Diebold’s Q3 ATM Revenue Rises 14%

Diebold posted third quarter revenue of $730.7 million, up 17.4% from 3Q/05. Net income for Q3 was $29.5 million, compared to net income of $13.5 million in the third quarter of last year. The Company says profits were impacted by restructuring charges. During the quarter, Diebold completed a successful pilot production program at its new manufacturing facility in Budapest, Hungary, and received the necessary governmental quality certifications needed to begin shipments to customers. The plant is operating according to plan and is expected to produce more than 1,000 “Opteva” ATMs in the fourth quarter. Diebold’s ATM business or “Financial Self-Service” revenue was up 14.4% for the quarter, led by an increase of 22.8% in the EMEA region. The Company expects full-year 2006 revenue for its ATM business is grow between 5% and 7%. For complete details on Diebold’s third quarter results, visit CardData ([www.carddata.com][1]).

DIEBOLD REVENUE HISTORICAL
3Q/05: $622.3 million
4Q/05: $817.6 million
1Q/06: $623.7 million
2Q/06: $726.4 million
3Q/06: $730.7 million
Source: CardData (www.carddata.com)

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

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ATM Surcharges Set a Record High

A new survey has found that ATM surcharges set a record high of at $1.64, up from $1.60 in the spring. Bounced check fees also hit a new high of $27.40, up from $27.04 six months ago. Bankrate’s fall “2006 Checking Study” also found that fewer banks are charging their own customers for using another bank’s ATM. The survey found that the percentage of banks with ATMs jumped notably over the past two years from 91% in fall 2004, to more than 98% now. The fee charged when an accountholder uses another bank’s ATM declined for the second time in a row, and is now the lowest in more than four years. The average fee dipped from $1.29 to $1.25, with the number of banks increasing the fee slightly outnumbering those that reduced the fee, 22-19. Bankrate notes that although the prevalence of the ATM surcharges and the average fee assessed to non-accountholders have both increased in the past year, it is the decline in the non-bank ATM fee and the decreased prevalence of the fee that has the biggest effect.

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DCS’ CardWizard Expands in Kentucky

KY-based Commonwealth Bank & Trust Company has implemented Dynamic Card Solutions’ “CardWizard,” for instant issue and PIN selection software application, throughout its branch locations. The CardWizard product is providing instant issue convenience in 11 of Commonwealth’s 13 branches and will be available at new branches as they open. DCS’ CardWizard instant issue software provides an easy and secure method to instantly issue and re-PIN cards, along with a user-friendly administration component that allows for full reporting, card inventory management, robust security and monitoring features required for instant issue. Additionally, DCS provides solutions for customer-selected PIN and re-PIN processes that complement its CardWizard integrated instant issuance platform. Commonwealth Bank was formed as a community bank focused on the financial needs of the economy with an emphasis on personal service and quality products. Dynamic Card Solutions is an innovative developer of instant issuance and PIN selection solutions for banks, credit unions and retailers.

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Vince Young Lands a Prepaid VISA Card

TX-based NetSpend has launched the “Vince Young All-Access VISA” prepaid card to coincide with Young’s first NFL game against his hometown NFL franchise, the Houston Texans. The card can be purchased now for $9.95 at authorized NetSpend agents in Texas and Tennessee. These include Money Box and PLS Financial Services locations throughout Texas; ACE Cash Express in Austin, Houston and throughout Tennessee; and Harpeth Financial Service locations in Tennessee. NetSpend’s Vince Young Prepaid Card features the celebrated quarterback sporting his trademark skull cap, diamond stud and number 10 jersey, along with his autograph. With the Vince Young Visa Prepaid Card, cardholders can make purchases at millions of worldwide merchant locations and Web sites everywhere Visa debit is accepted, and cardholders can add funds to the card at any one of thousands of NetSpend partner retail locations nationwide. NetSpend Corporation is the leading provider of innovative, accessible prepaid debit cards that enable financial freedom and growth for self-banked consumers.

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Alternative Payments Summit Planned

A summit on alternative payments has been set for November 28th and 29th. The PELORUS Group conference will explore opportunities emerging from contactless cards, prepaid and stored value cards, and biometrics while it also seeks to clarify their impact on the traditional payments model. Featured presenters include Robert DeFranco, VP, MobileLime; Paul Lufkin, CEO, ePayments; Brian Triplett, SVP Emerging Product Development, VISA; Ashvin Lad, Product Manager, Discover; Amir Wain, CEO; i2c; Pam Zuercher, VP Product Innovation & Coordination, VISA; and R.Scott Hatfield, Founder, Debitman. The summit will held in San Antonio, TX.

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Americans Not Savvy on ID Theft

A new report reveals that 44% of consumers do not realize that their personal information can be used to obtain a mortgage and 32% do not know that thieves can obtain a drivers license or photo ID card with such information. The survey from Capital One and Consumer Action found that 93% of Americans are well aware of the growing crime of identity theft. About 15% do not realize that their personal information can be used to open lines of credit for products such as credit cards, while 24% do not know that identity thieves can use their information to apply for a job. Consumers were equally unaware of the steps they should take if they are victims of identity theft.

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Comdata Third Quarter Y/Y Revenues Climb 13%

Minneapolis-based Ceridian reported that third quarter revenue for its Comdata payments unit increased 13% year-on-year to $123.8 million. The Company said higher fuel prices accounted for about 1% of the increase. Both Comdata’s transportation and retail businesses grew in double digits during the quarter, driven by new client signings, continued traction in new service offerings, and strong organic growth both domestically and internationally. During the third quarter, Comdata released two surveys one showing that a third of teenagers are purchasing gift cards at gift card malls and another one showing that 95% of adult survey respondents stated that they had either received or purchased a gift card, a 24% gain over the prior year. Comdata also recently announced a new brand identity to consolidate all of Comdata’s business units under the Comdata name. Comdata projects revenue for 2006 is expected to be between $460 million and $465 million. For complete details on Ceridian’s third quarter performance, visit CardData ([www.carddata.com][1]).

COMDATA REVENUES
3Q/05: $109.5 million
4Q/05: $104.7 million
1Q/06: $104.4 million
2Q/06: $115.8 million
3Q/06: $123.8 million
Source: CardData (www.carddata.com)

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

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MasterCard Worldwide is Company of the Year

MasterCard has been awarded the 2006 Frost & Sullivan “Company of the Year Award” for its performance in the contactless payment market. The annual award is given to a company that has demonstrated excellence within its industry. Several factors were assessed for the award, including MasterCard’s business development, competitive strategy and market leadership. MasterCard Worldwide advances global commerce by providing a critical economic link between financial institutions, businesses, cardholders and merchants worldwide.

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NCR’s ATM Business Flat in the Third Quarter

NCR reported that third quarter revenue for its ATM business was $349 million, flat compared to one-year ago. Operating income was down from $60 million in 3Q/05 to $43 million. NCR says an adverse geographic revenue mix shift resulted in lower margins and under-absorption in NCR’s North American manufacturing facility. However, the company’s newly opened manufacturing facility in Hungary should produce incremental cost reductions in the future. Retail Store Automation Q3 revenue was $219 million, up 5% from 3Q/05. Revenue growth was led by double-digit growth in self-service technologies, which includes retail self-checkout systems and other self-service kiosks that enable customers to pay bills and check-in at airports, hotels and hospitals. Operating income of $12 million increased from $9 million in the year ago quarter. NCR is increasing its prior earnings guidance for 2006, now expecting to generate GAAP earnings per share in the $1.90 to $1.95 range. For complete details on NCR’s current and past performance, visit CardData ([www.carddata.com][1])

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

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Affluent Parents Spend Big on Children’s Travel

The “Third Annual American Express Platinum Luxury Survey” has found that 69% of affluent parents say they planned three vacations with their children in 2006 with a total expenditure of $10,067 — more than double the average annual expenditure by affluent parents for vacations taken without children ($4,524). The survey, which included 1,170 respondents with an average of two children and an average household income of $472,000, also revealed that children are being given a view of the world at an earlier age than their parents. American Express Travel is the largest travel agency in the world, committed to delivering superior quality, expertise, value, 24/7 service, and the choice and flexibility to plan and book a trip online, by phone, or in- person. American Express Company (http://www.americanexpress.com) is a leading global payments, network and travel company founded in 1850.

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OTI to Provide Contactless Readers for G6 e-Port

USA Technologies has selected OTI to provide its next generation contactless reader solution to be integrated into its “Generation Six e-Port” cashless transaction solution, developed specifically to accept contactless payments for vending machines. To use this technology, consumers simply tap their contactless-enabled card or device on the vending machine’s e-Port payment terminal. Within seconds, the terminal will flash a light and produce a tone signaling the transaction is complete. OTI *(NASDAQ: OTIV)* designs, develops and markets secure contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management.

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BofA Chooses USA Technologies’ e-Port Vending

Bank of America has chosen USA Technologies’ “e-Port” cashless vending services for their program to evaluate RFID cashless payment devices. The bank’s evaluation follows the deployment earlier this year of 1,000 cashless Coca-Cola vending machines in Philadelphia equipped with the e-Port G6 to accept MasterCard’s “PayPass” contactless card payment system. The Philadelphia deployment was the first mass installation of the e-Port G6 in a major market. Bank of America, one of the world’s largest financial institutions and card issuing companies, is the first bank to target the $40 billion vending market for credit card and other cashless payment transactions. USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management.

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