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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Card Issuing Expenses to Top $92 Billion

Total expenses for the issuing side of the prime bank credit card business in the USA is projected to be $92.1 billion this year. With total estimated 2003 income of $119.5 billion, the industry will generate a pre-tax profit of about $27.4 billion or a 4.25% ROA. Based on data gathered by R.K. Hammer Investment Bankers, based in Thousand Oaks, CA, the industry ROA will rise about 5 basis points from 2002. Hammer says the rise in operating expenses and charge offs would have impacted P/L this year but the cost of funds, blended, and continuously declining, have saved issuers again from a decline in P/L impact. Of the $92.1 billion in total expenses: $25.8 billion or 28%, is the blended cost of funds; $31.3 billion or 34% is operating expenses; and, $35.0 billion or 38%, is charge-offs.

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Equifax Consumer Direct Revenues Double

Atlanta-based Equifax reported that its Consumer Direct revenues for the second quarter doubled over the prior year. The direct sale of credit bureau reports and related services to consumers has produced $32.2 million in revenues since the start of this year, compared to $16.5 million in the first six months of 2002. During 2Q/03, Equifax generated $17.4 million in Consumer Direct revenues compared to $8.7 million one year ago, and $14.8 million in the prior quarter. During the second quarter, Equifax introduced “Credit Watch Gold” and “Credit Watch Silver” to U.S. consumers. Experian Consumer Direct’s Internet properties include ConsumerInfo.com, FreeCreditReport.com, CreditExpert.com, Qspace.com, GetMyReport.com and CreditMatters.com. The Web sites receive more than 9 million visitors monthly. For complete details on Equifax’s second quarter performance visit CardData ([www.carddata.com][1]). (CF Library 6/12/03)

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

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Walmart.com Goes with Certegy’s PayNet

Walmart.com has inked an agreement with Certegy for full check warranty and electronic check processing services. Walmart.com has become one of the first mass retailers online to allow customers to make purchases over the Internet using their checking accounts. Certegy’s “PayNet” platform is designed specifically to manage consumer-not-present transactions. The service went live this month. Forrester Research predicts that Internet sales will increase by 26% this year to $96 billion.

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VISA Smart Cards Dip Below $2 Each

A new smart card product costing $1.98 each has been launched under the “VISA Smart Breakthrough Card” program. This morning, Philips Semiconductors and VISA announced the “GP-Entry” card which conforms to the “GlobalPlatform” specifications and has 8K of EEPROM memory and a VISA payment application that supports major authentication technologies, such as “Static Data Authentication” and “Dynamic Data Authentication.” There are currently nine card products in the “VISA Smart Breakthrough Card” program, supporting DES and PK security with a variety of ROM and EEPROM memory sizes. Prices range from $1.98 for a “GP-Entry” card to $3.47 for a dual interface card also supporting DDA with 16K of EEPROM. Additionally, the program includes a static/native card priced at less than a dollar. All prices are based on white plastic cost and include the “VISA Smart Debit/Credit” application in ROM. The program also provides a “Custom Mask” process whereby the required applets for a market specific requirement are stored in ROM. VISA says that of the 60 million VISA EMV cards issued to-date, 22 million cards have been issued under the “VISA Smart Breakthrough Card program.”

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Widener University Joins CampusMate Program

PA-based Widener University has joined Bank Rhode Island’s “CampusMate” program to offer its 6,700 students a full range of campus payment processing services, from tuition budgeting to the “Campus1Card.” Its custom-built technology enables parents and students to pay college expenses by telephone, the Web, or through the mail using a credit card, debit card, or electronic or paper check. Because it is custom-tailored for each client, CampusMate can “plug in” to different computer systems within a university. The Bank now has four major colleges and universities enrolled in its CampusMate program, Rhode Island School of Design, Johnson & Wales University, and the University of Rhode Island.

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