Dynamic Card Solutions 05 Revenue Up 50%

Colorado-based Dynamic Card Solutions, developer of CardWizard, reports 50% revenue growth last year, driven by orders from large regional banks. In addition to new contracts, numerous existing customers expanded their deployments of DCS’ instant issue solutions as well. Current customers include banks and credit unions such as Wachovia, Virginia Commerce Bank, Desert Schools Federal Credit Union and Dallas Telco Credit Union. Dynamic Card Solutions is a developer of instant issuance and PIN selection solutions for banks, credit unions and retailers.

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FDIC Helps Consumers Fight Identity Fraud

The FDIC has released an on-line multimedia education tool that consumers can use to learn how to better protect their computers and themselves from identity thieves. Some of the steps outlined in the presentation that consumers can take to help safeguard their computers and their personal information from identity theft are: never provide personal information in response to an unsolicited telephone or Internet request; never provide a password over the phone or in response to an unsolicited Internet request; review account statements regularly to ensure all charges and transactions are correct; and use a firewall and anti-virus and spyware protection software.

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Brits Card Borrowing Weaker than Expected

New borrowing on credit cards in the UK totaled GBP 7.7 billion in December, 3% higher than the previous month. However, the increase in net lending of GBP 237 million compared with a recent average increase of GBP 162 million. The British Bankers Association says consumer borrowing in December was weaker than seasonally expected. Growth in card borrowing was the same as in December 2004, whilst demand for structured personal loans was particularly weak. 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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DEC DEBT

New borrowing on credit cards totaled GBP 7.7 billion in December, 3% higher than the previous month. However, the increase in net lending of GBP 237 million compared with a recent average increase of GBP 162 million. The British Bankers Association says consumer borrowing in December was weaker than seasonally expected. Growth in card borrowing was the same as in December 2004, whilst demand for structured personal loans was particularly weak. 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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Card Outstandings Post Worst Gain in 05

Last year turned out to be the worst year for growth in credit card outstandings in the industry’s history. The top five issuers, who control more than $400 billion in outstandings, posted a paltry 1% year-on-year gain, with Citigroup and Discover posting losses of about 3%. Chase assumed the number one position in 2005 after its merger with Bank One, posting a 5% annual gain. Bank of America also posted a respectable 3.8% gain, not including the results of its recent merger with MBNA. The overall sluggish performance of the Top 5 is attributed to debt consolidation via lower-rate home equity loans, debit card usage, and the backlash over aggressive pricing including high punitive APRs and associated fees.

Top 5 U.S. Issuers Managed Outstandings
Rank/Issuer 4Q/04 4Q/05 Chng
1. Chase $135.4b $142.3b +5.1%
2. Citi $118.1b $113.7b -3.7%
3. BofA $ 58.6b $ 60.8b +3.8%
4. Disc $ 48.3b $ 46.9b -2.9%
5. Cap One $ 48.6b $ 49.5b +1.9%
TOTAL: $409.0b $413.2b +1.0%
Source: CardData (www.carddata.com)

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Citibank Expands Texas ATM Network

Citibank has added approximately 150 ATMs to its distribution network in Texas bringing its total to 500 ATMs with free access for its customers. Citibank customers now have free access to over 500 ATMs in the Texas including ATMs at Citibank locations, Murphy USA Stations located in Wal-Mart Super Center and Neighborhood Market parking lots, Minyard Food Stores, and MoneyPass ATMs. Citibank has approximately 10,000 proprietary ATMs around the world including 2700 in the U.S.

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American Express Launches RED to Fight AIDS

American Express has teamed with U2’s Bono and Bobby Shriver, Chairman of DATA (Debt, AIDS, Trade, Africa), to produce money to help fight AIDS in Africa. The new “American Express RED3” card will be available March 1st according to last week’s CardFlash International. For every pound spent on the card, American Express will donate a minimum of 1% to the Global Fund. Spending above GBP 5,000 per year will generate an increase of 1.25% on all spending above that amount and an extra GBP 5 will be given to the Global Fund if cardholders make their first purchase on the card within the first month. “RED” is a global initiative whose primary objective is to engage the private sector in the fight against AIDS in Africa by channeling funds from the sale of “RED” products directly to the Global Fund To Fight AIDS, Tuberculosis and Malaria.

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Shift4 Processes $15B in 05 Transactions

Shift4 reported it processed nearly $15 billion in payments, representing over 92 million transactions for more than 11,000 merchants in 2005, double that of 2004. Contributing to the growth was the signing of new customers, including Choice Hotel’s International, Puma North America and Gucci, who selected $$$ ON THE NET to process their credit, debit, gift card and check transactions. A key factor in Shift4’s growth was the national exposure of its inaugural Transaction Security Summit and the leadership role it has commandeered in the payment processing industry. Shift4 provides web-based enterprise payment solutions for the hospitality, retail, foodservices and e-commerce markets.

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MasterCard & Citi Take NYC Contactless

MasterCard and Citi have agreed to work with the Metropolitan Transportation Authority and MTA New York City Transit to conduct a trial of contactless payments in select New York City subway stations with pre-selected Citi customers. During the trial, participating customers will have the pay-per-ride option, including the 20% bonus, available to them. No passes or transfers to buses will be available. The trial will take place at select Lexington Avenue Line 4 5 6 stations. The trial is scheduled to begin in the Spring and is expected to last approximately six months.

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