MBNA’s Metrics Improve Slightly in July

MBNA’s managed delinquency ratio for credit cards edged down by one basis point to 4.15% in July after remaining flat for three consecutive months. The charge-off rate also declined by one basis point to 4.49%, marking its third consecutive monthly decline. MBNA’s managed credit card outstandings continues to rebound, increasing $600 million in July to $96.7 billion. MBNA recently reported that U.S. card loans grew from $74.8 billion in 1Q/05 to $75.0 billion in 2Q/05 but remain 8% lower than one-year ago. MBNA’s managed charge-off ratio for June was 4.50%, compared to 4.77% for May, and 4.52% one-year ago. In July 2004, the delinquency ratio stood at 4.00%. The high last year was 4.49%. For complete details on MBNA’s second quarter results and monthly metrics, visit CardData ([www.carddata.com][1]).

MBNA CONSUMER CREDIT CARD SNAPSHOT
Month Outstandings Charge-offs Delinquency
Jul 04 $ 99.5b 4.52% 4.00%
Aug 04 $ 99.7b 4.52% 4.01%
Sep 04 $ 98.8b 4.22% 4.15%
Oct 04 $ 98.5b 4.36% 4.18%
Nov 04 $ 99.9b 4.33% 4.21%
Dec 04 $101.9b 4.12% 4.20%
Jan 05 $ 98.6b 4.46% 4.34%
Feb 05 $ 96.9b 4.27% 4.50%
Mar 05 $ 96.1b 4.29% 4.35%
Apr 05 $ 95.9b 4.34% 4.16%
May 05 $ 95.0b 4.77% 4.16%
Jun 05 $ 96.1b 4.50% 4.16%
Jul 05 $ 96.7b 4.49% 4.15%
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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TNB Buys Four Credit Union Portfolios

Dallas-based TNB Card Services has purchased the credit card portfolios of Great Plains FCU of Joplin, MO; SourceOne FCU in Brooklyn Center, MN; Hereford Texas FCU; and Thiokol Ordnance FCU of Marshall, TX. Great Plains Federal FCU has 34,000 members and $220 million in assets. SourceOne FCU has 4,800 members and $44.5 million in assets. Hereford Texas FCU has 10,000 members and assets of $40 million and Thiokol Ordnance FCU has about 800 members and assets of $7 million. TNB has bought more than 65 portfolios since it began agent card issuing in late 2002 and provides full-service credit and debit card processing, serving more than 450 financial institutions and managing more than 1.6 million cards.

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Diebold’s Actual Q2 Revenues are Lower

Diebold announced that due to a revenue recognition issue involving voting machines shipped to Ohio, its second quarter revenue was approximately $10.3 million lower, and net income was approximately $1.3 million lower than previously reported. In preparing for the filing of the second quarter Form 10-Q, it was determined that certain shipments of voting machines did not include memory cards. As a result, the revenue and net income from these voting machines should have been deferred until the memory cards were delivered in July. Diebold, Incorporated is a global leader in providing integrated self-service delivery systems and security with reported revenue of $2.4 billion in 2004.

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RRE Ventures Invests in Chinese M-Payment Firm

SmartPay Jieyin announced that RRE Ventures has taken a minority equity stake in its Chinese mobile payments system. Additionally, current SmartPay shareholders, including Accel Partners, Icon Ventures Asia, Lunar Group and others, have exercised rights to invest additional capital in the Company. New York based RRE Ventures invests in entrepreneurial technology companies placing special emphasis on e-commerce, software, communications and related enterprises with $600 million under management. Smartpay operates a mobile payments service in China.

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Tier Technologies Lands Jack Williams as SVP

Tier Technologies has hired industry veteran T. Jack Williams as SVP of Strategic Programs, responsible for identifying and executing on new ways to leverage Tier’s core transaction processing assets. Williams brings over 20 years of payment processing industry experience to Tier. He is credited with the creation and implementation of the first giftcard program while at Blockbuster Enterprises and was instrumental in the first live smart card transaction, Visa’s POS Chec. Tier is a provider of transaction processing and packaged software and systems integration services for public sector clients.

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HealthCard Systems Renews its GPN Contract

HealthCard Systems has extended its long-term relationship with Global Payments by signing a new, multi-year agreement for front and back-end transaction processing services including terminal-based and Web-based authorization for all major credit and debit cards, as well as settlement accounting, risk management and technical support. HealthCard Systems focuses exclusively on the health care and personal care industries by offering providers proprietary systems that meet the intrinsic needs of these market segments. Global Payments Inc. is a provider of electronic transaction processing services.

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Global Cash Access Tops 130 U.K. Casinos

The Rank Group, one of the U.K.’s leading gaming and entertainment companies, has signed a multi-year agreement to use the products and services of Global Cash Access. Thirty-six Rank Group properties will utilize GCA’s QuikCash cash advance kiosks, customer-activated, touch screen terminals that provide casino patrons with POS debit and credit card cash advance transaction options. Las Vegas-based Global Cash Access, Inc. is a provider of cash access products and related services to approximately 960 gaming properties and other clients in the United States, the United Kingdom, Canada and the Caribbean.

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Wells Fargo and California Merchants Settle

Wells Fargo has agreed to pay between $19 million and $34 million to settle a lawsuit over card processing fees charged to merchants. The settlement covers about 96,000 California businesses that may have been overcharged between 1999 and 2003. The lawsuit alleged that Wells Fargo Merchant Services failed to properly disclose or explain all fees connected to processing card payments. Wells Fargo said last week that it has always made full disclosures to merchants.

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FSV Payment Systems and Meta Launch GiftIT

FSV Payment Systems and Meta Payment Systems have teamed to launch “GiftIT”, a turnkey gift card solution. The GiftIT program allows financial institutions to sell loadable Visa or MasterCard-branded debit cards to their customers for year-round gift-giving. FSV Payment Systems offers host-based FSA,gift, payroll card, and other MarketReady stored-value ePayments solutions as a strategic business partner of Fiserv, Inc. Meta Payment Systems, a division of MetaBank, offers card issuing and program support.

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Meijer Stores Accepts PayPass and Launches a MC

Meijer Stores is set to become the first super center chain in the U.S. to accept MasterCard “PayPass” as a contactless payment option at all of its 171 locations. Meijer also expects to have all of its gas pumps equipped for “PayPass” this fall. In conjunction with GE Consumer Finance, Meijer is planning to launch a PayPass-enabled “Meijer Platinum MasterCard” soon. Cardholders will accrue two points for each dollar spent in-store and one point for each dollar spent elsewhere. Cardholders can also earn additional points through special seasonal offers and fuel purchases. “PayPass” is currently accepted at participating McDonald’s, 7-Eleven stores, CVS, Ritz Camera Centers, Boater’s World Marine Centers, Sheetz and Regal Entertainment Group theatres. Meijer Stores are located in Illinois, Indiana, Kentucky, Michigan and Ohio.

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