NOVA Information Systems (NOVA), a wholly owned subsidiary of U.S. Bancorp, has announced that it has entered into a definitive agreement to acquire the merchant processing business of First Horizon Merchant Services Inc. (FHMS), a wholly owned subsidiary of First Tennessee Bank and a part of First Horizon National Corp.

TextPayMe CEO Phil Yuen emailed me today with some updates on his recently launched mobile payments startup.

In a Form 4 filing with the SEC today, former First Data Chairman and CEO Charlie Fote disclosed the sale of another 262,000 shares of First Data Corp. stock last Friday grossing about $11.8 million.

Javelin Strategy & Research and the Council of Better Business Bureaus have released some of the results from their 2006 Identity Fraud Survey reporting that "that despite growing fears the growth of identity fraud is contained and that data compromise through the Internet is actually less severe, less costly and not as widespread as previously thought."

CardinalCommerce has announced it is now partnering with MODASolutions to offer SECURE-eBill, a payment option that enables consumers to shop online and pay for their purchases through the comfort and security of their online banking account.

TowerGroup comments on the spin-out of Western Union from First Data Corp. as announced last Thursday.

David Milstead writes for the Rocky Mountain News about former First Data Corp. Chairman and CEO Charlie Fote selling $108 million of FDC stock last Friday following the company's announcement Thursday that it would be restructuring with the spin-off of Western Union. The sale was disclosed in an SEC filing from the company yesterday.

Javelin Strategy & Research has launched a new blog where, according to Bruce Cundiff, manager of Javelin's syndicated research practice, they intend to provide more information about their research findings and more frequent insight and analysis.

Internet Retailer reports on Visa International's efforts working with Innovative Card Technologies and nCryptone to bring to market a card containing a display that will present one-time use passcodes for use in making ecommerce purchases.

Lipman Electronic Engineering Ltd. has announced that it has received a contract to supply $7 million of customized POS terminals and pin pads to the Industrial and Commercial Bank of China (ICBC).

Sewell Chan reports for the New York Times on the Metropolitan Transportation Authority's upcoming trial with MasterCard and Citibank of PayPass technology for payment of subway fares.

FASTLANE has published a press release with a bit more background on their new driver's license-based payments network planned for official introduction at the ETA show in April.

Note: Throughout the day, as Payments News happens, this post is updated.

• WSJ: Diebold Could Be a Cash Machine For Investors Willing to Wait It Out
• SYSPRO Announces SYSPRO CyberStore to Automate B2B, B2C Sales