INTERAC & HYPERCOM

The Interac Association has approved Hypercom’s “Optimum L4105” multi-application credit/debit terminal for use within the IDP network.
The signature capture card device enables large, multi-lane retailers, with stores in both the U.S. and Canada, to establish integrated cross-border payment systems. The “L4105” offers a 200Mhz 32-bit
Intel “XScale” processor; a 64K color 5.7″ 1/4 VGA screen; bi-directional, a dual-sided intelligent magnetic stripe reader; an advanced screen protection and replacement system; multiple connectivity options; and an optional contactless RFID reader. In 2000, IDP
surpassed cash for the first time as Canadians’ preferred way to pay for
purchases.

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TSYS Renews Long-Standing Metavante Contract

TSYS has renewed its processing agreement with Metavante Corporation, continuing the longest relationship that TSYS has maintained with any single client. TSYS has delivered consumer and commercial credit card account processing services to Metavante since 1979. Metavante is a wholly owned subsidiary of Marshall & Ilsley Corporation. TSYS provides outsourced payment services.

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Most Children Have Received a Gift Card

The first survey on children and gift cards shows that the majority of children aged 5-14 have received or purchased a gift card. The annual Stored Value Systems survey found that four out of five parents say that they have purchased a gift card for their child or that their child has received a gift card. In fact, parents say they purchased slightly more than three gift cards for children, both for their own or for others, in the past year with an average value of $29. On average, parents have purchased two gift cards for their own child in the past year. Seven in 10 children spend gift cards within one month of receiving them.

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Paymentech Introduces Express Aerial

Paymentech Canada has introduced the portable “Express Aerial”
terminal from American Express. The “Express Aerial” is cordless and has
a range of 30 meters inside and 100 meters outside, the terminal can be
taken directly to the customer, making payment at the table
quick and easy and providing peace of mind for customers as they do not
lose sight of their credit or debit card during the payment process.
Last year, Paymentech processed 8.5 billion transactions (U.S. and Canada) and $200 billion bankcard volume in 14 currencies.

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VISA USA Offers Largest Prize Pool To-Date

VISA USA unveiled its fourth quarter holiday promotion, “VISA’s $1.5 Million Holiday Giveaway,” an integrated marketing campaign awarding an unprecedented 50,000 winners with $25 prizes, plus a grand prize of $250,000 from the largest prize pool VISA has ever introduced for a fourth quarter promotion. The integrated program will combine a national advertising campaign, an interactive online component and a comprehensive consumer giveaway. From November 1 to December 31, 2005, VISA cardholders will be automatically entered for a chance to win by using a VISA card to make purchases, online or offline, at millions of merchant locations or entries can be made online at the VISA website.

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TNS Lands CardPoint CEO for POS Division

VA-based Transaction Network Services has hired Thomas Dunn, former president, CEO and co-founder of CardPoint, to head strategic account development for the POS division. Dunn brings nearly 30 years of experience in the electronic transactions and payments industry to TNS. At CardPoint, Dunn launched an Independent Sales Organization (ISO) providing a full range of acceptance services including credit, debit, EBT, loyalty and gift card offerings. Prior to CardPoint, he spent 13 years with Global Payments, Inc., an electronic payments processor. Transaction Network Services provides business-critical, cost-effective data communications services for transaction-oriented applications.

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Asset Acceptance Profits Rise 7% in 3Q/05

MI-based Asset Acceptance Capital, a purchaser and collector of charged-off consumer debt, reported third quarter revenues of $64 million, a 14.3% increase and cash collections of $78.2 million, a 17.0% increase over one-year ago. Net income for the quarter was $13.7 million, compared with net income of $12.8 million for 3Q/04. During the third quarter, Asset Acceptance invested $28.0 million to purchase consumer debt portfolios with a face value of $1.1 billion, representing a blended rate of 2.49% of face value. Quarterly collector productivity on a full-time equivalent basis was $36,454 in the third quarter of 2005, a decline of 9.4 percent from the year-ago period. The Company reported that on a year-on-year basis, the average number of collectors increased 17.2% to 1,067 collectors in the current period. For complete details on AACC’s latest results visit CardData ([www.carddata.com][1]).

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

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Management Buys Out TNT’s GlobalCollect

Amsterdam-based GlobalCollect has agreed to a management
buyout from TNT, backed by Waterland Private Equity Investments and Prime Technology Ventures. The Company offers international e-commerce merchants the ability to accept local payment solutions in over 50 countries. Payment services are not part of TNT’s core business, which has led to this change of ownership. Waterland Private Equity Investments takes up the majority of the new investment. GlobalCollect remains independent from banks and card processing organizations.

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Card Volume Up Nearly 13% for Top Issuers

Gross dollar volume among the top five U.S. issuers grew a solid 12.7% during the third quarter, compared to one-year ago. However, Bank of America led the peer group with a whopping 43% increase in volume, compared to 3Q/04. MBNA and Citi, which both posted declines in year-over-year outstandings for the third quarter, reported double digit growth in Y/Y GDV. Chase, the nation’s largest payment card issuer, posted a 4.2% gain in gross dollar volume during the third quarter, according to CardData ([www.carddata.com][1]).

TOP FIVE U.S. ISSUERS
3Q/05 Gross Dollar Volume
1. Chase $ 76.4 billion + 4.2%
2. Citi $ 73.7 billion +10.5%
3. MBNA $ 61.3 billion +15.7%
4. BofA* $ 37.0 billion +42.9%
5. Disc $ 26.7 billion + 5.1%
TOTAL: $275.1 billion +12.7%
*BofA figure is modeled on prior quarterly data
Source: CardData (www.carddata.com)

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

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VeriSign Acquires Retail Solutions for $24MM

VeriSign has acquired Retail Solutions, a provider of operational POS data to the retail industry, for $24 million in cash. Operational POS data provides detailed information about the volume and value of product sales through retailers, and is increasingly being combined with other demand data and new technologies such as RFID to increase sales and reduce costs. In conjunction with the acquisition of RSI, VeriSign also announced an agreement with the World Wide Retail Exchange to deliver POS services through WWRE’s global platform, enhancing store-level visibility to thousands of retailers and suppliers worldwide. Last month, PayPal inked a deal to acquire VeriSign’s payment gateway business for $370 million in cash and/or eBay stock. eBay and VeriSign also signed a multi-year security technology agreement that calls for eBay to invest in the deployment of VeriSign technologies that enable and protect online transactions, including the purchase of up to one million two-factor authentication tokens. (CF Library 10/11/05)

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Paymentech Canada Introduces Express Aerial

Paymentech Canada has introduced the portable wireless “Express Aerial” terminal from American Express for restaurants, bars, patios and specialty retail environments. With no cords and a functional range of 30 meters inside and 100 meters outside, the terminal can be taken directly to the customer, making payment at the table quick and easy. The Express Aerial provides efficient and secure credit and debit card processing capability and offers customers peace of mind as they do not lose sight of their credit or debit card during the payment process. Paymentech is a payment processor. In 2004, the Paymentech companies processed 8.5 billion transactions and $200 billion bankcard volume in 14 currencies.

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