VIRTUAL WALLETS

Societa’ per i Servizi Bancari has licensed the ACI Virtual Wallet to issue electronic wallets to Italian consumers. With 29 million payment cards in 2001, SSB is a leading European processor for the management of national/international debit and credit cards and an application center for the management of inter-bank payments, handling approximately 4 billion transactions in 2001. The virtual wallet forms part of the BANKPASS Web service that the Italian Bankers Association is promoting to strengthen Italy’s online financial services. Operational since January 2002, participating banks can use BANKPASS to provide the ACI Virtual Wallet to their customers, making on-line purchases more simple, more secure and easier to track. Currently, more than 530 customers in 71 countries use ACI supplied software.

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TSYS ENTRY

TSYS is establishing a sales and marketing office in Italy and has named Fabio Micheli as regional sales manager for Italy, Turkey, Greece and France. Before joining TSYS Europe, Micheli was Italian country manager for First Data. He has worked in sales for more than 20 years, including numerous management positions with Citibank in its cards Italy division. TSYS entered Europe in 1999 and operates a business development office in London, professional services center in York and a data center in Harrogate, United Kingdom, which support all of TSYS’ European operations. TSYS expects to open additional offices throughout Europe to service clients.

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VIDEO GRAPHI-CARD

Auckland-based JSM Entertainment Limited has adopted the Visible Results Group’s “GraphiCard” loyalty card technology and CRM system for use in its new BLOCKBUSTER Rewards loyalty program. JSM launched the program in mid-June in all 24 New Zealand BLOCKBUSTER video stores for which it holds licensing rights. The program replaces customers’ existing BLOCKBUSTER membership cards while allowing them to retain their existing membership numbers and rental histories. To generate interest in BLOCKBUSTER Rewards, BLOCKBUSTER will give away over NZ $1 million worth of prizes in the first year, including a year’s free video rentals from each of its stores. The introduction of BLOCKBUSTER Rewards marks the fifth rollout of a GraphiCard-based loyalty card program in New Zealand. Other retailers with such programs in place include Mobil Oil, Pandoro Panetteria, WISK, HBK Girl and Dymocks Booksellers. The latter company also utilizes GraphiCard throughout its retail network in Australia and Hong Kong.

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SUREFIRE DEAL

Montreal-based SureFire Commerce has completed an outsourcing agreement with a European financial services company. SureFire is trying to return to profitability and has streamlined its back office tasks by partnering with financial services providers. The Company will begin outsourcing certain processing functions this quarter. SureFire Commerce processes credit card payments for Internet, mail-order/telephone-order, and bill payment transactions, as well as processing checks online and by phone.

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Fleet 2Q/02

FleetBoston’s domestic credit card portfolio contracted by 3.5% during the second quarter, while net income slipped by 6%, compared to the prior quarter. Active credit card accounts also declined by 168,000 between April 1st and June 30th. The nation’s 10th largest issuer reported second quarter charge volume of $5,560,000,000, a slight increase over the second quarter of 2001. Managed delinquency dipped from 3.97% for 1Q/02 to 3.74% for the second quarter. However, managed charge-offs increased from 5.42% to 5.81% during 2Q/02. Fleet card customers generated $409 million in revenues and $41 million in second quarter profit compared to $410 million in revenues and $47 million in profits during the first quarter of this year. For complete details on Fleet’s latest portfolio performance visit CardData ([www.carddata.com][1]).

FLEET PORTFOLIO SNAPSHOT
2Q/02 1Q/02
Recv: $14,679,000,000 $15,211,000,000
Vol: $ 5,560,000,000 $ 5,794,000,000
Accts: 7,265,000 7,164,000
Actives: 5,369,000 5,537,000
Cards: 11,503,000 11,363,000
Source: CardData (www.carddata.com)

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

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LOTTERY TRANSACTIONS

Pagic.net and Hypercom have teamed to create and install a customized transaction communications network for the Taiwan Lottery. The new network is now handling the transmission of more than 10 million lottery ticket purchases daily, or a projected 3.65 billion transactions annually, between Pagic.net and more than 7,000 online and in-store retail lottery retailers. Hypercom’s “IEN 6000” integrated enterprise network access devices are employed for the transmission of millions of data packets between Lottery Taiwan Service Corporation’s host computer and Taiwan lottery retailers. The customized, scalable network, which uses X.25 protocol at the central and remote sites, has a capacity to conduct more than 40 million transactions a day, or more than 14 billion transactions every year.

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EDC HIRES BURELLI

Edgar, Dunn & Company has named payment card expert Francesco Burrelli as engagement manager in the company’s London office. Burelli will oversee the growth and expansion of EDC’s client roster in Italy. As a business strategist with more than a decade of experience in banking and card payment services industries, Burelli, has carved out professional specialties in e-business and customer value management (CVM), and will offer this knowledge in a wide range of EDC client engagements throughout Europe. Burelli also has extensive experience in card payment profitability issues including dispute management and credit counselling management.

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BofA 2Q/02

Bank of America reported this morning that it added more than $500 million to managed credit card outstandings during the second quarter, a 2% increase over the first quarter. The surge was driven by new account purchase volume and an increase in balance transfers. However, card profits were only up slightly from last year, and down by 21% compared to the first quarter. Over the past twelve months BofA’s credit card outstandings have increased 9%, to end the second quarter at $27.1 billion. Total card revenues for 2Q/02 were $821 million with net pre-tax income of $189 million. Net income for 1Q/02 was $240 million, and for 2Q/01 it was $183 million. However, charge-offs, as a percentage of average receivables, hit 5.59% for the second quarter compared to 4.94% one year ago. BofA’s delinquency rate also edged up from 5.45% one year ago to 5.54% for 2Q/02. The 30+ day delinquency rate was 3.78% for 2Q/02 compared to 3.81% one year ago, but 90+ day delinquency rose from 1.64% for 2Q/01 to 1.76% for second quarter 2002. BofA also noted this morning that active debit cards increased 8% and purchase volumes rose 15% from a year ago. For complete details on BofA’s latest portfolio performance visit CardData ([www.carddata.com][1]).

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

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INFOCORP DEAL

Winnipeg-based Infocorp Computer Solutions has been selected by Service New Brunswick to install its Access2Gov solution on over 200 cashier stations at more than 30 service centers, outlets and registry mapping offices across the province of New Brunswick. Infocorp’s Access2Gov solution is a proven POS cashiering, reconciliation and revenue management product that will be fully integrated with the province’s departmental systems and general ledger systems. Ultimately, transaction management from other channels, including the Internet, will be consolidated onto the Access2Gov revenue management platform.

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