MasterCard 4Q/02

MasterCard International reported Wednesday that fourth quarter U.S. credit card outstandings rose 16%, and U.S. credit card gross dollar volume increased 12%, over 4Q/01. MasterCard’s fourth quarter U.S. debit card volume of $31.1 billion was up 13.3% over 2001. Overall, MasterCard’s U.S. 4Q/02 gross dollar volume of $162.7 billion was up 12.2% over 4Q/01. At year-end 2002, MasterCard had 266.9 million credit cards, and 47.1 million off-line debit cards in-force, in the USA. MasterCard reported a total of 250.7 million credit card and debit card accounts at the end of the fourth quarter 2002, a 14.3% increase over the year-ago period. MasterCard-branded cards were used for nearly 6.9 billion transactions last year in the USA, generating $602.2 billion in GDV, a 16.2% increase over 2001. Both strong purchase volume growth of 15.9% and strong cash volume growth of 17.0% drove this high growth rate in the USA. MasterCard’s acceptance locations in the USA were up slightly to 4.3 million at EOY 2002. For complete details on MasterCard’s 4Q/02 results visit CardData ([www.carddata.com][1]).

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

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MASTERCARD 2002

MasterCard reported that all its regions reported double-digit
gains in gross dollar volume last year as 2002 GDV exceeded US$1.14
trillion. In Europe, MasterCard GDV rose nearly 15.0% to US$242.6 billion
as card issuance increased 11.5%. The Asia/Pacific region reported GDV
growth of 10.6% in 2002, to US$223.2 billion, and the number of cards
issued in the region rose 11.0% to 112.5 million. This was driven by strong
GDV growth in Korea (up 23.0%), Australia (up 14.9%) and Japan (up 10.0%).
Latin America volume was up 26.2%, as the number of cards issued in the
region increased 11.6%. In South Asia, Middle East/Africa, GDV grew 23.0%.
In Canada, GDV rose 18.0% for the full year. MasterCard-branded
transactions in Canada remained strong in 2002, up 16.6% over the same
period in 2001. At the end of the year, Canadian banks had increased the
number of MasterCard cards issued by 19.9%. In the USA, which accounts for
more than half of total MasterCard GDV, MasterCard-branded cards were used
for nearly 6.9 billion transactions in 2002, generating US$602.2 billion in
GDV, a 16.2% increase over 2001.

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Trintech 4Q/02

Trintech Group today reported revenue for the quarter ending January 31st of $10.5 million, compared with $15.5 million for the same period on year ago, a decrease of 32%. Revenue for the fiscal year was $42.9 million, down 37% from $68.3 million in the prior fiscal year. Fourth quarter software license revenue remained flat at $5.7 million compared to the third quarter of fiscal 2003, and decreased 5% from license revenue of $6 million for the corresponding quarter last year. Fourth quarter product revenue was $2.7 million, a decrease of 61% from product revenues of $6.9 million for the corresponding quarter last year. Fourth quarter service revenue decreased by 19% from $2.6 million for the fourth quarter last year to $2.1 million for the fourth quarter ended January 31, 2003. The company says it has adjusted its cost base as pro forma operating expenses declined sequentially by 10% this quarter. Trintech says it is on track for pro forma profitability in the near term. For complete details on Trintech’s latest results visit CardData ([www.carddata.com][1]).

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

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QANTAS FEES

The decision by Qantas Airlines to begin imposing a surcharge for all
credit card transactions within the new few weeks, may cost it a valuable
co-branding relationship. ANZ Bank is reportedly tinkering with its “Qantas
VISA” and “VISA Gold” program. ANZ is considering raising annual fees for
the basic “Qantas VISA” from $40 to $120, and increasing annual fees for
the “Qantas VISA Gold” from $95 to $285. ANZ also charges a “rewards”
annual fee of $55 on each card. ANZ is looking into changing the mileage
earning structure on the card, from one mile for each $1 charged, to one
mile for each $2 charged. An annual cap of 50,000 miles is also being
considered. ANZ hinted it may drop the annual fee and assess a 1% monthly
fee on card volume. ANZ raised annual fees on all its credit cards by
nearly 150% in December, just ahead of the credit card reforms that took
effect January 1st. Last year, the Reserve Bank of Australia issued new
credit card rules permitting merchants to recover from cardholders the
costs of accepting credit cards. Most smaller merchants are charging
customers between 2.5% and 4.5% for VISA, MasterCard, American Express, and
Diners Club credit card transactions. However, most of the 4000 or so
members of the Australian Retailers Association have not introduced the
surcharge. VISA and MasterCard filed a lawsuit in October with The Federal
Court of Australia over the new RBA credit card laws. The Court has set a
trial date of May 5th.

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UATP Board

The Washington, DC-based Universal Air Travel Plan board of directors this week elected Marc Sullivan, managing director of corporate receivables, American Airlines, to its board. ince 1990 he has been employed by American Airlines. Sullivan was financial controller for American’s Europe Division prior to accepting his promotion to managing director of Corporate Receivables in January 2003.

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Citicorp/Citibank CEO

The Boards of Directors of both Citicorp and Citibank named Robert Willumstad CEO of both Citigroup subsidiaries. These are changes in titles that do not reflect changes in management responsibility. Mr. Rhodes remains Senior Vice Chairman of Citigroup and Mr. Willumstad remains President of both Citicorp and Citibank, NA, as well as President of Citigroup and Chairman and CEO of Citigroup’s Global Consumer Group.

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Cyber-Terminal

NC-based UniComp has introduced “Cyber-Terminal”, a virtual terminal certified with over 20 credit card processors. The Cyber-Terminal provides businesses a cost effective method to process both checks and credit cards utilizing the most technologically advanced server based payment processing terminal on the market. It also provides the ability to process and settle single or recurring payments from a customer’s credit/debit card or checking account.

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Teen Poll

A study, released last month by Atlanta-based Synergistics Research Corporation, has found that teens, ages 12 to 17, have an average monthly income of a mean of $127 and a median of $50. The telephone survey was conducted with 521 teens ages 12 to 17 and 304 parents of teens. Teens in the survey were asked to rate their level of agreement with a number of financially related attitude statements.

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BIOSCRYPT BIOMETRICS

Toronto-based Bioscrypt announced that Kaiser-Permanente has
installed “NKL Cash Handling” systems equipped with Bioscrypt fingerprint
access readers throughout its facilities in California. The cash handling
products from Indiana-based FKI Security Group were first to market with a
biometrics entry solution for cash handling in September 2002. FKI
Security Group selected Bioscrypt’s self-contained fingerprint verification
module, the “MV1200,” for all its cash handling systems. The “MV1200” is
designed for OEMs and embedded systems developers that want to add the
power of fingerprint biometrics to their systems. About the size of a
business card, the “MV1200” includes a small circuit board, a sensor and
software. The Kaiser Permanente southern and northern California
operations serve more than 6.3 million members and employ close to 100,000
people including 8,000 physicians. The region is served by 11 major medical
centers.

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Elan ATM/Debit Contracts

MN-based Elan Financial Services has signed eight new clients that will utilize ATM and debit card services offered through Elan including VA-based Miners Exchange Bank, SC-based SC Telco Federal Credit Union, MI-based First Independence National Bank, IL-based The Bank of Edwardsville, Cincinnati-based Foundation Bank, OH-based The Farmers Savings Bank, KY-based Victory Community Bank, and, CA-based American River Holdings. Elan Financial Services, as part of U.S. Bancorp (NYSE:USB), supports nearly 7,000 ATMs, 14 million ATM/POS cards, and 8 million credit cardholders with a complete range of products and services including credit card issuing, ATM, debit card, and merchant processing.

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SMS VbV

Bank of China Credit Card (International) Ltd., mobile communications specialist CSL, and VISA International have teamed to offer the world’s first “Short Messaging Service”-based M-commerce service using “Verified by Visa” beginning March 1st, according to tomorrow’s edition of The RAM Report ([www.ramreport.com][1]). Based on an open m-commerce standard, the three collaborating parties will partner with a variety of merchants to offer such applications as phone bill payment, movie ticket purchases, and golf booking during the six-month pilot. “Verified by Visa” has already been adopted as a secure online payment standard by over 6,000 VISA card issuers worldwide.

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

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