United Choices Off to a Flying Start

United Airlines says its recently launched “Choices” enhancement to its “Mileage Plus” credit card program has generated strong cardholder acquisitions and spending. UAL reported net income of $119 million, an increase of $145 million excluding reorganization and special items over the comparable second quarter of 2005. Basic earnings per share was $1.01 and diluted earnings per share was $0.93. United Airlines (Nasdaq: UAUA) operates more than 3,700* flights a day on United, United Express and Ted to more than 210 U.S. domestic and international destinations from its hubs in Chicago, Denver, Los Angeles, San Francisco and Washington, D.C.

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Older Consumers Struggling with Debt

A new study suggests that older consumers have been increasing their debt loads, including credit card debt, and filing bankruptcy in record numbers. The report from the National Consumer Law Center says elders are increasingly using credit to pay for necessities like groceries, prescription drugs, and urgent house repairs. The NCLC says many fall victim to abusive creditor practices such as punitive interest rates and fees as well as credit line changes. The non-profit group says there is little margin for error with older populations as some are sacrificing their security to service debt.

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Dexit Explores a Possible Exit

Toronto-based Dexit, a pioneer in contactless small transactions, has hired Kirchner and Company to review its strategic options. KCI is a boutique, U.S. based investment bank specializing in advising small to mid sized technology based companies on M&A and turnarounds. Dexit Inc., based in Toronto, has pioneered an “instead of cash” electronic payment facilitation service for small transactions (generally under $25).

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Pemco Technologies Signs a MO CU

MO-based River Region CU has selected Pemco Technologies for processing of its VISA “Platinum,” “Classic,” and “Affinity” cards. River Region Credit Union has been proudly serving its members since 1954. Pemco Technologies provides innovative payment solutions to the financial industry including credit and debit card processing, ATM acquiring and switching, cardholder award programs, fraud management, and gift card programs.

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Pay By Touch is Rated a Top Company

San Francisco-based Pay By Touch has been named to the “AlwaysOn AO100 List” as one of the top privately-held companies. The AO100 List recognizes the 100 most innovative and successful private firms in the United States based on market potential, customer adoption and investor value. Pay By Touch is the global leader of biometric authentication, personalized rewards, and payment solutions. The company’s patented biometric products and services enable shoppers to conveniently and securely access personal accounts using a finger scan to identify themselves, make purchases, cash checks, and earn rewards.

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ORCC and Corillian Ink a Reseller Deal

VA-based Online Resources and OR-based Corillian have expanded their referral arrangement to a multi-year reseller agreement wherein Corillian will offer ORCC’s bill payment and customer care services, providing its clients an integrated source for online banking and bill payment services. Corillian software enables online banking to an estimated 30 million consumers through its more than 120 bank and credit union customers. Online Resources provides bill payment and other web-based financial services to over 3800 clients through a variety of direct and distribution partnerships. Corillian is a market leader of online banking, bill payment and fraud prevention applications to the financial services industry.

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Debt Resolve Plans a Fall IPO

NY-based Debt Resolve, which holds a patent for an online bidding system for consumer debt, is planning its IPO for this fall and expects to raise $12.5 million. DebtResolve completed a $3.5 million interim note and warrant financing in June 2006. Debt Resolve, Inc. provides lenders, collection agencies, debt buyers and utilities a patented online bidding system for the resolution and settlement of consumer debt which can be used at all stages of collection and recovery.

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Global Payments Profit Up 32% in Q2

Atlanta-based Global Payments Inc. reported that revenues for the quarter ending May 31st increased 15% to $238.8 million. Net income for the quarter jumped 32% to $34.1 million. GPN says the growth was driven by its North American direct merchant channels and the DolEx-branded consumer money transfer channel. During the quarter Long Island-based EVO Merchant Services renewed its multi-year processing agreement with GPN for services including authorization, draft capture, settlement and BIN sponsorship. Also, NY-based Diversified Acquiring Solutions Sales signed a GPN deal for end-to-end processing services and an integrated gateway solution for its retail and restaurant merchants. Additionally, GPN signed an agreement with ACH Direct to provide front-end credit card authorization services and back-end settlement for MasterCard and VISA transactions. The Company notes it is making solid progress with its Asia-Pacific joint venture with HSBC. For GPN’s 2007 fiscal year, which is now underway, annual revenue guidance is set at $1,048 million to $1,084 million, or 15% to 19% growth versus $908 million in fiscal 2006. For complete details on Global Payments latest results, visit CardData ([www.carddata.com][1]). (CF Library 4/12/06; 5/12/06; 5/18/06)

GPN HISTORICAL
PERIOD REVENUES NET INCOME
2Q/05: $207.7mm $25.9mm
3Q/05: $224.5mm $31.3mm
4Q/05: $219.7mm $31.3mm
1Q/06: $225.2mm $30.1mm
2Q/06: $238.8mm $34.1mm
Source: CardData (www.carddata.com)

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

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Chase Contactless Cards Approach 7MM

Chase “blink” cards continue to drive the U.S. contactless payment card market as nearly seven million cards have been issued to-date. Chase was the first issuer to broadly offer contactless credit cards in the U.S., introducing “blink” last May. Cardholders in Connecticut, Colorado, Delaware, Florida, Georgia, New Jersey, New York, Pennsylvania and Texas now have “blink”-enabled Chase cards. Chase also offers “blink” rewards cards with partners such as the Los Angeles Dodgers, Regal Entertainment Group, Sheetz, Texas Rangers, Wawa, Southwest Airlines, United Airlines and Universal. Chase says its research shows the one-year old contactless card increases the average ticket sale for some merchants by 40% more than cash purchases, and reduces consumers’ average transaction time by 10% to 40%. (CF Library 5/19/05; 6/8/05; 8/30/05; 10/27/05; 1/11/06)

Chase blink Cards
Jun 05: 0.5 million
Jul 05: 1.0 million
Aug 05: 1.5 million
Oct 05: 5.0 million
Jan 06: 6.0 million
Jul 06: 7.0 million
Source: CardFlash Library

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Virgin and NetSpend Issue a Youth Card

Virgin Mobile and NetSpend have teamed to launch the “Stash Prepaid VISA Debit Card” for the youth market. The new card is linked to a Virgin Mobile phone, enabling users to earn free airtime as well as money transfers and wireless text alerts. The new card will be issued by Inter National Bank. Cardholders can load funds onto their “Stash” cards at NetSpend partner retail locations across the country and maintain up to a $10,000 balance. Virgin Mobile phones are available at more than 25,000 stores in the U.S., with “Top-Up” cards available at more than 100,000 locations nationwide. The Company has about four million customers. Virgin Mobile is a joint venture between Virgin Group and Sprint Nextel.

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Wincor to Offer Hypercom’s Optimum

Germany and Austin-based Wincor Nixdorf has signed a reseller agreement to bundle Hypercom terminals into its total solution package. Under terms of the deal, Wincor Nixdorf will provide Hypercom’s multi-lane “Optimum” payment terminals as a key part of its total solutions for grocery and c-stores, mass merchandisers, specialty retailers and QSRs in the U.S. The agreement follows certification of “Optimum” terminals for Wincor Nixdorf POS software. Both companies anticipate expanding the offering to global markets. Hypercom’s multi-lane terminals include the the “Optimum L4100,” “L4200” and “L4250.”

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