MAESTRO 1Q/03

MasterCard’s online, PIN-based global debit brand mark now appears on 466 million cards worldwide, a 10% increase over March 31st, 2002. Europe continues to be the largest cardholder base for “Maestro,” with 226.4 million cards, an almost 7% increase over year ago figures. There was a 41.7% increase in the number of merchant terminals accepting “Maestro” in Europe in the first quarter. With over 144.1 million “Maestro” cards, Asia/Pacific was the second largest “Maestro” region for the first quarter, as the number of cards in the region rose 14.4% over first quarter 2002. With 34.1 million “Maestro” cards in circulation within Latin America, the growth for first quarter of 2003 was close to 21% over the same period in 2002, and the number of merchant terminals in the region increased close to 22%. In South Asia, Middle East/Africa, “Maestro” acceptance grew 40.3% in merchant terminals in 1Q/03 compared to 1Q/02. There were close to 16.1 million “Maestro” cards in circulation in the region during the first three months of this year. Worldwide, “Maestro” is now accepted for purchases at more than 7.8 million merchant terminals in 93 countries and territories, and at 892,800 “MasterCard/Maestro/Cirrus” ATMs.

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MasterCard Interchange

MasterCard’s U.S. region Board of Directors approved changes to lower the effective interchange rate on its consumer debit programs while increasing certain interchange rates on consumer credit cards and corporate cards. In broad terms, MasterCard’s consumer credit card and corporate card interchange rates will each increase by approximately 1%, or an estimated 2 basis points. MasterCard said the credit and coporate rates were increased to address an existing competitive disadvantage. As expected, MasterCard will lower the effective interchange rate on its consumer debit programs in the U.S. region by one third, effective August 1, consistent with its settlement in the “Wal-Mart Debit Card Litigation.” The new consumer debit card interchange rate structure will consist of a “Supermarket/Warehouse” rate; a “Convenience” rate (for Petroleum, Fast Food, Convenience Store and Movie Theater categories); and an “All Other” rate.

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Genpass Executives

Genpass has named Douglas Anderson, founder of the MAC Network, as president of Genpass Card Solutions, and has also named William Raymond, formerly of Bank of America, as president of Genpass ATM Solutions. Anderson, as president of Genpass Card Solutions, will have responsibility for the Company’s debit card business, including PayCard, medical benefit cards, and other emerging products.

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VISA – Joel

VISA USA announced Thursday it will be the only card accepted for single-ticket sales of the upcoming “Movin’ Out” Broadway tour. The tour will get underway in February. The show is based on 30 songs by Billy Joel and has been nominated for 10 “Tony Awards.” VISA will also launch a national television advertising campaign and a special Web site for ticket purchases. Additionally, VISA will offer a variety of special “Movin’ Out” experiences and tie-ins with theatres. Over the years, VISA has produced six Broadway-themed national TV commercials including three national television spots promoting the “Tony Awards.”

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Velosant

eONE Global LP has formed a new enterprise payments company and has named former PeopleSoft executive Bill Walsh as CEO. Walsh also formerly served as president and COO of E.piphany. The new Velosant company will include the operations of the existing BillingZone unit of eONE Global. Velosant will also leverage the scale and infrastructure of First Data to facilitate both paper and electronic transactions as well as create a critical mass network of buyers and sellers to accelerate vendor adoption of automation. The company’s customer base includes Procter and Gamble, Kennametal, Xerox, Diebold and BASF. eONE Global is majority-owned by First Data.

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1Q/03 Bank ROA

FDIC-insured banks and savings institutions reported yesterday that ROA for the first quarter reached a record high of 1.38%, slightly above the previous record of 1.37% reached in the second quarter of last year. This surpassed their previous quarterly record by more than $2 billion. The numbers are contained in the FDIC’s Quarterly Banking Profile, which was released today.

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Patriot Act Support

With the final regulations of “Section 326” of the “USA PATRIOT Act” now in effect, and with full compliance required by October 1st, a number of firms have jumped on the bandwagon. Yesterday, Certegy announced the launch of “Patriot Guard” which provides financial institutions of all sizes with an all-inclusive framework for developing and administering a CIP, documentation and recordkeeping requirements, data storage and retrieval. VA-based Vastera also announced yesterday that its “GTM” solutions will help financial companies to monitor, interpret and respond to the requirements of the “Patriot Act.” This morning, Experian announced its offering of customized fraud solutions programs that will assess companies’ vulnerabilities, and help them comply with the new regulations.

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