DOUBLE MILES

United Airlines and Bank One announced yesterday they will reward Mileage Plus VISA cardholders with double miles for purchases through October 31. The United Mileage Plus Visa program continues to enhance benefits for cardmembers. The United Mileage Plus Visa card with Visa Signature benefits and the United Mileage Plus Platinum Business card were both recently introduced, offering exceptional value to consumers and small businesses.

Details

CHARGE-OFFS DOWN

Credit card charge-offs among credit card-backed securities decreased slightly by 20 bps in May to 7.1%. Delinquencies levels have also been trending downward since January according to Standard & Poor’s Credit Card Quality Indexes. In addition to delinquencies and charge-offs, the other performance trends were also positive in May. Payment rates increased by 90 bps, settling in at 16.5% for the month. Payment rates since 1998 have consistently topped 16.0%, and despite uncertain economic direction, obligors’ propensity and ability to pay their credit card bills seem undeterred, at least for now. In addition, yield numbers increased by a modest 20 bps in May to 18.6%. With news that the Federal Reserve may leave rates unchanged through the end of the year, yield numbers are likely to remain fairly inelastic in the near term. In May, yield numbers were also boosted and benefited from four Monday collection days. Excess spread continues to remain robust despite increased pressure on losses. Excess spread increased 40 bps to 7.0%. During the last six months, excess spread has averaged 7.2%.

Details

DATAKEY CARDS

Datakey announced it has delivered smart cards, readers and CIP client software to 16,000 users at three different Canadian government
agencies in the second quarter. The Canadian government has been a pioneer in the adoption of smart card technology. In particular, major programs such as the Department of Defense E-mail System II project demonstrate the progressive approach that Canada has taken in e-government initiatives.

Details

CAMPUS CARD

James Madison University and Case Western Reserve University have selected Student Advantage’s “SA Cash” program to launch an off-campus stored-value card program for more than 30,500 students, faculty, and staff at the two schools. Partner universities and Student Advantage share a percentage of each transaction. In addition, Student Advantage offers university card programs Web site maintenance and development services, and a communications plan that will inform students about the ID and its applications.

Details

EN-CONCERT SIGNIA

Ingenico says its eN-Concert Signia provides a secure and paperless solution to managing credit card receipts. Signia is a comprehensive signature and image document storage, retrieval and management system that solves the problem of storing and retrieving signatures and credit card receipts while reducing the opportunity for receipt mishandling. Through recently passed identity theft legislation in California, Georgia, Wisconsin and Oregon, injured consumers residing in those states can file lawsuits for civil damages against companies that fail to comply with the statute to destroy customer records by shredding them, erasing them or making them unreadable.

Details

NPC 2Q/02

National Processing reported net income for the second quarter was $12.2 million. Merchant Card Services transaction volume increased to record levels for the second quarter and year-to-date periods. Total merchant transactions processed were 955 million for the quarter and 1.8 billion year-to-date, representing respective increases of 14% and 16% over comparable 2001 volumes. Merchant Card Services dollar volume increased to record levels for the second quarter and year-to-date periods. Total dollar volume processed was $42.9 billion and $82.0 billion for the quarter and six months ended June 30, 2002, representing respective increases of 14% and 16% over comparable 2001 volumes. Revenue for Merchant Card Services increased to record levels for the second quarter and year-to-date periods. Merchant Card Services revenue was $107.6 million and $212.2 million for the quarter and six months ended June 30, 2002, representing respective increases of 13% and 17% over comparable 2001 amounts. For complete 2Q/02 details on National Processing visit CardData ([www.carddata.com][1]).

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

Details

VASCO NETWORKS

Brussels-based VASCO Data Security International reported that during the first half this year, VASCO has signed over 50 new resellers and has given product and market training to over 400 IT professionals
worldwide. Since VASCO’s refocus on its indirect sales channel beginning in the fourth quarter, sales of its VACMAN Server products with Digipass into the corporate access market have increased sequentially by
60%, and 114% over the last 2 quarters. VASCO’s sales into this market represented approximately 25% of its total revenues in the second quarter.

Details

ACH DEAL

Accesspoint’s Processing Source International subsidiary has entered into an agreement with The Provident Bank to enable the Company to provide ACH processing services to its merchant clients. Management anticipates that this new relationship with Provident will be a strong asset for the Company and represents the next step in its growth and expansion strategy.

Details

ADS 2Q/02

Alliance Data Systems reported that total second quarter revenue increased 12% to $205.5 million compared to $183.7 million for the second quarter of 2001. Cash earnings increased 27% to $10.7 million, compared to $8.4 million for the second quarter of 2001. Transaction Services revenue increased 11% to $129.9 million compared to $117.2 million for the second quarter of 2001. Credit Services increased revenue 19% to $77.3 million compared to $65.2 million for the second quarter of 2001. Private label credit sales increased 21% driving fee income and portfolio growth. Marketing Services revenue increased 11% to $58.1 million compared to $52.2 million for the second quarter of 2001. For complete details on ADS’ 2Q/02 performance visit CardData ([www.carddata.com][1]).

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

Details

SEARS ACCEPTANCE

Sears is upgrading its private label card to a card with expanded acceptance by this time next year. Global Payments will be the Sears payment gateway for processing services offered to the Sears strategic partner companies, under an agreement recently reached between the two companies. In addition, Global will work with existing processors of those companies partnering with Sears in order to implement the program. Through this program, acceptance for its 40 million Sears cardholders, would be broadened to strategic partner businesses. The merchants may include airline, hotel, restaurants, fuel, supermarkets and entertainment companies that do not compete directly with Sears. To-date Sears has converted 20 million of its customers to its Gold MasterCard program, according to CardData ([www.carddata.com][1]).

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

Details

ITS & 724

724 Solutions and International Turnkey Systems have expanded their current reseller agreement. ITS, a leading systems integrator in the Middle
East, has successfully implemented 724 Solutions Frameworks to several clients and will now offer an expanded range of solutions targeting the region’s banks and mobile operators. ITS will now offer clients a range of award winning and market proven solutions including 724 Solutions Alerts, Command Banking and Credit Card/Fraud Reduction solutions, Pre-Paid Top-Up, the 724 Solutions Payment Server and the 724 Solutions Mobile Internet Gateway. 724 Solutions first entered the Middle East market in early 2001, when it forged an agreement with ITS to provide mobile banking services for three of the leading banks in the Middle East.

Details

SCHLUMBERGER-SEMA 2Q/02

SchlumbergerSema reported that operating revenue of $853 million in the second quarter increased 2% sequentially despite the continued downturn in the IT services industry. The slight revenue increase reflected stronger mobile communication cards activity, a higher level of IT services in the UK, and euro-dollar exchange rate gains that were partially offset by lower activity in the Energy & Utilities and Telecommunications segments in North America. Compared to last year revenue fell 3%. Pretax operating income of $10 million increased $9 million sequentially due to the effect of the cost synergy plan and as a result of higher margins in smart cards across all markets as well as in IT consulting and systems integration in the UK. Compared to last year pretax operating income improved by $23 million due to cost synergies, which were partially offset by lower overall margins especially in smart cards. The cost reduction plan, announced 12 months ago, achieved $148 million in savings across the organization, exceeding the initial goal of $140 million. Volume Products revenue of $201 million decreased 6% versus the same period last year but increased 7% sequentially. The sequential revenue increase was due primarily to significantly higher demand for smart cards across all the GeoMarkets and market segments. Pretax operating income of $6.3 million improved compared to last quarter.

Details