Fiserv Processing/Services Revenues Up 10%

WI-based Fiserv reports that processing and services revenues rose 10% in the third quarter to $925.3 million. Net income for 3Q/05 was $112.9 million, compared to $92.4 million for the year-ago quarter. During the quarter Fiserv acquired BillMatrix, J.W. Hutton and VerticalPoint. Also during the third quarter, Fiserv signed deals with Toyota Credit Canada, Putnam Investments, HSBC Australia, Arab National Bank of Riyadh, Viewpointe Archive Services, Sterling Financial, mBank, Capital Bank, Penn Security Bank & Trust and Progressive Bank. Fiserv has updated its revenue outlook and now expects full year processing and services revenues to be approximately $3.66 billion to $3.68 billion, For complete details on Fiserv’s third quarter performance, visit CardData ([www.carddata.com][1]).

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

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GECF and Shenzhen Development Bank Partner

Shenzhen Development Bank and GE Consumer Finance have entered into a
strategic cooperation agreement to develop consumer finance opportunities
in China. As part of the agreement, GECF will acquire newly issued shares
in SDB valued at US$100 million. In association with the equity
investment, GECF will agree to cooperate with SDB to provide expertise in
retail consumer finance, including management expertise, risk processes,
product development and systems. The transaction is subject to approval by
Chinese regulatory authorities as well as SDB’s shareholders. The consumer
credit industry is in its infancy, currently representing only 15% of the
total lending market in China. SDB has 237 branches and sub-branches nationwide.

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SCA Releases a Contactless Position Paper

The Smart Card Alliance Contactless Payments Council has released a new position paper titled “The What, Who and Why of Contactless Payments” . The paper provides an overview of market developments and explores the technology, benefits and security features of contactless payments. It also explains and defines the correct use of terms to foster a more accurate discussion about the features of contactless technology. The Contactless Payments Council was formed by the Smart Card Alliance to facilitate the adoption of contactless payments in the U.S. through education programs for consumers, merchants and issuers.

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Major Near Field Technology Pilot Launches

The world’s first large scale trial of Royal Philips’ “Near Field Communication” technology is underway in the city of Caen in Normandy, France. According to yesterday’s issue of CardFlash International, a group of 200 Caen residents will use “Samsung D500” mobile phones with an embedded Philips “NFC” chip as a means of secure payment in selected retail stores, parking facilities and famous tourist sites around town in a six-month trial. Philips is working with France Telecom R&D, Orange, Samsung and retailers Groupe LaSer and Vinci Park during the trial. “NFC” was jointly developed by Philips and Sony and is a combination of contactless identification and interconnection technologies that enables wireless short-range communication between mobile devices, consumer electronics, PCs and smart objects.

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GE Money and Doubleday Launch a MasterCard

GE Money Canada and Doubleday Canada have launched a new credit card offering special rewards that can be used toward future book club purchases. The new “Readers Rewards MasterCard” will be offered exclusively to members of Doubleday Canada’s 25 book clubs. Cardholders earn three “Readers Rewards” points for every dollar spent at any of Doubleday’s book clubs and one point for every dollar spent everywhere else MasterCard cards are accepted for payment. For every 1,000 points earned, cardholders will receive a $10 “Readers Rewards” certificate redeemable on any future book club purchase. Cardholders also receive free shipping and handling on every book club order over $39.

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Two More Housewarming AmEx Cards Launched

Boise-based CSMJ Inc., an American Express Incentive Services authorized distributor, launched a new version of its prepaid American Express card that recognizes above-average performance by real estate agents. The “Agent Reward Card” offers recipients rewards from their choice of 90 name-brand retail and travel merchants. CMSJ also introduced “The Rebate Edition Card,” which is designed to incent home buyers and sellers. Both cards are available through theHousewarmingCard.com. In June the “Housewarming Card Platinum Edition” card was introduced, which offers luxury homebuyers access to all of Williams-Sonoma’s stores and catalogs. CMSJ and AmEx previously launched a “Classic” and “Gold” version of the “Housewarming Card.” The “Gold” edition was introduced in December and offers access to more than 180 select merchants. (CF 12/17/04; 6/15/05)

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Get Smart About Credit Day a Success

More than 1,000 volunteer bankers across the country visited colleges, high schools, youth groups and continuing education classes yesterday as part of the American Bankers Association’s “Get Smart About Credit Day” On Get Smart About Credit Day, more than 1,000 volunteer bankers across the country will visit colleges, high schools, youth groups, and continuing education classes to teach students how to budget, use credit cards responsibly and build a positive payment history. This year U.S. Treasury officials are joining bankers in nine cities to teach Get Smart About Credit lessons. The Get Smart About Credit program is sponsored by the American Bankers Association Education Foundation, a non-profit committed to developing and providing education programs that lead to financial literacy.

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Canadian Homeowners Not Consolidating Debt

Nearly two-thirds of Canadian homeowners with household debt surveyed last
month say they have never consolidated what they owe, in contrast to a new
research study for Manulife Bank of Canada that confirms they could save
borrowing costs by combining their debts and short-term assets. More than
a third of those homeowners say they only make minimum payments on their
mortgages, credits cards and other loans, according
to the national poll conducted in late September. A typical Canadian
family, with a residential mortgage, loses an average of $1,000 per year
by not effectively managing their debts and short-term assets. Manulife
Financial is a leading Canadian-based financial services with Cdn$364
billion (US$297 billion) funds under management.

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DRT Launches a Reloadable VISA Gift Card

Pittsburgh-based Direct Response Technologies and GiftCards.com division have launched a reloadable VISA gift card and five new specialty plastics that have a custom greeting card to match The GiftCards.com greeting card package is the first online Visa Debit Gift Card program to launch an “all inclusive plastic and greeting card in one.” Direct Response Technologies, Inc. is a media and technology firm that provides performance-based results and technology solutions to clients.

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Capital One U.S. Q3 Card Profits Rise 16%

Capital One’s third quarter U.S. credit card profits increased 16% year-over-year and rose 11% sequentially. U.S. managed card outstandings declined about $100 million from the second quarter and were essentially flat with the year-ago quarter. Cap One says a $44 million charge related to the Gulf Coast hurricanes and a $75 million loss related to the recent surge in bankruptcy filings dampened the quarter. Overall, Cap One’s earnings of $491.1 million were flat compared to 3Q/04. U.S. card net income was $481.8 million, compared to $432.4 million in the prior quarter and $414.4 million for 3Q/04. U.S. managed card outstandings were $46.3 billion for 3Q/05 compared to $46.1 billion one-year ago and $46.4 billion in the previous quarter. The managed delinquency rate (30+ days) for U.S. credit cards was 3.86% for the third quarter, compared to 3.60% for 2Q/05, and 4.14% for the third quarter of 2004. The net charge-off rate for U.S. credit cards was 4.69% for the third quarter, compared to 4.90% for the second quarter, and 4.86% one-year ago. Total managed loans for 3Q/05 grew 12% year-on-year to $84.8 billion. Capital One and its subsidiaries collectively had 49.2 million accounts as of September 30th. The Company is currently in the process of a merger with Hibernia Corporation which is scheduled to close on November 16. For complete details on Capital One’s third quarter performance, visit CardData ([www.carddata.com][1]).

COF U.S. CARD NET INCOME
3Q/04: $414.4 million
4Q/04: $201.9 million
1Q/05: $458.2 million
2Q/05: $432.4 million
3Q/05: $481.8 million
Source: CardData (www.carddata.com)

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

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