CHASE PAYMENTECH & NBS

Chase Paymentech Solutions and e-payment solution provider NBS Payment
Solutions have released two new wireless chip-and-PIN enabled
payment devices for restaurants and mobile businesses. The payment terminals
are certified by Chase Paymentech to support the latest industry standards
including Interac, Visa and MasterCard, as well as new requirements for
chip-and PIN card acceptance in Canada. Chase Paymentech Solutions is a
global payments firm and the world’s largest merchant acquirer – transacting
all types of payments in 140 currencies. In 2007, the company processed
approximately 19.7 billion payment transactions, with more than $719 billion
in annual bank card and debit volume. NBS Payment Solutions provides
secure, high speed, electronic financial payment solutions to banks and
processors serving the transaction processing needs of North American
retailers.

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Ceridian Hires a New SVP/General Counsel

HR outsourcing provider Ceridian has named Albert J. Bart, previously
with Sherrard & Roe, as senior vice president and associate general
counsel. He will be responsible for
representing Ceridian in corporate, financing and other commercial
transactions.Bart was formerly a partner at the Nashville law firm
Sherrard & Roe, PLC, where he practiced in its corporate, securities,
and M&A groups. Previously, Bart was a partner in the Nashville firm of
Stokes, Bartholomew, Evan, and Petree, P.A. (now Adams and Reese LLP).
Bart holds a bachelor’s degree from Vanderbilt University and a
doctorate of jurisprudence, cum laude, from the University of Tennessee
College of Law. He was recognized by his peers in Nashville Business
Journal’s “Best of the Bar” for both 2007 and 2008 and has been named a
“Rising Star” by Mid-South Super Lawyers.

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Lifelock Names a New Chief Financial Exec

Identity protection service LifeLock has named John Feehan, previously
with Virgin Mobile, as CFO. As CFO with Virgin Mobile, Feehan was
instrumental in helping to set the
business and financial course that led the organization to its current
position in the market, with more than $1 billion in growth in less than
three years. Prior to his position with Virgin Mobile, Feehan served in
similar capacities with SAGE BioPharma, Faro Pharmaceuticals and
Stadtlander Drug Distribution Co. He began his career in Philadelphia at
Price Waterhouse after receiving his bachelor’s degree in accounting
from St. Joseph’s University.

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TOTAL UNIVERSAL VISA

Fuel retailer Total in partnership with Sofinco, a subsidiary of the Crédit
Agricole bank is launching a “Universal Visa” that offers users instant rebates of 3 to 9% on purchases at Total service
stations, up to a ceiling of EUR1,200 a year at all
Total branded service stations in France. The international Visa card can be used to withdraw cash and as a
deferred debit card, and holders will not have to change banks. In
addition to the standard Visa insurance coverage, they will also be
entitled to as well as free roadside
assistance for two weeks after any purchase exceeding EUR40. At the
express request of the holder, a credit option can be activated. The
annual fee for the card is EUR12.50 the first year (no fee for the first
six months) and EUR25 subsequently.

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Visa Projects Halloween Spending to Rise 18%

A recent survey commissioned by Visa reveal that 75% of Americans plan
to celebrate Halloween and that on average, plan to spend $ 47 on candy
and decorations. Consumers under the age of 45 will spend $17 more
than those 45 and older with
Urbanites intend on spending $51, compared to $43 by suburbanites and
$39 for rural dwellers.
Parents with children 18 or under living at home are planning on
spending an average of $57 on Halloween candy and decorations compared to
$40 for anyone without children living at home. To help consumers
budget for holidays or other financial events, Visa
offers parents, teachers and consumers of all ages free access to a
financial education program called Practical Money Skills for Life, an
award-winning, teacher-tested and
teacher-approved financial education program that is available in English,
Spanish and Chinese. The program contains three comprehensive sections,
complete with money management resources and lesson plans tailored for use
at home, in the classroom or at work.

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JULY DEBT

Credit card debt flattened in July, dipping slightly to A$44.4 billion, after hitting a record A$44.5 billion in the prior month. However, credit card volume rebounded strongly in July hitting A$19.0 billion, a 4% sequential gain. Year-on-year credit card debt growth has slowed to 8%, compared to 10% in June. Card volume is up 9% year-on-year. However, credit card volume has been slowing over the past year due to merchant surcharges imposed on consumer card transactions. Three months ago credit card volume was up 16% year-on-year. Credit card limits reached a new high at A$120.7 billion, marking the 23rd 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 13.7 million one-year ago.

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Expedited Payments Will Drive Bank Fees

A new research report projects that financial institutions must
incorporate expedited payments now or risk losing $5 billion in fees to
third party billers. Last year 38% of U.S. consumers went online and 32% used the phone to make rush payments, compared to 17% for in-person payments and 8% for overnight delivered payments. Javelin Strategy & Research found that nearly 32 million consumers are active users of
online banking bill payment in the U.S., and the volume of expedited
bill payments will reach as high as 400 million transactions by 2013.
The report also highlights the implications for mobile expedited
payments, citing that currently 45% of existing mobile bankers use
expedited payments at least once a month and certain age groups are
poised to drive mobile channel growth. Javelin notes that nearly one-third of all consumers have engaged in expedited payments
activity within the past year, a substantial portion of the consumer
population and a solid base from which to build transaction volume for service providers.

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Elan Acquires Columbia River Bank Portfolio

Elan Financial Services has acquired the credit card portfolio of OR-based Columbia River Bank with balances
totaling $7.0 million. Under the terms of its agreement with Elan, Columbia River Bank will
continue to sell and support credit card products and services and the
credit cards will continue to be issued under Columbia River Bank’s name to expand its
overall credit card customer base by offering a more competitive product
line to both existing and new markets. The enhanced product menu will
include both a cash-back rewards program and cards specifically designed
for the bank’s business clients. The agreement also includes strong
marketing support from Elan. The sale component of the transaction is expected to result in a 2008
pre-tax gain of approximately $770,000.

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FDC Deploys STAR Kiosks at the Nevada’s DMV

First Data has installed STAR Networks self-service kiosks at the Nevada Department of Motor Vehicles. Payment through the STAR Network is now featured on the DMV’s self-service kiosks as well as at DMV counters. There are a total of 26 kiosks, 19 kiosks in 13 DMV offices and seven at partnership locations for drivers who use their debit cards to pay registration fees, driver history records and other fees. DMV customers also can use their debit cards at the counter to pay since PIN pads have been added at more than 300 DMV payment windows across the state. The Nevada DMV and FDC’s STAR ATM and Debit Network
have been working together on a pilot program since 2006 when the
acceptance of debit card payments was introduced for Nevada DMV payments via the Internet.

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Economic Indicator Index Slips in August

The Conference Board reported that the “Composite Index of Leading
Economic Indicators” declined 50 basis points in August, following a 70
basis points decline in July and a 10 basis points increase in June. CB
says the good news on lower gas prices is more than offset by renewed,
even intensified, financial market turmoil. The economy right now is so
slow that it doesn’t have much cushion for shocks like the bailouts and
bankruptcies. The economy is struggling to find a bottom and eventually
begin to gather momentum for a recovery. Financial market turmoil
complicates the process, limiting access to credit. The indicators show
little reason to expect better economic conditions over the next few
months. There may not be any signs of improvement until well into the
second half of 2009. Until then, a very slow economy is the most
positive expectation.

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Merrill Lynch to Boost BofA Debit Business

Bank of America’s newly announced acquisition of Merrill Lynch will
further boost the bank’s debit card dominance in the USA. At mid-year
BofA’s debit card volume leaped nearly 15% to $54.3 billion.
New research from TowerGroup finds that the BofA/Merrill deal also gives
the bank a special edge in the high-net-worth card business. Merrill
Lynch’s card rewards program targets customers with at least $500,000 in
assets, raising the cardholder’s standing based on cumulative purchase
thresholds. TowerGroup says that in the face of this week’s move by
BofA, large card issuers with top-tier global private banking groups –
including Citi, JPMorgan Chase, and Wells Fargo – will need to reassess
their offerings to ensure relevance. But it is ultimately American
Express, which currently partners with Bank of America on its high-end
“Accolades” card, that is likely to feel the most pressure.

BOFA DEBIT CARD VOLUME
(purchase dollar volume)
2Q/07: $47.4 billion
3Q/07: $47.3 billion
4Q/07: $51.1 billion
1Q/08: $50.1 billion
2Q/08: $54.3 billion
Source: CardData (www.carddata.com)

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