DATAWAVE & LIPMAN

Vancouver-based DataWave Systems has signed a twenty-year licensing
agreement with Lipman USA. The deal permits Lipman to use DataWave’s card
dispenser technology to enable them to distribute and recharge multiple
prepaid products via their entire ATM product line. DataWave and Lipman
formed a joint venture in 2000/2001 to create an ATM capable of dispensing
prepaid phone cards. The new licensing agreement allows both parties to
take this collaboration to the next level.

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BP SMART CARD

Oberthur Cards Systems has received certification from both VISA and
Proton World for its “Prisma Basic Profile” smart card. BP is a
multi-application smart card combining an EMV application with the
well-known Proton e-purse. Proton Prisma BP has a U.S. e-purse function
fully compatible with the existing “Proton R3” systems rolled out in seven
countries around the world and licensed by 26 others.
The card also features a toolbox which allows the customization of the BP
card with applications such as loyalty during both the personalization
process and after the card has been issued. Oberthur has been a long time
partner and supplier of “Proton World” e-purse solutions. Banksys, the
Belgian electronic funds transfer operator, recently selected Oberthur to
deliver the next generation of debit and credit cards based on “Proton
Prisma” technology.

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Equifax Expansion

Equifax has purchased the consumer credit files and certain customer contracts from CBC Companies for $95 million in cash. It is the largest such transaction to date. The purchased database includes customers in Ohio, Florida, West Virginia, South Dakota, North Dakota and Indiana. CBC is an independent credit reporting agency and has been a system affiliate of Equifax for more than 14 years. During August Equifax acquired Naviant, Inc. for $135 million. Naviant has an email database of more than 100 million unique permission-based addresses. (CF Library 8/16/02)

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ATM Manager Pro v5.5

e-ClassicSystems reported this morning that “ATM Manager Pro” databases now manage over 70,000 ATMs worldwide. The company also announced version 5.5 of the software. Over the last four months the company has added 12 new customers including a “Top 10” financial institution in the U.S. and the first U.K. customer. The new version 5.5 contains new transaction reporting including check cashing, foreign withdrawals and deposits, us-on-us reporting, and pre-paid wireless. It also features the release of transaction warehouse recording all activity on individual transactions including card number, network, and time of day. It also has an improved user interface through the addition of Wizards to add new assets, locations, partners, and events as well as additional drill-down functionality for detailed information.

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AmEx Rewards

American Express has extended its double “Membership Rewards” points for “everyday purchases” to other card programs. The double points program was first introduced as a core feature with the recent launch of AmEx’s new “Rewards Green” and “Rewards Gold” card. The double points feature will now be available to cardholders of the “Rewards Plus Gold Card,” “Platinum Card,” and the very exclusive”Centurion Card.” “Everyday purchases” includes purchases at stand-alone supermarkets, gas stations, drugstores, home improvement stores, the U.S. Postal Service and wireless phone bills. All cardholders will continue to earn one point for all other purchases. (CF Library 9/23/02)

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GCA & Youbet.com

Global Cash Access has signed a deal to provide “QuikFunds” product and cash access technologies to Youbet.com, an online live event and wagering company offering access to more than 80 major racetracks. Youbet.com lets members watch and wager on a wide selection of live thoroughbred and harness horseracing from North America and abroad, including more than 80 major racetracks, via its exclusive private and secure closed-loop network.

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InterCept 3Q/02

InterCept reported third quarter net revenues of $66.3 million, a 76.7% increase compared with 3Q/01. Net income, excluding net losses generated from InterCept’s ownership of Netzee, and a non-recurring charge to establish a reserve related to the WorldCom bankruptcy, totaled $5.7 million versus $4.0 million for 3Q/01. During the third quarter, InterCept signed a letter of intent with Sovereign Bancorp for its item processing and signed a merchant processing contract with 1st Source Bank in Indiana. The company also appointed Boone Knox to Vice Chairman of the Board of Directors and promoted Lynn Boggs to COO. For complete details on InterCept’s third quarter results visit CardData ([www.carddata.com][1]).

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

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3Q/02 Charge-offs

While delinquency rose 37 bps during the third quarter compared to the second quarter, charge-offs declined 95 bps during the same period. Nine out of the top ten U.S. issuers reported declines in charge-offs during the third quarter. Metris/Direct Merchants Bank was the only issuer reporting an increase. However, Metris charge-offs were only up 10 bps. Compared to the third quarter of 2001, charge-offs were, on average, 8.1% higher. The average third quarter charge-off rate was 7.06%, compared to 6.53% one year ago. Excluding the huge losses at Providian and Metris, the average charge-off rate for the third quarter would have 5.42%. Among issuers reporting the steepest decline since last year are Fleet and Bank One. All three major sub-prime issuers, Capital One, Providian, and Metris reported the biggest increases in charge-offs since 3Q/01. For 3Q/02, Discover reported a charge-off rate of 6.27%, compared to 6.30% in the previous quarter, and 5.79% one year ago. For American Express, losses slowed from 6.20% in 2Q/02 to 5.60% in the third quarter. During 3Q/01, American Express experienced a charge-off rate of 5.60%. For historical data on charge-offs visit CardData ([www.carddata.com][1]).

TOP TEN VISA/MC ISSUER CHARGE-OFFS
3Q/02 2Q/02 1Q/02 3Q/01 ANN CHNG
1. Citigroup: 5.86% 6.50% 6.41% 5.48% +6.9%
2. MBNA: 4.84% 5.09% 5.00% 4.90% -1.2%
3. Bank One: 5.00% 5.62% 5.69% 5.89% -15.1%
4. Chase: 5.51% 6.42% 5.87% 5.64% -2.3%
5. Cap One: 4.96% 4.98% 4.70% 4.51% +10.0%
6. Providian: 16.71% 17.53% 15.05% 10.33% +61.8%
7. BofA: 5.13% 5.59% 5.43% 4.81% +6.7%
8. Household: 6.81% 7.54% 7.17% 6.75% +0.9%
9. Fleet: 5.25% 5.81% 5.42% 6.26% -16.1%
10. Metris: 15.10% 15.00% 13.00% 10.70% +41.1%
AVERAGE: 7.06% 8.01% 7.37% 6.53%% +8.1%
Source: CardData (www.carddata.com)

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

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