First Tennessee Renews the TSYS Contract

TSYS has inked a multi-year extension to its processing agreement with First Tennessee Bank, a client since 1995, to provide multi-card processing services for FTB’s consumer credit, debit and commercial portfolios. TSYS also provides portfolio and risk management tools to First Tennessee, a client since 1995. TSYS brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe.

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Retail Card Volume Running 10% Over Estimates

Retail volume charged to major credit cards, signature debit cards, and store credit cards is running nearly 10% over projected levels for this year. For the three weeks ending December 12th, overall retail payment card volume has topped $70 billion, compared to an estimated $64 billion for the 2004 season. Debit cards continue to lead the charge, running about 14% over projected volume. Store credit cards are up 1% to $9.7 billion in retail volume for the holiday period, while credit cards are up more than 10% to $47 billion. According to VISA’s “SpendTrak” report, overall retail volume on VISA-branded payment cards for last week was $11.0 billion, an 8.9% increase over last year. MasterCard says its cumulative growth in global transactions for the season, to-date, is 9.8%.

Holiday Card Volume
(three weeks ending 12/12)
Projected Actual Difference
Credit: $42.6 billion $47.0 billion +10.3%
Debit: $12.2 billion $13.9 billion +13.9%
Store: $9.6 billion $ 9.7 billion + 1.0%
TOTAL $64.4 billion $70.6 billion + 9.6%
Source: CardData (www.carddata.com)

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Citibank Becomes AmEx’s 2nd U.S. Issuing Partner

American Express has reached an agreement for Citibank to issue credit cards in the United States that will be accepted on the American Express global merchant network. American Express anticipates that the new credit card products developed by Citibank will be available in late 2005.

Citibank will be responsible for issuing the cards, managing the customer relationships, providing service, billing and credit management and designing the card product features.

American Express will process transactions on its global merchant network. Financial terms of the agreement were not disclosed. iiAs one of the world™s most prestigious financial institutions, Citibank is a tremendous addition to the American Express network,ls said Kenneth I. Chenault, Chairman and CEO of American Express. ixWe are committed to working with outstanding partners like Citibank and the premiere customer experience they provide.le

About American Express

American Express Company is a diversified worldwide travel, financial and network services company. Founded in 1850, it is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking. American Express has established 85 card-issuing alliances in 95 countries.

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Banco de Credito to Deploy NCR Personas ATMs

Banco de Credito del Peru has signed a $7.5 million deal with NCR to install “Personas” ATMs, and upgrades for the bank’s existing installed base of ATMs. The deployment will cover ATMs nationwide in Peru as well as in Bolivia. Banco del Credito Peru currently
has more than 550 ATMs in Peru. The bank will create and manage marketing and advertising campaigns across its ATM network using NCR’s “APTRA Promote” software. Banco de Credito del Peru will also use self-service management software from NCR’s Gasper.

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Fiserv Lands Former TowerGroup CEO

Fiserv has hired Mark Sievewright, former president and CEO of TowerGroup, as SVP of business development. In his new role, Sievewright will use his broad experience in anticipating the direction of the financial services industry to help Fiserv better understand the future needs of clients, said Dean Schmelzer, Fiserv’s group president of marketing and sales. Fiserv, Inc. provides information management systems and services to the financial industry, including transaction processing, outsourcing, business process outsourcing and software and systems solutions. The company serves more than 15,000 clients worldwide, including banks, broker-dealers, credit unions, financial planners/investment advisers, insurance companies and agents, self-funded employers, lenders and savings institutions.

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Providian Charge-Offs Tick Up but Down 522bps YTD

Losses for Providian’s credit card ABS inched up by 3 basis points in November, however, delinquency edged down by 21 basis points. On a managed basis, the issuer’s charge-off ratio climbed 31 basis points and the delinquency ratio declined by 1 basis point. Since the start of this year, delinquency has collapsed by 321 basis points, and charge-offs have declined 522 basis points for the issuer’s card bonds. Charge-offs increased to 12.14% in November, compared to 12.11% during October. One-year ago, Providian’s securitized charge-off ratio stood at 16.16%. Delinquency ticked down to 8.27% during November compared to 8.48% during October. One-year ago, Providian’s securitized delinquency ratio stood at 12.27%. Providian’s managed charge-offs for November was 10.26%, and 30+ day delinquency stood at 6.34%. For complete details on Providian’s latest performance, visit CardData ([www.carddata.com][1]).

PROVIDIAN MONTHLY ABS METRICS
Month Charge-Offs Delinquency
Jan 04 17.36% 11.48%
Feb 04 16.08% 11.07%
Mar 04 17.17% 9.56%
Apr 04 15.84% 9.09%
May 04 14.82% 8.68%
Jun 04 14.44% 8.40%
Jul 04 13.17% 8.42%
Aug 04 12.39% 8.37%
Sep 04 12.45% 8.30%
Oct 04 12.11% 8.48%
Nov 04 12.14% 8.27%
Source: CardData(R) (www.carddata.com)

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

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Champion Supermarkets to Install Optevas

Carrefour Group, the largest retailer in Europe, has ordered Diebold’s “Opteva” ATMs for placement in its Champion supermarkets.
About 70 supermarkets will add “Opteva” lobby cash dispensers to their in-store ATM fleet. Champion plans to replace older ATMs with the new Diebold “Optevas.” The “Opteva” family of ATMs, which now includes seven units, was launched in Europe in 2003 in Paris. To date, more than 20,000 “Opteva” ATMs have been purchased. Carrefour Group has more than
1,000 Champion supermarkets in worldwide.

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Intelli-Check Lands the Former Head of Quick Kiosk

NY-based Intelli-Check has hired Todd Liebman, former president of Quick Kiosk, as SVP of marketing and operations. Mr. Liebman was president of Quick Kiosk (QK), a self-service solution provider focusing on the fast-food restaurant market, which he founded in 2000. Mr. Liebman oversaw the development of the QK self-service ordering kiosk, including the hardware and software design, multimedia integration, and integration of the product into a multi-billion dollar quick-serve restaurant environment. Intelli-Check, Inc. is the acknowledged leader in technology that assures the authenticity of driver licenses, state issued non-driver and military identification cards used as proof of identity.

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FSV Promotes its new FLEXAWARD VISA

Houston-based FSV Payment Systems is promoting its new “FLEXAWARD VISA,” a turnkey stored-value card for use in employee incentive and reward programs. The FLEXAWARD program provides an employee recognition solution for all businesses, no matter the size, that is cost-effective and convenient and, most importantly, highly valued by employees. FLEXAWARD is fully deployable and ready for use in an employee recognition and incentive program — complete with instructions, creative marketing ideas, and a variety of packaging options. FSV Payment Systems offers a robust suite of unique, host-based stored-value and payroll debit card solutions direct to large employers and to financial institutions through an exclusive agreement with Fiserv, Inc..

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71% of Canadians to Give/Receive Gift Cards

A new survey has found that seven in ten Canadians considered themselves someone who either receives or gives gift cards. Also, women were more likely than men to consider themselves someone who uses gift cards, and that Canadians between the ages of 18 and 49 were more likely to use gift cards than Canadians over 50 years of age. The findings come from a survey conducted by SES Research on behalf of Givex, which also found that 5% of Canadians said that they spend more or the same value
than what is on their gift card, while 7% said they spend less. The reasons for purchasing gift cards: 63% said that when they decide to purchase a gift card for someone it is because it allows the recipient to choose what they want. Twelve percent said it was because it is convenient for them, while another 6% said that they do not like to give cash. Givex processes gift card and loyalty transactions and provides payment processing gateway services for a wide range of industries including retail, hospitality, grocery and petroleum.

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Migration from V/MC to AmEx Cards Hits Turbulence

There is mounting anecdotal evidence that some MBNA customers are unhappy with being switched from a VISA or MasterCard to an American Express card. Reportedly, MBNA is modifying its marketing approach, specifically migrating from an opt-out to an opt-in offer. It is estimated that MBNA has issued more than 500,000 AmEx-branded cards since its October launch. The New York Times cited an MBNA customer who accused the issuer of “slamming” by switching his VISA card to an AmEx card without his consent. The NYT also cited an alumni association, an affinity partner with MBNA, who said they received complaints from members over the automatic switch to AmEx cards. The negative response from some consumers apparently centers on the merchant acceptance gap between AmEx, VISA, and MasterCard.

U.S. MERCHANT ACCEPTANCE
(as of September 30, 2004)
VISA: 5.6 million
MasterCard: 5.6 million
AmEx: 3.8 million
Discover: 4.4 million
Source: CardData (www.carddata.com)

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