SUREFIRE DEAL

Montreal-based SureFire Commerce has completed an outsourcing agreement with a European financial services company. SureFire is trying to return to profitability and has streamlined its back office tasks by partnering with financial services providers. The Company will begin outsourcing certain processing functions this quarter. SureFire Commerce processes credit card payments for Internet, mail-order/telephone-order, and bill payment transactions, as well as processing checks online and by phone.

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Fleet 2Q/02

FleetBoston’s domestic credit card portfolio contracted by 3.5% during the second quarter, while net income slipped by 6%, compared to the prior quarter. Active credit card accounts also declined by 168,000 between April 1st and June 30th. The nation’s 10th largest issuer reported second quarter charge volume of $5,560,000,000, a slight increase over the second quarter of 2001. Managed delinquency dipped from 3.97% for 1Q/02 to 3.74% for the second quarter. However, managed charge-offs increased from 5.42% to 5.81% during 2Q/02. Fleet card customers generated $409 million in revenues and $41 million in second quarter profit compared to $410 million in revenues and $47 million in profits during the first quarter of this year. For complete details on Fleet’s latest portfolio performance visit CardData ([www.carddata.com][1]).

FLEET PORTFOLIO SNAPSHOT
2Q/02 1Q/02
Recv: $14,679,000,000 $15,211,000,000
Vol: $ 5,560,000,000 $ 5,794,000,000
Accts: 7,265,000 7,164,000
Actives: 5,369,000 5,537,000
Cards: 11,503,000 11,363,000
Source: CardData (www.carddata.com)

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

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LOTTERY TRANSACTIONS

Pagic.net and Hypercom have teamed to create and install a customized transaction communications network for the Taiwan Lottery. The new network is now handling the transmission of more than 10 million lottery ticket purchases daily, or a projected 3.65 billion transactions annually, between Pagic.net and more than 7,000 online and in-store retail lottery retailers. Hypercom’s “IEN 6000” integrated enterprise network access devices are employed for the transmission of millions of data packets between Lottery Taiwan Service Corporation’s host computer and Taiwan lottery retailers. The customized, scalable network, which uses X.25 protocol at the central and remote sites, has a capacity to conduct more than 40 million transactions a day, or more than 14 billion transactions every year.

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EDC HIRES BURELLI

Edgar, Dunn & Company has named payment card expert Francesco Burrelli as engagement manager in the company’s London office. Burelli will oversee the growth and expansion of EDC’s client roster in Italy. As a business strategist with more than a decade of experience in banking and card payment services industries, Burelli, has carved out professional specialties in e-business and customer value management (CVM), and will offer this knowledge in a wide range of EDC client engagements throughout Europe. Burelli also has extensive experience in card payment profitability issues including dispute management and credit counselling management.

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BofA 2Q/02

Bank of America reported this morning that it added more than $500 million to managed credit card outstandings during the second quarter, a 2% increase over the first quarter. The surge was driven by new account purchase volume and an increase in balance transfers. However, card profits were only up slightly from last year, and down by 21% compared to the first quarter. Over the past twelve months BofA’s credit card outstandings have increased 9%, to end the second quarter at $27.1 billion. Total card revenues for 2Q/02 were $821 million with net pre-tax income of $189 million. Net income for 1Q/02 was $240 million, and for 2Q/01 it was $183 million. However, charge-offs, as a percentage of average receivables, hit 5.59% for the second quarter compared to 4.94% one year ago. BofA’s delinquency rate also edged up from 5.45% one year ago to 5.54% for 2Q/02. The 30+ day delinquency rate was 3.78% for 2Q/02 compared to 3.81% one year ago, but 90+ day delinquency rose from 1.64% for 2Q/01 to 1.76% for second quarter 2002. BofA also noted this morning that active debit cards increased 8% and purchase volumes rose 15% from a year ago. For complete details on BofA’s latest portfolio performance visit CardData ([www.carddata.com][1]).

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

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INFOCORP DEAL

Winnipeg-based Infocorp Computer Solutions has been selected by Service New Brunswick to install its Access2Gov solution on over 200 cashier stations at more than 30 service centers, outlets and registry mapping offices across the province of New Brunswick. Infocorp’s Access2Gov solution is a proven POS cashiering, reconciliation and revenue management product that will be fully integrated with the province’s departmental systems and general ledger systems. Ultimately, transaction management from other channels, including the Internet, will be consolidated onto the Access2Gov revenue management platform.

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Overall Delinquency

An annual study shows that the dollar delinquency rate of 1.86% at year-end 2001 is the highest delinquency rate reported by respondents in consumer lending over the last ten study periods from 1993 to 2002. Atlanta-based BenchMark Consulting International says this is the most significant increase in 10 years of the study. The study, which also encompasses consumer loan and credit card portfolios, found the overall consumer loan dollar charge-off rate (i.e., dollars charged off divided by delinquent dollars) has raised slightly from 5.1% to 5.5% yearly. Other findings include: the composite average consumer loan dollar and account portfolio is approximately 24% larger than that of 2001. An analysis of repeat participant data validates both the portfolio dollar size increase (22% larger for repeat participants) and the delinquent dollar size increase (31% rate rise for repeat participants); an analysis of repeat participant data substantiates the trend as their cumulative charged off dollar increase (44%) is slightly higher than the delinquent dollar increase (39%) resulting in a slight rise in the dollar charge-off rate year-over-year; and bankruptcies as a percent of charge off dollars are slightly higher this year than those levels reported by last year’s respondents (27% vs. 22%). Consumer loan dollar recovery rates are continuing a three-year pattern of decline.

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USWD & NYCE

U.S. Wireless Data and NYCE have agreed to work together to provide “Synapse” wireless technology as an optional service to NYCE’s ATM terminal deploying clients. By replacing the dial-line connection, it simplifies ATM installation and relocation and helps reduce operating costs for NYCE’s ATM deploying clients. USWD now handles more than 600 million transactions each year through its centralized computer center and nationwide network.

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Direct Connection

MasterCard International announced it has established automatic data feeds from its Global Data Repository in St. Louis to six leading travel expense management solution providers. The direct connections enable organizations using MasterCard commercial cards to access their employees’ transaction data anytime, anywhere, helping to auto-populate and reconcile expense reports while enhancing productivity and control over general business expenses. MasterCard’s participating solution providers include: Captura, Concur, Extensity, Gelco Expense Management, Necho, and SPS International.

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RSS Gift Card

RI-based Retail Store Systems launched an electronic gift card payment system running on the IBM “eServer pSeries,” for Bob’s Stores throughout Connecticut, Massachusetts, New Hampshire, New York, Rhode Island and New Jersey. Bob’s electronic gift card system runs on the IBM eServer pSeries, and communicates with the IBM POS 4694 in each of Bob’s 37 stores. The IBM POS 4694 sends requests to the pSeries in order to sell, redeem, and inquire about electronic gift certificate accounts. Electronic Gift Cards are available online and in all of Bob’s Stores locations.

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Diners & MasterCard

The Citigroup and MasterCard relationship deepens as MasterCard International announced this morning that Diners Club cardholders will soon have access to cash through its Cirrus ATM Network. Beginning in late August, most Diners Club cardholders with ATM PINS will be able to get cash with their Diners Club cards at ATMs in the global Cirrus ATM Network. Diners Club cardholders around the world will soon be receiving announcements about this expanded cash access through statements, newsletters and a global advertising campaign that includes in-flight magazines and airport signs in key international markets. New cards will start to carry the Cirrus logo on the back as the program rolls out. The Cirrus network has more than 790,000 ATM locations in more than 100 countries.

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