Moneris Solutions Reports it Processed a Record 8.5 Million Card Transactions on December 23rd

Amex Bank of Canada has signed an agreement to purchase the VISA
accounts of approximately 300 TD Bank Financial Group’s corporate clients
that have annual revenues of more than $20 million. Under terms of the
deal, which reportedly is worth in excess of $200 million, TD will promote
a broad range of American Express corporate products to its commercial
clients while AmEx issues, manages and supports TD’s corporate card program
for major clients. The migration from VISA commercial cards to AmEx cards
will be completed by mid-summer. Two years ago TD Canada Trust sold its
MasterCard portfolio to Citibank Canada.
One year ago, AmEx inked a deal with CIBC to issue a suite of AmEx credit
cards including a smart card. The CIBC/AmEx card products carry the name
“entourage.” The three “entourage” credit cards include the “American
Express Smart Card,” “Platinum American Express Card,” and the “Business
American Express Card.” Under terms of the deal, CIBC will issue the cards,
own the accounts and handle the customer service support for the AmEx
cards, including authorizations, billing and credit management.

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BabyMint Acquires NestEggz

Atlanta-based BabyMint has signed an agreement to acquire the assets and loyalty rewards program of the NestEggz division of Nuvisio for $4.5 million cash. The NestEggz loyalty rewards program enables consumer products companies (CPGs) to broadly distribute fraud-protected coupons online. Kellogg USA, Kimberly-Clark, Mott’s, Clairol, Fleischmann’s, Birds Eye, GlaxoSmithKline, Georgia-Pacific, and Borden Foods were among the first to promote their products online using NestEggz when it launched in April 2001.

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Diebold 4Q/02

Diebold yesterday reported fourth quarter profits of $21.9 million on revenues of $525.8 million. However, ATM-related revenues decreased 5.2% from $413.8 million for 4Q/01 to $392.5 million for 4Q/02. The results included a one-time charge for the cost of settling a tax dispute with the IRS. During the fourth quarter Diebold signed $12 million in ATM deals in the USA, $8 million from several financial institutions in India, more than $4 million from financial institutions in Brazil, $3.2 million from a financial institution in Indonesia, orders for more than $3.2 million from two financial institutions in China, and, more than $2 million from a large financial institution in Canada. Diebold expects first quarter revenues to increase in the mid-single digit range vs. prior year. For complete details on Diebold’s 4Q/02 results visit CardData ([www.carddata.com][1]).

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

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VISA’s Boxing Day Volume Approaches $300 Million

Intelli-Check and Bioscrypt have teamed to combine the enhanced
security provided by Bioscrypt’s fingerprint verification algorithm with
Intelli-Check’s “ID-CHECK” technology to prevent economic loss from
check-cashing, credit card and various other frauds utilizing fake
identification and to provide an enhanced security system for access
control at airports, seaports, bus and rail terminals and other high
profile infrastructure. The proposed combined solution will store the
fingerprint template in a 2D bar-code where it will be read by the
“ID-CHECK” technology to perform user authentication. The user
authentication is performed seamlessly and automatically in seconds using
Bioscrypt’s award winning fingerprint recognition algorithm. This provides
a secure link between the user and the document enhancing protection
against fraud and identity theft underlying economic loss and security
violations.

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Card Mail 4Q/02

Approximately 1.2 billion direct mail credit card offers were received by US households during 3Q/02, the same volume mailed in 3Q/01. Nearly eight out of ten solicitations received by American households during the third quarter were “Platinum” offers, compared to 68% of all offers received the same time the prior year. According “Mail Monitor,” the direct mail tracking service from Synovate (formerly BAIGlobal), consumer response rates remained at a low rate of 0.7%. More than one third of the 3Q offers promoted a 0% introductory rate for purchases, and 52% promoted a 0% introductory rate for balance transfers. About 7% of the offers promoted a 0% intro rate for cash advances. The average introductory period for purchases increased from seven months in the second quarter to eight months in the third quarter of 2002, and the average introductory period for balance transfers increased from seven months to nine months over the same period. Reward and/or cash rebate offers made up 27% of all credit card mailings during the third quarter compared to 20% in the third quarter of 2001. Synovate says just under half of all co-branded offers promoted some form of reward/rebate scheme during the third quarter, up from 31% during the same period the year before.

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PayMaxx Card

Payroll processor, PayMaxx, has teamed with Bank One to re-launch a VISA debit card in April. The “PayMaxx PayCard,” enables employers to directly deposit funds into the employee’s PayCard account each payday and is targeted at unbanked employees. PayMaxx previously offered a VISA debit card through BankTennessee in 2001. PayMaxx says its research shows that employees in high turnover industries often find obstacles to cashing their payroll checks and managing their funds. The payroll company says it will target hospitality, manufacturing, fast food, and trucking industries for the debit card product. VISA estimates that 12-15 million households, or 20% of the U.S. population, do not have a traditional banking relationship. (CF Library 5/2/01)

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MINT CARDS

Hong Kong-based eGeneral Technology Limited has licensed Toronto-based
Diversinet’s “Passport” wireless security software for its wireless
“xPayment” service suite. “xPayment” is a comprehensive payment service
that offers merchants and financial institutions tailored products to meet
specific payment technology needs. eGeneral’s products enable merchants to
communicate with banks to process credit, debit, corporate and purchasing
cards as well as direct transfer payments. With the new secure m-payment
service, merchants can offer customers a secure wireless payment option
from Palm and Pocket PC devices.

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Bankrate Suit Dismissed

The U.S. Court of Appeals for the Second Circuit has dismissed a shareholder class action lawsuit filed against Bankrate in March 2000. As previously disclosed, a shareholder class action lawsuit was filed against the Company and certain of its officers and directors, its auditor and its underwriters in the United States District Court for the Southern District of New York on March 28, 2000. On March 29, 2001, the United States District Court of the Southern District of New York dismissed the shareholders class action suit in its entirety with prejudice. On April 25, 2001, plaintiffs appealed the decision to dismiss the suit to the United States Court of Appeals for the Second Circuit.

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Credit Card Delinquency Hits 13.50% in November, the Fifth Straight Monthly Increase

Toronto-based Xenos has been selected by TSYS’ ProCard subsidiary to
provide a software platform for ProCard’s “Statement Centre” solution.
“Statement Centre” enables cardholders, managers and
administrators to manage statements and invoices electronically, allowing
for real time access of credit card transactions as well as presentment of
cycled statement and invoice images. Once statement and invoice print files
are generated, they are securely transmitted to ProCard’s “Statement
Centre” solution where Xenos’ “d2e Platform” software parses the statements
and invoices and converts them to PDF images. Users can then retrieve and
view the PDF images via the Internet using the advanced features of
“Statement Centre.” Xenos “d2e Platform” transforms legacy printstreams
into standard electronic formats, for applications such as electronic
statement presentment, enterprise content management/archiving, print
automation and customer relationship management.

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Blue ID Keeper

While smart credit cards have been pushed to the back burner by many U.S. issuers, American Express announced yesterday it is adding the first real application to its pioneering “Blue” smart card. The new “ID Keeper” application stores multiple Web sites, online IDs, and passwords. The free application can be obtained by going to a special Web address, inserting the “Blue from American Express” card into the smart card reader, and then downloading the software. “Blue” cardholders can then establish their personal profile of favorite Web sites, IDs, passwords. The Internet download capability was developed through the Datacard “Affina Life Cycle Management System.” AmEx introduced the “Blue” card in September 1999, becoming the first major credit card issuer to launch a smart card in the USA. AmEx has tested various smart card applications with “Blue” in the USA including a feature to enable cardholders to pick up tickets through Ticketmaster, receive special discounts at Virgin Music, and download music at Virgin Music. In 2000, AmEx launched a “Code Blue” contest for technology developers to create new “Java Card” technology applications for the “Blue” credit card. A German developer won first place in the “Code Blue” contest for his “Pass Keeper” application. The “Blue” card is also issued in Australia, Austria, France, Germany, Italy, the Netherlands, Spain, Sweden, and the United Kingdom. (CF Library 9/9/99; 6/7/00; 7/28/00; 5/9/01; 5/24/01; and 11/21/01)

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GEHA Deploys Payment Optimizer

Government Employees Hospital Association has selected Fair, Isaac’s “Payment Optimizer” fraud and abuse detection solution to make pre-payment detection possible. Payment Optimizer uses Fair, Isaac’s neural network technology, which has been successfully deployed in finding fraud in real-time for credit cards and other financial transactions. The software identifies patterns of unusual behavior and provides a score based on the claim’s degree of risk. The score allows claims professionals to determine which claims need to be taken out of the payment stream for further investigation, and allows the rest of the claims to be fast-tracked for payment.

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