DATACASH & EUROCOMMERCE

DataCash Group payment service provider has completed its purchase of
EuroCommerce Call Center Solutions for between EUR4.2 million and
EUR8.7 million. EuroCommerce provides payment processing services for
travel booking companies. DataCash does not expect to see profitability
from the acquisition until after 2008 and is confident in the decision to
purchase the company with its additional resources in the global travel
market. On top of purchasing EuroCommerce, DataCash has lent the
company EUR4 million for debt relief.

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WESTPAC ATM

For the blind and visually impaired, Westpac has installed a
voice-simulating
ATM at the Auckland Domestic Airport with the implementation of a series
of audio cues. In conjunction with the Association of Blind
Citizens of
New Zealand, the bank has implemented this initiative to provide this
demographic with an important service. The cues provide balance disclosure
and instructions on money withdrawal through either the user’s personal- or
bank-issued-headphones, compatible with the 35mm audio jack on the
machine.

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EU COMPETITION LAW

The European Union Commission has concluded that Groupement des
Cartes Bancaires (CB) has violated the EC Treaty competition law of
Article 81 with its adoption of certain price measures. The practices in
question were found to limit the availability of affordable cards with the
imposition of charges to restrict competition in the French payment card
market. Consequently, the Groupement has been imposed upon with
demands to cease the violation immediately. Furthermore, the Groupement
management are to pay losses under certain conditions based on the
number of cards issued. The Groupement officially ceased the practice
in question in 2004, pending further investigation into the matter from the
EU Commission. The effects however are still found, especially in the
restriction of major banks issuing fewer cards with less competitive rates.
Groupement des Cartes Bancaires manages the system of payments by
“CB” card, accounting for over 70% of card payments in France, and has
nearly 150 managing bank members.

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SHELTER SURVEY

Based on a survey conducted by the housing charity Shelter, 7.5%
of those between the age 18 and 24 have been forced to use credit
cards to pay mortgage or rent over the past 12 months. According
to experts at the company, the credit crunch, interest rate hikes and
un-affordable housing, combined with irresponsible mortgage lending
and credit profiling are the reasons for this trend, which was mostly
felt in the West Midlands and Wales regions. In these regions, 9%
of homeowners and renters have been forced to make the respective
payments on credit.

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Alliance Data Posts its Strongest Quarter

Dallas-based Alliance Data Systems reported that total third-quarter revenue increased 14% to a record of $575.5 million. Adjusted EBITDA for the third quarter increased 30% to $172.8 million. ADS says the results were driven by double-digit growth from the “AIR MILES Reward Program” in Canada, U.S. Marketing (Epsilon) and private label services. During the second quarter, the Company announced that it had entered into a definitive agreement to be acquired by Blackstone which is expected to close in the fourth quarter. Marketing Services revenue increased 25% in the third quarter to $272.8 million compared to the prior-year period. Credit Services revenue increased 12% in the third quarter to $202.5 million compared to the prior-year period. Transaction Services revenue decreased 3% in the third quarter to $190.1 million compared to the prior-year period. The Company is raising its guidance for 2007 to revenue of $2.3 billion, up from the previous guidance of $2.25 billion. For complete details on ADS’ third quarter performance visit CardData ([www.carddata.com][1]).

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

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WaMu Q3 Credit Card Profits Slip 51%

Seattle-based Washington Mutual reported that third quarter net income for its Card Services unit decreased 51% from the year-ago quarter to $102 million. Managed card outstandings were $26 billion as of September 30th, compared to $22 billion one-year ago. At 5.73% of period-end managed receivables, the 30+ day managed delinquency rate was down from prior quarters due to the strong receivables growth in the quarter. Net credit losses of 6.370% during the quarter down from the prior quarter’s 6.49%. During the quarter, Card Services opened a record 945,000 new credit card accounts. Marketing to WaMu customers continues to be an important growth opportunity for Card Services and accounted for approximately one third of production. For complete details on WaMu’s latest performance, visit CardData ([www.carddata.com][1]).

WaMu Net Income Track Record
3Q/06: $207.0 million
4Q/06: $149.0 million
1Q/07: $256.0 million
2Q/07: $141.0 million
3Q/07: $102.0 million
Source: CardData (www.carddata.com)

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

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USAT Raises $15 Million from Investors

USA Technologies has sold to institutional investors a total of 2,142,871 shares of common stock at a price of $7 per share resulting in gross proceeds of $15 million. The private placement proceeds will be used towards the purchase of e-Port devices for the “Quick Start “program that enables buyers to proliferate credit card acceptance across their fleets of vending machines without tapping into capital dollars. With Quick Start, vending operators and bottlers pay only $24.95 per month for the e-Port device and full e-Port Connect services over a pre-determined period. USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management.

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ECHO Adds LendingTree Exec to its Board

Electronic Clearing House has announced the appointment of Keith B. Hall, recently retired as SVP President and CFO of LendingTree, to the Board of Directors. Hall brings to ECHO 30 years of experience in financial analysis, accounting, investor relations, strategic planning, process redesign and international operations. Hall held chief financial officer positions with three public companies (Broadway & Seymour, Inc., Loctite Corporation, and Legent Corporation) that were acquired. He also was employed for over twelve years in various financial positions of increasing responsibility at United Technologies Corporation (UTX), including chief financial officer of Carrier Corporation’s North American Operations. He holds an MBA from Harvard Business School and a Bachelor of Arts degree from Coe College. ECHO provides a fully integrated payment processing suite, including credit card processing, electronic check conversion (ECC), eChecks (ACH), check guarantee, check verification, check collection, and debit cards.

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GPN Completes Discover Network Integration

Global Payments has completed the integration of Discover Network card transaction processing and support services for the majority of its merchants. Global Payments now processes Discover Network card transactions for its direct merchants, as well as the merchants in its alliance with Comerica Bank, offering authorization, settlement, and support services in one, integrated, cost-effective, and simplified payments solution and is also currently integrating Discover Network card transaction processing and support services for its ISOs. Global expects to complete the integration of all of its independent sales organizations within the first half of next year. Global Payments is a provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi- national corporations

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PPI Offers Merchant Cash Advances

Payment Processing has announced a new referral relationship with AdvanceMe that allows PPI resellers to offer “Merchant Cash Advances” to merchants based on their future credit and debit card receivables. A “Merchant Cash Advance” provides working capital to business owners without any personal collateral by purchasing the business’ future credit card sales. Once a PPI merchant is approved, a lump sum is deposited into the merchant’s business checking account. As each day’s credit and debit card transactions are settled, a specified percentage is forwarded by PPI to AdvanceMe and applied to the remaining Merchant Cash Advance balance. Payment Processing is a integrated payment solutions provider.. AdvanceMe has made more than 40,000 fundings, providing more than 15,000 business owners in all 50 states with nearly $850 million dollars in working capital.

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First Data Renews National City Bank

First Data and National City Bank has agreed to a long-term contract extension for its debit and credit card portfolios currently processed by First Data. First Data will continue to provide comprehensive processing services for 5.6 million signature debit card accounts and 3.8 million credit card accounts. National City is also a member of First Data’s STAR Network, a coast-to-coast electronic payments network specializing in secure, real-time purchase and ATM transactions.

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PayPal Q3 Payment Volume Rises 34%

eBay reported that PayPal had 164 million total accounts at the end of the third quarter, a 34% increase from one-year ago. Total payment volume also rose 34% to a record $12.2 billion which includes payments initiated through the PayPal system but excludes its payment gateway business. The number of active accounts hit 37.5 million as of September 30th, its highest level to-date. During the third quarter, PayPal handled 177.4 million payments, a 3% increase over the prior quarter, and up 21% from 3Q/06. PayPal’s 3Q/07 transaction revenue rate increased to 3.67% from 3.70% in the prior quarter. The processing expense rate for the third quarter was 1.15%, compared to 1.07% for 3Q/06. PayPal’s transaction loss rate came in at 25 basis points, down ten basis points from one-year ago. For complete details on eBay/PayPal’s third quarter performance, visit CardData ([www.carddata.com][1]).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
3Q/06: $ 9.1 billion 122.5 million
4Q/06: $11.0 billion 133.0 million
1Q/07: $11.4 billion 143.3 million
2Q/07: $11.7 billion 153.1 million
3Q/07: $12.2 billion 164.0 million
SOURCE: CardData (www.carddata.com)

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

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