Fiserv Offers an Off-the-Shelf STV Card

Fiserv EFT has introduced an off-the-shelf prepaid gift card product suite for financial institutions of any size. With the customizable gift card solution, each participant is the card issuer of a Visa or MasterCard gift card sold directly to buyers in a branch location or via a financial institution’s Web site. Fiserv EFT provides the complete processing environment for the gift card program, including authorization and settlement services, card fulfillment, risk management controls and 24×7 customer service. Financial institutions can instantly issue gift cards in the branch or have buyers complete their gift card purchases via the Internet. Fiserv EFT provides ATM and debit services and serves 2,800 financial institutions across the United States with reported revenue of $3.4 billion in processing and services revenues for 2004.

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Credit Card Debt Growth Stays in Double Digits

Credit card debt neared the A$32 billion milestone in September as
charge volume retreated after a one-month spike in gas prices. Over the
past twelve months, credit card debt has increased 14.3% while credit
card volume has risen 5.8%. Volume has been dampened by new card
regulations that give retailers the option to surcharge customers for
using a credit card. One-year ago credit card debt stood at A$28
billion. Gross dollar volume on credit card and charge cards in
September was A$14.5 billion, compared to A$15.3 billion in the prior
month. Based on data from the Reserve Bank of Australia, consumers
charged A$13.5 billion in purchases on credit/charge cards during
September, compared to A$12.7 billion one-year ago. Card credit limits
reached A$89.0 billion at the end of September, compared to A$78.7
billion for September 2004. There are currently 12.3 million credit card
and charge card accounts in Australia, compared to 11.4 million one-year
ago.

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Pipeline’s Q3 Profits Double Despite Katrina

Massachusetts-based Pipeline Data reported that third quarter revenue soared by more than 50% and that gross profit has doubled. Gross revenue was $6.3 million for the three months ended September 30th and gross profit for the same period was $1.6 million. The Compnay noted that the gross revenue results were hampered somewhat by the effects of Hurricane Katrina. During the third quarter Pipeline Data acquired IL-based World Products, d/b/a AIRCHARGE, for $200,000 in cash, $525,000 in the form of a promissory note and 900,000 shares of Pipeline’s stock. The Company also executed a merger agreement to acquire Florida-based merchant acquirer, Charge.com, for $17 million. Pipeline offers wireless mobile payment, e-commerce solutions and retail merchant payment. The Company has more than 15,000 accounts. For complete details on Pipeline’s third quarter performance visit CardData (www.carddata.com). (CF Library 7/20/05; 8/17/05)

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LG Card Rides Profit Train as Creditors Sell-Out

South Korea’s second largest credit card issuer has posted $1.14 billion in profit for 2005 after earning $352.2 million in the third quarter. However, controlling interest in LG Card is on the sale block as its creditors this week named JP Morgan Chase as the lead manager for the sale, according to today’s issue of CardFlash International. Korea Development Bank and other creditors are seeking to unload their combined 51% stake in LG Card by the end of this year. The expected sale price is expected to be in the $4.8 billion range. LG Card has posted four consecutive quarters of solid profitability. In the third quarter of 2004, the issuer reported a $45.4 million loss. Since then, LG Card has earned $1.42 billion. In the first quarter of this year, the issuer earned $465.0 million.

LG CARD NET INCOME
3Q/04: -$45.4 million
4Q/04: $315.7 million
1Q/05: $283.0 million
2Q/05: $465.0 million
3Q/05: $352.2 million
Source: CardData (www.carddata.com)

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eFunds to Drive 65,000 USPS POS Devices

eFunds has expanded its agreement with the United States Postal Service and will now drive transaction processing at more than 34,000 USPS locations and 65,000 POS devices nationwide plus 2,500 self-serve kiosks. Under the new agreements, USPS will have direct control over its back office operations and business functions, indirect control over its own payment switch through eFunds and a flexible platform designed to support new business initiatives. eFunds Corporation provides electronic payments and risk management.

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Anglia Society Selects the TNS Network

The Anglia Society has selected Transaction Network Services for an IP-based solution to reduce the time it takes to
authorize credit card transactions. The solution will provide Anglia
with the fastest way to securely authorize credit card transactions with
the acquiring banks. Payment data from the 400 till points across
Anglia’s 75 stores will be securely transported over TNS’ private
network, providing a high-speed digital connection for card
authorization. Anglia Society is the sixth largest co-operative society in the country. Transaction Network Services provides data communications services for transaction-oriented applications.

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FanBox and Transax Integrate Platforms

FanBox and Transax Technologies have announced the full integration of
“MS2”, FanBox’s technological platform. The “MS2” platform provides real
time transaction management and integrated marketing tools. In addition,
an electronic currency exchange solution is nested in the gift card
management portion, providing computer-assisted management in any retail
chain environment. The new “all-in-one” solution enables the merchant
to use a single banking terminal for credit cards, debit cards, loyalty
cards and gift cards. The new product is offered in real time through a
telephone or high-speed Internet connection. Integration directly into
cash register systems and ecommerce Web site is also available. FanBox
provides management of loyalty programs, gift cards and communities of
interest. Transax Technologies sells and services ATMs and POS terminals.

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Hypercom & Innova Card Team for Next Gen

Innova Card and Hypercom have partnered to develop new products integrating the “USIP Professional IC” or universal secure integrated platform. USIP Professional IC is an EMV and FINREAD compliant System on Chip (SoC) that integrates all the security and application management functionalities required to build new generations of trusted devices, providing a large set of patented security and cryptographic features that facilitate application development and enhance the global security level of point-of-sale/point-of- interaction products.

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Diebold Opteva ATM Integrates Biometric

Diebold has introduced biometric automated teller machines into South
America. The Opteva line of ATMs uses the company’s Agilis software and
Windows XP operating system to integrate biometrics, shifting the focus
of user recognition. The biometric technology, using the geometry of
the index finger, can be substituted for either the conventional
personal identification number or the magnetic stripe card. Diebold
created middleware that runs on its Agilis software platform and allows
customers to apply any biometric technology they choose to the ATM.
Customers are not obligated to use a particular biometric device from a
specific supplier. To access Diebold’s biometric ATMs, consumers
simply enroll with their financial institution, which collects personal
information that is paired with biometric data. The institution then
issues a PIN to be used in conjunction with the fingerprint scan when
conducting ATM transactions.

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Wright Express Renews EFS Fleet Card Deal

Enterprise Fleet Services has inked a three-year contract extension with Wright Express for a cobranded fleet card. Enterprise Fleet Services has 48 group offices throughout the country, specializing in fleets of 15-125 vehicles offering Fleet Management products and services, including the Wright Express card. Wright Express is a provider of payment processing and information management services for more than 298,000 commercial and government fleets containing more than 4.2 million vehicles.

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APACS Says Issuers have Improved Transparency

Payments association APACS has released a new report that outlines credit card industry initiatives which have been
implemented to improve transparency in the credit card industry. The “Responsible Lenders, Responsible Borrowers” report follows up an agenda established last year by the Treasury Select Committee. The report outlines how the industry has delivered on that agenda and is working to encourage responsible lending and borrowing decisions. For example, the extended use of the Summary Box and the launch of a Web site in July that offers consumers impartial advice on credit cards. Many of the changes and initiatives outlined in the report are part of the new
Banking Code, published in March this year.

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