BofA Prices $1.75B ABS at Libor +1BPS

Bank of America’s FIA Card Services (f/k/a MBNA America Bank) priced an offering of $1.75 billion in credit card asset-backed notes from the BA Credit Card Trust at one basis point over the one-month LIBOR. This offering, scheduled to close on August 30, 2006, was lead managed by Banc of America Securities LLC and co-managed by ABN AMRO Incorporated, Barclays Capital, Merrill Lynch & Co. and RBS Greenwich Capital. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates.

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Meta Payment Systems Hires a FSV Executive

SD-based Meta Payment Systems has named John Hagy, formerly with FSV Payment Systems, as Chief Risk Officer and General Counsel. Mr. Hagy came to Meta from FSV Payment Systems in Houston, Texas, where he served as Chief Administrative Officer and General Counsel for over seven years. While in that position, Mr. Hagy directed the compliance and regulatory efforts of FSV and managed due diligence and corporate legal matters. MetaBank is a federally-chartered savings bank headquartered in Storm Lake, Iowa. Meta Financial Group, Inc.(R) is the bank holding company for MetaBank, MetaBank West Central, Meta Payment Systems(R), and Meta Trust Company(R).

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Merchant Acquiring Dominated by Big 5

A new report estimates that two trillion transactions will be processed by merchant acquirers worldwide this year. In the U.S. the merchant acquiring business is dominated by five powerhouse processors focused around three different business models: joint venture; acquisition; and organic growth. Sharing over 90% of the U.S. transaction volume, TowerGroup estimates that the volume driven by these merchant acquirers will approach 46 billion transactions in 2006. Given the concentration of large merchant acquirers in the U.S., TowerGroup believes consolidation of key players is unlikely. Instead, growth opportunities are likely to come from competition either between U.S. acquirers or with those outside the U.S.

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Valutec Card Solutions and Shift4 Team

Valutec Card Solutions and Shift4 have launched a certified, high-speed connection to interface Shift4’s “$$$ ON THE NET” customers with Valutec gift cards. This new interface allows Shift4’s $$$ ON THE NET customers to seamlessly accept and process Valutec gift cards directly through their point-of-sale (POS) systems quickly, securely and reliably. Valutec Card Solutions is the leading provider of turnkey gift and loyalty card services to small and mid-market general and specialty retail, restaurant, spa/beauty salon and hospitality merchants. Shift4, a leading developer of secure financial transaction processing software and services, provides secure, web-based, real-time enterprise payment solutions for leaders in the hospitality, retail, foodservices, auto rental and e-commerce markets.

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Encore Capital Hires a WaMu Executive

Encore Capital Group has hired Anthony Riggio, formerly of WaMu/Providian, as its SVP of Business Development and Portfolio Acquisitions. Mr. Riggio joins Encore building on a successful career in the credit card industry. Most recently, Mr. Riggio was Senior Vice President for Business Development and Strategic Partnerships for card services at Washington Mutual (formerly Providian) where he was credited with developing, structuring and negotiating significant business partnerships. Encore Capital Group, Inc. is a systems-driven purchaser and manager of charged-off consumer receivables portfolios.

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Morgan Beaumont STV Card Revenue Falls

FL-based Morgan Beaumont says it will discontinue quarterly conference calls and will distribute financial news releases instead. The prepaid card specialist and owner of the “SIRE Network” reported second calendar quarter revenue of $876,000 compared to $482,000 in the same quarter of 2005. The year-over-year revenue increase is primarily due to an $303,000 increase in telecommunications revenue, $255,000 increase in wholesale revenue and $240,000 decrease in stored value cards. The sequential decline compared to revenue of $1.9 million produced in the second quarter of 2006 resulted from the elimination of unprofitable business lines and the transition of the Company’s telecommunications card business from paper to plastic card. For complete details on Morgan Beaumont’s latest results visit CardData ([www.carddata.com][1]).

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

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CARD USAGE

A new study has found that more than half of urban Chinese consumers use credit or debit cards for shopping, and 84% of
those with credit cards expect their usage to increase or remain the same in the coming year. This is especially true in larger cities such as Beijing where 47% of urban Chinese consumers are increasing their credit card use. The UPS’s second annual survey of China’s growing class of urban consumers also found that 40% of urban Chinese Internet users having tried online shopping. Online purchases for fashion/accessories are up 10% over 2005. Books/music/video is the No. 1 category for online shopping, especially for higher-income households.

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MasterCard Honors Gemalto Combi Cards

Gemalto has won a “Best Vendor Partner Award” for its MasterCard “OneSmart PayPass EMV” contactless combi cards. Gemalto is delivering the cards to two Taiwan banks including Cathay United Bank, one of the top three credit card issuing banks in Taiwan; and Taipei Fubon Bank, Taiwan’s second-largest privately owned bank. The “PayPass EMV Contactless Combi Card” features both a built-in chip and a standard magnetic stripe.

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Triton Systems Names a New VAR Manager

MS-based ATM Manufacturer Triton Systems has promoted Mark Smith to Senior VAR Manager. In his new position Smith will manage Triton’s VAR (Value-Added Reseller) program, which focuses on products for financial institutions such as the FT7000, FT5000XP and RL5000XP. Triton is the largest provider of off-premise ATMs and ATM management software in North America, and has more than 145,000 installations in over 23 countries worldwide.

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NY Governor Vetoes Universal Default Ban

New York Governor George Pataki last week vetoed legislation that banned the use of “universal default” by credit card issuers. Assemblyman Peter Rivera (D-Bronx) said that Pataki abandoned the people of New York in his delusional quest for the White House. Credit card companies were among the largest contributors to the Bush Presidential campaign. In June the New York State legislature passed a bill to prohibit card companies from imposing universal default on cardholders. However, the law would have little effect on national banks and those based out-of-state. More than 90% of bank credit cards issued to New York residents are from out-of-state institutions.

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