NEWS

Federal Reserve releases credit card statistics

According to the Federal Reserve's "Survey of Consumer Finances," Americans' credit card debt is increasing. The survey revealed that 46% of all families carry a credit card balance, up from 44% in 2001. The average balance has also increased from $4,400 in 2001 to $5,100. On average, a family's credit card balance is 5% of its income.

Unbanked use credit cards

Scarborough Research recently released an analysis of unbanked consumers. It found that 22% of the unbanked used a credit card during the past three months and 13%, nearly 1.3 million of unbanked consumers, used a Visa U.S.A. card, making Visa the preferred brand. Five percent, more than 10.2 million consumers nationally, are unbanked. These consumers are more likely than the overall adult population to be young and in lower income brackets, and twice as likely to be either black or Hispanic.

ANNOUNCEMENTS

ExaDigm awarded $7 million order, achieves security approval

Reliance Industries Ltd., India's largest private company and leading supplier of petroleum products and services, selected ExaDigm Inc. to be its exclusive supplier of wireless POS terminals. The $7 million contract will see deployment of XD2000 WiFi solutions at petroleum outlets across India, allowing customers to make card-based payments at the pump, a first in the country's history.

Also, ExaDigm's XD2000SP payment terminal complies with the Payment Card Industry (PCI) Data Security and PIN Entry Device (PED) standards established by Visa and MasterCard Inc. for POS PIN-entry devices. The XD2000SP is the first fully modular, PC-based payment terminal to meet these requirements.

Heartland lauded in Omaha

Heartland Payment Systems Inc. has been named the Omaha Restaurant Association's (ORA) 2005 Purveyor of the Year. Heartland is endorsed by the ORA to provide its members with credit and debit card processing services and payroll solutions, along with gift and loyalty card programs and other related payment services.

Hypercom adopts stock repurchase plan

Hypercom Corp. adopted a written trading plan under the Securities Exchange Act to facilitate the repurchase of up to $5 million shares of its common stock. The company previously announced that its board of directors had approved a share repurchase program of up to $20 million of the company's common stock. In addition, Hypercom has $492,590 remaining to use for repurchases under a prior $10 million share repurchase authorization.

JPMorgan Chase issuing debit cards to unbanked

JPMorgan Chase recently debuted prepaid debit cards to speed payment of tax refunds to low-income tax filers who do not have bank accounts. The Chase Direct Benefit Card enables taxpayers to get refunds via debit card instead of paper check. The card is geared to people who qualify for refunds under the Earned Income Tax Credit.

Lipman achieves Chase Paymentech Solutions approval

Lipman Engineering Ltd.'s POS retail/restaurant application and two new PED-compliant terminals, NURIT 8100 (8100-US-M11) and NURIT 8320 (8320-US-M43), achieved Chase Paymentech Solutions' Class A approval. This enhanced POS application supports credit, debit, electronic benefits transfer and stored value gift cards.

Pay By Touch launches first UK implementation

Pay By Touch launched its first United Kingdom implementation: Shoppers at the Midcounties Co-operative supermarket in Oxford can now pay for groceries using a finger scan linked to their financial accounts.

Financial service pros seek award nominations

The Society of Financial Service Professionals is calling for nominations for the 2006 American Business Ethics Award. This annual program recognizes companies that exemplify high ethical standards in everyday business as well as in response to specific crises or challenges. The deadline for nominations is March 31, 2006. For more details and the nomination form, visit www.financialpro.org or call 800-392-6900.

UBC brings customer support in house, adopts new voice authorization service

United Bank Card Inc. (UBC) brought its entire merchant support operation in-house and now provides 24-hour, seven-days-a-week customer service and technical support. UBC has always offered 24/7 support to its merchant clients; however, the after-hours service was handled by the company's back-end network, after-hours support desk.

UBC will also replace its current voice authorization service with DialPay, a payment processing technology from Vital. DialPay is an Automated Response System that can be used when a merchant requires a voice authorization for Visa and MasterCard transactions. This system enables merchants to use a touch-tone telephone in the same manner they would use a POS terminal.

VeriFone succeeds with new payment system, forms hospitality group

VeriFone sold more than half a million units of its new Vx Solutions payment system during the line's inaugural year. The systems have been shipped to more than 60 countries. In addtion, VeriFone recently formed Hospitality Systems, a group that provides payment solutions for restaurants. The group intends to make a splash in the casual and fine dining spheres with VeriFone's first product built specifically for POS-integrated tableside and curbside payments.

PARTNERSHIPS

Associated Banc-Corp. renews with First Data

Associated Banc-Corp. renewed its processing agreement with First Data Corp. First Data will continue to provide processing services for Associated's home equity and general credit cards. First Data will also continue to supply statement printing and mailing, plastics personalization, and fraud and risk monitoring tools. The companies have worked together for more than 25 years.

Citizens Financial Group introduces PayPass

Citizens Financial Group has begun providing Citizens Bank and Charter One Bank customers with MasterCard PayPass contactless payment technology, starting with new and reissued debit cards.

Credit union chooses CO-OP Network

St. Mary-'s Bank, a New Hampshire-based credit union, agreed to employ CO-OP Network's full processing services for all of its transactions. St. Mary's has used the network for ATM access since 2001.

Credisson selects First Data

Credisson International, a leader in the Romanian consumer credit market, chose First Data to provide card production, personalization, authorization and processing services in support of its MasterCard portfolio. First Data will also supply call center services, risk monitoring, dispute management and POS terminal account handling services.

Datavantage Corp. is newest TekSecure Labs partner

TekSecure Labs Inc. and Datavantage Corp. formed an alliance to address emerging security issues and opportunities in the retail POS market. Datavantage will provide TekSecure Labs' Tek+Store product to its existing and new retail merchant customers.

Western Union partners with Mexico

Western Union Financial Services Inc. worked cooperatively with Mexico's National Commission for the Protection and Defense of Financial Services Users to develop a remittance calculator. The calculator helps U.S. consumers compare a variety of factors when transferring money. It is available to any financial services company legally authorized to transfer funds from the United States to Mexico on behalf of consumers.

Payment Data Systems and Symmetrex sign agreement

Payment Data Systems Inc. (PDS) and Symmetrex Inc. agreed to launch a series of prepaid debit cards. PDS will add Symmetrex as a supported card processor and will support access to Symmetrex's platform through PDS' debit card processing platform, applications and application program interface services. PDS will also implement a large, unnamed, private-label ATM card deal with Symmetrex.

ACQUISITIONS

Diebold to acquire Genpass' ATM unit

Diebold Inc. will purchase ATM maintenance and service provider Genpass Service Solutions (GSS). GSS' parent company, Genpass Technologies LLC, was purchased by U.S. Bank (a Diebold subsidiary) in 2005. This agreement adds 6,000 ATMs in 34 states to Diebold's service contracts. An associated agreement renews Diebold's maintenance contract with U.S. Bank for five years and includes servicing more than 7,100 ATMs.

First Advantage bolsters employment screening arm

Global risk mitigation provider First Advantage Corp. acquired the assets of National Data Verification Service from Chex Systems Inc., a subsidiary of eFunds Corp. National Data, an employment screening company, is being divested because it falls outside of eFunds' core priorities in electronic payments and risk management.

Q Comm acquires Sun Communications

Q Comm International Inc. acquired the electronic POS business from Sun Communications, a prepaid distributor. Terms of the deal were not disclosed. The acquisition increases Q Comm's merchant base by more than 300 California locations. Also, Pieter Hamman, President of Sun Communications, will join the Q Comm International management team as Vice President of Western U.S. Sales.

APPOINTMENTS

Valeo to lead new AdvanceMe program

AdvanceMe Inc. created a national partnership program. Leading the effort is former First Data Executive, Joe Valeo, who is charged with promoting AdvanceMe's working capital solution to potential partners.

Valeo was Vice President of Indirect and ISO Sales with First Data Merchant Services and also worked for Visa as a Senior Account Executive. Former NEC Financial Services executive, Mia Amodio will serve as a National Account Manager. Amodio's experience includes positions with Bell Atlantic TriCon Leasing.

Pay By Touch names Vice President of Biometrics

Pay By Touch named Gary Bender its new Vice President of Biometrics. Bender brings more than 35 years of experience in technical and biometric management to Pay By Touch. He was the Chief Architect of the FBI's newest fingerprint identification system.

Industry veteran joins RemoteDepositCapture.com

Christopher Dowdell is now a Director at RemoteDepositCapture.com. He has more than 25 years' experience in check processing and payments system products at such organizations as Chase Bank and BancTec.

Dowdell is also the four-time elected Chairman of the X9B Committee, the organization that establishes U.S. payments system check standards and guidelines for Check 21, check image files and image replacement documents.

BOTTOM LINES

• Kmart Holding Corp. reached a settlement with a group of class-action plaintiffs that contested the retailer's lack of handicapped accessibility. Kmart will allocate $13 million ($8 million in cash and $5 million in gift cards) to the plaintiffs. Kmart will also bring its stores into compliance with federal disability regulations within the next seven and a half years.
• Retail sales fell 1.3% between January and February, according to the U.S. Department of Commerce. However, the Los Angeles Times reported that analysts are not worried; January consumer spending was higher than expected, making up for February's decrease.
• Democratic activists nationwide are lobbying to increase state-level minimum wages, The Wall Street Journal reported. Eighteen states already have mandated a higher minimum wage than the federal floor of $5.15 per hour.