Moneris Launches Gift Card Program

Moneris Solutions has launched a gift card program via Ernex, its loyalty and stored-value division. The Small Business Gift Card Program provides merchants with new merchandise in the form of a point of purchase product, offers ease of use, a revenue “lift” that encourages customers to spend more than the initial value of the card, captive money that can only be used by the issuing business and offers flexibilty to the customer.

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Former MC CEO Joins VeriFone Board

VeriFone has named Pete Hart, former President and CEO of MasterCard, to its Board of Directors. Hart served as President and CEO of Mastercard International from 1988 to 1994. Concurrently, he also served as Chairman of the Board of Maestro International and was a member of the board of Europay International. He was the founding Chairman of the Board of CIRRUS, former President and CEO of First Interstate Services Company, and former General Manager of the Card Services Group of First National Bank of Chicago. Hart is a graduate of Harvard University.

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Natl City Offers VISA TravelMoney

National City is now selling a non-personalized, instant-issue version of the “VISA TravelMoney” prepaid travel card in its network of more than 1,200 branches across seven states. Visa TravelMoney can be used to make purchases at any Visa debit merchant worldwide, as well as to obtain cash via ATMs displaying the Visa or Plus logo or via cash advance at participating financial institutions. Cardholders can obtain their balance, review transaction history and reload more value (up to 3 times beyond the initial load) online or by phone 24 hours a day, seven days a week. All customers who purchase a Visa TravelMoney card at a National City branch from now until August 31, 2006 will receive a $25 Marriott Bonus Bucks Coupon as a special thank you from National City. National City Corporation is a financial holding company.

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GECF Launches a PayPal Credit Card

GE Consumer Finance has launched a new PayPal credit card and also plans to launch an eBay-branded credit card. The new “PayPal Plus MasterCard” credit card earns one “Reward Point” for every $1 spent in purchases. For every 2,500 points earned, customers receive a coupon for $25 towards eBay.com purchases made with PayPal. Cardholders also have the option of linking the “PayPal Plus” credit card to the PayPal debit card as a backup funding source. The new “Plus Card” is an expansion of the relationship originally created in June 2004 for GE to offer “PayPal Buyer Credit,” a private label revolving credit line available to registered PayPal customers. GE Money Bank will issue the card. In 2001, Providian launched the co-branded “PayPal VISA” card. In 2003, MBNA and Providian both issued the “eBay Anything Points MasterCard.” (CF Library 10/2/03; 6/18/03)

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NCR Names a New General Counsel

NCR has hired Peter Lieb, former SVP and general counsel at Symbol Technologies, as SVP, general counsel and secretary of the company. NCR Corporation announced the appointment of Peter Lieb as senior vice president, general counsel and secretary of the company. Prior to joining Symbol in 2003, Lieb served in various senior legal positions, including vice president and deputy general counsel, at International Paper Company and, before that, was assistant general counsel at GTE Service Corporation. Early in his legal career, Lieb was a law clerk to U.S. Supreme Court Chief Justice Warren Burger. Lieb holds a law degree from the University of Michigan and a bachelor’s degree from Yale College.

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OTI’s First Quarter Revenues Jump 38%

NJ-based On Track Innovations reported that revenues increased 38% in the first quarter to $9 million and that its loss increased 17% to nearly $2 million. Licensing and transaction fees rose 26% to slightly more than $1 million, year-on-year. The Company is investing heavily into contactless solutions. During the first quarter, OTI delivered key fobs to Taipei Fubon Bank as part of the “2006 FIFA World Cup” promotion; acquired InSeal SAS; received Vital “Class A” approval for the “Saturn 5000” contactless reader; and OTI “EasyFuel” entered Costa Rica and Peru. OTI’s international headquarters are located in Rosh Pina, Israel. For complete details on OTI’s first quarter performance, visit CardData ([www.carddata.com][1]).

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

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VISA’s Board Adds CSCU President

VISA USA has named Robert Hackney, president of Card Services For Credit Unions, Inc. to its board of directors. Hackney will also serve on the board’s Audit and Risk Committee. CSCU is the largest credit union card processing association in the U.S., serving 3,500 members. One month ago VISA added its first four independent members. The new members are part of an ongoing effort by VISA to transform its governance structure. The independent directors will also be members of a new “Independent Directors Committee” to oversee management’s recommendations on interchange reimbursement fees, member transaction processing and service fees as well as other core economic matters. (CF Library 5/1/06)

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APR CARD DEBT

New borrowing on credit cards rose GBP 100 million in April, compared to a decline of GBP 200 million in the prior month. However, the figure was in-line with the six-month average of about GBP 100 million. The British Bankers Association says overall lending to the U.K. private sector showed a net underlying increase of GBP 16.7 billion (+1.4%) to GBP 1,206 billion. This was weaker than last month’s underlying rise of GBP 23.3 billion, but stronger than the average over the previous six months. The BBA says even though consumer credit increased in line with recent patterns, it followed the previous month’s net repayment. Looking at the two months together, it is clear that consumers were showing little appetite to take on additional unsecured borrowing. Last year, credit card borrowing fell in three separate months, dropping a record GBP 146 million in August. The BBA collects data from Abbey National, Alliance & Leicester, Barclays, Bradford & Bingley, HBOS, HSBC Bank, Lloyds TSB, Northern Rock and The Royal Bank of Scotland.

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Average CU Portfolio Sale Inches Upward

The average credit card portfolio sold by a credit union is up slightly this year to $7.5 million, the highest in at least five years. During the first quarter 13 credit unions with portfolios of more than $1 million in outstanding balances sold their portfolios, compared to 22 in 1Q/05. According to NH-based Brookwood Capital total balances sold during the quarter were approximately $97 million, compared to $147 million during the same period one-year ago. The brokerage firm says credit union portfolios are nearly always profitable, but many smaller issuers are trying to find ways to issue a stronger product set while lowering their institutional credit risk and fraud exposure while increasing the bottom line. Brookwood Capital specializes in credit union credit card deals.

CU PORTFOLIO SALES
Year Total Outstandings Average
2002 41 $285 million $7.0 million
2003 59 $419 million $7.1 million
2004 67 $459 million $6.9 million
2005 65 $481 million $7.4 million
1Q/06 13 $ 97 million $7.5 million
Source: Brookwood Capital

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