NEWS

BofA shifts consumer processing in house

Bank of America Corp. (BofA) intends to shift the processing of its consumer card portfolio in house from TSYS. TSYS expects to continue providing commercial and small business card processing for BofA and MBNA, as well as merchant processing for BofA, according to the terms of the existing agreements for those services. BofA will pay a termination fee related to the deconversion of the consumer portfolio.

Financial institutions transforming ATMs, study finds

Financial institutions are transforming ATMs into more than simply a cash withdrawal machine by investing in advanced functionality to improve customer service, lower costs and strengthen their brand, according to a new report from Celent.

The report, "Advanced Functionality ATMs: Promise Meets Reality," found that banks are working to transform the ATM into an effective relationship device by integrating ATMs with other bank channels and implementing personalization capabilities.

Banks are also examining check imaging at the ATM. The report explores the efforts of retailers using ATM-like self-service technology to offer a menu of services that exceeds current bank efforts.

Kiosks offer soldiers financial access

NCR Corp.'s EasyPoint kiosks are part of the Treasury Department's "EagleCash" Stored Value Card Program. EagleCash is designed to reduce the amount of U.S. currency required to support the personal financial needs of U.S. soldiers deployed overseas.

Military and support personnel are issued EagleCash cards to use in lieu of cash for purchases at military-operated concessions. The kiosks are equipped with smart card readers that allow users to transfer personal funds between their U.S. financial institution and their EagleCash card.

The Treasury Department and the U.S. Army began deployment of the kiosks in August 2005. To date, installations have been completed in Afghanistan, Bosnia, Honduras, Kosovo, Qatar and Saudi Arabia.

New Visa logo debuts in United States

Visa U.S.A. launched a new look for the Visa logo. The new brand is designed to better reflect the range of electronic payment products provided by Visa's member financial institutions and the expanding environments in which they're accepted. The updated brand mark will appear on all new materials, including Visa pay-ment cards, merchant decals, marketing materials and stadium signage.

The new Visa mark debuted in regions outside the United States in September 2005. In addition to enhanced security, the new brand provides members more space on the front of the card for customization. Visa has planned a gradual transition that will continue for the next several years.

ANNOUNCEMENTS

Acies reports continued account growth

Acies Corp. announced growth statistics for its merchant account portfolio. Total merchant accounts grew 138%in the 12-month period ending Nov. 30, 2005. For the first eight months of fiscal 2006, total merchant accounts grew 87%.

Scrip Advantage announces reorganization

Scrip Advantage Inc. will reorganize the company by filing with the U.S. Bankruptcy Court to become a "debtor in possession" under the U.S. Bankruptcy Code. The company is taking steps to merge the operating subsidiary into the parent company to reduce franchise tax obligations. John Coyle, the former President and Chief Executive Officer was terminated from those positions and was succeeded by his brother, Robert Coyle, whom it is intended will continue to run the company once in Chapter 11.

SWACHA relocates

SWACHA - The Electronic Payments Resource has moved. The new address is 1999 Bryan Street, Suite 3600, Dallas, TX 75201. The SWACHA Members Only Payments Answerline phone number will remain the same. New general office and personal contact phone numbers will be published on the SWACHA Web site when they are effective.

SwipeUSA celebrates anniversary

ATM management firm SwipeUSA is celebrating its sixth year of operation. SwipeUSA has increased revenue 20% annually since its launch in 1999.

Over the past year the company successfully lobbied the California legislature to collect ATM surcharges from foreign bank accounts and expanded its network beyond San Francisco to Southern California and Nevada.

VeriFone achieves Swiss certification

VeriFone received ep2 certification for two members of its Vx Solutions family, the Vx 510 and Vx 610, making VeriFone's next-generation payment platform available to customers across Switzerland. CCV-jeronimo (Switzerland) SA, VeriFone's international partner in Switzerland, began installing the countertop and wireless systems at major retail outlets nationwide in October and plans to roll out further this year.

Verus Card Services offers Touch Tone Processing

Verus Card Services now offers Touch Tone Processing. The in-house, telephone-based merchant processing system is designed for the low-volume/micro-merchant.

Vital receives certification

Vital Processing Services achieved Class-A certification for the Lipman 8000 terminal on the Synapse Payment Gateway General Packet Radio Service (GPRS) platform. This certification and move to GPRS technology on the Lipman 8000 terminal expands the wireless offerings that Vital can extend to its customers.

Western Union network exceeds 250,000 locations

Western Union's agent network, combined with its subsidiary Orlandi Valuta, now exceeds 250,000 locations. Western Union previously established a goal of reaching 250,000 agent locations. The Payments Services division of First Data Corp., which includes Western Union, contributes nearly 40% of the company's revenues.

Additionally, Western Union Financial Services Inc. signed an agreement with The Jean Coutu Group Inc., the fourth largest drugstore chain in North America, to provide money transfer services at its Brooks Eckerd Pharmacy locations in the United States.

PARTNERSHIPS

Axalto wins first Chinese EMV project

Axalto's multi-application smart card, Palmera, was selected by Industrial and Commercial Bank of China for the world's first Chinese EMV card-issuance project.

The project requires the chosen product to comply with the Chinese EMV debit/credit specification by People's Bank of China. The Axalto Palmera card is able to support both Visa and Chinese EMV requirements on a single card.

Euronet signs agreement with Indian Bank

Euronet Worldwide Inc. formed a multiyear ATM outsourcing and deployment agreement with ABN AMRO Bank, a multinational bank in India. Under the agreement, ABN AMRO Bank (India) will outsource its existing network of 90 ATMs to Euronet India.

The company has already taken over the operation of the bank's ATMs and will provide end-to-end ATM outsourcing services from its operations center in Mumbai. Additionally, ABN AMRO Bank also plans to increase its ATM network in the country over an 18-month period.

AutoZone chooses TeleCheck

AutoZone Stores nationwide are now using the TeleCheck electronic check acceptance (ECA) service and the TeleCheck guarantee service. AutoZone is using the TeleCheck ECA service to settle check transactions electronically and is using the TeleCheck guarantee service to reduce its exposure to fraud and risk.

ACQUISITIONS

Capital Bank Corp. completes merger

Capital Bank Corp. completed the acquisition of 1st State Bancorp Inc. Additionally, A. Christine Baker, who served as Chief Financial Officer of 1st State Bancorp, was named Executive Vice President and CFO for Capital Bank Corp. Fairfax C. Reynolds, Executive Vice President of 1st State Bank since 1989, was named Executive Vice President and Regional President of Capital Bank.

The combined company, which will operate as Capital Bank Corp., will have approximately $1.3 billion in assets and $1 billion in deposits.

Certegy to acquire FastFunds financial assets

Certegy Inc. will acquire certain assets of FastFunds Financial Corp. and its wholly owned subsidiary Chex Services Inc. for approximately $14 million in cash. Chex Services provides check cashing, ATM access, and credit and debit card cash advance services to approximately 50 casinos and gaming establishments in the United States, Canada and the Caribbean. The acquisition is expected to add in excess of $15 million in annualized revenue.

Everlink completes acquisition

Everlink Payment Services Inc., a Canadian electronic transaction switching service provider, completed the acquisition of CGI Group Inc., an independent information technology and business process services firm. The transaction was completed for CDN $28 million.

First Data to acquire German processor

First Data and GZS, Gesellschaft fur Zahlungssysteme signed an agreement for the acquisition of GZS by First Data. GZS is Germany's leading processor of cashless, card-based payment transactions. The transaction is expected to be completed in the second quarter 2006.

APPOINTMENTS

BAI announces new board member

BAI recently named Craig J. Kelly, Corporate Executive Vice President and Chief Marketing Officer for SunTrust Banks Inc., to its board of directors. Kelly will serve a two-year term as a member of the board. Kelly has more than 35 years' experience in banking. Previously, he held executive marketing positions at BancOne Corp., Bank of Virginia (renamed Signet) and New Britain Bank & Trust Co.

First Data names Domestic Merchant Services head

Ed Labry, President of First Data's Prepaid Services, will assume additional responsibility for leading the company's Domestic Merchant Services business. Prior to his appointment as President of Prepaid Services in 2005, Labry had responsibility for large merchant initiatives and advising the organization on new POS opportunities. Previously, he was President of Concord EFS Inc.

PassMark appoints VP of Engineering

PassMark Security announced the expansion of its management team with the addition of Kim MacPher-son as Vice President of Engineering. For the past five years, MacPherson was Vice President of Engineering at Securify. Prior to that MacPherson built secure financial services applications at Intuit.

First Data names Country Manager for India

First Data named B. Amrish Rau as Country Manager for its international operations in India. Prior to joining First Data, Rau was General Manager of the Teradata division of NCR Corp. India, where he led the CRM and Data Warehouse Solution Group.

Before NCR, he worked in the financial services division of Siemens Nixdorf Information Systems addressing the technology requirements of Indian banks.

Open Solutions names CFO

Open Solutions Inc. announced that Kenneth J. Saunders, former CFO of Peregrine Systems Inc., will join the company as its Executive Vice President and CFO. Prior to his tenure at Peregrine, Saunders was CFO of Fair Isaac Corp. He also served as CFO for HNC Software Inc.

Humboldt Merchant Services promotes two

Humboldt Merchant Services (HMS) promoted Hilda Tuel to Senior Vice President and Xavier Ayala to Vice President. Tuel began her work at a formative time at HMS, selling card-processing services directly to merchants in and around Humboldt County. Tuel has been a part of HMS for more than nine years.

For the past eight years Ayala helped define the position he now holds, creating many of the procedures and processes that are in place today. He is responsible for working directly with the business partners served by HMS.

ClickPay signs new VP Business Development

Check cashing service provider ClickPay Solutions Inc. appointed Martin Williams as Vice President, Business Development. Williams has more than 16 years' expertise in management and business development. He is the former President at C2B Direct Inc.; Vice President, Business Development for Client Shop Inc.; and a former Director of Business Development at Buy.com .