U.S. Bank Launches the UWM VISA

University of Wisconsin-Milwaukee students and alumni can show off their Panther pride and at the same time benefit the university when they use a new UWM credit card from U.S. Bank. The affinity program is designed to support the UWM alumni association’s programs, special events, scholarships and more. U.S. Bancorp, with assets of $195 billion, is the 6th largest financial holding company in the United States.

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TNB Card Acquires 55+ Portfolios To-Date

Dallas-based TNB Card Services has purchased the credit card portfolios of Best of Iowa CU, Advantage Plus FCU in Idaho, and Bluebonnet FCU and Texas FCU, both in Texas. TNB has bought more than 55 portfolios since it began the agent issuer program in late 2002. TNB Card Services, provides full-service credit and debit card processing, as well as an agent issuing solution for credit unions nationwide, serving more than 450 financial institutions and managing more than 1.6 million cards.

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AmEx’s CEO 2004 Bonus Rises 71% to $6MM

American Express’ Compensation and Benefits Committee has approved a cash annual incentive award for its CEO, Kenneth Chenault, of $6.0 million for 2004. In the previous year, Chenault’s bonus was $3.5 million. A restricted stock award of 17,213 shares vesting in equal installments over four years was also approved contingent on continuous employment and performance goals. Chenault’s annual base salary last year was $1 million. Other senior executive bonuses included James Cracchiolo, Group President of Global Financial Services, receiving $1.8 million compared to $1.1 million in 2003. Alfred Kelly, Group President of U.S. Consumer and Small Business Services, receiving $3.1 million compared to $1.1 million in 2003. Gary Crittenden, EVP/CFO, receiving $1.4 million compared to $0.9 million in 2003. Edward Gilligan, Group President of Global Corporate Services and International Payments, also receiving $1.4 million compared to $0.9 million in 2003.

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TransFirst Promotes Phillips

Dallas-based TransFirst announced that Andrew Phillips has been named SVP TransFirst Holdings, Inc. and President for TransFirst’s Independent Sales Services Division. Phillips is a 20-year veteran of the payment processing industry. His technology expertise has led him to develop some of the industry’s top processing technologies, including TransFirst’s proprietary product, Transaction Central, a Web-based centralized payment processing system. TransFirst provides transaction processing services and payment enabling technologies and processes $20 billion in annual sales volume for more than 150,000 merchants and 760 financial institutions.

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Providian’s Performance Keeps Rebounding

Providian’s managed charge-off rate declined 42 basis points, while its 30+ day delinquency ratio dropped 10 basis points, during February, compared to the prior month. This is the third consecutive decline in managed charge-offs while delinquency has dropped for four straight months. Over the past twelve months, Providian’s managed charge-off ratio has plummeted 576 basis points and managed delinquency has dropped 186 basis points. On a managed basis, charge-offs for February came in at 8.12% while delinquencies came in at 5.50%. During February, Providian’s managed credit card portfolio seasonally contracted by $121 million to $18,077,788,000. The Company’s managed 30+ day delinquency rate at the end of the fourth quarter was 6.16%, compared to 6.27% at the end of the third quarter. The managed net credit loss ratio for the fourth quarter was 9.98%, compared to 10.39% in the third quarter. For securitized receivables, Providian’s charge-off rate declined to 11.03% from 11.75% in January and 16.08% one year ago. Delinquency, on a securitized basis, dropped to 7.75% in February, from 8.01% in the prior month and 11.07% for February 2004. Providian also announced today that it plans to release its 2004 10-K on or before March 31st in order to complete the restatement and finalization of its financial statements. For complete details on Providian’s latest performance, visit CardData ([www.carddata.com][1]).

PROVIDIAN MONTHLY ABS METRICS
Month Charge-Offs Delinquency
Feb 04 16.08% 11.07%
Mar 04 17.17% 9.56%
Apr 04 15.84% 9.09%
May 04 14.82% 8.68%
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%
Source: CardData(R) (www.carddata.com

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

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ATM Cash Denominations are Clumsy to NYers

A new study shows that some consumers, especially New Yorkers, regard $20 bills dispensed from ATMs as clumsy. Sutton Place Insights found that 50% of respondents indicated that $10 bills were the preferred denomination of ATM dispensed currency, and that another 16% preferred $5 and $1 bills. New Yorkers cited $20 bills as inconvenient for taxi fares and coffee shops. Despite the annoyance of $20 bills, the research found that only 6% of New Yorkers regarded their current bank experience as “poor.”

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ConocoPhillips Merges Private Label Cards

ConocoPhillips has rolled-out its new tri-branded private label personal and commercial gasoline credit cards. One year ago, the Houston-based firm launched a tri-branded and cross-rebate MasterCard. All the cards feature the company’s three gasoline marketing brands including Phillips 66, Conoco and 76. The new cards are issued by Citibank. ConocoPhillips says the new card reduces the number of its card offerings from nine to three. The Company says it will run radio advertisements to further promote the new private label credit cards. The “ConocoPhillips MasterCard,” launched last year, offers a 3% rebate on purchases made at Conoco, 76 or Phillips 66 stations and a 1% rebate on all other purchases. (CF Library 3/20/04)

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Pipeline Data to Acquire Charge.com

Pipeline Data has signed a letter of intent to acquire Florida-based Charge.com, for $7.5 million in cash, $3.5 million in the form of a promissory note, 5 million shares of Pipeline common stock and an additional 1 million shares of Pipeline common stock based on Charge.com fulfilling certain performance requirements. The acquisition will net Pipeline 25,000 accounts. Pipeline Data Inc. provides integrated transaction processing services for all major credit cards.

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SBI SOCIAL VISA

SBI Card, a joint venture of the State Bank of India and GE Money, has launched a credit card to support non-profit organizations. The new “Social Card” will donate up to 20% of the annual and renewal fees of Rs 750 to the non-profits, in addition to a sourcing fee of Rs 250. The “Social Card” also offers two points for every Rs 125 spent via the card. SBI Card will donate half of the extra points to the non-profits and cardholders have the option to donate the rest of the extra points. The new “Social Card” will be launched in major cities over the next three months. The card will support Cancer Patients Aid Association, National Association for the Blind, SOS Children’s Villages of India and World Wildlife Fund India. SBI Card currently has 1.6 million cardholders and offers a wide range of card products.

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Merchant Success Bundle for ISOs is Introduced

California-based Netopia has introduced its Merchant Success bundle that will allow independent sales organizations to market and sell broadband merchant IP networks to retailers. The bundle is based on Netopia’s broadband Wi-Fi gateway. Netopia’s Wi-Fi CERTIFIED(TM) gateways feature 3-D Reach(TM) technology for enhanced wireless range, security and performance.

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