Wimsett Becomes Retriever President/CEO

Houston-based Retriever Payment Systems has named Thomas Wimsett to succeed William Higgins as its President and CEO, however, Higgins will remain as Chairman. Previously, Wimsett served as Founder, President, and Chief Executive Officer of Iron Triangle Payment Systems, which serves as the holding company for Retriever and has served as a director of the MasterCard U.S. Region Board and as a director of the Electronic Transaction Association. Retriever provides credit card processing and other point-of-sale payment related services to more than 95,000 merchants processing approximately $8 billion in annual volume. The company was recapitalized by GTCR Golder Rauner, LLC, the leading private equity investor in the transaction processing industry and has operated as a subsidiary of Iron Triangle Payment Systems

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Providian’s ABS Charge-Offs Dip Below 10%

Providian’s securitized charge-off ratio plunged below 10% and its ABS delinquency rate trailed down for the eighth consecutive month. Charge-offs are down nearly 500 basis points and delinquency is down almost 200 basis points compared to one-year ago. For securitized receivables, Providian’s charge-off rate decreased to 9.52% for June from 10.28% in May. One-year ago ABS charge-offs were 14.44%. Delinquency, on a securitized basis, dropped to 6.48% in June from 6.49% in the prior month and 8.40% for June 2004. Providian will release its managed charge-off and delinquency ratios on Thursday afternoon. Providian recently announced plans to merge with Seattle-based Washington Mutual for $6.45 billion. For complete details on Providian’s latest performance, visit CardData ([www.carddata.com][1]). (CF Library 6/6/05)

PROVIDIAN MONTHLY ABS METRICS
Month Charge-Offs Delinquency
Jun 04 14.44% 8.40%
Jul 04 13.17% 8.42%
Aug 04 12.39% 8.37%
Sep 04 12.45% 8.30%
Oct 04 12.11% 8.48%
Nov 04 12.14% 8.27%
Dec 04 11.73% 8.06%
Jan 05 11.75% 8.01%
Feb 05 11.03% 7.75%
Mar 05 11.18% 7.23%
Apr 05 10.84% 6.95%
May 05 10.28% 6.49%
Jun 05 9.52% 6.48%
Source: CardData(R) (www.carddata.com)

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

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MBNA’s Delinquency Rate Does a Hat Trick

MBNA’s managed delinquency ratio has remained at exactly 4.16% for three consecutive months. During June, the charge-off rate declined 27 basis points to 4.50%. After slipping for two months, MBNA’s managed credit card outstandings increased $1.1 billion in June to $96.1 billion. MBNA yesterday 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 May was 4.77%, compared to 4.34% in April and 4.64% one-year ago. In June 2004, the delinquency ratio stood at 4.10%. 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
Jun 04 $ 99.4b 4.64% 4.10%
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%
Source: CardData (www.carddata.com)

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

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eBay Sellers Forced to Take Credit Cards

eBay will begin forcing its sellers that offer PayPal to take credit cards next month. Beginning August 19th, all sellers who offer PayPal as a payment option for their eBay listings must accept all forms of PayPal payment, regardless of whether they display the PayPal logo with credit card icons. Under the new policy, sellers may not communicate to eBay buyers that they will not accept credit cards via PayPal or eBay will cancel a listing and could terminate the seller’s account. “PayPal Personal” seller accounts may still receive payments funded via account balance or bank account transfers but must also be willing to upgrade to a “PayPal Premier” or “Business Account” if they receive a credit card payment via PayPal from their buyer. PayPal says its new policy will help end confusion about the PayPal service. Some eBay sellers currently refuse credit cards to avoid or limit charge-back exposure.

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Barclays Names a New CFO for Juniper

Barclays announced that Richard Sommers will take over as CFO of Juniper Bank. Sommers has spent 27 years with Barclays and for the past four years served as CFO for Barclaycard. Prior to that, he held CFO positions in its global retail financial services and Barclaycard’s Merchant Division. In late May, Barclays hired Kevin Sullivan, former SVP/National Sales at Chase Card Services, as senior director of business development for Juniper. (CF Library 5/31/05)

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RBS Lynk Certifies the JBM Gateway C200

RBS Lynk has completed certification of the “JBMGateway C200” wireless router enabling RBS Lynk to support wireless CDMA transmission of ATM transaction data for the ATM distributor and retail markets. There are no changes needed to convert from dial-up to wireless IP. The JBM Gateway C200 Series supports CDMA networks from Sprint or Verizon and GSM/GPRS networks from Cingular. JBM Electronics provides ATM/POS connectivity and security solutions. 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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U.S. Bancorp Debit & Corp Volume Up 20%+

U.S. Bancorp reported that its second quarter merchant acquiring volume grew nearly 13% over 2Q/04 to $37.9 billion, produced from about 729,000 merchants. Debit card volume jumped more than 22% and consumer/corporate credit card volume increased 21% during 2Q/05, compared to one-year ago. Debit card volume was $5.991 billion for the second quarter compared to $4.898 billion for 2Q/04. Consumer credit card volume for the quarter was $8.801 billion, up 9.3% over 2Q/04. Corporate credit card volume was $6.870 billion, compared to $5.668 billion for the year-ago quarter. Average credit card loans for 2Q/05 were $6.527 billion, compared to $5.989 billion one-year ago. For the quarter, U.S. Bancorp’s Payment Services net income was up about 11% to $178 million. For complete details on US Bancorp’s 2Q/05 performance, visit CardData ([www.carddata.com][1]).

MERCHANT ACQUIRING VOLUME HISTORICAL
2Q/03: $26,432,000,000
3Q/03: $27,995,000,000
4Q/03: $27,447,000,000
1Q/04: $27,335,000,000
2Q/04: $33,646,000,000
3Q/04: $38,483,000,000
4Q/04: $38,232,000,000
1Q/05: $34,294,000,000
2Q/05: $37,921,000,000
Source: CardData (www.carddata.com)

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

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Hart Takes an Interest in ECOM Financial

Pete Hart, former CEO of MasterCard and Advanta, has become an adviser and investor in Boca Raton, FL-based ECOM Financial Corp, provider of the “eCOM MasterCard”. Hart is a consultant in consumer financial services, specializing in emerging payment and distribution systems. His particular focus is the Internet and e-commerce and their impact on the consumer banking industry. Before joining MasterCard, Hart spent ten years at First Interstate Bancorp and was founding chairman of the board of the CIRRUS System. ECOM Financial Corp.is launching the eCOM MasterCard, a prepaid, disposable, mass marketed, non-personalized and universally accepted payment card.

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TransFirst Names New Marketing Director

Dallas-based TransFirst has promoted Brooke Sacrider to corporate marketing director. Previously, Sacrider served as sales and marketing coordinator for TransFirst. In her new role, she will focus on identifying and implementing key marketing strategies for TransFirst and its operating business units. Prior to joining TransFirst, Sacrider held positions with MoneyMaker and the city of Addison, Texas. She holds a bachelor’s degree from Stephen F. Austin University. TransFirst currently processes approximately $20 billion in annual sales volume for more than 160,000 merchants and more than 760 financial institutions.

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HSBC to Issue Six Claiborne Store Cards

HSBC North America has signed a deal with Liz Claiborne to issue private label credit cards. Each of the retail stores, which include Lucky Brand Jeans, Elisabeth, Mexx, Liz Claiborne, Dana Buchman and Ellen Tracy Outlet, will have its own credit card with its respective brand name. HSBC is also adding a points-based rewards program to each card. Two weeks ago, HSBC Retail Services sealed a deal to acquire Bon-Ton’s private label credit card business. (CF Library 6/21/05)

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Midas Selects Trintech’s ReconNET Software

Illinois-based Midas has selected Trintech’s “ReconNET” for use in their 1,700 company operated shops to automate the verification and reconciliation of cash, credit card transactions and purchase cards, which are used by stores to buy parts from third party suppliers. Midas is one of the world’s largest providers of automotive service with more than 2,600 shops in 19 countries. Trintech provides transaction reconciliation and payment infrastructure solutions to retailers, financial institutions, payment processors and network operators globally.

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