CO-OP Patronage

Ontario, CA-based The CO-OP Network yesterday announced a patronage distribution of $7 million for 2002, a 132% increase over the prior year. The distribution is equal to 93 percent of net income from operations after taxes, compared to 65 percent of net income the year before. CO-OP Network member-shareholders, which constitute more than 50 percent of the organization’s 1,213 member credit unions, each receive a portion of the patronage distribution. Also, the board of directors for Service Centers Corporation, a CO-OP Network subsidiary specializing in shared branching, has declared a $524,400 patronage distribution, equal to 40 percent of taxable income.

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VISA Intl CEO

VISA International’s president and CEO will step down next March after completing five years at the top spot. Malcolm Williamson, 63, informed the Board of his decision last week and it was disclosed to the VISA International staff late yesterday. Williamson said he wants to pursue a different career course and other interests in the United Kingdom. He also cited his desire to spend more time with his wife and two teenage children as a reason for leaving the Board. In addition to his top executive role at VISA, Williamson is Deputy Chairman, Britannic Group Plc in the UK. Prior to joining VISA, he served as Group Chief Executive of Standard Chartered PLC for five years. He was also a non-executive director of the UK’s National Grid Group; a board member of the British Invisibles; a member of the British Council of the Industrial Society and UK chairman of the British Thai Business Group. Under Williamson’s stewardship VISA’s card volume has more than doubled. Williamson said he was satisfied that he achieved three goals: first, to develop a strategy that would enable VISA’s long-term success; second, to shape an effective center organization; and third, to instill a disciplined and transparent approach to managing expenses and reporting. The executive recruitment firm of Spencer Stuart has been commissioned with the search for a new president and CEO. (CF Library 6/25/98)

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Moneris & Ingenico

Ingenico and Moneris Solutions have teamed for the pricing and development of POS devices throughout North America. The newly-formed relationship will enable Moneris to lead the market with new and innovative Ingenico devices throughout North America. Moneris merchants will be able to look forward to new products such as the next generation of short and long-range wireless terminals, new debit/credit terminals, enhanced LAN-based products and integrated PINPads, new connectivity options such as IP, and chip capable devices that will leverage chip knowledge gleaned from the European market.

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MC ASIA-PACIFIC

MasterCard International reported that its gross dollar volume declined in the Asia-Pacific region for the first time. During the first quarter, MasterCard’s gross dollar volume dipped 6.8% to $54.2 billion. One year ago, the gross dollar volume was up nearly 18% in the first quarter. This year, purchase dollar volume declined 1.37%, while cash advance dollar volume declined 13.19%. Card volume in South Korea has declined sharply for all card issuers as the country continues to deal with huge charge-offs. MasterCard also reported that the number of accounts and cards in the region grew 8% in the quarter. With over 144.1 million “Maestro” cards, Asia/Pacific was the second largest “Maestro” region at the end of the first quarter. The number of “Maestro” cards in the region rose 14.4% over first quarter 2002.

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IRECHERCHE WASP

Bank-Verlag has selected Systinet “WASP Server for Java” for its “iRecherche” system, that is used for the automatic handling of investigations for payment transactions. Bank Verlag GmbH is a subsidiary of the Association of German Banks, which represents 247 private commercial banks, including Commerzbank, Deutsche Bank, and Dresdner Bank. The “iRecherche” system supports these banks by handling investigation requests for lost, misplaced or unresolved payment transactions, such as checks and wire transfers. Participating banks can view incoming requests and manage outgoing requests, with Bank-Verlag’s “iRecherche” platform acting as the central database system. “iRecherche” handles all incoming requests, routes them to the appropriate recipient, and allows for status tracking.

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Healthcare Processing Solution

Moneris Solutions, MedCard Division, United Processing Corp. have teamed to deliver a comprehensive HIPAA-compliant solution for insurance eligibility verification, electronic referrals and electronic claims transaction processing. The partnership consists of MedCard’s complete suite of healthcare applications and Moneris’ self-pay receivable management solutions. Moneris will provide proprietary software and service/support that enable healthcare practices to also accept credit and debit cards from the same easy-to-operate terminal that delivers benefit verification and other medical services. In addition to targeting medical groups through direct sales, Moneris and MedCom will deliver their joint solution through United Processing Corp.

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Metavante & Whitaker

Whitaker Bank Corporation of Kentucky has signed a long-term agreement with Metavante for a suite of EFT and card processing solutions. Metavante will provide Whitaker Bank Corporation with ATM driving and monitoring, gateway transaction processing, PIN-based card transaction processing, and card personalization. Metavante provides EFT and card services to approximately 1,600 financial institutions and transportation agencies in the United States. Metavante anticipates completing the conversion in August 2003.

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Universal Money 1Q/03

KS-based ATM network operator Universal Money Centers reported a first quarter loss of $231,007 on revenues of $1.83 million. The Company increased the number of ATMs in its network to 722 during the first quarter ending April 30, 2002. Universal Money is engaged in the business of operating a network of automated teller machines, as well as providing network management and switching services for banks and third party ATM owners. The ATMs provide holders of debit and credit cards access to cash, account information and other services at convenient locations and times.

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US Dataworks Restatements

Houston-based US Dataworks restated its financial statements for the 2001 and 2002 fiscal years, and, as a result, boosted shareholders equity by nearly $15 million. The financial statements were restated to reflect a change in the accounting method used to record the March 31, 2001 acquisition of US Dataworks, Inc.. The Company previously recorded the acquisition of UDW Delaware in a manner similar to a pooling of interests. Management has reassessed the facts and circumstances of the transaction and has changed the method used to record the acquisition from a manner similar to a pooling of interests to the purchase accounting method, which is in conformity with generally accepted accounting principles.

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PVN May Stats

Providian reported Monday that charge-offs for its Trust, or securitized card loans, jumped above 20% for May. However, delinquency for May declined for the fifth consecutive month. The nation’s ninth largest bank credit card issuer reported that charge-offs increased to 20.40% in May, compared to 19.80% for April. Delinquency declined to 11.92% in May, from 12.27% for April. On a reported basis, Providian’s charge-offs increased to 15.16% for May, compared to 14.50% for April. Reported delinquency also increased from 8.34% in April to 8.68% in May.

SECURITIZED PVN 2003
Month Charge-offs Delinquency
Jan 03 19.38% 13.26%
Feb 03 18.23% 12.89%
Mar 03 19.89% 12.46%
Apr 03 19.80% 12.27%
May 03 20.40% 11.92%

Source: CardData ([www.carddata.com][1])

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

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