Bankruptcy 3Q/02

Bankruptcy filings continue to set records as bankruptcy reform is still batted around in Congress. Bankruptcy filings for the twelve month period ending September 30th totaled 1,547,669, up 7.7% from the 1,437,354 bankruptcy filings for the same period one year ago. For the third quarter, the total number of bankruptcy filings hit 401,306, the highest quarterly level ever. According to the Administrative Office of the U.S. Courts, non-business or personal bankruptcy filings, which make up the majority of bankruptcy filings, also broke records with a total of 1,508,578, up 7.8% fro 2001. The number of Chapter 7 filings rose 6.9% from the previous fiscal year to 1,084,336. Chapter 13 filings rose 9.5% to 451,258. According to industry data gathered by CardData, bankruptcy losses account for 46.9% of the credit card write-offs incurred by larger issuers, and 41.3% of the charge-offs sustained by smaller issuers. For complete details on the latest bankruptcy data visit CardData ([www.carddata.com][1]).

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

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NCIPHER EXPANSION

UK-based nCipher has opened an office in Singapore and has named Eric Graf
von der Recke as Sales Director for the region. nCipher already has
alliances with Hong Kong-based, Automated Systems (HK) Ltd.and Quantiq
International in Singapore and Malaysia. In conjunction with the
announcement, nCipher has also named Automated Systems (HK) as reseller for
nCipher in the People’s Republic of China. nCipher offers hardware security
modules for the e-payments industry including: “nFast,” “nForce,”
“nShield,” and “payShield.” Eric Graf von der Recke was formerly with Certicom.

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BMO 3Q/02

Bank of Montreal says it plans to expand disclosure of results of
its U.S. operations next year. BMO noted that Harris Bank, registered as
Harris Bankcorp, Inc., will voluntarily forego its status as a registrant
of the U.S. SEC. Harris Bank has no publicly-held securities outstanding
that require
SEC registration. Meanwhile for the quarter ending 10/31/02 BMO reported
net income of $1,417 million, down modestly from a year ago. Return on
equity of 13.4% was down from 13.8% in 2001.

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UPS VISA

Bank One and UPS have teamed to launch the “UPS Capital VISA Business” card. For every dollar charged on the card, including shipping at ups.com and authorized retail shipping locations such as Mail Boxes, Etc., card members earn one credit toward UPS coupons. For every $2,500 in expenditures, a $25 coupon good toward UPS shipping services is awarded (monthly cap of two coupons). The card also offers – additional cards for employees upon request, with spending limits assigned by the business owner (or the authorized officer). The new card will be marketed through a direct mailing to small business shippers in the USA. However, customers can apply via toll-free phone or the UPS Web site. UPS Capital is a wholly owned subsidiary of UPS.

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Videotext Settlement

The FTC says it has reached an agreement with Integretel and eBillit, settling charges brought by the FTC for their role in an alleged illegal scheme misusing the international telephone billing system to charge consumers for videotext services that consumers never purchased or authorized. Through the scheme, thousands of consumers were billed an average of $127 apiece for services that they did not even know had been accessed through their phone lines. The charges for the videotext services were represented as international telephone calls to Madagascar, an island nation off the east coast of Africa. Under the terms of the settlement, the companies will waive any claim to $1.6 million in payments collected from consumers for these videotext services.

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SDSU Card

San Diego State University has slected U.S. Bank to expand its “SDSU Card.” The “SDSU Card,” in addition to serving as official campus identification, provides access to campus photocopy machines, student laundry facilities, health services, the pharmacy and computer labs, and is an alternative to cash at drink and snack machines. Under terms of the deal with U.S. Bank, the bank has agreed to sponsor the inaugural “SDSU” Month and deploy three U.S. Bank ATMs on campus in the spring of 2003. The new ATMs will also dispense phone minutes, stamps and other banking services in addition to traditional cash deposit and withdrawal functions. SDSU will also participate in U.S. Bank Workplace Banking, which extends special banking services and products to the approximately 7,000 SDSU employees.

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Card Marketing

Credit card advertising climbed slightly during the third quarter to $238.2 million compared to $238.1 million for the second quarter. Meanwhile, advertising spending for all media rose 2.2% for the first three quarters of this year, compared to the same time period for 2001. According to CMR/TNS Media Intelligence, ad spending for the first three quarters totaled $84.4 billion, compared to $82.6 billion for the same timeframe in 2001. General bank advertising was $303 million for the third quarter compared to $301 million in the previous quarter. Since the first of this year, credit card issuers have pumped a total of $680.1 million into advertising. For the latest marketing materials including direct mail and print ads visit CardWatch ([www.cardwatch.com][1]).

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

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Chicago Card

The Chicago Transit Authority has launched the smart card-based fare collection technology developed by Cubic. The “Chicago Card” system was initially based on magnetic stripe ticketing and Cubic expanded it two years ago to include smart card technology. The smart cards used in Chicago incorporate Cubic’s “GO CARD” chip technology In 2001. Cubic received a $1.5 million contract from CTA to increase the purchase of smart cards from the original 3,500 to 300,000 over the next three years. The CTA operates the nation’s second largest public transportation system and covers the City of Chicago and 38 surrounding suburbs. On an average weekday, people take 1.5 million rides on the CTA.

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ECU WEALTHVIEW

Vancouver-based Fincentric announced that Envision Credit Union
is running live with the company’s “i-Wealthview Banking” system.
Envision is using “i-Wealthview Banking” to consolidate and transition
away from multiple legacy banking systems onto one single fully
integrated platform. The new banking system will help break down
information silos to provide Envision’s 750 employees with a consolidated
view of a customer s existing accounts and products.

Envision Credit Union, with over $2 billion in assets and 100,000 members,
operates 18 credit union branches and 16 insurance offices throughout
British Columbia s Lower Mainland and Fraser Valley, as well as north in
Kitimat.

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GPN Board

Global Payments said this morning it has elected Gerald Wilkins to its Board of Directors. Wilkins is EVP/CFO of AFC Enterprises which owns, operates, and franchises nearly 4,000 restaurants, bakeries, and cafes in over 30 countries worldwide. AFC’s brands include Popeyes Chicken & Biscuits, Church’s Chicken, Cinnabon, Seattle’s Best Coffee, and Torrefazione Italian Coffee.

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SCM & MICROSOFT

Ismaning-based SCM Microsystems says Microsoft will use its smart card
readers to develop a class driver for the USB “Chip Card Interface Device”
specification. Microsoft will use SCM’s “USB SCR331 CCID” reader as a
reference model to develop drivers for Windows XP and Microsoft .NET
operating systems. This will simplify installation and lead to a generic
‘Plug and Play’ solution for smart card customers. SCM’s Security business
provides smart card reader technology for the PC platform and conditional
access modules for the digital TV platform to OEM customers in the
government, financial, enterprise and broadcasting markets worldwide.

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