THECARD & MOBICLEAR

TheCard Scandinavia has signed agreements with MobiClear to
improve security for its business customers. These new security
solutions include the MobiClear “Card Security” and the MobiClear
“On/Off Card Security” solutions. The former requires customers
to enter a four-digit PIN over their mobile phone while the latter
affords customers the ability to cease functionality of credit and/or
debit cards when not in use. Both of these services are expected to
be implemented by March of 2008 across various service sectors
including the travel industry, retail, dining and over the Internet.
MobiClear designs electronic Personal Identification Verification
(PIV) solutions for credit/debit card users, estimating card fraud
at around $20 billion per year, while TheCard Scandinavia AB
provides business solutions to the travel industry.

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VeriFone to Restate Financials; Stock Sinks

VeriFone’s stock collapsed yesterday, losing 46% of its value, after the Company reported that its financial reports for this year were not accurate. The payment card terminal manufacturer said pre-tax income for the first nine months of this year is likely to be nearly $30 million lower than what was previously reported. The restatement is principally due to errors in accounting related to the valuation of in-transit inventory and allocation of manufacturing and distribution overhead to inventory. VeriFone’s Board of Directors have also decided to delay its fourth quarter earnings report, due out this week, pending completion of the assessment of the errors and the restatements. However, the Company noted that total revenues for the quarter ended October 31st to be approximately $238 million, a 52% increase over 3Q/06. Yesterday, shares of VeriFone closed at $26 per share, down from its previous price of $48 per share. In September, VeriFone reported that its net revenue for the quarter ended July 31st surged 57% to $231.9 million, largely driven by the Lipman acquisition. Net revenues from VeriFone’s International business increased 106% while net revenues from its North America business increased 22%. For complete details on VeriFone’s latest performance, visit CardData (www.[www.carddata.com][1]).(CF Library 9/7/07)

REVENUE HISTORICAL
3Q/05: $130.5 million
4Q/05: $134.6 million
1Q/06: $142.2 million
2Q/06: $147.6 million
3Q/06: $156.6 million
4Q/06: $216.6 million
1Q/07: $217.2 million
2Q/07: $231.9 million
3Q/07: $238.0 million
Source: CardData (www.carddata.com)

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

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GEMALTO EXEC

Gemalto has appointed Alex Mandl as a non-executive chairman of its
board, which currently consists of one executive board member, CEO
Olivier Piou, and 9 other non-executive members. Mandl is also a board
member and member of the audit committees of Dell Computers, Horizon
Lines, board member and member of the compensation committee for
Hewitt Associates and of Willamette University. Additionally, he has
experience serving as CEO of Gemplus until June 2006 after his time as
the chairman and CEO of Teligent. Prior to his time with these
organizations,
Mandl was a president and CEO of AT&T and chairman and CEO of
Sea-Land Services.

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Hypercom Names a New Sales VP for HBNet

Hypercom Corporation has announced the appointment of Connie Festa, previously Director of Strategic Sales and National Sales Manager at TNS, as HBNet VP of Sales. At TNS, she spearheaded all aspects of the company’s sales and customer support to the retail, banking and processing markets in the US and Canada. She previously served as Director of Strategic Sales and National Sales Director – US, for WAY Systems, where she developed new markets and increased revenues for wireless payments.

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EMV SPECS

EMVCo has launched its EMV “Entry Point Terminal Specification” for the
processing of contactless payments. This solution supports the processing
of token and card payments regardless of the payment application and
ultimately allows applications to co-exist on a terminal with various
contactless
applications using multiple migration paths. To support the “Entry Point”
solution, the organization has published its “EMV Contactless
Specification for
Payments Systems, Framework for Contactless Evolution v1.0” providing
context and detail for the payments infrastructure. Established as a
joint venture
among Europay International, Mastercard International and VISA
International,
EMVCo was conceived in 1999 to manage EMV payment and specifications.

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PCI Security Standards Council Names Chair

The PCI Security Standards Council has named Rob Tourt, VP, Network Services at Discover Financial Services as chairperson of the Council effective January 1, 2008. Tourt has been with Discover Financial Services since 1986 and has held a variety of roles during his tenure ranging from fraud investigator, recovery collections manager, director of national sales support, vice president of network products to vice president of network operations and risk management. He holds a bachelor’s degree in Business Administration from The Ohio State University and an MBA from the Kellogg School of Management at Northwestern University.

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OKI & FUJITSU

Oki Electric and Fujitsu Limited are collaborating on developing ATM
software to provide more services for the enhancement of the user-
friendliness of their teller machines. The partnership ultimately intends on
providing ATM application software that allows services to be deployed
at low cost using Web-based architecture. This architecture implements
a fee structure that charges per transaction, reducing software development
costs, to streamline asset management operations and is managed using a
central server. Oki and Fujitsu have slated the initial release of this
software
for April 2008 across Japan and plan to acquire 200 new customers by
2011.

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MasterCard Expands its Smart Data Products

MasterCard has released a new version of its “Smart Data” suite of products for reporting and expense management. The new “MasterCard smartdata.gen2” is powered by the MasterCard “Global Data Repository,” a technology repository that houses transactional information, including data from airlines, hotels and additional sources. For businesses the solution offers integrated reporting views and insights; single sign-on capabilities; local currency transactions translated into a single currency; supports 14 languages; provides spend data detail; a streamlined accounting process; customizable expense monitoring; and exports to other software programs or ERP systems. For issuers “MasterCard smartdata.gen2” provides flexible capabilities; greater control of SME card programs; electronic reporting; seamless integration into existing platforms; and offers dedicated customer support.

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Discover Introduces a Virtual Gift Card

Discover has introduced a prepaid, stored value card for purchases online. The new “eGift Card” enables purchasers to buy denominations from $20 to $500 and have it immediately delivered to its recipient. Additionally, “eGift Cards” can be personalized by virtual embossing. Up to 10 cards can be purchased at one time. Once activated, the “eGift Card” funds never expire, but is subject to similar fees as that of traditional gift cards. If the card is not activated within 30 days of purchase, the funds will be returned to the purchaser. Discover also offers traditional gift cards in more than 40 different card designs. Discover launched its gift card program in October 2003. (CardTrak 10/15/03)

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Currency Conversion Settlement Hearing Set

The law firms of Berger & Montague and Coughlin, Stoia, Geller, Rudman & Robbins reported that the settlement approval hearing for its foreign currency conversion lawsuit against VISA, MasterCard and Diners Club has been scheduled for March 31st. The settlement provides $336 million to pay claims, the costs of administering the settlement and notice, and court-awarded attorneys’ fees. All class members who made a foreign transaction with a VISA, MasterCard, or Diners Club credit or debit/ATM card between February 1, 1996 and November 8, 2006 are eligible for a refund.

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City Furniture Renews GE Money Card Deal

GE Money and FL-based City Furniture have extended their consumer financing agreement. The City Furniture Card program is managed by GE Money’s Sales Finance unit and provides instant credit at the point of sale, a simplified application process, same day delivery and account maintenance via the Web. City Furniture has 14 showroom locations in Broward, Dade and Palm Beach counties.

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Senate Panel to Explore Card Practices Today

A congressional panel will explore a variety of credit card business practices this morning. The Senate Subcommittee on Investigations indicated it will focus on the “universal default” practice among the nation’s leading issuers, even though some of the top issuers rescinded the practice this year. Representatives from Bank of America, Capital One and Discover are expected to testify today. Citi and Chase refused to participate. In March, the same Senate subcommittee, headed by Democratic Senator Carl Levin, held a hearing on “Credit Card Practices: Fees, Interest Rates, and Grace Periods.” In May Senators Carl Levin and Claire McCaskill introduced “The Stop Unfair Practices in Credit Cards Act.” Democrat Barack Obama is also seeking a “credit card bill of rights” to stop alleged credit card abuses by issuers. Ahead of today’s hearing the American Bankers Association released a report titled: “Myths vs. Facts: Credit Cards.” (CF Library 3/7/07; 5/16/07)

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