GE MONEY & EDB BANK

For its activity in Denmark and Norway, GE Money has signed a 7
year, NOK 160 million contract with EDB. Providing an option to
expand to other countries in the region, EDB will provide GE Money
Bank with standard components for cards, payments and reporting
to the authorities. EDB offers platform-independent solutions for bank
offices, payment services, card systems, self-service banking and related
services. The company has 3,800 employees, and a reported turnover of
NOK 5.8 billion in 2006. Operating in all Nordic countries, GE Money
has nearly 50,000 employees and 120 million customers in 50 countries.
The Banks’ product offering includes services such as mortgage loans,
car financing, consumer lending and international credit cards. GE Money’s
Norway Office has 340 employees and some 300,000 customers.

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Card Issuers Need to Tweak Online Ads

While more advertising dollars are moving online there is a consensus the the market share of search advertising, where Google reigns as king, will decline from 40% today to 32% by 2011. However, IDC expects Internet advertising will grow to $31 billion by 2011. Major credit card aggregation Web sites such as Austin Ventures’ creditcards.com also face multiple challenges as credit card underwriting tightens, competition strengthens and market saturation peaks. Furthermore, advertising rates will likely increase as response rates will likely weaken. According to Mortgage Advertising Insider the best online strategy is the interaction, synergies and overlap of multiple online channels including banner advertising, paid search and sponsorships. Because advertisers attribute the buyer’s behavior to the last ad seen, they are blind to the implications of users who saw their ad over multiple publications and mediums.

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LIQUIX & POSTILION

Postilion has announced that Liquix will be using the company’s payment
processing engine for payments processing. Liquix currently provides
solutions for prepaid top-up payments, SMS reloads, interactive voice
response (IVR) systems, point-of-sale (POS) terminals and processes
payments and top-up requests for nearly 12 different organizations. These
organizations include telecom operators such as BASE in Belgium and
mobile virtual network operators like Ayyildiz and Simyo. The company
also provides gas top-up payment services for Essent, a Dutch household
energy provider. Liquix chose Postilion for its proven performance and
capability to apply prepay and top-up service. Liquix specializes in prepay
reloads, payment services and personal value storage systems such as gift
cards. Postilion is a division of S1 Corporation and a leading provider of
integrated solutions for self-service banking and payment processing. S1
employs 1,400 people in operations throughout the world and more than
3,000 customers use S1 software solutions.

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Cardtronics Raises Cash for 7-Eleven Deal

Cardtronics is planning to offer $125 million of Senior Subordinated Notes to fund its acquisition of substantially all of the assets of the financial services business of 7-Eleven. The notes are an additional issuance of Cardtronics’ 9 1/4% Senior Subordinated Notes due 2013, $200.0 million of which were originally issued in August 2005. Cardtronics is the world’s largest non-bank owner/operator of ATMs with more than 25,750 locations.

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CASHBOX EXEC

Anthony Sharp, having stepped down from his position as Chairman of
Cashbox, has resigned as a company director. In his place will be John
Maples, whom was Chairman of ATM operator Bank Machine Ltd
from 2003 to 2005 and was a Treasury Minister under both Margaret
Thatcher and John Major. Furthermore, Maples is a Member of
Parliament for Stratford-on-Avon and the Deputy Chairman of the
Conservative Party.

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Prepaid HSA Cards to Post a 60% CAGR

The Mercator Advisory group has released a new report focusing on prepaid debit cards for health spending accounts. The report evaluates the size of the HSA market today and forecasts growth through 2011. It also offers a forecast of the number of HSAs that will likely be candidates for HSA Prepaid cards. Not all Health Spending Accounts will be candidates for a Prepaid HSA card. For instance, many HSAs are under funded. Many have very low transaction rates because the owner perceives the HSA more as an investment account than for health spending. While there are just over 1 million HSA accounts associated with a Prepaid HSA card today, this will increase to 6.5 million accounts in 2011 – a compound annual growth rate of just under 60 percent.

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AAIBA & VISA MINI

With approximately half the dimensions of a standard-sized credit card,
Arab African International Bank (AAIBA) and VISA have launched the
“VISA Mini” card in Egypt. To be used at contactless POS terminals, just
as standard cards, the “VISA Mini” can be issued as a standalone or
supplementary card with a card number, name and expiry date and is
designed to be attached to the cardholder’s keyring. This feature helps
prevent card loss with a smaller size making the account numbers less
visible for fraud prevention. The new card, however, cannot be
used at ATMs. VISA products generate more than $4 trillion in sales
volume worldwide and VISA/Plus is one of the world’s largest global ATM
networks, offering cash access in local currency in over 170 countries.

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Walgreens Picks Fifth Third Processing

Fifth Third Processing Solutions has signed a new, multi-year contract for credit card processing services with Walgreens. Fifth Third Processing Solutions also provides debit and electronic benefits transfer (EBT) processing services to Walgreens. Fifth Third Processing Solutions processes over 21 billion ATM and POS transactions per year for more than 2,300 financial institutions and over 143,947 retail locations worldwide. Walgreens is the nation’s largest retail pharmacy chain with nearly 6,000 retail locations.

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EB ONLINE

In conjunction with the bank’s 30 year anniversary, Emirates Bank has
introduced online payment service through the Emaar online payment
service. This online service will be available for such products including
purchase installments, rental, service fees, maintenance fees and late
payment charges. Using the online banking platform, BankNet, the Bank’s
payment service will provide a payment mode to settle bills to various
parties
and government authorities such as Etisalat, DEWA, Dubai Police and Emaar.
Customers can also settle their credit card bills and make charity
donations.

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Collections Index Retreats in June

A monthly collections industry index decreased by 12% in June driven by double-digit sequential declines in smaller account balances and single-digit declines in larger balance accounts under $3,000. On a year over year basis, the Index fell 6.0%, well below the 7.3% in the last month. The SunTrust Robinson Humphrey “Settlement-in-Full Index” reports its metric dropped to 72.9% in June, compared to 83.0% in May. Settlements/payments under $500 decreased 13.5% year-over-year in June as settlements/payments between $500 and $1,000 decreased 8.3%; settlements/payments between $1,000 and $3,000 decreased 9.9%; and settlements/payments from $3,000 to $7,000 were up by 12.9%. The “SIFI” is a proprietary monthly research tool that measures the success of collections agencies in collecting bad debts that they have purchased. The data are based on five agencies including Arrow Financial Services, Oliphant Financial Corporation, Phoenix Credit Solutions, and Zenith Acquisition.

SIFI COMPOSITE
(not seasonally adjusted)
May 06: 77.3%
Jan 07: 77.1%
Feb 07: 81.5%
Mar 07: 72.5%
Apr 07: 74.5%
May 07: 83.0%
Jun 07: 72.9%
Source: SunTrust Robinson Humphrey

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CALLCREDIT 2.0

Callcredit and Fair Issac Corporation have launched “CallScore 2.0”
for credit risk scoring. Combining Fair Isaac’s multiple scorecard
technology and analytical capabilities with Callcredit’s data diversity,
“CallScore 2.0” will be an on-demand service to be delivered in
real-time. In doing so, the scoring model applies analytical techniques
of Fair Isaac’s FICO scoring and data sets to maximize risk prediction
accuracy. The credit risk scoring solution also segments the market
according to the quantity and quality of data returned on individuals.
Fair Issac supports business decisions in over 80 countries.

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HPS Offers 3-Year Payroll Pricing Guarantee

Heartland Payment Systems has introduced a new three-year pricing commitment for payroll customers. This model is designed to eliminate unstable pricing and add-on charges commonly associated with outsourced payroll processing practice. The pricing structure is based on a model developed by Heartland for its payment business, which has grown organically from $500 million to over $50 billion in ten years. Following this example, the company expects to reach a 25 percent operating margin for its payroll business. Heartland Payment Systems, delivers credit/debit/prepaid card processing, payroll and payment solutions to more than 150,000 small and mid-sized businesses nationwide.

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