Dollar General to Test TIO Networks’ Hybrid ATM

Canada’s TIO Networks has signed an agreement with Dollar General to test hybrid ATMs at 52 locations in Tennessee by year-end, which combines the functionality of a traditional, cash-dispensing ATM with a cash-accepting financial services kiosk. The hybrid machines used for this deployment are the X4000 series ATM and cash accepting sidecar developed by Tranax Technologies of Fremont, California. TIO networks will process all transactions associated with the hybrid, except for the traditional cash withdrawal related services. TIO Networks Corp. is building the largest and most convenient national multi-retailer network of financial services kiosks for the ‘cash preferred’ consumer marketplace in North America.

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Experian & FMCG Launch Financial Personalities

Experian and First Manhattan Consulting Group have launched a segmentation and scoring system for financial services marketers called “Financial Personalities”. Financial Personalities enables marketers to target prospects using scores that accurately predict a consumer’s needs and attitudes towards specific financial products. Along with a Financial Personality(R) score for each consumer, a framework reveals critical aspects of each Financial Personality, such as the importance of rates and fees, discipline with finances, perceived financial security and their use of financial products. Experian is a global leader in providing analytical and information services to organizations and consumers to help manage the risk and reward of commercial and financial decisions. First Manhattan Consulting Group (FMCG) is a leading management consulting firm that specializes in the financial services industry.

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RETALIX 3Q/06

Ra’anana-based POS specialist, Retalix, reported third quarter revenues of $50.4 million, a 2% year-over-year decline. The net loss was $1.06 million for the quarter, compared to net income of $4.2 million in the third quarter of last year. The decline was due to delays in the delivery of several projects that were not completed before the end of the quarter. During the quarter, Carrefour France went live with Retalix loyalty and promotions in over 200 hypermarkets; C&S Wholesale Grocers deployed Retalix “Supply Chain Management Solutions”; a U.S. grocery retailer began a pilot with Retalix “InSync MDM”; Australia’s Metcash started deployment of Retalix “Power Enterprise”; a new contract was signed to install Retalix point of sale systems in a chain of 1,000 convenience stores in Europe; there was a roll-out of Retalix point-of-sale systems at more than half of the Woolworths stores in Australia; and two U.S. grocery retailers started piloting Retalix at their point-of-sale terminals. For complete details on Retalix’s latest results visit CardData (www.carddata.com).

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Charge-Offs Edge Higher in Oct for the 3rd Time

Charge-offs for managed outstandings edged up again in October by 11 basis points after a rocky year following the implementation of new bankruptcy rules last fall. This is the third consecutive month of increases in the charge-off ratio which bottomed out at 3.75% in March of this year. According to CardData ([www.carddata.com][1]), charge-offs for October rose to 4.26% of managed outstandings, versus 4.15% in September and 6.69% one-year ago. Moody’s “Credit Card Credit Index” for credit card-backed securities recently showed the delinquency rate has been climbing for the past three months. Last month, the 60+ day delinquency rate hit 2.54%, topping January by two basis points. According to CardData, delinquency for the October period hit 2.54%, compared to 2.45% in September and 2.57% one-year ago.

CHARGE-OFFS 2006
Jan 06: 6.05%
Feb 06: 4.73%
Mar 06: 3.75%
Apr 06: 3.95%
May 06: 4.24%
Jun 06: 4.19%
Jul 06: 3.99%
Aug 06: 3.95%
Sep 06: 4.15%
Oct 06: 4.26%
Source: CardData (www.carddata.com)

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

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INSIDE CSO

Aix en Provence-based INSIDE Contactless added the latest
member to its management team, with the appointment of Bruno Benteo as
Chief Security Officer. Benteo comes to INSIDE from THALES, where he was Director of THALES Security Systems Toulouse and also in charge of Business development in Asia, USA and Australia from 1998 to 2006. During this time, Bruno created two labs in France, and he assisted in the definition of two ITSEF/CCTL test labs in Japan. Bruno’s extensive
experience with semiconductors includes Ebeam, FIBs, Lasers, and the
applications of numerous security products. INSIDE Contactless is a major fabless semiconductor provider, delivering the most flexible, innovative, cost-effective, and trusted platform for contactless applications including bank card payments and “Near Field Communications.”

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Oberthur CEO Quits with a New One Slated for Jan

The Board of Directors of giant payment card manufacturer, Oberthur Card Systems, has accepted the resignation from office of Pierre Barberis as CEO and Director. The Board of Directors has co-opted Xavier Lafont, formerly of BNP Paribas, as an independent director to replace Mr Barberis. A meeting of the Board will be held next month to decide on the appointment of a new CEO, already selected by the “Remuneration and Appointments Committee,” and who will take up office at the beginning of January. Paris and Los Angeles-based Oberthur Card Systems recently reported that during the third quarter revenues increased slightly to $155.8 million. During the quarter Oberthur delivered 68 million microprocessor cards, breaking the record of 58.7 million cards set in the second quarter of this year.(CF Library 10/24/06)

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TSYS Managed Services EMEA Formed

GA-based TSYS has formed a joint-venture agreement with Merchants to create TSYS Managed Services EMEA for delivery of a comprehensive range of managed services to financial institutions across Europe, the Middle East and Africa. The new venture will be called TSYS Managed Services EMEA, and includes existing Merchants centers that comprise more than 200 seats in Milton Keynes, England, near London, and Barneveld, The Netherlands, near Amsterdam. Merchants (merchants.co.uk) is a wholly owned subsidiary of Dimension Data (www.dimensiondata.com), an IT solutions and services provider headquartered in South Africa. TSYS (tsys.com) is one of the world’s largest payment-services companies, offering a broad range of packaged and outsourced issuer- and acquirer-processing technologies that support consumer-finance, credit, debit and prepaid services for financial institutions and retail companies worldwide.

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Rabba Fine Foods Blesses MasterCard’s PayPass

MasterCard reports that Toronto’s Rabba Fine Foods will begin accepting “PayPass” at its 30 local stores. “PayPass” is now accepted at nearly 36,000 convenience-focused merchant locations including Petro-Canada and Cineplex Entertainment in Canada and 7-Eleven, McDonald’s, Subway, CVS, and Duane Reade locations in the U.S. PayPass is also accepted in many Major League Baseball and National Football League stadiums, as well as at numerous golf events. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes close to 14 billion payments each year.

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Oberthur Searches For a New CEO

The Board of Directors of giant payment card manufacturer, Oberthur Card Systems, has accepted the resignation from office of Pierre Barberis as CEO and Director. The Board of Directors has co-opted Xavier Lafont, formerly of BNP Paribas, as an independent director to replace Mr Barberis. A meeting of the Board will be held next month to decide on the appointment of a new CEO, already selected by the “Remuneration and Appointments Committee,” and who will take up office at the beginning of January. Paris and Los Angeles-based Oberthur Card Systems recently reported that during the third quarter revenues increased slightly to $155.8 million. During the quarter Oberthur delivered 68 million microprocessor cards, breaking the record of 58.7 million cards set in the second quarter of this year.(CF Library 10/24/06)

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Study Says PIN Access to Cards is Not Iron Clad

A new report suggests that there is a serious security vulnerability in the PIN processing systems of banks worldwide. Israeli-based Algorithmic Research says the vulnerability could enable the exposure of the PIN codes of magnetic strip and EMV cards used by millions of customers globally. The flaw enables an attacker to discover PIN codes, for example, when entered by customers while withdrawing cash from an ATM. Also, a bank insider could use an existing “Hardware Security Module” to reveal the encrypted PIN codes and exploit them to make fraudulent transactions, or to fabricate cards whose PIN codes are different than the PIN codes of the legitimate cards. Even worse, an insider of a third-party switching provider could attack a bank outside of his territory or even in another continent.

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Euronet Worldwide Acquires RIA Envia

KS-based Euronet Worldwide has acquired Los Angeles-based RIA Envia, the third-largest global consumer-to-consumer remittance company. The deal involved $380 million in cash, $110 million in Euronet stock and certain contingent value and stock appreciation rights. Ria originates transactions through a network of over 10,000 sending agents and 98 company-owned stores located throughout 13 countries in North America, the Caribbean, Europe and Asia and terminates transactions through a payer network of over 32,000 locations across 82 countries. Ria processed $4.5 billion in money transfers last year. Euronet has processing centers located in the U.S., Europe and Asia, and processes electronic top-up transactions at more than 265,000 point-of-sale terminals across approximately 157,000 retailers in Europe, Asia Pacific, Africa and the U.S. The deal is expected to close during the first or second quarter of 2007.

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IRIS REGONITION

Oki Electric Industry has succeeded in developing “Iris Recognition Technology” for mobile terminals. OKI has been providing its iris recognition technology-based equipment to government agencies, financial institutions and other enterprises in Japan and overseas. While these devices require a dedicated infrared camera, the new “Iris Recognition Technology for Mobile Terminals” can use a standard camera that is embedded in a mobile terminal, because of the original algorithm OKI has developed. OKI plans to commercialize the “Iris Recognition Technology” worldwide starting in March.

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