NetSpend to Use NetEconomy Fraud Solution

Prepaid card issuer NetSpend has selected Netherlands-based NetEconomy’s “ERASE Compliance Manager” solution to detect and report potential money laundering and fraudulent activities. ERASE will monitor upwards of four million transactions monthly in order to detect and report suspicious debit-card activity. NetSpend processes over $4 billion in card payments annually. NetEconomy is a provider of financial crime management and compliance solutions with over 110 implementations across 48 countries.

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3M Library System Offers Card Options

3M has introduced the “3M Library System”, an automated checkout and fine and fee payments solution, at the American Library Association’s annual Mid-Winter Meeting. 3M Library Systems will offer a basic fines and fees self-pay option that allows for payment with credit or debit card and a flexible option, an automated payment machine that accepts paper currency and change. “3M SelfCheck Systems,” introduced in 1992, pioneered the field of automated library collection management and circulation functions. “3M SelfCheck Systems” employ radio frequency identification technology and/or bar codes to process the checkout and return of collection items. “3M Library Systems” provides security, productivity and information management solutions.

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Chase Nails Up a Contractor’s VISA Card

Chase has introduced an affinity business card for small contractors. The new “Chase Contractor Cash Rewards VISA Signature Business Card” offers a 60-day interest free, same-as-cash financing for construction material purchases of $1,000 or more. The new card also offers rewards, which provide 2% cash back on all construction material purchases up to $20,000 per month and 1% cash back on all other purchases. Chase says the new card also includes financial reporting features designed with contractors in mind to assist them with expense reporting, customer invoicing, customer service and financial management. The card carries a $50 annual fee, but is waived the first year. The APR is prime +4.99%.

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COF Card Profits Up 42% Y/Y; Slip Sequentially

Capital One’s fourth quarter U.S. credit card profits soared by 42% year-over-year but fell 27% sequentially to $337.2 million. Purchase volume in the U.S. was up 7.5% while U.S. managed card outstandings increased 8.3% from the year-ago quarter. The number of U.S. card accounts rose by about 150,000 during the quarter compared to about 300,000 in the prior quarter and total accounts remained flat year-on-year. U.S. card net income was $337.2 million, compared to $461.6 million in the prior quarter and $237.0 million for 4Q/05. U.S. managed card outstandings were $53.6 billion for 4Q/06 compared to $49.5 billion one-year ago and $51.1 billion in the previous quarter. Purchase volume hit $22.8 billion for 4Q/06, compared to $21.5 billion for 3Q/06 and $21.2 billion for 4Q/05. Capital One had 37.6 million accounts as of December 31st, compared to 37.5 million in the prior quarter and 37.6 million one-year ago. The managed delinquency rate (30+ days) for U.S. credit cards was 3.74% for the fourth quarter, compared to 3.53% for 3Q/06 and 3.44% for the fourth quarter of 2005. The net charge-off rate for U.S. credit cards was 3.82% for the fourth quarter, compared to 3.39% for the third quarter and 5.70% one-year ago. For complete details on Capital One’s fourth quarter performance, visit CardData ([www.carddata.com][1]).

COF U.S. CARD NET INCOME
4Q/05: $237.0 million
1Q/06: $602.8 million
2Q/06: $421.8 million
3Q/06: $461.6 million
4Q/06: $337.2 million
Source: CardData (www.carddata.com)

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

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GE MONEY 4Q/06

GE reported that profit for its Consumer Finance unit, now known as GE Money, climbed 13.6% in the fourth quarter to $875 million as revenues rose 18.9% $5.8 billion, compared to one-year ago. During the fourth quarter GE Money entered the agent bank market for general purpose credit cards as Hancock Bank will issue a “Platinum VISA” credit card product through GE Money to its customers in Mississippi, Louisiana, Florida, and Alabama. Also, GE Consumer Finance’s Retail Sales Finance unit changed its name to GE Money – Sales Finance and
Houston-based Finger Furniture Company renewed its agreement with GE Money for consumer financing services including the “Finger Five-Star Card.” For complete details on GE’s fourth quarter performance, visit CardData (www.carddata.com). (CF Library 10/17/06; 11/9/06; 11/27/06)

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PNC Financial Settles Over Katz IVR Patents

PA-based PNC Financial Services and CA-based Ronald A. Katz Technology Licensing have reached a settlement of patent litigation. PNC has agreed to pay an undisclosed sum for a nonexclusive license under a comprehensive portfolio of patents that Katz owns relating to interactive voice applications. Mr. Katz is the named inventor on a large number of patents primarily in the fields of telecommunications and computing and was aawarded a patent as co-inventor of Telecredit, Inc., an on-line real time credit and check cashing authorization system.

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TJX Breach to Affect More than 40MM Sig Cards

The recent security breach at TJX Companies may affect more than 40 million signature-based general purpose credit and debit cardholders worldwide. The latest hack took place between mid-May and December of last year but, was not publicly disclosed, at the request of law enforcement, until this week. However, the Company acknowledges a similar hack in 2003 that may have accessed credit and debit card sales transactions in TJX’s stores in the U.S., Canada, and Puerto Rico. The latest intrusion involves the portion of TJX’s computer network that handles credit card, debit card, check, and merchandise return transactions for customers of its 826 T.J. Maxx, 751 Marshalls, 271 HomeGoods and 162 A.J. Wright stores in the U.S. and Puerto Rico, and its 184 Winners and 68 HomeSense stores in Canada, and may involve customers of its 212 T.K. Maxx stores in the U.K. and Ireland. The intrusion could also extend to TJX’s 36 Bob’s Stores in the U.S. The Company has engaged General Dynamics and IBM to handle the problem.

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Citi Delivers Another $1B Quarter for US Cards

Citigroup reported that 4Q/06 profits for its U.S. Cards unit rose 125% year-on-year to $1001 million driven by growth in non-interest revenue, lower charge-offs and the absence of an accounting charge for customer rewards. Revenues increased 31% to $3.57 billion, driven by higher results from previously securitized receivables and increased fee revenue. However, bank credit card outstandings for the U.S. were down 1.8% to $111.6 billion compared to one-year ago. However, private label card outstandings increased 16.1% to $32.4 billion. Purchase volume for the fourth quarter rose 6.8% to $81.0 billion. Citi’s account base at the end of the fourth quarter rose 16.8% to 153.2 million accounts. Citi’s charge-offs for bankcard and private label cards rose to 4.45% compared to 4.26% in the prior quarter and 6.68% one-year ago. Overall delinquency (90+ days) rose slightly from 1.60% for 3Q/06 to 1.62% for the fourth quarter 2006. For complete details on Citigroup’s 4Q/06 performance, visit CardData ([www.carddata.com][1]).

CITIGROUP
U.S. Credit Card Net Income
3Q/05: $ 797 million
4Q/05: $ 444 million
1Q/06: $ 926 million
2Q/06: $ 878 million
3Q/06: $1085 million
4Q/06: $1001 million
Source: CardData (www.carddata.com)

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

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Experian Becomes CIFAS Accredited

Experian has achieved an industry first by becoming an accredited CIFAS member. The company is one of just 14 out of 255 members with this accreditation following three separate compliance reviews by CIFAS over three years. To attain the accreditation, the fraud team had to demonstrate best practice in all areas, with all its procedures being thoroughly examined by independent consultants employed by CIFAS. The review also covered staff training and the handling of complaints.

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GE Money Fourth Quarter Profits Rise 14% Y/Y

GE reported that profit for its Consumer Finance unit, now known as GE Money, climbed 13.6% in the fourth quarter to $875 million as revenues rose 18.9% $5.8 billion, compared to one-year ago. During the fourth quarter GE Money entered the agent bank market for general purpose credit cards as Hancock Bank will issue a “Platinum VISA” credit card product through GE Money to its customers in Mississippi, Louisiana, Florida, and Alabama. Also, GE Consumer Finance’s Retail Sales Finance unit changed its name to GE Money – Sales Finance and Houston-based Finger Furniture Company renewed its agreement with GE Money for consumer financing services including the “Finger Five-Star Card.” For complete details on GE’s fourth quarter performance, visit CardData ([www.carddata.com][1]). (CF Library 10/17/06; 11/9/06; 11/27/06)

GE CONSUMER FINANCIAL TRACK RECORD
Income Revenues
4Q/05: $770 million $4886 million
1Q/06: $836 million $5090 million
2Q/06: $880 million $5268 million
3Q/06: $916 million $5590 million
4Q/06: $875 million $5811 million
Source: CardData (www.carddata.com)

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

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GPN Inks 13 Casinos for VIP LightSpeed

Global Payments has entered into agreements with 13 U.S. and Canadian gaming establishments to provide its VIP LightSpeed suite of cash access products. VIP LightSpeed is an Internet-accessible, PC-based platform that provides cash access services for traditional and electronic check cashing, ATM check cashing, and credit and debit card cash advances. In addition, VIP LightSpeed provides high-speed processing of cash access transactions, reduces risk associated with check-cashing and cash advance services, and offers a full spectrum of management reporting tools.

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RocketBux and ViVOtech Team for M-Marketing

Bend, OR-based RocketBux has partnered with ViVOtech to offer its mobile phone-based marketing services. Under terms of the agreement, RocketBux will be utilizing ViVOtech’s ViVOplatform version 3.1 to deliver its mobile advertising services to consumers. RocketBux provides targeted retail offers and coupons as well as enhanced loyalty programs from merchants to participating mobile phone users. The ViVOplatform software is designed to work with the magnetic and contactless payment cards and to integrate with ViVOtech’s contactless readers, Near Field Communication (NFC) and Over-the-Air (OTA) payment provisioning technologies. A recent report by data group eMarketer predicts global spending on mobile advertising at over $900 million in 2007. RocketBux, Inc. specializes in the distribution of coupons via mobile phones and location-based text advertising and rewards. ViVOtech is the market leader in contactless/NFC payment software, transaction processing and over-the-air (OTA) management systems and readers.

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