VF & VIDRA

Belgrade-based VIDRA Info, a wholly owned subsidiary of the Arius Group
has signed a deal to become VeriFone’s channel partner in Yugoslavia. The
first contract from the partnership resulted in the first shipment of 1,000
“Omni 3750” terminals to the Komercijalna Bank of Yugoslavia. The “Omni
3750” has proved to be the fastest selling model in VeriFone’s history
reaching a milestone of 70,000 terminals shipped in the eight months since
its launch in January of this year. VIDRA info’s parent company, Arius
designs and produces software for the implementation of specific
information systems and has recently formed a joint venture with
Komercijalna Banka and Euronet to set up and run a processing center for
POS and ATM transactions in Yugoslavia. Komercijalna banka is a Europay
principal member, a VISA associate member, an exclusive American Express
agent and YUBA card issuer.

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FDC 3Q/02

First Data reported 13% revenue growth in the third quarter, and a doubling of earnings per share compared to last year. However the company said yesterday it is paying very close attention to consumer behavior at the point of sale during the fourth quarter and its potential impact on revenue. The Payment Services unit produced $821 million in 3Q/02 revenue, a 19% gain and a 21% gain in profits compared with 2001 pro forma profits. The Card Issuing Services division produced operating profits of $97 million, a 4% from 2001 pro forma results. However, CIS revenue was down 3% to $485 million. The Merchant Services unit, comprised primarily of First Data Merchant Services and TeleCheck, generated $703 million in revenue, a 21% gain. Profits rose 10% on a pro forma basis to $196 million. Merchant processing transactions grew 18% for the third quarter to 2.6 billion. Emerging Payments, First Data’s eONE Global business, which accounts for 2% of First Data revenue, reported $38 million in revenue for the quarter. For complete details on FDC’s third quarter results visit CardData ([www.carddata.com][1]).

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

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MONDOCARD PROCESSING

Mondopolitan has undertaken construction of a new transaction processing
facility in Hong Kong with a sub-facility in Nassau. Mondopolitan, through
its majority owned subsidiary MondoCard and global banking partners,
provides MasterCard, Maestro, Cirrus and other private network based global
debit and credit cards to emerging markets. The firm specializes in stored
value virtual accounts. Its products are held in U.S. dollar denominated
accounts.

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Isracard & Cyota

Isracard has selected Cyota to provide “Verified by VISA” and “MasterCard SecureCode” to its cardholders. Isracard, one of the first issuers to announce a “MasterCard SecureCode” service worldwide, will launch the new services to its cardholders this quarter. Isracard previously launched “SecureClick”, Cyota’s surrogate number solution two years ago. Isracard is owned by Bank Hapoalim and issues the local “Isracard” credit card, as well as MasterCard, AmEx and VISA. It has over 1.5 million cardholders.

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ISRACARD SELECTS CYOTA

Isracard has selected Cyota to provide “Verified by VISA” and
“MasterCard SecureCode” to its cardholders. Isracard, one of the first
issuers to announce a “MasterCard SecureCode” service worldwide, will
launch the new services to its cardholders this quarter. Isracard
previously launched “SecureClick”, Cyota’s surrogate number solution two
years ago. Isracard is owned by Bank Hapoalim and issues the local
“Isracard” credit card, as well as MasterCard, AmEx and VISA. It has over
1.5 million cardholders.

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AmEx Gift Card

American Express has joined the gift card bandwagon. The new American Express Gift Card features a card embossed with the recipient’s name and good at all retailers that accept the AmEx cards. The new card is available in amounts from $25 to $500 and can be purchased through the American Express Web site. The new “Gift Card” is the latest addition to the AmEx prepaid services portfolio which includes the Travelers Cheque, Cheques for Two, Gift Cheques, the Be My Guest dining card, as well as a range of corporate incentive prepaid products, through American Express Incentive Services. Last month, VISA U.S.A. formally announced its gift card. VISA estimates the overall market for gift cards to be nearly $300 billion, which corresponds to approximately $174 billion for consumer gift cards and another $124 billion for commercial applications.(CF Library 9/25/02).

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E-Billing Projections

Consumer adoption of Internet-based billing and payment applications continues to increase, as 22% of the U.S. adult population will be using these applications by the end of 2002, up from 16% percent in 2001. The research, conducted by Gartner, also projects that by the end of 2005, the number of consumers using online account management and e-billing applications will have grown to 45% of the U.S. adult population. Gartner says credit-card issuers are the most savvy of marketers and the most advanced in customer service. Applications in which consumers interact directly with billers have earned at least 20 times the adoption of the recent bill-consolidator model that requires consumers to change normal interaction patterns. Gartner analysts said that consumers prefer viewing and paying their e-bills directly at biller Web sites rather than registering for a consolidated model at their bank’s (or other service provider’s) Web site, where they can only receive two or three of their major bills. Credit card issuers and telecommunications companies have been the most aggressive in developing e-billing Web sites and developing customer service functionality around them.

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CMS Signs The North West Company

San Francisco-based Credit Management Services has signed The North West Company, which operates 176 food and general merchandise stores in northern Canada and Alaska, as a client to use CMS’ credit card application solution to support its private label credit card business. CMS provides a powerful application solution that helps credit card providers (retailers, banks, financial institutions, private label and co-branded credit providers) become more competitive. CMS’ proven solution offers strategic advantages to corporate credit programs.

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Travel Holdouts

The economic uncertainty continues to impact consumer travel. Nearly 80% of respondents to a Hotwire survey said they have yet to book December holiday travel, with 61% planning to put off the task until at least November. Additionally, 23% plan to wait until the last minute, saying they won’t book December travel until after Thanksgiving. At the same time, 57% of those planning to purchase December holiday travel say they want to be careful about how much they spend on holiday travel this year, citing concerns about the economy as the reason they plan to spend less. Hotwire says U.S. flying capacity is down at least 10% from last year. This means airlines are flying with fewer open seats and charging higher fares.

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TSYS & 5Star Bank

5Star Bank has signed a 5-year renewal agreement with TSYS for consumer and commercial card account processing for 5Star’s 200,000 card portfolio. 5Star Bank, with $215 million in assets and $100 million of credit card loans under management, is a niche provider of depository and credit card services to its customer base, including members of its parent company, Armed Forces Benefit Association (AFBA).

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