NIXDORF 3Q/07

For the fiscal year ending 2006/07, Wincor Nixdorf has reported an Earnings
before interest, taxes, depreciation and amortization (EBITA) increase of
16% and a year-on-year gain in net sales of 10%. However, with
exchange rate movements between the euro and US dollar, growth in net
sales were closer to 12% and exceeded recent company projections. The
reported volume increase of EBITDA was EUR 233 million for the year
while Net income rose to EUR 109 million. Also, cash net income
expanded 26% to EUR 118 million while Net cash from operating activities
rose from EUR 155 million to EUR 180 million. In response to this growth,
Wincor Nixdorf has adjusted its projections to a 6% growth in net sales and
an 8% growth in EBITA for the current fiscal year.

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MasterCard PayPass Heads to China via ICBC

MasterCard and Commercial Bank of China announced the introduction of the first “MasterCard PayPass” credit card and the first dual interface chip card in China. The “ICBC MasterCard Easy Life PayPass” credit card offers consumers convenience. The new card is also enabled with an EMV chip. In order to develop the acceptance environment for “PayPass” and EMV chip card in China, MasterCard collaborated with ICBC to deploy “PayPass” terminals in the Lama Temple, and Stellar International Cineplex and Espace France Cinema. Bicycle Rental will also be among merchants to accept the ICBC “MasterCard PayPass” card. There are over 19 million “PayPass” cards and devices in use at over 73,000 merchants worldwide.

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EXPERIAN & CREATIVE

Experian has signed agreements with Creative Telecoms & Technologies
that will allow for the establishment of a credit reference database and
credit bureau for consumers and businesses in the country of Nigeria.
Creative provides Financial Technology Services including electronic
banking, electronic payment and computer software development. The
new agreement will allow Creative to provide decision-making tools to
companies throughout the country using Experian software. The software
will provide companies with positive and negative credit account
information on those seeking credit, search information based on the
consumers personal name or address and provide that which is disclosed on
previous credit applications. With 140 million citizens, Nigeria is the
most
populous country in Africa and, subsequently, the most economically
developing.

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Asset Acceptance Reports Q3 Impairments

MI-based Asset Acceptance Capital reported that it would incur net impairments on its purchased receivables in the range of $13.0 to $15.0 million in the third quarter. The net impairments will reduce purchased receivable revenues by $13.0 to $15.0 million. Additionally, the Company announced that as a result of the review of its cash collection projection models, it will be extending the lives on many portfolios acquired in 2004 and later up to 84 months. The Company also expects a $6.8 million increase in collections expense for the quarter compared to the third quarter 2006, primarily attributable to an increase of $3.7 million in legal costs and an increase of $2.1 million in contingent forwarding fees paid for agency and legal outsourced collections and an increase of $0.6 million in telecommunications expenses. For complete details on Asset Acceptance Capital’s latest performance visit CardData ([www.carddata.com][1]).

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

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SERVERSIDE PATENT

The European Patent Office has granted Serverside Group a patent on its
“core card customization architecture.” This development contributes to
Serverside’s competitiveness in the market by recognizing the company
as a pioneer of card customization. Effectively, Serverside has begun
seeking advertising contracts and additional plans for its growing
portfolio
of international patent rights. Serverside’s fundamental applications
consist
of a web-based application allowing cardholders to design their own
payment card, “AllAboutMe”, and a web-based management tool for
issuers to launch and manage card campaigns, “Virtual Portfolio.” The
company has 52 clients in 19 countries with over 200 card programs.

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AmEx Flight Finder Adds Virgin and Hawaiian

American Express’ Membership Rewards program has added Virgin Atlantic and Hawaiian Airlines to its “Flight Finder” online booking tool. “Flight Finder”enables members enrolled in Membership Rewards and Membership Rewards First to easily search flight reward inventory, transfer points directly into a frequent flyer account, and book a reward flight in a single online transaction. Cardmembers can search rewards inventory for more than 80 popular destinations. Based on total points available, Charge Cardmembers can instantly transfer points needed from their Membership Rewards account to their frequent flyer or frequent guest program account to finalize the booking.

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TIM CARD

Tim Hortons has launched its preloaded “Tim Card” offering customers a
card solution that requires no minimum balance, service charges or expiry
dates. The card is being offered in Canada, with plans for United States
expansion in 2008, and can be loaded with any amount up to $200.
Online registration is available along with automatic reloading from a
credit or debit card. Tim Hortons has 2,733 restaurants in Canada and 345 in the
United States.

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CAPAZOO CASH CARD

Capazoo has launched a social networking website, Capazoo.com, that
operates on a unique model which adheres to the philosophy, “nothing is
free.” Unlike most other social networking sites, whereas users are used
as “puppets” for the advertising campaigns of big business, Capazoo.com
users are rewarded for their virtual work through its system of “Tipping”
and friend referral. Capazoo’s tipping system grants users points on a cash
card, which can then be converted to cash, for providing “tips” on fellow
users’ videos photos, music, profiles and blogs. These reward points,
“Zoops”, are redeemed from a portion of the websites advertising funds and
are in response to the greedy websites whom capitalize on the same token.
“Tipping” consists of users acknowledging one another for whatever
material is posted on their site and can earn up to 1,000 “Zoops” daily to
their card with no other limit. Regarding the referral program, those whom
invite others to join will earn “Zoops” for up to four generations of
members
that upgrade, also with no other limitations. Capazoo.com hails itself
as the
first of its kind with its own Member-driven economy.

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Monthly Payment Rates Slip a Bit in Sept

Monthly payment rates continued to remain healthy despite a challenged economy. MPR, or the amount that cardholders pay on their credit card debt each month, slipped to nearly 18.86% in September. The higher payment rates were driven by new minimum payment standards. According to CardData, the MPR declined to 18.30% in July, compared to 18.40% in the prior month and 20.46% one-year ago. While the dip historically has been seasonal, it appears that many borrowers are increasingly pressured by current economic factors. The combination of higher interest rates and a cooling off of the real estate market diminished the attractiveness of “cash out” refinancing activity in which many borrowers reduced their more expensive credit card debt by drawing on the equity in their home — either by refinancing their mortgages or by accessing their home equity lines of credit.

MONTHLY PAYMENT RATES
Sep 06: 20.02%
Oct 06: 20.83%
Nov 06: 20.01%
Dec 06: 19.70%
Jan 07: 19.88%
Feb 07: 18.79%
Mar 07: 18.21%
Apr 07: 18.04%
May 07: 19.01%
Jun 07: 18.40%
Jul 07: 18.30%
Aug 07: 18.99%
Sep 07: 18.86%
Source: CardData (www.carddata.com)

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Verizon Business Implements PCI DSS

Verizon Business has successfully implemented the “Payment Card Industry Data Security Standard” into its two U.S. managed hosting smart centers and achieved compliance with the VISA “CISP” for its transaction services network. Verizon Business combines a protected network, managed hosting centers and professional services to help businesses to comply with the “PCI DSS” for storing, processing and transmitting credit card information. With the July acquisition of Cybertrust, Verizon Business complemented its existing capabilities in the retail and financial services space with a full suite of PCI-related services and products. The “Verizon Online Compliance Program for Payment Card Industry” tool offers multiple views that are customized for retailers, payment service providers and acquiring banks.

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Credit Card Charge-Offs Set a New 07 High

Charge-offs headed north, hitting 4.81% in September to a new record for this year. This is the fourth consecutive month that credit card charge-offs have increased. There has been concerns that the mortgage meltdown may have spilled over into the general consumer finance market. During the third quarter Citi reported that charge-offs for bankcard and private label cards declined to 4.41% compared to 4.55% in the prior quarter and 4.26% one-year ago. BofA posted third quarter charge-offs of 4.86%, compared to 5.20% in the prior quarter and 4.18% one-year ago. Capital One reported that the net charge-off rate for U.S. credit cards was 4.13% for the third quarter, compared to 3.73% for the second quarter and 3.39% one-year ago.

CHARGE-OFFS
Jan 07: 4.33%
Feb 07: 4.39%
Mar 07: 4.44%
Apr 07: 4.60%
May 07: 4.65%
Jun 07: 4.60%
Jul 07: 4.62%
Aug 07: 4.77%
Sep 07: 4.81%
Source: CardData (www.carddata.com)

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