Paybyweb Web Cam, one of the Nation’s leading providers of online payments, began broadcasting its operations over the Internet. Visitors to can watch the Sales and Marketing, I.T., and Check Processing departments with the click of a mouse. Cameras feed live video of Paybyweb via the company’s website at [][1].

“We have seen a growing trend towards companies putting up websites that offer merchant accounts and credit card processing, while providing little in the way of customer service or support,” said David Weiss, President and Chief Executive Officer. “More often than not, these companies don’t process their ‘clients’ payments and can take days to respond to inquiries. We are turning back time by answering our phones, promptly responding to emails, and putting the word `SERVICE’ back in Customer Service. In these days of automated e-mail replies that have replaced personal contact, has invested in technology that allows our clients to interact with us and actually see us working for them.”

About Paybyweb, Inc.

Paybyweb, Inc., based in Tampa Bay, Florida, has been a provider of secure electronic transactions since 1992, which makes them one of the most experienced players in the industry. They currently offer; merchant accounts, third party credit card processing, transaction gateway, EFT’s, pre-authorized draft printing, site design, hosting, and live bank verification. Businesses using the services offered by, can take orders by phone, fax, or over the Internet. processes payments for some of the Country’s largest companies, including AAA Motor Club, Nightingale Conant, Herbalife, and Investor’s Business Daily.



MasterCard International and Banco Edwards del
Banco de Chile announced that the Chilean Naval training ship Buque
Esquela Esmeralda successfully utilized MasterCard Corporate cards issued in
Santiago, Chile to finance their seven-month voyage through the Asia/ Pacific
region. The ship’s officers accessed funds in various ports in Peru, Mexico,
Japan, Korea, People’s Republic of China (PRC), Australia, Hawaii and New

“We are pleased to be able to assist the Chilean Navy, and this is a great
example of how government and corporations can use MasterCard’s Corporate and
Purchasing programs to their advantage. Payment utility across all markets was
a key factor for the Emeralda’s voyage through the Asia/ Pacific region.
MasterCard is the ideal organization to work with as the MasterCard Card® is
the world’s most accepted payment card, with over 22 million acceptance
locations,” commented MaryKay Gaines, Vice President Corporate Payment
Solutions for MasterCard International Latin America and the Caribbean Region.

“In recent studies conducted by MasterCard, corporate cards have been shown to
help corporations increase their efficiency by providing them better control
over their expense reporting and cash flow management,” she added.

In the past, the Esmeralda had to operate as its own bank. The MasterCard
Corporate cards issued to the naval ship’s top officers enabled them to access
funds at various ports to pay wages and payroll for the crew as well as
purchasing supplies, fuel and other requirements during the journey.

Lieutenant Commander Ian Carlo Ceppi said, “It was so easy to use and access
money when we needed it. It was a great advantage for us and the crew was
to be able to use their cards and spend their money.”

The benefits of traveling with a corporate card include the convenience of not
having to carry large sums of cash, safe and accurate transactions when making
withdrawals at merchant locations or ATMs and transparent reporting that saves
both time and money. MasterCard International has a wide assortment of
corporate payment solutions that can easily be adapted to meet the needs of
both corporations and the public sector.

About MasterCard International

MasterCard International has a comprehensive portfolio of well-known, widely
accepted payment brands including MasterCard, Cirrus and Maestro. More than
billion MasterCard, Cirrus and Maestro logos are present on credit, charge and
debit cards in circulation today. An association comprised of more than 20,000
member financial institutions, MasterCard serves consumers and businesses,
large and small, in 210 countries and territories. MasterCard is a leader in
quality and innovation, offering a wide range of payment solutions in the
virtual and traditional worlds. MasterCard’s award-winning Priceless
campaign is now seen in 80 countries and in 40 languages, giving the
brand a truly global reach and scope. With more than 22 million acceptance
locations, no card is accepted in more places and by more merchants than the
MasterCard Card. At Sept. 30, 2001, gross annual dollar volume exceeded US$704

Target School Fundraising

Target Stores has named 100 schools from across the country to receive a total of $500,000 in grants. Target will award $5,000 grants to what it has dubbed the “Target Honor Roll 100,” the 100 schools that have raised the most money per enrolled student in the Target School Fundraising program during the fall of 2001.

Target will host representatives from all 100 schools at a special “Target Honor Roll 100” ceremony in Washington, D.C. on April 20. Award recipients will bring the grants back to their school to spend on anything the school may need. As a part of the Target School Fundraising program, the grant money may be spent at the discretion of each school.

With School Fundraising, families, friends and community members can designate the eligible K-12 school of their choice to receive an amount equal to one percent of their Target(R) Visa(R) and Target Guest Card(R) purchases* at Target Stores and on Target also donates 1/2 percent of all Target Visa Card purchases made everywhere else.

In addition, Target will donate more than $10 million to schools nationwide in March, bringing the total donations to America’s schools to more than $51 million since the program began in 1997. Currently, more than six million guests have selected a school to receive School Fundraising dollars, and more than 114,000 schools are enrolled in the program.

The School Fundraising program is part of the Take Charge of Education(TM) initiative, which also offers scholarships and grants. Target Guests can enroll their school by calling 1-800-316-6142, or by visiting the Target Stores Web site at

About Target Stores

Minneapolis-based Target Stores serves guests at 1,019 stores in 46 states nationwide by delivering today’s best retail trends at affordable prices. Whether visiting a Target store or shopping online at, guests enjoy a fun and convenient shopping experience with access to thousands of unique and highly differentiated items. The largest division of Target Corporation (NYSE: TGT), Target Stores gives back more than $1 million a week to its local communities through grants and special programs. Since opening its first store in 1962, Target has partnered with nonprofit organizations, guests and team members to help meet community needs.

*The Target Guest Card(R) and Target Visa(R) Card are credit cards issued by Retailers National Bank, an affiliate of Target. Subject to credit approval. Subject to School Fundraising program rules.

The Target Honor Roll 100

School City State
— ABCS Little Canyon School Glendale AZ
— Desert Voices Oral Learning Center Phoenix AZ
— Laurent Clerc Elementary Tucson AZ
— Thomas J. Pappas School Phoenix AZ
— Aldea School Napa CA
— ACTS Christian School Merced CA
— Adventist Christian School Galt CA
— Chamberlains Acres School Hollister CA
— Fulton School Fresno CA
— Pinecrest Elementary Pinecrest CA
— Victress Bower School Norco CA
— Yosemite Park High School El Portal CA
— Columbine High School Littleton CO
— Loveland Center School Venice FL
— Munson Elementary School Milton FL
— The Victory School North Miami Beach FL
— Nevada SDA School Nevada IA
— Newman Catholic High School Mason City IA
— North Iowa Christian School Clear Lake IA
— Ottumwa Christian School Ottumwa IA
— Champaign SDA School Champaign IL
— Childs Voice School Elmhurst IL
— Downers Grove SDA Downers Grove IL
— Laureate Day School Des Plaines IL
— Progressive Path School McHenry IL
— Salina SDA School Salina KS
— Highland Presbyterian Louisville KY
— Louisville Deaf Oral School Louisville KY
— Clonlara Private School Ann Arbor MI
— Copper Harbor School Copper Harbor MI
— Holy Trinity Lutheran School Wyoming MI
— Mount Pleasant SDA School Mount Pleasant MI
— Plymouth SDA School Plymouth MI
— St. Joseph School Port Huron MI

School City State
— Academy of Holy Angels Richfield MN
— Austin Pacelli High School Austin MN
— Birch Grove Elementary School Tofte MN
— Bush Memorial St. Paul MN
— Church of St. Andrew School Elk River MN
— Family of Christ Lutheran Baxter MN
— Groves Academy St. Louis Park MN
— Guardian Angels School Chaska MN
— Hanska Community School Hanska MN
— Heartland Christian Academy Bemidji MN
— Holland Elementary Minneapolis MN
— Immaculate Conception School Minneapolis MN
— King of Kings Lutheran School St. Paul MN
— Laura Baker School Northfield MN
— Learning Center for Children Minneapolis MN
— Marquette Elementary School Virginia MN
— Minnetonka Montessori School Excelsior MN
— Most Holy Trinity School St. Louis Park MN
— New Ulm Christian New Ulm MN
— Northern Voices School Roseville MN
— Our Lady of the Prairie School Belle Plaine MN
— Our Savior Lutheran School Excelsior MN
— Prairie Creek Community School Northfield MN
— Ronald McDonald House School Minneapolis MN
— Southwest Christian High Chaska MN
— St. Andrew School Fairfax MN
— St. Anne School Le Sueur MN
— St. Bartholomew School Wayzata MN
— St. Bernard School Cologne MN

The Target Honor Roll 100 – Cont.

School City State
— St. Dominic School Northfield MN
— St. Hubert School Chanhassen MN
— St. Isidore Elementary Owatonna MN
— St. Johns Lutheran School Chaska MN
— St. John the Baptist School Excelsior MN
— St. John the Baptist School New Brighton MN
— St. John The Baptist School Vermillion MN
— St. Josephs School Grand Rapids MN
— St. Joseph School Red Lake Falls MN
— St. Joseph School Waconia MN
— St. Marys School Alexandria MN
— St. Mary School New Trier MN
— St. Peter School Delano MN
— St. Philip School _ Litchfield MN
— Summit School Duluth MN
— Johnston School Hammond MT
— St. Columbkille School Papillion NE
— Parkview Elementary School Milltown NJ
— Princeton Child Development Princeton NJ
— Little Earth School Santa Fe NM
— Carson City Adventist School Carson City NV
— Our Lady of Black Rock School Buffalo NY
— Montessori Center Room Cincinnati OH
— Lake Preston High School Lake Preston SD
— Watertown Christian School Watertown SD
— Memphis Oral School for the Deaf Memphis TN
— Kiest Park Christian Academy Dallas TX
— The Center for Hearing Speech Houston TX
— Halls Crossing School Lake Powell UT
— St. Coletta Day School Milwaukee WI
— L. E. Mason Christian Academy Cheyenne WY
— Tuckahoe Elementary School Arlington VA
— Boxelder Elementary School Glenrock WY
— La Pointe Elementary La Pointe WI
— Madison Seventh Day Adventist Madison WI


In a strategic
move to solidify Diebold’s existing customer base in Canada and build upon a
solid foundation of financial institution customers in the automated teller
machine industry, Diebold, Incorporated announced it has closed a deal to
purchase the ATM service business of Geac Canada Limited.

“This purchase will effectively expand our Canadian operations,” said John
M. Deignan, managing director of Diebold Company of Canada, Ltd. “We now have
a stronger presence in Western Canada, which complements our existing customer
base and enhances our service offerings for financial institutions.”

The acquisition provides Diebold with immediate inventory of parts,
technical documentation and trained personnel with the capability necessary to
serve its escalating customer base. By virtue of this acquisition, Diebold
will assume the role of premier service provider to North Shore Credit Union,
Squamish Credit Union, Surrey Metro Savings Credit Union, Vancouver City
Savings Credit Union and Westminster Savings Credit Union. In addition,
Diebold will service NCR-manufactured advanced-function and cash dispensing
terminals for the aforementioned customers. Diebold has hired all of the Geac
self-service personnel in Canada.

“As Geac continues with its corporate growth strategy, the company will
pursue opportunities that enable it to add intrinsic value to the entire
organization including customers, partners, employees and shareholders,”
declared Jim Handy, senior vice president, GES, North America. “By divesting
our bank machine teller maintenance business to Diebold we are focusing more
exclusively on providing our global customer base with the increased support,
service and technology developments core to their businesses. The customers
and employees affected will be given an opportunity to develop with a leader
in the self-service banking industry.”

About Geac Computer Corporation Limited

Geac Computer Corporation Limited (Toronto: GAC) headquartered in Markham,
Canada is a provider of mission critical software and systems solutions to
corporations around the world. Geac solutions include cross-industry
enterprise business applications for financial administration and human
resources functions, and enterprise resource planning applications for
manufacturing, distribution, and supply chain management. Geac also provides
industry applications to the real estate, restaurant, property, and
construction marketplaces, as well as a wide range of applications for
libraries, government administration and public safety agencies. Further
information is available on the World Wide Web at , or
through e-mail at [email protected] .

About Diebold, Incorporated

Diebold, Incorporated is a global leader in providing integrated self-
service delivery systems and services. Diebold employs more than 12,000
associates with representation in more than 80 countries worldwide and
headquarters in Canton, Ohio, USA. Diebold reported revenue of $1.76 billion
in 2001 and is publicly traded on the New York Stock Exchange under the symbol
‘DBD.’ For additional information on Diebold security, visit

Certegy Chairman

The board of directors of Certegy Inc., elected Lee A. Kennedy as chairman of the board of directors. Kennedy, 51, will also continue as president and chief executive officer.

“The election of Lee as chairman is part of the succession plan put in place when I agreed to serve as chairman for a one-year period following the spin-off from Equifax last year,” said Tom Chapman, chairman and CEO of Equifax. Chapman will continue to serve on the board until his term expires in May 2002.

“Lee and his team are focused on growth and maximizing shareholder value. I am most confident about the future of Certegy,” said Chapman.

“We deeply appreciate the contributions Tom has made to Certegy,” said Kennedy. “His dedication and vision have guided us since our inception and positioned us for continued success as a company.”

Certegy provides credit, debit and merchant card processing, e-banking, check risk management and check cashing services to over 6,000 financial institutions, 175,000 retailers and 140 million consumers worldwide. Headquartered in Alpharetta, Georgia, Certegy maintains a strong global presence with operations in the United States, Canada, United Kingdom, Ireland, France, Chile, Brazil, Australia and New Zealand.

As a leading payment services provider, Certegy offers a comprehensive range of transaction processing services, credit risk management solutions and integrated customer support programs which facilitate the exchange of business and consumer payments. Certegy employs over 6,100 associates in nine countries and generated $851 million in revenue in 2001. For more information on Certegy, please visit [][1].


Boston-based marketing firm DealJam LLC announced this week it has acquired 1-800-CREDITCARDS and has launched the Web site in conjunction with FL-based sub-prime MasterCard issuer Net First Bank. The Web site, which launched February 1st without editorial content, is a collection of banner ads representing 60 credit related products. Deal Jam specializes in acquiring/marketing domain names and has been pitching its domain name to industry players for the past year. The company, led by Andrew Miller and Peter Hubshman, also provides direct sales and marketing as well as product distribution to its affiliates and clients through partnerships and strategic alliances which utilize direct email, online marketing, direct mail, telemarketing, as well as direct response television. The firm launched Marketvision Direct in 1995. The company is also involved with Airline Promotions, Inc., and owns and operates DealJam is also a partner with and The firm said this week it is preparing to implement its proprietary search engine placement technology to achieve a higher placement among on Internet search engines for its new credit card site. Net First National Bank charges consumers a one-time reservation fee, up to $500, which fully utilizes the credit limit of its sub-prime MasterCard. Cardholders create available credit on their accounts by making payments on the balance. There is also a $99 processing fee to establish the account, a $96 annual membership fee billed monthly to the account, and a zero interest rate on the outstanding balance. The card is issued with no credit check on the applicant. (CF Library 11/8/01)


According to publicly disclosed results, NCR Corporation is again the
leader in financial self-
service solutions as NCR’s Financial Self-Service revenue increased by 7
percent to $1.6 billion during 2001.

Additionally, for the second successive year, NCR shipped more than 50,000
automated teller machines and cash dispensers in 2001. This continued
success has been aided by the increased demand for self-checkout units that
incorporate cash dispensers.

The company made further advances in the rapidly growing Asia/Pacific
region, confirming its lead position with double-digit growth. In Europe, the
Middle East and Africa, NCR experienced attractive growth, aided by the
successful euro conversion and important deals in all key markets, and has
retained a substantial lead over its nearest rivals in this region.

“This is an important achievement in the face of difficult economic
conditions. NCR is the global leader because we bring a wealth of experience
and do not lose sight of individual customer requirements,” said Keith Taylor,
senior vice president of NCR’s Financial Solutions division. “We have been
able to stay ahead of the pack by focusing on our customers’ business needs,
enabling them to reduce costs, enhance customer loyalty and generate new
revenue streams. I am confident that we have the right solutions to meet the
changing market requirements going forward.”

NCR stresses offering its customers competitive advantage with innovative
functionality. Progress was made in the area of new functions during 2001.
For example, NCR recently shipped its 10,000th multifunction Personas 86 Self-
Service TouchPoint(TM), a machine that was designed with the future of self-
service in mind, enabling automated cash and check deposit.

A significant number of NCR customers have also benefited by migrating
from the traditional OS/2 operating system to NCR’s APTRA(TM) suite of self-
service software (currently based on Windows NT, though in September NCR
announced its intention to offer Microsoft(R) Windows(R) XP to its self-
service customers). With APTRA and Windows, NCR has developed such
transactions as check imaging and check cashing, personalized customer
services and advertising. The APTRA software family has also helped position
NCR as the global leader in providing multivendor self-service software

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leader in providing Relationship
Technology(TM) solutions to customers worldwide in the retail, financial,
communications, manufacturing, travel and transportation, and insurance
markets. NCR’s Relationship Technology solutions include privacy-enabled
Teradata(R) warehouses and customer relationship management (CRM)
applications, store automation and automated teller machines (ATMs). The
company’s business solutions are built on the foundation of its long-
established industry knowledge and consulting expertise, value-adding
software, global customer support services, a complete line of consumable and
media products, and leading edge hardware technology. NCR employs 31,400 in
over 100 countries, and is a component stock of the Standard & Poor’s 500
Index. More information about NCR and its solutions may be found at


Vodafone UK, part of the
world’s largest mobile community, announced that it has selected iPIN, the
premier provider of e-Payment technology, to provide a payment platform for
new Vodafone m-pay bill service. iPIN’s e-Payment platform will enable
UK subscribers to make online purchases safely and securely over the Internet
or WAP. Vodafone’s m-pay bill will be available next month.

Using the new service, Vodafone UK subscribers will be able to charge low
digital content to their mobile phone accounts from companies offering
m-pay bill as a payment mechanism.

The iPIN solution is used for end-to-end electronic payments, managing the
transaction from the consumer payment to the clearing and settlement and
customer care. The application will incorporate several iPIN e-Payment
rules and security features, including delegation of authentication and single
sign-on guidelines as well as content-based authorization rules. iPIN’s
technology is also device agnostic, so that the service can be accessed via
or WAP channels as well as other interfaces such as SMS and IVR. The
benefit to
consumers is that the XML based user interface (UI) gives consumers a
consistent look and feel when making purchases in different environments.
“With additional market segments coming online, and a growing consumer base
accessing the Internet and the wireless Internet and paying with their mobile
phones, Vodafone m-pay bill will enable those new consumers and the already
m-commerce savvy groups to pay for digital content safely and securely, in a
user-friendly environment,” said Alexandre Gonthier, CTO of iPIN.

About iPIN

iPIN ( is a leading provider of e-Payment
software. iPIN’s
e-Payment software offers convenience and security to consumers as they make
Web and wireless purchases. Capitalizing upon the established infrastructure
that processes credit and debit card payments, iPIN complements existing
payment card channels by providing a wider selection of e-Payment options.
iPIN, payments can be made through bank accounts, stored value accounts, and
wireless bills using devices such as cellular phones, computers, smart cards,
and automotive transponders. iPIN’s products have been implemented
worldwide by
financial institutions, telecommunications operators, automotive OEMs, and
who want to drive additional revenues and become more involved with their
consumers as they make purchases beyond the existing customer or billing
relationship. iPIN customers include British Telecom, Hong Kong and Shanghai
Banking Corporation Limited, and France Telecom among others.

Versatile Smart Trading Card

Versatile Card Technology, Inc. announces the first Smart Trading Cards™ that can be digitally signed by athletes. In conjunction with StatCard Entertainment, Inc. and Toys “R” Us, Versatile Card Technology is announcing the 700 store, rollout of xAction Skate, the ultimate in trading cards, combining the lucrative markets of video games and trading cards for the first time.

“Since we opened our international flagship store we have been fortunate enough to host some rather stellar events, from the launch of the X-box to an in-store appearance by Destiny’s Child,” said Wayne Yodzio, Vice President, World Manager, Toys “R” Us, Inc. “We are very pleased to continue that tradition with the launch of StatCard’s Smart Trading Cards. We truly feel as though this is a revolutionary concept, and we look forward to introducing the XAction Skate series in all of our U.S. Toys “R” Us stores next month.” Officially launched on January 28th in Times Square New York, the web based computer game employs advanced Microcontroller cards, sophisticated encryption, PC connected smartcard readers and a new key chain sized reader featuring a scrolling text LCD display.

“StatCard’s Smart Trading Cards are the ultimate incarnation of trading cards. We have created an entertainment experience that brings together both the digital and the physical world. For the first time, the consumer is truly given the power to have an active role in determining the value of their trading cards,” said Arthur Swanberg, CEO and President of StatCard. “We’re excited that the most influential toy company in the world, Toys “R” Us, has the foresight to recognize the potential of this new entertainment medium that StatCard has created.”

StatCard has brought to life skate boarding’s top 10 athletes (including Bucky Lasek, Bob Burnquist and Shaun White), allowing cardholders the chance to compete as their favorite athlete in single or multiplayer skate games, enter online skate tournaments, and earn rankings. Each trading card offers unique playing features; cardholders can also collect 30 XAction Skate Booster Cards that add new dimensions to the online experience. The cards, which incorporate programmable Microcontrollers, are connected to computers via a smartcard reader. Cardholders can also show off their point accumulations and successes with friends on a key chain-sized StatCard Mini-Reader that scans the data from their cards, creating the first truly interactive trading experience. In addition, while other trading cards can only be autographed, the StatCard can be digitally signed by athletes.

This means the collector not only has the fun of playing an autographed card online; he can authenticate the digital signature as well. Swanberg said that the project “… was the result of two years of product development and pilots which required close cooperation with VCT as suppler of the underlying smartcard products and StatCard Entertainment who developed the platform.”

Rome Jetté Vice President, Smartcards for VCT said, “From the beginning, I was impressed with the creativity and innovation of the StatCard team. This project has reinforced my conviction that the next wave of growth in the smartcard industry will be the result of card manufacturers committing to the task of empowering software and marketing orientated companies like StatCard.” Swanberg echoed this point saying, “VCT was chosen for this project because they had all the smartcard expertise we needed but were not themselves in the application development business. This gave us the confidence to share our smartcard related ideas and focus on the challenges of development.” Nick Cooney, President of VCT, sees the beginning of an industry trend, “With innovative ideas like using digital signatures to autograph Smart Trading Cards™, StatCard has shown that smartcards can be fun and in a way that only an entertainment company could. I think this product shows that the smartcard industry and it’s underlying technology, have matured to a point where we no longer will be looking to card manufacturers to dream up the next ‘killer application’.”

Retail pricing is set at $7.99 for each XAction Skate Smart Trading Card, while booster packs provide a trio of cards for $8.99. The main StatCard Reader is priced at $19.99. With StatCard Mini-Readers selling for $8.99.

About Toys “R” Us, Inc.

Toys “R” Us The world’s leading resource for kids, families and fun currently operates 1,607 Stores: 703 toy stores in the United States, 509 international toy stores, including franchise stores, 184 Kids “R” Us children’s clothing stores, 162 Babies “R” Us stores and 49 Imaginarium stores. sells merchandise on its Internet sites at [][1], [][2] and [][3]

About StatCard Entertainment, Inc.

StatCard Entertainment, Inc. ([][4]) is the first company to bring the application of smart card technology to the entertainment world. Smart Trading Cards, StatCard’s initial product that uses patent-pending smart card applications, offers consumers a fresh approach to entertainment by uniting the independently successful categories of interactive online entertainment, trading cards, and smart cards for the first time. StatCard Entertainment, Inc. is a privately held corporation based in Norwalk, Connecticut.

About Versatile Card Technology, Inc.

VCT is a global leader in card manufacturing. Visa and MasterCard certified, VCT produces over 800 million plastic cards a year through its production facilities in the USA, Europe, Asia, and South America. With card related products and services for that range from temporary membership cards to EMV certified smartcards and readers, VCT is a one-stop shop for software, integration, and marketing companies looking for card solutions. Contact: Versatile Card Technology, Inc. (VCT) 5200 Thatcher Rd. Downers Grove, Il. 60515 [][5]


Volume Cranks Down

It’s no surprise that credit card charge volume dropped sharply last year, especially following the 9/11 attacks. Among the top ten U.S. issuers, volume was up a mere 7.9%, compared to 13.2% for 2000. American Express posted its worst year for volume growth in a decade. During 1991, AmEx volume declined 1.2% in the face of a full blown recession. Last year, AmEx volume inched up by only 1.4%, compared to an 18.8% gain in 2000, and a 12.6% gain in 1999, according to CardData ( The AmEx gain is remarkable given the collapse of corporate spending in the first half of 2001, and the collapse of travel spending in the second half of last year. Bank One/First USA was also impacted last year, posting a 1.4% decline in charge volume. Above average attrition and weak travel sales were to blame. Meanwhile, Capital One lead the top ten with a 35% jump in charge volume. However, if international volume is discounted, Cap One’s volume was up an estimated 20%. Chase was the surprising runner-up, with an 18.5% volume growth rate. For the first time in the industry’s history, charge volume topped $1 trillion among the top ten issuers.

1. American Express $ 224.6b $221.6b + 1.4%
2. Citibank $ 218.5b* $195.5b* + 11.8%
3. MBNA $ 142.3b* $125.7b* +13.21%
4. First USA $ 140.4b $142.4b – 1.4%
5. Discover $ 93.3b* $ 90.1b* + 3.6%
6. Chase $ 71.9b $ 60.7b + 18.5%
7. Capital One $ 50.6b* $ 37.5b* + 34.9%
8. Bank of America $ 48.9b $ 45.4b + 7.7%
9. Household $ 34.9b $ 33.0b + 5.8%
10. Providian $ 30.5b $ 26.3b + 16.0%
TOTAL $ 1055.9b $978.2b
+ 7.9%
* Citibank includes data from Canada and Mexico; Capital One may include some
international data; MBNA includes international; Discover data as of 11/30/01;
Source: CardData ( RAM Research Group’s Bankcard Barometer


Home Capital Group Inc. (TSE:HCG.B) announced the results of a year marked by
record earnings and key milestones
that widened the scope of its business activities and positioned the Company
for continuing growth going forward. These unaudited results were generated by
the Company’s wholly owned subsidiary, Home Trust Company.

– This represents the 26th consecutive quarter in which earnings have
exceeded those of the previous quarter.

– Return on equity over 20% for fourth consecutive year.

– In January 2002, 1.5 million Class ‘A’ multi-vote shares were
converted to the same number of single vote Class ‘B’ subordinated
voting shares without benefit or enhancement.

– Home Trust’s core residential first mortgage business remains strong.

– The Company is well positioned to continue its upward earnings
momentum in 2002.

Home Capital Group Inc. is a holding company, publicly traded on the
Toronto Stock Exchange (HCG.B), operating through its principal subsidiary,
Home Trust Company. Home Trust is a federally regulated trust company offering
deposit, mortgage lending, retail credit and credit card issuing services.
Licensed to conduct business across Canada, Home Trust has offices in Ontario,
Alberta and British Columbia.



Record earnings achieved during 4th quarter and the year

Home Capital Group Inc. (TSE:HCG.b) has completed the most successful
fourth quarter and year in its history. The Company has met or exceeded each
of its previously stated annual performance targets. Even more important,
there is every reason to believe that the Company will maintain this positive
trend during 2002 through its wholly owned subsidiary, Home Trust Company.

26th consecutive quarter of increasing earnings

Net income for the fourth quarter grew by 37.6% to $4,113,585 from the
$2,990,255 recorded for the same period in 2000. Net earnings per share for
the quarter rose by 35.0% to $0.27 from the $0.20 for the previous year.

For the year, the Company realized net earnings of $14,859,569, up 42.2%
over the $10,451,634 achieved during 2000. Net earnings per share for the year
rose by 39.4% to $0.99 from $0.71. Fully diluted earnings per share rose 37.9%
from $0.66 to $0.91.

The Company greatly exceeded the targets announced in the 2000 Annual
Report, of at least 20% growth in earnings and in fully diluted earnings per
share for the 2001 fiscal year.

Return on equity over 20% for 4th consecutive year

Return on equity during the fourth quarter was 22.5% as compared to the
24.8% achieved one year earlier. This reduction resulted from the additional
$13,440,000 in equity raised in September 2001. For the year return on equity
increased to 23.8% from the 23.2% recorded in 2000.

This represents the fourth consecutive year in which return on equity has
exceeded 20%.

Asset growth over 27%

Assets grew to $1,121,214,975, an increase of 27.1% over the $881,924,852
at year-end 2000. In addition, the Company administers a portfolio of
backed securities originated and sold by Home Trust, which grew from
$12,422,409 at the year ended 2000 to $65,626,630 for the current year end and
is not reflected in the asset total.

Responsible risk management continues

Net impaired loans at the end of 2001 represented 0.52% of the total
portfolio, remaining the same as the third quarter of 2001, up from the 0.39%
recorded at year-end 2000.

The Company had also targeted an increase in its general allowance during
2001 so that it would represent at least 90 basis points of risk-weighted
assets at year-end. This provision stood at $5,517,376 at December 31, 2001,
representing 91 basis points of risk-weighted assets and an increase of
$1,368,245 from the amount at the end of the previous year.

General allowance included in tier 2 capital

During the quarter, the Office of the Superintendent of Financial
Institutions Canada (OSFI) authorized Home Trust to include a portion of the
Company’s general allowance in tier 2 capital. This approval from OSFI permits
the Company to include over $5 million of its general allowance as part of its
regulatory capital base.

At year-end, the Company’s tier 1 capital rose to $66.1 million from
$45.5 million reported at the end of 2000. Total capital rose to $86.4 million
from $60.5 million in 2000. Total capital ratio at year-end was 14.3% which is
significantly higher than the average of the six leading banks at 12.5%.

Continued success with mortgage-backed securities (MBS)

Mortgage securitization continues to represent a profitable and
sustainable segment of the Company’s business. During the fourth quarter the
Company issued a further $11.1 million in MBS pooling of residential
mortgages, generating $881,000 in revenue. During the year as a whole, the
Company issued $57.7 million in mortgage-backed securities, resulting in
revenues of $3.0 million.

Home Trust VISA focuses on secured credit card

The Company’s original strategy was to provide a credit card to the
underserved market, which would include both secured and unsecured products.
Through ongoing testing and behaviour analysis in the marketplace, Home Trust
has identified the consumer need for the secured product and is now focussing
on this product. There is a large opportunity to provide a service to
Canadians that are establishing or re-establishing their credit. As at
December 31, 2001 the number of cardholder accounts totaled 21,395 as compared
to 2,060 at the end of 2000. Receivables have grown to $11,404,992 from
$339,210 last year. With the VISA credit card portfolio continuing to mature,
we anticipate the VISA program will be profitable in 2002.

Progress in retail credit services

The Retail Credit Services division, formed during the second quarter of
2001, continued to grow through year-end. Designed to provide financing for
customers purchasing products from 20 established businesses, the division
ended 2001 with $3,260,671 in receivables. During the fourth quarter a
contract was signed with Creditwave to provide consumer financing for Staples
Business Depot. An agreement was also signed with Aeros Canada Inc.
(Electrolux). The Company is encouraged by the positive launch of this new
line of business and anticipates the division will make a measurable
contribution to earnings during 2002.

Quarterly dividend declared

The Board of Directors declared a quarter_y dividend of $0.025 per share
payable on March 1, 2002 to shareholders of record at the close of business on
February 14, 2002.

Share conversion announced

Subsequent to the end of the quarter, on January 25, 2002, Home Capital
announced a share conversion that reduced the number of the Company’s multi-
vote shares. The holders of the Company’s 3,025,000 convertible Class ‘A’
multi-vote shares have converted 1.5 million of the Class ‘A’ shares into the
same number of single-vote Class ‘B’ subordinated voting shares. The 1.5
million shares have been listed on the Toronto Stock Exchange.

This conversion increased the float of publicly traded Class ‘B’ shares
from 13,322,610 to 14,822,610 with no dilutive effect on the Company’s
earnings per share. Following this conversion, the remaining 1,525,000 Class
‘A’ shares will represent 7.6 million votes (34%) while the Class ‘B’ shares
will represent 14.8 million votes (64%). The Class ‘A’ shareholders have taken
this action without benefit or enhancement. They and the Board agreed that
reducing the number of multi-vote shares outstanding is in the best interests
of Home Capital and all of its shareholders by enhancing the liquidity of the
Class ‘B’ shares and placing voting control in the hands of the investing

A positive business environment and outlook

The Company believes that the positive performance in the quarter under
review and the year is sustainable. There exists a strong demand in the
marketplace for national alternatives to the products offered by traditional
financial institutions. Home Trust has been successful in understanding and
meeting the needs of this large target market.

Canada is experiencing somewhat softer economic conditions, however we
have not seen any negative effects on the growth or profitability of the
Company to date. We remain vigilant and are confident that our well regarded
underwriting techniques and risk management procedures will continue to serve
us well in the future.

The Company is well positioned to continue its upward earnings momentum
and we are confident in our ability to continue generating value for all
shareholders during 2002.

Block Terminals

The single largest rollout of check conversion technology ever is underway as H&R Block deploys VeriFone ‘Omni 3200’ terminals and ‘CR 600 MICR’ check readers to most of their 10,400 offices, using NPC as the acquirer. Currently, over 5,000 terminals have been installed in the corporate offices, with additional terminals to be installed on an ongoing basis. The installation will enable H&R Block to offer the credit card option to all their customers, including services such as tax preparation fees, mortgage origination, debt consolidation, and financial planning. H&R Block also recently doubled its number of check cashing machines. ACE Cash Express installed 100 automated self-service machines in select Block offices in 21 states. The machines enable Block clients to cash their tax refund checks in most instances in less than one minute. (CF Library 1/18/02)