I-Crime Complaint Center Releases Report

The Internet Crime Complaint Center has released its “2008
Annual Report” with 275,284 complaints and $265 million in fraud losses. The average
individual loss amounted to $931. Non-delivery
of merchandise and/or payment ranked number one at 32.9%, with auction fraud at 25.5% followed by
9% in credit/debit card fraud. The Internet Crime Complaint Center is a joint operation between
the FBI and the National White Collar Crime Center.

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CFIB & FEES

A poll commissioned in March for the Canadian Federation of Independent
Business indicates that 83% of Canadians with credit cards think they as
customers will ultimately pay for the higher fees charged to merchants on some of the
new premium cards issued to customers by companies such as MasterCard and
Visa. Catherine Swift, president of the Canadian Federation of Independent
Business said the credit card companies and banks have turned
confusion and a lack of clarity into a fine art. She said it’s more often the case
that customers who receive premium cards are completely unaware there will be
higher fees assessed to the merchants who accept them for payment.
Swift said it may be very convenient for the credit card companies and
banks to have the general public think it will be the merchants who pass
along the additional costs to customers, rather than for the spotlight to be
on the card firms and banks themselves for having come up with the extra fees
in the first place.

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Visa Makes NFC Payments a Reality in Malaysia

Visa has introduced the world’s first commercial Visa mobile payments
service for POS using NFC technology in Malaysia. Maxis, Nokia and
Maybank have teamed with Visa to offer “Visa payWave” on mobile devices.
Maxis is the largest wireless carrier in Malaysia with more than 11
million subscribers, Nokia is the world’s leading handset manufacturer
and Maybank is a top financial institution in Malaysia. Maybank Visa
account holders can download their “Visa payWave” credit account details
directly to their “Nokia 6212” classic handset over the Maxis wireless
network. Once the account has been personalized on the phone, account
holders can then begin to make purchases at any one of the 1,800
merchant outlets that currently accept “Visa payWave” in Malaysia. The
contactless chip embedded in the device will also power a number of
additional functions, including a contactless transit application that
enables Malaysian commuters to pay for charges while using metropolitan
transit systems, bus terminals, highway toll gates and car park
facilities at more than 3,000 contactless payment touch points
throughout Malaysia. Maxis has branded these mobile payment services
under the name Maxis “FastTap.”

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Card Monthly Payment Rates Continue to Sink

Monthly payment rates, the amount that cardholders pay on their credit card debt collapsed in March by 137 basis points, following a 35 basis points uptick in February. In November the MPR posted its largest one-month drop ever, descending 251 basis points. Rising in December, the MPR declined 178 basis points. In January 2008, the MPR declined 140 basis points from the prior month. Historically, the MPR declines slightly in January, but this has not been the case since the start of the current recession. Among managed credit card outstandings, the MPR declined to 15.66% in March. According to CardData, the MPR one-year ago stood at 18.64%. Fitch’s “Monthly Payment Rate Index” declined to 15.78% from 17.15% in February. Fitch says the drop was driven by seasonal factors as well as fundamental changes in cardholder payment trends.

MONTHLY PAYMENT RATES
Sep 08: 18.69%
Oct 08: 18.53%
Nov 08: 16.05%
Dec 08: 18.56%
Jan 09: 16.78%
Feb 09: 17.13%
Mar 09: 15.66%
Source: CardData (www.carddata.com)

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Triton Exec to Address ATM ISOs Council

ATM provider Triton will be represented by Chuck Hayes, Product
Development Manager, at the National Association of ATM ISOs & Operators
Security Standards Council committee. Hayes will be working with other
members of NAAIO to advise the association board on ongoing decisions
related to PCI standards mandates. NAAIO is an independent ATM sales
organization association founded in 2007
to represent and promote the common business interests of domestic ATM
ISOs and operators, recently applied and was accepted to become a member
of the PCI Security Standards Council.

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Apple Mac Users Get Billeo Payment Option

Alternative payment provider Billeo is now available for Apple Mac users.
Billeo is the first product for the Mac that goes beyond one-dimensional
password and filing tools to focus on a way to make
the everyday tasks of filling passwords, paying bills and making
purchases online quicker. The browser plug-in allows users to set up a
“one stop shop” transaction center that includes
bill reminders, password management, form filling, bill pay and shopping
directories, auto-save of receipts, search of receipts saved, and
transaction charts and reports. Billeo for the Mac is Firefox native.

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CounterPASS and WebPASS are Class A Approved

TSYS Acquiring Solutions has received
Class A approval for its “CounterPASS” and “WebPASS” terminals.
CounterPASS and WebPASS are the first in a series of payment
applications planned by TSYS as part of its n>gen initiative and made
possible by leveraging the power of Infonox technologies. As the payment
industry continues to evolve, TSYS is committed to delivering innovative
payment applications to further its mission to move any payment form,
anywhere and through any payment device. The “CounterPASS” web application uses a familiar browser
interface and intuitive icons to deliver more advanced functionality
than traditional POS terminal applications. It is ideal for retailers
and professional services payment environments. “WebPASS” provides virtual
merchants with a robust payment application to process and manage mail
order / telephone order (MOTO) and recurring payments efficiently and
securely using the Internet. New payment types can be quickly and easily
added to both applications, and they are simple to support with
automatic functionality and compliance updates.

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Consumer Confidence Rises But Wallets Stay Closed

The Discover U.S. Spending Monitor jumped nearly four points in March
to 79.5 as the economic outlook is brightening. The rise in economic
confidence among consumers appeared to have little effect on their
spending intentions, however. In March, there were considerably more
consumers who said they expect to spend less, 28%, than there were
expecting to spend more, 17%. This number is the exact opposite from a
year ago when 36% of consumers expected to spend more while only 16%
planned on spending less. While anticipated discretionary spending edged
up slightly in March, a majority of consumers still intend to spend less
on discretionary items, 54%, home improvements, 52%, and major
purchases, 51%. Heading into the spring and summer months, consumers are
considerably more cautious than they were last year when only 49%
reported in March 2008 their intent to spend less on discretionary
items. The Discover U.S. Spending Monitor is a monthly index of consumer
spending intentions and capacity that is based on interviews with a
random sample of 15,000 U.S. adults.

U.S. Spending Monitor
Mar 08: 85.1
Apr 08: 85.4
May 08: 86.8
Jun 08: 85.9
Jul 08: 85.2
Aug 08: 87.8
Sep 08: 86.5
Oct 08: 80.4
Nov 08: 79.7
Dec 08: 76.6
Jan 09: 77.8
Feb 09: 75.7
Mar 09: 79.5
Source: Discover

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PaySecure Hits a Hot Button with Consumers

A new survey has found that a majority of surveyed debit cardholders feel confident about using their PIN to make online purchases with “PaySecure,” a new Internet PIN debit payment method provided by Acculynk. According to the study, 80% of survey participants would use “PaySecure” when it is presented by a trusted merchant, 65% of survey participants would feel safer buying on the Internet with “PaySecure,” and 48% would buy more often on the Internet if they could pay with “PaySecure.” About 78% agreed that entering their PIN on the “PaySecure” PIN-pad was similar to and as simple as entering their PIN at the ATM or grocery store and 79% of participants would feel more secure using their debit card online with a PIN than using their debit card without a PIN. The study was commissioned by Acculynk and PULSE, to evaluate debit cardholder perceptions and attitudes about “PaySecure,” and included 500 U.S. debit card users who purchased online in the last year.

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Agent Bank Selection Criteria is Offered

Card industry analyst/investment banker R.K. Hammer has released a selection criteria that card programs can use to select better agent bank card issuing partners. 1. The RFP process must be all-inclusive, that is only one selection process by an outside third party – no additional process taking place simultaneously whereby one or more potential issuing partners is silently “exempt” from the RFP conditions. 2. Fourteen days is enough for any issuing bank to present their written expression of interest or letter of intent. 3. Present the current penetration level of cardholders compared to the universe of total customers in the Offering Memorandum. 4. Hold the issuing card provider to customer service level standards equal to or higher than presently enjoyed. 5. Any card department that “touches” your customers should have contractual service levels to be met, and reported monthly to you. 6. A form of risk/revenue sharing that was first popularized by affiliate and agent banks over 30 years ago is making a comeback: where the issuing bank and their agent bank programs allow some percentage of risk/reward sharing. 7. The extensiveness of monthly data reporting is another important factor which separates Best-in-Class from weaker performers. 8. Ask for two classifications of references: first, at least three agent banks of similar size to your opportunity; and second, three agent banks who have left their program, and the reasons why. Both types of references are needed to get a more complete picture of what doing business with the issuer will be like for you.

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100,000 G&D Patient Cards to be Distributed

Giesecke & Devrient, EXTENSION and TrustBearer Labs, has developed “EXTENSION Health Connect”
a secure smart card-based solution for health care providers. “EXTENSION® Health Connect” provides highly secure, fast and accurate
patient identification and information exchange. It securely links data,
patients, and healthcare providers together in order to reduce
administrative costs and improve the patient experience. EXTENSION®
Health Connect uses G&D patient health cards to securely identify
patients to hospital information systems. The card also holds a personal
health record for each patient that can be securely accessed.

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