NEWS

MasterCard Reveals Boost in Cross-Border Spending

A new MasterCard International report analyzes cross-border payments made with more than 350 million MasterCard and Maestro cards across 24 countries. The report shows that cross-border spending grew 12% in 2004. It also reveals two new, rapidly growing drivers for growth: a 22% growth in cross-border debit and a 67% increase in cross-border online spending using the Web, phone and mail order. Download a copy of the report, "Europe's Borderless Economy"
at www.mastercardintl.com/docs/MasterInsights_Europe_2005_Europes_Borderless_Economy.pdf .

Nearly All Credit Cards to Offer Rewards, Report Predicts

By 2009, 85% of consumer credit cards in circulation will offer a reward for usage, according to "The U.S. Market for Rewards Cards," a report from Packaged Facts, a division of MarketResearch.com .

The report speculates that younger cardholders will be more likely to use and/or convert to rewards card programs because they have grown to expect such programs as a part of engaging with their card issuer. Older consumers, especially the less affluent, might be less likely to do so, the report found.

Chamber of Commerce and Visa Launch Data Security Campaign

Visa U.S.A and the U.S. Chamber of Commerce launched a nationwide data security campaign to encourage a more coordinated effort between the payments industry and merchants to protect customer data and reduce fraud. The organizations will hold a series of nine joint seminars to help businesses understand current requirements for proper handling of customer data, reduce card-related fraud, and know where to go for additional information. The seminars will include representatives from Visa, the local chamber of commerce and members of Congress. For more information, visit:

• www.uschamber.com/sb/security/default
• www.visa.com/cisp
• www.visa.com/merchant

ANNOUNCEMENTS

DynTek Selected as a Qualified Independent Security Assessor

Visa International selected DynTek Inc. as a Qualified Independent Security Assessor (QISA) for the Visa Canada Account Information Security (AIS) program. As a QISA, DynTek provides review and assessment services to any entity that processes or stores Visa account data, including merchants, processors and service providers, to determine if they meet mandated security requirements. DynTek conducts security assessments, security questionnaires and on-site audits.

Fifth Third Processing and RBS Lynk Recognized

For the 10th consecutive year, Visa U.S.A. awarded Fifth Third Processing Solutions its Member Service Quality Performance Award. Fifth Third earned top honors for Lowest Chargeback-to-sales Ratio among credit card processors. Visa also recognized RBS Lynk by awarding it the Visa Service Quality Performance Certificate of Recognition for Non-duplicate Settlement Transactions for zero duplicate transmissions from its endpoint processing during the 2004 award period.

Q Comm Announces New Funding

Q Comm International Inc. raised approximately $1.9 million through the combination of a private placement of newly issued shares and the issuance of a note and warrants. Q Comm completed a private placement of 427,000 newly issued shares of its common stock at $3.07 per share, generating gross proceeds of more than $1.3 million.

PARTNERSHIPS

AmbironTrustWave and First Data Partner

AmbironTrustWave will offer Payment Application Best Practice (PABP) compliance validation services to all third-party POS software vendor products certified or planning to certify to any First Data Merchant Services (FDMS) platform. First Data Corp. recently issued a letter to all affected parties mandating that they complete a PABP audit within 90 days of receipt of the letter. The letter also identified AmbironTrustWave as the preferred provider of PABP services to First Data software vendors.

Certegy Partners With Parsam Technologies

Certegy Inc. partnered with Parsam Technologies to broaden its suite of e-payment and e-banking services. Parsam's uMonitor technologies automate financial service functions, including e-banking applications. Through the new relationship, Certegy will offer online bill presentment, new account services and loan services to its clients through a private-label arrangement using the Certegy brand.

First Data Expands International and Supermarket Client Base

First Data expanded its presence in China and North Asia with a broader set of payment solutions. The company joined forces with JCB to enhance its VisionPLUS card processing system to support JCB issuance and acquiring. First Data will support JCB in its efforts to enable First Data's worldwide client base to issue JCB cards.

First Data will also integrate aiCorp's RiskNet fraud detection system into its processing centre in Shanghai, making available the ability to monitor client transactions in near real-time and providing prompt notification of fraudulent account activity. In addition, First Data will assimilate Austin Logistics' credit risk management analytic and business intelligence technologies into the financial processing systems it sells in China, Taiwan, Hong Kong and Korea.

In other news, First Data announced agreements with several supermarkets. These include Food Lion, Hannaford Supermarkets, Sweetbay/Kash n' Karry Supermarkets and Harveys. First Data will process credit, debit and electronic benefits transfer transactions for the more than 1,500 combined locations.

Fiserv Credit Processing Launches Merchant Services Program

Fiserv Credit Processing Services introduced a solution to offer merchant acquiring services to its financial institution clients. The service is offered through an alliance with the Primax Payment Systems division of the T.K. Keith Co.

GLOBALCash Signs Venture With International Global

GLOBALCash Inc., a subsidiary of PayStar Corp., entered into a joint venture partnership with International Global Xchange Inc. (IGX). With this partnership, GLOBALCash will use the IGX suite of eWallet stored value services. A rechargeable stored value card accompanies the accounts for cardholders outside the United States and Canada and will contain additional services such as unified messaging and loyalty programs.

Hypercom Featured at All-Star Game

A MasterCard International FanFest Scorecard promotion at the Major League Baseball All-Star Game featured Hypercom Corp. Optimum T4100 terminals. An estimated 80,000 people attended the five-day event. Attendees relied on Hypercom Optimum T4100 multi-application terminals with ViVOtech Inc.'s ViVOpay 3000 contactless readers to read contactless MasterCard promotional smart cards encoded with prizes. The solution displayed the results on the T4100's graphic screen and printed receipts enabling winners to claim their rewards.

International Card Establishment Signs Two ISOs

International Card Establishment Inc. (ICE) signed two ISOs to its ISO Rep program. ICE agreed to handle all the credit card processing for Priority Merchant Services Inc. (PMS) and American Merchant Processing Solutions (AMPS). AMPS and PMS have a total of 16 sales representatives and are expected to increase their sales force to 20 by the end of the year.

The two ISOs will open 50 merchant accounts monthly. They expect to build their combined volume to more than 100 per month by the end of the year. With the recent signing, ICE is processing the merchant accounts of approximately 100 sales reps working as ISOs or directly for ICE.

Precision Dynamics Chooses Ezic

Precision Dynamics Corp. (PDC) recently selected Ezic Inc. as the Internet payment gateway of choice to support its Smart Band Wristbands and Smart Kiosk cashless payment solution. PDC has worked with Ezic to launch the technology introducing the kiosk and wristband combination at the 2005 Super Bowl. Since then, the two companies have installed kiosks in stadiums, water parks and fair grounds.

Princeton eCom and Striata Form Alliance

Princeton eCom Corp. formed an alliance with Striata to serve as the preferred processor for payments made via the Striata eBilling Suite. The eBilling Suite enables bills to be paid directly from a secure e-mail bill.

Radiant Systems Forms Partnership With RBS Lynk

Radiant Systems Inc. selected RBS Lynk as the preferred payment processor for Radiant's hospitality division Aloha suite of POS applications for restaurant operators. The alliance between Radiant and RBS Lynk provides an ACH component to the Aloha eCard.

Royal Farms Selects TNS' FusionPoint

Royal Farms Inc. selected FusionPoint by Transaction Network Services Inc. (TNS) to provide network transaction solutions for its 110 convenience stores throughout Maryland, Virginia and Delaware. TNS will provide Royal Farms with a network communications solution that enables disparate convenience store data communication systems to flow through one broadband channel. FusionPoint will support credit card authorizations and in-store, back-office applications.

ACQUISITIONS

Pipeline Data to Acquire Charge.com

Pipeline Data Inc. recently executed a merger agreement to acquire Charge.com Inc. for $7.5 million in cash and $9.5 million in shares of Pipeline Data common stock. The acquisition will bring Pipeline Data to the milestone of servicing more than 25,000 accounts. The combined entity expects to generate over 1,000 new merchant applications monthly by the end of the year.

APPOINTMENTS

MWAA Announces Advisory Board

The Midwest Acquirers' Association (MWAA) announced appointments to its newly created Advisory Board. The MWAA Advisory Board will provide assistance to the MWAA Board in guiding, planning and executing MWAA's strategic direction and activities of the association's annual conference. The new members are Donna Ayres of VeriFone, Brent Barg of SolutionFinders Inc., Rod Katzfey of ABN AMRO Merchant Services, Juan Ortiz of Online Data Corp., Mike Petitti of AmbironTrustWave and Mistee Spry of General Credit Forms.

Visa U.S.A. Appoints President and CEO

Visa U.S.A. appointed John Philip Coghlan, President and Chief Executive Officer. Coghlan joins Visa following 17 years at Charles Schwab & Co., where he most recently served as Vice Chairman of The Charles Schwab Corp. and as President of the Schwab Individual Investor Group.

At Schwab, Coghlan was a member of the Executive Committee of The Charles Schwab Corp., as well as President of the Board of Directors of The Charles Schwab Trust Co., a subsidiary of The Charles Schwab Corp. Before joining Schwab, Coghlan served as a founder and the Chief Operating Officer of San Francisco Grocery Express Ltd., a direct-response catalog grocery-delivery company.

Cardtronics Adds ATM CEO to Board of Directors

Ron Delnevo recently joined the Board of Directors for Cardtronics Inc. Delnevo is the CEO of Bank Machine Ltd, an ATM provider based in England. Cardtronics acquired Bank Machine in April 2005 and now operates it as a wholly owned subsidiary. Prior to his position as CEO, Delnevo served as Commercial Director for Bank Machine.

First Annapolis Promotes Modesitt

First Annapolis Consulting Inc. recently promoted Lee Modesitt to Principal. Lee has contributed to many of the firm's practice areas and high-profile projects since joining First Annapolis in 1998. In 2000, Lee joined the Electronic Banking practice area.

TransFirst Promotes Sacrider

TransFirst promoted Brooke Sacrider Corporate Marketing Director. Previously, Sacrider served as Sales and Marketing Coordinator for the company. Prior to joining TransFirst, Sacrider held positions with MoneyMaker and the city of Addison, Texas.

Retriever Payment Systems Announces President and CEO

Thomas A. Wimsett will succeed William H. Higgins as President and CEO of Retriever Payment Systems Inc. Higgins will continue to remain active with the company as Chairman of the Board.

BOTTOM LINES

• Millions of U.S. merchants will soon receive their share of the June 2003 $3.383 billion settlement from the Visa Check/MasterMoney Antitrust Litigation, the National Association of Convenience Stores reported. In the coming months, claim forms will be sent to merchants who are members of the class action settlement.
• Families will spend an average of $443.77 on back-to-school items, according to the results of a National Retail Federation survey. This is a decrease of 8.2% from $483.28 in 2004. The survey found that spending in this category is estimated to reach $13.39 billion this year, down from $14.79 billion last year.
• Detroit-based pizza chain Little Caesars Inc. plans to open 100 - 200 new stores across the country, focusing on Detroit, Los Angeles, Chicago and Houston. The company currently has about 2,000 stores nationwide.