BANK CARDS Security Features of Paper Travelers Cheques and Add the WORLDWIDE Benefit of ATM Access

ISSUE #824 DECEMBER 2004

FOR 34 YEARS, THE LEADING PUBLICATION COVERING CONSUMER PAYMENT SYSTEMS WORLDWIDE TOP BANK CARD ISSUERS WORLDWIDE – 2003 The top 100 issuers of Visa and MasterCard credit, debit, and prepaid cards worldwide, based on total volume of purchases of goods and services and cash advances/with- drawals, are shown in the table on page 10. The figures are for calendar year 2003 as reported to Visa and MasterCard. Tables on pages 8 and 9 list the 50 largest countries based on volume in U.S. dollars of the following: purchases and cash generated by all cards issued within each country, volume of purchases and cash in U.S. dollars on a per card basis for each brand in each country, the … (turn to page 6)

AMEX PREPAID CARDS OUTSIDE THE U.S. The new name for the TravelFunds card product Amex launched a year ago is Travelers Cheque Card. The cards combine the BANK CARDS security features of paper travelers cheques and add the WORLDWIDE benefit of ATM access. They are not linked … (turn to page 3) TOTAL PURCHASE VOLUME VOLUME CHECK CASHING KIOSK The CashWorks subsidiary $4.312 $2.783 of GE Consumer Finance has been providing check cashing 1 trillion trillion services for 2 ⁄2 years using special software in POS terminals at 3,000 U.S. locations. Now the company plans to United States deploy an ATM-like, self-service kiosk to … (turn to page 3) TOTAL VOL. PURCHASE VOL. 40.4% 47.9% PURPLE CREDIT CARD IN THE U.K. Coutts & Co., a Europe private bank in the U.K. owned by the Royal Bank of TOTAL VOL. PURCHASE VOL. Scotland, has started the select marketing of a 30-day credit 30.3% 30.4% card to its upscale clients. Those clients must have at least £500,000 ($964,000) in liquid assets or … (turn to page 8) Asia/Pacific TOTAL VOL. PURCHASE VOL. COMPUCREDIT SUBPRIME CARDS The sixteenth 18.5% 13.7% largest bank credit card issuer in the United States, a spe- Latin America cialist in the subprime customer market, managed 2.4 mil- TOTAL VOL. PURCHASE VOL. lion accounts on file as of September 30 of this year. 5.4% 2.5% CompuCredit, a specialty finance company … (turn to page 8) Canada PAYMENT CARD MANUFACTURING – 2003 TOTAL VOL. PURCHASE VOL. Companies that manufacture high-security cards, as well as 3.0% 4.1% nonsecure cards used to initiate purchases of goods and Middle East/Africa services, shipped 4.38 billion units in 2003 — up 11.8% from TOTAL VOL. PURCHASE VOL. 3.92 billion in the prior year. … (turn to page 4) 2.4% 1.5% INSIDE: Fast Facts–2 M.POS Mobile Terminal–2

© HSN Consultants Inc. 2004 THE NILSON REPORT Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is a copyright violation subject to substantial fines. Yearly Subscription: 23 issues—$995 Worldwide. ISSN 1087-8718 THE NILSON REPORT: 1110 Eugenia Place, Suite 100, Carpinteria, CA 93013 USA • PHONE (805) 684-8800 • FAX (805) 684-8825 • [email protected] FAST FACTS FAST FACTS FAST FACTS FAST FACTS FAST FACTS FAST FACTS FAST FA EXPERIAN’S new DecisionOne Web-based credit-decision HYPERCOM’S HBNet network for dial and IP terminals and account-management software for medium to large supports all card payment protocols and formats businesses was developed with LiveCapital, specialists in communication at up to v.92 speeds. SiVault Systems, credit-management software. Mark Zablan is Pres. Business which sells storage and retrieval systems for signed docu- Information Solutions at Experian, (714) 830-5578, ments and biometric signature-based authentication, will [email protected]. Mike Grossman is CEO at resell HBNet to its clients. Emilian Elefteratos is CEO at LiveCapital, (650) 350-3601, [email protected]. SiVault, (408) 321-5100, [email protected]. Sharon Cline is GM at HBNet, (602) 504-5848, [email protected]. GLOBAL PAYMENTS, a top provider of electronic transaction processing services in the U.S., Canada, and MERCANTEC, with 70,000 Web site host and online store- Eastern Europe, has renewed its $175-million (Canadian) front installations for small and medium-sized businesses, revolving credit facility agreement ($146 million U.S.). Jeff has been certified by Authorize.Net’s shopping cart pro- Baker is SVP Strategic Planning & Treasury, (770) 829- gram and now links directly to that company’s payment 8225, [email protected]. gateway to handle card transactions. Bill Tait is CEO at Mercantec, (630) 305-3200 x2116, [email protected]. INFICORP, a subsidiary of First Nat’l of Omaha, will acquire Roy Banks is Pres. at Authorize.Net, (801) 492-6521, Cornerstone Credit Union’s $2.3-million credit card [email protected]. portfolio. Timothy Kolk of Brookwood Capital was the broker, (603) 924-7215, [email protected]. Keith SHOPPER’S CHARGE ACCOUNTS, a division of Hudson Floen is Managing Director at InfiCorp, (404) 965-6040, United Bank, has acquired 49,000 private label card [email protected]. accounts from Marvin’s Building Materials and Home Center. R.K. Hammer was the broker. Hammer has brokered POINTS INTERNATIONAL has signed an agreement with over 800,000 card accounts this year. Robert Hammer is Delta Air Lines SkyMiles, to let its members transfer miles at CEO at RK Hammer, (805) 499-8548, [email protected]. delta.com/transfermiles. Rob MacLean is CEO at Points Ed Fechner is SVP at SCA, (201) 818-4000 x3026, Int'l, (416) 596-6390, [email protected]. Christine [email protected]. Pierce is Director of Partnership Marketing at Delta, (404) 715-9401, [email protected]. MONERIS SOLUTIONS, a top acquirer of payment card transactions, has partnered with SurePayroll, to offer that WHOLESALE PAYMENT SOLUTIONS is the new name for company’s online payroll processing service. Michael Alter is Wholesale Processing Consultants. WPS is an ISO based in Pres. at SurePayroll, (847) 676-8420 x7229, Riverside, California. Adam Pflaumer is President, [email protected]. Patrick Albright is SVP at (951) 781-0853, [email protected]. Moneris, (847) 520-6424, [email protected]. FAST FACTS FAST FACTS FAST FACTS FAST FACTS FAST FACTS FAST FACTS FAST

M.POS MOBILE TERMINAL Hong Kong-based M.POS provides mobile-commerce services and terminals to customers in banking, telecommunications, and other industries. Its flagship product, the M.POS2002 point-of-sale terminal shown, here is a high-security, wireless device with a matching cradle capable of providing sync/async landline communications. The device comes with two batteries. One stays in the cradle and continues to charge while the other is in use in the handset. The M.POS2002 communicates using TCP/IP protocol via public wireless networks including GSM, GPRS, or CDMA. EMV Level 1 & 2 certification has been awarded. Optional nonpayment applications include the sale of prepaid vouchers (which can be stored in a tamperproof space in the device), processing of loyalty transactions, inventory control, Web browsing, text messaging (sending, receiving, and printing out text messages), and the ability to make voice calls. M.POS shipped 10,000 terminals this year, up 27% over calendar year 2003. Terminals are distributed directly by M.POS in Hong Kong and on the mainland of China. The company sells through distributors in all other markets. Alice Cheng is Marketing Manager at M.POS International Limited in Hong Kong, (852) 2116-6125, [email protected]. ᔢ

THE NILSON REPORT NUMBER 824 • DECEMBER 2004 - 2 - Amex (from page 1) … to a bank account. Their advantage over credit cards is that consumers load them with a specific amount budgeted for a particular trip. The rebrand- ed Travelers Cheque Card was recently launched in Germany. According to the Deustche Bundesbank, travelers from that country spend over $55 billion annually and 55% of that amount is in cash. The reloadable cheque cards can carry up to 2,500 euros ($3,250). Reloads can be made by phone or Internet (www.americanexpress.de/tcc). Funds can be denominated in euros, U.S. dollars, or British pounds. Currently, cheque cards are available from all large travel agency chains in Germany, as well as from Lufthansa, Europe’s third largest airline. Travelers Cheque Cards also entitle cardholders to American Express’s 24-hour customer service which helps replace lost or stolen pass- ports or identity cards, trace lost luggage, and cancel lost or stolen debit or credit cards, even those not issued by American Express. Stefan Happ is VP Europe, Travelers Cheques and Prepaid Services at American Express in London, 44 (207) 824-6151, [email protected]. American Express recently launched its first prepaid gift card outside the U.S. Amex chose the city of Fukuoka on Japan’s southern island of Kyushu to test the card. The gifts market in Japan is estimated at $63 billion annually and the average size of a gift is said to be $85. The new American Express Gift Card is accepted for payment at retailers and restaurants that accept American Express cards in Japan. YC Koh is VP & General Manager, Japan, Asia Pacific, Australia at American Express in Singapore, (65) 6880-1688, [email protected]. Prior issues: 823, 820 ᔢ

Kiosk (from page 1) … provide check cashing and other financial services to unbanked and underbanked consumers. The CashWorks kiosk for high-traffic retail locations will not dispense cash — although it can be configured to accept cash from consumers making payments of utility bills and other recurring payments. Instead, the kiosk will authorize payroll, government, and other checks, and then immediately place the monetary value of the check onto a prepaid debit card account held at GE Capital Consumer Card Co., a federal savings bank in Ohio. The cards will carry the Cirrus and Star brands for ATM access and the Maestro and Star brands for PIN-based point-of-sale transactions. New cardholders will select their PINs by using the PINpad at enroll- ment. Will Sowell is General Manager at CashWorks in Dallas, Texas, (214) 387-7131, [email protected]. Source Technologies’ CS7700 Model Kiosk from its Concourse family of card-activated self-service terminals will be the exclusive device deployed by CashWorks. Privately held Source Technologies has been in business for 18 years. The company’s annual revenue will be $50 million in 2004 and is projected to reach $72 million next year. Liberty Partners is majority owner. Source Technologies is the largest manufacturer of desktop MICR printers in the world. It entered the self-service kiosk market in 1999, seeing an opportunity in the off-premises market for terminals capable of doing more than dispensing cash. And like CashWorks, it believed that financial services including bill payments, check cashing, … (turn to page 4)

THE NILSON REPORT - 3 - NUMBER 824 • DECEMBER 2004 Kiosk (from page 3) … and the buying of money orders could be done at less cost to the consumer when clerk assistance is not needed. The CS7700 captures images of the front and back of deposited checks, as well as of the customer’s driver’s license using technology Source Technologies developed in-house. The mechanism to dispense prepaid cards is also proprietary technology. The cash acceptor is technology developed by JCM of Japan. Unlike financial services kiosks operating in 1,000 7-Eleven stores (where CashWorks handles the check cashing), the CS7700 is not a modified ATM. It was developed from the ground up as a check-cashing terminal. CashWorks will handle the sale, lease, or any other arrangement for the deployment of the kiosks. Other Source Technologies clients using less sophisticated card-activated terminals for bill payments are Cox Cable and U.S. Agencies (insurance). Miles Top Payment Card Manufacturers Busby is President at Ranked by shipments of Visa, MasterCard, American Express, Diners Club, Discover, JCB, and ATM Source Technologies in cards, as well as those credit and prepaid cards issued by retailers, oil companies, and others. Charlotte, North Carolina, Excludes telephone and nonpayment cards. (704) 969-7502 ‘03 ‘02 MANUFACTURERS (MIL.) ‘03 ‘02 MANUFACTURERS (MIL.) [email protected]. ᔢ 1 1 CPI Card Group 490.3 42 42 Iris Technologies 9.8 2 4 Arthur Blank 387.0 43 24 PPC Card Systems 8.8 Card Manufacturing 3 3 Perfect Plastic 378.1 44 –– Plastic Card Express 8.5 4 5 Versatile Card Tech. 364.0 45 52 ID Data Systems 8.1 (from page 1) … 5 2 Oberthur 341.0 46 44 Int’l Plastic Cards 8.1 Manufacturers who 6 9 Gemplus 252.0 47 41 RG Equipos 8.0 operate high-security plants 7 –– Trivista 270.0 48 46 IC Korea 7.9 producing Visa, 8 7 Plastag 250.0 49 47 Thai British Security Print. 7.7 MasterCard, Amex, Diners, 9 8 Jet 250.0 50 35 Ghirlanda 7.2 10 6 Giesecke & Devrient 180.0 51 –– Novo 7.0 Discover, and JCB cards 11 10 Axalto 169.6 52 45 Natec 7.0 must pass annual inspec- 12 11 American Banknote 111.0 53 39 Africard 6.6 tions to maintain certifica- 13 12 Ruwaplast 66.3 54 48 Able Card 6.5 tion. They produced 1.42 14 14 IntelCav 61.4 55 50 Hogier Gartner 6.5 billion cards last year. This 15 13 Innovative Plastic 55.5 56 54 Yuen Foong Paper 5.5 was up 6% from the prior 16 43 Allegheny Plastics 50.0 57 –– Impresna 5.0 17 16 Perma-Graphics 42.5 58 –– Setec 5.0 year and represented 32% 18 68 Jing King 40.0 59 57 Teraco 5.0 of all payment cards pro- 19 21 Keystone Manufacturing 36.1 60 58 Radece Papir 5.0 duced in 2003. Nonsecure 20 17 Printoplast 34.2 61 59 Nitecrest 4.8 payment cards include 21 19 Performance Printing 30.8 62 49 KDN Smartec 4.7 automated teller machine 22 22 Tag Systems 28.0 63 67 Sagem 4.6 23 20 Trub 25.0 64 60 Cupola Plastic Cards 4.3 as well as proprietary 24 20 AMS 23.6 65 –– Cardline 4.0 credit and prepaid cards 25 23 Austria Card 23.2 66 63 Sandia Imaging 3.4 issued by retailers and oth- 26 32 Xcard 21.0 67 61 CSM 3.2 ers. ATM cards are used 27 26 Taiwan Name Plate 20.9 68 –– Plastic Resource 2.6 with PINs or require online 28 27 Security Plastics (N.Z.) 19.6 69 –– Grafocard 2.4 authorizations for all 29 25 NamITech 19.3 70 64 Mantegazza 2.3 30 31 Kyodo Printing 16.6 71 53 Multicard 2.0 merchant transactions. 31 33 SAETIC 16.6 72 62 Graphic Technology 1.8 Production of ATM cards 32 72 A Card 15.5 73 70 Willone 1.7 dropped to 470.4 million in 33 51 Thames Card Technology 15.0 74 69 Microelectronica Espanola 1.7 2003 from 614 million the 34 30 JDC Tech. 14.8 75 –– Novacard 1.5 prior year. Credit and pre- 35 36 Shoei Printing 13.0 76 66 Siepmann’s 1.5 paid (mostly gift) cards 36 29 Metaca 12.1 77 74 US1.com 1.4 37 28 Fesa 11.5 78 73 NexSmart 1.4 shipped to retailers reached 38 34 Toppan Forms (Hong Kong) 11.1 79 55 Orga 1.0 2.31 billion, up 20% from 39 37 Ask 10.3 80 –– Card USA 0.7 2002. Prior issues: 800, 799, 40 38 Advanced Products 10.1 Others include M-Tech, Pikappa, Permalith, 775, 774, 773 ᔢ 41 40 StoneHouse Marketing 10.0 Korea Toppan Forms, Rosan Finance.

THE NILSON REPORT NUMBER 824 • DECEMBER 2004 - 4 - Other Issuers Banco de Venezuela Venezuela . $0.30 0.31 Latin America Citibank Argentina...... $1.14 0.34 Bank of Butterfield Bermuda . . . $0.30 0.06 Santander Banespa Brazil...... $1.10 3.47 Banco Nacional Costa Rica. . . . . $0.26 0.76 VOLUME CARDS Banorte Mexico...... $1.07 4.17 Banco Comercial Uruguay . . . . . $0.26 0.19 ISSUER, COUNTRY (BIL.) (MIL.) Argencard Argentina ...... $1.06 1.88 Citibank Colombia ...... $0.26 0.15 1 BBVA Bancomer Mexico $35.25 15.25 BanColombia Colombia ...... $1.02 0.42 Banco Caja Social Colombia . . . $0.26 0.26 2 Banamex (Citibank) Mexico $26.53 12.89 BBVA Peru ...... $1.02 0.79 RBTT Bank Trinidad & Tobago . . $0.25 0.06 3 HSBC Mexico $15.44 4.51 BanCafe Colombia ...... $0.89 0.77 Credito Nicaragua ...... $0.22 0.17 Redeban Multicolor Colombia . . $0.88 0.97 Banco de Costa Rica Costa Rica $0.22 0.98 4 Santander Serfin Mexico $6.93 4.45 BankBoston Argentina ...... $0.84 0.29 Banco Mercantil Venezuela . . . . $0.19 0.29 5 Banco do Brasil Brazil $6.16 28.05 BBVA Argentina ...... $0.81 1.12 BBVA Puerto Rico ...... $0.18 0.10 6 Bradesco Brazil $5.56 41.10 HSBC Brazil ...... $0.77 0.72 Aval Card Costa Rica ...... $0.17 0.12 7 Banco de la Provincia Arg. $4.75 1.30 Banco Santiago Chile ...... $0.72 0.40 Banco Cuscatlan El Salvador . . . $0.13 0.33 BBVA Brazil ...... $0.70 0.62 BanSuperior Colombia...... $0.12 0.12 8 Banco Itau* Brazil $3.65 5.80 Banco Provincial Venezuela . . . . $0.70 0.43 Lloyds Bank Argentina ...... $0.10 0.17 9 Credicard Brazil $3.57 6.90 Bank of Bermuda Bermuda. . . . . $0.67 0.06 Maduro & Curiel’s Ne. Antilles. . $0.10 0.06 10 Banca Promex Mexico $2.71 1.11 Banco Rio de la Plata Arg...... $0.66 1.41 BRB Banco de Brasilia Brazil . . . $0.08 0.26 11 Unibanco Brazil $2.64 2.63 BankBoston Brazil ...... $0.64 0.59 Banco BHD Dominican Rep.. . . . $0.08 0.09 Bancredito Dominican Republic. $0.61 0.51 Banco Agricola El Salvador. . . . . $0.08 0.08 12 ABN Amro Real Brazil $1.95 5.67 BBVA Chile ...... $0.54 0.30 Cayman Nat’l Cayman Islands . . $0.07 0.02 13 Banco Galicia Argentina $1.75 1.90 Banco de Credito BCP Peru . . . . $0.46 1.82 RBTT Bank Ne. Antilles ...... $0.06 0.01 14 Grupo Union Venezuela $1.34 0.97 Banesco Venezuela...... $0.36 0.75 BAC Credomatic Honduras. . . . . $0.06 0.12 15 BBVA Banco Ganadero Col.$1.15 1.39 Pacificard Ecuador ...... $0.30 0.15 RBTT Bank Jamaica ...... $0.04 0.02 Republic Bank Trinidad & Tob.. . $0.30 0.12 Caribbean Credit Card St. Kitts . $0.02 0.01 *Credit cards only. 2004 The Nilson Report

Other Issuers United States Provident Maryland ...... $0.95 0.23 AmSouth ...... $3.57 1.67 FDS Bank...... $0.95 0.83 VOLUME CARDS TCF ...... $3.54 1.49 Bank of New York ...... $0.95 0.38 ISSUER, COUNTRY (BIL.) (MIL.) Charter One ...... $3.21 1.30 Digital Employees FCU...... $0.93 0.31 1 Citibank $234.68 106.44 Juniper ...... $3.18 0.93 Golden 1 CU...... $0.88 0.36 M&T Bank $3.10 1.40 BMO Harris Bank ...... $0.88 0.38 $179.80 56.06 ...... 2 Bank One First North Amer. National . . . $3.08 3.11 Bank of the West ...... $0.84 0.41 3 MBNA $147.27 56.07 Compass ...... $2.99 1.42 Suncoast Schools FCU ...... $0.81 0.31 4 Bank of America $131.20 58.40 Commerce Missouri...... $2.97 1.14 Commercial Federal...... $0.80 0.31 5 JPMorganChase $100.77 43.62 World Savings ...... $2.90 1.90 RBC Centura...... $0.78 0.33 6 Capital One $87.83 53.17 State Employees CU N.C...... $2.58 0.66 People’s ...... $0.77 0.35 7 U.S. Bancorp $57.71 13.38 Town North...... $2.45 1.12 Penn State Employees CU . . . . $0.76 0.37 8 Wells Fargo $52.03 22.80 LaSalle ...... $2.44 1.09 Security Service FCU ...... $0.74 0.46 Sovereign $2.21 0.95 TIB ...... $0.72 0.38 $41.94 36.42 ...... 9 HSBC First Tennessee...... $2.12 0.71 BOK Financial...... $0.69 0.27 10 Fleet $34.15 16.70 State Farm ...... $1.99 0.57 Cross Country...... $0.68 1.10 11 USAA Fed. Savings $18.65 5.44 Huntington National ...... $1.86 0.63 BancorpSouth...... $0.66 0.38 12 Washington Mutual $17.54 9.45 Regions Financial ...... $1.81 0.63 Randolph-Brooks FCU...... $0.66 0.23 13 Wachovia $16.46 5.22 Nordstrom...... $1.64 1.21 Arvest Bank ...... $0.63 0.26 14 Providian $16.44 12.30 Union Planters ...... $1.62 0.71 National City ...... $0.63 0.38 15 Navy FCU $11.29 4.93 Hibernia National ...... $1.59 0.53 Vystar CU ...... $0.62 0.30 Comerica $1.56 0.50 Webster ...... $0.61 0.22 $9.01 1.51 ...... 16 Merrill Lynch BankNorth...... $1.51 0.78 Iowa League Corp. Central CU $0.60 0.39 17 NetBank $7.76 2.69 FirstBank (Colorado) ...... $1.46 0.34 San Diego County CU...... $0.60 0.20 18 Fifth Third $7.73 3.69 First Citizens B&T N.C...... $1.46 0.34 Patelco CU ...... $0.57 0.17 19 Citizens Bank (R.I.) $7.55 3.56 E*Trade ...... $1.45 0.44 Trustmark ...... $0.57 0.32 20 FNB Omaha $7.53 4.90 First Hawaiian ...... $1.45 0.41 Intrust Bank of Wichita ...... $0.53 0.17 21 Target $7.37 11.37 Boeing Employees CU...... $1.37 0.43 Bank of Hawaii ...... $0.53 0.20 22 GE Capital Financial $7.35 0.81 Associated ...... $1.32 0.30 Arizona FCU ...... $0.53 0.22 M&I $1.27 0.72 Wilmington Trust...... $0.51 0.14 $7.04 1.06 ...... 23 Advanta FirstMerit...... $1.20 0.45 Wright Express ...... $0.51 0.68 24 SunTrust $6.75 2.66 Columbus B&T ...... $1.18 0.41 Wescom Credit Union ...... $0.51 0.23 25 PNC $6.55 2.78 Zions ...... $1.17 0.58 Bellco Credit Union ...... $0.51 0.23 26 ICBA $6.31 3.81 Union Bank of California . . . . . $1.17 0.67 First Consumers National. . . . . $0.50 0.12 27 Direct Merchants $5.90 4.20 Pentagon FCU ...... $1.12 0.39 Delta Employees CU ...... $0.49 0.13 28 Branch B&T $5.28 2.40 UMB...... $1.06 0.56 Mountain America CU ...... $0.48 0.14 29 SouthTrust $4.35 1.12 CompuCredit ...... $1.03 3.20 Whitney National ...... $0.48 0.11 First Premier $1.01 2.88 Astoria Federal Savings ...... $0.48 0.47 $3.60 3.50 ...... 30 KeyBank America First CU (Utah) ...... $0.98 0.37 Desert Schools FCU...... $0.47 0.19 © 2004 The Nilson Report Orange Co. Teachers FCU. . . . . $0.96 0.35 Municipal CU ...... $0.45 0.18

THE NILSON REPORT - 5 - NUMBER 824 • DECEMBER 2004 Top Issuers (from page 1) … number figures it reports, Maestro volume and cards are not reported here. Among Canada Other Issuers of cards in circulation issued by Visa the top 100 issuers, 37 were from Europe, 28 were from the U.S., 19 were National Bank of Canada ...... $4.37 2.11 and MasterCard members within from Asia/Pacific, 7 were from Latin America, 6 were from Canada, and 3 VOLUME CARDS Canadian Tire ...... $4.25 3.70 ISSUER, COUNTRY (BIL.) (MIL.) Capital One ...... $4.04 2.24 each country, and the number of pur- were from the Middle East/Africa. At year-end 2003, there were 1.84 billion Citibank ...... $3.23 1.62 chase (no cash) transactions at mer- Visa and MasterCard cards in circulation. These generated total volume of 1 Canadian Imperial(CIBC) $37.75 5.98 President’s Choice Bank ...... $2.49 0.80 chants generated by cards issued $4.312 trillion, including purchase volume of $2.783 trillion. The U.S. contin- 2 Royal Bank of Canada $21.28 6.75 CU Electronic Trans. Serv...... $1.77 0.87 within each country. ued to be the largest world region, but Europe gained ground. At the end of 3 Bank of Montreal $16.01 10.73 U.S. Bank ...... $0.89 0.12 ATB Financial ...... $0.59 0.13 Tables on pages 5, 6, and 7 list 2001, the U.S. accounted for 52.6% of all purchases of goods and services. By $12.85 5.66 4 TD Canada Trust Laurentian Bank ...... $0.44 0.28 top issuers in each world region the end of 2003, its share had fallen to 47.9% — a loss of 4.7 percentage 5 Scotiabank $9.29 3.24 Vancouver City Savings...... $0.39 0.11 Sears ...... $0.26 0.15 ranked by Visa, Visa Electron, and points. Europe gained 4.6 percentage points during the same time. ᔢ 6 Desjardins $5.98 2.32 Bank of America ...... $0.18 0.02 MasterCard volume combined. 7 MBNA $4.53 4.14 Because MasterCard International © 2004 The Nilson Report does not include Maestro volume in Other Issuers Middle East/Africa Nedcor Souh Africa...... $3.11 1.54 VOLUME CARDS Mashreq Bank UAE ...... $1.36 0.20 Credit Libanais $0.79 0.08 Other Issuers HSBC Bank Turkey ...... $0.96 . 1.57 ISSUER, COUNTRY (BIL.) (MIL.) Lebanon ...... Standard Chartered Zimbabwe ...... $0.66 0.21 Europe Svenska HandelsbankenSweden . . . . .$4.85 0.78 TC Ziraat Bankasi Turkey ...... $0.94. 1.00 1 Bank Hapoalim Israel $9.11 1.46 Riyad Bank Saudi Arabia...... $0.26 0.15 HSBC France ...... $4.83 . 0.85 Citibank Turkey ...... $0.91 . 0.55 2 Bank Leumi Israel $7.32 1.20 Attijariwafa Bank Morocco ...... $0.17 0.14 VOLUME CARDS Banesto Spain ...... $4.53 . 1.36 Dresdner Bank Germany ...... $0.91. 0.50 Citibank Egypt...... $0.11 0.08 ISSUER, COUNTRY (BIL.) (MIL.) Swisscard Switzerland ...... $4.20 . 0.65 Unicredito $0.90 0.50 3 ABSA Bank South Africa $6.71 2.91 Italy ...... Barclays Bank Seychelles...... $0.04 0.01 Nat’l Savings & Comm. Bank $4.01 1.59 ING $0.88 0.36 4 National Bank of KuwaitKuwait $4.47 0.57 1 Barclays BankUnited Kingdom $80.10 19.10 Hungary . Belgium...... Ahli United Bank Bahrain ...... $0.03 0.02 BPI Portugal...... $3.94. . 1.15 Kredyt Bank Poland ...... $0.88. 0.40 2 RBS/NatWest United Kingdom $71.54 16.50 5 Standard Bank South Africa $4.38 1.14 NMB Bank Zimbabwe...... $0.01 <0.01 Credit du Nord France ...... $3.84. 0.80 Bank of Cyprus Cyprus...... $0.80. 0.26 6 Kuwait Finance HouseKuwait $3.77 0.43 3 Credit Agricole France $59.91 9.76 Luottokunta Finland ...... $3.61. 1.15 Disbank Turkey ...... $0.77 . 1.01 $3.60 0.59 © 2004 The Nilson Report 4 Lloyds TSB U.K. $59.20 17.03Deutsche Bank d’Italia Italy...... $3.58 3.15 Ceska Sporitelna Czech Republic . . . . $0.76. 2.60 7 Israel Discount Bank Israel 5 Caisse d’Epargne France $38.66 5.24 Morgan Stanley United Kingdom. . . . $3.55. 1.00 Zagrebacka Banka Croatia ...... $0.76. 0.77 National Australia Group U.K...... $3.54 1.45 BHW Bank Germany ...... $0.75 . 0.34 6 Societe Generale France $31.16 3.38 Banco Sabadell Spain ...... $3.39. 0.81 Volkswagen Bank Germany...... $0.72. 0.36 7 HSBC Bank United Kingdom $28.55 8.12Bank of Ireland Ireland ...... $3.21. 0.70 Union Bank Estonia ...... $0.71. 0.25 Asia/Pacific Other Issuers 8 CartaSi Italy $27.70 7.34Citigroup Russia...... $2.80 . 2.20 Landesbank Germany ...... $0.69. 0.31 ANZ New Zealand ...... $1.59 0.41 Dao Heng Bank Hong Kong...... $1.57 0.83 Savings Bank of Russian Fed. Russia. . .$2.77 1.48 DirektBank Germany ...... $0.61 . 0.27 VOLUME CARDS 9 MBNA United Kingdom & Ireland $26.50 6.80 Heritage Building Soc $1.52 0.09 Fortis Bank Belgium ...... $2.77 . 0.80 BBVA Portugal Portugal ...... $0.60. 0.25 ISSUER, COUNTRY (BIL.) (MIL.) . Australia ...... 10 Nordea Scandinavia, Baltics, Poland $25.53 3.65 United Overseas $1.51 0.60 VakifBank Turkey ...... $2.74 . 3.73 CB “Privatbank” Ukraine ...... $0.59. 0.70 Singapore ...... 1 LG Card South Korea $64.30 11.08 Fubon Commercial $1.44 1.30 11 La Caixa Spain $24.86 6.81Bankgesellschaft Berlin Germany . . . . .$2.71 1.28 HypoVareinsbank Germany...... $0.59. 0.33 Taiwan...... Thai Military Bank Thailand...... $1.33 1.35 12 BNP Paribas France $24.77 4.34 Akbank Turkey ...... $2.70 . 1.86 Lufthansa Visa Germany ...... $0.58. 0.26 2 BC Card South Korea $47.45 9.20 HSBC Taiwan ...... $1.10 0.70 ING Bank Slaski Poland...... $2.60. 0.84 DaimlerChrysler Bank Germany . . . . . $0.56. 0.25 3 KookminCard South Korea $38.03 7.44 13 BBVA Spain $22.43 7.10 Dah Sing Bank Hong Kong ...... $1.03 0.54 VISECA Switzerland ...... $2.51 . 0.92 Bank Millenium Poland ...... $0.53. 0.36 $28.34 2.36 $20.94 2.19 4 SamsungCard South Korea Union Bank Taiwan ...... $0.97 1.30 14 Swedbank Sweden Bank Zachodni Poland...... $2.48. 0.81 Kreditkort Iceland ...... $0.52 . 0.08 5 Sumitomo Mitsui Japan $23.17 12.70 Bankcard Service Japan ...... $0.96 1.21 15 HBOS United Kingdom $19.24 4.79Banco Totta e Acores Portugal ...... $2.21. 0.78 SEB Germany ...... $0.50 . 0.23 $22.16 12.10 Standard Chartered India...... $0.84 2.00 Citibank $2.21 0.98 BMW $0.49 0.24 6 UC Card Japan 16 Credit Lyonnais France $17.01 2.91 Germany ...... Germany...... Far Eastern International Taiwan . . . . . $0.82 1.00 Barclaycard $2.19 1.10 Bayinder Bank $0.48 0.46 7 ANZ Australia $22.06 2.61 17 Caja Madrid Spain $15.82 4.50 Germany...... Turkey ...... National Bank of New Zealand ...... $0.81 0.50 Corner Bank $1.97 0.58 Caixa Terrassa Switzerland ...... Spain ...... $0.48. 0.18 8 DC Card Japan $21.14 9.75 OMC Japan ...... $0.76 0.73 18 Banques PopulairesFrance $13.91 2.58 Alpha Bank Ulster Bank Direct Greece ...... $1.90 . 0.90 Ireland ...... $0.46. 0.11 9 Commonwealth Bank Australia $20.05 2.95 Standard Chartered Malaysia ...... $0.68 0.44 19 Santander Central HispanoSpain $13.27 5.67 OP Bank $1.89 0.48 Hamburger Sparkasse $0.42 0.23 Finland ...... Germany ...... $19.62 11.90 Kyodo Credit Service Japan ...... $0.67 0.82 Commerzbank 10 Nippon Shinpan Japan 20 Yapi ve KrediTurkey $11.75 6.33 Germany ...... $1.78. 0.86 Sampo Bank Finland ...... $0.41. 0.25 PT LippoBank Indonesia ...... $0.64 2.15 KarstadtQuele Bank AVAL (JSPP Bank) 11 Credit Saison Japan $17.00 13.23 21 La Poste France $11.14 2.31 Germany...... $1.72. 1.00 Ukraine ...... $0.38. 0.81 Standard Chartered Taiwan ...... $0.63 0.43 Bank Austria Creditanstalt Austria . . . .$1.63 0.53 CC-Bank Germany ...... $0.36 . 0.16 12 National Australia Australia $14.55 1.96 22 SEB Sweden $11.10 1.31 First Commercial Taiwan ...... $0.56 0.50 Postbank Netherlands...... $1.55 . 1.29 TSB Ireland...... $0.34. . 0.10 13 UFJ Card Japan $13.00 8.70 Adelaide Bank Australia ...... $0.49 0.10 $10.51 1.51Deutsche Bank Credem Italy 23 CIC France Germany ...... $1.48. 0.79 ...... $0.32. 0.12 14 ShinhanCard South Korea $9.49 2.77 Standard Chartered Singapore ...... $0.47 0.35 24 Co-operative BankUnited Kingdom $9.91 3.81 Den Norske Bank Norway ...... $1.47. 1.16 Sa Nostra Spain ...... $0.23 . 0.06 Bank Internasional Indonesia ...... $0.40 0.56 Postbank Citibank 15 KEB South Korea $7.55 3.50 25 Caixa Geral de Depositos Portugal $9.73 2.57 Germany ...... $1.39 . 0.67 Belgium...... $0.21 . 0.08 Krung Thai Bank Thailand ...... $0.38 0.40 Vilnius Bank Lithuania...... $1.36. 0.70 Parex Bank Latvia ...... $0.19 . 0.13 16 ChinaTrust Commercial Taiwan $6.58 5.64 Standard Chartered $0.31 0.21 $9.65 4.68 Thailand...... 26 PKO Bank Polski Poland Komercni Banka Czech Republic . . . . . 1.36$ 0.51 Banka Koper Slovenia ...... $0.16. 0.11 17 Westpac Australia $6.41 1.62 Hua Nan Commercial Taiwan ...... $0.30 0.50 27 Isbank Turkey $9.32 7.11Hansabank Estonia ...... $1.35 . 0.43 Privredna Banka Croatia ...... $0.16. 0.18 18 BangkokBank Thailand $6.32 2.87 ICICI India ...... $0.30 1.20 RBOS Germany ...... $1.34 . 0.60 Citibank U.K...... $0.14 . 0.03 Bank BNI $0.26 0.50 28 Capital One United Kingdom $8.58 2.60 19 HyundaiCard South Korea $4.82 1.10 Indonesia ...... KBC Bank Belgium...... $1.32 . 0.40 Capital One $0.11 0.03 Bank Central Asia $0.17 0.15 29 Egg United Kingdom $6.53 2.15 France ...... Indonesia ...... Raiffeisen Zentralbank Austria ...... $1.21 0.45 Bank Handlowy Poland ...... $0.08. 0.15 20 Bank ofNew Zealand New Zealand $4.34 0.69 ANZ Indonesia ...... $0.17 0.22 30 Banco Popular EspanolSpain $5.82 2.25 Liverpool Victoria United Kingdom . . $1.20. 0.47 Nord/LB Latvia ...... $0.06 . 0.04 21 Citibank Taiwan $4.26 1.45 Bank of China Singapore ...... $0.15 0.06 31 Crediflash Portugal $5.68 1.67Pamukbank Turkey...... $1.15. 1.07 Unicard Italy...... $0.05 . 0.02 22 HSBC Hong Kong $3.68 2.10 Newcastle Perm. Bldg. Soc. Australia . . $0.10 0.04 Citibank Espana Erste & Steiermarkische Bank HDFC $0.06 0.06 32 Abbey National United Kingdom $5.40 1.80 Spain...... $1.13. 0.48 Croatia . .$0.05 0.05 23 Standard Chartered Hong Kong $3.43 2.55 India ...... Lufthansa AirPlus Germany...... $1.08. 0.53 JSC Intellectbank Georgia ...... $0.05. 0.02 LUSO International Macau...... $0.02 0.02 33 UBS Switzerland $5.32 1.01 Halkbank Turkey ...... $1.06 . 1.26 Priorbank Belarus...... $0.05 . 0.02 24 Citibank Hong Kong $3.28 1.00 34 Visa Iceland Iceland $5.32 0.35Ethnokarta Greece ...... $1.06 . 1.05 Komercijalna Banka Macedonia . . . . . $0.03. 0.02 25 Hang Seng Bank Hong Kong $2.41 0.96 35 Garanti Bank Turkey $5.12 3.05Dexia Bank Belgium ...... $0.99 . 0.44 © 2004 The Nilson Report 26 Westpac New Zealand $2.24 0.58 © 2004 The Nilson Report

THE NILSON REPORT - 6 - THE NILSON REPORT NUMBER 824 • DECEMBER 2004 - 7 - NUMBER 824 • DECEMBER 2004 CompuCredit (from page 1) … that uses Columbus Bank and Trust to issue Visa and MasterCard credit cards, grew its Top 50 by Country 2003 business by about 50% in November after acquiring another subprime portfolio. The seller was Bank of America’s Fleet Volume per Card Volume Cards Purchase Transactions Bank subsidiary. The $1.10 billion in card outstandings are RANK RANK VOLUME CHG. RANK CARDS CHG. RANK TRANS. CHG. tied to a co-brand program Fleet marketed to customers of ‘03 ISSUER/COUNTRY 2003 ‘03/’02 COUNTRY (BIL.) VS. ‘02 ‘03/’02 COUNTRY (MIL.) VS. ‘02 ‘03/’02 COUNTRY (MIL.) VS. ‘02 consumer electronics retailer Circuit City. 1 Visa Ghana $55,898 1 1 United States $1,740.80 +9% 1 1 United States 755.3 +8% 1 1 United States 21,124.1 +12% When Bank of America acquired Fleet last year, it con- 2 Visa Iceland $14,706 2 2 United Kingdom $440.01 +13% 2 2 China 177.4 +5% 2 2 France 3,874.2 +8% sidered the Circuit City portfolio to be below its minimum 3 Visa Norway $11,711 3 4 China $298.90 +5% 3 3 Japan 121.3 +6% 3 3 United Kingdom 3,514.3 +9% requirements for credit quality. Bank of America ranks 4 Visa Finland $10,314 4 5 France $286.23 +7% 4 4 Brazil 109.3 +14% 4 4 Canada 1,547.2 +9% 5 Visa Sweden $9,416 5 3 South Korea $238.28 –23% 5 5 United Kingdom 101.3 +13% 5 5 Brazil 1,379.2 +22% fourth in the U.S. among issuers of Visa and MasterCard 6 Visa Denmark $9,008 6 6 Japan $143.23 +6% 6 6 South Korea 64.1 –15% 6 7 Japan 1,233.2 +14% credit cards. The majority of the credit card accounts it 7 Visa Saudi Arabia $8,501 7 8 Spain $132.69 +14% 7 7 Canada 51.1 +3% 7 6 South Korea 1,202.4 +10% issues are to customers with which it also has a deposit 8 Visa France $7,535 8 7 Canada $130.77 +11% 8 8 Spain 46.2 +8% 8 8 Australia 1,009.3 +10% account relationship. 9 Visa Azerbaijan $7,283 9 9 Australia $101.46 +7% 9 9 Mexico 42.4 +11% 9 9 Spain 994.7 +13% CompuCredit financed the acquisition by forming a 10 MasterCard France $7,236 10 10 Mexico $99.81 +23% 10 10 France 38.5 +7% 10 10 Turkey 792.5 +33% partnership with Banc of America Securities and Greenwich 11 Visa Kuwait $7,035 11 11 Brazil $82.32 +15% 11 11 Taiwan 38.3 +19% 11 11 Sweden 486.6 +20% Capital Financial Products (a unit of 12 Visa Australia $7,033 12 12 Sweden $49.39 +8% 12 12 Turkey 32.8 +24% 12 13 Norway 431.8 +18% 13 Visa Bermuda $6,857 13 13 Norway $47.14 +8% 13 13 Italy 21.5 +12% 13 12 Taiwan 418.3 +11% Royal Bank of Scotland). 14 MasterCard Finland $6,839 14 18 Turkey $42.00 +54% 14 17 India 21.4 +66% 14 15 Portugal 401.7 +13% CompuCredit will handle all 15 Visa Israel $6,496 15 14 Italy $40.87 +9% 15 14 Germany 19.7 +4% 15 14 Israel 381.1 +5% customer service and collec- 16 MasterCard Iceland $6,253 16 16 Portugal $39.82 +11% 16 16 Australia 16.8 +6% 16 18 Denmark 345.5 +16% tions. The issuer has formed similar 17 MasterCardSweden $6,166 17 15 Germany $38.26 +5% 17 20 Thailand 14.0 +46% 17 16 Italy 339.0 +8% joint ventures in recent years. In 2002 18 Visa Luxembourg $6,096 18 17 Taiwan $32.66 +16% 18 15 Argentina 12.7 –24% 18 17 Germany 320.0 +8% Goldman Sachs, Salomon Smith Barney, and 19 MasterCardLuxembourg $5,255 19 21 South Africa $25.52 +29% 19 18 Hong Kong 12.1 +3% 19 19 Mexico 294.5 +15% CompuCredit teamed up to buy $1.20 billion in subprime 20 Visa Qatar $5,208 20 25 Finland $24.61 +48% 20 22 Malaysia 12.0 +30% 20 24 Finland 239.8 +84% 21 Visa Ireland $5,019 21 20 Saudi Arabia $24.48 +23% 21 19 Portugal 11.1 +2% 21 22 South Africa 232.5 +17% outstandings from Providian Financial. In 2003, 22 MasterCard Latvia $4,946 22 24 Poland $22.30 +22% 22 23 South Africa 11.0 +35% 22 21 Argentina 224.6 +8% CompuCredit and Merrill Lynch acquired another $859 mil- 23 Visa Andorra $4,854 23 23 Denmark $21.17 +15% 23 21 Poland 10.2 +9% 23 20 Hong Kong 216.0 +3% lion in subprime loans from Providian Financial. Earlier this 24 MasterCard Andorra $4,810 24 19 Hong Kong $21.06 +2% 24 31 Russia 9.7 +110% 24 23 New Zealand 157.5 +10% year, Merrill and CompuCredit acquired $92 million in sub- 25 Visa United Kingdom $4,776 25 27 Thailand $20.27 +47% 25 24 Indonesia 8.9 +21% 25 25 Malaysia 142.2 +16% prime card loans from an unnamed buyer. 26 Visa United Arab Emirates $4,690 26 22 Israel $19.53 +6% 26 26 Colombia 6.7 +14% 26 26 China 126.0 +22% In the first quarter of this year, CompuCredit sold 27 Visa Switzerland $4,611 27 35 Russia $15.04 +94% 27 29 Philippines 6.6 +33% 27 28 Thailand 119.6 +27% Merrill a 4.5% equity position in return for the investment 28 MasterCard Israel $4,495 28 28 Argentina $14.46 +31% 28 25 Greece 6.5 +4% 28 29 Poland 113.9 +29% 29 MasterCardSwitzerland $4,219 29 26 Switzerland $13.91 –1% 29 27 Sweden 5.9 +3% 29 27 Switzerland 95.1 0% bank’s two-year $1.25-billion securitization facility. David 30 MasterCard Cayman Islands $3,975 30 30 Kuwait $11.29 +23% 30 32 Norway 5.2 +14% 30 30 Ireland 77.5 +6% Hanna is CEO at CompuCredit Corporation in Atlanta, 31 MasterCardIreland $3,939 31 34 Czech Republic $10.78 +34% 31 30 Netherlands 5.1 +5% 31 36 India 75.7 +38% Georgia, (678) 259-8043, [email protected]. 32 Visa Belize $3,909 32 29 New Zealand $10.29 +9% 32 28 Singapore 4.6 –9% 32 31 Singapore 74.3 +10% Prior issues: 803, 799, 780, 777, 769, 762, 756, 746, 733, 715, 33 MasterCardRussia $3,834 33 45 India $10.24 +116% 33 40 Ukraine 4.4 +54% 33 32 Netherlands 65.0 0% 714, 690, 683, 676 ᔢ 34 Visa Seychelles $3,805 34 36 Malaysia $10.02 +38% 34 33 Chile 4.1 +3% 34 33 Belgium 64.4 0% 35 Visa Montserrat $3,804 35 32 Ireland $9.21 +8% 35 34 New Zealand 3.9 +5% 35 38 Philippines 64.1 +32% Upscale Credit Card (from page 1) … £5 million ($9.6 mil- 36 Visa Cayman Islands $3,781 36 31 Netherlands $9.05 +1% 36 37 Czech Republic 3.9 +23% 36 34 Greece 62.4 +5% 37 MasterCardAustralia $3,755 37 37 Hungary $8.76 +23% 37 35 Israel 3.8 +4% 37 37 Indonesia 61.6 +15% lion) in fixed assets on deposit at the bank. The annual fee of 38 Visa South Korea $3,744 38 33 Belgium $8.47 0% 38 36 Peru 3.2 –4% 38 35 Iceland 60.7 +7% £350 ($675) is waived for cardholders who charge more than 39 MasterCardSouth Korea $3,664 39 39 Greece $8.21 +21% 39 41 Hungary 3.2 +13% 39 40 Chile 53.6 +17% £50,000 ($96,410) annually. Cards are delivered to cardhold- 40 Visa Canada $3,637 40 38 United Arab Emir. $7.93 +15% 40 38 Switzerland 3.2 +1% 40 39 Colombia 52.7 +14% ers personally in a mahogany 41 Visa Portugal $3,572 41 40 Colombia $7.62 +17% 41 44 Saudi Arabia 3.0 +24% 41 45 Czech Republic 39.9 +51% box. The Coutts & Co. card is 42 MasterCard New Zealand $3,517 42 41 Singapore $6.42 +8% 42 42 Belgium 2.8 +1% 42 41 Austria 38.2 +3% based on the platform 43 MasterCardCzech Republic $3,489 43 43 Iceland $5.49 +11% 43 43 Denmark 2.7 +11% 43 43 Costa Rica 35.7 +19% MasterCard designed for its 44 MasterCard Kuwait $3,453 44 46 Indonesia $5.45 +21% 44 39 Venezuela 2.7 –11% 44 44 Puerto Rico 33.2 +17% 45 Visa Estonia $3,379 45 47 Chile $5.31 +20% 45 45 Finland 2.5 +15% 45 48 Hungary 31.9 +31% World Signia product. 46 MasterCard Trinidad & Tobago$3,376 46 42 Peru $4.94 –8% 46 49 Romania 2.4 +31% 46 42 Venezuela 30.7 –15% Coutts also issues gold 47 Visa Bahamas $3,355 47 44 Austria $4.84 +2% 47 46 Costa Rica 2.4 +13% 47 49 United Arab Emir. 29.6 +30% MasterCard and Visa 30-day 48 MasterCard South Africa $3,338 48 48 Puerto Rico $3.68 +22% 48 47 Dominican Republic 2.0 +6% 48 47 Peru 28.9 +18% credit cards and a classic Visa 49 MasterCardDenmark $3,302 49 58 Ukraine $2.93 +78% 49 51 Puerto Rico 2.0 +14% 49 46 Dominican Republic 26.7 +2% card offering revolving credit. 50 Visa Mozambique $3,278 50 50 Costa Rica $2.81 +25% 50 52 United Arab Emir. 2.0 +21% 50 50 Estonia 25.2 +44% Jeanette Harwood is Product Manager at Coutts & Co. in Visa & MasterCard credit and debit cards. Visa includes Interlink in Asia/Pacific and Visa Electron in Asia/Pacific, Middle East/Africa, Europe, and Latin America, but excludes Plus. MasterCard excludes Cirrus & London, 44 (207) 753-1406, [email protected]. ᔢ Maestro. © 2004 The Nilson Report

THE NILSON REPORT THE NILSON REPORT NUMBER 824 • DECEMBER 2004 - 8 - - 9 - NUMBER 824 • DECEMBER 2004 Top 100 Visa/MasterCard Issuers Worldwide – 2003 VOL. CARDS 50 Banques Populaires France $13.91 2.58 ISSUER, COUNTRY (BIL.) (MIL.) 51 Santander Central Hispano Spain $13.27 5.67 1 Citibank United States $234.68 106.44 52 UFJ Card Japan $13.00 8.70 2 Bank One United States $179.80 56.06 53 TD Canada Trust Canada $12.85 5.66 3 MBNA United States $147.27 56.07 54 Yapi ve Kredi Bankasi Turkey $11.75 6.33 4 Bank of America United States $131.20 58.40 55 Navy FCU United States $11.29 4.93 5 JPMorganChase United States $100.77 43.62 56 La Poste France $11.14 2.31 6 Capital One United States $87.83 53.17 57 SEB Sweden $11.10 1.31 7 Barclays Bank United Kingdom $80.10 19.10 58 CIC France $10.51 1.51 8 RBS/NatWest United Kingdom $71.54 16.50 59 Co-operative Bank U.K. $9.91 3.81 9 LG Card South Korea $64.30 11.08 60 Caixa Geral de Depositos Portugal $9.73 2.57 10 Crédit Agricole France $59.91 9.76 61 PKO Bank Poland $9.65 4.68 11 Lloyds TSB United Kingdom $59.20 17.03 62 Shinhan Card South Korea $9.49 2.77 12 U.S. Bancorp United States $57.71 13.38 63 Isbank Turkey $9.32 7.11 13 Wells Fargo United States $52.03 22.80 64 Scotiabank Canada $9.29 3.24 14 BC Card South Korea $47.45 9.20 65 Bank Hapoalim Israel $9.11 1.46 15 HSBC United States $41.94 36.42 66 Merrill Lynch United States $9.01 1.51 16 Caisse d’Epargne France $38.66 5.24 67 Capital One United Kingdom $8.58 2.60 17 Kookmin Card South Korea $38.03 7.44 68 NetBank United States $7.76 2.69 18 CIBC Canada $37.75 5.98 69 Fifth Third United States $7.73 3.69 19 BBVA Bancomer Mexico $35.25 15.25 70 Citizens Bank (R.I.) United States $7.55 3.56 20 Fleet United States $34.15 16.70 71 KEB South Korea $7.55 3.50 21 Societe Generale France $31.16 3.38 72 FNB Omaha United States $7.53 4.90 22 HSBC United Kingdom $28.55 8.12 73 Target United States $7.37 11.37 23 Samsung Card South Korea $28.34 2.36 74 GE Capital Financial United States $7.35 0.81 24 CartaSi Italy $27.70 7.34 75 Bank Leumi Israel $7.32 1.20 25 Banamex (Citibank) Mexico $26.53 12.89 76 Advanta United States $7.04 1.06 26 MBNA United Kingdom & Ireland $26.50 6.80 77 Santander Serfin Mexico $6.93 4.45 27 Nordea Scandinavia, Baltics, Poland $25.53 3.65 78 SunTrust United States $6.75 2.66 28 La Caixa Spain $24.86 6.81 79 ABSA Bank South Africa $6.71 2.91 29 BNP Paribas France $24.77 4.34 80 ChinaTrust Commercial Taiwan $6.58 5.64 30 Sumitomo Mitsui Japan $23.17 12.70 81 PNC Bank United States $6.55 2.78 31 BBVA Spain $22.43 7.10 82 Egg United Kingdom $6.53 2.15 32 UC Card Japan $22.16 12.10 83 Westpac Australia $6.41 1.62 33 ANZ Australia $22.06 2.61 84 Bangkok Bank Thailand $6.32 2.87 34 Royal Bank Canada $21.28 6.75 85 ICBA United States $6.31 3.81 35 DC Card Japan $21.14 9.75 86 Banco do Brasil Brazil $6.16 28.05 36 Swedbank Sweden $20.94 2.19 87 Desjardins Canada $5.98 2.32 37 Commonwealth Bank Australia $20.05 2.95 88 Direct Merchants United States $5.90 4.20 38 Nippon Shinpan Japan $19.62 11.90 89 Banco Popular Espanol Spain $5.82 2.25 39 HBOS United Kingdom $19.24 4.79 90 Crediflash Portugal $5.68 1.67 40 USAA Federal Savings United States $18.65 5.44 91 Bradesco Brazil $5.56 41.10 41 Washington Mutual United States $17.54 9.45 92 Abbey National United Kingdom $5.40 1.80 42 Credit Lyonnais France $17.01 2.91 93 UBS Switzerland $5.32 1.01 43 Credit Saison Japan $17.00 13.23 94 Visa Iceland Iceland $5.32 0.35 44 Wachovia United States $16.46 5.22 95 Branch Banking & Trust United States $5.28 2.40 45 Providian United States $16.44 12.30 96 Garanti Bank Turkey $5.12 3.05 46 Bank of Montreal Canada $16.01 10.73 97 Svenska Handelsbanken Sweden $4.85 0.78 47 Caja Madrid Spain $15.82 4.50 98 HSBC France $4.83 0.85 48 HSBC Mexico $15.44 4.51 99 Hyundai Card South Korea $4.82 1.10 49 National Australia Australia $14.55 1.96 100 Banco de la Provincia Argentina $4.75 1.30 Includes credit, debit, and prepaid cards, and the volume (turnover) they generate as reported to Visa and MasterCard. © 2004 The Nilson Report

December 30, 2004 David Robertson, Publisher THE NILSON REPORT NUMBER 824 • DECEMBER 2004 - 10 - Visit the companies mentioned in this issue by clicking here.

American Express Experian Mercantec www.americanexpress.com www.experian.com www.mercantec.com Authorize.Net GE Capital Merrill Lynch www.authorize.net www.ge.com www.ml.com Bank of America Global Payments Moneris Solutions www.bankofamerica.com www.globalpaymentsinc.com www.moneris.com Brookwood Capital Goldman Sachs Points International www.brookwoodcapital.net www.gs.com www.points.com Circuit City Greenwich Capital Providian www.circuitcity.com www.gcm.com www.providian.com Columbus Bank & Trust Hypercom Salomon Smith Barney www.columbusbankandtrust.com www.hypercom.com www.smithbarney.com CompuCredit InfiCorp Shopper’s Charge Accounts www.compucredit.com www.infistar.com www.shopperscharge.com Coutts & Co. JCB International Source Technologies www.coutts.com www.jcbinternational.com www.sourcetech.com Delta Airlines LiveCapital SurePayroll www.delta.com www.livecapital.com www.surepayroll.com Diners M.POS Visa www.dinersclub.com www.mpos.net www.visa.com Discover Financial MasterCard Wholesale Payments Solutions www.discoverfinancial.com www.mastercard.com www.wpchq.com