TSYS Second Quarter Profits Up 13.8%

TSYS reported that net income for the second quarter increased 13.8% to $34.3 million from the same period last year. Gross revenue for the quarter was $257.7 million, an increase of 6.7%. Electronic payment processing revenues for the second quarter were $177.3 million, an increase of 15.5%. At the end of 2Q/03, TSYS had 262.5 million accounts on file, a 15.8% gain over the prior year. Gross accounts on file include 145.0 million consumer accounts, 82.6 million retail accounts, 20.2 million commercial accounts, 7.9 million debit/stored value accounts, and, 6.7 million government service/EBT accounts. Of the 262.5 million gross accounts on file, 45.2 million are international accounts. For complete details on TSYS second quarter performance visit CardData ([www.carddata.com][1]).

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

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SCHLUMBERGER EAL7

Schlumberger Smart Cards & Terminals’ development methodology has been evaluated and validated for “Common Criteria Evaluation Assurance Level 7”, the highest level of certification possible. The evaluation and validation was performed by the French Central Administration for Information Systems Security – Direction Centrale de la Securite des Systemes d’Information. The Schlumberger methodology uses a mathematically proven environment for loading, verifying and executing. It also conforms to Sun’s Java Card Protection Profile for feasibility, reusability and standards.

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Oasis Posts Another Strong Quarter

Toronto-based Oasis Technology posted its third consecutive profitable quarter for the period ending June 30th. The quarter was driven by strong product license growth, numerous product upgrades, and successful collaborations with existing customers to expand Oasis product implementations to meet new business requirements. In addition to earnings growth, the company recognized 7% revenue growth over the second quarter, and 45% revenue growth over the same period in 2002. Oasis clients include ABN AMRO, American Express, Citibank, Credicard/Redecard Brazil, Diners, Europay, Golden Card (China), MasterCard, National Processing Company and VISA International.

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Global Axcess Adds Two Board Members

FL-based Global Axcess has named Lock Ireland of Resource Corporate Management and Robert Landis of CompCare to its Board of Directors. Mr. Ireland currently serves as a consultant and director for Resource Corporate Management, Inc., where he was President and CEO from 1994 through 2002. Mr. Landis serves as a Chairman, CFO and Treasurer of CompCare, a managed behavioral healthcare company serving over 1.2 million lives. Global Axcess Corp. and its wholly owned subsidiary, Nationwide Money Services, provides turnkey ATM management solutions that include cash, project and account management services. NMS currently owns and operates over 1600 ATM’s in its national network spanning 39 states and provides proprietary ATM branding and processing for 31 financial institutions with over 300 branded sites nationwide.

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Homeland Security Picks LaserCard for Border IDs

Drexler Technology has received a $2 Million “LaserCard” order for U.S. Department of Homeland Security multi-biometric ID border crossing cards. The optical memory cards were tested at 24 biometric ID verification systems at airports and border crossing points earlier this year. After the test was successful, the Department of Homeland Security purchased approximately 1,000 cards for use in biometric verification systems. LaserCard markets include identification cards, electronic visas, homeland security, digital governance, child healthcare, vehicle registration, and immigration cards.

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U.S. Card Fee Income Expected to Rise 6.5%

U.S. credit card issuers are expected to generate $39.6 billion in fee income this year, a 6.5% increase over last year. Penalty fee income is expected to reach $10.7 billion, while the largest category of fee income, interchange income, will hit $19.8 billion. According to R.K. Hammer Investment Bankers, other fee income this year will include cash advance fee income of $5.1 billion, annual fees income of $3.2 billion, and fee income from enhancements of $800 million. Hammer says that total income (including interest and all fees) will be 18.50% ROA in 2003, or $119.5 billion for the year, before expenses. Roughly one-third of that is fee income based; and approximately two-thirds of the total revenue stream is for interest income on balances that revolve and incur finance charges. After expenses, the card companies are expected to earn over $27 billion, pre-tax in 2003.

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Global Payments Signs Sam Ash Music

Sam Ash Music Corporation has selected Global Payments for its card and check processing services. Global Payments will provide Sam Ash stores with check guarantee and recovery systems as well as providing front and back end credit card processing services and help desk support. Global Payments is a leading provider of electronic transaction processing services to merchants around the world. There are 42 Sam Ash “Musical Instrument Mega Stores” located in 12 states.

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CREDIT ALERT

Carlson Marketing Group Canada and Intersections have teamed to launch a new service to give Canadians enhanced access to the two major credit bureaus in the country. “Credit Alert” will be offered to credit card-holding customers of several of major credit card issuers in Canada. The service’s features include: a one-bureau Credit Report with detailed credit history; a one-bureau Credit Score with easy-to-understand explanations; quarterly credit updates, including updated credit score; “Notify Express” two-bureau monitoring and notification of credit report activity every business day; access to credit education specialists and the consumer fraud resource center; ability to access credit information online; and, access to online educational resources.

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mbi Health Care Debit Card Reaches 300,000 Users

MA-based mbi reported this morning that it has surpassed 300,000 employees using its “Flex Convenience MasterCard.” The company says it has nearly tripled the number of card users since last July when it hit the 116,000 mark. Also, the number of employer groups offering the card has increased from 1,500 last year to more than 4,300 today. mbi introduced the first health care debit card to the marketplace in 1998. More than 210 health plans and third-party administrators offer the mbi “Flex Convenience MasterCard.” Major clients include BellSouth, SC Johnson, Staples, MCI WorldCom and BlueCross BlueShield of Rhode Island.

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InteliData Technologies Nabs Brown

InteliData Technologies has hired Anne Brown, former SVP/Internet Payment Strategy for Wachovia’s eCommerce Division, to lead its Payment Systems Group. Ms. Brown has over 25 years of experience in financial services and e-commerce. While with Wachovia, her management responsibilities included product design and development, strategic planning, ATM/POS networking and corporate marketing functions. Prior to Wachovia, Ms. Brown was President of AMB Incorporated, a management consulting practice focusing on credit and debit card related matters. She has also served as Sr. Director of the EFT Association and as Director of Marketing for the MOST ATM Network.

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CO-OP Changes Debit Card Processing Platform

Ontario, CA-based CO-OP Network has decided to move its Service Centers Corporation’s VISA and MasterCard signature-based debit card processing services to the CO-OP Network platform and by April 2004, 166 SCC member credit unions will have been converted to the new platform supported by eFunds. CO-OP Network is the No. 1 credit union ATM network, with 800,000 ATMs worldwide available to members. SCC developed the first shared branching network for credit unions, and has 300 participating credit unions today, which conducted 12.6 million transactions in 2002. The CO-OP Network now reaches beyond 17,000 surcharge-free ATMs and 16 million cardholders.

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EGG RESPONSE

Egg France has extended its customer service offerings with the use of “KANA Response” software for incoming e-mail. Egg France launched its first product in France, la Carte Egg, in November, and in the first two months of the credit card’s availability, 69,000 customers applied. Egg France needed a scalable eCRM application to meet the needs of its growing customer base. “KANA Response” provides agent-assisted service with fast, high volume, intelligent, automated e-mail, Web and instant messaging request management.

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