Credit Card Issuers Face a Perfect Storm

As Target indicated yesterday it is tightening its credit card terms
and may become even more stringent if credit conditions keep
deteriorating. Mercator Advisory Group released a new report that says
the weak economy and turmoil in the financial industry are making it
harder for issuers to deal with the soaring costs of their reward
programs. Plus, issuers face consumer demands for more incentives while
merchants want more regulation on interchange fees. Mercator says the
credit card industry needs to think about rewards programs in a new way.
The report also noted that data analytics offer a new level of targeted
marketing and promotions but their full potential will not be realized
until combined with merchants’ involvement, likely in the format of a
merchant-funded discount network. Additionally, new innovative rewards
programs such as non-transactional rewards and programs combined with
non-traditional rewards components are emerging.

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RECYCLED GIFT CARDS

Gift card solution provider Givex has partnered with
Allcard to establish a recycling program for old gift cards.
Most gift cards are made of non-biodegradable plastics such as PVC and
end up in landfills when their value is depleted. Givex and Allcard will be
diverting these cards from the dumpster and grinding them down to
manufacture brand new gift cards that contain up to 50% recycled PVC.
Clients can show their support by arranging
for the recycling of their depleted cards and/or ordering cards made from
up to 50% recycled PVC.

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Oberthur Card Systems’ Q3 Sales Jump 29%

Los Angeles and Paris-based Oberthur Technologies reported third
quarter sales of $287.7 million, a 24% increase over 3Q/07. The Card
Systems business, which became a completely separate division at the
start of the quarter, posted a sharp 29% increase of $229.2 million in
sales, compared to the year-ago quarter, driven by the integration of
XPonCard. Payment card sales gained 18% in the third quarter to $46.8
million. Oberthur says the EMEA region and in particular Europe,
suffered the joint effect of a drop in volumes, especially in the UK, and in
the average sales price, with stability in the personalization services
segment activity. In the USA, the magnetic stripe card market is
depressed, affected by both the deterioration in economic conditions in
the banking sector and price pressure. For complete details on
Oberthur’s third quarter results visit CardData ([www.carddata.com](http://www.carddata.com)).

OBERTHUR REVENUE HISTORICAL
(at current exchange rates)
3Q/07: $231.7 million
4Q/07: $256.1 million
1Q/08: $235.4 million
2Q/08: $277.4 million
3Q/08: $287.7 million
Source: CardData (www.carddata.com)

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Wells Fargo Educates One Million Students

Wells Fargo & Company’s “Practical Money Skills for Life” has educated more than 1 million college
students over the last five years. Wells Fargo invites every new College Credit Card customer to take the
10-minute online Practical Money Skills for Life lessons at
wellsfargo.practicalmoneyskills.com and provides college student customers “The Student Guide to Good Credit brochure”;
“The Wells Fargo Student Credit Education website”; “The What You Need to Know brochure is included with every credit
card Welcome Kit to reinforce using credit responsibly.
Additionally, all new College Credit Card customers receive the first statement
regardless of whether or not the account has a balance. This provides an
opportunity to deliver two key messages via the Statement Ad Page:
Things to Know About Your Statement – highlighting major sections of their statement; and
Managing Your Credit – tips on how to start a good credit record and every monthly statement
includes a “College Credit Card Tip of the
Month” that is relevant for that time of year. Wells Fargo College Credit Card customers receive a Credit Education
Newsletter every quarter that features topics such as “Budgeting Basics”,
“Saving Money During the Holidays” and “Avoiding Fees”.

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U.S. Bank’s Payment Plus Poised for Growth

U.S. Bank’s B2B payment network “Access Online Payment Plus”, continues
to
fuel growth for U.S. Bank. Payment Plus automates procure-to-pay
processes by enabling
organizations to submit payment instructions electronically, in batches
or on-demand. The buyer
determines the timing of the disbursement while maintaining visibility
and control from
beginning to end. Clients find the increased control and visibility to
spend across all
departments to be a critical benefit as a result of implementing Payment
Plus.
During the first year Payment Plus was available, U.S. Bank saw B2B
payment growth of approximately 15%.

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TSYS OKINAWA CENTER

TSYS has signed three new clients and has added a new data center. The clients
include: AZ Card, OCS and Nagasaki Kenmin Shinyo Kumiai. The data center, which will
be called the TSYS Okinawa Data Center (TODC), is located in Nago City, Okinawa.
The TODC will be initially used as a data center for Japan, but may
eventually serve as an Asian hub within the TSYS global network, linking the
existing data centers in North America and Europe.

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ACCEL/Exchange & Acculynk Pilot PIN Debit

Fiserv’s ACCEL/Exchange Network and Acculynk have
partnered in a pilot program for processing of PIN debit
transactions initiated through the Acculynk “Internet PIN Debit”
service. Consumers enter their card number and associated information as they
normally would at the merchant checkout, and the PIN is entered on Acculynk’s patented graphical, scrambling
PIN-pad. The PIN is then encrypted and processed securely, along with the card information, across the ACCEL/Exchange
Network. Internet PIN Debit enables real-time, guaranteed payments to online merchants with the benefit of
comparatively lower acceptance costs, reduced fraud and
charge-backs, and 1-2 day settlement.

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NCR Q3 Revenues Rise 8% as Profits Soar

NCR reported third quarter revenue of $1.38 billion, an 8% increase
over 3Q/07 and net income of $82 million compared to $33 million in the
year-ago quarter. Revenues in the Asia-Pacific-Japan region increased by
14%, driven by sales in China and Japan. In the Americas region revenue
grew 9% from 3Q/07 primarily due to increased sales to financial
institutions. In the Europe-Middle East-Africa region,
revenues increased 4% year-over-year. During the quarter NCR racked up
more sales for its new “NCR SelfServ” ATM product, with over 8,000 units
ordered by more than 230 customers worldwide year-to-date. Earlier this
month, NCR introduced its latest POS workstation, the NCR “RealPOS
70XRT.” NCR also extended its self-service portfolio further into the
international healthcare market with the introduction of its
China-customized patient registration and payment solution, “NCR
MediKiosk”. NCR projects 2008 year-over-year revenue growth of 8% to 9%.
For more details on NCR’s third quarter results visit CardData
([www.carddata.com](http://www.carddata.com)).

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CyberSource Revenues Double+ in 3Q/08

CyberSource posted record third quarter revenue of $57.7 million, a
117% increase over 3Q/07. During the quarter, the Company processed 469
million billable transactions, a 63% increase over the same period the
previous year. The value of transactions processed was $27.5 billion, a
130% increase over 3Q/07. CyberSource’s European operations processed a
record 103.0 million transactions in the third quarter, an increase of
87% over the same period last year. During the quarter CyberSource
generated $20.1 million of global acquiring revenue, adding 1,100 new
acquiring customers, and now has a total of 4,000 global acquiring
customers. The Company also signed a record 27,000 new customers in the
quarter increasing the active customer base to about 245,000. For
complete details on CyberSource’s 3Q/08 performance visit CardData
([www.carddata.com](http://www.carddata.com)).

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PAYZONE/SCHLECKERPA GIFT CARD

Ingenico’s consolidated revenue for the third quarter rose 39% to 190 million euros, driven by the integration of Sagem Monetel. In Asia/Asia Pacific sales were up 7%, due to rising sales in China and by Fujian Landi. Northern Europe was up 57% driven by sales in Germany while Southern Europe gained 31% year-on-year. The EEMEA zone sales climbed 115% due to increased sales in Turkey, India, the Middle East, Africa and Eastern Europe. In North America sales grew by 8% as Canada reported a very good performance as the U.S. market continues to struggle with a more difficult economic climate. Third quarter sales in Latin America rose 33% despite a weak start. Ingenico also confirmed its yearly revenue growth objectives of between 7% and 10% pro forma at constant exchange rates. For complete details on Ingenico’s third quarter performance visit CardData (www.carddata.com).

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Ingenico’s 3Q/08 Revenue Leaps by 39%

Ingenico’s consolidated revenue for the third quarter rose 39% to $239
million, largely driven by the integration of Sagem Monetel. In
Asia/Asia Pacific sales were up 7%, due to rising sales in China and by
Fujian Landi. Northern Europe was up 57% driven by sales in Germany
while Southern Europe gained 31% year-on-year. The EMEA zone sales
climbed 115% due to increased sales in Turkey, India, the Middle East,
Africa and Eastern Europe. In North America sales grew by 8% as Canada
reported a very good performance as the U.S. market continues to
struggle with a more difficult economic climate. Third quarter sales in
Latin America rose 33% despite a weak start. Ingenico also confirmed its
yearly revenue growth objectives of between 7% and 10% pro forma at
constant exchange rates. For complete details on Ingenico’s third
quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

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NECTAR AWARD

Trillium Software’s client, Nectar Card has
been judged a runner-up in Data Strategy magazine’s 2008 award for ‘Best
Data Quality Initiative.’ In 2007, Nectar mailed over 10 million
collectors with new loyalty cards replacing ones up to five years old in the largest ‘recard’ mailings in Europe. For each
collector, a personalised card and later a pack was produced. These had
then to be matched together and mailed. In the intervening weeks however, there
were 300,000 suppressions on the grounds of data latency. Using the Trillium Software
System, Nectar identified these suppressions saving around £150k in production
and mailing costs. Harte-Hanks Trillium Software enables organisations to achieve Total
Data Quality by providing a full complement of technologies and services providing
global data profiling, data cleansing, enhancement, and data linking.

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