CyberSource’s Revenues Soar in 1Q/08

CyberSource posted record first quarter revenue of $53.4 million, a 141% increase. The first quarter included a full quarter of Authorize.Net results,as the acquisition closed on November 1, 2007. During the first quarter, CyberSource processed a record 445 million billable transactions, a 68% increase over the same period the over previous year, up 7% from the fourth quarter of 2007. The value of transactions processed was $26.6 billion, a 153% increase over 1Q/07. Also, CyberSource signed a record of approximately 25,000 new customers in the quarter increasing the customer base to approximately 237,000. For complete details on CyberSource’s first quarter performance, visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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Wright Express Revenues Rise 29% in Q1

Fuel card specialist Wright Express posted first quarter revenue of $92.9 million a 29% increase over 1Q/07. Total MasterCard purchase volume grew 36% to $525.7 million for the comparable period in 2007. Average expenditure per payment processing transaction increased 33% to $65.49 from $49.32 for the same period last year. Average retail fuel price increased 34% to $3.26 per gallon, from $2.43 per gallon for the first quarter a year ago. Total fuel transactions processed increased 8% from the first quarter to 64.8 million. Payment processing transactions increased 5% to 53.2 million, and transaction processing transactions increased 23% to 11.6 million. For complete details on Wright Express’ first quarter performance, visit CardData ([www.carddata.com][1]).

WRIGHT EXPRESS HISTORICAL
1Q/07: $72 million
2Q/07: $86 million
3Q/07: $88 million
4Q/07: $91 million
1Q/08: $93 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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ProQuo Survey Shows Security Concerns

Consumer advocate ProQuo has commission a survey that indicates while 83% of consumers agree that personal information security is a priority, more than 50% are not aware of potential risks. The survey’s review of 12 everyday activities reveals a startling lack of awareness over how seemingly innocuous activities, such as entering a sweepstakes or filling out a warranty card, can actually compromise the security of personal information, including a person’s name, contact details, income and credit history, indicating a significant gap in understanding what could put people at risk for the unauthorized usage or sharing of their personal information, which can lead to greater junk mail volume, increased profiling without consent, and greater exposure to identity theft. Eighty-seven percent of adults believe their personal information, such as name, address, email, age, income, credit rating and purchasing preferences, are only somewhat, slightly, or not at all secure; 26% are not aware that providing their personal information to a web site without reviewing its privacy policy can lead to their information being used or shared without their permission; 38% requested information about a product or service they saw online and 47% have completed and returned a warranty or product registration card in the past six months.

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PAYEASE/CYBERSOURCE SOLUTIONS

eCommerce solutions are met with an impasse when attempting penetration
to the growing Chinese market given, rather than credit cards, most
consumers have Chinese debit cards provided through over 20 different
key banks across the country and is with what eCommerce brands and
merchant solutions need be integrated. Posing an issue for the consumers
and merchants alike, CyberSource and PayEase have collaborated to
address these challenges with cost-effective access to online payment
vehicles, support for the Chinese credit/debit cards and assistance to
foreign companies in navigating regulatory/licensing requirements. The
partnership also provides merchants with tax calculation for Chinese
value-added tax, recognition of the Chinese language character set and
the automation of acceptance/rejection of orders. CyberSource
Professional Services provides 228,000 businesses with its electronic
payment and risk management solutions while PayEase payment & loyalty
marketing
service provider supports over 65 different types of debit cards and 4
international credit cards.

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VISA Payment Volume Jumps 19% to $681 billion

VISA reported GAAP net income for the quarter was $314 million. Net operating revenue in the quarter was $1.5 billion. For the period ending December 31st, VISA’s operational performance highlights include: payments volume grew 19% over the prior year to $681 billion; total volume, inclusive of cash volume was $1.1 trillion, an increase of 21% over the prior year; total cards carrying the VISA brands rose 16% worldwide to 1.6 billion over the prior year; and total payment transactions increased by 16% over the prior year to 11 billion. VISA’s financial outlook over the next three years includes the following metrics: annual net revenue growth of 11% to 15%; annual adjusted operating margin (adjusted earnings before interest and taxes) in the low 40% range; annual adjusted diluted class A common earnings per share growth of 20% or greater; and annual free cash flow (cash flow from operations plus cash reimbursements from litigation escrow less capital spending) in excess of $1 billion. For complete details on VISA’s latest performance visit CardData ([www.carddata.com][1])

VISANET TRANSACTIONS (millions)
Mar 31, 2008 8,800
Dec 31, 2007 9,094
Sep 30, 2007 8,645
Jun 30, 2007 8,411
Mar 31, 2007 7,645
Dec 31, 2006 8,018
Sep 30, 2006 7,722
Jun 30, 2006 7,441
Mar 31, 2006 6,828
Dec 31, 2005 7,212
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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YEAR OF THE RAT CONTEST

For its “Year of the Rat Contest,” the BMO Bank of Montreal has awarded
Brian LePage and Josephine Chow with 8,888 AIR MILES Reward Miles for
travel to select Asian locations. The contest offering these round trip
flights to China was provided by BMO branches in the Greater Toronto and
Greater Vancouver areas in celebration of the Chinese New Year and the
Year of the Rat, open to all customers between February 7 and March 7,
2008. BMO is also offering the 9 million AIR MILES collectors in Canada
the opportunity to collect AIR MILES reward miles whenever they conduct
transactions with the BMO Bank of Montreal debit card, providing 800
reward/travel options.

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MasterCard 1Q/08 Net Revenue Rise 29%

MasterCard reported first quarter net income of $398 million. Worldwide purchase volume during the quarter rose 15%, on a local currency basis, versus 1Q/07, to $453 billion, driven by increased cardholder spending on a growing number of MasterCard cards. Total operating expenses increased 11%, to $666 million, during the first quarter of 2008 compared to the same period in 2007. Growth in MasterCard’s gross dollar volume increased 14% to $611 billion; also there was a 15.7% increase in the number of transactions processed, to 4.9 billion; plus an increase in cross-border volumes of 23.6%. For complete details on MasterCard’s latest performance visit CardData ([www.carddata.com][1])

[1]: http://www.carddata.com

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Debit Card Transactions Rise 14% in 2007

Reportedly, 28% (74 million) of debit cards issued by 62 financial institutions in the U.S. saw transaction growth of over 14% in 2007, with a 15% increase in signature debit transactions and a 14% growth in PIN debit transactions, representing 46,000 ATMs. Moreover, 86% of debit cards are now signature-capable, with 20% of issuers planning to convert the ATM/PIN-only cards to PIN and signature capabilities and 65% of the debit transactions conducted through 2007 were signature authorized. Additional findings show an average debit card penetration rate of 73%, 9% of PIN debit purchases included cash back and 25% of issuers reported charging a PIN debit transaction fees at the POS to at least some cardholders. The PULSE 2008 Debit Issuer Study examines consumer use of debit cards and the continued growth in debit card transactions throughout 2007 with “best-in-class” issuers and was conducted by Oliver Wyman.

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Hypercom Names a New Interim CFO

Hypercom has appointed Robert M. Vreeland to Interim Chief Financial Officer. Vreeland has 25 years of experience in corporate financial matters and has for the last eleven years served at Hypercom. As Vice President, Americas Finance and Corporate FP&A from December 2005 to present, he oversaw the controllership function for that region as well as the global corporate budget and forecast process. He was also directly responsible for sales price policy and margin approvals and financial and operational due diligence on acquisition targets. He served as Senior Vice President, Operations of Hypercom from 2004 to 2005 and was responsible for monitoring worldwide sales finance and operations. Vreeland holds a Bachelor of Science Degree in Accountancy from Northern Arizona University and is a member of the American Institute of Certified Public Accountants.

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Moneris & Discover Network Cut a Deal

IL-based Moneris payment processing has signed merchant acquiring agreements with Discover and will offer Discover Network card acceptance to merchants. With this, Moneris and their BIN-sponsored ISOs are to provide processing services for Discover Network acceptance to merchants offering a broader range of payment options at the point-of-sale and serving as a consolidator of processing, settlement, risk management, pricing and customer service for merchant accounts. Additionally resulting from these agreements, merchants are no longer required to sign up separately with Discover. Moneris Solutions provides transaction-processing services through banks and serves over 350,000 North American merchants while Discover Financial Services is a U.S. credit card issuer and electronic payment services company that was established in 1986.

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Unified Grocers Adopts MegaPath SSL

IP data provider MegaPath’s “Retail Site SSL” and “Managed Security Services” has been implemented by the 220 members and customers of grocery distributor Unified Grocers. Retail members and customers of Unified Grocers can easily and cost-effectively manage operations remotely, accessing point of sale (POS) systems, servers and back office PCs, as well as performing routine application maintenance and troubleshooting activities. The Retail Site SSL service provides members with a specialized Web portal that is integrated with MegaPath’s Operational Support Systems, which authenticates and grants users access to their specific stores, preventing unauthorized users from accessing these locations. In addition, the MegaPath Managed Security service protects Unified Grocers’ members’ credit card data, business information and systems. MegaPath Retail Site SSL delivers strong authentication and helps ensure that business owners remain PCI compliant.

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