USWD 4Q/02

U.S. Wireless Data reported fourth quarter revenue of $899,000, a 61% increase over the same quarter one year ago. Gross profit for the three months ended December 31, was $30,000, compared to gross profit of $231,000 in the same period in the prior fiscal year. Net loss for the quarter totaled $3.42 million, as compared to a net loss of $3.33 million, for the corresponding quarter of the prior fiscal year. The growth in revenues were driven by service revenues which grew to $764,000, up from $428,000 in the prior fiscal year, a 79% jump. Service revenue was derived primarily from the growing base of active sites that use the Company’s proprietary Synapse service to process transactions. For complete details on USWD’s latest quarterly performance visit CardData ([www.carddata.com][1]).

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

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CANADIAN TIRE 4Q/02

Toronto-based Canadian Tire Corporation reported that credit card
receivables ended 2002 at $1.95 billion, 35% ahead of last year’s levels,
driven by the migration of store credit cardholders to the “Options
MasterCard.” At the year-end, MasterCard accounted for 85% of total CTFS
receivables. During 2002, CTFS made in-store acquisitions of more than
439,000 new “Options MasterCard” accounts. Fourth quarter earnings before
taxes for CTFS of $27.0 million were 136.7% ahead of last year reflecting
strong receivables growth, lower rates of write-off as a percentage of
average receivables, tight operating expense
management, and an $8.1 million gain on the sale of receivables. Excluding
the gain on sale of receivables, pretax operating earnings were $18.9
million, up 71.8% compared to the fourth quarter of 2001.

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Hack Attack

Millions of credit card account numbers were hacked from the database of third-party payment card processor earlier this month. The hacked accounts include 3.4 million VISA cards and 2.2 million MasterCards. An undetermined number of American Express and Discover cards were involved. However, approximately eight million accounts were reportedly involved. The card associations indicated there is no evidence of widespread fraud and affected cardholders have been notified.

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MasterCard & Universal

MasterCard International and Vivendi UNIVERSAL Entertainment confirmed their multi-year marketing alliance last week. Under the deal MasterCard will become the “Official Payment Brand” and “Preferred Card” of Universal Entertainment’s theme parks and resorts, movies, music and Internet properties. Also, MasterCard recently launched a new 30-second television ad as part of its “Priceless” advertising campaign. The new creative, which was filmed on location at Universal Studios Theme Park in Orlando, features a family experiencing Universal’s “Hulk” Roller Coaster as part of a “Priceless” day at the Park. The spot was produced by McCann-Erickson/New York. In December, MasterCard, Chase and Universal teamed to launch the “Universal Entertainment MasterCard from Chase.”. Cardholders will earn one point per dollar on all everyday purchases and two points per dollar spent at select Universal Parks & Resorts retail locations. Points can be redeemed for movie and concert tickets, DVDs, CDs, advance movie screenings, and cardholders will have the opportunity to redeem reward points for unique Hollywood experiences, including tickets to celebrity events, spending a day on a television or movie set, backstage concert passes, and walking the red carpet at a movie premiere. (CF Library 12/6/02)

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WAP PAYMENTS

Ontario-based Payment Services Interactive Gateway a/k/a PSiGate has
reached an agreement with Diginara to enable credit card processing over a
“Wireless Application Protocol.” Under the terms of the agreement, PSiGate
is now licensed to be the exclusive vendor for Diginara’s WAP-enabled
credit card technology and Diginara will resell PSiGate’s credit card
processing capabilities and merchant services to Diginara clients. The
partnership enables users of mobile devices to activate real-time credit
card transactions throughout North America.

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TSAI 4Q/02

Transaction Systems Architects reported revenue for the fourth calendar quarter of $62.5 million and net income of $3.0 million. For the year-ago quarter TSAI reported $73.2 million in restated revenues and net income of $2.4 million. The Company completed the fourth quarter with $229.3 million in backlog, consisting of $154.7 million in recurring revenue backlog and $74.6 million in non-recurring revenue backlog. During the quarter, ACI Worldwide, the Company’s largest business unit, added seven new customers. Solutions licensed included BASE24, ACI Proactive Risk Manager, ACI Smart Chip Manager and two BASE24-es licenses on UNIX server technology. Also, ACI Worldwide added 12 capacity upgrades and licensed 15 new applications to existing clients. For complete details on TSAI’s latest quarterly performance visit CardData ([www.carddata.com][1]).

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

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NASCAR GM Card

General Motors and Household Bank have inked a sponsorship deal with the “No. 30 America Online Racing NASCAR Winston Cup” team. Under terms of the deal, Jeff Green of Richard Childress Racing, will drive a car primarily branded by “The GM Card” in the “Georgia 500” at Atlanta Motor Speedway in October. The sponsorship is a continuation of the relationship between RCR and General Motors. GM, through the “GM Goodwrench” brand, has been a primary sponsor of RCR’s No. 3 and No. 29 NASCAR Winston Cup teams since 1988 and all five of its teams compete in Chevrolet Monte Carlos. In the October “Georgia 500,” the No. 30 AOL car will be outfitted with highly visible decals from “The GM Card,” as will Green’s helmets and hats, the team car’s transporters, team members’ uniforms, and crew team uniforms and fire suits. At the end of January, there were 6.9 million GM cardholders. Since The GM Card’s inception in 1992, more than 3.9 million GM vehicles have been purchased or leased with GM Card earnings.

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Meijer Stores Credit Card

GE Consumer Finance has inked a deal to issue the first ever Meijer Stores credit card in Detroit followed by a rollout to all 156 retail Meijer supercenters throughout the Midwest. Under the new private label credit card program, Meijer cardholders will enjoy a range of valuable programs and benefits, including a 10-percent off promotion on their first purchase, a dedicated line of credit and no annual fees.

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Top 10 Outstandings

Outstandings among the nation’s top VISA and MasterCard issuers grew 9.0% last year, driven largely by Sears National Bank and Capital One. Discounting Sears, the top ten issuers (including Metris), grew 7.0% in outstandings during 2002. Outstandings for American Express credit cards grew 7.2%, while Discover outstandings increased by 3.7% during 2002, according to CardData. The “Sears Gold MasterCard” program surged by nearly 150% in 2002 as it migrated more store credit cardholders to its bank credit card. Meanwhile, Providian and Chase shifted market share in an acquisition deal during 2002. Capital One, which recently cranked-down its $1 billion marketing machine, posted a 32% gain in outstandings. American Express posted 2002 credit card outstandings of $34.3 billion compared to $32.0 billion for 2001. Discover reported $51.1 billion in outstandings for the year ending 11/30/02, compared to $49.3 billion for the same period 2001.

TOP TEN VISA/MASTERCARD ISSUERS
(based on EOY 2002 outstandings)
ANNUAL OUTSTANDINGS

2002 2001 Y/Y CHG
1. Citigroup*: $116.6b $108.9b + 7.1%
2. MBNA: $ 79.5b $ 74.9b + 6.1%
3. Bank One: $ 74.0b $ 68.2b + 8.5%
4. Chase: $ 51.1b $ 40.9b +24.9%
5. Cap One** $ 50.7b $ 38.4b +32.0%
6. BofA: $ 29.5b $ 27.2b + 8.5%
7. Providian: $ 20.0b $ 32.9b -39.2%
8. Household: $ 17.0b $ 16.1b + 5.6%
9. Fleet: $ 16.1b $ 15.6b + 3.2%
10.Sears Natl: $ 12.3b $ 5.0b +146.0%
TOTAL: $466.8b $428.1b + 9.0%
* Citigroup includes Canada;
** Capital One, which does not disclose domestic data, may include some
international accounts.
SOURCE: CardData (www.carddata.com)

* Citigroup includes Canada;
** Capital One, which does not disclose domestic data, may include some international accounts.

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

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

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GILAT ATM LINK

Petah Tikva-based Gilat Satellite Networks announced that Diebold has contracted to offer always-on broadband connectivity with its ATMs. The deal was signed with Gilat’s U.S. subsidiary, Spacenet, and makes Diebold an authorized channel partner of Spacenet’s “Connexstar” business-grade satellite broadband service. In addition, Diebold’s adoption of Spacenet’s broadband VSAT technology enables it to incorporate a variety of advanced emerging applications into their ATM and other transaction platforms. Using “Connexstar’s” high-speed, multicast-enabled Internet connection, devices will be able to support ticket ordering, video and multimedia content delivery, and Internet access. Gilat Satellite Networks and its subsidiaries Spacenet and Gilat Latin America have deployed 400,000 VSATs globally.

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