Wells Fargo Offers Green Credit Card Rewards

Wells Fargo has become the first U.S. financial institution to make clean, renewable energy reward options available to its cardholders. Through “Wells Fargo Rewards” programs, consumer and business credit card and check card customers can now redeem reward points to support renewable energy projects and receive certificates for their donations. For 5,000 points, cardholders can support 6,000 kilowatt hours of green power. For 10,000 points, cardholders can support the development of enough green power to offset the more than seven tons of greenhouse gas emissions. “Wells Fargo Rewards” programs also offer renewable energy certificates that include “Enhanced Rewards,” “Exclusive Rewards,” “Rewards for Business Check Card” and “Wells Fargo Business Card Rewards.” Wells says that at year-end 2006, it was the largest purchaser of renewable energy in the USA according to the Environmental Protection Agency’s “Green Power Partnership” program.

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Credit Card Debt Rebounds to a New Record

Credit card debt rebounded in February, setting a new record of A$39.5
billion after a big seasonal shake-off in the prior month. However, card
volume was sluggish staying on par with January’s level. Credit card
debt is up 13.8% and charge volume is running 7.7% higher than February
2006. Also, credit card limits reached a new high at A$103.3 billion,
marking the sixth consecutive month of A$100+ billion. Card volume was
A$15.3 billion during February, compared to a previous record of A$17.1
billion set in December, according to the Reserve Bank of Australia. For
February, credit card balances increased about A$2.2 billion from the
previous month. One-year ago credit card debt stood at A$34.7 billion.
Gross dollar volume on credit card and charge cards was A$14.2 billion
for February 2006. There are currently 13.4 million credit card and
charge card accounts in Australia, compared to 12.7 million one-year ago.

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TSYS’ First Quarter Profits Climb by 14%

TSYS reported that first quarter profits rose 14%, hitting $57.3 million. Revenues of $430 million represented a 23% rise over 1Q/06. The Company says the results for the quarter compared to last year are impressive, as the results for last year include revenues from two significant clients that deconverted after the first quarter of 2006. TSYS’ says internal revenue growth in its core processing business was 12.3%, and new business, including acquisitions, added 20% of revenue growth, both of which helped overcome a 27% decline in revenues associated with deconverted portfolios. In addition, TSYS international revenues for the first quarter grew 47% over last year, and are now expected to produce continued growth for the remainder of the year. During the first quarter, TSYS completed the Capital One conversion; signed a contract extension with Spira de Mexico to continue processing its consumer-credit portfolio; the “PRIME” card and merchant management system was chosen by Norway’s DnB NOR Bank to manage the cards portfolio of DnB NOR Kort; renewed merchant-processing service agreements with Sage Payment Solutions and Moneris Solutions covering its U.S. portfolio; and signed agreements to provide merchant-processing services for Clearent and National Processing Company, formerly Iron Triangle Payment Systems. For complete details on TSYS first quarter performance, visit CardData ([www.carddata.com][1]).

TSYS REVENUE HISTORICAL
1Q/05: $350.0 million
2Q/05: $410.2 million
3Q/05: $422.0 million
4Q/05: $420.7 million
1Q/06: $412.3 million
2Q/06: $429.2 million
3Q/06: $441.8 million
4Q/06: $503.9 million
1Q/07: $429.6 million
Source: CardData (www.carddata.com)

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

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Large FL CU Offers ScoreCard Rewards

Fidelity National Information Services has signed a 3-year agreement with FL-based Suncoast Schools FCU to offer FIS’ ScoreCard Rewards on debit cards. FIS’ ScoreCard is a loyalty program designed to help build customer/member loyalty within financial institutions. Suncoast Schools FCU has been offering FIS’ ScoreCard bonus points on credit card purchases for two years. ScoreCard serves both existing FIS card-processing clients and issuers that do not process their card accounts with FIS. One of the capabilities of the program enables financial institutions to target their market by applying different point values for different purchases. For example, Suncoast Schools FCU offered double points for gas purchases during the high-priced gas season. Suncoast Schools Federal Credit Union has 45 branches with assets totaling $5.8 billion. Fidelity National Information Services, is a provider of core processing for financial institutions, card issuer and transaction processing services.

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Dollar & Thrifty Offer an AmEx Incentive

Dollar Rent A Car and Thrifty Car Rental are awarding customers who rent three or more consecutive days with a free upgrade and a $25 rewards card when paying with their American Express Card. Dollar Rent A Car and Thrifty Car Rental serve value-conscious travelers from more than 1,475 locations in 70 countries. The promotion is effective with 24-hour advance reservations made now through June 30, 2007

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S1’s Postilion and Metavante to Partner

Postilion has announced an alliance naming Metavante a strategic provider of electronic presentment and payment services. Under the agreement, Postilion self-service solutions, in concert with Metavante EPP will offer payment options such as credit and debit card funding for Internet bill pay, along with Metavante Express Payments through same-day electronic processing or overnight check. The new agreement also includes joint marketing initiatives to promote increased adoption and usage of Metavante electronic presentment and payment products. Metavante Corporation delivers banking and payments technologies to 8,600 financial services firms and businesses worldwide. Postilion, a division of S1 Corporation is a leading provider of integrated solutions for self-service banking and payment processing.

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Chockstone Promotes Edmondson to SVP

Chockstone has promoted Marc Edmondson to Senior Vice President, Corporate Development. Edmondson will be responsible for Chockstone’s key partnerships in the financial services, merchant processing, and point-of-sale industries. Additionally, Edmondson will oversee Chockstone’s Receipt and Respond network. Prior to joining Chockstone in 2005, Edmondson served as Vice President and General Manager for First Consumer’s National Bank, where he directed the consumer marketing organization and was responsible for product and business development, strategic planning and portfolio acquisitions. During Edmondson’s four-year tenure, First Consumer’s National Bank’s consumer receivables grew 267%. Chockstone provides personalization, loyalty marketing, and stored value solutions.

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BofA Q1 Card Profits Rise 18% Topping $1B

Bank of America reported that its Card Services division had Q1 revenue of $6.13 billion, an increase of 2% compared to the first quarter of last year and net income rose 18% to $1.15 billion. Managed U.S. consumer and business credit card loans at the end of the first quarter increased 2.5% year-on-year to $146.0 billion. First quarter Card Services charge-offs were 4.81%, compared to 4.57% in the prior quarter and 3.07% one year ago. The managed 30+ day delinquency declined to 5.44%, compared to 5.49% in the fourth quarter and 4.48% for 1Q/06. BofA also reported that its merchant acquiring business handled $82.8 billion in processing volume during the first quarter from total transactions of more than 1.9 billion. Purchase volume for U.S. consumer and business cards was $55.5 billion for 1Q/07 compared to $62.1 billion for 4Q/06 and $53.5 billion for 1Q/06. Debit card income rose 16% to $500 million and purchase volume grew to $43.57 billion for 1Q/07. BofA noted that 11.3 million active bill pay users paid $55.4 billion worth of bills during the first quarter. For complete details on Bank of America’s 1Q/07 performance, visit CardData ([www.carddata.com][1]).

BOFA EOP CARD LOAN HISTORICAL
(U.S. Consumer & Business Cards)
1Q/06: $142.4 billion
2Q/06: $144.1 billion
3Q/06: $145.9 billion
4Q/06: $150.7 billion
1Q/07: $146.0 billion
Source: CardData (www.carddata.com)

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

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CVS Loyalty Card Adds Extra Bucks Now

CVS/pharmacy has introduced “Extra Bucks Now” that delivers immediate payout of Extra Bucks tied to special offers on customers’ receipts. “Extra Bucks” are like free “CVS money” that customers can use to purchase almost any non-prescription item at CVS/pharmacy. There are two ways consumers can earn Extra Bucks: through special Extra Bucks offers and quarterly spending. CVS/pharmacy also expanded the “personal shopping” capabilities of its rewards program to make product recommendations and offer special coupons tailored to fit each shopper’s individual interests through personalized email, direct mail, and register receipts. CVS’ ExtraCare program is now in its sixth year and is the largest consumer rewards program, with more than 50 million cardholders. CVS/pharmacy is the retail division of CVS/Caremark Corporation and is America’s largest retail pharmacy with approximately 6,200 retail locations.

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Paypal’s Total Payment Volume Soars by 30%

eBay reported that PayPal had 143.3 million total accounts at the end of the first quarter, a 36% increase from one-year ago. Total payment volume rose 30% to a record $11.4 billion which includes payments initiated through the PayPal system but excludes its payment gateway business. The number of active accounts hit 35.7 million as of March 31st, its highest level to-date. During the first quarter, PayPal handled 177.0 million payments, a 3% increase over the prior quarter, and up 19% from 1Q/06. PayPal’s 1Q/07 transaction revenue rate increased to 3.69% from 3.66% in the prior quarter. The processing expense rate for the first quarter was 1.09%, compared to 1.04% for 1Q/06. PayPal’s transaction loss rate came in at 32 basis points, up 3 basis points from one-year ago. PayPal Merchant Services posted a record $4.38 billion to the $11.36 billion in global TPV in the first quarter, representing a 51% increase from the year ago quarter. For complete details on eBay/PayPal’s first quarter performance, visit CardData ([www.carddata.com][1]).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
1Q/06: $ 8.8 billion 105.0 million
2Q/06: $ 8.9 billion 113.7 million
3Q/06: $ 9.1 billion 122.5 million
4Q/06: $11.0 billion 133.0 million
1Q/07: $11.4 billion 143.3 million
SOURCE: CardData (www.carddata.com)

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

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Fair Isaac to Post Lower Q1 Results

Fair Isaac expects to report second quarter revenues in the range of $200 to $202 million in second quarter of fiscal 2007 versus $208.2 million reported in the prior year period. This is lower than the second quarter revenue guidance of $215 million provided by the company last quarter. Net income for the second quarter of fiscal 2007 is expected to total in the range of $20 to $22 million, or $0.35 to $0.37 per diluted share, versus $27.0 million, or $0.40 per diluted share, reported in the prior year period. This is lower than the second quarter GAAP earnings per diluted share guidance of $0.48 provided last quarter.

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Americans Pessimistic About Personal Finances

A new survey found that Americans are more pessimistic about their personal level of financial security. The “COUNTRY Financial Security Index” fell to 69.4 in April, down from 70.2 in February. Rasmussen Reports says the decline was tied to greater concerns about finances and debt and to a drop in confidence in the ability to protect assets. However, it was somewhat offset by stability around retirement and education savings. Those who indicated they are not confident in their ability to pay all their debts as they come due increased two points to 18%. The Index is sponsored by COUNTRY Insurance & Financial Services.

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