Gap in Card Pricing Models Narrows in 07

The gap between variable rate credit cards and fixed rate credit cards has narrowed to 140 basis points due primarily to recent fed action to lower short term interest rates which has cut the prime rate by 75 basis points. At the beginning of this year the gap between the two pricing models stood at 188 basis points. Variable (go-to) rate cards have saturated the market this year, now making up 87% of all cards-in-force. Less than five years ago, the number of fixed rate cards outnumbered variable rate cards, according to CardTrak ([www.cardtrak.com][1]). Today, variable rate cards carry an average go-to interest rate of 16.39% versus 14.99% for the average fixed rate cards. In January, the average go-to variable interest rate was 16.59% versus 14.72% for fixed rate cards. (The averages do not include introductory or punitive interest rates.)

CREDIT CARD INTEREST RATES
Month Prime Fixed Variable
Jan 07 8.25% 14.72% 16.59%
Feb 07 8.25% 14.74% 16.61%
Mar 07 8.25% 14.74% 16.61%
Apr 07 8.25% 14.88% 16.64%
May 07 8.25% 14.92% 16.65%
Jun 07 8.25% 14.93% 16.65%
Jul 07 8.25% 14.96% 16.69%
Aug 07 8.25% 14.97% 16.70%
Sep 07: 7.75% 14.98% 16.58%
Oct 07: 7.75% 14.99% 16.39%
Source: CardTrak.com (www.cardtrak.com)

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

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TRM Corp Continues its Clean-Up in Q3

OR-based TRM Corporation reported that third quarter gross sales were $23.3 million, down 1% from 3Q/06. Net sales declined 5% to $8.3 million. The average number of transacting ATMs was 10,176 during the third quarter, compared to an average of 10,473 during the second quarter, reflecting the loss of two large retailers. To date, the Company has added 1,544 new ATM units since the beginning of the year, including 451 in the third quarter. TRM noted that driving this performance was the addition of 122 full placement units. The Company also noted that average withdrawals per unit per month have been maintained at a level consistent with the same period one year ago. For complete details on TRM’s third quarter performance visit CardData ([www.carddata.com][1]).

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

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Intersections Q3 Revenue Rises 29% Y/Y

VA-based credit card enhancement provider, Intersections, reported revenue for the third quarter of $71.4 million, a 29% increase over 3Q/06. However, net income decreased 35% to $1.7 million, compared to the same quarter last year. Total subscribers increased to approximately 5.0 million as of September 30th, compared to 4.6 million subscribers at the beginning of the year. Subscription revenue, net of marketing and commissions associated with subscription revenue, increased to $39.4 million for the third quarter from $35.1 million for the second quarter, and from $31.8 million for 3Q/06, an increase of 12% and 24%, respectively. Intersections has more than 7 million customers, primarily acquired through marketing partnerships and consumer-direct marketing of Intersection’s “Identity Guard” brand. For complete details on Intersections’ third quarter performance visit CardData ([www.carddata.com][1]).

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

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S1 Corp’s Third Quarter EBITDA Grows 67%

GA-based S1 Corporation posted third quarter revenue of $51.3 million for the third quarter, slightly less than the same period in 2006. EBITDA for the third quarter was $7.0 million compared to $4.2 million in 3Q/06. During the third quarter, S1 Enterprise licensed its Business Banking application to one of the 15 largest banks in the U.S.; Postilion licensed its payments processing software to one of the largest issuers of credit cards in Poland and, on a hosted basis, to a large retailer – the first Postilion payments processing customer hosted in the S1 Data Center; and the Company obtained source code rights to mobile phone banking software for use with its S1 Enterprise and Postilion products. S1 expects revenue in the range of $202 – $206 million for 2007. For complete details on S1 Corp’s third quarter performance visit CardData ([www.carddata.com][1]).

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

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Diebold Unveils Advanced Skimming Detection

Diebold’s Global Security Task Force research and development program has released its new “Advanced Skimming Detection” technology for automated teller machines. The detector features a proprietary detection algorithm that allows the sensor to discriminate between different types of skimmers, environmental factors and cardholder activity to reduce false alarms. Diebold’s Global Security Task Force works to deter criminal fraud attempts by providing industry and consumer education internationally. It also detects fraud, dismantles fraud and develops solutions to reduce fraud loss all while maintaining ATM consumer confidence.

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GEMALTO 3Q/07

Smart card specialist Gemalto reports that overall third quarter revenue rose 6% to $588 million, marking the return to year-on-year growth. Revenues for the “Secure Transactions” unit, which includes smart payment cards, rose 7% to $148 million compared to 3Q/06. The Company says the growth in “Secure Transactions” was driven mainly by
strong growth in personalization activities. However, some related production and labor difficulties were encountered during the quarter which adversely affected card deliveries. Gemalto is banking on its new “CardLikeMe” solution that enables customers to customize and order new credit cards via secure access to an online design portal. SEB Germany recently signed to offer “CardLikeMe” to its five million customers. In the “POS Terminals” unit revenues also increased 7% year-on-year to $17.3 million. During the quarter Gemalto’s “Java Card” implementation received “EAL4 Common Criteria Certification” and “EAL7” assurance. ensuring the secure isolation of applications. For complete details on Gemalto’s latest performance visit CardData (www.carddata.com). (CFI Library 10/10/07)

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Simon Boston Celtics Giftcard Launched

The Simon Property Group has partnered with the Boston Celtics to offer the “Boston Celtics GiftCard”, issued by MetaBank. The “Simon Boston Celtics Giftcard” will be available in denominations ranging from $20 to $500 with a $3.00 handling fee for each card purchased, a portion of which will be split evenly between the Boston Celtics Shamrock Foundation and the Simon Youth Foundation. The Giftcard is a VISA Gift card and can be used anywhere VISA debit cards are accepted, including Simon Malls nationwide. The card is also protected by VISA’s Zero Liability policy in the event the card is lost or stolen.

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NETELLER 3Q/07

NETeller has released reports reflecting revenue growth for Q307 due to
a growing customer base. Revenue for Q307 grew 19% over a one-year period
for a total volume of $8.4 million in Europe and grew 41% in Asia
Pacific. The
total customer base was 895,334, a 61% increase since the year prior,
with a
12% growth in Europe and a 21% growth in Asia Pacific. Loss before tax
however was $145.9million, mostly due to its $136 million forfeiture to
U.S.
authorities because of previous business in the country.

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TNB to Process for Golden Plains CU

TNB Card Services will now provide KS-based Golden Plains Credit Union, with debit and credit card processing to TNB Card Services. The credit union will move 5,400 signature debit cards and more than 3,000 credit cards to TNB’s processing platform, in a move designed to gain processing efficiencies and add the flexibility to market and grow the card programs. The 33,000-member Golden Plains CU averages $2.6 million in debit transactions per month and carries $3.9 million in outstanding balances with its credit card portfolio.

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HU & VPS SOLUTIONS

For its smart ID credentials, Humboldt University has implemented the
vps ID System. This will allow the students and staff of HU admission
tickets and campus access in the form of a smart card with vps ID’s
“IDExpert CMS” (credential management system). Additionally, the solution
will allow users IT network access to digitally sign emails, encrypt
e-mails and govern campus printer use. The solution is to provide HU with
end-to-end service, including personalization, issuance and deactivation,
given the high turnover rate of a typical University campus. vps ID
Systeme GmbH supplies IT solutions for identity management with web-based,
open-architecture card management applications, such as IDExpert
CMS , access control, electronic ticketing, ePassports, national IDs and
health cards.

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Rewards Network Posts a Profitable Q

Chicago-based Rewards Network reported that third quarter sales declined 5% to $57.2 million. However, net income for the third quarter totaled $1.1 million, compared to a $400,000 loss in 3Q/06. The lower sales were due to fewer merchants participating in the “Marketing Credits Program” which was partially offset by more merchants participating in the “Marketing Services Program.” The company noted that its total merchant count has increased 7% and its net “Dining Credits” portfolio has increased 20% since the end of 2006. Total merchants participating in its programs were 9,233 at the end of the third quarter compared to 8,673 in the prior quarter. For complete details on Rewards Network’s latest results visit CardData ([www.carddata.com][1]).

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

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