LML PATENT

Vancouver-based LML Payment Systems has received notification from
the U.S. Patent and Trademark Office that its patent application for the
electronification of checks has been approved. LML is a financial payment
processor providing check processing solutions including electronic check
authorization, electronic check conversion and primary and secondary check
collection including electronic check re-presentment to national, regional
and local retailers. The company also provides selective routing of debit,
credit and EBT transactions to third party processors and banks for
authorization and settlement.

SUREFIRE ISO

Montreal-based SureFire Commerce Inc. announced that its U.S. subsidiary has been formally certified and registered as an Independent Sales Organization by VISA and MasterCard. Boston and Houston-based SureFire Commerce Corp. will immediately offer VISA and MasterCard merchant accounts to mainstream POS and e-commerce/card-not-present customers throughout the USA. SFCC will for the first time in the SureFire group’s history be able to acquire transactions for retail point-of-sale merchants. The company expects first year USA revenues to exceed C$10 million. SureFire recently merged with ebs Electronic Billing Systems AG.

ADVANTEX & UAL DEAL

Toronto-based Advantex Marketing has signed an agreement with UAL Loyalty Services to develop a shopping program for “United Mileage Plus” members offering mileage awards on purchases at local, regional and national retailers in multiple categories. he benefit will also be available for “Mileage Plus VISA” cardholders. They will automatically earn additional miles on their card purchases when shopping and using their “Mileage Plus VISA” card at participating merchants. United Mileage Plus members who do not carry a “Mileage Plus VISA” card can earn miles by pre-registering any credit card of their choice with Advantex. Advantex’s streamlined award processing system eliminates the requirement for members to carry or present a secondary card to earn miles on their purchases. The program is scheduled to commence in the Fall of 2003.

GLOBAL E-TELECOM & DESTINBANK

LML Payment Systems’s Global eTelecom subsidiary has entered into a long term technology service agreement with Florida-based DestinBank. DestinBank will provide Electronic Check Conversion to its customers and a network of banks nationwide by licensing in-house Global eTelecom’s proprietary Electronic Check Conversion Technology. LML Payment Systems is a financial payment processor providing check processing solutions including electronic check authorization, electronic check conversion and primary and secondary check collection including electronic check re-presentment to national, regional and local retailers.

AEROPLAN DEAL

Bankrupt Air Canada has received an unsolicited and non-binding expression of interest for a credit card agreement in regard to its “Aeroplan” frequent flyer program. Reportedly, MBNA has made an offer to be the exclusive credit card partner of Air Canada, replacing Canadian Imperial Bank of Commerce. MBNA currently issues a co-branded “Aeroplan” credit card in the USA. Earlier this month, Air Canada and CIBC agreed to extend their “Aeroplan” air miles contract from 2009 to 2013. Under terms of the deal, CIBC agreed to boost its prepayment to Air Canada for air miles from $200 million to $350 million, and agreed to pay Air Canada a higher price per “Aeroplan” mile. CIBC purchases “Aeroplan” miles to issue to CIBC “Aerogold VISA” credit card customers. As at March 31st, CIBC carried the payment at $181 million on its balance sheet. In February, Air Canada and MBNA launched the “Air Canada Aeroplan Platinum Plus MasterCard.” The program enables “Aeroplan” members, resident in the USA, to accumulate one “Aeroplan Mile” for every dollar spent on eligible purchases. There are 400,000 “Aeroplan” members in the USA. Since its inception in 1984, Aeroplan has generated more than six million members in over 200 countries and has signed over 90 partnerships. In January 2002, “Aeroplan” became a wholly-owned subsidiary of Air Canada. Since then Air Canada recently agreed to let Onex Corporation acquire a 35% equity interest in “Aeroplan” for $245 million.

MONERIS CARDINAL CENTINEL

Moneris Solutions, a joint investment of the Royal Bank of Canada and the
Bank of Montreal, now offers CardinalCommerce’s payment authentication
software, “Cardinal Centinel,” to its online merchant customers. The
software enables the utilization of multiple factors to authenticate
individuals coupled with an audit trail that issuers may use for
validation. The technology-neutral architecture will recognize and use
today’s authentication systems, including a user’s name and password, smart
cards, digital certificates, biometrics, and even mobile or wireless
devices. Moneris Solutions serves more than 330,000 North American merchant
locations.

HOME CAPITAL 1Q/03

Toronto-based Home Capital Group reported that its personal and credit card loans have grown 86% over the past year from $15.3 million to $28.5 million. At of the end of 1Q/03, the gross credit card receivable balance included $12.9 million in accounts secured by cash deposits or mortgage collateral, and $6.2 million in unsecured accounts. The total credit approved is comprised of $21.3 million in secured and $9.1 million in unsecured accounts. Security deposits on VISA accounts amounted to $10.8 million. “Equity Plus VISA” credit cards are secured by a collateral residential mortgage, and this product
amounts to $6.4 million of the credit card receivable balance.

NO-FREE SCOTIAGOLD

Scotiabank has launched the “No-Fee ScotiaGold VISA” card. The
card carries an interest rate of 18.50%, a $5,000 minimum credit line, and
does not offer a rewards program. In addition to the new card, Scotiabank
currently offers the “Scotiabank Classic VISA”; “No-Fee Scotiabank Classic
VISA”; “Scotiabank Value VISA”; “Scotiabank Value VISA”; “No-Fee Scotiabank
Value VISA”; “No-Fee Scotiabank Value VISA”; “ScotiaGold Preferred VISA”;
and, “ScotiaLine VISA.”

TSYS 1Q/03

During the first three months of this year TSYS successfully
converted 5 million CIBC accounts and 750,000 Barclaycard account
portfolios. At the end of the first quarter, TSYS had 37.4 million
international accounts on-file, a 33.4% increase over 1Q/02. Total
international revenues for 1Q/03 were $18.7 million versus $15.1 million
for 1Q/02, a 24% increase. Net income for international accounts during the
first quarter was $930,000 compared to a $32,000 net loss, one year ago.
Also during the quarter, Pitney Bowes chose TSYS to process more than 1.5
million postage payment and credit accounts in the United States, the
United Kingdom, and Canada.

AEROPLAN CONTRACT

Air Canada and CIBC have extended their “Aeroplan” air miles contract from
2009 to 2013. Under terms of the deal,
CIBC agreed to boost its prepayment to Air Canada for air miles from $200
million to $350 million, and agreed to pay Air Canada a higher price per
“Aeroplan” mile. CIBC purchases “Aeroplan” miles to issue to CIBC “Aerogold
VISA” credit card customers. As at March 31st, CIBC carried the payment at
$181 million on its balance sheet. Meanwhile, Air Canada announced that it
will begin charging “Aeroplan” members a $25 fee to book a reward flight
and a fuel surcharge fee up to $50 for each ticket. The new fees will take
effect April 30th. However the booking fee will be waived till January 2004
for members who book flights online.

GPN K26

Global Payments has introduced a new retail and T&E processing
solution to small and midsize Canadian merchants. The “Retail dvantage K26”
and the “Travel and Entertainment dvantage K26” applications run on the
Keycorp “K26” POS terminal. The “K26” platform combines a high speed
thermal printer and powerful processing capability with multiple
applications such as “Central Balancing” for multi-lane merchants, general
retail and loyalty functionality.
For multi-lane retail merchants, the “Retail dvantage K26” enables a
merchant to simply close all of their devices and generate reports and
reconciliation for their transactions from one central store controller.
The “Travel and Entertainment dvantage K26” offers added customized market
features including “Menu Shortcuts” for standard T & E transactions with
a backlit PIN Pad, which includes debit tipping, and tip reporting.

FOREIGN EXCHANGE FEES

A New Democrats legislator has asked Canada’s deputy prime minister to
investigate foreign exchange fees charged to Canadian credit cardholders by
VISA, MasterCard, American Express, and their respective member-issuers.
The request follows on the heels of an April 8th decision by a California
Superior Court judge who ordered VISA and MasterCard to refund more than
$800 million in foreign currency conversion fees to U.S. cardholders.
According to the Toronto Star, NDP finance critic Lorne Nystrom estimates
Canadians could be owed up to $100 million in foreign exchange fees.
Nystrom said in the House of Commons that the foreign surcharge ranges
between 1.5% and 1.8% in Canada. The California court also ordered VISA and
MasterCard to amend their operating rules to require their issuing members
to make effective disclosure of the currency conversion fees charged to
consumers. VISA was ordered to refund the one percent currency conversion
fees to all cardholders in the USA while MasterCard was ordered to refund
the currency conversion fees to all its California consumers. Both VISA and
MasterCard plan to appeal. American Express was just served with the lawsuit.