OPEN Delta Card

OPEN: The Small Business Network from American Express and Delta Air Lines have launched the “Platinum Delta SkyMiles Business Credit Card.” The co-branded airline card offers small business owners a free companion certificate each year upon renewal and 10,000 bonus miles plus 5,000 bonus base miles. Ten thousand base miles will also be awarded to cardholders every year their annual card spending reaches $25,000 or more in purchases. There is no limit to the number of miles earned in a calendar year. Cardmembers also earn two miles for every eligible dollar charged to the card for purchases at supermarkets, gas stations, drugstores, home improvement stores, the U.S. Postal Service, wireless phone bills and Delta Air Lines. The new program also features “OPEN Small Business Network” benefits such as negotiated savings on everyday business expenses from Dell, ExxonMobil, FedEx, Hertz and The Hilton Family of Hotels. The Platinum Delta SkyMiles Business Credit Card has an annual fee of $135. For cardholders who already have a charge card from OPEN: The Small Business Network from American Express, the annual fee is $80. The interest rate for purchases is prime plus 9.99%.

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CSI Debit Cards

KY-based Computer Services has expanded its line of card services to include a debit MasterCard. PULSE EFT Association, a principal member of MasterCard, will sponsor CSI customers into the MasterCard network. CSI customers with a three-fold benefit: they will earn income each time the debit MasterCard is used for point-of-sale purchases; they can take advantage of CSI quantity discounts on “Distinctive MasterCard Standard Plastics”; and they can expand the line of convenience products they offer to their customers. Computer Services is one of the top five bank processing companies in the nation.

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InteliData 2Q/02

VA-based InteliData Technologies reported that revenue for the second quarter was $5.5 million, an increase of 25% over the $4.4 million reported for the second quarter 2001. Gross profit for the quarter totaled $3.4 million compared to $2.2 million for 2Q/01. During the quarter, the company expanded its Wachovia relationship to include licensing of Interpose Web Banking user interface for bill payment capabilities and upgraded BB&T, which licensed the latest version of InteliData’s Internet banking and electronic bill payment platform, Interpose 5.0. The Company also provided third quarter guidance with revenues targeted between $6.0 – $6.5 million. For complete details on InteliData’s 2Q/02 performance visit CardData ([www.carddata.com][1]).

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

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Diners Club & Office Depot

Diners Club has signed Office Depot to accept the family of Diners Club Cards at its more than 850 retail stores in North America and is offering double “Club Rewards” points on every Office Depot purchase charged to Diners Club through Sept. 30. Office Depot, Inc., founded in 1986, is the world’s largest seller of office products and an industry leader in every distribution channel, including stores, direct mail, contract delivery, the Internet and business-to-business electronic commerce, operating more than 850 office supply superstores in the United States and Canada.

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Benny Card

Flex-Plan Services, a WA-based third party administrator, has contracted with Evolution Health to offer the “Benny Card,” a stored-value, special purpose MasterCard Card that facilitates access to flexible spending accounts. The regional TPA will first offer the “Benny Card” to its own employees and then to its top clients, which include The Fred Hutchinson Cancer Research Center, Seattle School District, City Of Everett and Murray Franklin Corporation. The contract, which took effect in May, represents one more in an ever-expanding list of national and regional TPAs who have agreed to offer the “Benny Card” to their clients, representing more than 2.2 million FSAs. The “Benny Card” was officially launched by Evolution Benefits, a division of Evolution Health, on January 1st of this year, with a Fortune 500 utility company, among others. It also implemented on July 1, 2002 the nation’s first combined FSA and health reimbursement account powered by the Benny Card with Humana Inc., a top-10 health plan based in Louisville, KY. Evolution Health’s Benny Card partners include MasterCard, WildCard Systems, BANKFIRST, Advance PCS, Merck-Medco and Express Scripts.

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ACTIVCARD 2Q/02

ActivCard reported revenue for the second quarter of $9.6 million, an increase of 18% over the $8.2 million reported in the first quarter of 2002 and a year-over-year increase of 13% from the second quarter
of 2001. Net loss for the quarter was $4.7 million, compared to a net loss of $2.7 million in the second quarter of the prior year. For the third quarter, the company anticipates continued sequential growth with revenues ranging between $10.0 million and $11.0 million.

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FARGO DEAL

Mexico City-based Latin ID has been named by Fargo Electronics as its import supplier for Mexico. Latin ID joins Ifo Identiformas s.a. de C.V. and Identicod (Sistemas de identificacion Automatica, S.C.) to form the largest ID card printer distribution company in Mexico. Latin ID will specialize in government projects and business-to-business distribution sales. Latin ID will move into new offices in Mexico City in September. Minnesota-based Fargo is the only manufacturer to offer three distinct technologies in printing systems – “High Definition Printing,” traditional “Direct-to-Card” printing, and “CardJet Printing Technology” – to personalize plastic identification cards, complete with digital images and text, lamination, and electronically encoded information.

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GAMBLING BAN IMPACT

London-based WildlifeWins.com says the American ban on credit card transactions for online gambling is putting a damper on what could be significant funding in poorer regions of the world including Africa and Asia. When you visit WildlifeWins.com you have two options, you can either buy a
bingo, scratch card or lottery ticket that gives you the chance to win up to $20 million, or you can make a donation directly to the aid of the animals you
wish to preserve. However, with online credit card transactions related to gaming being negatively coded by major US credit card issuers, even cards
registering to make direct donations are being rejected.

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Card Pulse

More data confirming favorable credit card portfolio trends this summer: bank credit card charge-off rates are improving and most issuers are now reporting lower 60-day+ and 90-day+ delinquencies. Last week, RAM Research Group reported that charge-offs and delinquency among all card outstandings declined during June to 6.44% and 5.52% respectively. This week Standard & Poor’s reports that charge-offs and delinquency among credit card-backed securities declined 25 bps in June to 6.9% and that more than 60% of the trusts that make up its ABS credit card index reported lower 60-day-plus and 90-day-plus delinquencies.

STANDARD & POOR’S CREDIT CARD QUALITY INDEXES
Performance month Jun 00 Jun 01 Apr 02 May 02 Jun 02
Yield (%) 19.4 19.3 18.4 18.6 17.9
Charge-offs (%) 5.3 6.5 7.4 7.1 6.9
Delinquencies (%) 4.1 4.9 5.2 5.0 5.1
Payment rate (%) 16.6 15.9 15.6 16.4 15.2
Source: Standard & Poor’s

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SMART CARD MANAGEMENT

Cassis International and MasterCard International signed a MOU to offer the first smart card management services in South East Asia. For card issuers, Cassis provides the secure platform to share services and outsource their non-core IT activities thus relieving them of the need to install and maintain expensive infrastructure required for chip implementation. This suite of services will promote speed to
market, alleviate ongoing operational costs, resulting in low implementation costs. Currently, MasterCard is supporting 130 chip migration projects globally. Over the past few months MasterCard has carried out several programmes to accelerate the migration of chip in Malaysia. In April this year, MasterCard International launched “OneSMART MasterCard,” a comprehensive approach to smart cards designed to give MasterCard’s member financial institutions around the world the technology choices, marketing support and critical flexibility they need to succeed.

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TU Fights Credit Repair Fraud

TransUnion this morning announced that it is making available a fact sheet that provides consumers with guidance in effectively managing their individual credit reputation. It contains tips on how consumers can effectively monitor and manage their own individual credit reports so that there are no `surprises’ when they want to get the loans they need, the car they want, or the home of their dreams. This consumer education fact sheet is available on-line at TransUnion’s Web site.

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