U.S. Bank reported that its Payment Services business contributed $181.1 million, or 19% of its total operating earnings for the second quarter, a 14.3% increase over 2Q/02. Non-interest income for its credit and debit card business in the second quarter grew 8.5% to $142.3 million, compared to one year ago. The nation’s largest issuer of corporate VISA cards, U.S. Bank also reported a 10.2% gain in corporate payments products income during 2Q/03 to $90.9 million. Income from ATM processing services was up 7.5% to $36.0 million, but income for merchant processing services declined 1.8% to $141.8 million. U.S. Bank says the decline in merchant processing revenues were primarily due to lower processing spreads resulting from changes in the mix of merchants. The issuer also reported last week that credit card charge-offs declined to 4.80% in 2Q/03, compared to 5.17% in the first quarter, and 5.23% one year ago. U.S. Bank also reported a 3.9% decline in average retail credit card loans to $5.5 billion. For complete details on U.S. Bancorp’s second quarter performance visit CardData ([www.carddata.com]).