SCM E-HEALTH CARD

SCM Microsystems has announced that its “eHealth 100” health card
terminal has received approval from the electronic health card program
of Germany. The program plans to deploy 82 million electronic health
insurance cards and thousands of health provider cards over the next
few years. The terminal was designed for the German electronic
health card industry and is compliant with SICCT (Secure Interoperable
Chip Card Terminal) specification V1.03. The SICCT specification is a
catalogue of requirements for smart card terminals used in the German
eHealth program’s secure network, or “telematics” infrastructure, and was
developed by the IT industry organization, TeleTrusT e.V. SCM
Microsystems supplies digital solutions for content access and services.

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FDC Finally Names CEO Duques Successor

First Data reports that Michael Capellas will become CEO after Kohlberg Kravis Roberts completes its acquisition of the Company. A successor to current CEO Ric Duques has been a major issue for the payment card processor. Duques served as Chairman and CEO since November 2005, and previously served as Chairman from 1989 to 2003 and CEO from 1989 to 2002. Duques made it clear that he wanted to retire this year when he returned to FDC. Capellas recently served as CEO MCI, f/k/a Worldcom, from 2002 until its acquisition by Verizon in 2006, and Chairman from 2002 to 2004. He also served as CEO of Compaq Computer from 1999 to 2002, and Chairman from 2000 to 2002. He subsequently served as President of Hewlett-Packard Company following the acquisition of Compaq by Hewlett-Packard. In April FDC signed a deal to be acquired by an affiliate of KKR for about $29 billion. FDC expects the deal to close at the end of the third quarter. (CF Library 4/2/07; 1/25/07; 5/23/07)

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MOBILE PAYMENTS

Juniper Research has conducted research suggesting that, by 2011,
mobile payments will have conducted 22 billion dollars in transactions
and will have attracted 204 million users. The commercialization of
NFC devices, secure applications, the support of credit card
organizations and financial institution funding are all contributing
factors
to expansion of the industry. Research conducted by Juniper includes
interviewing experts in the industry, conducting case studies, and
analysis from representatives of the mobile payment industry.

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Green Dot Net Offers MasterCard rePower

MasterCard has inked a strategic agreement with a major player in prepaid reloadable cards. Under the deal, MasterCard and Maestro prepaid cards with “MasterCard rePower” functionality can be loaded through the “Green Dot Network” and “Green Dot MoneyPak” at over 40,000 retail locations nationwide, including Wal-Mart, CVS/Pharmacy, Walgreens, Rite Aid, and Radio Shack. The “MasterCard rePower” POS network was launched last December as a solution to enable MasterCard prepaid cardholders to easily add money to their eligible prepaid accounts. As part of the agreement, “MasterCard rePower”-enabled cards will be reloadable through the “Green Dot Network’s MoneyPak” product as well as through a one swipe technology via electronic POS device at select Green Dot retailers. In addition, Green Dot will provide management services for “MasterCard rePower” including merchant relationships and processing services. Full implementation of the program across the Green Dot Network is expected to be completed later this year.

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SMART DEBIT CARD

TD Canada Trust has completed Canada’s first transaction with a smart debit card and becomes the first organization in the country to be able to conduct a transaction using a chip debit card at a
chip-enabled ABM that adheres to EMV standards. Over the next several years, TD will issue millions of chip-enabled “TD VISA” cards and TD Canada “Trust Access Cards” to its customers. TD Merchant Services has already deployed tens of thousands of chip-enabled POS terminals to merchants in preparation of chip cards entering the market. The first transaction was made at a “Green Machine” ABM located in TD’s Creekside
Corporate Office in Mississauga, Ontario. TD Bank Financial Group has more than 4.5 million online customers.

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Payment Data Systems Logs a June TX Record

San Antonio-based Payment Data Systems reported that its credit card dollar volume processed in June was its highest for any month to date and that the volume processed in the second quarter was also the highest for any quarter in the history of the company. On an unaudited basis, June’s dollar volume rose 54% from the June 2006 level. For the second quarter of 2007, dollar volume leaped 79% from the comparable period last year. Payment Data Systems is an integrated payment solutions provider to merchants and billers

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Checksmart Switches to Western Union Services

Western Union is now offering its services at 263 Checksmart locations in 11 states nationwide. Checksmart Financial, which formerly offered a competitor’s services, joins Western Union’s network of more than 305,000 Agent locations, including subsidiaries Orlandi Valuta and Vigo, in more than 200 countries and territories worldwide. Checksmart Financial offers financial services such as payroll advances, check cashing, bill-pay services, wire transfers, money orders, prepaid debit cards and phone cards.

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Jack Henry Acquires Gladiator Technology

MO-based Jack Henry has acquired Atlanta-based Gladiator Technology Services for an undisclosed amount. Gladiator is a provider of technology security services that enable financial institutions to proactively safeguard their information and transaction processing infrastructures, and to comply with the related regulatory standards mandated by the federal government. Gladiator services include network intrusion prevention, firewalls, server intrusion prevention and event logging, risk assessments, compliance and regulatory solutions, and e-mail filtering and encryption services. The services are currently supporting more than 500 banks and credit unions nationwide. The acquisition closed on July 1st.

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Consumer Online Travel Bookings Wane

A new survey shows that online travel bookings have declined over the past few years, even though consumers using the Internet to research travel continue to outnumber those booking online. The research by The Conference Board and TNS shows that the ability to book airfares online garnered the highest level of satisfaction, with 48% of customers claiming they are “extremely” satisfied. The ability to make car rental arrangements online also received high marks with nearly 42% of customers saying they are extremely satisfied. Two out of every ten consumers say they have used the Internet more this year than last to research travel arrangements, while 18% have increased their online bookings. The proportion of consumers planning to use the Internet in the next three months to research travel continues to outnumber those intending to book online by nearly two to one. Overall activity, however, has declined over the past three years.

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St. Louis Bank Offers Discover Card Options

St. Louis-based Heartland Bank has launched an Internet bank offering multiple credit card options including the recently released “Discover Network” card, all of which offer travel, entertainment and product rewards. During the online application process, applicants’ identities are electronically verified and the customers will provide information on their existing checking account which will be linked to their Heartland Bank Direct Performance Savings account. Once the account is open, customers will have the convenience of transferring money between their Performance Savings account and existing checking account from any computer in the world. It offers one of the highest rates available, currently 5.05% APY, to all customers regardless of balance, with a minimum opening balance of $500 and no fee if the balance falls below $500 after opening. Heartland Bank has assets totaling more than $800 million.

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Multimedia Gift Card Ramps-Up its Production

Tulsa-based EnXnet and Duplium have doubled their production capacity for the “Multimedia Gift Card” from 600,000 cards a month to 1.2 million per month. Additional manufacturing increases are also being planned so that EnXnet will be able to meet expected demand increases in 2008. The “Multimedia Gift Card” provides marketers a unique format to speak one-on-one with their customers.

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