AmEx Introduces a Gift Insurance Receipt

American Express has come up with an innovative way to raise consumer awareness about its “Buyer Protection Services.” Starting November 15th, charge cardholders will be able to physically include a gift insurance reminder with gifts by downloading the new “American Express Gift Insurance Receipt.” AmEx’s “Buyer Protection Services” includes: “Return Protection,” “Dispute Resolution,” “Purchase Protection Plan” and “Buyer’s Assurance Plan” when purchased with an AmEx charge card.

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Cybertrust Lands BT Buynet for PCI DSS

BT Buynet, a provider of credit and debit card processing services for UK merchants, has teamed with Cybertrust for PCI DSS compliance.. BT Buynet is a major provider of card processing services with clients including UGC Cinemas, Bosch and O2. The company also holds the world record for most online donations in one day for the DEC Tsunami Appeal. Cybertrust is providing BT Buynet with PCI scanning and certification services. Cybertrust is the global information security specialist, delivering services that secure critical data, protect identities and help customers demonstrate ongoing compliance.

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Revolving Credit Downshifts in September

Revolving consumer credit soared to a record of more than $857 billion in September. Based on revised figures revolving debt rose 6.7% in both July and August. However, the growth slowed down to an annual rate of 4.0% in September. According to data released by the Federal Reserve, total revolving credit grew nearly $3 billion during September, compared to a revised $854.5 billion for August. Bank credit card debt (excluding store and gas credit cards) at the end of the third quarter was about $737 billion or roughly 86% of total revolving credit, according to CardData ([www.carddata.com][1]). At the end of September, Americans were $2366.3 billion in debt, excluding home mortgages.

REVOLVING CREDIT HISTORICAL ($billions)
Sep 06 Aug 06 Jul 06 Jun 06 May 06 Apr 06
GRWTH: 4.0% 6.7 6.7 10.1 13.0 4.0
$OWED: $857.4 854.5 849.8 845.1 829.3 806.6
Source: Federal Reserve; revised figures as of 11/7/06;
For complete historical data, visit CardData (www.carddata.com)

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

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MasterCard’s Folio Program Tops 11,000

InterContinental Hotels Group announced it will participate in the MasterCard enhanced folio data program. With the addition of the IHG properties, MasterCard corporate customers can now receive line item expense data from more than 11,000 hotels and resorts in the U.S. and Canada. Beginning in January more than 2600 IHG properties will join the program including its InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn Hotels and Resorts, Holiday Inn Express, Staybridge Suites, Candlewood Suites, and Hotel Indigo. The MasterCard program allows hotel expenses paid with a MasterCard corporate card, including room, tax, meal, telephone, business center fees and other in-room charges, to be electronically-delivered to the companyâ™s expense management systems.

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AmEx Raises its ROE Target Again

American Express has increased its Return on Equity target to 33-36% and is the second increase in as many years. In addition, the Company seeks to return 65% of the capital generated to its shareholders through share repurchases and dividends on average and over time. The new ROE target reflects the unique characteristics of the American Express “spend-centric” business model and its success in capturing the spending of affluent consumers, small businesses and corporate Cardmembers. American Express Company (www.americanexpress.com), founded in 1850, is a global travel, financial and network services provider.

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Wright Express Q3 Revenue Rises 18%

Fuel card specialist, Wright Express, reported revenue for the third quarter of $79.7 million an increase of 18%. Net income for the third quarter was $34.4 million, compared with a loss of $6.2 million in 3Q/05. Total fuel transactions processed increased 2% from one-year ago to 61.8 million. Payment processing transactions increased 6% to 46.8 million, and transaction processing transactions decreased 9% to 15.0 million. The average expenditure per payment processing transaction was up 14% to $57.95 from $50.72 for the same period last year. Total MasterCard purchase volume grew 45% to $365.7 million, from 3Q/05. For complete details on Wright Express’ third quarter performance, visit CardData ([www.carddata.com][1]).

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

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NYCE Renews its TD Banknorth Contract

ME-based TD Banknorth has inked a long-term contract renewal with NYCE to be the bank’s sole provider for PIN-based POS debit card access and will also use NYCE as its primary network for ATM card access. The NYCE business expansion is coupled with a payment services contract extension, under which Metavante will continue to drive and monitor ATMs, provide card personalization services and process debit and prepaid debit card transactions for TD Banknorth. NYCE Payments Network, LLC, is a leading U.S. debit card payments network and a division of Metavante Corporation, TD Banknorth’s preferred financial services technology vendor, as well as the financial technology subsidiary of Marshall & Ilsley Corporation. TD Banknorth, one of the 25 largest commercial banks in the U.S., delivers over 1 million cards and more than 750 ATMs into the NYCE Network.

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CompuCredit Profits Climb 37% Sequentially

Atlanta-based sub-prime card specialist, CompuCredit, reported net income for the third quarter of $38.8 million, up 37% from the prior quarter, but significantly lower than the year ago quarter. Total managed receivables for the third quarter were $2,754,125,000 a 15% increase compared to one-year ago. As of September 30th, CompuCredit had 3,773,000 accounts, compared to 3,188,000 in 3Q/05. The adjusted charge-off rate was 9.4% in the third quarter, as compared to 7.8% for 3Q/05 and 8.3% in the previous quarter. As of September 30th, the 60-plus day delinquency rate was 14.0%, as compared to 9.6% for 3Q/05 and 11.5% at mid-year. For complete details on CompuCredit’s third quarter performance, visit CardData ([www.carddata.com][1]).

COMPUCREDIT NET INCOME SNAPSHOT
3Q/05: $52.7 million
4Q/05: $ 3.0 million
1Q/06: $30.7 million
2Q/06: $28.3 million
3Q/06: $38.8 million
Source: CardData (www.carddata.com)

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

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SMART CARD FORECAST

More than 3.0 billion smart cards were shipped this year and about 3.7 billion are expected to be delivered this year. Smart bank cards grew 19% this year to 400 million and expected to top 480 million next year. Eurosmart says the banking sector is steadily growing and will probably be more dynamic than ever with the arrival of contactless, innovative services and DDA migration. In particular, contactless payment continues to grow significantly in the U.S with more than 20 millions such cards should be deployed by the end of 2007. Also in 2007, EMV roll-out will continue mainly in Asia. Renewal in Europe and Middle East will also continue to generate strong volumes.

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Comdata Wins a Patent Lawsuit

Comdata has won a jury verdict in a patent infringement suit brought by Barry Fiala. n addition, the jury found that the asserted claims of the patent invalid for obviousness, found that patent is invalid for failure to name all of the inventors, and that the patent is unenforceable due to inequitable conduct before the United States Patent and Trademark Office. Comdata Corporation (www.comdata.com) is redefining the movement of money and information through innovative payment solutions. Ceridian Corporation (NYSE: CEN) is an information services company serving businesses and employees in the United States, Canada and Europe.

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Hypercom Intros an Unattended Bankcard Reader

Hypercom has released a new EMV/PCI approved unattended bankcard reader module for use in the self-service kiosk market. The new “Optimum H2210” is a manual hybrid card reader accepting both magnetic stripe and smart cards. The “H2210” is designed to be incorporated into indoor or outdoor kiosks used in a variety of self-service environments. It also has the smallest form factor of any product of its kind. Additionally, a front card gate prevents coins, dust, moisture and other harmful debris from entering the reader.

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Green Dot Names New CFO

Prepaid specialist, Green Dot Corporation, has named John Keatley, formerly with McKinsey & Company, as its new CFO. Keatley joined Green Dot’s Finance Division in 2004 from McKinsey & Company, where he was a manager in the consulting firm’s financial services practice. He holds an MBA degree from Harvard Business School and a BS degree in Physics from Princeton University. Green Dot Corporation is America’s first and largest provider of retailer-sold prepaid debit cards, with tens of thousands of purchase locations nationwide.

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