Card Linked to Education Savings Unveiled

Citibank Canada and Ontario-based KidsFutures have launched a MasterCard that enables cardholders to earn up to 2% on all purchases, which are automatically credited to an education savings account, which can then be channeled to a “Registered Education Savings Plan.” In addition to earning up to 2% for all purchases, the new “Citi KidsFutures MasterCard” offers, cardholders double and triple rewards through the program’s partners. All “KidsFutures Rewards” deposited into an RESP are eligible for an additional 20% contribution (up to $400 per year) from the federal government through the Canadian Educational Savings Grant. The no annual fee “Citi KidsFutures MasterCard” also offers multiple cards for family members or loved ones on the same account. KidsFutures was launched in October, 2003.

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UK Card Volume Up Nearly 13% Through April

In the twelve month period ending April 30th, the average monthly payment card expenditure in the United Kingdom grew by 12.8% to £20.1 billion per month. Debit cards accounted for 53% of the total, growing 15.9% to £10.7 billion. Credit cards increased 9.4% during the same one-year period. The average value of a debit card transaction was £39.47 and for a credit card the average transaction was £60.19, according to the latest figures released by the Association of Payment Clearing Services. Monthly average plastic card transaction volumes grew by 8% to 436 million, with debit card transactions up by 23.8 million (9.3%) to 278.7 million and credit card use up by 8.7 million (5.8%) to 157.3 million transactions per month.

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Genpass Signs Three Major Clients

Genpass has signed Cash Technologies of America, Ditronics Financial Services, and Money Group, representing more than 4 million additional annual transactions to the nation’s second largest ATM driver Genpass offers product solutions for all EFT services for banks, credit unions and independent sales organizations. The ISO market continues to grow, and Genpass recognizes the need for additional products and services that complement this client base and the unique needs of their businesses. Genpass provides personal attention during all new client implementations, enabling a seamless conversion.

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Verve Offers ATM Network EPS

NC-based Verve Financial Solutions announced it is now offering ATM network “Efficiency and Performance Services” Verve’s ATM Network EPS review process includes: cash delivery and prediction, ATM availability management, network connectivity, ATM maintenance, software support, host management, helpdesk management and communication, disaster recovery, marketing media, and management coordination. Verve Financial Solutions offers cost-effective technical and operational consulting services for financial institutions.

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Chase+Bank One Merger Gets Final Clearance

Chase and Bank One were given the green light yesterday by the Board of Governors of the Federal Reserve System for their proposed merger. The companies have set 12:01 a.m. on July 1, 2004 as the effective time of their merger. Last week, Chase and Bank One announced they have decided that its U.S. consumer and commercial banking businesses will operate under the “Chase” brand. Preparations for migration to the new brand have begun, with changes planned to begin to appear first in credit cards. The companies expect to begin changing bank branches on a state-by-state basis in early 2005. Last month, Chase and Bank One announced the combined company will have 16 board members, consisting of eight Directors from each company, with fourteen independent directors except for William Harrison, who will be Chairman and CEO, and James Dimon, who will be President and COO. The combination will produce the second largest credit card issuer in the USA, with $125.2 billion in outstandings, based on first quarter results. The portfolio will have 87.2 million cardholders, and 71.8 million accounts, according to CardData (www.carddata.com). (CF Library 5/4/04; 5/26/04; 6/9/04)

[Approval of proposal by J.P. Morgan Chase & Co in PDF format][1]

[1]: http://www.cardweb.com/cardflash/2004/june/chase_bankone.pdf

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CITI KIDSFUTURES MASTERCARD

Citibank Canada and Ontario-based KidsFutures have launched a MasterCard that enables cardholders to earn up to 2% on all purchases, which are automatically credited to an education savings account, which
can then be channeled to a “Registered Education Savings Plan.” In addition to earning up to 2% for all purchases, the new “Citi KidsFutures MasterCard” offers, cardholders double and triple rewards through the program’s partners. All “KidsFutures Rewards” deposited into an RESP are eligible for an additional 20% contribution (up to $400 per year) from the federal government through the Canadian Educational Savings Grant. The no annual fee “Citi KidsFutures MasterCard” also offers multiple cards for family members or loved ones on the same
account. KidsFutures was launched in October, 2003.

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Cash Systems Signs the Casino Queen Riverboat

MN-based Cash Systems has inked a deal to provide credit card cash advance and ATM services to the Casino Queen Riverboat in St. Louis. The Casino Queen is a four-story replica of a 19th century side-wheel riverboat located directly across from the majestic Gateway Arch. Minneapolis-based Cash Systems, Inc. has grown from a regional ATM provider to one of four cash access companies serving the gaming industry.

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New Bank One/Sony Card Ad Campaign Launches

The new Bank One “Sony Card” ad campaign and sweepstakes kicked off last week with the help of Carat Sponsorship Solutions. The Experience will showcase what the Sony Card can provide cardmembers – an exclusive all-access pass into a total experience that includes the latest Sony entertainment and technology innovations. The Experience will continue June 17 and include a free lunchtime concert at noon in New York’s Union Square. Sony is a leading manufacturer of audio, video, communications, and information technology products for the consumer and professional markets. Its music, motion picture, television, computer entertainment, and online businesses make Sony one of the most comprehensive entertainment companies in the world. Bank One Corporation is the nation’s sixth-largest bank holding company, with assets of $320 billion.

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MC’s Priceless Earns First-Ever Multinational Gold Effie

MasterCard International’s “Priceless” advertising campaign was honored with the “2004 Gold Effie for Multinational Campaigns” in the first year of the “Multinational Campaign” category. This is the fourth “Gold Effie” for MasterCard’s “Priceless” campaign which first launched in October 1997. MasterCard earned the “Multinational Gold Effie” based on its successful launch of a singular global campaign in over 75 markets. The “EFFIE Awards” program, now in its 36th year, is presented annually by the New York American Marketing Association. McCann Erickson is MasterCard International’s global advertising agency of record.

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InterCept Settles with JANA Partners, Explores Sale

Embroiled in various disputes with investors, Atlanta-based InterCept announced it will explore strategic alternatives to enhance shareholder value, including a possible sale of the company. The Company has retained Jefferies & Company to handle a possible sale. InterCept and JANA Partners also announced they have agreed to settle their proxy contest and pending litigation and to jointly support a panel of director nominees for election at the 2004 annual meeting of InterCept shareholders. Under terms of the settlement, the InterCept Board will be increased from six to nine members, and two nominees proposed by JANA will be elected to fill the newly-created Class II and III director seats and Robert Finzi of Sprout Group will be offered the newly-created Class I board seat. Additionally, InterCept announced that it is postponing its annual meeting scheduled for June 24, until September 14.

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AssetExchange Facilitates CU Sale to MBNA

AssetExchange has brokered the sale of a $52 million credit card portfolio on behalf of the $1.3 billion Texans Credit Union to MBNA. MBNA will market credit cards to Texans CU s field of membership and will issue cards under the Texans Credit Union brand. Texans received an undisclosed premium on the sale of their card assets, and will receive ongoing revenue sharing based on future portfolio performance. AssetExchange is a leading credit card consulting and brokerage firm for financial institutions. Texans Credit Union was founded in 1953 originally to serve the employees of Texas Instruments.

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