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.

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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.

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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

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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.

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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.

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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

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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

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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.

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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.

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GEMPLUS AWARD

Gemplus has been awarded Frost & Sullivan’s Market Value Leadership Award for its exceptional performance in the smart card market. Gemplus maintained the lead in unit shipments of smart cards, accounting for a phenomenal 33.6 per cent of the market in 2001. The award recipient turned in an equally convincing performance in revenue terms, claiming a remarkable 27.8 per cent of the overall market.

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CITIGROUP 2Q/02

Citigroup reported that its global consumer businesses generated 25% income growth during the second quarter, with strong customer volume growth in cards, retail banking and consumer finance. The cards division which now serves 108 million accounts in 47 countries, increased income by 34% to $744 million on the strength of a 38% increase in North America, which included the card operations of Banamex. CitiCards, the company’s primary brand in North America, experienced receivables growth of 4% to $108 billion. For CitiCards and Diners Club, revenue growth of 16% was driven by margin expansion from lower funding costs and risk-based pricing. Second quarter domestic charge volume was $62.0 billion and international volume was $10.4 billion. Second quarter charge-offs were 6.23% while 90+ day delinquency was 1.84%. The return on managed card assets was 2.43% For more details on Citigroup’s 2Q/02 performance visit CardData ([www.carddata.com][1]).

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

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METRIS 2Q/02

Metris Companies/Direct Merchants Credit Card Bank reported a net loss for the second quarter and and said it is not issuing earnings guidance for the remainder of this year. The second quarter loss was $36.4 million. The managed credit card loan portfolio at June 30, was $11.7 billion, a decrease of $81 million during the quarter. In the second quarter, Metris added over 250,000 new credit card accounts, resulting in a total of 4.8 million accounts. Credit card charge volume decreased 14% to $2.2 billion in the second quarter of 2002, compared to $2.5 billion in the second quarter of 2001. For the first six months of 2002, credit card charge volume was $4.3 billion, a 6 percent decrease from the same period in 2001. Managed credit card fees, interchange and other credit card income decreased 19% to $127.0 million for the second quarter from $156.1 million in the second quarter of 2001. The managed net charge-off rate was 15.0% for the second quarter of 2002, compared to 13.0% for the prior quarter and 10.9% for the second quarter of 2001. The managed delinquency rate was 10.2% for 2Q/02, compared to 9.8% at the end of 1Q/02, and 8.3% one year ago. For complete details on Metris’ 2Q/02 performance visit CardData ([www.carddata.com][1]).

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

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