Alliance Data Systems Charge-Offs Moderate

Dallas-based Alliance Data Systems reports that total managed credit
losses in the Private Label Credit segment averaged 8.5% for the $4.3
billion portfolio in February, an decrease of 40 basis points from
January. The Company previously reported that delinquencies were in the
mid-6% range. Alliance Data also noted that the traditional lower Master
Trust to total managed loss spread no longer holds. Therefore, the
Company will provide a more relevant total managed loss rate each month
until the traditional relationship returns. Specifically, the Master
Trust tended to post loss rates 40-50 basis points below the Company’s
total managed loss rate. The loss rate for January averaged 9.3% in the
Master Trust, covering $3.4 billion in receivables, thus reversing its
historical relationship to the total managed file. For complete details
on Alliance Data Systems’ fourth quarter performance, visit CardData
(www.carddata.com).

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Granite Payment Alliance Offers Cause Marketing

GA-based merchant processor Granite Payment Alliance has launched a “Cause
Marketing” product designed to collect unused gift card balances.
This program allows community banks to support local charities or fund
raising organizations of their choice by raising funds without investing
any money. In 2007 gift card sales topped $100 billion of which $9
billion was left unspent. GPA gives community banks and their charities
the opportunity to collect the unused portion on those cards for a good
cause. GPA will provide the patented NBA-E collection program as a turnkey
solution, complete with marketing collateral, mailers, posters, tent
cards and statement inserts. A marketing representative will work with
the bank and the charities of choice to develop a targeted marketing
program that will allow them to maximize the collection effort.
Once the program is implemented, collection of the “partially used” gift
cards is accomplished through drop boxes in the branches, at the charity
sites or at local retailers who wish to participate. In addition GPA
co-ordinates with the bank to establish a landing web-page on the NBA-E
web-site, with their name, logo and their customized introduction that
will allow donors to make on-line donations in less than 5 minutes.

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Identity Theft Carries Big Cost to Consumers

According to the results of a Nationwide Insurance survey, nearly 50%
of respondents don’t have enough cash to fend off the effects of
identity theft. The new survey also found that 10% of identity theft
victims polled missed payments due to the crime. Of those victims, four
out of five say the theft caused serious repercussions – including lower
credit scores, utilities shut off, bankruptcy, vehicle repossession,
home foreclosure or even jail time. According to Nationwide’s survey,
identity theft victims tend to be Caucasian, female, ages 35-54,
college-educated, married, and employed full time. Additionally, people
who are separated or divorced, and those making $75,000 or more a year
are more likely to fall prey to identity theft than the general
population. This is the third in a continuing series of surveys
conducted to better understand identify theft and the impact on its
victims. A 2005 Nationwide survey showed the average amount of total
charges made using a victim’s identity was $3,968. While most victims
were not held responsible for fraudulent charges, 16% reported paying an
average of $6,440 to cover some or all of the thief’s purchases.

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U.S. Bank Introduces Two AeroMexico Visas

U.S. Bank has unveiled the “AeroMexico Visa” and “AeroMexico
Visa Signature”. Customers can earn “AeroMexico Club Premier Miles”
for all their purchases. Miles can be redeemed for travel from 16 U.S.
airports served by AeroMexico to more than 40 destinations in Mexico as
well as other popular international destinations, including Buenos
Aires, Madrid, Paris, Rome, Tokyo, Sao Paulo and Shanghai, in the
airline’s global flight network. Additionally, AeroMexico’s
participation in the SkyTeam global airline alliance facilitates travel
to hundreds of other destinations around the world. New “AeroMexico
Visa” cardholders can get on the fast track to award travel with up to
20,000 bonus miles (for “AeroMexico Visa Signature” cardholders) and a
“Complimentary Companion Ticket” upon enrollment as well as discounted
Web airfare purchases and double miles on AeroMexico ticket purchases
using the card.

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Franklin B&T Opts for DCS’ CardWizard

Instant card issuer Dynamic Card Solutions has installed
“CardWizard” software in KY-based Franklin Bank and Trust.
Franklin Bank and Trust allows new customers
who open a checking account, as well as existing customers who need a
replacement debit card, to simply walk into the branch and receive an
unembossed personalized card in a matter of minutes. The Visa debit
cards are printed and presented to the customer at the time of their
visit and can be immediately used when they leave the branch.
Franklin Bank and Trust offers a variety of images that cardholders can
select for their card background including special ‘local’ community
images. Once the background is selected, DCS’ CardWizard software
transfers all personalization data to the FCP 20/20 where the highly
personalized card is securely and immediately printed in brilliant,
high-definition color onto both sides of white blank card stock.

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Mobile Banking and Payments Report Released

Research and Markets has announced the addition of Berg Insight AB’s new report “Mobile
Banking and Payments” to their offering. The strategic research report provides business intelligence and expert commentary on which to
base your business decisions and offers answers the following questions: how will mobile payments evolve beyond premium SMS;
why are public transport organisations adopting mobile ticketing
technology; what is the current status for network independent WAP billing; what will be the future role for transactional networks and
credit cards in mobile payments; when will NFC allow integration of payment cards in mobile handsets; what are the business opportunities for mobile operators in
international money transfer; how can mobile technology be applied to extend the reach of
today’s online banks; what is the true potential for providing mobile financial
services to the unbanked population in emerging markets and who are the most important players to watch in the mobile banking
and payments ecosystem?

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Scotia Momentum Visa Card in Introduced

Scotiabank has introduced the “Scotia Momentum Visa,” offering a full 2% cash back on gas station, grocery store, drug store and recurring-payment purchases across Canada. The new “Scotia Momentum Visa” replaces the discontinued “Scotia Moneyback Visa” product. Other key features of the new card include: full cash back rewards, as opposed to a tiered system of rewards and two per cent cash back can be earned at any merchant classified by Visa as a gas station, a grocery store, a drug store, or as a recurring payment merchant. The new card takes its place in a credit card market where 45% of Canadians say they have not changed their spending habits in the last six months, 36% say they are spending more and 19% spending less, according to a Harris/Decima poll.

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TNB Card Services Signs the Gesa Credit Union

WA-based Gesa Credit Union has transferred its $15 million card portfolio to TNB.
Through the new processing agreement, Gesa plans to add a new consumer
credit card product that will include TNB’s “Rewards2U” . Gesa will also
add a student card to serve its younger members. The credit union will
leverage TNB’s portfolio consultants to assess the portfolio and realign
its pricing based on individual cardholder risk. On April 1, Gesa CU will roll out its new business member program,
including checking and savings accounts, lending, a debit card, and a
business credit card, to target companies operating in the Tri-Cities,
Walla Walla and Wenatchee. The credit union is also handing over the reins of its retail card
processing to TNB after having managed the program internally since its
inception. More than 8,600 card accounts will be converted to TNB’s
processing platform.

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PAGO REPORT

According to the “Pago Retail Report 2008”,
risks of non-payment are much lower for women than
for men. This is indicated by a lower chargeback ratio, which
describes the share of credit card transactions which had to be
charged back after the cardholder rejected the transaction. At roughly
0.10%, female consumers’ non-payment ratio for online purchases paid
for by credit card is only half that of male customers (0.19%). One
year before the opposite was true. This report is based on a sample of
7.5 million real-life purchase transactions
processed through the Pago platform.

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ATM ANTI-SKIM

ADT Security Services
is introducing to North American financial institutions its
“Anti-Skim ATM Security Solution” that helps prevent skimming attempts and
detects skimming devices on all major ATM makes and models. The ADT solution is installed inside
an ATM
near the card reader, making it invisible from the outside. The technology
helps prevent card-skimming attempts by interrupting the operation of the
illegal card reader. The solution also detects the presence of foreign
devices placed over or near an ATM card entry slot, without disrupting the
customer transaction or operation of most ATMs. For effective, layered ATM
security, the ADT solution can trigger a silent alarm for command center
response and can coordinate video surveillance of all skimming activities.

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INGENICO 2008

Ingenico reported that revenue increased by 7% in 2008 largely driven by emerging markets. All regions, except the U.S., reported pro-forma 2008 revenue growth of between 3% and 38%, with the strongest growth rate supported by EEMEAA (Eastern Europe, Middle East, Africa and South East Asia) and China/Asia Pacific which benefited from the contribution of Fujian Landi acquired in June 2008. Profit from ordinary activities amounted to 72.0 million euros in 2008, against 62.5 million euros for 2007. Profit from ordinary activities included price purchase allocation of 19.2 million euros (Planet, Sagem Monetel and Landi) in
2008, against 2.4 million euros in 2007 (Planet). The Company anticipates pro forma revenue to be at minimum stable in 2009
and which could grow up to 5%. Adjusted operating margin objective is expected to be between 12.5% and 13.5% in 2009. For complete details on Ingenico’s latest performance visit CardData (www.carddata.com).

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