AUTHENT-IC B2B

Korean Exchange Bank and the Chohung Bank have selected Oberthur Card Systems to provide them with Identrus-certified smart card-based solutions. Chohung and KEB are the first Identrus financial institutions to go live in Korea. The solution, commonly referred to in the marketplace as “Black Box for Identrus Members,” will enable the two Korean banks to conduct business on the global PKI network of trust created by Identrus. It will allow them or their clients to identify one another, perform secure online electronic communications and transactions and create an indisputable transaction record. The Oberthur solution ­ called “AuthentIC B2B” ­ includes a Java Card, a PC/SC card reader and customizable client software. Oberthur recently delivered Identrus solutions to the Nordea Group, a banking group in the Nordic region.

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PREPAID PHONE CARDS

China Railway Communication Co. Ltd has formed a partnership with Hong Kong-based Elephant Talk Communications, Inc. for VoIP services and pre-paid calling cards. ChinaRailcom will market the co-branded products via its retail chains, while ElephantTalk will contribute its reseller channels in the United States and major cities internationally. ChinaRailcom has recently set up a long-distance communication network, a local switching network, a data network and a paging network. ElephantTalk has recently reached agreements with JiTong Network Communications Company Limited and China Netcom Corporation Limited, and is acquiring regional operators like GridTel.Net Limited to expand its reach throughout Greater China and Asia.

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PROBE CLIENT

Nottingham-based Experian has signed TSYS to implement Experian’s Probe strategy management software. The software will enable TSYS credit card clients to improve process efficiency by being able to more quickly tailor their account management strategies to fulfill the needs of the customer, ultimately resulting in better offers and services throughout the customer life cycle. TSYS has more than 229 million accounts on file. Experian is a subsidiary of GUS plc.

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MBNA Stock

MBNA Corporation announced Thursday a three-for-two stock split of its common shares. This will be effected in the form of a dividend, with one additional common share issued on July 15th for every two common shares held by stockholders of record as of the close of business on July 1. This will be MBNA’s seventh stock split since the company’s IPO in 1991. Over that time frame, the annual increase in MBNA’s common stock has averaged over 35%. MBNA Corporation has $98 billion in managed loans. MBNA closed yesterday at $35 per share. For complete details on MBNA’s most recent performance visit CardData ([www.carddata.com][1]).

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

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EDEKA ESL

A new Edeka supermarket to open soon in Luneburg has ordered 12,000 NCR RealPrice electronic shelf labels. ESLs are wireless digital tags that attach to shelves or other store fixtures. They display the price of merchandise or food items in large, clear characters and provide other information to shoppers or store personnel. Price discrepancies between shelf and checkout are eliminated because NCR RealPrice is linked to the same computer file used by the store’s point-of-sale system. This will be the second ESL installation for an Edeka store owned by the Bergmann family. The company recently installed 8,000 NCR RealPrice labels in its Adendorf.

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Charge-offs Dip

Bank credit card charge-off rates declined in May 2002 among both credit card bonds and issuer-owned receivables. April charge-offs for receivables held in trusts of rated credit card-backed securities declined to 7.40% from 7.60%, while the figure for non-securitized receivables dropped from 6.63% to 6.59%. According to Standard & Poor’s, the decrease in the index loss rate among credit card bonds was attributable to a marked decline in MBNA Master Card Trust II’s loss numbers. MBNA’s loss numbers declined by 150 bps to 5.5% from 6.9% in March. MBNA’s March loss number was artificially high as a result of the company’s policy to waive delinquency status following the events of September 11th. The loss trends for the other trusts in the indexes were mixed. One-half of the trusts reported increases. The delinquency rates dropped 15 bps in April compared with March. Three quarters of the trusts reported an improvement in the 30-plus and 60-plus day delinquency buckets. For the 90-plus day delinquencies, over 85% reported a relative decline compared with a month ago.

CREDIT CARD-BACKED SECURITIES PERFORMANCE
Performance month Apr 00 Apr 01 Feb 02 Mar 02 Apr 02
Yield (%) 18.9 19.8 18.4 19.5 18.3
Charge-offs (%) 5.6 6.6 6.7 7.6 7.4
Delinquencies (%) 4.2 4.9 5.5 5.3 5.2
Payment rate (%) 15.4 15.5 14.9 16.2 15.6
SOURCE: Standard & Poor’s

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SAP & MC ERP

Walldorf-based SAP Integration and Certification Centre has certified MasterCard’s ERP Integration Program as an interface software to SAP software solutions. The Program is a software solution that integrates transaction data from MasterCard commercial cards into an organization’s SAP solution-based environment. Through MasterCard’s ERP Integration Program, an organization can obtain full details of a transaction for review within 48 to 72 hours after the purchase has been made, anywhere in the world, so that irregularities can be immediately picked up. One of the first sites worldwide to install MasterCard’s ERP Integration Program is the Fancourt Hotel and Country Club Estate in George, South Africa. Staff at the resort currently use MasterCard Corporate Purchasing Card cards issued by BOE Bank and leverage the MasterCard’s ERP Integration Program solution. In the USA, the ERP Integration Program is called SmartLink.

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MCS Ownership

The 1998 marriage between GE and Bank One that produced Monogram Credit Services has ended. The firms announced Thursday that their joint venture in their $3.8 billion private-label credit card business has ended as GE Capital has purchased Bank One’s stake. Bank One indicated it wants to focus on its bank credit card business. Formed as a 50/50 joint venture in December 1998, Monogram Credit Services, based in Kettering, Ohio, provides private label financing programs. Monogram targets national and regional retailers in six key industries: automotive/recreational vehicles, consumer electronics and appliances, furniture, floor covering, jewelry and health care. MCS is operated by GE Card Services. Currently, MCS supports a diversified portfolio of more than 60 clients with merchants in over 60,000 locations, including: Ford, Sony, PC Richard & Son, Tweeter, Ultimate Electronics, Suzuki, Ethan Allen, Brandsmart USA, H.H. Gregg Electronics, Whitehall Jewelers, Shaw Industries and Mohawk Industries. GE Capital has assets of $425 billion and Bank One has assets of more than $260 billion. Bank One, which owns the First USA portfolio, is currently phasing out its use of the First USA to strengthen the Bank One brand.

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ATM SALES

The Central Bank of the Russian Federation reveals that there are currently only 40 ATMs per million people in Russia compared to 1,200 ATMs per million people in the USA and 553 ATMs per million people in Western Europe. Several banks have recently expanded their ATM networks including: Bank Vozrozdenie, Industrial and Construction Bank, Bank Baltyisky, Alfa-Bank, and Bank of Moscow. Bank Vozrozdenie has extended its long-standing relationship with NCR by ordering 70 NCR Personas ATMs. In St. Petersburg and the northwestern region, Industrial and Construction Bank and Bank Baltyisky have signed contracts for 45 and 50 ATMs, respectively. NCR will supply Alfa-Bank with 150 ATMs. At the end of 2001, Bank of Moscow awarded NCR a contract for the delivery of 400 ATMs over a two-year period.

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E-Billing Pays

A new study has found that, on average, B2B billers save approximately $7.25 per invoice viewed and paid over the Internet, while B2C billers save about 55 cents per invoice via e-billing. According to CT-based Gartner, the average large U.S.-based company sending invoices to businesses over the Internet can save at least $5.7 million per year, while the average large company sending invoices to consumers via e-billing can save at least $13.1 million per year. B2B payers can save at least 1% of payables because of faster payments on direct purchases. Gartner says in the B2B world, ROI can be achieved when just 2.3% of bills are viewed and paid over the Internet. B2C billers are able to achieve ROI with as little as a 9% adoption rate.

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Discover Driving Promotion

Discover Financial Services has launched the Great American Drive promotion which offers cardholders a free Mobil Travel Guide Road Atlas along with discount coupons for hotels, restaurants, and amusement parks. The coupons are valid from now until October 31 (unless stated otherwise) and can be downloaded online that so Cardmembers will always have an ample supply at their fingertips.

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