Dear Clients:

It is hard to believe it has been just two months since I joined OneBridge as the president. Time has passed quickly as I have been meeting and reacquainting with employees, clients and partners, and expanding my knowledge of the payments industry and of the OneBridge operations.

As I look to the future for OneBridge, I see some very real opportunity for growth, specifically related to our product strategy, client relationship management, and sales & marketing. I also recognize that as we move forward, some of our greatest assets are our strong, established customer base, a sound and proven payment processing platform, and a solid 12-year history of industry experience.

Over the next few quarters, OneBridge will be making some additions to our existing Visa credit and signature debit offerings. We began offering PIN and ATM processing in 2006 and plan to continue to expand and enhance that solution. We are also looking to introduce a reloadable prepaid debit card through Visa to meet the demands of the accelerating prepaid market. Also on our list, is a robust business credit offering that will help you serve your small business clients.

In addition to continuing to enhance our service offerings, we are also planning to refocus our efforts related to client relationship management as well as sales and marketing. We are actively recruiting for additions to our team in these areas. I'm encouraged at the response in the market for talented individuals to join our team and hope to have the new positions filled shortly.

As you know, another key aspect of our business is our partnerships with other banking-related providers – core processors, card and PIN generators, fraud prevention services, etc. In that vain, we are working hard to make sure we are leveraging our existing partnerships as best we can, while also taking steps to expand our relationships with new providers. We know that these partnerships will help us better meet your needs as your single-solution payment processor.

All in all, I am very encouraged by what I have seen at OneBridge in these first couple of months. We have a dedicated team focused on maximizing the value of your payments programs – be it through making enhancements to the system, working with you on a day-to-day basis to answer your questions and handle any issues, or strategizing with you about your big-picture portfolio goals. I look forward to what lies ahead for OneBridge and am excited about continuing to develop and build our relationship with you.

To your continued success,

Jim Kern

Being able to see transactions on a map will assist you in identifying the geographic locations of cities and countries that you are unfamiliar with. Also, this high-level, visual snapshot can give you clues to potential fraud. For example, if on one card, you see a card present transaction in California and ten minutes later you see another card present transaction in France, you might be suspicious and want to follow-up with your cardholder.

GeoMap is accessible immediately. If you have any questions about this new feature, please call Heather Eikenberry Stoner at 800-322-4035 ext. 5828.

Example #1 – Name Matching
One of our clients implemented Name Matching on 10/25/06. About five days later, a fraudulent transaction came through for $430.99. Because of a name mismatch, this charge was declined. If not for Name Matching, this transaction would have been approved and likely would not have had chargeback rights.

Example #2 – Complex Authorization Filters
Another client implemented a very specific authorization filter on 2/20/07 to target fraud that was occurring at Wal*Mart stores in California. This client wanted to prevent the fraud with little to no impact to cardholders living or vacationing in California. To do this, they first collected the card numbers of the cards they did not want to put through the filter. Then, they determined that they would allow two transactions per cardholder per day at California Wal*Marts, as long as each transaction was under $300.00. Any transaction exceeding that limit would be declined. Less than two weeks later, on 3/05/07, a fraudulent authorization attempt for $1,017.47 was declined that would have otherwise been approved. In less than one month, this authorization filter prevented over $2,000 in fraud loss.

Example #3 – Broad Merchant Category Code Authorization Filters
There have also been quite a few instances when clients have set up authorization filters to limit activity on Merchant Category Codes (MCCs) that have experienced a high volume of fraud. One in particular was based on an alert Visa sent regarding MCC 4829 - Wire Transfer Money Orders. Upon receiving this alert, one of our clients implemented a block to allow only one transaction over $300.00 per day at MCC 4829. On 3/18/07, a charge was approved for $523.99 with an MCC 4829. Ten minutes later, an authorization attempt for $435.99 was declined on the same card, because it had passed the maximum parameters. Although the first one was approved because it was within the limits, both transactions were determined to be fraud. As a result of this authorization filter, the institution was able to identify the fraud, block the card, and prevent $435.99 in losses as well as any future potential transactions that could have taken their losses much higher.