JALCARD

Japan Airlines is considering corporate shareholders for a possible
majority stake in its “JALCARD” credit card division. Among the 5
companies, down from 10, being considered to purchase the division
shares are Mitsubishi UFJ Financial Group Inc., Credit Saison Co.,
Mitsubishi Corp. and U.S. investment fund TPG. Mitsubishi UFJ
Financial Group and Credit Saison, however, are projected to win
consideration, which will ultimately be determined at the second round
of bidding before April of 2008. JALCARD currently has nearly 1.9
million cardholders with a total transaction volume of 1,650.5 billion
yen in 2006.

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PUDONG & CITI

Shanghai Pudong Development Bank is proposing Citigroup raise
its investment stake for 2008. Citigroup currently holds 3.8% share
in Pudong Development Bank and is given the option to up this
figure to 19.9%, primarily for the credit-card and corporate
governance divisions. The bank is projecting annual loans of just
over CNY80 billion for 2008, similar to the 2007 figure, however,
with a lower rate of 15%. Furthermore, the bank’s 2007 net profit
was CNY5.5 billion, up 64% from the 2006 figure, and currently has
nearly 370 branches throughout China.

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FLEXION DISTRIBUTION

For the South Korean distribution of its Flexion batteries, Solicore has
partnered with BlueChip ENP Distribution Co. These agreements came
to fruition following BlueChip’s Solicore preposition, which culminated
with its analysis that found possible growth opportunities. For example,
the Flexion batteries may be useful for organizations designing secure
bankcards and provide components needed for compliance with OTP
applications. Solicore provides embedded power solutions and advanced
battery technology, such as the Flexion products, while BlueChip ENP Co.,
Ltd. is a Korea-based electronic components distributor.

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TASQ & HYPERCOM

Metavante Technologies has acquired Nomad Payments Ltd for $58 million. The deal will add roughly 1% to Metavante’s projected 2008 revenue. Nomad provides its
services for various payment providers and is known in the industry for
delivering innovative products and solutions such as “fit-for-purpose”
prepaid processing, developing card production, PIN production and
authorization while Metavante Technologies provides banking and payments
technologies to over 8,600 financial organizations around the world.

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HALIFAX LAWSUIT

In response to an alleged identity theft in which Alain Job was
scammed out of GBP2100, the Halifax Bank customer is seeking financial
reparations according to the Finextra.com financial news website. When
Job changed the bank-provided PIN to one that only she was familiar, Alain
maintains only she had possession of her bankcard as well. Halifax, however,
claims that whomever accessed the customer’s account must have had access
to both pieces of information. If Job proves the case, doubt will be
cast over
the efficiency of chip and PIN solutions which are designed to eliminate
fraudulent skimming scams. Experts speculate because cloned cards are more
easily produced where chip and PIN has not yet been implemented, the
fraud may have been committed abroad.

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SYNDICATE CBS

Syndicate Bank has announced the recent launch of a new e-banking
facility and ATM at its Gandhipuram branch in India, according to the
Rupee Times. The bank’s first branch to operate under the Core Banking
Solution (CBS), known as “Syndicate-e-banking”, was introduced in
2001. Presently, however, all 2100 Syndicate Bank branches are presently
computerized and host an ATM network of 456 machines throughout
India. Additional technological initiatives that have been recently
introduced
by the bank include utility bill payments services for internet banking,
online
railway ticket reservations and a voice mail system for customer
grievances.

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MobiClear Taps Greenwood for US Products

MobiClear has hired Richard Greenwood, President and CEO ALO Investments as company consultant for product strategizing within the USA.Greenwood has extensive experience in advising and managing public corporations. Co-founder of conneXcenter Inc.-BICO, Inc., he headed the development and application of the company’s screen phone business model. Additionally, Greenwood has served as Chief Executive Officer for Haagenuk CPS Inc, specializing in internet screen phones and smart cards, Predictive Data, Inc., and Bank Plus, Inc.- Fidelity Federal Bank. He served as Chief Financial Officer of Calfed – California Federal Bank and Valley National Bank, Phoenix, AZ. He has an MBA in International Finance from the American Graduate School of International Management.

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Merchant Cash Lands a Credit Line

NYC-based Merchant Cash and Capital, a merchant cash advance company, has received a $17 million, two-year, senior secured credit facility from CT-based The Patriot Group. The facility will provide funding for existing and future merchant credit and debit card advances as well as new corporate initiatives. Merchant Cash and Capital is a privately held merchant advance company that purchases future credit and debit card receipts from retailers, restaurants and service businesses. The Patriot Group is a leading specialty finance, investment, and asset management company that provides funding solutions to clients across a wide variety of asset types.

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EXPRESS CHECKOUT

Cybersource electronic payment corporation has signed agreements to
provide its merchant clients with PayPal’s “Express Checkout”. The PayPal
product is designed to enhance speed and convenience for online consumer
transactions and to allow businesses to accept various payment types.
Additionally, users of “Express Checkout” are afforded fraud protection on
all transactions with the implementation of 100 validation tests, which
include
address verification, IP geolocation tests and purchase-velocity
monitoring.
CyberSource has over 220,000 business clients and is headquartered in
Mountain View, California.

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Yahoo! Joins OPEN from AmEx Savings Program

Yahoo! Search Marketing and Yahoo! Small Business have joined the “OPEN from American Express” small business automatic savings program. Under the new deal, small business cardholders receive a 5% discount on Yahoo! Search Marketing’s online advertising and promotion services in addition to Yahoo! Small Business’s services such as Web site hosting, e-commerce, business e-mail, and domain name registration. AmEx says the program has saved $200 million for its small business cardholders since 2004. Other partners and discounts include: 3% off Delta and JetBlue flights; 5% off Marriott Courtyard, Fairfield Inn and SpringHill Suites stays; 5% off FedEx shipping and FedEx Kinko’s Office and Print Centers; 20% off Ceridian payroll services; and several others.

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First Hawaiian Intros PayPass Debit MC

First Hawaiian Bank has begun issuing the “Priority Rewards MasterCard PayPass” debit card with cards provided by Giesecke & Devrient and powered by INSIDE Contactless’ “MicroPass”. G&D has delivered the contactless debit cards, as well as traditional magnetic stripe credit and debit cards, for First Hawaiian Bank card programs. G&D has supplied over 10 million contactless payment cards to U.S. banks and anticipates significant growth in this area for 2008. First Hawaiian Bank holds $12.5 billion assets and is Hawaii’s oldest and largest bank.

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Cap One Charge-Offs Hit a Four Year High

With the exception of the spike in October 2005, Capital One reported that its charge-off ratio for U.S. Cards climbed to its highest level in more than four years during November. Delinquency (30+ days) for its U.S. Cards also increased to its highest point since June 2003. Cap One says charge-offs hit 5.74% in November, compared to 5.11% in the prior month and 3.79% one-year ago. In October 2005 charge-offs spiked at 10.81% due to the high volume of bankruptcy petitions filed in the weeks preceding the October 17, 2005 effective date of “The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.” Delinquency for U.S. Cards came in at 4.95% in November, compared to 4.75% in the prior month and 3.75% one-year ago. Cap One noted that charge-offs since June of this year were affected by a reduction in customer statement generation from a 30 day to a 25 day grace period. About 29% of Capital One’s portfolio is considered sub-prime, likely elevating its charge-off ratio. At the end of the third quarter Capital One had 37.5 million U.S. card accounts. U.S. managed card outstandings were $49.6 billion for 3Q/07 compared to $51.1 billion one-year ago and $50.0 billion in the previous quarter. For details on Capital One’s historical charge-offs since 2003 visit CardData ([www.carddata.com][1]). (CF Library 10/19/07)

DELINQUENCY CHARGE-OFF
Nov 06: 3.75% 3.79%
Dec 06: 3.74% 4.14%
Jan 07: 3.79% 4.01%
Feb 07: 3.74% 3.84%
Mar 07: 3.48% 4.13%
Apr 07: 3.45% 3.98%
May 07: 3.52% 4.26%
Jun 07: 3.41% 2.97%
Jul 07: 3.74% 4.15%
Aug 07: 4.15% 3.98%
Sep 07: 4.46% 4.26%
Oct 07: 4.75% 5.11%
Nov 07: 4.95% 5.74%
Source: CardData (www.carddata.com)

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

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