Metavante & Whitaker

Whitaker Bank Corporation of Kentucky has signed a long-term agreement with Metavante for a suite of EFT and card processing solutions. Metavante will provide Whitaker Bank Corporation with ATM driving and monitoring, gateway transaction processing, PIN-based card transaction processing, and card personalization. Metavante provides EFT and card services to approximately 1,600 financial institutions and transportation agencies in the United States. Metavante anticipates completing the conversion in August 2003.

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Universal Money 1Q/03

KS-based ATM network operator Universal Money Centers reported a first quarter loss of $231,007 on revenues of $1.83 million. The Company increased the number of ATMs in its network to 722 during the first quarter ending April 30, 2002. Universal Money is engaged in the business of operating a network of automated teller machines, as well as providing network management and switching services for banks and third party ATM owners. The ATMs provide holders of debit and credit cards access to cash, account information and other services at convenient locations and times.

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US Dataworks Restatements

Houston-based US Dataworks restated its financial statements for the 2001 and 2002 fiscal years, and, as a result, boosted shareholders equity by nearly $15 million. The financial statements were restated to reflect a change in the accounting method used to record the March 31, 2001 acquisition of US Dataworks, Inc.. The Company previously recorded the acquisition of UDW Delaware in a manner similar to a pooling of interests. Management has reassessed the facts and circumstances of the transaction and has changed the method used to record the acquisition from a manner similar to a pooling of interests to the purchase accounting method, which is in conformity with generally accepted accounting principles.

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PVN May Stats

Providian reported Monday that charge-offs for its Trust, or securitized card loans, jumped above 20% for May. However, delinquency for May declined for the fifth consecutive month. The nation’s ninth largest bank credit card issuer reported that charge-offs increased to 20.40% in May, compared to 19.80% for April. Delinquency declined to 11.92% in May, from 12.27% for April. On a reported basis, Providian’s charge-offs increased to 15.16% for May, compared to 14.50% for April. Reported delinquency also increased from 8.34% in April to 8.68% in May.

SECURITIZED PVN 2003
Month Charge-offs Delinquency
Jan 03 19.38% 13.26%
Feb 03 18.23% 12.89%
Mar 03 19.89% 12.46%
Apr 03 19.80% 12.27%
May 03 20.40% 11.92%

Source: CardData ([www.carddata.com][1])

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

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SCA Signs LA Jeweler

Los Angeles-based Romano’s Jewelers has retained NJ-based Shoppers Charge Accounts to develop and administer its private label credit card program for its nine stores. Romano’s Jewelers operates in major malls throughout the metro Los Angeles area. The new Romano’s credit card from SCA will offer cardholders special privileges, such as 90 days and six months interest-free from the time of purchase.

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In$tant Alerts

Paymentech has launched a mail alert system enabling merchants to view activity reports on out-of-the-ordinary transactions, or exceptions, that occur at any of their locations. “In$tant Alerts” is designed to help merchants reduce losses due to fraud, charge-backs and other payment occurrences by notifying them in as little as ten minutes. The system can flag abnormally high same-day card usage or a high dollar amount of return transactions. Merchants can also identify transactions that take an excessive amount of time to settle or be notified of retrieval requests (on disputed charges) that are about to expire. “In$tant Alerts” is the first Web-based reporting tool on the market that monitors charge-backs, retrievals, velocity and interchange qualification. “In$tant Alerts” is part of Paymentech’s “Re$ource Online” suite.

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FDC/Concord Merger

Small bankers are extremely concerned about the ability of the post-merger First Data to exert its market power in shaping routing rules and pricing to the detriment of community banks and their customers. The Independent Community Bankers of America says the combination of merchant processing with the network ownership of First Data and Concord EFS creates a significant opportunity for the combined organization to tie these services to the disadvantage of all other networks and processors and their users. First Data and Concord, in addition to owning the two largest ATM and point-of-sale networks, are also the two largest merchant processing organizations, representing in excess of 50% of the merchant links to all networks in the USA. Last week, the U.S. Department of Justice has requested additional information pertaining to the merger. The ICBA says it welcomes the “Second Look” by the DOJ. (CF Library 6/13/03)

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KBC PROTON CARDS

Oberthur Card Systems has inked a deal with KBC Bank & Insurance Group NV for the delivery of more than 10 million “Proton Prisma” EMV smart cards. KBC intends to distribute the cards to consumers in Belgium, Poland, the Czech and Slovak Republics and Hungary next year. One year ago, KBC and Proton World signed an agreement licensing the “Proton Prisma” multi-application smart card technology in a number of its associated banks in Central and Eastern Europe. In the initial phase, the agreement will involve CSOB Bank in the Czech Republic (with branches in the Slovak Republic), Kereskedelmi es Hitelbank (K&H) in Hungary, and the Poland-based Kredytbank, which also has branches in Lithuania and a subsidiary in Ukraine.

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Vegas VISA

The City of Las Vegas now has its own bank credit card, complete with a rewards program. MBNA and VEGAS.com have signed a five-year deal to launch “Platinum Plus” or “Preferred” VISA credit card tied to the new “VEGAS.com Reward Program.” Cardholders earn a VEGAS.com point for each dollar spent, anywhere. Points are redeemable for meals, entertainment, flights, spa access and services and other activities at Vegas’ hotels through Vegas.com. Cardholders receive a 1,000 point bonus on their initial card use. (The redemption schedule was not available this morning.) The card carries no annual fee and a 10.99% fixed APR. There is a 6-month promotional interest rate of 2.99% for checks and balance transfers. However, the card will not reward cardholders for casino spending nor will it have ATM and cash access privileges. Vegas.com says Las Vegas hosted more than 35 million visitors last year, and 80% were repeat visitors. The card will also be targeted at locals. Vegas.com has about two million users in its database and is a sister company of the Las Vegas Sun.

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