NCR PRESIDENT

NCR Corporation announced that Glen Fukushima has been named co-president of NCR Japan. He will serve with co-president Hideki Hosoi. Fukushima has also been named to NCR Japan’s board of directors. Fukushima joins NCR Japan from Cadence Design Systems, Inc. where he
served as chairman, president and chief executive officer of the
software company’s business operations in Japan. Prior to that, he was
corporate vice president of the global management consulting firm Arthur
D. Little, Inc. and president of its Japan organization.

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ReD Hires a New Business Development Director

NJ-based Retail Decisions has hired Phaedra Saylor, formerly of CyberSource, as Director of Business Development. Saylor’s role will consist of developing and managing strategic partnerships and reseller channels throughout North America. etail Decisions (ReD) is an international electronic payment transaction services business that provides fraud prevention, enterprise-wide payment processing and value-added transaction and consulting services to the retail, finance, telecommunications and e-commerce sectors.

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MasterCard Global Volume Up 9% in Q2

MasterCard International reported second quarter worldwide gross dollar volume (purchases + cash ) of $349.0 billion, an increase of 9.2% over the second quarter of last year. Total purchases on MasterCard credit and off-line debit cards rose 11.7% in the second quarter, with each region, except the USA, reporting double-digit growth. Purchase volume in South Asia/Middle East/Africa increased 29%, and Latin America rose 27%. In Europe purchase volume rose 13%, compared to 9% in the USA and 15% in Canada. In Asia-Pacific, where total gross dollar volume only grew 3%, purchase volume was up nearly 16%. GDV for worldwide credit and charge programs grew 10.6% to $285.9 billion, and GDV for offline debit programs rose 0.4% to $63.1 billion over the same period in 2003. Gross transactions for credit and offline debit programs increased by 10% in 2004 compared to the second quarter in 2003. MasterCard’s almost 25,000 customer financial institutions around the world had issued more than 638.3 million MasterCard-branded cards, a 5.3% increase over the second quarter of 2003.

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GE Buys Dilliard’s Store Card Portfolio

Dillard’s is unloading its private label credit card issuing bank for approximately $1.25 billion after it came under scrutiny in November by the OCC over liquidity issues. GE Consumer Finance is purchasing substantially all of the assets of Dillard National Bank, which includes about $1.3 billion in credit card outstandings and more than 20 million cards. The deal includes the assumption of $400 million of securitization liabilities, the purchase of owned accounts receivable, and an undisclosed premium. As part of the agreement, the two companies also signed a 10-year agreement and long-term marketing and servicing alliance that will provide credit marketing and analytic support, credit servicing and customer care for Dillard’s 5.5 million active proprietary retail cardholders. GE will also absorb approximately 500 employees of Dillard National Bank. Dillard’s operates 329 stores in 29 states, primarily in the Southwest, Southeast and Midwest. Its private-label program is the sixth-largest in-house card program in the nation. The acquisition is expected to be completed before the end of the year.

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MBNA OTTAWA

MBNA Canada Bank has expanded its operations in the Ottawa-Gatineau area with the purchase of the 122,000-square-foot, former Gloucester City Hall building. The eight-story facility is adjacent to MBNA Canada’s existing headquarters building. Ottawa city council approved the sale of the building to MBNA Canada in late 2003.
MBNA Canada, a schedule II chartered bank, started business in
Canada in 1997.

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UK Online Card Payments Grow Five-Fold

A new British survey has found that 22 million Internet users either purchase or bank online, with half of them doing both. The average number of purchases per year, per online shopper, has grown sharply, from 6.5 in 2000 to 7.8 in 2001, 9.4 in 2002, and 11.2 last year. According to the London-based Association for Payment Clearing Services, the number of credit card payments made online has increased five-fold since 1999, with 10% of all credit card payments now taking place online compared to just 2% five years ago. More than six million or 20% of all credit card holders viewed their statements online during the second half of 2003. The new APACS data also shows Britons’ rising dependence on the Internet for more than just information with almost 13 million customers using Internet banking in 2003.

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iPayment Sued Over Initial Stock Values

A lawsuit has been filed on behalf of a U.S. Bankruptcy Court Trustee against iPayment and its top executives, seeking $151 million in damages. The Pratter & Young law firm says the company was formed by a conspiracy between the named defendants to mislead and defraud the public in the evaluation of the company in its inception in order to gain a much more significant share of the initial founders’ stock. Further, the company’s original attorneys and accountants have been joined in the suit along with their successors, Morgan Lewis and Ernst & Young. Pratter & Young says all these advisors are accused of furthering and participating in the conspiracy to assert a lower market cap to investors based upon an unrealistically low evaluation, enabling insiders to gain a larger share of the company after going public. The suit alleges that just two months prior to evaluating the company at $.37 per share, Auerbach & Co. made an offer for the company for $7.00 per share which the Defendants, these officers and directors of iPayment, turned down. Commenting on the lawsuit, iPayment said Friday that it believes that this complaint and the underlying allegations are without merit and intends to vigorously defend against them.

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Roloson Receives a MBNA/MasterCard Award

RBS & LYNKRoyal Bank of Scotland is buying privately-held, Atlanta-based Lynk Systems, through its US-based Citizens Financial Group, for $525 million in cash. Lynk, a top merchant processor and acquirer, handles $18 billion in charge volume and 400 million transactions annually. The Company services approximately 100,000 merchants. Lynk also provides processing services for 25,000 ATM’s located throughout the USA representing $6 billion dispensed and 120 million transactions annually. The Company was founded in 1991 and has more than 950 employees. Financial Technology Partners and FTP Securities exclusively represented Lynk Systems in the pending sale to RBS. Lynk was a customer of Citizens Financial. Atlanta-based Arnall Golden & Gregory served as Lynk’s legal advisor.

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AA Offers Short-Haul Redemptions for AAdvantage

American Airlines has added a new short-haul award to its “AAdvantage” program, enabling members to obtain free economy seats for 15,000 miles instead of the current 25,000 miles normally required for free domestic travel. The new “MileSAAver” awards, for non-stop routes under 750 miles, also offers first or business class round-trip awards for 30,000 miles. Short-haul “MileSAAver” awards are available for travel from Sept. 1st through Feb 28th, 2005. United Airlines does not offer a similar option.

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