ADVANTEX 3Q/02

Toronto-based Advantex Marketing International Inc. reported revenue for
the quarter ending Sept. 30th of $26.2 million, compared with revenue of
$26.4 million in the same quarter last year. The Company reported that net
income for the quarter rose by $474,000 to $22,000, from a net loss of
$452,000 for same year ago quarter. During the quarter, Advantex launched
two new loyalty emall programs including CIBC eShops, offering bonus
rewards on seven different CIBC reward credit cards at more than 50
participating Canadian and U.S. e-retailers; and Mileage Plus Mall,
offering United “Mileage Plus” miles on purchases at more than 40
participating U.S. e-retailers. Advantex also announced in November a new
alliance with Bank of America and US Airways and its plans to integrate an
Advantex Benefit into all “US Airways Dividend Miles VISA” credit cards
issued by Bank of America.

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WildCard

FL-based WildCard Systems says its transaction processing engine for prepaid payments cards will power the recently announced “VISA International Travel Card” in China. The company has been involved in the launch or expansion of more than three dozen different VISA prepaid products in nine different countries since 1999. The new Chinese prepaid card will potentially be used by more than 10 million outbound Chinese travelers. WildCard’s technology and systems are now in use delivering solutions for young adults, gift cards, affiliate program payment cards, insurance cards, payroll cards, fuel cards, shopping mall cards, and other special purpose and incentive-based cards. VISA estimates the global prepaid market to be around $2.3 trillion. (CF Library 10/23/02)

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QuikPlay ATM Award

The GCA and’ “QuikPlay ATM” have been awarded the “Top 20 Most Innovative Gaming Products Award 2003” by Casino Journal. QuikPlay ATM, which enables newer-model slot machines to receive funds via a highly secure technology platform (patent pending), is expected to have a major impact on the gaming industry by allowing patrons to perform a debit transaction without ever having to leave the machine they’re playing.

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Card Charge-offs

The FDIC’s latest commercial banking performance report says the loss rate on credit cards remains high. According to the report, charge-offs of credit card loans totaled $3.9 billion in the third quarter, an increase of 35.6% compared to a year ago, and $133 million more than banks charged-off in the second quarter. The annualized net charge-off rate on credit card loans in the third quarter was 6.05%, slightly lower than the 6.08% rate in the second quarter, but well above the 5.20% rate of a year earlier. This is the fourth consecutive quarter that the loss rate on banks’ credit card loans has been above 6%, a level never previously reached in any quarter during the 19 years that banks have reported credit card charge-offs. Even with the high level of charge-offs, the amount of credit-card loans that were noncurrent increased by $685 million (13.6%) during the quarter. Also, the amount of credit cards that were 30-89 days delinquent on scheduled payments increased by $1.0 billion (15.8%). Over the last 12 months, noncurrent credit-card loans have increased by $972 million (20.4%), and 30-89 day delinquencies are up by $1.4 billion (22.5%). The FDIC says that despite the historically high loss levels, the profitability of credit card lending continued to improve, as net interest margins remained well above the industry average, and income from fees and securitization activities increased.

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SouthStar & ADS

Alliance Data Systems has signed a five-year agreement extension with SouthStar Energy Services’ Georgia Natural Gas to provide outsourced business services for GNG’s 550,000 deregulated gas customers. Alliance Data will continue to host GNG’s billing system and provide customer care, remittance processing and statement generation. Additionally, Alliance Data will now provide database marketing services.

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AXIS Clients

Digital Insight has inked four financial institutions for its “AXIS” online banking products including OH-based AdvantageBank, NYC-based Amalgamated Bank, Chicago-based Marquette Bank, and DC-based Presidential Bank. Digital Insight(R) Corporation is the preferred eFinance enabler for visionary financial institutions. Through its comprehensive portfolio of outsourced, Internet-based financial products and services built upon the company’s unique architecture, Digital Insight enables banks and credit unions to become the trusted transaction hub for their retail and commercial customers.

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Mall Gift Cards

Chicago-based General Growth Properties has launched a VISA Gift card pilot with Bank of America in four of its 168 shopping malls. The nation’s second largest owner, developer and manager of regional shopping malls says its expects to roll-out the gift card program to all of its malls next year. The participating General Growth malls in the pilot include: North Point Mall, Atlanta; Spring Hill Mall, Chicago; Florence Mall in Kentucky; and Bellis Fair Mall in Bellingham, WA. General Growth Properties has malls in 41 states. In October, Simon Property Group announced it was expanding its “VISA Gift Card” program to 43 shopping malls with a complete rollout scheduled to all remaining Simon malls next year. During the 12-month pilot program conducted in four Simon malls last year, the company says it experienced a sales increase of more than 60% compared to regular gift certificate sales during the prior 12 months. Simon Property currently owns or has an interest in 249 properties in 36 states. (CF Library 10/2/02)

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CIBC 3Q/02

Toronto-based CIBC reported that its market share of card purchase volumes hit 31.7% for the quarter ending Oct 31st, while market share of card balances outstanding now stands at 21.5%. CIBC also reported a 40% increase in customers for its President’s Choice Financial brand over the past twelve months, to end the quarter with 1.05 million customers. During the quarter, CIBC decided that it would close its U.S. electronic banking operations and focus on further developing its electronic banking operations in Canada. Overall, CIBC reported a quarterly loss of $100 million, down from reported earnings of $242 million for the same quarter of 2001 and reported earnings of $193 million in the prior quarter. The decrease in reported earnings from the same quarter in 2001 was primarily due to restructuring charges in the U.S. electronic banking operations and other businesses, and lower revenue from the CIBC World Markets business line. For complete details on CIBC’s latest quarterly performance visit CardData ([www.carddata.com][1]).

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

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HBC 3Q/02

Hudson’s Bay Company reported that credit card receivables for the quarter
ending 10/31/02 were $413.9 million compared to $371.1 million last year,
an 11.5% increase. HBC also reported that the average balance per active
customer account was $422, a 7.1% increase over one year ago. The average
volume per active account was $535 compared to $502 for the quarter ending
10/31/01. HBC’s average monthly active accounts were 3.0 million, down
slightly from last years 3.2 million. Sales on HBC’s credit card in the
third quarter represented 27.8% of total retail sales of the major retail
divisions compared to 27.7% in 3Q/01. At the end of the quarter, there were
2.9 million active customer accounts in the combined credit card portfolios
for the Bay and Zellers, 1.4 million Bay cardholders and 1.5 million
Zellers cardholders. Over the last twelve months, the quality of the credit
card portfolio has remained relatively constant. 94.7% of the receivable
portfolio was classified as current and 30 days past due, compared to 94.8%
at October 31, 2001.

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OnePass Bonus

Chase and Continental Airlines announced Tuesday they are offering double “OnePass” miles for its “Platinum,” “WorldMasterCard,” and “VISA Signature” cardholders. In addition to bonus miles, new cardholders will receive a $99 Companion certificate after they have been a “World MasterCard” customer for six months. And all current “World MasterCard” and “VISA Signature” cardholders will now receive two “Presidents Club” passes and two discount certificates redeemable for up to $150 in travel on Continental every year. New “World MasterCard” customers also receive a 10,000 mile sign-on bonus and “Platinum” customers receive 6,000 sign-on bonus miles. Standard cardholders earn one “OnePass” mile for every dollar spent on their card. Double miles will automatically be earned now for Continental Airlines ticket purchases made directly through Continental, as well as at AT&T, Bed Bath & Beyond, Best Buy, CVS/Pharmacy, KB Toys, Lowe’s Home Improvement Warehouse, Macy’s, US Postal Service, and all bookstores. There is no limit to the number of miles earned on the cards and Continental OnePass miles never expire.

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NATIONAL DEBIT CARD

ValuCard Nigeria plc has inked a deal with Ireland-based CardBASE
Technologies to develop a national debit card application for deployment
next year. Currently ValuCard offers an electronic purse program that has
grown, since its introduction in 1999, to more than 3,000 merchant
locations throughout Nigeria and has captured over 80% of the market for
electronic payments. CardBASE has designed “ValuCard Debit” to complement
the existing “ValuCard Purse,” which will now offer cardholders in Nigeria
the combination of purse and debit payment methods residing on the same
card. Cardholders can choose to pay for goods and services by taking funds
directly from their bank account using the debit application or cash from
their purse.

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