AMEX INTL 2Q/08

American Express reports that gross dollar volume on its international cards rose 26% and its international cardbase expanded 17% during the second quarter, compared to the year ago quarter. International Card & Global Commercial Services reported second quarter net income of $115 million, down 2% from a year ago. International Card Services revenues net of interest expense increased 20% to $1.3 billion, reflecting higher cardholder spending and borrowing. Total expenses increased 26% including marketing, promotion, rewards and cardholders services expenses increased 38% reflecting significantly increased marketing and promotion expenses and higher volume related rewards costs. Human resources and other operating expenses increased 19% from year-ago levels due to increased employee levels and higher professional services costs. Provisions for losses rose to $242 million, from $211 million a year ago reflecting growth in the loan portfolio and business volumes. For complete details on American Express’ second quarter results, visit CardData (www.carddata.com).

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AmEx Re-Launches the Members Project

American Express has launched its “Members Project” online initiative,
inviting cardmembers to submit ideas for 5 separate projects for
American Express to fund with an allotted $2.5 million. The best
projects will be decided on and nominated by everyone who chooses to
participate and narrowed down by an advisory panel of experts. The top
project receive $1.5 million, the second place project will receive
$500,000, the third place project will receive $300,000, two additional
projects will receive $100,000 in funding and will all be selected based
on the degree to which it creates a positive impact. This is in
conjunction with American Express’ “Desire to Do Good” survey,
demonstrating 92% of Americans believe in the power of ideas to help
change the world, 87% of those aged 18- to 39 believe one person can
help change the world, 71% of people aged 55 or older believe one person
can help change the world and 80% have done something in the past year
to help make an impact, including 57% who have made donations, 56% who
have given to charity and the 49% who have volunteered.

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WINCOR NIXDORF

Wincor Nixdorf AG has affirmed growth for 2007/2008, consistent with its
expectations for the full fiscal year ending September 30, 2008. Despite
a difficult business climate, Wincor’s growth was driven mainly by
business in the international arena and the ever-present demand within
the banking segment. In the first nine months of the current fiscal
year, the organization increased its net sales by 8% to EUR1.738
million, EBITA grew 10% to EUR152 million and the EBITA margin rose by
0.1% to 8.7% while group sales in the third quarter alone rose by 7%
Y/Y, contributing EUR555 million to the gain. Wincor Nixdorf has
delivered over 250,000 ATMs with automatic-deposit capability to date,
15,000 intelligent-deposit/ recycling systems and currently holds a 50%
European market share(CFI 3/13/08).

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U.S. Check Volumes to Drop to 17.9B by 2009

A new survey has found that while rapid adoption of electronic
payments provide faster transactions, business-to-business payments are
keeping the practice of payment with paper checks alive. TowerGroup
reports B2B
transactions account for nearly 60% of the total U.S. check dollar value
and contribute to the reason average U.S. check values are increasing
faster than any other payment type, although the numbers of individual
checks written continue to decline. TowerGroup research suggests check
volumes will decline to 17.9 billion transactions by the end of 2009,
which shrunk from a 2003 46% share of total US payment volume to a 2006
share of 31%. These findings are in conjunction with online bill payment
having increased at an annual rate of 29.6% from 2005 to 2007, which
TowerGroup projects will continue to grow through 2012 at a compound
rate of 18.7%.

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Chicago Turns Guns Into Prepaid MasterCards

Chicago Mayor Richard M. Daley is promoting the city’s 4th Chicago
Alternative Policing Strategy (CAPS) “Gun Turn In Program” event, urging
citizens to exchange their guns, no questions asked, for a $100 prepaid
MasterCard. In addition, citizens can also exchange a BB, replica or air
gun in exchange for a $10 prepaid MasterCard. Since 2006, CAPS and the
Chicago Police have collected over 11,000 illegal guns through the
exchange program, 6,700 of which were collected last summer alone. The
event is to take place Saturday, July 26, at 25 locations across the
city from 10 a.m. to 4 p.m.

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HPY Teams with Arkansas Community Bankers

Heartland Payment Systems has partnered with the Arkansas Community
Bankers Association to provide member banks electronic payments
processing services such as credit/debit/prepaid/gift card processing,
payroll and check management services. With this development, Heartland
becomes ACB’s exclusive referral partner and will provide its “OneCard”
solutions to provide the community banks identification, staff
identification, access control, security, vending, print control,
recreation, event management, equipment rental, parking, voting and
activity verification solutions. The ACB is a trade association serving
148 Arkansas member community banks with $50 billion in total assets
while Heartland Payment Systems provides its services to over 250,000
businesses nationwide.

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Back-To-School 2008 Volume to Drop-Off

A new survey indicates this will not be a banner year for
back-to-school shopping. Nearly two-thirds of parents surveyed reported
that current economic conditions like rising gas and food prices and
talk of a recession will impact how much they spend on back-to-school
items this year. Capital One has conducted its eighth annual
back-to-school shopping survey of 1,260 parents that also shows 77% of
parents have not planned a back-to-school budget, 76% of parents have
not made a list of back-to-school items, 54% have not discussed the
difference between “needs” vs. “wants” with their child and 60% have not
discussed back-to-school finances at all with their child. Those who
plan to spend over $125 on back-to-school shopping dropped to 45% for
2008, compared to 52% in 2007, and 38% have discussed how much they
would spend on the supplies with their teens. Among the teens surveyed,
69% say all they know about managing money was learned from their
parents, 50% expressed an interest in learning more about managing
money, 76% want to learn about the basics of finance, 76% of teens said
they were interested in learning about financing big purchases, 70% are
interested in learning more about investments and 86% expect their
parents to join them on back-to-school shopping trips.

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Global Payments 2Q/08 Revenues Rise 23%

Global Payments reported that second quarter revenues grew 23% to
$343.8 million. GPN says that based on current performance, annual
revenue is predicted to rise $1.675 million this fiscal year. During the
second quarter Online Resources established a multi-year agreement with
GPN subsidiary DolEx to provide bill payment services. Also, GPN and
U.K.-based HSBC Bank created a joint venture to provide payment
processing services to merchants globally under the name HSBC Merchant
Services. During the quarter GPN signed agreements with nine casinos in
the U.S. and Canada to offer “PlayerCash @dvantage” credit and debit
card cash advance services, “VIP Preferred” check-cashing services, and
“ATM Cash @dvantage.” Additionally, GPN secured a five-year, $200
million term loan credit agreement with a syndicate of financial
institutions. Also, during the second quarter, NJ-based United Merchant
Services renewed its payment processing agreements with GPN. For more
details on Global Payments’ second quarter results visit CardData
([www.carddata.com](http://www.carddata.com)). (CF Library 6/18/08; 6/17/08; 6/26/08; 6/25/08;
6/16/08)

GLOBAL PAYMENTS REVENUES
2Q/07: $280.1mm
3Q/07: $311.0mm
4Q/07: $308.8mm
1Q/08: $310.6mm
2Q/08: $343.8mm
Source: CardData (www.carddata.com)

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GSA SmartPay Conference Tops 6,500 Attendees

The 10th Annual U.S. General Services Administration GSA
“SmartPay”Training Conference hosted 6,500 government charge card
program coordinators, billing/approving officials and other attendees on
July 22-24, 2008 to provide expert advice on GSA’s government charge
card program of the same name. The training conference is in response to
the newly generated contracts awarded GSA “SmartPay 2” for prepaid,
contactless cards and foreign currency cards to support federal
employees for improved data security. The cards implementing the
“SmartPay 2” platform include travel, fleet and integrated charge cards
which will be transitioned on November 30. Additional contracts awarded
GSA for implementation of the “SmartPay 2” platform include those to
Citibank of Sioux Falls, JPMorgan Chase of New York and U.S. Bancorp of
Minneapolis in June 2007 for a combined estimated value of $260 billion
over 10 years.

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INGENICO 2Q/08

Payment terminal manufacturer Ingenico reported second quarter sales of 186 million euros compared to 141 million euros for 2Q/07.
Sales in China were brisk with the acquisition of a 55% stake in Fujian Landi. The Australian market is expected to be weaker after the major effort of migration to EMV in 2007. The Group’s market share has increased following the merger with Sagem and sales have remained stable at a high level in a relatively mature market. In North America sales growth to the banking industry was sluggish, but the buoyant market in Canada made up for slower growth in the U.S. retail market. For complete details on Ingenico’s latest results visit CardData (www.carddata.com).

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