Collective Point of Sale Solutions to Sell SCTN Loyalty Program

Collective Point of Sale Solutions has signed an agreement to license and resell SCTN’s patent-protected, end-to-end loyalty program management solution to its customers throughout Canada. The program includes “e-llegiance” and “Loyalty Central.” Smart Chip Technologies’ turnkey loyalty program management system, co-developed with the Airos Group and IBM, enables smarter, click-and-mortar, real-time rewards programs running on bar code, magnetic stripe, RFID, or smart cards, laptops, PDAs such as Palm or Windows devices, TV set top boxes, or mobile phones. Collective-POS is Canada’s leading private provider of merchant services including point-of-sale hardware, software, and credit/debit transaction processing, with thousands of satisfied merchants from coast to coast.

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ScotiaCard Mi Pago to use RapidMoney Service

RapidMoney Corporation announced it will now make money transfers directly to a Mexican stored value card. Issued by Scotiabank Inverlat, the “ScotiaCard Mi Pago” enables recipients of RapidMoney
transfers to withdraw funds from all the ATMs in Mexico and to make
purchases without service charges at over 100,000 Mexican stores and restaurants. Senders of “RapidMoney” transfers in the USA request the
“Scotiacard Mi Pago,” which is then delivered to the designated recipient in Mexico. Subsequent transfers automatically load the card and provide the transfer recipient continued access to Mexican ATMs, stores and restaurants.

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First Annapolis Adds Two Partners

First Annapolis has promoted Bob Lime and Jim Leroux to partner. Bob Lime focuses on the firm’s Card Issuing practice with a particular emphasis on the Retailer Services sector where he advises retailers and third party providers of retail credit programs on a full range of customer financing and payment strategies, such as private label credit cards, co-branded credit cards, stored value gift cards, and loyalty programs. Jim Leroux works with First Annapolis clients on corporate strategy with a strong emphasis on mergers and acquisitions, strategic relationships, and outsourcing transactions. He works with clients across all of our practice areas and routinely helps clients develop and execute their corporate strategies, often through the identification and completion of strategic transactions. First Annapolis is a management consulting and M&A advisory firm with a focus on the consumer financial services and a specialty in payment-related products, services, and delivery.

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RBS Buys a Top Merchant Processor

Royal Bank of Scotland is buying privately-held, Atlanta-based Lynk Systems, through its US-based Citizens Financial Group, for $525 million in cash. Lynk, a top merchant processor and acquirer, handles $18 billion in charge volume and 400 million transactions annually. The Company services approximately 100,000 merchants. Lynk also provides processing services for 25,000 ATM’s located throughout the USA representing $6 billion dispensed and 120 million transactions annually. The Company was founded in 1991 and has more than 950 employees. Financial Technology Partners and FTP Securities exclusively represented Lynk Systems in the pending sale to RBS. Lynk was a customer of Citizens Financial. Atlanta-based Arnall Golden & Gregory served as Lynk’s legal advisor.

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Diners Club to Beef-Up Global Vision MIS

Diners Club yesterday announced it plans upgrade its “Global Vision” online MIS reporting tool for corporate card clients during the fourth quarter. Besides faster page load times, users will be able to run reports on specific days, and delinquency reports can run at the summary level. Changes have also been incorporated to allow users to create and name their own report folders as well. Additionally, the multi-language capabilities of “Global Vision” will expand to include Spanish and French by the end of the year. Diners Club “Global Vision,” launched in 1992, includes more than 40 standard reports and allows users to create custom reports with access to over 500 distinct data items.

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MEI Gears-Up for the New $50 Bill

MEI is now offering clients options to upgrade their bill acceptors in the field so that they will recognize and accept the new $50 bill when it comes out next month. Upgrade and pricing options differ according to the model bill acceptor, and customers will receive detailed upgrade ordering information from MEI via e-mail and service bulletins that will be issued to service centers, distributors, and customers. The new $50 bills will be safer, smarter and more secure. MEI payment systems are relied upon for more than1 billion transactions per week in 90 countries.

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Card Scams Victimized 10 Million Consumers

Nearly ten million Americans were victims of three types of credit card-related fraud last year. The FTC yesterday reported that advance-fee loan scams, mostly credit cards, claimed 4.55 million victims last year. Credit card insurance scams claimed 3.35 million victims, and credit repair scams suckered 2 million victims. The annual FTC survey found that American Indians and Alaska Natives, African Americans, and Hispanics were more likely to be victims of fraud than non-Hispanic whites. The FTC research reveals that 33% of fraud victims first learned about a fraudulent offer or product from print advertising in newspapers, magazines, direct mail, catalogs, or posters. Telemarketing was the first source of contact in 17% of the frauds. Only 14% of fraudulent offers were promoted using Internet and e-mail; television or radio advertising account for only 10.6% of fraudulent offers.

TOP TEN FRAUDS 2003
SCAM #VICTIMS
1. Advance-fee loan scams 4.55 million
2. Buyers clubs 4.05 million
3. Credit card insurance 3.35 million
4. Credit repair 2.00 million
5. Prize promotions 1.80 million
6. Internet services 1.75 million
7. Pyramid schemes 1.55 million
8. Information services 0.80 million
9. Government job offers 0.65 million
10. Business opportunities 0.45 million
Source: FTC

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Incurrent Releases InSite Collections

Incurrent is releasing “InSite Collections,” a fully-branded, online collections product. InSite Collections can integrate seamlessly with its powerful InSite product line or it can run as a stand-alone experience for delinquent cardholders. InSite Collections provides delinquent accounts a Web experience in which they can communicate with the card issuer about the details of their delinquency and become educated about the options available to them.

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Metris Companies Gets a New CFO Next Week

Metris Companies announced that CFO John Witham has resigned and that William Houlihan, currently with JPMorgan Chase, will become EVP/CFO on Monday. Houlihan has more than 27 years of diversified financial services and management experience. Before joining JPMorgan Chase in November 2003, he spent three years as Executive Vice President and CFO at Hudson United Bancorp in Mahwah, N.J., where he was responsible for all finance and treasury areas of the bank. Metris Companies Inc., based in Minnetonka, Minn., is one of the largest bankcard issuers in the United States.

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eFunds’ Net Income Soars 84% in Q2

AZ-based eFunds reports second quarter net income of $9.4 million, matching its first quarter results, but well above last year’s second quarter net income of $5.1 million. Second quarter net revenue increased 5.8% to $140.7 million, compared to the second quarter of 2003. Revenues for eFunds’ Electronic Payments segment increased 14% to $51.7 million, but net income declined 20% to $7.4 million. ATM Management revenues were down 5% to $34.6 million and net income declined 32% to $446,000 compared to a $657,000 one-year ago. The Risk Management unit produced revenues of $35.0 million, a 9% increase over 2Q/03, as net income for the segment grew 90% to $12.4 million. eFunds Global Outsourcing business posted second quarter revenues of $19.4 million, unchanged compared to 2Q/03, but the net loss widened slightly to $10.4 million for the quarter. The Company reconfirmed its previous outlook that net revenues for the full year 2004 will increase approximately 5% to 10% over the net revenues recorded in 2003 of $532.1 million. For complete details on eFunds’ second quarter performance visit CardData ([www.carddata.com][1]).

eFunds Revenues Historical
2Q/03: $133.0 million
3Q/03: $133.1 million
4Q/03: $135.4 million
1Q/04: $140.9 million
2Q/04: $140.7 million
Source: CardData (www.carddata.com)

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

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