Morgan Stanley UK Cards Up 3% Year-Over-Year

Morgan Stanley reported that credit card outstandings for its British MasterCards during the second quarter rose 2.9% year-over-year but declined 6.4% sequentially. The number of accounts for its “Classic,” “Gold,” “Platinum,” and “buy & fly!” cards rose 17% to 1.4 million, compared to one-year ago. For the quarter ending May 31st, Morgan Stanley, which issues the “Discover Card” in the USA, posted $2.479 billion in managed card loans, compared to $2.648 billion in the prior quarter and compared to $2.409 billion for the second quarter of 2004. Last year, Morgan Stanley added the “buy and fly! MasterCard” which earns one point for every GBP10 of purchases with bonus points earned for purchases made at participating U.K. retail merchant partners. Points can be redeemed for travel on 17 airlines. MS introduced its first credit card in the U.K. in 1999. For complete details on Morgan Stanley’s latest performance, visit CardData ([www.carddata.com][1]).

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

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NACM Credit Manager’s Index Rises 50BPS

The National Association of Credit Management “Credit Manager’s Index” for June rose 0.5% to 57.8%. The Index continues to paint a picture of reasonably strong economic growth. The increase was driven by the service sector, whose 1.3% increase overcame the 0.2% fall the manufacturing sector suffered. The CMI, a monthly survey of the business economy from the standpoint of commercial credit and collections, was launched in January 2003 to provide financial analysts with another strong economic indicator. The National Association of Credit Management supports more than 25,000 business credit and financial professionals worldwide with premier industry services, tools and information.

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Box Tops for Education Raises $35MM

Box Tops for Education generated $35.7 million in the 2004-05 school year. This boosts total cash earned by schools through Box Tops for Education efforts to more than $150 million since the nationwide program began in 1996. Additionally, Box Tops welcomes SC Johnson to the program. This fall, the company’s Ziploc(R) storage bags and container packaging will carry the Box Tops coupon. More than 80 General Mills brands support the Box Tops initiative with a total of 86,000 schools currently enrolled in the program. SC Johnson is one of the world’s leading manufacturers of household products with more than $6.5 billion in sales. Box Tops for Education is open to any accredited public, private, or parochial schools for grades K-8 in the United States that have a 501(c)(3) or 509(a)(1) tax-exempt designation.

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U.S. Merchant Systems Selects Neos Gift Cards

Neos Merchant Solutions has been chosen by U.S. Merchant Systems, a “Merchant Account Provider” for VISA and MasterCard, to offer a gift and rewards program to its merchant account network via more than 200 agents. Neos’ rewards program provides a number of benefits to USMS merchant accounts such as improved cash flow, brand identity, brand rewards, faster check out lines and more security. USMS offers bankcard-processing services to thousands of merchants nationwide. Neos Merchant Solutions is a full service payment processing company for retail merchants.

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Gemplus Launches GemInstant PayPass this Wee

Gemplus International has unveiled its solution for contactless payment. “GemInstant PayPass” achieved all of the MasterCard PayPass approval requirements on June 30th, bringing to the banks a contactless solution compliant with the MasterCard “PayPass” specifications and testing requirements. The cards will be produced at Gemplus’ recently enhanced card manufacturing facility in Pennsylvania, starting in July. 7-Eleven agreed to accept “MasterCard PayPass” in its 5,300 U.S. locations by early 2006. In April, MasterCard and MD-based Ritz Camera Centers expanded MasterCard “PayPass” acceptance to each of the more than 1,100 Ritz Camera Centers and 114 Boater’s World Marine Centers. PA-based c-store operator, Sheetz, deployed “PayPass” system-wide in March of this year. In August 2004, McDonald’s inked a deal to accept MasterCard “PayPass.” (CF Library 1/4/05; 2/22/05; 4/26/05; 5/19/05; 6/6/05)

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Big 3 to Control 58% of the US Market in 06

The recent announced merger of Bank of America and MBNA will raise the U.S. market share of the top three general purpose credit card issuers from 49% to 58%. Due to BofA’s strong organic growth and barring any major Chase and Citi acquisitions, the combination of BofA and MBNA will produce the nation’s largest credit card issuer next year. At the end of the first quarter, BofA and MBNA had combined U.S. credit card outstandings of $134.8 billion. MBNA posted $76.9 billion in Q1 domestic outstandings and BofA reported $57.9 billion in 1Q/05 credit card managed receivables. MBNA also has $25.7 billion in Q1 loans to overseas clients as of March 31, 2005. At the end of the first quarter, according to CardData, Chase posted $133.4 billion in U.S. credit card outstandings and Citi reported $115.8 billion. However, the Citi figure includes cards outside the USA but within North America.

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eCashflow Systems Offers PDS Solutions

E Transaction Solutions, dba eCashflow Systems, is now marketing Payments Data Systems’ complete solution set for merchant services and its credit card gateway. eCashflow Systems will be directly marketing the complete solution set for merchant services, credit card gateway, CSR View product and the Account Updater functionality designed for businesses that accept payment in a “card not present” environment. 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. E Transaction Solutions Inc. is a provider of NSF collection services.

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Societe Generale Selects eFunds

Societe Generale has selected eFunds to provide complete
card processing services for the bank’s international retail
subsidiaries. eFunds will offer each subsidiary full
third-party processing services across the transaction lifecycle,
including ATM management, merchant acquiring, back-office services and
card management. Societe Generale serves more than 17 million individual
customers worldwide.

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CGS to Distribute Morgan Beaumont Cards

CGS Financial Technologies has signed a deal to distribute the Morgan Beaumont card products. It will become a part of the SIRE Network and provide the necessary software to all of the POS terminals in the channel. CGS has over 2,000 locations in its current POS network. CGS Financial Technologies provides retailer-consumer financial solutions. Morgan Beaumont, Inc.is a provider of stored value and debit card solutions in the US.

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Diebold Lowers Projections for Q2 and 05

Diebold lowered its second quarter and full-year earnings per share guidance for 2005 citing slowing upgrade/replacement activity in the regional bank segment and strengthening of the dollar. Additionally, the company has identified a reconciliation issue in its North America sales commission accrual account with the impact on specific prior years yet to be determined. As a result of this reconciliation, the company has determined the commission account was under accrued by approximately $13 million at the end of 2004. Diebold, Incorporated provides integrated self- service delivery and security systems and services, with reported revenue of $2.4 billion in 2004.

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Bankruptcy Filings Slow After April Peak

Personal bankruptcy petitions in May rose nearly 5% over year ago levels but fell sharply from the surge experienced in April when filings soared nearly 17% year-over-year. It is expected that bankruptcy filings will run higher as the clock continues to tick towards the October 17th effective date of new laws. Nearly 143,000 filings were made during May, compared to 136,509 for May 2004. This is the third month in a row that filings have moved up sharply after a steady two-year decline. Bankruptcy filings declined about 4% for the full-year of 2004. In January, filings dropped 13% and during February filings dived by 17% year-over-year.

Monthly Filings Historical
May 04: 136,509
Jun 04: 127,742
Jul 04: 133,390
Aug 04: 125,783
Sep 04: 127,664
Oct 04: 133,404
Nov 04: 116,952
Dec 04: 113,957
Jan 05: 99,705
Feb 05: 103,457
Mar 05: 165,459
Apr 05: 170,130
May 05: 142,915
Source: CardData (www.carddata.com)

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