Mosaic Software Endorses e-ClassicSystems’ ATM Product

Mosaic Software has inked a deal to recommend e-ClassicSystems’ “ATM Manager Pro” solution to current and future customers to complement their “Postilion” products. The ATM Manager Pro suite of modules offers a complete back-office solution to manage and report on ATM channel operations and status, including ATM asset compliance, location and transaction reporting and trending, cost and revenue analysis per ATM, cash forecasting and management, project management and much more. ATM Manager Pro currently manages the daily operations of over 100,000 ATMs worldwide including 20% of the US market. Mosaic Software is a global EFT software company with offices in the United States, the United Kingdom, South Africa, and Australia.

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Marketing to U.S. Hispanics & Latin America Conference Set for January

The Strategic Research Institute says executives from MasterCard and Wells Fargo will be speak at its 10th Annual conference on “Marketing to U.S. Hispanics & Latin America” to be held January 26-27 in Miami Beach. This forum will feature over 35 distinguished experts from companies who are investing in reaching out to Latino consumers in the United States and Latin America. One of the industry’s most well-attended conferences, the agenda will outline some very cutting-edge strategies and case studies with advanced tools and techniques to increase ROI from this rapidly growing market segment.

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Scotiabank’s Personal and Card Loans Up 13%, as ABM Network Grows by 20%

Scotia Bank reported that its personal loans and credit card portfolio grew 12.5% between November 1, 2003 and October 31, 2003. For the third calendar quarter, the issuer had $26.3 billion in personal and card loans compared to $23.4 billion one year ago. Scotiabank also reported its ABM network increased by 20% during the quarter to more than 2,700 machines. The increase is due to deal with Shell Canada. Scotiabank-branded ABMs will be installed in up to 500 Shell retail gasoline convenience stores across Canada. Scotia OnLine’s activated customer base grew to 1.1 million customers, up 29% year over year, and transaction volumes have grown at an even faster rate. Overall, Scotiabank produced net income of $660 million for the quarter, up 13.2% from last year.

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VISA and American Express Gain Market Share in Q3

VISA’s dominance in the off-line debit card segment continues to drive its overall growth, raising its U.S. market share, based on volume, by 14 basis points during the third quarter, compared to 3Q/02. However, American Express, the only other network to post a gain in market share, increased 5 basis points over the past twelve months, and is now growing faster than VISA in gross dollar volume. Overall, the general purpose credit card market, excluding Diners Club and JCB, racked up $540.4 billion in gross dollar volume during the third quarter. According to CardData ([www.carddata.com][1]), the third quarter figures represent a 10% gain over 3Q/02. VISA’s debit card GDV rose 22.7% in the third quarter to $118.0 billion. VISA’s credit card GDV increased 7.0% in the third quarter to $167.8 billion. MasterCard’s debit card GDV gained 2.4% in the third quarter to $30.4 billion. MasterCard’s credit card GDV was up 5.6% in the third quarter to $133.1 billion.

U.S. MARKET SHARE
(based on 3Q/03 gross dollar volume data)

NETWORK Q VOL ANN CHNG SHARE
VISA* $285.8 +13.0% 52.9%
MasterCard $163.5 + 5.0% 30.3%
AmEx $ 66.3 +13.9% 12.3%
Discover $ 24.8 + 2.1% 4.6%
*VISA has not released final data for 3Q/03 so preliminary figures may be amended;
all $ figures in billions; annual change is 3Q/03 versus 3Q/02;
share figures may not total to 100% due to rounding
SOURCE: CardData (www.carddata.com)

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

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Disneyland Paris VIPs Becomes Card Theft Victims

A former employee of Disneyland Paris was arrested last week for credit card fraud. The employee reportedly had access to the personal credit card information of VIPs visiting the popular park. French police alleged that Jean-Pierre Sallet used a hundred American Express card numbers as well as dozens of VISA and Diners Club numbers in the scam. He allegedly used the stolen credit card information to purchase more than $100,000 in goods and services, according to CardFlash International ([www.cardflashinternational.com][1]). American Express, which lost $50,000, first discovered the problem two years ago after several French celebrity cardholders began noticing unauthorized charges on their accounts. Police say that Sallet avoided detection for more than two years by making small transactions in a very erratic pattern.

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

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ICBA Says Wal-Mart’s Decision Bad for Small Merchants and Issuers

ICBA Bancard said Friday that Wal-Mart’s decision to decline MasterCard signature-based debit transactions will encourage consumers to use cash and checks, resulting in lost revenue opportunities and increased costs for small merchants and issuers. As an association, MasterCard exists solely for the purpose of supporting thousands of competing card issuing financial institutions, which results in a world rich with card choices for consumers and businesses alike. Wal-Mart’s latest step threatens our diversified financial system and the incredibly pro- consumer payments system that has built consumer credit in America. ICBA Bancard has provided more than 2,000 community banks with equitable access to payment system products and services. In addition to ATM, credit and debit cards, banks have access to merchant services, ATM driving, risk management services, Internet banking and marketing services.

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Direct Mail Solicitations Pick Up as Telemarketing Wanes

A Chicago-based market research firm reports that credit card mail volume increased in September by 6% compared to August’s mail volume. Mintel’s Comperemedia says the recent increase in estimated credit card mail volume comes after historical lows in May, June, and July. This year, direct mail card volume has been dropping after response rates plunged below 0.5% during the first and second quarter, according to CardWatch ([www.cardwatch.com][1]) and RAM Research Group’s BankCard Monitor ([www.ramresearch.com][2]). However, the recent implementation of the “Do Not Call” registry has been driving a recovery in the direct mail industry. Unlike other major issuers, Capital One, the issuer sending the largest volume of direct mail credit card solicitations, has not wavered in 2003. Earlier this year, Capital One reached an agreement with the U.S. Postal Service to receive volume discounts between 3 cents and 6 cents per piece. Capital One is the largest producer of First-Class mail in the USA and the USPS’ fourth-biggest customer. Capital One mails out more than 1.2 billion pieces of mail annually, and, prior to the new discounts, was paying 29 cents for First-Class mail. Industry wide, credit card issuers mailed out 4.5 billion solicitations last year in the USA. The projected credit card solicitation mail volume for 2003 is about 3.8 billion pieces, according to CardWatch and BankCard Monitor. (CF Library 6/3/03)

[1]: http://www.cardwatch.com
[2]: http://www.ramresearch.com

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Card Bond Delinquency and Charge-Offs Plateau

Charge-offs, among credit card-backed securities, remained level in October compared to September and last October. Delinquency also stayed the course during October compared to the previous month, and were 30 basis points lower than one year ago. According to Standard & Poor’s “Credit Card Quality Index,” which tracked $412.7 billion in securitized credit card loans for October, says the data are generally positive. S&P says that during October, 56% of the trusts captured by the index experienced a decrease in charge-offs. With few exceptions, the top 10 trusts, for the most part, continue to manage charge-offs better than the overall index, as 70% of them report a three-month average charge-off rate of less than 6.5%. Although 50% of the trusts included in the index reported varying degrees of deterioration in October, on average, 30-plus delinquencies remained relatively unchanged from the prior month at 5.2%. The overall trend continues to be relatively stable in the 5% to 5.5% range and 30-plus delinquencies continue to be at their lowest levels since July 2002. S&P says that after peaking at 21.1% in March 2001, yield has declined to its current range of 17%. The payment rate for October gained 60 bps from the prior month, ending a two-month decline. Aside from July 2003, the October payment rate of 16.9% is the highest payment rate reported by the index since January 2002.

CARD ABS PERFORMANCE
Oct02 Aug03 Sept03 Oct03
Yield (%) 18.7% 17.9% 17.6% 17.6%
Payment rate (%) 16.3% 16.4% 16.3% 16.9%
Charge offs (%) 6.9% 7.2% 6.9% 6.9%
Delinquencies (% 5.5% 5.2% 5.2% 5.2%
Source: Standard & Poor’s Credit Card Quality Index

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Terra Payments Shareholders Okay ebs Merger Adjustment

Montreal-based Terra Payments, formerly SureFire Commerce, announced Friday that its shareholders overwhelmingly approved its “Merger Adjustment Agreement” with Germany’s ebs Holding AG and ebs Electronic Billing Systems AG. The issuance of equity securities in one or more private placements during a twelve month period, commencing from the date of the meeting, with the resulting number of securities not to exceed 45 per cent of the total number of outstanding shares of the Company as at October 31, 2003. Terra Payments Inc. is an international leader in the payment processing industry. The Corporation provides technology and services that businesses require to accept credit card, electronic cheque and direct debit payments.

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70% of US Wendy’s Will Have Card Acceptance by Year’s End

Wendy’s reported Thursday that all of its 1,225 Company-owned restaurants and more than 1,800 franchised QSRs now accept credit cards. The world’s third largest quick-service hamburger restaurant chain says that by year-end, more than 70% of the its U.S. system will be on board to accept payment cards. Wendy’s began a phased national roll-out of credit card acceptance in July. The company is using satellite technology for its payment system. Wendy’s has a total of 6,355 restaurants in the USA, Canada and international markets. Americans are expected to charge more than $10 billion worth of fast food this year, compared to $6 billion in 2002, $3.7 billion in 2001, and $1.7 billion in 2000, according to CardData. (CF Library 4/2/03)

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Average Personal Card Debt Down to $2,294

A new survey by a MD-based credit counseling service has found that the average American is now carrying $2,294 in credit card debt, compared to $3,250 in 2002. Myvesta.org also says Americans now carrying an average of 2.3 credit cards, down from 2.5 in 2002. The organization did not explain it methodology but says people aged 18-24 have an average of $1,208 of credit card debt while those in the 25-34 age bracket average $2,245; people 35-44 average $3,846; people 45-54 average $2,655; people 55-64 average $1,612 and those aged 65 and older have an average of $1,214 of credit card debt. Myvesta says people in the Northeast carry the largest credit card balances with an average of $3,527 each. Those in the Midwest have the smallest average balances with $1,712. Individuals in the South have an average of $1,929 on their cards and those in the West carry an average balance of $2,524.

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DUALi Introduces DualEye-ABML Chip for Smart Cards

Seoul-based chip manufacturer, DUALi Inc., has launched “DualEye-ABML,” which supports the “ISO14443 type A/B” in one module and can easily be used in various applications, such as banking systems, e-payment systems, m-payment systems and auto fare collection systems. A few companies offer products to support the “ISO14443 Type B,” however DUALi’s “DualEye-ABML” supports Type A /B simultaneously in one module and fully supports the card communication speed 424Kbyte (Samsung chip card), as opposed to the standard 212Kbytes.

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