U.S. Bancorp Payment Profits Up 14%

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][1]).

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

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DIEBOLD INDIA

Diebold has appointed a new managing director and has established a new corporate office. The company has named Rajiv Singh as managing director to head up Diebold India Private Ltd. and Diebold Systems Pvt. Ltd. Diebold also announced the establishment of its new corporate office for the Indian sub-continent in Mumbai. Prior to joining Diebold, Singh held the position of managing director of Computer Associates, India, and SAARC countries.

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WildCard Systems Names New CIO

FL-based WildCard Systems has hired Shashi Kapur, formerly with Equifax and Telecredit, as CIO. Shashi has 25 years of technical and executive management experience in software development, telecommunications network design, implementation, operations and consulting. Before joining WildCard Systems, he served in senior management and consulting positions for a number of technology-based companies including Biometrics Marketing, TeleVoice, GTECH Corporation, Equifax and Telecredit (now Certegy, Inc.). Headquartered in Sunrise, FL, WildCard Systems is the global solutions leader in turnkey host based prepaid cards and custom stored-value products.

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OTI CARDS & BART

On Track Innovations has been selected by the San Francisco Bay Area Rapid Transit District to provide “ISO 14443” compliant contactless solutions for use in BART’s “SFO Airline Employee Discount Program.” OTI will support BART’s initiative by supplying microprocessor-based contactless smart cards. Employees will receive a contactless RFID microprocessor-based smart card encrypted to activate a discounted fare structure when used at the SFO BART Station. Applications developed by OTI include product solutions for micropayments, mass transit, parking, petroleum payment systems, loyalty programs, ID and secure campuses.

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AOL Jumps on VISA Buxx Bandwagon

VISA’s prepaid teen card got a big shot in the arm today as Bank One and America Online teamed to introduce the “AOL Cash Card.” The new card is part of the “VISA Buxx” program, providing a parent-controlled, re-loadable payment card for teens and young adults. The program allows parents to set spending limits, track their teen’s spending, load additional funds onto the account every month or set up a recurring load schedule to maintain the card as an “allowance,” receive real-time updates on purchases, and access transaction histories entirely online through the AOL service. AOL will make the new card available to members as a new feature of “AOL 9.0 Optimized,” the latest version of the AOL and “AOL for Broadband” services. AOL says the program will be available for members with teenagers ages 13 and up that have “Screen Names” on “AOL 9.0 Optimized.” VISA U.S.A. introduced “VISA Buxx” in August 2000. U.S. Bancorp was the first issuer of the card. There are ten issuers of “VISA Buxx” cards today including: Bank One, Bank of America, Wachovia, First Tennessee, First Union, National City, Sandy Spring Bank, National Exchange Bank & Trust, Hudson Savings Bank, and U.S. Bank. (CF Library 8/10/00)

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AMEX PLATINUM REWARDS

American Express has launched a new down-scale version of its “Platinum Card” that offers rewards, a competitive interest rate, and special privileges for Kiwis. The new “American Express Platinum Membership Rewards Credit Card” carries an annual fee of $325, significantly lower than the $1,250 charged for the “AmEx Platinum Charge Card.” The new “Platinum” credit card offers two “Membership Rewards” points for every dollar spent until the end of 2006 plus a select range of bonus partners offering up to 10 points for every dollar spent. Cardholders also receive membership in the “Platinum Privileges Club” offering special accommodation offers at fine hotels, enrollment in the “American Express Wine Cellar” club and “Avis Platinum Preferred Club” membership. The new card offers an interest rate of 16.99% and an introductory balance transfer rate of 5.99% for the life of the transferred balance. To qualify for the “American Express Platinum Membership Rewards Credit Card,” applicants must have an annual income of at least $60,000.

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iDine Rewards Network Adds Two Board Members

Miami-based iDine Rewards Network has named Harold Shain, President and COO of Newsweek, and Peter Bynoe, a partner in the law firm of Piper Rudnick, to its Board. Prior to joining Piper Rudnick, Mr. Bynoe managed Telemat Ltd., a business consulting firm where he gained substantial project management and financial services experience. Previously he served as executive vice president, general manager and U.S. publisher and directed Newsweek’s ad sales and marketing staffs, and the magazine’s overall advertising strategy. iDine Rewards Network currently has 20.4 million credit cards registered through 15.4 million enrolled accounts.

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Digital Insight Renews and Expands Fiserv Deal

Digital Insight has expanded its marketing relationship with Fiserv to include Fiserv’s Galaxy PLUS and CUSA Technologies companies in addition to Fiserv’s AFTECH, Summit Information Systems, USERS Incorporated, and XP Systems. Together, the Fiserv credit union business units included in the agreement serve over 2,300 credit union clients. Fiserv, Inc. provides industry-leading information management systems and services to the financial industry, including software and systems solutions, transaction processing, outsourcing, and business- process outsourcing. Digital Insight provides retail and commercial Internet banking, electronic bill payment and presentment, eCommerce portal technology, wireless channel delivery, advanced targeted marketing, website development and maintenance, as well as online and call center lending services.

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iNetEvents to Become International Card Establishment

Los Angeles-based iNetEvents, Inc. has acquired International Card Establishment, Inc. and is nearing the completion of the acquisition of GlobalTech Leasing, Inc., both headquartered in Oxnard, CA, and will eventually change its name to International Card Establishment, Inc.. Following the two acquisitions and a share restructuring, iNetEvents will own 100% of both I.C.E. and GlobalTech Leasing and have approximately 17.6 million shares outstanding. Mr. Brandon Stauber will continue as President and CEO of the Nevada subsidiary and Jonathan Severn was appointed the new President and Chairman of the Board of the Company. iNetEvents, Inc. specializes in providing a range of technology services to the event management industry.

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COMMONWEALTH MASTERCARD

Commonwealth Bank Ltd. has deployed Fiserv’s “PLUS System” to manage the bank’s expanded credit-card processing operations. In 1990, the Central Bank of The Bahamas approved Commonwealth Bank to be a clearing bank, completing the transformation from a savings and loan institution to a full-service bank. To increase value-added services for its customers, the bank recently expanded its product offering by adding “MasterCard” services. Fiserv already provides the bank’s international core processing system, ICBS, which is managed in-house. Bahamian-owned and operated Commonwealth Bank Ltd. has assets of more than $660 million, with over 400 staff serving more than 56,000 customers across the 700 islands that represent The Islands of The Bahamas.

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Southwest Corporate FCU Joins CO-OP Network

Dallas-based Southwest Corporate FCU, the country’s second largest corporate credit union, has brought its established ATM program with 192 credit unions to the CO-OP Network for nationwide surcharge-free ATM access. Credit unions currently participating in Southwest Corporate’s established ATM and debit card program will have access to 17,000 CO-OP Network surcharge-free ATMs across the United States and Canada. Southwest Corporate is the second largest corporate credit union in the country, with $9 billion in assets.

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PSCU CUSO to Re-Sell NYCE Services

PSCU Financial Services, the nation’s largest credit union service organization, has inked a deal to resell NYCE network and gateway services to its more than 500 credit union member-owners. PSCU Financial Services members will also gain access to NYCE’s 560,000 point of sale locations and 120,000 ATMs. A number of other credit union associations in addition to PSCU Financial Services have already endorsed NYCE, including Credit Union Affiliates of New Jersey, Delaware Credit Union League and New York Credit Union League.

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