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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DRESDNER & FDC

Dresdner Bank AG has signed a five-year processing contract with First Data Corp.
First Data has been providing processing services for Dresdner since 1999. Under the terms of the agreement, First Data will continue to deliver full consumer credit card
processing for Dresdner’s customers in Germany. First Data has been active in Europe for
more than 10 years.

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TSYS 1Q/03

TSYS reported that first quarter profits increased 15.9% to $31.7 million and that revenue increased 10.3% to $251.4 million. Electronic payment processing revenues were $167.8 million, an increase of 17.2%, compared to $143.2 million in the same period last year. TSYS noted yesterday that it has significant termination provisions embedded within its processing agreement with Sears, in the event Sears sells its credit card portfolios. TSYS says Sears represents less than 10% of TSYS revenues. During the first quarter, TSYS converted 5 million CIBC accounts and 750,000 Barclaycard account portfolios.TSYS reaffirmed Tuesday that it expects its 2003 net income to exceed its 2002 net income by 12-15%. For complete details on TSYS’ first quarter performance visit CardData ([www.carddata.com][1]).

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

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BMM & EDS

Banque Martin Maurel has selected EDS to implement a comprehensive CRM system. EDS is providing the system through its Answare S.A. subsidiary. EDS also signed a contract with
PMU, the French state-controlled horse racing betting agency, to operate its betting network throughout metropolitan France. EDS will provide exclusive on-site maintenance of the approximate 13,000 betting terminals owned by PMU in 8,000 points of sale. Additionally, EDS signed a six-year agreement with Wanadoo, France Telecom’s Internet division, for a customer relationship management system.

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PAYMENTECH CANADA

Paymentech Canada has acquired Citibank Canada’s MasterCard merchant portfolio consisting of 15,000 merchants. The acquisition follows Paymentech Canada’s purchase of
Scotiabank’s VISA portfolio in October. Therefore, Paymentech Canada now offers merchants access to a consolidated VISA and MasterCard payment solution. The Citibank deal does not include merchants with “Global Citi” relationships. Last year’s Scotiabank deal encompassed debit/credit card payment services and smart card programs offered to merchants in 95,000 locations across Canada.

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Household 1Q/03

Household, now a part of HSBC, reported this morning that its VISA/MasterCard receivables increased by 7.0% and that charge volume grew by 4.6% in the first quarter. Householdalso increased its active accounts by 134,000 during the quarter. At the end of the first quarter Household had $16,195,385,000 in credit card loans compared with $17.0 billion at year-end 2002, and $15.1 billion one year ago. Charge volume for 1Q/03 was $8,443,767,000 compared with $10.1 billion in 4Q/02 and $8.1 billion for 1Q/02. Household end the first quarter with 11,758,000 active accounts compared with 9,800,000 one year ago. For complete details on Household’s first quarter performance visit CardData ([www.carddata.com][1])

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

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STORELINE POS

Sainsbury’s has deployed Retalix’s “StoreLine POS” in more than 300 of its 485 stores across the UK. In addition, Sainsbury’s has installed “Storeline Fuel” in over 100 of its 230 fuel sites. Retalix, Accenture, and NCR have been working with Sainsbury’s in a front of store replacement program known as repos. Retalix “StoreLine” is the only grocery POS system with integrated fuel site functionality. Retalix Ltd has installations in more than 20,000 stores and quick service restaurants across 44 countries. J Sainsbury plc, one of the UK’s largest retailers, operates a supermarket chain and bank in the UK and a supermarket chain in the USA.

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Chase 1Q/03

J.P. Morgan Chase reported this morning that its credit card outstandings inched up 3% in the first quarter to $50.6 billion, but down from $51.1 billion in the fourth quarter. However, charge-offs and delinquency also inched up, by 5 bps and 1 bp, respectively. On a managed basis, the credit card net charge-off ratio was 5.87% for the first quarter of 2003, compared to 5.75% for the fourth quarter, and 5.82% for the first quarter of 2002. On a managed basis, the credit card delinquency rate (30+ days) was 4.59% for the first quarter, compared to 4.67% for the fourth quarter, and 4.58% for the first quarter of 2002. Charge volume was up 10% to $20.7 billion. Chase’s account base increased by 600,000 accounts in the first quarter to end at 29.8 million. Since 1Q/02, the number of credit card accounts have grown by 8%. Active accounts were flat at 16.5 million. For complete details on Chase’s first quarter performance visit CardData ([www.carddata.com][1]).

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

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Metris 1Q/03

Metris Companies/Direct Merchants Credit Card Bank reported a net loss for the first quarter $25.0 million, representing a significant improvement over its fourth quarter net loss of $48.5 million, and its 2Q/02 loss of $36.4 million. The sub-prime specialist also continued to push down card balances, ending the quarter with managed credit card loans of $10.7 billion, a decline of approximately $745 million since the end of last year. The managed net charge-off rate for the first quarter was 17.9%, compared to 18.2% for the fourth quarter, and 13.0% for 1Q/02. The managed delinquency rate was 11.5% for the first quarter, compared to 11.1% in the fourth quarter, and 9.8% one year ago. Metris ended the first quarter with 3.2 million active accounts. Last month, Metris indicated it intends to shrink the size of its credit card portfolio by $2.1 billion this year. The sub-prime issuer says it hopes to achieve the target through lower credit card account acquisitions, attrition in the portfolio, and third party sales. For complete details on Metris’ first quarter performance visit CardData ([www.carddata.com][1]).

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

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