MS CARDS 3Q/04

Morgan Stanley reported that credit card outstandings for its British MasterCards increased 7% during the quarter ending August 31st. The
number of accounts for its “Classic,” “Gold,” “Platinum,” and “buy &
fly!” cards rose 9% to 1.2 million, compared to one-year ago.
At the end of the quarter, Morgan Stanley, which issues the Discover card in the USA, posted $2.337 billion in managed card loans, compared to $2.180 billion for the third quarter of 2003. However, compared to the prior two quarters, card loans declined. In the prior quarter, MS reported $2.409 billion in managed card loans, and $2.463 billion in managed card loans for the first quarter of this year. Morgan Stanley recently added the “buy and fly! MasterCard” which earns one point for every GBP10 of purchases with bonus points earned for purchases made at participating U.K. retail merchant partners. Points can be redeemed for travel on 17 airlines. MS introduced its first credit card in the U.K. in 1999. For complete details on Morgan Stanley’s latest performance visit CardData (www.carddata.com).

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Global Payments Revenues Climb 41% in Q3

Atlanta-based Global Payments reported that revenues grew 41% to $193 million during the quarter ending August 31st. Net income for the quarter grew 53% to $24.2 million, compared to one-year ago. The growth was fueled by its recent DolEx and MUZO acquisitions which produced more than $31 million in quarterly revenues. GPN also says the strong growth in its core domestic direct channel was driven by solid transaction growth and a continued increase in pricing spreads. As a result, the Company raised its annual revenue guidance from the previous range of $722-$743 million to a revised range of $737-$758 million versus $629 million in fiscal 2004, a growth of 17% to 21%. During the quarter, GPN acquired the remaining 49% interest in the “Cash & Win” service from Comerica Bank. “Cash & Win” provides credit and debit card cash advance service to patrons of the gaming industry. For complete details on GPN’s latest performance visit CardData ([www.carddata.com][1]).

GPN REVENUE HISTORICAL 3Q/03: $137 million 4Q/03: $148 million 1Q/04: $163 million 2Q/04: $182 million 3Q/04: $193 million Source: CardData ([www.carddata.com][2])

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

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SDCR Joins Lynk Systems’ OneLynk Alliance

San Diego-based SDCR, a major reseller of Radiant Systems’ “Aloha POS” solutions, has joined Lynk Systems’ “OneLynk Alliance” VAR. Along with Lynk’s electronic payment processing, Aloha POS software provides fast and easy transaction processing and eliminates the expense of separate equipment and payment terminals. SDCR joined the OneLynk Alliance to leverage Lynk’s services in order to provide faster processing at a reduced cost. SDCR Business Systems is a chief provider of POS solutions for operators in industries such as grocery, hospitality, retail, and foodservice. Lynk provides electronic payment processing services and is considered to be the 6th largest non-bank acquirer, the 9th largest merchant acquirer in the U.S. market, and the 3rd largest processor of ATMs in the U.S.

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Authorize.Net Gets Hit with a DDoS Attack

Update on DDoS Attacks Against Authorize.Net

September 22, 2004 12:30 PM PDT

Authorize.Net continues to experience intermittent distributed denial of service (DDoS) attacks. Our system engineers have successfully minimized the impact of each attack and have quickly restored services to affected merchants. Industry experts are onsite and working with Authorize.Net to expedite a resolution. Please be aware that the stability and reliability of the Authorize.Net platform remains our top priority; and we are doing everything we can to restore and maintain secure transaction processing despite these unforeseen attacks.

Due to an increased number of calls, our Customer Support center may experience longer than average hold times. We apologize for any inconvenience and appreciate your patience while we continue to remedy this situation.

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BC Card to Enter Chinese Market in 2005

BC Card, Hana Bank, and China Union Pay have inked a deal to honor each other’s cards. As a result, BC Card will become the first South Korean issuer to enter the Chinese credit card market. China Union Pay cardholders will be able to use their cards for cash advances and purchases on credit as of February 2005. During the second half of 2005 BC Card members will be able use China Union Pay’s credit card service.
About 16 million of BC Card’s 26 million cardholders can currently use their VISA-, MasterCard-, or JCB-branded credit cards in China. The new agreement will open acceptance in China to 10 million other BC Card users.

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#6 Issuer Becomes #2 Independent Auto Lender

Seeking to expand its consumer finance business in a mature credit card market, the nation’s sixth largest issuer has acquired a major auto loan originator. Capital One Financial is buying Onyx Acceptance Corporation for $191 million in cash. The acquisition will enable Cap One to combine Capital One Auto Finance, which provides auto finance through dealers and direct to consumers, with Onyx which has extensive dealer relationships in California. Ranked by annual originations, the deal makes Capital One the second largest independent auto lender in the USA. Capital One moved into the auto finance business in October 2001 when it acquired PeopleFirst Finance for $150 million. (CF Library 9/24/01; 6/30/03)

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OTI to Acquire ASEC Spolka Akcyjna

Krakow-based Nextel Spolka Akcyjna has agreed to sell its ASEC Spolka Akcyjna business to On Track Innovations. ASEC is a software company that provides complimentary solutions to OTI in the form of software and back office systems for mass transit ticketing and Payment solutions. The acquisition of ASEC will enable OTI to provide the required local support service for programs in the emerging European markets and will better position OTI to also provide complete solutions in these markets for its petroleum and smart ID solutions. ASEC has been
working with OTI on various programs in Poland. In exchange for all of the outstanding shares of the capital stock of ASEC, OTI will issue to Nextel S.A. OTI ordinary shares having an aggregate market value of between $1.6 million and $1.95 million.

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University of Toronto Student Wins an ICMA Award

The International Card Manufacturers Association has named a senior and chemical engineering major at the University of Toronto as the winner of this year’s “ICMA Technology Scholarship.” In addition to her schooling, Diana Semjonov was employed this past summer at Canadian Bank Note Company, an ICMA member-company based in Ottawa. In its fifth year, the “ICMA Technology Scholarship” recognizes qualified candidates specializing in a technology-related field of study. ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants, with more than 200 members globally.

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Dione Launches a New Smart Card Platform

Dione is introducing a unified technology platform that will
form the basis of a brand new suite of highly secure smart card
transaction devices. The new “SecuraCell” platform is designed to comply with, “APACS Common Criteria” (EAL4+), “EMV” Level 1 and 2, “Interpay,”
“VISA PED” and “ZKA.” The “SecuraCell” module is a tamper responsive unit containing the crucial electronics that provide the core device functionality. Dione will introduce a range of integrated counter top terminals, PIN pads and vending machine iterations under the new “Secura” product brand at Cartes 2004.

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An Early Intervention Program is Working

MN-based The Credit Card Project, funded by Target Financial, U.S. Bancorp, and Wells Fargo, says its initial credit education campaigns for college students and “at risk” credit consumers is paying-off, especially for college students. Credit education campaigns with college students resulted in cardholders making larger, on-time monthly payments, and a decrease in late and over-limit fees. The “What’s My Score” campaign was initially launched at two Minnesota universities during the first week of March. The 10-week campaign was designed to communicate the importance of a good credit score with print ads focused on issues important and relevant to college students.

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UMC Develops Embedded EEPROM for Smart Cards

Hsinchu-based UMC has developed its first true embedded EEPROM
based on UMC 0.25um logic and mixed-signal platform. The embedded EEPROM
targets mobile SIM cards, debit cards, credit cards, ID cards, USB ID keys or any other application where secure identification is required and information needs to be updated and programmed frequently. The EEPROM IP offering by UMC features both page and byte re-writable capability. These EEPROM IPs exhibit very low power characteristics, allowing them to be used for both contact and also contact-less smart cards that need only come into close proximity of the card reader for transactions to be recorded. UMC manufactures advanced process ICs for applications spanning every major sector of the semiconductor industry.

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