CROSS-BORDER PROCESSING

National Processing has expanded its processing capabilities to
support
cross-border activity with Canada. NPC offers a turn-key solution,
encompassing authorization, settlement, chargeback and reporting of
Canadian VISA and MasterCard
transactions. NPC also announced that Darden Restaurants, recently renewed
its U.S. card
processing agreement with NPC, and will now convert Darden’s Canadian
credit card processing to NPC’s platform. Darden Restaurants owns and
operates over 1,200 Red Lobster, Olive Garden, Bahama Breeze and Smokey
Bones BBQ Sports Bar restaurants. NPC is 85% owned by National City and
supports over 645,000 merchant locations.

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CardData 1Q/03

Wells Fargo Card Services reported a 10% increase in credit card outstandings and 14% growth in card volume for 1Q/03. Associated Card Services, Pentagon Federal Credit Union, and Commerce Bancshares also reported a 14% increase in first quarter charge volume. Including SD-based Wells Fargo Financial Bank, Wells Fargo reported a 20% gain in credit card volume for the first quarter.

ISSUER OUTSTANDINGS VOLUME
Wells Fargo Card Services $5.6b (+10%) $3.2b (+14%)
Associated Card Services $808m (+26%) $165m (+14%)
Pentagon Federal CU $506m (+5%) $190m (+15%)
Commerce Bancshares $503m (+5%) $350m (+14%)
First Tennessee $257m (+1%) $226m (+8%)

Source: CardData (www.carddata.com)

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INTERNATIONAL ATMS

More than 1,300 ATMs in Beijing have been configured to accept
international bank cards in the first quarter of this year. Industrial &
Commercial Bank of China, Agricultural Bank of China and China Construction
Bank led the upgrading effort. The addition of newly-configured ATMs brings
China’s total number of bank machines capable of accepting international
bank cards to more than 8,000. Less than 50,000 of the 300,000 POS
terminals in China accept overseas-issued bank cards.

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Wincor Nixdorf & Retalix

Wincor Nixdorf Inc., the global leader in open system solutions for the retail and banking industries, announced that the company has joined forces with Retalix Ltd, a leading provider of point-of-sale and fuel applications to the retail industry. The relationship between the two companies demonstrates their commitment to empowering retailers with innovative, customer-driven technology solutions.

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Beijing ATMs

Gearing up for 2008 Olympics, the Industrial & Commercial Bank of China, Agricultural Bank of China and China Construction Bank have upgraded more than 1,300 ATMs in Beijing to accept international bank cards since the start of this year. According to this week’s issue of The RAM Report ([www.ramreport.com][1]), the newly-configured ATMs brings China’s total number of bank machines capable of accepting international bank cards to more than 8,000. Less than 50,000 of the 300,000 POS terminals in China accept overseas-issued bank cards.

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

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NPC 4Q/02

KY-based National Processing reported that revenue for the first quarter declined 4% to $106.0 million and that net income dropped 29% to $8.5 million. NPC says the quarter was affected by re-pricings in the national merchant sector, weak consumer spending, higher expense levels due to some recent investments in its business, and the company’s decision to exit merchant processing for the airlines. However, Merchant Card Services transactions processed were 952 million for the first quarter of 2003, representing an increase of 8% over the first quarter of 2002. Merchant Card Services dollar volume processed was $39.5 billion for 1Q/03, representing an increase of 1% over the 1Q/02. NPC also revised its full year revenue estimate to $420-$440 million. The company says weakness in consumer spending and current economic uncertainties are to blame. For complete details on NPC’s first quarter results visit CardData ([www.carddata.com][1]).

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

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Protection Deception

The FTC announced yesterday that defendants in its “Operation Protection Deception” have agreed to pay more than $131,000 for consumer redress. In addition, the defendants, who allegedly either tricked consumers into buying worthless credit card protection or debt-consolidation services or charged them without their authorization, will be subject to strict injunctive provisions in the future, including the requirement that they post a $50,000 performance bond before engaging in any telemarketing activities. The defendants included Forum Marketing Services and QualyCon.

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PVN – March

Providian reported Wednesday that its charge-off rate among its securitizations increased to 19.89% for March, compared to 18.23% for February, and compared to 19.38% for January. However, the loss rate on reported card loans declined from 16.00% in February to 15.91% in March. Delinquency (30+ days) for its securitizations logged in at 12.46% for March compared to 12.89% for February, and 13.26% for January. Reported delinquency declined from 9.59% in February to 8.76% in March. Providian is scheduled to release its first quarter financial results on April 24th after the close of the market. Providian ended the 2002 with $20.0 billion in total managed credit card loans and 12.0 million accounts, according to updated information furnished to CardData ([www.carddata.com][1]).

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

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MyPoints Rewards

Citibank and MyPoints.com have teamed to launch a co-branded, rewards MasterCard. The new “Citi MyPoints Rewards Platinum Select MasterCard” will be marketed to ten million members of MyPoints “True Opt-in” database. Besides earning points for every purchase made on the card, cardholders can also accumulate additional points when shopping online at MyPoints.com, visiting affiliated Web sites, reading emails and filling out surveys. Under the program cardholders earn one point for every $2 spent, both online and offline. The maximum number of points cardholders can earn is 15,000 per credit card account, per calendar year.

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