TSYS’ Second Quarter Profits Rise 13%

TSYS reported that second quarter profits rose 13% year-on-year to $57.4 million. Revenues for the quarter increased 5% to $429.2 million, compared to 2Q/05. Accounts on file increased to 366.5 million as of June 30th, down 5% from one-year ago. TSYS also reports that stored value accounts rose 31% to 29.3 million. Total consumer accounts on file at the end of the second quarter rose 5% to 241.2 million. TSYS recently reached a long-term agreement with Wachovia to provide core-processing and other related services in support of their re-entry into the consumer credit-card line of business. The processor also reached agreements through TSYS Acquiring Solutions with Delta Payment Solutions and New England Bankcard Association to provide merchant processing services. Additionally, TSYS renewed a long term relationship through TSYS Acquiring Solutions with Heartland Payment Systems. TSYS says it expects total revenues for 2006 to increase between 6% and 8%. Also, that accounts on file at the end of the year will be approximately 395 million to 405 million. For complete details on TSYS second quarter performance, visit CardData ([www.carddata.com][1]).

TSYS REVENUE HISTORICAL
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
Source: CardData (www.carddata.com

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

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BofA + MBNA Profits More Than Double

Bank of America reported that revenue for its global card services unit rose 18% to $5.47 billion. Net income of $1.6 billion was more than double the year ago period. Managed card loans at the end of the second quarter increased 7% year-on-year to $190.1 billion. Second quarter credit card services charge-offs were 3.59%, compared to 2.89% in the prior quarter and 5.20% one year ago. The managed 30+ day delinquency was 4.56%, compared to 4.37% in the first quarter and 4.37% for 2Q/05. BofA also reported that its merchant acquiring business handled $97.2 billion in processing volume during the second quarter from total transactions of 2.0 billion. (BofA now includes consumer finance, international card operations and merchant services in reporting Card Services.) BofA also reported that debit card income grew more than 20% from the second quarter of 2005, as higher checking account volume and the “Keep the Change” program increased usage of debit cards at retail locations. Debit card purchase volume topped a record $42 billion in the quarter, an increase of 22% from the second quarter of last year. For complete details on Bank of America’s 2Q/06 performance, visit CardData ([www.carddata.com][1]).

BOFA/MBNA EOP CARD LOAN HISTORICAL
2Q/05: $176.9 billion
3Q/05: $182.9 billion
4Q/05: $189.4 billion
1Q/06: $184.9 billion
2Q/06: $190.1 billion
Source: CardData (www.carddata.com)

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

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Chase Card Profits Up 61%; Loans Flat

J.P. Morgan Chase reported this morning that second quarter credit card profits rose 61% from one-year ago to $875 million, however net income eased down from the first quarter’s record of $901 million. The high level of profits is driven by continued low bankruptcy losses. End-of-period managed credit card loans were flat at $139.3 billion due to higher customer payment rates. Chase notes that contributing to the higher payment rates are the new minimum payment rules and a higher proportion of customers in rewards-based programs. Second quarter charge volume was $84.4 billion, up 12% from the prior year. Net accounts opened during the second quarter were 24.6 million, including 21 million accounts from the Kohl’s acquisition. Chase also reported that branch sales of credit cards increased by 119% from the prior year and 60% from the prior quarter. Chase had 136.7 million cards issued at the end of the quarter. Merchant processing volume was up 18% to $166.3 billion, compared to 2Q/05. The managed net charge-off rate for the quarter decreased to 3.28%, down from 4.87% in the prior year and up from 2.99% in the prior quarter. The 30-day managed delinquency rate was 3.14%, down from 3.34% in the prior year and up from 3.10% in the prior quarter. For complete details on Chase’s second quarter performance, visit CardData ([www.carddata.com][1]).

JPM CHASE HISTORICAL ($billions)
2Q/05 3Q/05 4Q/05 1Q/06 2Q/06
EOP Outstandings: $137.3 137.6 142.3 134.3 139.3
Charge Volume: $ 75.6 76.4 79.6 74.3 84.4
Source: CardData (www.carddata.com)

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

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Social Assistance Prepaid Cards are Introduced

Mint Technology and FP Financial have teamed to provide the first prepaid financial services product in Canada used to remit recurring social assistance benefits to Canada’s First Nations communities. The “FirstPeoples Prepaid Benefits Card” program will allow
administrators and benefit recipients to take advantage of direct financial savings, convenience and the added safety and security that a traditional credit card offers. Under the program, social assistance
benefits can be remitted monthly onto personalized prepaid cards and
recipients will then be able to have immediate access to funds; withdrawing funds from ATMs and making purchases everywhere traditional credit cards are accepted.

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VendTek’s Now Prepay Enters Agreement

VendTek Systems’ subsidiary Now Prepay Corp. has entered into an agreement
with a marketing company for the sale and distribution of third party gift
cards in Now Prepay’s customers’ national and regional chain retail
locations throughout Canada. Now Prepay’s technology allows the
company’s portfolio of 3rd party gift cards, also know as a gift card
mall, to be activated at Now Prepay retailers. Now Prepay will begin the
roll-out of the gift card mall in August and expects to have close to
1,000 retailers participating by Christmas.

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4Access Orion Terminal is Certified

OMEGA Processing Solutions has Class A certified and launched the “Orion” all-in-one check reader, imager and card solution from 4Access Communications Company. The “Orion” from 4Access Communications is a comprehensive, stand-alone solution for reading and processing checks, credit cards, debit cards, loyalty cards, EBT cards and gift cards. Other services provided by 4Access Communications include the Web-based “Archive and Retrieval System” and the “Terminal Configuration Server.”

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Senate Hearing Draws Heated Testimony

The U.S. Senate Judiciary Committee’s hearing on “Credit Card Interchange Rates: Antitrust Concerns?” drew strong testimony from industry leaders and merchant representatives. MasterCard said any attempt to regulate the electronic payment system would ultimately cost consumers. MasterCard noted that it is a fundamental principle of antitrust law that the free market, not the government, should set prices. The Merchants Payments Coalition said the collective setting of interchange fees represents on-going antitrust violations by the VISA and MasterCard and amounts to a hidden tax on consumers. The The National Retail Federation said Americans pay some of the highest credit card interchange fees in the world, but most consumers don’t even know these fees exist because VISA and MasterCard make it virtually impossible for merchants to tell them.

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Carlson Intros the GoldPoints Plus VISA

Carlson Hotels Worldwide and Bank of America have teamed to launch a co-branded rewards card. The new “goldpoints plus VISA” offers three points for every $1 U.S. spent on purchases. Cardholders will also earn 2,000 bonus points with each qualifying hotel stay at Carlson hotels. Members who book online can also receive 1,000 bonus points. Cardholders who make their first purchase with the card before July 31st will earn 20,000 points, while cardholders making their first purchase anytime after August 1st will earn 10,000 points. Free night stays begin at 15,000 points. Carlson has 900 hotels including Radisson Hotels, Park Plaza Hotels, Country Inns & Suites By Carlson and Park Inn.

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Lipman’s NURIT & Dione POS Receive Certifications

Lipman Electronic Engineering announced that it has received ETSL
and ANZ security approvals in New Zealand for a wide range of the
company’s payment solutions. The approved products include the “NURIT
8100 Secure Multifunction Solution,” “NURIT 8210 Handover Payment
Terminal,” “Dione Secura PIN Pad,” “Dione Secura Integration Modules” and “Dione Xplorer Portable Payment Terminal.” These certifications come from the two major payment processors in New Zealand, and along with prior certifications from APCA, the Australian Payment Clearing Association, enable Lipman to market these payment systems to nearly all banks, processors and acquirers in New Zealand and Australia.

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Fiserv Names a New Corp Controller

WI-based Fiserv has promoted Joseph Gibson to the position of SVP and corporate controller effective August 1st. Gibson replaces Thomas Hirsch, who was promoted to executive vice president and chief financial officer of Fiserv effective July 1, 2006. Gibson joined the corporate finance department of Fiserv in 1999 as manager of financial reporting. Fiserv, Inc., a Fortune 500 company, provides information management systems and services to the financial and health benefits industries.

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Rahaxi is Approved to Sell Hypercom Terminals

Rahaxi Processing Oy. has received the Finnish EMV
certification required to sell Hypercom’s “Optimum T2100” card payment
terminal in Finland, and is commencing product sales immediately.
Rahaxi Processing will be the first distributor of the “T2100” in
Finland. EMV is the standard created by Europay, MasterCard and VISA
International to ensure that all Europay, MasterCard, and VISA branded
smart cards and all smart card reading terminals work together to
deliver global interoperability and enhanced security. Chip and PIN
technology is being implemented in Finland to increase security by using
smart cards in tandem with Personal Identification Numbers (PINs).

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