ABnote to Distribute LAKS Smart PayPass Watch

Germany’s LAKS has selected NJ-based ABnote to exclusively distribute
its “Smart Transaction Watch” in the U.S. and Canada. Introduced in
2006, the payment device has a conforming contactless payment reader
embedded within the wristwatch. It is the first “MasterCard PayPass”
approved watch. The watch face can be customized with a variety of
colors and graphics providing users with a highly personalized and
unique product. The customization provides unlimited marketing
opportunities. The watch features a slide-in system for a SIM sized
Smart Card supplied by ABnote. This system makes it possible to handle
the watch and the smart card separately. Therefore, multi applications
can be utilized so that financial applications can be alongside others
such as mass transit or access control. The world’s first watch equipped
with MasterCard’s “PayPass” was created in collaboration with Taiwan’s
Chinatrust Commercial Bank, On Track Innovations and LAKS in 2006.
Europe’s first watch equipped with “MasterCard PayPass” contactless
technology was launched in 2007 by Garanti Bank. (CF International
Library 06/06/06; 05/07/07)

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Barclaycard Creates 200 Jobs in New York

Barclaycard is opening a new administrative office in New York that will
add 200 jobs with a focus on credit risk, corporate finance
and market analytics functions. The new office, located in Long Island
City, will serve Barclaycard’s operations around the globe and
a diverse range of credit card businesses in, Europe, Africa and Asia
and will support Barclaycard’s operations globally
including its U.S. business headquartered in Wilmington, Delaware.

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GLOBALPLATFORM BOARD

Smart card advisory GlobalPlatform has announced its Board of Directors
for FY 2008-2009. Sebastien Tormos, VP Marketing at Datacard Group is
the new Chairman and will be supported by Marc Kekicheff,
Senior Business Leader of Product Technologies at Visa Inc., who will be
GlobalPlatform’s Vice Chair for a fourth term and Yves Moulart â“
Director of Cards, Technology and Architecture within
STMicroelectronics’ Smart Card Products, Software Engineering division
as Secretary/Treasurer. Five new Board members were selected that
include Bob Beer, Business Consultant – Aconite; Jean-Loup Depinay,
Program Manager R&D Funding ⓠOberthur Card Systems; Dominic Fedronic,
Chief Technology Officer – ActivIdentity; Eikazu Niwano, Senior Research
Engineer, Service Integration LaboratoriesⓠNTT Corporation and Uwe
Wittig, Group Vice President, Cards & Services, Division Payment –
Giesecke & Devrient. One of the first duties of the new Board of
Directors was to reappoint Shoji Taniguchi, Chief Marketing Specialist
at Toshiba Corporation, to his position as Strategic Director to
maintain responsibility for
positioning GlobalPlatform in key Japanese and Asian government initiatives.

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High Value Rewards Drive Holiday Sales

A recent survey reveals that half of shoppers this holiday season plan
to use a credit or debit card that offers additional shopping incentives
such as bonus points, miles, discounts or cash back.
The study by Kelton Research on behalf of Vesdia also found that
consumers are increasingly aware of the special offers wherein they earn
double to as much as 10 times the standard reward program earnings rate
by shopping at participating merchants. In a sample of more than 10
million consumers from January through September 2008, consumers
enrolled in reward card programs with a merchant network increased
spending by 37% compared to the same time period in 2007, Vesdia says.

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Intersections Q3 Net Income Soars by 59%

Identity theft protection service provider Intersections reported third quarter revenue of $93.4 million, an increase of 31%% compared to 3Q/07. Net income rose 59% year-on-year for the third quarter to $2.7 million. However, the Company noted that enrollments have fallen during the third and fourth quarters compared to the first half of the year. Total subscribers decreased to approximately 4.9 million at the end of the third quarter, compared to approximately
5.3 million subscribers at year-end 2007, as a result of the recent loss of the Discover wholesale subscriber base. Subscription revenue, net of marketing and commissions associated with subscription revenue, for the third quarter was $49.2 million, compared to $39.4 million for the third quarter of 2007 and $51.0 million for the second quarter of 2008. During the third quarter Intersections acquired a minority ownership in Guard ID, a privately held company in California, for approximately $3.3 million. For complete details on Intersection’s third quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

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ORCC’s Virtual Collection Agent Cited

Online Resources’ “Virtual Collection Agent” web-based collections
service was named the “Most Influential Collection Product” for 2008 by
Collection Advisor magazine.
“The Virtual Collection Agent” provides card issuers, banks and
receivables management companies a fully compliant, 24×7 online customer
service and collection environment that improves recovery of outstanding
debt while maintaining a positive consumer experience. Online Resources’
clients have reduced their charge-offs by more than 10%. Today, 6
of the top 10 U.S. credit card issuers and some of the nation’s largest
collection agencies use the Virtual Collection Agent. Collection Advisor
magazine is a national, bimonthly publication addressing collection
management and technology in the profession.

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GiveCard Signs Nonprofit Partnerships

Social enterprise Giving Tree has signed Americorps Alums, CancerCare,
Central Dallas Ministries and EarthCorps to offer a
co-branded version of the “Giving Tree’s GiveCard”. The Visa branded
“GiveCard” issued by MetaBank , enables the card recipient to
donate 10% of the card’s value to their favorite charity from Giving
Tree’s database of over 1 million nonprofits and then spend the
remaining 90% of the card’s value like cash wherever VISA debit cards
are accepted.

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Portfolio Recovery Associates Up 26% in Q3

Collection specialist Portfolio Recovery Associates reported third quarter net income of $11.5 million, about 2% off last year’s third quarter. However, total revenues in the third quarter rose 26% to a record $68.6 million. Cash collections rose 27% to $83.0 million in the third quarter. The Company purchased $857 million of face-value debt during the third quarter for $52.3 million. This debt was acquired in 56
portfolios from 19 different sellers. On July 1st, PRAA completed its acquisition of MuniService, a provider of revenue administration to local governments, based in Fresno, California. On August 1st, the Company completed and announced its acquisition of the assets of Broussard Partners and Associates, a provider of audit services to local governments, based in Houston, Texas. For complete details on Portfolio Recovery Associates’ third quarter performance visit CardData ([www.carddata.com](http://www.carddata.com))

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ONBOARD POWERSELLER 2

Airline POS system provider GuestLogix has released the “OnBoard
PowerSeller 2” mobile payment handheld. The new GuestLogix OnBoard
PowerSeller 2 eliminates the need for
other cumbersome payment devices on-board. It also allows flight
attendants to quickly process credit and debit card and other forms of
payment for refreshments, meals, in-flight entertainment, on-board
shopping and duty-free goods and will capture an electronic signature,
scan product barcodes, process payment, or print a receipt or a ticket
at the seat. The GuestLogix OnBoard PowerSeller(TM) 2 is manufactured
by GuestLogix’s hardware partner ITWell in South Korea. The EMV Level 2
secure Chip and PIN functionality was provided by smart card technology
and software provider Smart Technology Solutions in the United Kingdom.

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Canadian Market to Move to Card Duality

Competition in Canada is set to ramp up following a ruling by the
Competition Bureau in favor of duality for credit card issuing and
acquiring. Previously, the Competition Bureau had favored non-duality,
which did not allow financial institutions to issue or acquire competing
card brands. MasterCard applauded the finding as Canada is largely Visa
country. MasterCard says it has experienced the highest increase in
purchase volume, card growth, and number of transactions in Canada, in a
field that includes Interac, American Express, and Visa over the past
three years. MasterCard further notes that a dual market will allow it
to build on this trend by providing greater opportunities through access
to new issuers and cardholders. Among the five big Canadian banks Bank
of Montreal is the only one issuing MasterCard, with CIBC, TD,
Scotiabank and Royal Bank all in the Visa camp. National Bank of Canada
issues MasterCard and Laurentian Bank deals with Visa.

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SEPT DEBT

Credit card debt growth remained flat again in September, rising a mere A$55 million to A$44.6 billion. However, credit card volume soared in September to A$19.2 billion, 18.5% higher than September 2007 and up 7.9% sequentially. Year-on-year credit card debt growth has slowed to 8.5%, compared to 10% in June. Credit card volume has been stagnant for prior months reflecting the global economic depression. However, the surge in September was surprising. Three months ago credit card volume was up 16% year-on-year. Credit card limits reached a new high at A$121.9 billion, marking the 25th consecutive month of A$100+ billion. According to the Reserve Bank of Australia there are currently 14.2 million credit card and charge card accounts in Australia, compared to 13.8 million one-year ago.

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Winn-Dixie Offers nFinanSe Discover Card

Prepaid card provider nFinanSe’s “Discover Network Reloadable Prepaid
Card” is now available at all 521 Winn-Dixie grocery stores. For $5.95,
consumers can purchase the Reloadable Card and load funds with no credit
check or bank account needed. The Discover Network branded card can be
used to make purchases at millions of merchant locations nationwide –
including online and over the telephone and to access cash at ATMs. In
addition, one of the “cool
tools” available with an nFinanSe Card is the ability to receive an
email or text message with purchase and balance information after each
purchase.

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