CashLINQ Group Renews its GPN Contract

Global Payments electronic transaction processing services and The
CashLINQ Group merchant services provider have renewed their payment
processing services agreements. The terms of the agreements stipulate
Global Payments will continue to provide The CashLINQ Group market base
with its line of payment card authorization, settlement services and
customized merchant support services. The WA-based CashLINQ Group
provides payment processing to large and small non-profit organizations
in the United States and Canada while Global Payments Inc provides
electronic transaction processing services around the world to
organizations in a range of sectors.

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Navy Federal CU Joins NACHA E-Pay

VA-based Navy Federal Credit Union has joined NACHA—The Electronic
Payments Association. The Navy FCU is the world’s largest credit union
with more than 3 million members and $35 billion in assets and recently
announced it has expanded its membership base to include all branches of
the armed forces. NACHA is a not-for-profit association that
oversees the Automated Clearing House (ACH) Network, one of the largest
electronic payment networks in the world. More than 18 billion ACH
payments were exchanged in 2007. NACHA is responsible for the
administration, development, and enforcement of
the NACHA Operating Rules and sound risk management practices for the
ACH Network and represents more than 11,000 financial
institutions through direct membership and 19 regional payments
associations.

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Matica Americas Begins Operations the USA

Italian-based card personalizer Matica has
announced the opening of MN-based Matica Americas. Matica designs,
manufactures and markets card personalization systems and card mailing
systems for customers in a range of industries and offers a broad
range of complementary products, together with industry expertise,
resulting in the ability to distribute around the world one of the most
complete ranges of card personalization systems. The systems are used in
a wide range of plastic card personalization and metal plate embossing
markets such as financial, retail, service bureau, healthcare,
membership, insurance, corporate and government identity markets and
more. Steve Blake will serve as the President and CEO of Matica Americas.

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BofA Card Profits Fall; Charge-Offs Rise

Bank of America reported that its Card Services division net revenue
fell 55% to $402 million as credit costs rose by $1.21 billion.
Managed U.S. consumer and business credit card loans at the end of the
second quarter rose slightly to $163.3 billion, compared to $161.4
billion in 1Q/08 and $148.7 billion for 2Q/07. Second quarter U.S. Card
Services charge-offs rose sharply to 6.65%, compared to 5.67% in the
prior quarter and 5.21% one-year ago. However, the managed 30+ day
delinquency declined to 5.88%, compared to 5.93% in the first quarter
and 5.29% for 2Q/07. Purchase volume for U.S. consumer and business cards of $61.0 billion for 2Q/08, compared to $56.8 billion for 1Q/08 and $61.3 for 2Q/07. BofA noted that debit card purchase volume
increased 15% during the second quarter. BofA also reported that mobile
banking reached more than one million active customers in Q2.
Additionally, Card Services opened 2,212,000 accounts during the
quarter, compared to 2,042,000 accounts in the prior quarter. For
complete details on Bank of America’s 2Q/08 performance, visit CardData
([www.carddata.com](http://www.carddata.com)).

BOFA EOP CARD LOAN HISTORICAL
(U.S Consumer & Business Credit Cards)
2Q/07: $148.7 billion
3Q/07: $153.0 billion
4Q/07: $161.4 billion
1Q/08: $161.4 billion
2Q/08: $163.3 billion
Source: CardData (www.carddata.com)

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VDC Acquires an ATM Display Concern

Video Display Corporation has acquired WI-based ATM monitor supplier
Display Concepts. The Display Concepts product line features the
“SunView 2000” line of sunlight-viewable displays originally designed and
manufactured by Palomar Displays, Inc. These unique high-brightness LCD
monitors replace standard-brightness LCDs and older CRT monitors in ATMs
from Diebold, NCR, Fujitsu and Wincor-Nixdorf. Unlike regular displays,
which “wash out” in bright sunlight, Display Concepts displays provide
bright, full-color images in direct sunlight. The displays are brighter,
sharper and longer-lasting than the original CRT technology.VDC will
retain the Display Concepts brand and its existing sales and support
office in Wisconsin, with product design and production being
incorporated into its Z-AXIS’ manufacturing center in Phelps, NY.

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VDC to Help Expand Affinion Direct Response

Affinion Direct Response has signed multi-year agreements with Venture Development Center data service management for the development of its distribution channels and Information Services products. VDC will provide to the company sourcing of new partners, the creation of analytical products, and the identification of new vertical markets for ADRG, which provides businesses marketing services such as marketing strategy consulting, creative development, database analysis and predictive modeling. ADRG global affinity marketer executes over 15,000 campaign versions annually while Venture Development Center (VDC) is a focused practice to assist companies in creating, developing and commercializing Information Services properties.

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Shariah Compliant Credit Cards to Soar

Global wealth redistribution, electronic commerce, and population
development are driving the requirement for a credit card
model that serves the Islamic population. A new study predicts that the
number of credit cards that fit the Islamic banking model will soar from
its current base of less 1 million accounts to as many as 6 million
accounts by 2012. According to the new TowerGroup report, Islamic credit
cards are similar to traditional cards as payment instruments, but as
lending instruments they must not violate “Shariah” – the written and
interpreted code of Islam, which among other tenets rejects levying
interest earned on debt, prohibits speculation, and excludes certain
activities. Therefore, Islamic credit cards require a pricing
alternative to interest and require scrutiny of transactions to
ensure purchases are not prohibited. Three types of credit card issuers
now operate in the Islamic card space: major global banks that set up
separate Islamic banking companies; traditional banks converting to the
Islamic model; and Islamic startups.

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New PIN Pay Steering Product is Introduced

Card processing solution provider Merchant Warehouse has introduced
“BINsmart Interchange Manager” to help small and mid-sized merchants
reduce their overall payment processing costs. “BINsmart helps
merchants process transactions at the lowest possible
cost by automatically identifying the card type being used in the
transaction, and prompting debit card users to enter their PIN. This
sophisticated, yet simple solution evades interchange rates and fees by
opting for PIN-debit transactions over credit whenever possible.
The “BINsmart Interchange Manager” also detects corporate card
transactions, making it simpler for merchants who need to submit tax
amounts and customer codes to receive the best rates.

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Verifone’s TablePAY Expands Deployments

VeriFone Holdings announced that the Claim Jumper Restaurants chain is
using its “ON THE SPOT” payment system and plans to deploy it along with
VeriFone’s “TablePAY” solution at all 45
restaurants from California to the Midwest. Claim Jumper is using
VeriFone’s “Vx 670” point-of-service payment
solution to improve operations and make card acceptance faster, easier
and safer. The payment system provides protection from credit card
fraud, which the
Federal Trade Commission says is the most common form of identity theft.
Wireless handheld payment systems allow customers to retain control of
their cards at all times, reducing a restaurant’s risk. VeriFone systems
use encryption and other security features to protect all financial data
transacted over a restaurant’s Wi-Fi network.

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Moneris Solutions Acquires ANB Portfolio

Payment processor Moneris Solutions has acquired Alabama
National BanCorporation’s (ANB) merchant payments business,t he existing
merchant processing portfolio and 103 banking centers in the Southeast .
Moneris will now be responsible for all existing and future credit card
processing sales and
servicing functions related to ANB. The
acquisition also increases Moneris’ presence in the Southeast,
strengthens its brand in the region and expands the processor’s bank
network significantly.

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U.S. Economy Shows No Signs of Strength

The latest “Composite Index of Leading Economic Indicators”
is showing no sign of strength in the domestic economy. The Conference Board reports the “Index” dipped 0.1% in June, following a downwardly revised 0.2% decline in May, and a 0.1% increase in April. Real money supply, stock prices and weekly initial claims made very large negative contributions to the index in June, more than offsetting positive contributions from building permits, the interest rate spread and supplier deliveries. Four of the ten indicators that make up the leading index increased in June. The positive contributors include building permits, interest rate spread, index of supplier deliveries (vendor performance), and manufacturers’ new orders for consumer goods and materials.

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