ATM REPORT

Last year the ATM market in central and eastern Europe grew by 26%,
reaching a total of 68,904 deployments. Over two thirds of the region’s
installed base is in the big three markets of Russia, the Ukraine and
Poland and together with Romania and Bulgaria, these countries
accounted for over 90% of the growth in the region’s installed base
during 2005. The study by Retail Banking Research also found that NCR
remains the largest ATM supplier in the region. In 2002 Russia regained
its position as CEE’s largest ATM market, a position it last held in
1998. It now has 27,640 machines. The Ukraine has been in second place
since 2004, now with an installed base of 10,565 terminals. Between 1998
and 2002, Poland was the largest ATM market in the region but it has now
fallen to third with 8,815 installations. For the fifth year running,
the Russian market showed the largest absolute growth, adding over 7,500
machines to its installed base in 2005, over half the growth for the
region overall. The Ukraine saw almost 2,500 new installations. Retail
Banking Research was founded in 1979 and is a strategic research and
consulting firm.

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Variable Card APRs Top 16% Per Annum

In the wake of the Fed’s decision last week to raise short-term interest rates, increased credit card interest rates will show up in many credit card statements later this month and nearly all variable rates by June 30th. Since the Fed started tightening rates in July 2004, the average variable credit card interest rate has soared from 11.58% to 16.02%, according to CardTrak (www.cardtrak.com). More than 82% of credit card accounts now carry variable interest rate structures. Most of the top issuers charge at least nine points over the prime rate for standard accounts which means a return to 17%-18% APRs. Cardholders forced to pay the issuer’s highest rate, or punitive rate, are now facing interest rates above 30%. When the Fed was chopping interest rates between 2001 and 2003, the prime rate fell more than 400 basis points from about 8% to 4%, however, credit cardholders only realized a rate reduction of about 200 basis points. Ironically, during the current tightening the prime rate has increased 400 basis points and credit cardholders have watched their cards increase by at least 400 basis points.

CREDIT CARD INTEREST RATES
Month Prime Fixed Variable
May 04 4.00% 12.64% 11.58%
Jun 04 4.00% 12.69% 11.61%
Jul 04 4.25% 12.79% 11.73%
Aug 04 4.50% 12.85% 11.89%
Sep 04 4.75% 12.88% 12.11%
Oct 04 4.75% 13.00% 12.19%
Nov 04 5.00% 13.04% 12.37%
Dec 04 5.25% 13.09% 12.49%
Jan 05 5.25% 13.22% 12.67%
Feb 05 5.50% 13.25% 12.84%
Mar 05 5.75% 13.32% 13.08%
Apr 05 5.75% 13.39% 13.17%
May 05 6.00% 13.48% 13.45%
Jun 05 6.00% 13.59% 13.61%
Jul 05 6.25% 13.64% 13.84%
Aug 05 6.50% 13.76% 14.24%
Sep 05 6.75% 13.80% 14.49%
Oct 05 6.75% 13.87% 14.64%
Nov 05 7.00% 13.91% 14.89%
Dec 05 7.25% 13.93% 15.20%
Jan 06 7.50% 14.08% 15.53%
Feb 06 7.50% 14.11% 15.75%
Mar 06 7.75% 14.15% 15.81%
Apr 06 7.75% 14.19% 15.99%
May 06 8.00% 14.23% 16.02%
Source: CardTrak (www.cardtrak.com)

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Global Travel Limited Accepts UATP Corporate Cards

Global Travel is now accepting all “Universal Air Travel Plan”
cards in the global network. Global Travel will settle all UATP
transactions through “UATP Settlement Services,” a low-cost, weekly
settlement system that matches fees and air tickets electronically,
allowing for easy reconciliation of accounts for travel agents and their
customers for non-clearinghouse transactions. UATP accounts are
accepted as a form of payment for corporate business travel by airlines
and travel agencies worldwide.

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MBI Benefits Card Exceeds 1.8MM Users

Metavante has inked several long-term deals with third-party administrator clients for the “MBI Benefits” debit card and the company’s integrated cash management and healthcare payment platform. The 2006 renewals include: Benefit Strategies, Flexible Corporate Plans, Hirsch Financial Services, Key Benefit Administrators, Nyhart/Alliance Benefit Group of Indiana, Total Administrative Services, Discovery Benefits and ProcessWorks. To-date, 19,000 employers have chosen the “MBI Benefits Card” for their employees, resulting in more than 1.8 million cards in use. Metavante Healthcare Payments offers a consumer-directed health benefits payment platform plus an employee benefits card that electronically accesses FSAs, HRAs, health savings accounts, transit/parking accounts and dependent care accounts.

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Direct Debit Makes Strides in Europe

While the credit card remains the single most important payment method for UK consumers and for shoppers from outside Europe doing online purchases, electronic direct debit dominates the payment method in Germany and the rest of Europe. Last year, direct debit transactions made up nearly 61% of payments in Germany and 23% in the rest of Europe, excluding the UK and Non-European countries. According to a new report from Pago the growth in the percentage of telecommunications transactions has led to an increase in electronic direct debit transactions in Germany. Pago found that German consumers still buy predominantly in German shops while consumers from the rest of Europe prefer buying from British online merchants and Non-European consumers use German shops as seldom as German consumers shop at Non-German shops. Pago also found that male consumers made up 66.71% of online consumers and females accounted for 33.29%.

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Trintech Forms the Financial Services Group

Dallas and Dublin-based Trintech has formed the “Financial Services Group” to provide next-generation account reconciliation and enterprise-wide positive pay solutions to financial institutions for the provision of the same to their small business, middle market and large corporate clients. Trintech Group is a provider of transaction reconciliation and payment infrastructure solutions.

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HSBC to Deploy Experian-Scorex Globally

HSBC will use the “Strategy Management” business rules engine from “Experian-Scorex” to support lending decisions around the world.
“Strategy Management” is a software solution that provides the business
user with the ability to consistently deploy scoring models, portfolio
segmentation, decisions and actions to control and manage customer
relationships and improve risk management decisions. Initially, HSBC
will implement the “Strategy Management” business rules
engine into its new business processing environment for 22 countries,
replacing the existing decisioning technology, before extending it
across its global operations.

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Experian Intros a Prospecting Solution

Experian has introduced “Prospectvue”, a prospecting solution allowing multi-channel retailers to target and connect with their best customers and prospects by reducing campaign cycle times, providing greater insight to make more profitable selections and improving communications and accurate measurement of responsiveness across the campaign process. Prospectvue increases marketers’ effectiveness in targeting their most profitable customers and prospects by creating a greater understanding of consumer behaviors and responses. Prospectvue gives marketers direct access to Experian’s INSOURCE database housing more than 215 million consumer records.

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TransFirst and Gateway Integrate Solutions

Dallas-based TransFirst Health Services and St. Louis-based Gateway EDI have teamed to integrate the TransFirst “Transaction Central” system with the Gateway “EDI” portal to offer health care clients with a payment processing tool. The new service combines TransFirst’s processing capabilities for credit card and ACH, manual and automatic recurring payments, and custom reports with Gateway EDI’s web-based health care transaction processing and sophisticated new technology that flags rejected claims. The partners plan on working with Gateway EDI’s impressive list of vendor partners to arrange full integration into practice management systems.

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MC Unveils a New Priceless Spot Tonight

MasterCard is rolling-out a new “Priceless” TV spot tonight for its “World MasterCard” product, a hybrid credit card and charge card combo. The new 30-sec ad, entitled “Great Lady Golfer,” will debut during the season finale of ABC’s “Grey’s Anatomy.” Rather than showing a series of purchases that lead to a “Priceless” moment, the new spot opens with a “Priceless” moment and shows how it leads to a series of related purchases. The spot will run through the end of September and will include print executions later this year, and will be integrated into www.priceless.com. McCann Erickson New York is handling the creative for the new ad campaign. The new ad follows last year’s “Priceless” spot, entitled “Candy Store,” that focused on the unique rewards platform of “World MasterCard” that enables cardholders to choose their own rewards based on their own life priorities.

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Two-Month Old VantageScore Gets Traction

TransUnion has signed CGI-AMS and Magnum Communications as the first vendors to complete acceptance programming for “VantageScore.” The Company introduced the new product two months ago which leverages a consistent scoring methodology across all three national credit reporting companies. TransUnion says the score is unprecedented in that it looks at and analyzes data at the same point in time on the same consumer records from all three national credit reporting companies. “VantageScore” was developed using a national sample of anonymous credit information of approximately 15 million consumers. Using “VantageScore” in combination with a customer’s own portfolio and historical data from TransUnion’s proprietary database, TransUnion’s implementation team can “re-score” a customer’s entire portfolio and then track the results up to the current reporting period. Those results can then be compared against the results obtained from the incumbent model.

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Bankruptcy Concern Names a New President

The American Bankruptcy Institute has named Reginald Jackson of OH-based Vorys, Sater, Seymour and Pease as its President. Jackson has been an ABI member since 1992, has served on the 60-member ABI Board of Directors since 2002 and the Executive Committee since 2003. He has acted as the Executive Editor of the ABI Journal since March 2002. He is a member of the Columbus Bar Association, and served on the Board of Governors from 1998-2002 and as the chairman of its Bankruptcy Committee from 1990-92.

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