PrePaid International Forum Launched

Anticipating growth in prepaid commerce, the international trade
association,
“Prepaid International Forum” (PIF), has been established to address
anticipated challenges companies will face. “PIF” was established by
companies including MasterCard, GE Money, JP Morgan Chase, American
Express, Sainsbury’s, the VA merchant alliance and TSYS. The prepaid
industry allows the unbanked, 70% of the world’s population, the same
advantages as those with bank accounts. Europe is expected to see the most significant growth in this industry while Latin America is expected to see the least. Furthermore, 40% believe the growth in the prepaid industry will reduce cash usage over the next 5 years.

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JCDecaux Cyclocity to Deploy ASK Cards

ASK contactless cards has announced it will be providing JCDecaux
Cyclocity, a bicycle rental provider, with a self-service bike rental
application based on contactless technology. Targeting urban mass transit in cities including Aix en Provence, Paris, Seville, Spain and Lyon,France, JCDecaux will be offering contactless tickets and cards for public transportation through this new agreement. The company currently has a self-service bicycle rental network of 20,600 bicycles available at 1,451 stations of which Paris Velib’ service will be the largest. With more than 70 million contactless products in service, ASK is a France-based company with customers around the world.

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Fifth Third Receives a VISA Award

VISA has awarded Fifth Third Processing Solutions a VISA Service Quality Performance Awards for “Lowest Chargeback-to-Sales Ratio”. The Lowest Chargeback-to-Sales Ratio category reflects an acquirer’s ability to effectively educate its merchant customers on VISA’s acceptance procedures designed to ensure that transactions are properly processed at the point of sale. VISA established the Service Quality Performance Awards Program in 1992 to recognize exceptional card operations performance by card issuers and acquiring members. The awards acknowledge consistent, superior performance and has consistently recognized Fifth Third Processing Solutions for its excellent processing performance since 1995. Annually, Fifth Third processes $148.1 billion in credit card sales.

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TNS Acquires an Aussie CNP Specialist

VA-based Transaction Network Services has acquired Australian-based Dialect Payment Technologies for $4.2 million. The deal will give TNS entry into the CNP market. DPT’s electronic transactions engine adds a key element to TNS’ services suite that is usable in all geographies. Through the acquisition, TNS also enters relationships with new key customers primarily in the Asia/Pacific region, including credit, debit and ATM card providers and retailers. TNS specializes in the data networks for the transport of transaction-oriented data. DPT also offers IP payment processing services under “white label” arrangements for major financial institutions such as American Express, MasterCard and Commonwealth Bank of Australia. Over 60 banks around the world use Dialect products and services.

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BMO Mosaik MasterCard Powers Donations

For every customer that applies for BMO Bank’s “Mosaik MasterCard”,
the bank has announced it will donate $100 to the University Hospitals
Kingston Foundation. Furthermore, for every successful applicant, the Bank
will donate $125 for the first use of the card. These donations are part of
BMO Bank’s promotion to support the hospital’s foundation and gain the
attention of potential customers. BMO Bank of Montreal has had a
relationship with Kingston’s university hospitals for more than 160
years and
recently made a $750,000 donation to support hospital redevelopment and
staff education. The bank has assets of nearly $357 billion, more than
35,000
employees, and operates 29 branches in the Kingston area.

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CyberSource to Acquire Authorize.Net

CA-based CyberSource has signed an agreement to acquire Authorize.Net in a stock and cash transaction valued at approximately $565 million. CyberSource manages payments for about 20,000 mid-sized and enterprise customers. Authorize.Net has more than 175,000 small business customers. Collectively, the companies processed approximately 1.1 billion transactions in 2006, representing $65 billion of e-commerce. Authorize.Net shareholders will receive 1.1611 shares of CyberSource stock for every share of Authorize.Net stock. Shareholders will receive a pro-rata share of approximately $125 million in the form of a cash payment. Robert Donahue, currently a member of the board of directors of Authorize.Net, will join the board of directors of CyberSource. Scott Cruickshank, president and COO of CyberSource, has agreed to resign from the board of directors of CyberSource. The transaction is expected to close in late September or early October.

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TNS Acquires Dialect Payment Technologies

Transaction Network Services has acquired Dialect Payment
Technologies for $4.2 million. This includes the acquisition of Dialect
Payment Technologies’ call centers and Internet CNP monitoring division.
Also included are customer relations including credit, debit and ATM card
providers and retailers. Dialect Payment Technologies offers payment
processing and fraud protection headquartered in Australia. TNS has 32
offices in 29 countries with the ability to provide communications in other
countries.

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MEI Freedom Shopping Kiosk Cited

MEI Retail’s self-service system Freedom Shopping received the “Kiosk Excellence Award for ‘Best New Innovation'” at the 2007 KioskCom Self-Service Expo. KioskCom awarded Freedom Shopping for its “Freedom Shopping Kiosk”, a compact, wall-mounted, self-checkout kiosk that automatically detects radio frequency identification in 10 seconds, with a thumbprint version of the system averaging less than five seconds. The unit is ideal for vendors wanting a speedy checkout without the need for security features. The system accepts all forms of payment and is being used in food service, hospitality, and other retail venues in the U.S. and Australia. Freedom Shopping is a leading manufacturer of RFID self-checkout systems. MEI has the largest worldwide installed base of unattended payment mechanisms.

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China Postal Bank Expands Euronet ATM Deal

Euronet has announced the expansion of its ATM outsourcing agreement
with China Postal Savings Bank. The Bank currently has a network of
7,780 ATMs, 90 of which are controlled by Euronet. Under the new
terms, China Postal Bank will outsource an additional 721 ATMs and
provide a range of day-to-day ATM outsourcing services from its
operations center. The new terms will be implemented over the next
year and a half. China Postal Bank is the fifth largest financial
institution
in China with 36,000 branches.

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TNB Lands E FCU Processing Contract

Louisiana-based E Federal Credit Union has moved its credit card processing to TNB Card Services. E FCU will convert more than 3,300 credit card accounts to TNB. The $203 million E FCU caters to more than 21,000 members associated with ExxonMobil Corp., ExxonMobil Chemical Co., ExxonMobil Chemical Americas, and ExxonMobil Service Stations in Louisiana. TNB Card Services serves more than 475 financial institutions and managing more than 1.6 million cards.

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Western European ATMs Expand 4.4% in 2006

A new research report has found there were 14,295 new ATM installations in western Europe last year to bring the total number of ATMs to 342,495. The U.K. remains the largest market with 60,642 ATMs. Spain, which had the leading position in 2003, is in second place with 57,989 machines, followed by Germany with 53,630 units. The Retail Banking Research study also discovered that the Turkish market recorded the fastest rate of growth in 2006 at 11%, the only country to experience double digit growth. RBR says that for the first time there are more ATMs located off-site than in lobbies. About 29% of ATMs are located off-site in western Europe. Almost 11.9 billion cash withdrawals were made at western European ATMs in 2006, an increase of 1.7% over the 2005 figure. Average usage fell for the fifth consecutive year to stand at 2,888 withdrawals per machine per month. NCR remains the largest ATM manufacturer in western Europe with a 46% market share. It is represented in every country surveyed except Luxembourg. RBR found that two thirds of ATMs use a “Windows” operating system. “Windows NT” continues to lead but its market share fell by six percentage points in 2006 to 32%. Several deployers migrated to “Windows XP,” which saw its market share double from 15% to 30% during 2006.

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