AirPlus Company Account Launched

AirPlus International has launched its “AirPlus Company Account” in Canada. The “AirPlus Company Account” is a Universal Air Travel Plan- based product enhanced with sophisticated information management systems. The account combines all agency service fees and air transactions on a single, detailed invoice for reconciliation and it is fully compatible with online reservation tools. AirPlus International also intends to introduce its product in Mexico.

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Providian’s Charge-Offs Down Nearly 500bps

Providian’s credit card ABS performance continues to improve as delinquency drops more than 300 basis points, and charge-offs decline nearly 500 basis points since January. Charge-offs continued to march south for the fifth consecutive month, dropping to 12.39% during August. After a one-month uptick, delinquency edged down 5 basis points during August. For August, Providian’s securitized delinquency ratio was 8.37%, compared to 8.42% in July. One-year ago Providian’s securitized delinquency ratio stood at 12.12%. Charge-offs edged down from 13.17% in July, and to 14.44% in June. One-year ago Providian’s securitized charge-off ratio stood at 17.04%. Providian’s managed charge-offs for August were 10.09%, and its managed delinquency ratio was 6.24%. 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%
Source: CardData (www.carddata.com)

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

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Experian Beefs-Up Credit-Based Prospecting

Experian is rolling-out a new credit-based prospecting and account management system. New capabilities include: improved bottom line results by transforming the way lenders gain, analyze and act on consumer intelligence; more efficient data integration and processing to maximize campaign performance; the ability to make better informed decisions with the freshest, most accurate data; and, flexibility to provide customized, easily integrated, innovative solutions. The first phase of the project was launched in April to a select group of clients that use Experian prescreen services. Experian will begin to transition all remaining prescreen and account management clients to the new system in early 2005.

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EMVCO Releases CCD and Set to Release CPA in 2005

The EMV standards organization has released a set of common data definitions and processes, which standardizes common data element content and format for sending chip information between an EMV card and the issuer via the acquirer. When “CCD” is incorporated into a card specification, issuers of multiple branded cards can achieve benefits of a common issuer support system. But, EMVCo says that “CCD” is not a complete card application specification. EMVCo is working to further simplify and streamline chip migration by creating an EMV “Common Payment Application”. “CPA” will be a complete “CCD”-compliant application specification and is scheduled for completion by the first quarter 2005. “CPA” significantly adds to the benefits of “CCD” by completely defining the card risk management controls, all data elements and logic used by the card application, as well as support for EMV “CPS” card personalization as an issuer option. The result is one common “CCD”-compliant payment application that can be personalized to support multiple payment brands. This will allow issuers to support multiple payment brands or utilize the benefits of multiple vendors for their chip cards without impacting their card management systems, their risk management controls and personalization systems. The end result is significant cost and time saving for multiple brand issuers. Both MasterCard International and VISA International have committed to endorse and accept the CPA specification as implemented in future chip card applications.

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AXALTO 1H/04

Smart card specialist, Axalto, reported that profits for its financial card segment rose 72% during the first six months of this year to $23.3 million. Overall, microprocessor cards sales rose by 35% in volumes to 36 million units, driven by the UK migration to the EMV standard. Microprocessor financial cards revenue also increased in the Americas, where Axalto continued its selective withdrawal from the magnetic-stripe cards business. Revenue in the financial cards segment came in at $97.4 million, an increase of 25% compared with the first half of 2003, or 14% at constant exchange rates. Overall, Axalto revenue reached $430 million, a 28% growth compared with the same period last year. The Company also posted a very sharp improvement in overall profitability, with an operating profit of $28 million, more than five times the level seen in the year-earlier period, and a net profit of $20.5 million.

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Welcome XLS and Aconite EMV Solutions Combined

Welcome has partnered with international smart card solutions provider, Aconite, to deliver value added payment solutions to banks, financial institutions and merchants by combining Welcome’s “XLS” and Aconite’s EMV solutions. Welcome’s “XLS” software enhances the EMV payment function with customer-centric features, such as instant delivery of surprise offers and welcome gifts, immediate calculation of points or cash back, and easy redemption of rewards at the point of sale. Aconite’s EMV transaction authorization and dynamic risk management solutions are designed to be integrated into a bank’s existing card management and transaction processing systems, at a much lower cost and faster time to market than traditional solutions.

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I-S-Cubed Tests ATM RKL Management Using Paragon Tool

Paragon Application Systems has developed a custom key-injection testing tool for I-S-Cubed which they successfully used to test the accuracy of the end-to-end remote key loading process initiated by iS3’s “SecureOMS” automated key management system. SecureOMS is the world’s first server-based security system that provides centralized security management for cryptographic keys, PINs, and devices. Paragon’s application allows I-S-Cubed to test its solution accurately while providing verifiable results in a realistic test environment. Paragon Application Systems provides ATM and EFT configuration, simulation, and testing software. Over 150 financial institutions in over 25 countries use Paragon’s software to improve quality and reduce time-to-market. I-S-Cubed, Inc. provides secure cryptographic key management solutions for network-connected devices in the financial services, retail, and enterprise markets.

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