, 2009, will receive a free companion ticket with the
purchase of a primary ticket to London, Paris or Orlando. National Bank has close to $137 billion in assets.

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Fitch’s Card ABS Review Affirmed at 98%

Fitch Ratings’ credit card portfolio review indicates that
the vast majority of credit card asset backed security (ABS) classes
remain well insulated from loss. The robust credit card structures
combined with bank efforts to actively manage risk and in some cases
increase transaction level credit enhancement have resulted in Fitch
affirming 467, or 98% of its credit card ABS ratings including all
‘AAAs’. However, as credit card charge-offs and delinquencies are
setting record highs and are expected to continue increasing throughout
2009, Fitch has revised its Rating Outlook to Negative for several
classes of credit card ABS and placed certain classes on Rating Watch
Negative. Specifically, 76 ratings are revised to Rating Outlook
Negative and 10 ratings are placed on Rating Watch Negative. In the most recent review, Fitch applied a custom charge-off forecast
for each trust. This forecast was derived by applying delinquency roll
rates observed over the last six months to current delinquencies and
incorporating the effect of Fitch’s unemployment forecast of 10% by
early 2010. Fitch’s research has shown that credit card charge-offs are
highly correlated to the unemployment rate, with a 1:1 relationship for
prime credit cards. Fitch will continue to monitor macro-level economic conditions and the
impact on industry and trust level performance variables, and update the
Rating Outlooks accordingly.

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Intersections Takes Small Dip in Q1 Revenue

Identity risk management specialist Intersections reported revenue for the first quarter of 2009 was $87.3 million, compared to
$85.9 million for the quarter ended March 31, 2008 and $88.1 million for
the quarter ended December 31, 2008, an increase of 1.6 percent and a
decrease of 1.0 percent, respectively. EBITDA before share based
compensation for the first quarter of 2009, prior to non-cash impairment
charges, was $5.1 million. Net loss for the quarter ended March 31, 2009
was $558 thousand, compared to income of $3.4 million for the quarter
ended March 31, 2008. Total subscribers decreased to approximately 4.5 million as of March 31,
2009, compared to approximately 4.7 million subscribers as of December
31, 2008. Subscriber additions of approximately 759 thousand in the
For complete details about first quarter of 2009 were offset by subscriber cancels of 952 thousand. Intersections’ latest results visit CardData ([www.carddata.com](http://www.carddata.com)).

INTERSECTIONS REVENUES
1Q/08: $85.9 million
2Q/08: $94.2 million
3Q/08: $93.4 million
4Q/08: $88.1 million
1Q/09: $87.3 million
Source: CardData (www.carddata.com)

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Survey Indicates Women Hit Harder Then Men in Identity Theft

According to a survey on the impact of identity theft
conducted by Affinion Security Center, women suffer more from identity
theft than men, and when victimized, lose more money and take more time
to restore their identities. They also change their behavior more
dramatically following the theft. The national survey
polled 808 households, half of whom had been victims of identity theft
and half of whom had not. The findings coincide with a recent study from
Javelin Research, which found that overall women are 26 percent more
likely to experience identity theft than men. This study found that almost twice as many female victims of identity
theft surveyed by Affinion experienced unreimbursed losses of $1,000 or
more due to identity theft, when compared to male victims of the crime.
Women were also less likely than men to report no unreimbursed losses.
It also took women longer than men to restore their identities.
The Affinion Security Center survey also offers a new perspective on a
deep divide between how women and men are affected by the crime, and how
concerned women are about becoming victims as well as how they respond
to being defrauded.

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