$10B Club

Twelve issuers make up the peer group of $10 billion plus in total managed loans as of mid-year. Capital One leads the group in annual growth, jumping more than 60% since last summer. Sub-prime issuers, Providian and Metris also posted above average gains over the same period according to CardData.

($ billions)
2Q/00 2Q/01 Change
1. Citigroup: 92.3 103.9 +12.6%
2. MBNA: 76.3 90.4 +18.5%
3. First USA: 66.3 63.0 – 5.2%
4. Discover: 43.7 50.2 +14.9%
5. Chase: 32.6 36.7 +12.6%
6. AmEx: 25.9 31.2 +20.5%
7. Capital One: 21.9 35.3 +61.2%
8. Providian: 21.8 30.5 +39.9%
9. BofA 20.4 24.8 +21.6%
10. Fleet: 13.8 14.6 + 5.8%
11. Household 15.9 17.0 + 6.9%
12. Metris: 7.8 10.1 +29.5%

Source: CardData (www.carddata.com)



VendTek Systems Inc. announces the appointment of Rob Cruickshank as Chairman
of the Board of
Directors of Now Prepay Corp. and as a Director of VendTek Systems Inc.
Mr. Cruickshank was formerly President of Mobile Data Solutions from
February 1999 until April 2001 and prior to that was a 28 year senior
executive with BC Telecom (now Telus Corp.) including in the capacity of
President, BC Tel Mobility from November 1992 until June 1997. “We are
delighted to attract the talent and interest of such a respected industry
executive as Rob Cruickshank” says VendTek President Paul Brock. “He has
invaluable experience and extensive knowledge both in the
telecommunications business and in capital markets. As Chairman of Now
Prepay Corp. he will oversee the building of a ubiquitous, North American
electronic prepay services network of self-serve e-Fresh(TM) stations and
POS terminals.” The Company also announces the resignation of Mr. Rashid
Aziz who has served on the VendTek Board for three years. We thank Mr. Aziz
for services rendered as he leaves to focus on his other business
interests. About e-Fresh(TM) The e-Fresh(TM) Network enables cellular and
other prepaid service providers to distribute services electronically to
consumers via a proprietary real time network of self-serve kiosks called
e-Fresh Stations and POS terminals connected to a central server. The
system includes proprietary encryption technology for securing the
transmission of the transactions and significantly reduces the operating
costs for companies, improving efficiencies and profits. About Now(TM)
Prepay Now(TM) Prepay is a new subsidiary of VendTek Systems Inc. set up to
build a ubiquitous, North American electronic retail network of self-serve
e- Fresh(TM) stations and POS terminals for the delivery of prepay
services, in conjunction with strategic retail, prepay service and
transaction processing partners. Now Prepay has the exclusive license for
e-Fresh(TM) in North America. About VendTek VendTek uses its expertise in
payment and self-serve technologies, smart cards and networking to develop
systems for transaction automation. VendTek’s secure proprietary systems
reduce shrinkage, improve access for consumers, increase the number of
selling outlets and selling hours, and enhance overall security making the
systems superior to traditional distribution and alternative channels.


NPC Signs Tony Roma’s

National Processing Company a leading provider of merchant credit card processing and a wholly owned subsidiary of National Processing, Inc. announced the signing of a multi-year credit card processing agreement with Romacorp, Inc., for its Tony Roma’s Famous for Ribs restaurants. Under the terms of the agreement, NPC will provide merchant processing solutions for Romacorp’s Tony Roma’s Visa and MasterCard transactions. NPC will provide front-end authorization and settlement services to company and participating franchised Tony Roma’s restaurant locations. NPC has made significant investment in developing innovative products and services specifically for the restaurant industry. “We are looking forward to being a part of the NPC family, benefiting from its leadership, industry expertise and economies of scale,” said Richard A. Peabody, chief financial officer for Romacorp, Inc. “Like us, NPC strives to understand the needs of its customers and provide unique solutions that its customers want.” “NPC is delighted to sign yet another premier restaurant group to its portfolio,” said Drew Soinski, senior vice president of Travel and Entertainment for NPC. “Our commitment to the restaurant industry and expertise in understanding its needs, has allowed us to experience dramatic growth in this sector. NPC will continue its commitment and continue to provide innovative cost-effective merchant processing solutions for this industry.” “Once again, NPC has demonstrated its leadership in merchant processing for the restaurant industry,” said Mark Pyke, executive vice president of Merchant Services for NPC. “We are delighted to sign yet another premier dining establishment like Tony Roma’s.”

About Tony Roma’s Headquartered in Dallas, Texas, Romacorp, Inc. operates and through affiliates franchises over 242 restaurant locations on five continents from Miami to San Francisco, Orlando to Vancouver, and Tokyo to Madrid. The Tony Roma’s concept has remained successful in a constantly changing industry by continuously evolving to keep pace with customer’s changing tastes and demands. About National Processing, Inc. National Processing, Inc. through its wholly owned operating subsidiary, National Processing Company (NPC(R)) is a leading provider of merchant credit card processing. National Processing is 87 percent owned by National City Corporation (NYSE: NCC) ([http://www.nationalcity.com][1]), a Cleveland based $91 billion financial holding company. NPC supports over 500,000 merchant locations, representing nearly one out of every five Visa(R) and MasterCard(R) transactions processed nationally. NPC’s card processing solutions offer superior levels of service and performance and assist merchants in lowering their total cost of card acceptance through our world-class people, technology and service. Additional information regarding National Processing can be obtained at [http://www.npc.net][2]. NPC is not related to or affiliated with NPC International, Inc., the largest franchisee of the Pizza Hut concept, which holds a minority interest in Romacorp, Inc.

[1]: http://www.nationalcity.com/
[2]: http://www.npc.net/



ANZ and Visa today announced a strategic program to convert ANZ’s credit card
technology to chip and launch a new secure Internet shopping system.

As part of the multi-year program, ANZ will be the first Australian bank to

· convert its merchant terminals to chip-enabled MultiPOS terminals that support
the Europay Mastercard Visa (EMV) standard for secure transactions at point of

· launch Visa 3-D Secure – a new, more secure technology designed to protect
cardholders and merchants from Internet-related fraud

· work with Visa to introduce multi-application chip credit cards.

ANZ Managing Director Cards and e-Payments, Mr Brian Hartzer said the program
established ANZ as the first bank in Australasia to implement chip technology
as a key platform for the future.

“This program is exciting for both ANZ’s cardholders and merchant customers as
it is the first substantial commitment to chip technology in Australia and New
Zealand,” Mr Hartzer said.

“It means cardholders will be able to shop with much more confidence on the
Internet. Also, merchants using the new MultiPOS terminal will benefit from
additional chip functionality, and EMV’s added security and chargeback
protection as it rolls out globally,” he said.

Executive Vice President, Visa International Australia and New Zealand, Mr
Gordon Wheaton said the move by ANZ was an important step in laying the
foundation for the full rollout of chip based cards in Australia over the
coming years.

“Once this infrastructure is in place it removes one of the most significant
barriers to the introduction of chip based cards for Australian and New Zealand
cardholders,” said Mr Wheaton.

“Importantly, this initiative also means ANZ will be able provide customers
with the same confidence of shopping on the Internet as they currently have in
the real world.

“The program should therefore be seen as one of the most significant
developments in the Australian and New Zealand credit card markets in recent
years,” he said.



Electronic Clearing House Inc. announced that the company has entered into an agreement to provide Provident Bank, a Cincinnati-based company, with electronic check services and processing as a participating bank in Visa USA’s Point Of Sale check service.

The service allows merchants the ability to electronically accept a check from any financial institution. If the check writer’s financial institution has chosen to participate in the Visa POS check service, the availability of funds is immediately confirmed to the merchant.

If the check writer’s financial institution is not a participating member in the Visa POS check service, under the terms of the agreement, ECHO’s ACH processing system and NCN database will provide the critical infrastructure to enable electronic conversion, verification and guarantee of the checks. Starting this month, several major Visa member financial institutions that have chosen ECHO as their third-party processor are scheduled to initiate their participation in the pilot program for Visa’s POS check service.

“We are very excited to be working with Provident to deliver a complete check-services solution to their participating merchants,” said Joel M. Barry, chairman and CEO of Electronic Clearing House Inc. “The VISA POS service has the potential to sharply reduce check processing costs for banks, while allowing them to provide enormous payment flexibility to the merchant. This program allows merchants to accept checks with confidence by offering three levels of security — check conversion, conversion with verification or check guarantee. With this system, merchants can offer their customers the convenience of checks, while managing their exposure, at a very reasonable cost.”

The POS check service represents a major new initiative by Visa to enable merchants to receive direct online authorization for checks written against consumer demand deposit accounts, similar to credit and debit card transactions. A merchant will be able to convert a paper check automatically to an electronic transaction and will have the option of either verifying availability of funds or guaranteeing payment on the check. The paper check will then be handed back to the customer at the point of sale. Verification significantly reduces the risk of fraud or loss to the merchant. Under the guarantee option, the check is purchased from the merchant at a discount, completely eliminating the risk of loss.

About ECHO:

Electronic Clearing House Inc. provides a complete solution to the payment processing needs of merchants, banks and collection agencies. ECHO’s services include debit and credit card processing, check guarantee, check verification, check conversion, check re-presentment, check collection, and inventory tracking. Customers include more than 60,000 retail merchants and U-Haul dealers across the nation.



Scotiabank and the six partners of the Solstice
Alliance today announced a Canadian first — one card that allows Canadians
to access and choose credit, electronic purse, loyalty programs and other
services using microchip technology.

“Scotiabank is the first Canadian bank to deliver on the promise of a
one-card solution for our customers,” says Albert Wahbe, chairman and CEO
of e-Scotia and executive vice-president, Electronic Banking, Scotiabank.
“Customers are demanding ‘smart’ cards that are capable of meeting many of
their lifestyle needs. The Scotiabank solution will give customers greater
control by allowing them to add and delete card services at their discretion.”

The pilot program will be launched early next year in the region around
Barrie, Ontario and more than 12,000 Scotiabank customers will participate.
Scotiabank will test its vision of ‘smart cards’ and be the first company
in Canada to review the applicability of international and Open Platform
standards. Current Scotiabank customers will be able to sign up for the
pilot by contacting their local branch in Barrie or Angus.

“This is an exciting opportunity for the Solstice Alliance,” says Arnold
Birenbaum, chairman of the Solstice Alliance and senior vice president with
Toronto-based Oasis Technology Ltd. “Scotiabank is delivering an all-in-one
card that truly puts the power of payment options in the hands of
consumers. The choice and flexibility offered to customers will be backed
up with the highest levels of security and authentication capabilities.”

The new card is ready for the EMV (Europay, MasterCard, Visa)
implementations that will result in the replacement of magnetic stripe
cards with industry standard chip and striped credit cards. The EMV
standard was designed by Europay, MasterCard and Visa as a common
specification framework to enable chip-based payment cards to communicate
with point-of-sale (POS) terminals around the globe. In addition to the
added simplicity and convenience smart cards offer, the chip-based EMV
standard delivers enhanced levels of security.

Scotiabank is one of North America’s premier financial institutions, with
about $275 billion in assets and approximately 52,000 employees worldwide,
including affiliates. It is also Canada’s most international bank with more
than 2,000 branches and offices in over 50 countries. Scotiabank is on the
World Wide Web at www.scotiabank.com.

About the Solstice Alliance

The Solstice Alliance was announced in May 2001 and is comprised of six
companies from around the world, each delivering a critical component to
the project. Oasis Technology provides software to facilitate merchant and
card accounting, switching and settlement in addition to a virtual credit
card. Giesecke & Devrient provides its smart card, including embedding and
fulfillment; Public Key Infrastructure (PKI) card applications, security
modules and microprocessing knowledge. Silverline’s CIT ePayments Division
provides PKI security server expertise, on/offshore development, systems
integration and implementation services. Smart Chip Technologies provides
its patented multi-platform smart chip loyalty application and Cardis
provides the micropayments engine capability. Ingenico supplies
point-of-sale (POS) devices and support systems.


Christofferson at De Novo

William F. Keenan, Chairman of De Novo Corporation, announced the appointment of Randy Christofferson to the Board of Directors, effective July 12, 2001. Randy brings a wealth of management and strategic planning experience to the Board. As De Novo continues to grow, it is reaching out for the expertise and guidance from industry leaders like Christofferson who will help the company achieve its goal of becoming one of the largest advertising and consulting holding companies in North America. “We look forward to his insight and expertise and we know his contributions will be significant in many areas,” said Keenan. “Randy’s talent, vision and experiences will provide the necessary leadership and strategic direction for the Board at a crucial time in our globally emerging business.” “I’m excited about accepting the position and look forward to enhancing De Novo’s opportunities for growth,” added Christofferson. “De Novo has the track record, talent, growth and vision to continue its success.” Randy previously was Chief Executive Officer of Walker Digital, an intellectual property laboratory that created the Priceline.com Internet pricing system and a wide range of other new business methods. Prior to joining Walker Digital, Randy was President of First USA Bank. Under his leadership, the bank grew from $13 Billion to over $70 Billion in consumer receivables and went from the 5th largest domestic issuer to the Number 1 issuer of Visa cards in the world. Randy also spent a number of years with American Express. Randy has a Master’s Degree in Business Administration from Harvard Business School and a Bachelor’s Degree in Chemical Engineering from Michigan State University.


De Novo Corporation is an integrated advertising and consulting company providing strategic direction as well as centralized functional services to its subsidiaries. This allows the separate brands to focus all of their talents and resources on their clients’ needs. In all, De Novo operates internationally with offices in three countries: Canada, United Kingdom and United States. Currently, De Novo owns and operates six international brands: Stratcom; Convergence Group; iLabyrinth; Owen/Holleway Group; Creative Solutions International and De Novo UK. De Novo is a dynamic, ambitious company who through acquisition and organic growth has developed relationships with many Fortune 500 companies. De Novo provides clients with expertise in consumer and business intelligence, management consulting, network solutions, interactive communications, brand and direct marketing services.


Canadian Smart Card

Scotiabank and the six partners of the Solstice Alliance announced Tuesday they will introduce a smart card that enables Canadians to access and choose credit, electronic purse, loyalty programs and other services. The pilot program will be launched early next year in the region around Barrie, Ontario and more than 12,000 Scotiabank customers will participate. The new card will be EMV-compliant. The Solstice Alliance was announced in May and is comprised of six companies including: Oasis Technology; Giesecke & Devrient; Silverline’s CIT ePayments Division; Smart Chip Technologies; Cardis; and Ingenico.


OPC Signs Balt

Official Payments Corporation announced Tuesday an agreement to provide a new service for citizens of the City of Baltimore, MD. The service will allow Baltimore citizens to pay personal property and real estate taxes, utility payments and parking citations by credit card over the Internet or via telephone.

This service agreement is part of a new business award. When the system goes live later this year, Baltimore residents will be able to pay taxes via Internet by visiting [www.officialpayments.com][1], or via telephone by calling toll-free 800/2PAY-TAX. American Express, Discover Card, MasterCard and Visa are the cards accepted by the program. Annually, the City of Baltimore, MD collects $401 million in real estate taxes, $60 million in personal property taxes, $201 million in utility payments, and $15 million in parking citations.

Official Payments has similar agreements with over 850 government entities across the country. The Company has contacts with the Internal Revenue Service, 18 state governments, and the District of Columbia to collect taxes, fees, and fines by credit card over the Internet and telephone.

Official Payments Corp. charges taxpayers a convenience fee for processing these credit card transactions. The fee schedule can be found on the Internet at [www.officialpayments.com][2]. For example, a taxpayer who owed the City of Baltimore $1,800 in real estate taxes and charged their taxes would find a total of $1,846.00 on their credit card statement: $1,800 for the tax bill and $46 for the convenience fee. Taxpayers using credit cards with bonus rewards programs can, depending on their card’s program, earn rewards, points, and cash-back or airline frequent flyer miles for paying their taxes.

About Official Payments Corp.

Official Payments Corporation (Nasdaq:OPAY) is the leading provider of electronic payment options to government entities. The company’s principal business is enabling consumers to pay their government taxes, fees, fines, and utility bills by credit card, via Internet and telephone. The company is unequaled in market penetration and national footprint. Official Payments has agreements to collect and process credit card payments with the Internal Revenue Service, 18 state governments, the District of Columbia, and over 850 county and municipal governments in 45 states across the United States. In 2000, Official Payments collected and processed over $925 million in federal, state and local government payments.

Official Payments was founded in the San Francisco Bay area in 1996. Thomas R. Evans, the former President & CEO of the Internet Company GeoCities, became Chairman & CEO of Official Payments in the summer of 1999. Mr. Evans brought Official Payments public in November of 1999, raising $80 million in its IPO on the NASDAQ national market. The company has experienced rapid and sustained growth over the past seven reported quarters in revenue, new client acquisition, and addition of incremental services to existing clients. The company’s success can be attributed to the combination of an enormous market opportunity with a highly skilled and experienced management and staff, aggressive sales and marketing, and a core competency in developing and implementing leading-edge technical systems.

[1]: http://www.officialpayments.com/
[2]: http://www.officialpayments.com/



eONE Global, LP announced the appointment of Dennis Raney to the post of chief financial officer. With more than 30 years experience, Raney has worked for several high growth technology companies and brings broad financial and international management expertise along with an in-depth knowledge of business-to-business e-commerce. As CFO of eONE Global, Raney will oversee the company’s capital management and financial strategy, business planning and analysis, and finance and accounting. “With exemplary operating experience, leadership and industry knowledge, Dennis will play a key role in eONE Global’s growth and continued business expansion,” said Garen Staglin, president and chief executive officer of eONE Global. “He will be a valuable partner to the management teams at eONE Global and at our operating companies, SurePay and govONE Solutions. Based on the qualities necessary to lead eONE Global’s financial strategy and operations, Raney was the ideal fit,” added Staglin. Raney’s career includes executive level positions with major global technology businesses such as Novell, Hewlett Packard and Bristol-Myers Squibb, all of which have equipped him with an in-depth understanding of information technology and how it drives business success. He has been responsible for financial and administrative operations in Europe, Latin America, Africa, Asia, Australia and Japan. “eONE Global presents an opportunity for me to work with an exceptional team of visionaries focused on delivering innovative payment solutions to enterprises, governments and individuals. Based on the company’s outstanding partners — including First Data Corp. and iFormation Group — as well as its knowledge and progress in developing emerging technologies for the Internet and other applications, eONE Global is very well positioned to lead a marketplace that is quickly evolving,” said Raney.

eONE Global is owned by global payment services leader First Data Corp. (NYSE: FDC) and iFormation Group, a company founded by The Boston Consulting Group, General Atlantic Partners and The Goldman Sachs Group, to build new technology-enabled businesses in partnership with the Global 2000. Raney succeeds interim chief financial officer David Treinen, who has assisted eONE Global through operational growth, including investments and strategic alliances since the company’s launch in October 2000. Treinen will continue in his position as managing director at eONE Global with a focus on mergers and acquisitions. Most recently, Raney served as executive vice president and chief financial officer at Novell. He was a leading architect of the firm’s acquisitions, including the latest integration of Cambridge Technology Partners. While responsible for finance, information systems, operations, real estate and investor relations worldwide, Raney was part of a team that shifted Novell’s strategy toward Internet opportunities, focused on assisting enterprises and governments as they transition traditional processes onto the Internet. Earlier in his career, Raney spent 24 years at Hewlett Packard where he first established an interest in financial opportunities within the technology sector. He built a financial management career, while integrating significant international experience, including a four-year assignment managing Hewlett Packard’s financial and administrative operations in Asia, Latin America, Africa and Canada, followed by seven years in Geneva, Switzerland, as head of finance and administration for the company’s European operations. Raney serves on the board of Redleaf, an Internet operating company focused on developing seed stage businesses in business-to-business e-commerce. He also has served on the boards of ADAC Laboratories, a healthcare solutions company, and WR Hambrecht & Company, an Internet focused investment banking firm. Raney holds a master’s of business administration from the University of Chicago, and a bachelor’s of science degree in chemical engineering from the South Dakota School of Mines and Technology.

About eONE Global

As the leading source for accelerating payment innovation, eONE Global, LP ([http://www.eoneglobal.com][1]) identifies, develops, and operates emerging payment systems and related Internet and wireless technologies spanning the business, government and consumer markets. Its operating companies include SurePay, LP ([http://www.surepay.com][2]), which provides end-to-end payment and security products for companies buying and selling over the Internet, as well as govONE Solutions, LP ([http://www.govONEsolutions.com][3]), which enables businesses and consumers to make government payments electronically. eONE Global is owned by global e-commerce and payment services leader First Data Corp. and iFormation Group, a company founded by The Boston Consulting Group, General Atlantic Partners, LLC and The Goldman Sachs Group, to build technology-enabled businesses in partnership with the Global 2000.

[1]: http://www.eoneglobal.com/
[2]: http://www.surepay.com/
[3]: http://www.govonesolutions.com/


#1 Internet Card

NextCard, Inc. announced it was once again named the No. 1 Internet Credit Card. In the Gomez Summer 2001 ScoreCard, NextCard prevailed over all other firms, including larger, more-established credit card companies such as Citibank, American Express, Bank of America, MBNA and Discover. NextCard won the award for the fourth time out of the five times Gomez has awarded the ranking. The Gomez Scorecard can be viewed at [http://www.gomez.com][1].

Gomez ranked NextCard the best credit card for the “Internet-Savvy” consumer and the “Credit Seeker.” NextCard ranked at the top of the list for being a “feature-leading” site. NextCard received high marks for its easy online application, expansive ability to manage accounts online, and the popular PictureCard(SM), which allows cardholders to personalize their card with their own photograph or choose from a gallery of photographs. The PictureCard(SM) covers 2/3 of the card and was developed with proprietary technology. The Gomez Internet Credit Card Scorecard looks at credit card issuing banks that offer the ability for a consumer to apply online and view their credit card transactions within a single site independent of other integrated online products. Currently, the Scorecard focuses on firms that can demonstrate to have either $1 billion in managed credit card receivables or be an Internet-only bank. Only firms that issued their own credit cards and extend loans to the pubic at large were considered.

Only 20 banks met these criteria. The 20 firms, in rank order for overall score, are NextCard, Citibank, American Express, Juniper, J.P. Morgan Chase, First National, Fleet Boston, Discover Card, National City Bank, GM Card, SFNB, Bank of America, Virtual Bank, Household Bank , Wells Fargo, First USA, Capital One, MBNA, Direct Merchants Bank, and U.S. Bancorp.

About NextCard

NextCard, Inc. ([www.nextcard.com][2]) is considered the leading issuer of credit cards on the Internet. Launched in 1997, the Company was the first to offer instant online credit card approval, a choice of customized credit card offers, and exceptional online customer service. NextCard is committed to providing the most robust consumer shopping experience on the Internet and has continued to innovate with its NextCard Concierge(SM) online shopping service, online bill payment services, and comprehensive rewards program.

NextCard is also one of the leading direct marketers on the Internet, operates a network of more than 90,000 online affiliates, and has exclusive card relationships with leading online brands, including Amazon.com and MyPoints.com.

NextCard has been named the No. 1 Internet credit card by Gomez four times. According to the 2001 Brittain Associates “Credit Cards on the Net” study, NextCard leads the online credit card market with a 26 percent share. NextCard, Inc. issues credit cards through NextBank N.A., a wholly owned subsidiary.

About Gomez

Gomez provides e-commerce customer experience measurement, benchmarking, and customer acquisition services to help firms build successful e-businesses and guide consumers in transacting online.

[1]: http://www.gomez.com/
[2]: http://www.nextcard.com/


VISA Canada

VISA Canada reported yesterday that annual purchasing volume has crossed the annual $100 billion level. VISA projects charge volume in Canada will exceed $104 billion annually by the end of this year. VISA cards now account for approximately 16% of all consumer purchases in Canada, almost double the share in 1993. VISA says its 26 members offer more than 400 different products and services in Canada. There are more than 23.6 million VISA cards in Canada accepted at more than 574,000 merchant locations across the country. Canadian merchants will process approximately 850 million VISA transactions this year.