Providian ABS Charge-Offs Fall to 13.17%

Providian’s metrics for its securitized card loans continue to improve as charge-offs marched south for the fourth consecutive month, dropping to 13.17% in July. However, delinquency edged up 2 basis points during July after dropping dramatically in the first quarter. For July, Providian’s securitized delinquency ratio was 8.42%, compared to 8.40% in June. One-year ago Providian’s securitized delinquency ratio stood at 11.96%. Charge-offs edged down to 13.17% in July, compared to 14.44% in June. One-year ago Providian’s securitized charge-off ratio stood at 17.39%. Providian’s managed charge-offs for July were 10.88% and its managed delinquency ratio was 6.35%. For complete details on Providian’s latest performance visit CardData ([www.carddata.com][1]).

[Click here for the 8K filing from the SEC in PDF format.][2]

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%
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com
[2]: http://www.cardweb.com/cardflash/2004/august/providian.pdf

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Pipeline Data Hits Profitability

MA-based Pipeline Data posted its first-ever net profit during the second quarter. Second quarter revenues were $4.0 million a 42% increase over the prior quarter, and a 63% increase over the second quarter of 2003. Net profit for the quarter was $165,078. During the second quarter Pipeline announced plans to expand its Northern Merchant Services call center in St. Lawrence County, NY. The Company also hired Debbie Hoch, formerly with Mellon Bank and Concord EFS, as VP of East Coast Sales for Pipeline’s wholesale merchant processing division. Pipeline says it plans to reinvest its profits towards the growth of Pipeline Data Processing, its wholesale division. Therefore,investors should expect a close to break even cash flow status with considerable top line revenue increases going forward. Pipeline Data currently serves over 10,000 merchant customers. For complete details on Pipeline’s latest performance visit CardData ([www.carddata.com][1]).

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

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AmEx Unloads 5000+ 7-Eleven ATMs

7-Eleven has acquired the ATM portfolio currently deployed in 7-Eleven stores from American Express for approximately $44 million. The purchase involves ATM services offered in 5,483 company-operated, franchised and certain licensed 7-Eleven stores. 7-Eleven says the deal will give them control of the ATMs allowing them to better integrate the service into its overall merchandising efforts within the store. 7-Eleven also said the acquisition will complement its strategy to accelerate growth in the area of financial services.

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MasterCard Invests into Xign

Xign has received an equity investment from MasterCard to enhance initiatives tied to the MasterCard “Corporate Purchasing Card” and the MasterCard “e-P3” electronic payment and information management service. MasterCard’s investment in Xign solidifies a business relationship that began in the fall of 2002. At that time, MasterCard introduced the first electronic payment and information management service fully integrated with the MasterCard Corporate Purchasing Card, MasterCard e-P3, powered by Xign. With MasterCard e-P3, buyers can automatically link electronic purchase orders, invoices, receipt of goods, and other transaction documents with corporate purchasing card transactions, resulting in considerable cost savings and more accounting control. Xign studies of more than 35 Fortune 1000 companies show that Order to Pay automation can deliver millions of dollars in annual savings for every $1 billion in spend.

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MBS Selects DataSecure Platforms

Merchants Billing Services has selected Ingrian “DataSecure Platforms” as an additional layer of security for the privacy and protection of their customers’ credit card data. With Ingrian, MBS cost effectively and securely manages the encryption of sensitive data in application servers and databases, and secures this data as it is being transmitted and stored throughout the enterprise. Ingrian DataSecure Platforms offer intelligent, granular control over what data is protected, they adhere to open standards and are cost effective to deploy, and they deliver comprehensive security capabilities.

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MBNA Delinquency Drops for the Fifth Month

MBNA’s delinquency ratio for consumer credit cards declined for the fifth consecutive month in July. Charge-offs also hit a new low for the year during July, after peaking in May at 4.88%. Charge-offs declined to 4.52% in July, compared to 4.64% in June, and compared to 4.77% in January. Delinquency for consumer credit cards declined to 4.00% during July, compared to 4.10% during June, and compared to 4.34% in January. Consumer credit card outstandings increased $100 million during July, compared to a $900 million gain in the prior month. MBNA’s consumer credit card outstandings peaked in December. As of July 31st, MBNA has $99.5 billion in consumer credit card loans. MBNA recently reported that domestic credit card loans for the second quarter were $81.6 billion. For complete details on MBNA’s second quarter results visit CardData ([www.carddata.com][1])

[Click here for the 8K filing from the SEC in PDF format.][2]

MBNA CONSUMER CREDIT CARD SNAPSHOT
Month Outstandings Charge-offs Delinquency
Jan 04 $103.1b 4.77% 4.34%
Feb 04 $ 99.6b 4.71% 4.49%
Mar 04 $ 99.1b 4.79% 4.27%
Apr 04 $ 98.0b 4.70% 4.21%
May 04 $ 98.5b 4.88% 4.15%
Jun 04 $ 99.4b 4.64% 4.10%
Jul 04 $ 99.5b 4.52% 4.00%
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com
[2]: http://www.cardweb.com/cardflash/2004/august/mbna.pdf

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Global Axcess Net Income Climbs 86%

FL-based Global Axcess reported second quarter revenues of $3.1 million, an 18% jump year-on-year. Net Income climbed 86% to $366,123 compared to 2Q/03. During the second quarter, the Company achieved a record increase in the number of financial institutions who have contracted with under “Branded Cash,” bringing the total to 54 partners, up from 41 at the end of the first quarter. ATMs in operation under its “Branded Cash” program rose from 376 sites to 473. Global Axcess says it is experiencing notable success with its new “ATMS-MADE-EASY” program, introduced in May of this year. Following an initial market test, whereby the Company sold 61 ATM terminals and associated support services to retail merchants, Global Axcess sold 92 additional sites in May and June, bringing the total under the program to 153. For complete details on Global Axcess’ latest performance visit CardData ([www.carddata.com][1]).

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

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Equifax Launches UK Credit Scoring Product

Equifax has launched a credit scoring product in the UK. “Equifax Credit Rating” is part of a portfolio of personal
solutions. In September 2003, Equifax launched its Personal Solutions group in the U.K., and currently offers Personal Solutions products in the U.S., Canada and Latin America. “Equifax Credit Rating” uses data analysis and decisioning technology to provide U.K. consumers with instant access to their Equifax credit report and credit score.

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NBS Technologies Acquires UbiQ

Toronto-based NBS Technologies has entered into a definitive
agreement to acquire UbiQ. UbiQ, based in Minneapolis, Minnesota, is a privately held software development company dedicated to the smart card industry. Under the terms of the proposed transaction, NBS will issue a
combination of cash and common shares to holders of equity interests of
UbiQ in exchange for all of the issued and outstanding shares of UbiQ.
NBS Technologies is a provider of card personalization, secure
identity solutions, and point of sale transaction services for financial
institutions, governments, and corporations worldwide.

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ANSHIN & JCB

After signing a license agreement with JCB International in April, AnShin Card Services has launched its first JCB co-branded credit card. The new “AnShin MMA Eastern Home Shopping Network JCB” offers exclusive discount pricing, cash back premiums, and other benefits available at Eastern Home Shopping Network’s TV shopping as well as access to AnShin Card Services’ “Money Management Account.” Cardholders will also receive a waiver of annual fees for the first year, and a special introductory interest rate. JCB expects AnShin Card Services to issue more than 150,000 cards in the first year. AnShin Card
Services is the latest of 31 companies issuing the JCB card in Taiwan,
under the National Credit Card Center umbrella, the Taiwanese mega
credit card processing center. JCB merchant network includes 11.7
million merchants. JCB has 51.6 million cardholders.

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