Heartland Launches Check Management System

Heartland Payment Systems and payment processor transmodus have teamed
to launch a Service Oriented Architecture (SOA) based check management
system.
SOA integrates high-volume-oriented electronic payment services into
vertical business applications and POS software packages
unifying front- and back-office functionalities into one platform. It
enables providers of business management software – including vertical
application providers, integrators, VARs and software providers with
high processing volumes to include check management services in
their existing application interface menus. This technology platform
integrates a complete bank-neutral check management solution from
remote deposit capture through the recovery of bounced checks.

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HYC EXEC

Hypercom has appointed Stuart Taylor to the position of VP, Global Marketing. Taylor is responsible for all aspects of the Company’s marketing activities, Hypercom’s Global Solutions business unit and global strategic relationships. Taylor brings to Hypercom more than 20 years of international marketing and business development experience in the electronic payment and ATM industries. For the past four years he has provided general management, business development, marketing and product strategy consulting services to a wide range of Fortune 500 companies and payment and security technology start-ups and has provided payment industry analysis to many Wall Street investment firms. Taylor served at VeriFone Inc. from 1996 to 2004 in leadership roles including Vice President and General Manager, Global Marketing; Director, Emerging Markets and Business Development; and Director, Product Management and Marketing. Taylor holds a Masters in Business Administration from Herriot-Watt University, Edinburgh Graduate School of Business.

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OCT DEBIT

Debit card EFT/POS volume remained strong in October growing at a per annum growth rate of 16%, compared to 15% one-year ago. During October, Australian consumers used debit cards for A$10.8 billion in transactions, the second highest in history. The peak took place in December 2007 when A$11.0 billion in transactions was recorded. Over the past five years debit card volume has grown 69%. During October, Australians used debit cards for A$8.8 billion in purchases with 134.6 million transactions. Total EFT/POS transactions were 153.8 million for October according to the Reserve Bank of Australia. There were 28.6 million debit card accounts in the country at the end of October, compared to 27.4 million one-year ago.

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OBERTHUR PLANTS

Oberthur Technologies is transferring its card manufacturing operation in Los Angeles to an expanded facility in Exton, Pennsylvania. The Los Angeles facility will cease card manufacturing by the end of March. However, Oberthur says it will use the facility in Los Angeles to increase its card personalization capabilities. The Los Angeles card manufacturing operation focused primarily on secure conventional payment cards. The Exton facility currently manufactures a full suite of secure conventional and microprocessor (smart card) payment and identification cards including contact payment cards in the Americas as well as contactless payment cards. The Exton facility, in southeast Pennsylvania, recently completed a $15 million expansion plan.

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HYPERCOM HRKS

Hypercom has unveiled the industry’s first standards-based remote key injection product that allows retailers to initiate on-site, in store payment terminal key injection at the POS. The new “HyperSafe Remote Key System” eliminates the need for off-site secure room key injections by incorporating “PKI” to securely distribute symmetric “3DES” keys. The system incorporates a Futurex “Excrypt KMS9000” key management server with specific functionality developed for Hypercom. The system is “X509,” “FIPS 140-2 Level 3” and “PCI DSS” compliant and meets “ANSI x9.24” and Visa “PIN Security Guidelines” for remote key management. Hypercom’s “HRKS” is available now with the “Optimum L4150” and “L4250” multi-lane terminals as well as later versions of the “Optimum L4100.”

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GPN 4Q/08

Atlanta-based Global Payments reports that revenues for the quarter ending November 30th were up 30%, compared to the year ago quarter. The Company noted that fourth calendar quarter revenues were affected by unfavorable foreign currency exchange rates, but have improved significantly in the current quarter to warrant a more optimistic revenue guidance. For the second fiscal quarter ending November 30th GPN posted revenues of $401.1 million, compared to $405.8 million in the prior quarter and $308.8 million in the year ago quarter. The recent U.K. acquisition and strong results in its North America segment drove the revenue increase. During the quarter GPN announced an agreement to acquire ZAO United Card Service and Global Payments Asia-Pacific, its JV with HSBC, completed an agreement to expand into the Philippines. GPN also signed nine new U.S. casinos in October and in November promoted Joseph Hyde to President/International and David Mangum, formerly with CheckFree, to EVP/CFO. The Company updated its annual revenue guidance to be in the range of $1,550 million to $1,580 million, or 22% to 24% over fiscal 2008. For complete details on GPN’s latest performance visit CardData (www.carddata.com). (CF Library 10/02/08; 11/04/08)

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PLANET PAYMENT Q4

Payment processor Planet Payment has released an update on its trading
for the fourth quarter and year ended 31 December 2008. Revenue for the full year 2008 increased
by more than 90% to over $35m compared to $18m for 2007. This growth was led by new merchant deployments
with processors and banking customers in the United States, Greater China, Malaysia, and
Taiwan and the acquisition of the iPAY business, which facilitates payment for Internet
transactions. Revenue from core multi-currency processing services increased by more than 60%
to over $23m versus $14m for 2007. Total revenue for the fourth quarter 2008
increased by more than 57% to approximately $11m versus $7m for 2007 and by more than 8.5% compared to the
third quarter 2008. Revenue from core multi-currency processing services for the fourth
quarter 2008 increased by approximately 44% to over $7m from $5m in 2007 and by more than 23% compared
to the third quarter 2008. The Company effected a number of cost saving measures in the fourth
quarter, to align the Company’s cash operating expenses with its current and near-term
projected revenue, with the objective of accelerating the achievement of positive EBITDA and
profitability in 2009. These measures are projected to produce over $3m in 2009 cost savings compared
to the annualized cash operating expenses of $20.5 million prior to this initiative, a 17%
reduction. On 19 November 2008, Planet Payment’s common stock began trading in the
US on the OTCQX market, operated by Pink OTC Markets Inc.

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FNDS3000 Names a New Chairman

Raymond Goldsmith has joined transaction processor FNDS3000 as Chairman
of the Board of
Directors. Goldsmith will assist Chief
Executive Officer, John Hancock and the management team on corporate
positioning strategies to take advantage of numerous avenues to grow the
company and increase shareholder value. Goldsmith is Chairman and CEO of
Sherington Holdings LLC which is a
private investment company. In October and December 2008, Sherington
Holdings LLC provided
total financing of $1 million in the form of a secured convertible note.

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New Rules to Clip $11B in Card Profits

A new analysis projects that the new credit card industry rules that
take effect in July, 2010 will lower card issuer industry profit by $5.5
billion in 2010 and by more than $11 billion in 2011 and every year
thereafter. Card industry analyst R.K. Hammer says that fee income is
expected to rise as a result (as issuers seek to lower risk and raise
penalty fees), as well as a curtailment of new credit to those with less
than good credit history. Hammer notes that in the entire history of the
prime credit card industry, fee income has never exceeded interest
income. However, that will be changing in the coming years as
downward regulatory pressure on interest charges and a rising fee income
graph will ultimately intersect. The only way Hammer sees this being
mitigated at all is for a card issuer to “outrun” the problem, by
growing receivables and earnings at a faster rate than the declining
interest earned due to the new rules.

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NOV INDEX

The Conference Board leading economic index for Japan decreased 2.6% and The Conference Board
Coincident Economic Index decreased 0.9% in November.
Two of the ten components that make up the leading
economic index increased in November. The positive contributors to the
index include real money supply and interest rate spread. The negative
contributors include the index of overtime worked, the six-month growth
rate of labor productivity, real operating profits*, the Tankan business
conditions survey, the (inverted) business failures*, dwelling units
started, stock prices, and the new orders for machinery and construction
component. The leading economic index registered another sharp decline in
November, following an equally large decline in October. In November,
most of the leading indicators continued their downward trend. With
November’s large decline, the six-month growth rate for the leading
index fell to -10.4%, about a -19.8% annual rate from May
to November 2008, the weakest in more than 33 years. Moreover, during
the last six months, the weaknesses among the leading indicators
continued to be very widespread. The rate of decline in the leading economic index has accelerated
in recent months, and the coincident economic index has also been
falling since late 2007. In addition, the weaknesses in both composite
indexes have been very widespread during this period. The leading economic index now stands at 89.4 (2004=100)

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