Volume 2002

Gross dollar volume among the nation’s top VISA and MasterCard issuers grew 9.9% last year, driven largely by Sears National Bank. Discounting Sears, the top ten issuers, including Metris, grew 7.7% in volume during 2002. Card volume for American Express and Discover increased by 4.2% for each during 2002, according to CardData. Sub-prime specialist Providian posted significantly less volume during 2002. Capital One led the top issuers with a 30%+ increase in volume growth, followed by Chase which picked up a major slice of Providian’s portfolio. American Express posted 2002 volume of $234.1 billion compared to $224.6 billion for 2001. Discover handled $97.2 billion in volume last year, compared to $93.3 billion for 2001.

TOP TEN VISA/MASTERCARD ISSUERS
(based on EOY 2002 outstandings)
ANNUAL GROSS DOLLAR VOLUME

2002 2001 Y/Y CHG
1. Citigroup: $228.3b $218.5b + 4.5%
2. MBNA: $160.0b $142.3b +12.4%
3. Bank One: $151.4b $140.4b + 7.8%
4. Chase: $ 83.9b $ 71.9b +16.7%
5. Cap One: $ 68.0b $ 50.6b +34.4%
6. BofA: $ 49.5b $ 48.9b + 1.2%
7. Providian: $ 18.4b $ 30.5b -40.0%
8. Household: $ 36.5b $ 34.9b + 4.6%
9. Fleet: $ 25.3b $ 22.4b +12.9%
10.Sears Natl: $ 20.7b $ 5.8b +256.8%
TOTAL: $842.0b $766.2b + 9.9%
SOURCE: CardData (www.carddata.com)

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BACS & VALICERT

Valicert announced that its software now meets the standards of the
“NewBACS” payment infrastructure that is being introduced by BACS, the UK’s
automated clearing house. BACS is implementing a wide-ranging technology
renewal program that uses Internet protocols and the latest PKI digital
certificate technologies for the highest level of security. The first step
in “NewBACS” is the development of a new IP
channel, “BACSTEL-IP,” which provides BACS customers with a secure and
direct online access to BACS. The “BACSTEL-IP” service went live in October
and BACS is in the process of migrating banks and customers over to the new
service by the end of 2005. Valicert’s “Validation Authority” PKI digital
certificate validation software allows banks and relying parties, such as
BACS, to verify, in real-time, the identity and authorization of all
parties in a financial transaction.

Details

Home Capital 4Q/02

Canada’s Home Capital reported this week that its consumer lending unit had 22,265 VISA cardholder accounts with receivables of $16.2 million at EOY 2002. The gross credit card receivable balance is comprised of $10.0 million in accounts secured by cash deposits or mortgage collateral and $6.6 million in unsecured accounts. The recent introduction of the secured “Equity Plus VISA” product has pulled in 208 accounts and receivables of $4.0 million at year-end. In November, Home Trust announced a further expansion of its partnership with First Data through which Home Trust will offer VISA credit card acceptance services to Canadian merchants beginning in the first quarter of this year. For complete details on Home Capital’s latest performance visit CardData ([www.carddata.com][1]).

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

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Certegy & NPC

Certegy and National Processing Company have inked a deal under which NPC will support Certegy check and check-related products, including check warranty and verification, electronic check authorization, ACH services and consumer-not-present solutions, with NPC’s existing and prospective merchant base. NPC supports over 645,000 merchant locations, representing nearly one out of every five VISA(R) and MasterCard(R) transactions processed nationally.

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iBill CEO

iBill’s President and CEO, Garrett Bender, has resigned following the acquisition of the company by Atlanta-based InterCept. Mr. Bender has agreed to be available to iBill for a period of 60 days to assist with the transition. John M. Perry, CEO of InterCept Merchant Services, is currently performing a strategic review of iBill and will be directing its day-to-day activities in the interim.

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EZ Pawn Uses WinXpress

The second-largest chain of pawn shops in the USA, EZ Pawn, has selected Wincor Nixdorf’s “WinXpress” to provide POS and POP supplies to its 280 stores in 11 states. WinXpress is a Web-based supplies ordering business that allows customers to save time and money by providing a single source for POS and POP supplies. Supplies from WinXpress are manufactured to stringent specifications and are designed for high-volume applications. WinXpress guarantees the highest level of quality and consistency, lowering maintenance and repair costs by using manufacturer-specified supplies for POS peripherals. Customers can order online or via phone, fax or email, and most orders are shipped within 24 hours.

Details

LOBLAW 4Q/02

Loblaw Companies reported that during the fourth quarter it securitized
$60 million of credit card receivables, $244 million year-to-date. The
company offers the “President’s Choice MasterCard” through a partnership
with President’s Choice Financial. President’s Choice Financial services is
a co-venture between Loblaw Companies Limited and Canadian Imperial Bank of
Commerce and was formed in early 1998.
Meanwhile, Loblaw reported that its sales for the fourth quarter increased
7.5% or $392 million to $5.6 billion. Loblaw Companies Limited is Canada’s
largest food distributor.

Details

Score Sales

More than one out of three Americans have purchased some kind of a credit score within the past six months, according to a recent informal homepage poll by CardWeb.com. Of the more than 1,000 unique participants in the January survey, 37% said they have recently purchased a credit score. Three years ago, the credit industry was concerned that consumers would become credit score savvy and begin to game the system. However, the mind-set rapidly changed after E-Loan began handing out credit scores to consumers in early 2000, followed by a new California law requiring lenders to disclose credit scores. The floodgates have since opened. Equifax, the largest of the three major U.S. credit bureaus, reported that its consumer revenues doubled to $12 million during the last three months of 2002, compared to the last three months of 2001. For all of 2002, Equifax’s racked up $39 million in consumer revenues, an 80% increase over 2001. Equifax and Fair Isaac previously reported that more than one million consumers purchased the “Score Power” service in the first year of the service, which was launched in March 2001. All three major credit bureaus now offer access to scores plus optional services such as credit monitoring.

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BabyMint Award

The Robinson College of Business at Georgia State University has selected BabyMint, a rebate credit card program for college savings, as a finalist for its “Marketing Awards for Excellence.” Finalists are chosen each year by members of the Georgia State University Marketing RoundTable from among dozens of new products introduced by Georgia-based companies. Criteria used to judge the nominees include: degree of marketplace innovation, technological innovation, market structure innovation, marketplace success, and societal impact.

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FSR Card

U.S. Bank and the State of Colorado declared their payment program, that enables the state to disperse child support payments on a VISA card, a success, and is now expanding the program statewide. The program began as a pilot in 2001, and is now used by more than 1,200 recipients in Colorado. It is unique in the USA. Under the “Family Support Registry VISA” debit card program, the state collects court ordered payments, as it has in the past, and electronically loads the payment on to the “FSR VISA.” The card is available to the recipient free of charge. However, there is a $1.50 fee for ATM cash withdrawals. U.S. Bank implemented a similar pilot in the State of Washington and is working with other government agencies to initiate stored value payment cards in more states and in various capacities. U.S. Bancorp has 4,604 ATMs.

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ACTIVCARD 4Q/02

Suresnes-based, ID card security specialist, ActivCard, reported that
fourth quarter revenues hit $12.1 million, a 79% jump over 4Q/01, and a
slight increase over the prior quarter. Net loss for fourth quarter was
$9.2 million, compared to a net loss of $9.8 million in the fourth quarter
of 2001. During the quarter, ActivCard expanded its existing business with
Inovant – VISA, who added AIMS to their current deployment of ActivCard IDM
solutions; expanded existing business with Hewlett-Packard, as the company
placed new orders for ActivCard “Corporate Access Card” products and
services. The company also said it won new business with three new U.S.
Department of Defense agencies for ActivCard Gold during 4Q/02, and also
won new business for its ActivCard “Identity Management System” with a U.S.
federal government civilian agency. ActivCard projects first quarter
revenues to range between $12.0 million and $12.5 million.

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VISA & Hilton

VISA U.S.A. and Hilton Hotels have signed a contract to provide enhanced folio data on all “VISA Corporate” and “VISA Purchasing” card payment transactions for corporate travelers. According to a Visa 2002 Procure to Pay Study conducted by Deloitte Consulting and Deloitte & Touche, 69 percent of survey respondents have implemented a T&E card program, reporting one of the greatest benefits aside from the improved data access to be traveler convenience. The study also found that 26 percent of the companies studied have already implemented an enterprise wide expense reporting solution, while 36 percent plan to implement one in the next two years.

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