NEWS

Many Vacationers Plan to Use Credit

More than half of Americans (53%) plan to take vacations this summer, and 23% will charge the vacations to their credit cards, up 4% from a year ago, according to the Cambridge Consumer Credit Index. This year, 60% will pay for their vacations from their savings or checking accounts, down 14% from 2004, while 10% will pay with cash, up 9%.

One in Five Americans a Victim of Identity Fraud

A survey sponsored by Chubb Group of Insurance Companies found that 20% of respondents have been a victim of identity fraud or theft. Twenty-seven percent reported that they or a family member had experienced fraudulent use of a credit card or checking account. Eighty-seven percent think that companies that fail to protect confidential information should be required to pay to restore consumers' credit ratings. Sixty-five percent would like to see companies fined, and 63% want them charged with a crime.

Internet Banking Safeguards Needed, FDIC Finds

According to the Federal Deposit Insurance Corp. (FDIC), Internet banking transactions should support user names and passwords with new and better ways of differentiating real customers from fraud artists. The FDIC concluded that the risk assessment that financial institutions (FIs) are required to perform also should address customer authentication.

The FDIC said if an institution offers Internet banking, it has an obligation to secure that delivery channel. FIs would use this extra level of security for online accounts in addition to traditional passwords.

Debit Users Least Likely to Write Checks, Survey Finds

The STAR Consumer Payments Usage Study, released by First Data Corp., found that more than five out of every six ATM/debit cardholders surveyed had used their ATM/debit card at least once in the 30 days prior to the survey. Twenty-nine percent of non-debit users surveyed prefer to use credit cards, up 11% from 2003. Debit users are the least likely to pay with a check, while non-users wrote an average of three checks per month at retail locations.

Microsoft to Deliver Merchant Services

Microsoft Corp. will collaborate with merchant acquiring institutions, including Chase Merchant Services LLC, to offer credit card processing for MS Office Small Business Accounting 2006. The solution is designed for businesses with up to 25 employees. For customers with an existing bank relationship, Microsoft is working with VeriSign Inc. to enable customers to transact in a security-enhanced online environment to help prevent disruption to their business.

IT Professionals Uncertain About Data Security Requirements

Research from a survey conducted by data security company Protegrity Corp. shows that 53% of IT professionals surveyed believe that their companies are still not clear about data security requirements as outlined by the Payment Card Industry (PCI) Data Security Standard, California Data Security Disclosure Law, the Sarbanes-Oxley Act, and the Health Insurance Portability and Accountability Act.

Forty-one percent said their companies spend 10% or less of IT security budgets on data and database security, while 87% believed that internal misuse of sensitive data is the biggest threat to their companies.

ANNOUNCEMENTS

ATMIA Extends Nomination Deadline

The ATM Industry Association extended the deadline for submitting nominations for the ATM Industry 2005 Global Awards. The deadline is now Sept. 30, 2005. The awards include Best ATM Technology; Best Contribution to the Industry; Best Contribution to ATM Crime Fighting; Lifetime Achievement; and Most Influential Member. Download a nomination form at
www.atmiaconferences.com/Industry/Index.cfm .

World-Check Commended

"The Banker" magazine and the Financial Times Group recognized World-Check as "Highly Commended" in the compliance category of The Banker Technology Awards 2005. The award recognizes best of breed, innovation and success in financial technology. World-Check provides intelligence on known high-risk individuals and businesses.

PARTNERSHIPS

AmbironTrustWave Forms Partnerships

Authorize.Net Corp. and AmbironTrustWave formed a partnership to offer PCI Data Security Standard compliance services to Authorize.Net's merchants. Authorize.Net's merchant clients will have access to all of the services required for validating compliance through AmbironTrustWave's TrustKeeper solution.

AmbironTrustWave will also offer PCI compliance validation services to value-added developers of Vital Processing Services. Vital requires all value-added developers to comply with the PCI and Payment Application Best Practice standards in order to process payment transactions through Vital's network.

Checkgateway and TransFirst Create Alliance

TransFirst signed a one-year contract for electronic check processing on Checkgateway's new processing platform. This is an enhancement to the existing relationship between the two companies.

ChoicePoint Wins $20 Million Contract

The Internal Revenue Service selected ChoicePoint Government Services as its public record provider for all batch processing projects. The five-year contract has a maximum potential value of $20 million.

First Data Announces Partnerships

First Data extended its relationship with BancorpSouth Inc. for credit and debit card processing, as well as merchant processing services. The extension calls for First Data to continue providing transaction processing services for BancorpSouth's credit card accounts and signature-based debit cards. In addition, BancorpSouth extended its agreement with First Data for merchant processing services for its 4,000 merchants.

In other news, First Data and Citibank signed a long-term processing agreement that expands their existing relationship to include processing services for the Sears, Roebuck & Co. card portfolios. The partnership will focus on private label and private label co-brand bankcards, in addition to accounts currently processed for Citibank.

Global Payments Provides Processing to Florists

Global Payments Inc. signed a multi-year agreement to provide FTD florists with end-to-end electronic transaction processing services. Global Payments will provide back-end support including clearing, settlement and BIN sponsorship, along with the authorization and data capture processing services currently provided for FTD.

Pay-Ease Supplies Self-Service Payment Kiosks Pay-Ease Inc. will provide its automated commerce machine (ACM) self-service bill payment kiosks to the City of Milwaukee for collecting parking citation payments and dispensing night parking permits. Pay-Ease will install its network of automated payment center kiosks in all police stations and selected retail locations. As the program is expanded Pay-Ease ACM kiosks will also collect payments for its utility and consumer service biller clients.

Q Comm to Include Telrite Handsets

Q Comm International Inc. formed a partnership with Telrite Wireless. Through the partnership, Q Comm will include the Telrite Wireless Prepaid Starter Kit and refill airtime in its products available to Q Comm's merchant network.

RBS Lynk Signs Two More Members

RBS Lynk signed AVENTA Data Systems and Texas POS as the newest members of its value-added reseller program. As part of the OneLynk Alliance, the two will offer RBS Lynk's payment processing services to their customers. AVENTA Data Systems provides POS solutions to more than 500 restaurants, and Texas POS provides retail solutions to more than 600 customers.

TNB Gains Three More Credit Unions

TNB Card Services gained the credit card processing business of three more credit unions. The new processing clients are WySouth Federal Credit Union of Michigan, Dowell Federal Credit Union of Oklahoma and Shell Federal Credit Union of Texas.

USMS Chooses ICE

U.S. Merchant Systems (USMS) selected International Card Establishment Inc.'s (ICE) gift and rewards company, Neos Merchant Solutions. Neos will provide a gift and rewards program for USMS' merchant accounts.

APPOINTMENTS

Former BofA and Visa Executives Join LifeLock Boards

Luke Helms, former Vice Chairman of Bank of America, and Inder Singh, former Executive Vice President and Chief Global Technology officer for Visa International, joined the executive and advisory boards of LifeLock, a provider of preventative identity theft protection services.

Helms has more than 30 years of banking and financial services experience. He served as Chairman for KeyBank National Association and Chairman and CEO for Seafirst Bank. Singh is President of Tacit Inc. He previously served as Chief Operating Officer for Card Capture Services.

Kalifa Joins MAGEX Board of Directors

Ron Kalifa, Managing Director, Retailer Card Services at The Royal Bank of Scotland Group (RBS) joined the Board of Directors of Magex Holdings Ltd. Kalifa joined NatWest in 1978 prior to its acquisition by RBS in 2000. He served as COO of NatWest Bancorp, was Head of Internet Banking for RBS and became Managing Director of WorldPay in 2002.

Krasnosky TransFirst's President of Shared Services Division

TransFirst named Don Krasnosky President of its Shared Services Division. Krasnosky's career in the credit card and payments industry spans more than 15 years. His background includes management experience with Priceline WebHouse Club, Paymentech, FirstUSA Paymentech and SPS Payment Systems.

Checkgateway Hires National Sales Manager

Checkgateway appointed Steven Lovato to serve as National Sales Manager. Most recently Lovato served as Client Operations Manager at Vital Processing. Previously he was an Account Executive with Paymentech LLC for the BankOne franchise group and a Relationship Manager at Heartland Payment Systems Inc.

RBS Lynk Names Director of Sales

Jerry Uffner joined RBS Lynk as Director of Sales for the Prepaid Products Division. Uffner brings more than 17 years' experience in card-based businesses.

He is a veteran of RBS Lynk, having started with the Card Issuing division in 1999. Prior to rejoining RBS Lynk, he served as Vice President of Sales at TenderCard LLC. He was also Vice President of Financial Services at InComm.

Wagner Joins TNB Card Services

Scott A. Wagner joined TNB Card Services as Executive Vice President. Wagner was most recently Senior Vice President, Client Development, at First Data.

Wagner brings more than 20 years of experience in corporate and entrepreneurial business management to TNB. Prior to First Data, Wagner held executive positions at Commerce Bancshares Inc.

KeyCorp Names Weaver EVP

KeyCorp appointed Jeffery J. Weaver Executive Vice President and Head of Portfolio Management. Previously, Weaver was Managing Director and Regional Portfolio Manager, credit portfolio management at TD Securities LLC, a subsidiary of Toronto-Dominion Bank. He also has held management positions at The Bank of New York, JPMorgan & Co. and Citicorp Investment Bank.

BOTTOM LINES

• A July report released by Merrill Lynch predicted that the convenience store industry, currently dominated by independent businesses, will see increasing consolidation in the coming years. The report claimed that 61% of convenience stores are non-chain, single operations.

• Baby-boomers are now becoming grandparents and the retail industry is ready. Grandparents spent a total of $23 billion on their grandchildren in 2002. By 2007 baby-boomers as a group are expected to have pre-tax income of $2.6 trillion.

• 7-Eleven Inc. will expand into more urban markets, including New York City, Chicago, Boston and Los Angeles. The company also recently announced the introduction of a contactless payment program in conjunction with JPMorgan Chase & Co.