Brookwood Capital Facilitates a TNB Deal

Brookwood Capital has announced that TNB Card Services has established a credit card partnership with TX-based Gulf Coast Educators FCU. Under this agreement, TNB purchased Gulf Coast’s existing credit card portfolio and will issue credit cards under the Gulf Coast Educators FCU name. Based on NCUA reporting, the existing portfolio included more than 5,000 credit card accounts and $5.6 million in receivables among Gulf Coast’s nearly 34,000 members. The credit union has approximately $250 million in assets. Brookwood Capital is an advisor to credit unions related to the credit card industry, including brokerage, consulting and advisory services to credit card issuers nationwide.

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BofA Q2 Credit Card Profits Slip 44%

Bank of America reported that its Card Services division had Q2 revenue of $6.43 billion, an increase of 2% compared to the second quarter of last year and net income declined 44% to $961 million due to higher credit costs. Managed U.S. consumer and business credit card loans at the end of the second quarter increased 4% year-on-year to $150.2 billion. Second quarter Card Services charge-offs were 5.20%, compared to 4.81% in the prior quarter and 3.55% one year ago. The managed 30+ day delinquency declined to 5.24%, compared to 5.44% in the first quarter and 4.73% for 2Q/06. BofA also reported that its merchant acquiring business handled $91.5 billion in processing volume during the second quarter from total transactions of more than 2.0 billion. Purchase volume for U.S. consumer and business cards was $61.4 billion for 2Q/07 compared to $55.5 billion for 1Q/07 and $59.8 billion for 2Q/06. For complete details on Bank of America’s 2Q/07 performance, visit CardData ([www.carddata.com][1]).

BOFA EOP CARD LOAN HISTORICAL
(U.S & International Cards)
2Q/06: $162.1 billion
3Q/06: $164.5 billion
4Q/06: $170.5 billion
1Q/07: $165.4 billion
2Q/07: $169.9 billion
Source: CardData (www.carddata.com)

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

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U.S. Merchant Systems Offers a Guarantee

Guarantee provider Assurz is partnering with U.S. Merchant Systems to offer a “100% Satisfaction Guarantee” to e-commerce retailers. If for any reason a buyer is unhappy with his or her purchase within the first 90 days after delivery, Assurz will refund the price including tax and shipping, and provide packaging materials as needed. Assurz does not charge restocking fees, and even pays the return shipping fee. Merchandise is liquidated in secondary channels to avoid competing with participating merchants. The partnership will provide first class customer service and drive sales for U.S. Merchant’s over 3000 active e-commerce merchant outlets. U.S. Merchant Systems is a Merchant Service Provider for VISA and MasterCard.

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SPDBCCC & IHG CARD

Shanghai Pudong Development Bank Credit Card Center (SPDBCCC)
and IHG (InterContinental Hotels Group) have launched a co-branded
Priority Club Rewards VISA. This is the first partnership between a
Chinese bank and IHG for which customers earn points on spending,
double points on spending in IHG hotels and bonus points upon activation.
Points can be redeemed for free stays in any of IHG’s 66 hotels in China,
more than 3,700 hotels worldwide and discounts with 40,000 special
merchants of the Citigroup. Priority Club Rewards has over 33 million
members globally, 600,000 of whom reside in mainland China, and IHG
has a monthly average growth of 15,000 Chinese members. IHG also owns,
manages, leases or franchises over 3,700 hotels and 558,000 guest rooms
in nearly 100 countries and territories.

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GE Money Profits Rise 8% Despite WMC

GE reported that revenues for its Consumer Finance unit, now known as GE Money, climbed 17% in the second quarter to $6.1 billion. However, profits grew by 8% to $952 million, compared to one-year ago. despite a loss at its U.S. mortgage business, WMC. GE made the decision to exit this business and substantially reduced its exposure by selling $3.7 billion of WMC loans in the quarter. During the second quarter, GE Money has signed a deal to be the exclusive issuer of the “Lowe’s Platinum VISA” credit card and to continue providing private label and co-branded credit programs for Lowe’s Companies; Ohio-based The Andersons retail stores and GE Money have signed an agreement to extend its 10 year relationship with the “Andersons Credit Card” consumer financing program; GE Money and eBay announced plans to launch an “eBay MasterCard” in June; and the new Wal-Mart “MoneyCard” is being launched nationally with GE Money. For complete details on GE’s second quarter performance, visit CardData ([www.carddata.com][1]). (CF Library 5/2/07; 5/22/07; 6/15/07; 6/20/07)

GE CONSUMER FINANCIAL TRACK RECORD
Income Revenues
2Q/06: $880 million $5268 million
3Q/06: $916 million $5590 million
4Q/06: $875 million $5811 million
1Q/07: $851 million $5807 million
2Q/07: $952 million $6145 million
Source: CardData (www.carddata.com)

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

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ICMA Intros Advanced Card Education

The International Card Manufacturers Association has introduced “Advanced Card Education”, the first accreditation program for the card manufacturing industry. The ACE designation is awarded to people with a broad and detailed knowledge of card manufacturing and processes who successfully complete a rigorous exam. Applicants must be working for an ICMA member company and have a minimum of three years experience working in the card industry in any of the following areas: Card manufacturing, personalization or service bureau or a supplier to the card industry. The first designation, “ACE-M”, covers basic card manufacturing; future designations planned include “ACE-A” (advanced technologies) and “ACE-P” (personalization). ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants.

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Nomad Software Becomes Nomad Payments

OTP Bank has upgraded its network of nearly 2,000 ATMs to Level Four’s
“BRIDGE:test” ATM software. “BRIDGE:test” is an automated testing
solution for Windows-based ATM applications and will enable OTP 80%
time savings for end-to-end testing of ATM software applications. The
software is part of a suite of open ATM software products designed to
maximize ATM investment by saving time and money through interoperable
product components. The entire BRIDGE suite offers
solutions for installation, testing and monitoring as well as run-time ATM
software. OTP Bank has a network of 440 branches and nearly 2000 ATMs,
making it the largest retail bank in Hungary. Headquartered in Budapest,
the
bank has 8,200 employees supporting over 11 million customers in 9
countries.

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WaMu Q2 Credit Card Profits Down 22%

Seattle-based Washington Mutual reported that second quarter net income for its Card Services unit decreased 22% from the year-ago quarter to $141 million. The decrease in net income from prior periods was due to a higher level of provisioning from the quarter’s strong growth in period-end receivables and a reduction in noninterest income from the lower level of securitization activity in the second quarter. However, Card Services opened a record 928,000 new credit card accounts during the quarter with a third coming from WaMu customers. Managed card outstandings were $25 billion as of June 30th, compared to $21 billion one-year ago. At 5.11% of period-end managed receivables, the 30+ day managed delinquency rate was down from prior quarters due to the strong receivables growth in the quarter. Net credit losses of 6.49% during the quarter were up from prior periods with an increase in contractual and bankruptcy losses. For complete details on WaMu’s latest performance, visit CardData ([www.carddata.com][1]).

WaMu Net Income Track Record
2Q/06: $181.0 million
3Q/06: $207.0 million
4Q/06: $149.0 million
1Q/07: $256.0 million
2Q/07: $141.0 million
Source: CardData (www.carddata.com)

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

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PRECEDIA & GPN

Precedia Technologies’ POSLynx220 payment router has received Class B
certification allowing the integration with existing POS devices. This
will also
introduce the company’s payment engine, “TranNet,” to Global Payments
processing clients. “TransNet” seperates the payment function to
POSLynx220 and is ideal for PC-based systems to secure transactions.
Certified by Global Payments, POSLynx220 provides connectivity to a range
of POS equipment and IP payment options for merchants processing to
Global Payments. Precedia Technologies has customers in 85 countries.

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UATP Adds PayPal Option for SWA Tickets

UATP is helping to enable PayPal payments for online airline ticket purchases with the addition of Southwest Airlines. Through the UATP network of over 220 airlines around the globe, PayPal is able to use the network to connect to the airlines and process payments. Making payments by PayPal is easy; consumers can choose PayPal as a payment method and conduct what they see as a normal PayPal transaction. Airlines will process the payment like a UATP transaction through the existing network. UATP accounts are accepted as a form of payment for corporate business travel by airlines and travel agencies worldwide.

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Western European ATMs Expand 4.4% in 2006

GE reported that revenues for its Consumer Finance unit, now known as GE Money, climbed 17% in the second quarter to $6.1 billion. However, profits grew by 8% to $952 million, compared to one-year ago, despite a loss at its U.S. mortgage business, WMC. GE made the decision to exit this business and substantially reduced its exposure by selling $3.7 billion of WMC loans in the quarter. During the second quarter,
GE Money has signed a deal to be the exclusive issuer of the “Lowe’s Platinum VISA” credit card and to continue providing private label and co-branded credit programs for Lowe’s Companies; Ohio-based The Andersons retail stores and GE Money have signed an agreement to extend its 10 year relationship with the “Andersons Credit Card” consumer financing program; GE Money and eBay announced plans to launch an “eBay MasterCard” in June; and the new Wal-Mart “MoneyCard” is being launched nationally with GE Money. For complete details on GE’s second quarter performance, visit CardData (www.carddata.com). (CF Library 5/2/07; 5/22/07; 6/15/07; 6/20/07)

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