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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Irrelevant Mail Costing U.S. Businesses

A new survey says that the average business could be wasting more than $180,000 per year by sending out direct mail that is not relevant or does not reach the intended recipient. The research for Experian’s QAS by Dynamic Markets says that the average annual cost of returned mail was more than $9,000 per company. The average business professional in the U.S. receives about 1,500 pieces of mail per year that are correctly addressed to them but considered irrelevant to their jobs. Additionally, U.S. professionals each year receive more than 280 pieces of mail per person that are intended for previous employees.

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BB&T Joins the Allpoint Network

BB&T has joined the Allpoint Network to give its Florida clients access to more than 2,550 surcharge-free ATMs in the state. BB&T currently operates 117 ATMs in Florida. Allpoint, a division of Cardtronics, is America’s largest surcharge-free ATM network, with 32,000 ATMs in leading national and regional merchant locations across the country. BB&T Corporation (NYSE: BBT) is the nation’s ninth largest financial holding company.

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Contactless Card Specs Released

The Smart Payment Association has released the first version of their contactless data storage specifications. The members of the association have been working on a joint specification with the objective to keep it simple and easy to implement on contactless devices at a low cost, while providing appropriate levels of security. Whenever possible, existing standards were employed. The Smart Payment Association (SPA) members are Gemalto, Giesecke & Devrient, Oberthur Card Systems and Sagem Orga.

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Expedia to Power Citi’s ThankYou Network

Expedia.com and Citigroup have inked a deal to expand the “ThankYou Network”. Founded by Citigroup, the 10 million-member ThankYou Network is a free rewards program that lets members get points for doing what they already do — from using eligible Citi credit cards, banking at Citibank with an eligible checking account, and now, booking eligible travel on Expedia.com – and combine these points all in one ThankYou Member Account. ThankYou Network takes rewards programs to the next level by allowing members to pool points from multiple activities so they earn points and redeem for rewards faster. Expedia.com is the world’s leading online travel provider, helping more than 25 million travelers per month easily plan and book travel. Citigroup (NYSE: C), the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management.

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Hypercom’s Optimum M4100 Blade Goes Global

Hypercom has taken its “Optimum M4100 Blade” global. The new mobile credit/debit terminal is designed to comply with current global security standards and the smallest product of its kind. It is equipped with both Wi-Fi and GPRS wireless communication technology, is PCI PED and EMV Level 1 & 2-certified. Hypercom says its product, for the first time, enables credit cards to be used to pay for at-home restaurant deliveries, goods purchased at art festivals and craft shows, concessions at sports stadiums, in-flight purchases, and in other settings without wired connections including areas where the cost of wired communications is prohibitive.

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Major PayPass Pilots Set for France

MasterCard has launched two major new “PayPass” pilots in France and extended an existing pilot with the Royal Bank of Scotland Group in the UK. The French projects, in Strasbourg and Toulouse, will be the first trials of contactless EMV1 chip-based MasterCard credit payments in Europe, while the flagship project with RBS is the first trial of contactless debit payments in the region. In Strasbourg, MasterCard will support a seven company-strong consortium, including Groupe Credit Mutuel, CIC and NRJ Mobile, to enable 200 residents to make contactless payments via mobile phones at 50 retailers in the city. In the first EMV-enabled mobile commerce trial of its kind, the specially designed phones from Sagem will contain EMV-compatible SIM cards from Gemalto, contactless readers from Sagem Monetel and Near Field Communication electronic chips designed by Inside Contactless. In Toulouse, MasterCard will work with LaSer Cofinoga, the consumer finance arm of Groupe Galeries Lafayette, to enable a thousand of the latter’s customers to test a contactless payment card at participating Galeries Lafayette and Monoprix stores throughout the city. It will be the first contactless EMV-enabled multi-application card in Europe, for use in retailers and for public transport in the city.

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