NEWS

Lovely Rita, meter maid: Do you take credit?

San Diego residents can now pay for parking in parts of the city using their bankcards. The city recently installed 50 credit- and debit-card meters in several neighborhoods as part of a nine-month pilot program. If all goes well, San Diego may replace more coin-operated meters. "Everybody loves them. The biggest response has been, 'What took you so long?'" said Mona Favorite-Hill, Senior Public Information Officer, General Services Dept., one week after meters were installed.

One card-payment meter on each block replaces 10 individual coin-op meters. The entire pilot project was budgeted at $50,000. Card processing is performed by TSYS Acquiring Solutions through the city's contract with Bank of America Corp., according to Michael Vogl, Manager of San Diego's Collections Division. Cale Parking Systems USA Inc. manufactured the meters, which are battery and solar powered. The Beatles' Lovely Rita can take heart. The meters also accept coins.

Card Associations hosting security seminars

Both MasterCard International and Visa U.S.A. are offering programs to educate businesses on how to protect cardholder data and recognize and prevent payment card fraud.

MasterCard security experts are working with representatives from the Fraternal Order of Police to offer security seminars in major U.S. cities throughout 2006. MasterCard is also hosting a multipart online webinar series. Banks and third-party processors can register for the free seminars and webinars at www.mastercardsecurity.com

For a second year, Visa has partnered with the U.S. Chamber of Commerce to educate merchants nationwide on card security issues. The two organizations kicked off their tour on June 26 in Portsmouth, N.H. Other cities targeted on the three-month Visa tour are Birmingham, Ala., Aug. 1; Gainesville, Fla., Aug. 4; Springfield, Ill., Aug. 7; St. Paul, Minn., Aug. 10; Murrieta, Calif., Aug. 16; Anaheim, Calif., Aug. 17; Annapolis, Md., Aug. 22; Newton, Mass., Aug. 23; San Antonio, Aug. 30; and Cincinnati, Sept. 15.

Visa's tour is titled, "Securing Our Businesses, Protecting Our Customers." Small businesses can register to attend the free sessions at www.uschamber.com/events/visatour

CFOs double price forecasts

Product prices will increase an average of 3.3% over the next 12 months, according to Chief Financial Officer forecasts in the "CFO Outlook Survey." The survey was conducted by Financial Executives International and Baruch College's Zicklin School of Business, and results were released June 26, 2006. Three-quarters of the CFOs surveyed expect their companies to raise prices.

Salary increases to stay below 4%

Pay increases for most salaried workers will average only 3.5% this year and stay at that level through 2007, The Conference Board reported. For the fourth consecutive year, salary increases are below 4%. Estimates for 2007 for all industries and all employees show salary hikes remaining at 3.5% with the exception of the executive group, which is projected to move to 3.8%.

MasterCard U.K. fees found legal

The United Kingdom's Competition Appeal Tribunal (CAT) overturned the Office of Fair Trading's (OFT) September 2005 decision claiming that MasterCard's pre-November 2004 credit card interchange fees in the United Kingdom violated European Union and U.K. competition law.

The CAT is a judicial body whose function is to hear and decide appeals and other claims involving competition or economic regulatory issues.

The OFT will not initiate further proceedings against the pre-November 2004 MasterCard interchange fee arrangements. The OFT intends to investigate MasterCard's current credit card interchange fees before deciding what action to take.

ANNOUNCEMENTS

Discover forms merchant council

Discover Network established its Merchant Advisory Council. The council provides a forum for Discover Network and member merchants to identify and address relevant issues and trends in the payments industry, such as security and fraud protection, merchant support, and new payment technologies.

Discover's Merchant Advisory Council is currently made up of 21 member companies including American Airlines Inc., Darden Restaurants Inc., Enterprise Rent-A-Car, Knowledge Learning Corp., Kohl's Department Stores Inc., QuikTrip Corp., The Sharper Image Corp., SUPERVALU and Wal-Mart Stores Inc.

Euronet granted money transmitter licenses

Euronet Worldwide Inc. received money transmitter licenses in Florida, New Jersey and Texas. With the addition of these three states, Euronet, within a year of acquiring TelecommUSA, has received licenses in 12 new states to provide its Veloz money transfer and bill payment services.

Gemalto receives certification

Gemalto achieved ISO/IEC 27001 certification for its advanced card personalization center outside Toronto, Ontario, Canada. This is the first card personalization center in Canada to receive the ISO designation.

Through the center, Gemalto helps Canadian financial institutions convert an estimated 100 million magnetic stripe cards to smart cards based on Visa International, MasterCard and EMV standards. Gemalto loads cardholder data and then packages and sends the cards to banks or directly to cardholders.

Givex wins award

Givex UK's gift card implementation for TONI&GUY won the "Card Based Solution of the Year" award at the 2006 European Retail Solutions Awards Show.

The TONI&GUY program showed a 40% improvement in holiday gift voucher sales over the same period last year.

MasterCard risk officer to retire

Chris Thom, Chief Risk Officer of MasterCard, will retire from the company in October. Thom has overseen the Risk Management Group's enterprise-wide risk management practices and chaired the MasterCard International Operations Committee and International Security Committee.

NetBank Payment Systems to create POS/prepaid division

NetBank Payment Systems Inc., a leading ATM deployer and a subsidiary of NetBank, will create a separate division within the company to focus on generating and supporting POS and prepaid sales and services across the country.

PDS receives MSP designation

Payment Data Systems Inc. received approval from MasterCard to carry the Member Service Provider (MSP) designation for program services. This designation allows PDS to provide program services for MasterCard gift and prepaid cards, issued through MetaBank.

United Bank Card CEO profiled

Jared Isaacman, Chief Executive Officer of United Bank Card Inc., was recently profiled and listed by Inc. magazine as one of "America's Top 30 Entrepreneurs under 30."

Interac certifies VeriFone solutions

VeriFone's V^x 510 countertop and V^x 610 wireless payment solutions were certified as meeting new chip card device requirements put forth by the Interac Association, Canada's national industry association for shared financial services.

PARTNERSHIPS

First Data renews agreements; signs more

Amalgamated Bank of Chicago signed a renewal agreement with First Data Corp. First Data will continue to provide payment processing and card services, including statement production and mailing and plastics personalization.

First Data extended an agreement with the U.S. credit union Golden 1 to provide STAR Network access and PIN-debit processing for Golden 1's more than 280,000 U.S. cardholders and 271 ATMs.

Additionally, First Data recently began processing credit and debit card transactions for the 407 locations of A&P, one of the nation's first supermarket chains.

Aircharge provides payments over phone network

The City of Philadelphia Water Department approved Aircharge as its wireless payment solution provider. Aircharge will enable the Water Department to securely accept checks from customers using mobile phones compatible with the Sprint Nextel network.

Abanco partners with AMI

Abanco International LLC became AdvanceMe Inc.'s most recent Preferred Partner. This partnership will enable Abanco to provide its merchants with a funding solution; it will also support Abanco's ISOs in building and retaining their customer bases.

AmEx, Maritz and eFunds expand relationship

American Express Incentive Services (AEIS) and Maritz Inc. expanded their business relationship with eFunds Prepaid Solutions.

Under the agreement, eFunds will leverage AEIS' filtering process to offer focused-use, stored-value cards to its customer base.

Global Payments teams with AmeriMerchant

Global Payments Inc. formed an agreement with AmeriMerchant to provide end-to-end credit card processing services for AmeriMerchant's retail and restaurant merchant customers.

MedCom USA and BPS join forces

MedCom USA Inc. signed an agreement with Business Payment Systems. The engagement expands the coverage of sales territories for the MedCom System.

Pemco offers prepaid debit with CardEx

Pemco Technologies will add Card Express Inc. instant-issue gift cards to its selection of services. Pemco customers will be able to offer their cardholders customized, prepaid debit cards that are valid wherever Visa cards are accepted.

Chockstone to support PayPass

Chockstone Inc.'s POS solutions, credit card gateway and stored value programs will support MasterCard PayPass at participating merchants, particularly quick service restaurants and convenience stores.

Beginning in the third quarter of 2006, Chockstone merchants will be able to accept all PayPass transactions, as well as their own radio frequency-enabled stored value and loyalty cards.

Givex, Shift4 complete gift card integration

Givex and Shift4 completed a systems integration for gift cards. In addition to Shift4's credit and debit processing suite, Givex customers have access to real-time transaction processing, 24/7 support, online reporting, program administration, card marketing and card production.

Planet Payment extends HMS contract

Planet Payment and Humboldt Merchant Services extended their multicurrency processing agreement through 2011.

Under the agreement, Planet Payment will provide dynamic currency conversion and multicurrency pricing solutions for HMS. The two companies started working together in July 2003.

Inteligensa launches Multos

Inteligensa launched Keycorp Limited's Multos products to its Latin American customers. Keycorp's range of devices includes a variety of contact/contactless new products to address emerging markets such as MasterCard PayPass and e-passports.

IRS renews Official Payments contract

The Internal Revenue Service renewed its electronic tax payment processing contract with Official Payments Corp., exercising the fourth of four optional one-year contract renewals.

The agreement includes an expansion of the tax return types eligible for card payment by both individual and business taxpayers.

Merchant Services Network signs agreement with association

Merchant Services Network has become a Self Storage Association (SSA) partner for the remainder of 2006 and all of 2007.

The SSA Partner program combines sponsorships of all the association's major conferences, trade shows, seminars, publications and the SSA Web site.

Oblio Telecom and PaySpot sign distribution agreement

Oblio Telecom Inc. entered into a distribution agreement with PaySpot, a subsidiary of Euronet Worldwide Inc.

The agreement calls for PaySpot to distribute the TCC Picante international long distance prepaid calling card and BRAVO Cellular prepaid wireless service.

Wintrust banks join NYCE Network

All 15 subsidiary community banks of the $8.2 billion Wintrust Financial Corp. have become NYCE Network participants. Wintrust community banks serve the suburbs of Chicago.

US Dataworks and Online Resources form alliance

US Dataworks Inc. formed a strategic alliance with Online Resources Corp. The agreement calls for Online Resources to incorporate into its payments gateway US Dataworks' Clearingworks technology, a comprehensive solution for automated clearing house payment processing.

ACQUISITIONS

First Data completes GZS acquisition

First Data International completed the acquisition of GZS Gesellschaft fur Zahlungssysteme mbH, a German card processor. Through the acquisition, First Data becomes a leading processor of card-based payment transactions in Germany. Easycash, the network solutions provider and subsidiary of GZS Group, will be sold by First Data.

VeriFone files registration statement

VeriFone filed a registration statement with the Securities and Exchange Commission containing a preliminary proxy statement/prospectus regarding the proposed acquisition of Lipman Electronic Engineering Ltd.

As the acquisition is still subject to shareholder and regulatory approvals, the two companies will continue to operate as independent and competitive businesses. No products will be discontinued as a result of the acquisition.

APPOINTMENTS

Entin joins Click&Buy

Click&Buy recently hired Eli Entin as Vice President of Product Management. Previously, Entin was a Senior Product Manager for PayPal.

Fung appointed to MasterCard Board

Bernard S. Y. Fung was elected to MasterCard's board of directors. Fung is Chairman and CEO, Aon Corp.'s Aon Asia. He joined Aon from Inchcape/Bain Hogg where he was CEO when it was acquired by Aon in 1997.

Prior to Aon, he worked for Alexander & Alexander Group in several senior management positions.

CheckFree names Gianoni Executive VP

CheckFree Corp. named Michael Gianoni Executive Vice President and General Manager of the CheckFree Investment Services division.

Gianoni joins CheckFree following 11 years with DST Systems Inc. where he served as Senior Vice President of the company's E-Solutions division.

BofA names two

Mark Hogan was appointed President, Small Business Banking for Bank of America Corp. Hogan will take leadership of all Small Business products and distribution, including the Merchant Services sales force. Hogan most recently served as Northeast Division Executive.

Succeeding Hogan as Northeast Division executive will be Michelle Shepherd. Shepherd will also continue to serve as Senior Privacy Executive.

In her previous role, Shepherd served as Group Management Executive in the bank's Card Services division.

BOTTOM LINES

• More than one-half of consumers polled (53.2%) the month before the July Fourth holiday said that higher gas prices would not have an impact on their holiday spending, according to a National Retail Federation survey.
• The administrator handling settlement funds in the so-called Wal-Mart suit is now mailing payments to merchant class members whose claims were submitted and approved by March 31, 2006, the National Association of Convenience Stores reported. The 494,000 payments, totaling $600 million, are for overcharges on Visa and MasterCard signature debit and credit card transactions made between October 1992 and July 2003.
• On June 22, the U.S. Senate voted down an amendment to S. 2766, the FY2007 Defense Authorization Act, which sought to increase the federal minimum wage from $5.15 to $7.25 over the next two years.