Wright Express Business Card Introduced

Maine-based Wright Express has introduced the “Wright Express Business Card” offering the traditional benefits of a fleet card along with reward points. The card also features a roadside assistance program and online pre-employment screening services to verify information on employment applications and is accepted at a network of over 180,000 fuel and service providers. Wright Express is a leading provider of payment processing and information management services for over 285,000 commercial and government fleets containing more than 3.9 million vehicles.

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Capital One Delinquency Inches Up in June

Capital One’s managed delinquency ratio inched up by another 6 basis points last month. For June, Cap One also reported that managed charge-offs decreased to 3.96% compared to 4.10% in the prior month and 4.17% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. Delinquency increased to 3.49% in June compared to 3.43% for May, 3.37% for April and 3.84% in January. Delinquency one-year ago stood at 3.76%. At the end of June, Capital One had $83.0 billion in global outstandings. At the end of the second quarter, U.S. card outstandings of $46.4 billion were up 2.7%, compared to one-year ago. For complete details on Capital One’s monthly metrics and 2Q/05 performance, visit CardData ([www.carddata.com][1]).

Month Charge-offs Delinquency
Jun 04 4.17% 3.76%
Jul 04 4.10% 3.77%
Aug 04 3.87% 3.80%
Sep 04 4.18% 3.90%
Oct 04 4.10% 3.94%
Nov 04 4.35% 3.87%
Dec 04 4.63% 3.92%
Jan 05 4.19% 3.84%
Feb 05 3.96% 3.65%
Mar 05 4.35% 3.45%
Apr 05 4.22% 3.37%
May 05 4.10% 3.43%
Jun 05 3.96% 3.49%
Source: CardData (www.carddata.com)

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

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CardSystems Wants a Second Chance with VISA

[Mr. Joshua L. Peirez, Senior Vice President & Associate General Counsel, Law Department, Mastercard International][1]

[Mr. Steve Ruwe, Executive Vice President, Operations & Risk Management, Visa U.S.A. Inc.][2]

[Mr. Zyg Gorgol, Senior Vice President, Fraud Risk Management, American Express][3]

[Mr. Carlos Minetti, Executive Vice President, Cardmember Services, Discover Card][4]

[Mr. David B. Watson, Chairman, Merrick Bank][5]

[Mr. Mallory Duncan, General Counsel, National Retail Federation][6]

[Mr. John M. Perry, President and Chief Executive Office, CardSystems Solutions, Inc.][7]

[Mr. Evan Hendricks, Editor and Publisher, Privacy Times][8]

[1]: /cardflash/secure/oldstatic/2005/july/3c1.pdf
[2]: /cardflash/secure/oldstatic/2005/july/3c2.pdf
[3]: /cardflash/secure/oldstatic/2005/july/3c3.pdf
[4]: /cardflash/secure/oldstatic/2005/july/3c4.pdf
[5]: /cardflash/secure/oldstatic/2005/july/3c5.pdf
[6]: /cardflash/secure/oldstatic/2005/july/3c6.pdf
[7]: /cardflash/secure/oldstatic/2005/july/3c7.pdf
[8]: /cardflash/secure/oldstatic/2005/july/3c8.pdf

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Tax Windfall Drives Providian Profits Up

Providian posted a four-fold increase in net income to $225.3 million for the second quarter, boosted significantly by the resolution of two tax matters. Managed loans outstanding at quarter end, were $18.6 billion, up 8.1% year-over-year but essentially flat to the level at the end of the first quarter, including the higher-risk loans held for sale in early 1Q/05. The managed net credit loss ratio in the second quarter was 8.31%, compared to 12.53% in 2Q/04 and 8.43% in the first quarter. Providian’s managed 30+ day delinquency rate at the end of the second quarter was 4.84%, compared to 6.44% at the end of the second quarter of 2004 and 5.16% in the prior quarter. The Company reported it added 550,000 gross new accounts in the second quarter, for a net increase of 100,000 accounts for 2Q/05. For complete details on Providian’s second quarter performance as well as prior quarters, visit CardData ([www.carddata.com][1]).

Providian Net Income Track Record
2Q/04: $ 49.9 million
3Q/04: $ 93.1 million
4Q/04: $144.6 million
1Q/05: $133.0 million
2Q/05: $225.3 million
Source: CardData (www.carddata.com)

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

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Fiserv Revenues Climb 10% in 2Q/05

Fiserv reported that processing and services revenues were $913.1 million for 2Q/05, an increase of 10% over the year-ago quarter. The Company’s largest operating segment, the financial institution outsourcing, systems and services segment posted revenue growth of 9% and operating income growth of 15% compared to 2Q/04. Fiserv says its Financial segment revenues, primarily in 2006, will be negatively impacted by approximately $40 million due to changes affecting three client relationships. One client is in the process of being acquired, a second client transitioned from an outsourced solution to license Fiserv software and a third client plans to convert from an outsourced solution to an in-house solution. During the second quarter, Fiserv acquired Interactive Technologies, Administrative Services Group and the U.S. eLending operations of Emergis. Fiserv updated its revenue outlook for the third quarter to be approximately $905 to $925 million. For complete details on Fiserv’s second quarter results, visit CardData ([www.carddata.com][1]).

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

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PDS & XL Payment Systems Ink a Contract

Texas-based Payment Data Systems has signed a multi-year agreement with XL Payment Systems to provide payment services for debit card loading and risk management. The PDS solution provides payment origination for debit card loading that can come directly from an XL Payment Systems CSR or an XL Payment Systems branded website. XL Payment Systems also chose to utilize Payment Data’s IPS CSR View product for tracking and reporting as well as customer relationship management for their in-house call center. XL Payment Systems is a VISA ISO and is a leading provider of prepaid debit cards worldwide. Payment Data Systems, Inc., is an integrated payments solution provider delivering comprehensive, cost-effective solutions to billers and retailers for the processing and management of electronic payments.

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Global Payments Inc. Profits Rise 44%

Atlanta-based Global Payments Inc. reported that second calendar quarter revenues increased 14.2% to $207.7 million. Net income for the quarter ending May 31st soared 43.9% to $25.9 million. GPN says it continues to gain significant operating leverage from increased economies of scale and successful consolidation efforts. The processor says the revenue gains were primarily driven by its consumer money transfer business, re-pricing initiatives and ISO growth. During the quarter, Wynn Las Vegas selected GPN’s Gaming Division’s “VIP LightSpeed” suite of products for check cashing transactions. For the Company’s 2006 fiscal year, annual revenue is expected to fall between $839 million and $870 million or up 7% to 11% over its just-ended 2005 fiscal year. For complete details on Global Payments latest results, visit CardData ([www.carddata.com][1]).

GPN HISTORICAL
PERIOD REVENUES NET INCOME
2Q/04: $181.8mm $18.0mm
3Q/04: $192.6mm $24.2mm
4Q/04: $188.5mm $16.8mm
1Q/05: $195.5mm $21.6mm
2Q/05: $207.7mm $25.9mm
Source: CardData (www.carddata.com)

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

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Credit Card Security Hearing Slated Today

The House Financial Services Subcommittee on Oversight and Investigations is holding a hearing this morning titled “Credit Card Data Processing: How Secure Is It?” Top executives from VISA, MasterCard, American Express and Discover will testify. John Perry, President and CEO of CardSystems Solutions is also expected to testify. Other participants include the NRF, Merrick Bank and Privacy Times. Today’s hearing will be the third held this year by the Committee. Rep. Sue W. Kelly (NY) chairs the Committee.

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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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