3Q/02 Volume

At the end of the third quarter, bank credit card volume was growing at an annual rate of 7.3% among issuers with the highest transaction levels. However the growth figure is about half as much if MBNA, Capital One, and Chase are discounted. Chase volume increased more than 20% due to its acquisition of Providian accounts. American Express and Discover both posted weak growth in transaction volume, while Citigroup turned in a 3.1% increase in volume, according to CardData ([www.carddata.com][1]). Based on preliminary figures, U.S. Bancorp, the king of business bank credit cards, turned in a 13% gain over last year.

Top Ten Year-to-Date Card Volume
ISSUER 3Q/02 3Q/02 CHNG
1. American Express $171.2b $168.6b +1.4%
2. Citigroup $166.8b $161.8b +3.1%
3. MBNA $116.1b $103.1b +12.6%
4. Bank One $107.9b $102.1b +5.7%
5. Discover $ 71.9b $ 71.2b +0.1%
6. Chase $62.7b $ 51.7b +21.3%
7. Capital One $50.0b $35.7b +40.0%
8. Bank of America $35.9b $35.7b +0.1%
9. U.S. Bancorp $34.2b $30.1b +13.6%
10. Household $26.5b $25.3b +4.7%
Totals: $843.2b $785.5b +7.3%
Source: CardData (www.carddata.com)

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

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Tourist Gift Card

The West Michigan Tourist Association is offering a gift card that can be redeemed at more than 300 attractions, stores, restaurants, resorts, campgrounds, canoe liveries, golf courses, across the west half of Michigan’s Lower Peninsula. The “WMTA Gift Cards” are available in $25 increments and are redeemable for one full year from the date of purchase. The card can be purchased online. A nonprofit membership organization, WMTA has promoted West Michigan as a travel destination since 1917. The association is best known for its annual publication of free seasonal travel guides for the past 85 years.

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ORIGIN-J

UK-based ID Data Technology, Atmel, and OneEighty Software have teamed to deliver “true Java” technology to smart cards. The companies have successfully reduced the code size of Java to 50 kilobytes. The jointly-developed “ORIGIN-J” supports multiple applications, which enable mobile phone users to talk on the phone, play on-screen games, and make e-payments at the same time. The product uses the Atmel “AT90SC6464C” chip since it uses a Flash and EEPROM memory configuration.

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International Currency Service

Wells Fargo unveiled a new international currency service this week, enabling U.S. companies to process and settle online sales transactions in the British pound and Euro. PayPal is the first Wells Fargo customer to use the new service to authorize and settle credit card transactions in those currencies. In addition to British pounds and Euros, later this month Wells Fargo will offer processing and settlement in the Canadian dollar. The new service avoids the need for foreign exchange conversion. Wells says it currently maintains a 95-99% market share of the personal payments market. Wells’ e-commerce sales grew 44% over the last year as compared with the national average of 19%. Wells Fargo took over PayPal’s U.S. credit card processing following a May 1st agreement. Wells Fargo processes nearly $4 billion in credit card sales annually for 20,000 online merchants. (CF Library 6/13/02; 6/21/02)

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JCB USA PILOT

Early next year JCB and Vital Processing Services will partner with
Honolulu-based First Hawaiian Bank to launch a JCB smart card pilot project
in Hawaii. The launch of the JCB smart card pilot in Hawaii will use smart
card terminals manufactured by Hypercom. On October 29 JCB completed its
first live end-to-end smart card transaction with Vital. JCB is the fourth
largest credit card brand in the world with over 42
million card members. JCB Cards are accepted at nearly 10 million merchants
in 189 countries and territories including more than one million in North
and South America.

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ALPHA VBV

Athens-based Alpha Bank has completed the implementation of
CardinalCommerce’s “Payment Authentication Platform” software for its card
issuing and transaction acquiring business. The implementation was
completed in connection with Alpha Bank’s adoption of the “Verified by
VISA” online authentication standards. Alpha Bank has 2.6 million
customers, 1.5 million active card accounts, over 70,000 merchants, and
30,000 POS terminals. Cardinal and several partners, including Delta
Singular, the largest VISA and MasterCard processor in southeastern Europe,
WorldWide Trust and Safe3w, a provider of strong authentication products,
recently formed a consortium to market online secure payment solutions in
Europe. CardinalCommerce and Delta Singular plan to activate MasterCard
“SecureCode” in the near future for Alpha Bank.

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