Credit Crunch Drives VeriFone’s Q3 Loss

VeriFone’s final report for the quarter ended October 31st
shows net revenues of $244.7 million, about 2.8% above the year ago level. However, the payment terminal manufacturer posted a $362.5 million net loss, compared to net income of $18.9 million for 3Q/07.
The Company says new store openings in North America are down significantly and many sales organizations are experiencing difficulties obtaining sources of credit. VeriFone says its international business increased 20% while net revenues from its North America business decreased 16%. The Company previously noted that since mid-September it has experienced higher-than-expected foreign exchange losses, volatility in exchange rates resulting in product costs, adversely moving faster than could be reflected in local-currency pricing. During the third quarter VeriFone released the “Vx 700” electronic payments module for kiosks, vending machines, ticketing devices and traditional cash based systems; launched a program to secure the implementation of the “PCI SSC Payment Application Data Security Standard”; appointed Robert Dykes, previously with NebuAD, as SVP and CFO; and was awarded a multi-million dollar contract by Cabcharge Australia to deploy 20,000 “Vx 810” systems for contactless payment acceptance in taxis across the entire Cabcharge fleet. The Company also filed amended and restated quarterly reports for the last two years. For complete details on VeriFone’s latest performance visit CardData ([www.carddata.com](http://www.carddata.com)). (CF Library 8/15/08; 8/20/08; 9/4/08: 10/01/08; 11/03/08; 11/21/08)

REVENUE HISTORICAL
3Q/05: $130.5 million
4Q/05: $134.6 million
1Q/06: $142.2 million
2Q/06: $147.6 million
3Q/06: $156.6 million
4Q/06: $216.6 million
1Q/07: $217.2 million
2Q/07: $231.7 million
3Q/07: $237.9 million
4Q/07: $216.4 million
1Q/08: $185.5 million
2Q/08: $258.7 million
3Q/08: $244.7 million
Source: CardData (www.carddata.com)

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SNPY

Sino Payments has received clearance from the National Association of Securities Dealers to trade
on the Over the Counter Bulletin Board under the trading symbol SNPY.
Sino Payments is an Asian-based credit and debit card processing
merchant services company, which has developed an IP
processing network to provide credit and debit card clearing services to
merchants and financial institutions in China and regionally in Asia.
The primary focus of future development efforts will be the rapidly
growing Chinese credit and debit card market. Sino
Payments Global Payment Processing Platform was built and designed with
large Asian multinational retailers in mind so as to deploy the same IP
transaction processing capability for all stores spread out throughout
the Asia Pacific region.

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FI’s Debt Manager 7 Targets Delinquencies

Fair Isaac has released the first available product of the Fair Isaac “Decision Management Suite.” “Debt Manager 7” enables resource-constrained card issuers and banks to manage a greater number of delinquent customers without the need for additional collections staff. The solution incorporates Fair Isaac “Collection Scores,” allowing collectors to prioritize delinquent customers based on risk, so collection time and resources can be allocated toward the customers that are most likely to respond. It also empowers representatives to arrange workout plans with delinquent customers in real time, on the first telephone conversation. Fair Isaac says creditors can generally expect a 15% to 20% improvement in collection strategy effectiveness compared to a subjective segmentation of accounts.

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MASTERCARD IPS

MasterCard Worldwide announced that Swiss Bankers Prepaid Services will
take advantage of the global prepaid transaction processing capabilities of “MasterCard
Integrated Processing Solutions” (IPS). The first global prepaid agreement for IPS continues the advances
MasterCard has made in the prepaid sector. “MasterCard IPS” integrates
market-proven software into the MasterCard Worldwide network, enabling
financial institutions to expand their portfolios across business
channels with minimal infrastructure investment and quick and efficient
administration. MasterCard IPS this year was named to the “InfoWorld 100,” an honor
given by InfoWorld’s editorial staff honoring the 100 companies that
make the best use of technology to enhance their business.

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Interceptas Adds Merchant Alarm for CNP TX

Accertify’s “Interceptas” platform is adding Affinion Security Center’s “Merchant Alarm” to give merchants additional firepower to reduce fraud in “card-not-present” transactions. “Merchant Alarm” patrols the Internet to find compromised credit card and debit card data. It generally detects compromised card data well before cardholders know their data has even been taken and then provides alerts to credit card merchants in real time. IL-based Accertify is the first company to focus on developing fraud prevention tools and strategies from the perspective of merchants that accept “CNP” transactions. That focus led to the development of “Interceptas” which applies state of the art automation to every step in the merchant’s process of managing credit card fraud exposure. Affinion Security Center, a division of CT-based Affinion Group, is part of the steering committee of the Identity Theft Prevention and Identity Management Standards Panel and is a member of the Staples Security Council.

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ICT200

Ingenico’s “ICT200 CounterTop” payment terminal range has been PCI-PED 2.0 approved. The PCI-PED 2.0 certification was achieved by Ingenico’s “ICT200” range
following tests at Germany’s T-Systems ITC Security laboratory, one of the foremost testing
facilities recognised by the Payment Card Industry Security Standards Council (PCI SSC). And
the PCI-PED 2.0 standards set out the latest requirements for physical and logical
security for chip and PIN card transaction devices. The new “ICT200” series provides a
scaleable and high-performance platform to support today and tomorrow security applications, including
SSL double authentication and DDA, with no impact on transaction speed or reliability.

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Parcxmart Card Spreads in Connecticu

Parcxmart Technologies will launch the “Parcxmart Card” for cashless
parking
and merchant loyalty programs in West Hartford, CT.
The “Parcxmart Card” provides payment software for on-street parking,
debits at local merchant businesses, and a rewards calculator that can
carry up to ten separate merchant rewards programs per card. Merchants
participating in the network earn commissions when they sell or reload
value onto the cards. These cards can be reloaded with cash, debit, or
credit up to $500 in value. Parcxmart will also provide a West Hartford
card website with program information, local merchant directories and a
merchant coupon hosting service.

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CTOPAY & PCI DSS

Online payment provider Ctopay is now compliant with the Payment Card Industry Data Security Standard (PCI
DSS). To validate compliance with the PCI DSS, Ctopay had to demonstrate
compliance with 12 stringent security requirements by thoroughly
reviewing its IT environment and information security policies and
procedures. Trustwave, a global provider of on-demand data security and
payment card industry compliance management solutions to businesses and
organizations, performed the PCI DSS compliance
validation. To maintain their compliance, Ctopay has enrolled in
Trustwave’s on-demand compliance management solution, TrustKeeper to
have the necessary tools to support on-going compliance such as
quarterly network vulnerability scans. Ctopay provides professional online credit card and debit card payment service
with its connection to the banks in China, Japan, Korea, Europe, US and
Africa.

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More Americans Create a Delinquency Budget

A new survey of more than 1,000 nationally representative U.S. households reveals that Americans are dipping into their savings to pay for necessary living expenses and are creating a delinquency budget. VA-based Online Resources found that one in three of the households that are late paying their credit card bill continue to use their card, thereby increasing their outstanding balance. Though the number of households with delinquent mortgage payments are up 67% over last year, this bill remains at the top of the stack. Other findings: insurance premiums have the lowest delinquency rate at 2%; households with overdue loan payments have increased 58% this year; delinquent utility payments are up 18% since last year; emergency medical care bills are most delinquent with 34% of respondents late; and more Americans say they can do without phone service, and 26% of households put this bill on the bottom of the stack. Additionally, survey results show that one in three households was contacted by a collector in the past year. Preference for resolving delinquencies online has increased by 18% over the past year, but only one percent of delinquent households were contacted via the Internet.

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VISA MOBILE

Chinatrust Commercial Bank and China Everbright Bank has launched a new service wherein Visa cardholders in Taiwan and mainland China can use a mobile phone based one-time password to authenticate themselves when they use their Visa card for purchases over the Internet. The new enhanced “Verified by Visa” service via a mobile phone is a global first for Visa. A recent Visa survey in Asia Pacific concluded that almost 80% of Internet users conducted an online transaction and spent an average of US$3,000 each in the past 12 months.
Chinatrust Commercial Bank says it first introduced “Verified by Visa” in 2004 and has signed-up more than 400,000 of its cardholders for the service. China Everbright introduced “Verified by Visa” in December 2007.

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Mutual Merchant Captures Church Volume

Mutual Merchant Services has
completed the conversion of mobile market credit card processing
services for Christian organizations and businesses nationwide via its
previously announced affiliation with Zion Systems, LTD. Mutual’s entry
into this sector is expected to add over $20 million annually in
additional processing volume. Mutual Merchant Services is a single source provider of financial
services, offering a variety of products and services to merchants,
financial institutions, and banks. Services offered include credit and
debit card acceptance, check guarantee, check verification, check
conversion, check 21, advance funding, ACH check processing, prepaid and
bill pay services.

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CLEAR2PAY FUNDING

E-payment provider Clear2Pay has secured EUR6 million in funding for
working capital
from AGF, IRIS Capital, Big Bang Ventures, GIMV, Trust Capital and
management.
Clear2Pay’s payment solutions offer organisations easy,
branded ways for their customers to pay online which include complex
trade-supporting business-to-business environments,
through e-commerce applications, to retail payments and remittance
services amd the functions include payments origination, reporting,
linkage with back-office processing systems, clearing,
netting and settlement. Clear2Pay clients include global and major
regional financial institutions such as ING, VISA, MasterCard, ABN AMRO,
Nordea, PBS, United Arab Bank, Banco Santander, ANZ and Commonwealth Bank.

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