TravelCorp and Denim Airways Join UATP

Universal Air Travel Plan has expanded its Merchant base by adding TravelCorp and Denim Airways. UATP is achieving steady growth in recruiting travel agencies into the USS program because it delivers a low-cost settlement solution and adds value to the agency s relationship with corporate customers, Ralph Kaiser, UATP s president and chairman, said. TravelCorp, is a medium-sized agency based in New Orleans that specializes in personalized customer service. UATP is the global corporate travel payment network. UATP accounts are actively issued by 15 member airlines and accepted as a form of payment for corporate business travel by more than 200 airlines worldwide.

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Maxxzone.com Changes Names Post Acquisition

Following its purchase of American Card Services in April, Maxxzone.com Inc. has changed its name to American Card Services Inc. and will operate from Orlando. ACS will continue to use the trading symbol MAXZ.OB until a new symbol is obtained. Maxxzone purchased all the assets of American Card Services Inc., a Delaware corporation, on April 27, 2004. Roder was also appointed the secretary of the company. David Eison was appointed a director and treasurer of the company, as well as the executive vice president, operations.

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NPC Explores Options and Possible Sale

Louisville, KY-based National Processing confirmed Thursday night that its board of directors is reviewing the Company’s various strategic alternatives, including but not limited to the potential sale of the company. The card processor, which is 83% owned by National City Corporation, previously reported first quarter revenues of $122.2 million, a 15% gain over one-year ago. Net income rose 40% to $12.0 million. Merchant Card Services dollar volume processed was $44.5 billion for the first quarter, representing an increase of 13% over the first quarter of 2003. MCS transactions processed were 1.1 billion for the first quarter, an increase of 17% over 1Q/03. The Company also raised its revenue forecast for 2004 to a range of $500 million to $530 million. NPC and its subsidiaries support approximately 700,000 merchant locations, representing nearly one out of every six VISA and MasterCard transactions processed nationally. For complete details on NPC’s 1Q/04 performance visit CardData ([www.carddata.com][1]). (CF Library 4/15/04)

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

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VISA Mini Card Tops 18 Million

Since introducing a miniature-sized payment card eighteen months ago, the “VISA MIni” card has topped 18 million cards worldwide, with more than 11 million issued within the USA. During May, VISA International introduced the card into Indonesia, following successful roll-outs in India, Singapore, Thailand, Hong Kong, and Taiwan, according to CardFlash International. “VISA Mini” can be issued as a “VISA Debit” or “VISA Electron” card, or as a “Platinum,” “Gold” or “Classic” card. The card is 43% smaller than the regular-sized VISA card. It can be used at most POS terminals with swipe readers, but cannot be used at some traditional acceptance devices such as ATMs and terminals with deep magnetic stripe readers, and for transactions that require a manual card imprint. Bank of America launched its “VISA Mini” credit card in October 2002 in the USA. The major U.S. issuer also launched a debit card version of the “VISA Mini” in January 2003. United Overseas Bank launched a “VISA Mini” credit card in Singapore in September 2003. In India, Standard Chartered Bank and ICICI Bank introduced “VISA Mini” cards in December 2003. Versatile Card Technology, manufacturer of the card, reported in September 2003 it had produced more than 15 million “VISA Mini” cards to-date. There are currently 203 million VISA-branded cards in Asia Pacific.

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Eugene Lockhart Joins NetSpend Board

NetSpend Corporation has named Eugene Lockhart, Richard Child, and Daniel Schley to its Board. Mr. Lockhart, who will join as Chairman of the Board, is currently a Venture Partner with Oak Investment Partners. Mr. Child also brings extensive experience from MasterCard International, including his most recent position as Executive Vice President. Mr. Schley, currently the Chairman & CEO of Foundation Source, Inc., and the Co-Founder and Managing Director of Dolphin II, LLC, and has held the positions of Chairman and Chief Executive Officer of numerous financial service and software companies. NetSpend Corporation, based in Austin, Texas, is a proven leader for prepaid debit processing platforms, offering an end-to-end approach that is unique in the prepaid payments industry.

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Fair Isaac Closes London Bridge

Fair Isaac has closed its acquisition of London Bridge Software Holdings. The addition of London Bridge’s talent and technologies extends Fair Isaac’s ability to deliver analytics-driven decision strategies across the entire credit customer lifecycle. Fair Isaac Corporation is the preeminent provider of creative analytics that unlock value for people, businesses and industries. London Bridge Group has over 1,600 clients worldwide and provides a comprehensive portfolio of software and e-Commerce solutions including Customer and Enterprise Management Software, Banking Software, Credit Management Software and enterprise-wide Mortgage Lending software.

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Late Payment Fees Rise 23% Since 2001

All of the nation’s top ten bank credit card issuers, including American Express and Discover, have raised late fees during the last three years by an average of 23%. In the spring of 2001 nine of the top ten issuers charged a $29 late fee. In April 2004, five issuers charge $35 and four issuers assess a $39 late fee. The average late fee charged by the top ten issuers in April 2001 was $29.60, compared to $36.50 in April 2004. However, unlike 2001, all of the top issuers now have tiered late fee structures, which provides some relief to consumers very, very low balances. Most issuers assess their highest tier late fee if your outstanding balance is more than $1,000. Chase sets a $250 balance, and Providian a $200 balance as the trigger point for their highest late fees. In March of this year, the American Bankers Association reported that credit card delinquency, based on the number of accounts 30+ days past due, hit an all-time high of 4.43% in the last three months of 2003. There are currently 417 million VISA and MasterCard credit card accounts, compared to 368 million in the spring of 2001. (This does not include the 72 million accounts held by Discover and American Express.)

CREDIT CARD LATE PAYMENT FEES
2001 2004
1. Citibank $35.00* $39.00*
2. MBNA $29.00 $39.00*
3. Bank One $29.00 $34.00**
4. Chase $29.00 $35.00***
5. Discover $29.00 $35.00*
6. Capital One $29.00 $35.00*
7. Am Express $29.00 $35.00*
8. Bnk of Amer $29.00 $39.00*
9. HSBC/HH $29.00 $35.00*
10. Providian $29.00 $39.00****
AVG $29.60 $36.50
* for balances over $1,000; ** for balances over $1,200
*** for balances over $250; **** for balances over $200
Source: CardWatch (www.cardwatch.com)

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Investor Rebukes InterCept’s Corporate Governance

In a stinging rebuke of InterCept’s management and governance, venture capital firm Third Point Management Company is calling for the resignation of CEO John Collins and the dismissal of Directors: James Verbrugge, Arthur Weiss and Mark Hawn. In a letter to Collins, Daniel Loeb of Three Points, which owns 7.1% of InterCept, accussed the senior management and its Board of Directors of self-dealing and extensive conflicts of interest. Loeb says his investigation showed that the “good ol’ boy” set of ethics prevails at the firm at the peril of investors would want the processor on the selling block. Loeb took particular aim at a financial arrangement with Sprout Group, a venture capital affiliate owned by Credit Suisse First Boston calling it a sweetheart deal that “gave away the store.” InterCept, which recently sold its iBill division, has not reported first quarter results yet. For information on InterCept’s past performance visit CardData ([www.carddata.com][1]).

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

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OTI 1Q/04

Rosh Pina-based On Track Innovations reported revenues for the first quarter of $5.3 million, up 13% from one-year ago. Net loss for the quarter was $2.0 million versus $1.1 million last year due to restructuring and the raising of capital. The Company reported record volume growth by BP South Africa, from 100 million liters (26.5 million gallons) in 2002 to 175 million liters (46.2 million gallons) in 2003, with OTI’s petroleum payment solution, branded by BP as “FuelMaster.” OTI also reported the installation of the 200th gas station in Turkey using OTI’s petroleum payment system. In addition, the Company recently announced that it had entered into an agreement with Sasol Oil to create a large network of on-road retail convenience centers equipped with OTI’s petroleum payment solution. OTI also reported that its “EasyPark” parking payment system has reached more than 130,000 subscribers in 24 cities in Israel.

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MoneyGram Inks Largest Bank Affiliation

Minneapolis-based Travelers Express Company’s MoneyGram subsidiary has landed its largest bank affiliation in the USA with the signing of a deal with U.S. Bank. U.S. Bank will initially offer “MoneyGram” in 213 branches in Chicago, Los Angeles, Milwaukee and San Diego in the first phase, which will be up and running in August, with plans to offer the program in all branches in 24 states by early 2005. U.S. Bank launched two Mexican remittance programs last year. The card-based “Secure Money Transfer” product and relationship with Mexico’s L@Red de la Gente provides consumers with low cost options to send funds to more than 20,000 ATMs or 750 L@Red de la Gente locations in Mexico. L@Red de la Gente is part of the MoneyGram network. The addition of the MoneyGram network opens additional outlets in Mexico and access to 160 other countries.

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