First USA Co-Founder Joins Heartland Board

Heartland Payment Systems has appointed Richard W. Vague, recent CEO of Barclays Delaware Bank, to its Board of Directors. Vague joined Barclays in 2004 after its acquisition of Juniper Financial, a direct consumer credit card bank he co-founded in 2000. Previously, he was co-founder, chairman and chief executive officer of First USA, a credit card company he grew from a start-up to an issuer of over 57 million cards and $70 billion in loans. He also served as chairman of Paymentech, the merchant processing subsidiary of First USA. He holds his B.S. in Communications from the University of Texas at Austin. Heartland Payment Systems provides credit, debit, and prepaid card processing, payroll and payment solutions to more than 150,000 small and mid-sized businesses nationwide and is the founding supporter of The Merchant Bill of Rights, a public advocacy initiative that educates merchants about fair credit and debit card processing practices.

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ILC Loophole Closure Bill Passes the House

The U.S. House overwhelmingly passed the “Industrial Bank Holding Company Act of 2007.” The bill restores the historic separation between banking and commerce, prevents branch banking by some commercially-owned ILCs, and bolsters the supervisory authorities of the FDIC as a holding company regulator. “H.R. 698,” was co-sponsored by Paul Gillmor (R-OH), Barney Frank (D-MA), and Jim Marshall (D-GA). The bill was introduced on January 29th, the subject of a hearing on April 25th, and was overwhelmingly passed by the Financial Services Committee on May 2nd. Frank, who is Chairman of the House Committee on Financial Services, said he hopes to work with the Senate to forge a compromise bill that the President can sign.

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Shift4 Launches 4GO with SecureSwipe

Shift4 has introduced “4GO with SecureSwipe” technology software that removes all usable personal credit card data at the POS terminal, in back-office data storage and during all data transport. It works by securely encrypting transaction data at the point of sale, replacing any potentially useful data with “faux data” that can not be used by anyone outside the system. which means useable data is never retained in the POS device or the merchant’s system. Shift4 is a developer of secure financial transaction processing software and services and provides web-based, real-time enterprise payment solutions for leaders in the hospitality, retail, foodservices, auto rental and e-commerce markets.

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Citi’s ThankYou Network Offers Peter Max Art

Artist Peter Max is making 18 pieces of his artwork available to members of Citi’s reward program. For the first time members of the “ThankYou Network” can redeem points, starting at the 32,200 point level, for fine art. The free rewards program enables members to earn points from using participating Citi credit cards, banking at Citibank with an eligible checking account and booking qualified travel on Expedia.com. There are currently 11 million “ThankYou Network” members. Max has been referred to as a “Pop icon,” “Neo Fauvist,” “Abstract Expressionist” and America’s “Painter Laureate.” The Citi “ThankYou Network” is offering two original works painted in acrylic on canvas, ten signed lithograph prints, and six posters signed and dedicated to the recipient by Peter Max. In addition, members with high point levels can redeem their points to have Peter Max paint a custom portrait of their dreams.

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Emida to Offer nFinanSe Discover Cards

Global prepayment and value transfer market specialist Emida Technologies has signed an agreement to offer the “nFinanSe Discover Prepaid Card”. Emida is scheduled to offer the nFinanSe Reloadable General Spend and Gift Cards with retail packaging and point-of-purchase marketing materials in English and Spanish to their approximately 10,000 retail affiliates nationwide in the summer of 2007. nFinanSe Inc. is a financial services company and provider of stored value and prepaid card solutions. Emida is a provider to the global prepayment and value transfer market, operating in 18 countries.

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Younger Consumers Drive ePayment Options

A new report has found that 48% of consumers ages 25 to 34 prefer debit cards for Internet transactions, as compared to only 39% of all online consumers. Thirty-four percent of online consumers ages 18 to 24 prefer PayPal or similar services versus 27% of all online consumers. The JupiterResearch study also found that the introduction of the Internet, maturation of PayPal and related services, emergence of debit cards and stored value cards, and availability of data-capable mobile phones and other mobile products are embraced by younger consumers as they have co-existed with technology for most of their lives. Jupiter says issuers and vendors must keep an eye on the emerging data habits of younger adults, and pay special attention to how their payment and data preferences feed into tomorrow’s payment-product and form-factor innovations.

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CardWizard is PathWays Connector Registered

Dynamic Card Solutions’ “CardWizard” product has been recognized as an official registered “PathWays Connector” component for the “Summit Information Systems Spectrum” core processing application. The PathWays Connector creates a two-way communication channel between DCS’ CardWizard software and the Summit Spectrum application. As one of only two companies to accomplish the PathWays Connector registration, DCS’ CardWizard software can now be integrated by Summit’s credit union customers so they can instant issue and rePIN cards seamlessly without risk of database corruption. Spectrum customers will order the CardWizard software directly from DCS while ordering the CardWizard PathWays Connector component from Summit. As part of the Summit Registered PathWays Connector program, DCS will be notified of any changes or enhancements for the PathWays Connector. At that point, DCS can update its CardWizard software and run it through Summits’ testing process, ensuring that credit unions will not experience interruption of their card issuance system. Summit Information Systems provides technology that drives the service at many of today’s most innovative credit unions. Dynamic Card Solutions is an innovative developer of instant issuance and PIN selection solutions for banks, credit unions and retailers.

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MasterCard Maintains its U.S. Market Share

Based on first quarter reports, MasterCard continues to be the fastest growing payment card network in the U.S. with a 15.7% year-on-year jump in gross dollar volume, compared to VISA’s 9.1% gain, American Express’ 13.5% increase and Discover’s 13.1% rise over 1Q/06. Over the past four quarters the four major payment card networks have racked-up $3.3 trillion in U.S. gross dollar volume on credit and debit cards. CardData ([www.carddata.com][1]) reports that VISA’s U.S. share, based on U.S. GDV, is now 54.1%, compared to MasterCard’s 29.2% share. During the first quarter VISA posted U.S. gross dollar volume on all products of $440 billion, compared to MasterCard’s $237 billion. Over the past four quarters, VISA GDV has climbed to $1789.5 billion compared to MasterCard’s $951.0 billion, American Express’ $419.3 billion and Discover’s $118.1 billion. MasterCard’s recent surge is linked to its strong performance in debit cards which grew 41% in the first quarter.

1Q/07 U.S. GROSS DOLLAR VOLUME
VISA: $440.3 billion
MasterCard: $237.0 billion
American Express: $105.4 billion
Discover: $ 30.3 billion
TOTAL: $813.0 billion
Source: CardData (www.carddata.com)

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

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