AmEx and British Airways Renew & Expand Cards

British Airways and American Express have renewed and expanded their
co-branded credit card relationship. Later this year, the two companies
will issue a new “British Airways American Express Corporate Credit
Card.” The new corporate co-brand card will reward
small-to-mid-size companies, who are members of British Airways’
“OnBusiness” program, with free business travel, while employees will
also earn BA miles on all of their card expenditure. British Airways has
about 13,000 “OnBusiness” customers. AmEx and BA currently have three
co-branded credit cards available to British Airways “Executive Club”
members including the “British Airways American Express Credit Card,”
“Premium” card and “Premium Plus.”

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Improved Q2 Metris Metrics Drive Profits

Metris Companies (Direct Merchants Credit Card Bank) reported net income of $32.5 million for the second quarter, compared to a net loss of $70.3 million one-year ago. Metris added 165,000 new accounts during the quarter as its delinquency and charge-off ratios fell sharply. Gross active accounts remained stable at 2.2 million and managed credit card loans of $5.9 billion were down by $300 million since the first quarter. The managed two-cycle plus delinquency rate was 7.7% as of June 30th, compared to 9.1% for 1Q/05 and 9.4% one-year ago. The managed net charge-off rate was 13.5% for the second quarter, compared to 14.5% in the previous quarter and 17.0% for the second quarter of 2004. Total expenses increased $5.8 million to $129.0 million over 2Q/04, primarily due to an $18.2 million increase in marketing expenses. During the second quarter, Metris announced plans to eliminate all its corporate debt by August. For complete details on Metris’ second quarter results, visit CardData ([www.carddata.com][1])

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

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GlobalPlatform Offers Interactive Education

GlobalPlatform has teamed with CMOOR Group to create an instructor-led program to provide those operating in the smart card market with an educational understanding of GlobalPlatform. The technical workshop addresses the value of each component within the smart card infrastructure – the card, device and system and what each component brings to the marketplace. The curriculum highlights why standardization within the industry is important, the role that each of the specifications play in the smart card environment and the value of bringing all three components together. GlobalPlatform is focused on establishing and maintaining interoperable specifications for single and multi-application smart cards and acceptance devices.

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Ruby Tuesday Joins Vesdia’s Rebate Network

Atlanta-based Vesdia has signed an agreement with Ruby Tuesday to become a preferred merchant within Vesdia’s rebate network offering a 3% dining rebate in its 800 restaurants. Participants receive rebates on everyday purchases that are then automatically tracked and deposited into an investment account, points account, or directed to the charitable organization of their choice. Vesdia Corporation is a provider of loyalty marketing technology. Ruby Tuesday, Inc. has restaurants in 42 states, the District of Columbia, Puerto Rico, and 13 foreign countries.

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CIBC VISA Renews Advantex Program Thru 2009

CIBC has signed a renewal deal with Advantex Marketing International to continue offering Advantex’s merchant-based loyalty marketing programs for premium “CIBC VISA” cards. The new contract expires December 31, 2009. Premium “CIBC VISA” cards include the
“CIBC Aerogold VISA card,” “CIBC Aero Corporate VISA card,” “CIBC Aero
Classic VISA” card, “CIBC Aventura Gold VISA card,” “CIBC Dividend Platinum Card,” “CIBC Gold VISA card,” and “CIBC Vacationgold VISA card.”

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Rewards Network Adds Three New Airline Tiers

Chicago-based Rewards Network has added three new tiers for its airline programs offering up to 10 miles per dollar, depending on loyalty and dining frequency. The three member program tiers include “elite,” “engaged” and “active,” each with corresponding mileage awards, bonus opportunities and a roster of restaurants, depending on how frequently the member uses the program. Membership in each of the airline dining programs is free. Rewards Network provides loyalty and rewards programs for restaurants and hotels via its registered credit card platform. As of March 31, 2005, Rewards Network had 3.7 million active member accounts and 10,307 restaurants in its rewards programs.

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Cap One U.S. Q2 Card Profits Up 12.6%

Capital One’s second quarter U.S. credit card profits increased 12.6% year-over-year but declined nearly 6% sequentially. U.S. managed card outstandings declined about $200 million from the first quarter and were up a mere 2.7% from the year-ago quarter. Overall, Cap One’s earnings were up 30% to $531.1 million, driven by strong performance in its auto finance business. The company says it expects its U.S. card loan growth rate to be in the low single digits and its auto finance and global financial services businesses to grow at a faster rate than U.S. cards. U.S. managed card outstandings were $46.4 billion for 2Q/05 compared to $45.2 billion one-year ago and $46.6 billion in the previous quarter. The managed delinquency rate (30+ days) for U.S. credit cards was 3.60% for the second quarter, compared to 3.66% for 1Q/05, and 3.95% for the second quarter of 2004. The net charge-off rate for U.S. credit cards was 4.90% for the second quarter, compared to 4.73% for the first quarter, and 5.19% one-year ago. Total managed loans for 2Q/05 grew 13.1% year-on-year to $83.0 billion. Capital One and subsidiaries collectively had 48.9 million accounts as of June 30th. The Company is currently in the process of a merger with Hibernia Corporation. For complete details on Capital One’s second quarter performance, visit CardData ([www.carddata.com][1]).

COF U.S. CARD NET INCOME
2Q/04: $384.1 million
3Q/04: $414.4 million
4Q/04: $201.9 million
1Q/05: $458.2 million
2Q/05: $432.4 million
Source: CardData (www.carddata.com)

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

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RBSLynk has No Duplicate Transmissions in 04

The “2004 Visa Service Quality Performance Certificate of Recognition for Non-Duplicate Settlement Transactions” has been awarded to RBS Lynk for zero duplicate transmissions from their endpoint processing during the 2004 award period. RBS Lynk identifies duplicates at the transaction level that helps prevent double charges and subsequent merchant credit and chargeback expenses as well as cardholder complaints. RBS Lynk is a single-source provider of electronic payment processing services and is a member of The Royal Bank of Scotland Group.

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First Data Completes EuroProcessing Deal

First Data has completed the acquisition of EuroProcessing
International, announced last month. EPI is a major card processor in
Central and Eastern Europe. FDC purchased the firm from the Nordic
private equity company, Reiten & Co Capital Partners V AS and the
investment company, Creati AS. The management team from EPI will lead
First Data’s operations in the Nordic markets. The acquisition of
EuroProcessing International brings 330 new employees to First Data
International with representation in Slovakia, Lithuania, Latvia, Serbia
and Montenegro, Russia, Hungary and in Norway.

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35MM Americans in the Under Served Market

A study by the Information Policy Institute and Experian has pegged the “credit under served” market in the U.S. at 35 million Americans with nearly 18 million consumers with credit files too thin to score and another 17 million that have no credit files at all. The study found that the majority engage in activities that can be thought of as “credit-like” such as payment of rent, utilities and auto insurance. While serious negative information from these transactions is often reported through collection agencies, positive information such as on-time payment is not. The Information Policy Institute focuses on all issues pertaining to the regulation of information. Experian provides information, analytics, decision-making solutions and processing services with more than 50,000 clients and annual sales exceeding $2.5 billion.

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Paymentech Launches Global Currency Management

Paymentech has launched “Global Currency Management” which enables Internet, catalog and recurring billing businesses to accept payments in more than 150 presentment currencies and to settle transactions in four popular currencies including the U.S. Dollar, the British Pound Sterling, the Euro and the Japanese Yen. Merchants are not required to establish separate bank accounts and credit lines in each country where payments are accepted and can consolidate funds into one currency with a single banking entity for easier funds transfers and funds management. Paymentech continues to offer same-currency processing (for both presentment and settlement) in 14 different currencies. Paymentech processed 8.5 billion transactions and $200 billion in card volume in 2004.

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Paymentech Offers 150 Presentment Currencies

Paymentech has launched “Global Currency Management” which enables Internet, catalog and recurring billing businesses to accept payments in more than 150 presentment currencies and to settle transactions in four popular currencies including the U.S. Dollar, the British Pound Sterling, the Euro and the Japanese Yen. Merchants are not required to establish separate bank accounts and credit lines in each country where payments are accepted and can consolidate funds into one currency with a single banking entity for easier funds transfers and funds management. Paymentech, L.P, processed 8.5 billion transactions and $200 billion in card volume in 2004.

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