For 39 years, the leading publication covering payment systems worldwide.

February 2010

Issue 942

maStercard & ViSa u.S. 2009

MasterCard and Visa credit, debit, and prepaid consumer and commercial card purchase volume (spending at merchants) declined by 1.9% or $48.15 billion in 2009 versus 2008. Purchase
... turn to page 7

40% 35% 30% 25% 20% 15% 10% 5%

Spending at Merchants by U.S. Cardholders

Visa Credit

e-commerce paymentS in china

Chinas largest Web payment processor is Alipay, which opened for business in 2004. Last year it handled $38.40 billion in payments for 270 million registered users. By the end of January,
... turn to page 5

Market Shares of $Purchase Volume

MasterCard Credit

top 50 u.S. ViSa/maStercard credit card iSSuerS

Turn to pages 10 and 11 for a ranking of the 50 largest Visa and MasterCard credit card issuers based on outstanding debt at the end of 2009. Figures include consumer and commercial products.
turn to page 10

Visa Debit

Amex Credit MasterCard Debit

arguS inFormation & adViSory SerViceS

Since 1997, Argus Information & Advisory Services has been supplying top U.S. credit card issuers with information they can use to better understand and manage customer behavior and
... turn to page 12

Discover Credit

00 01 02 03 04 05 06 07 08 09
2010 The Nilson Report

SignatureS required on Fewer receiptS

Over 98.5% of card-present transactions initiated by U.S. cardholders at U.S. merchants are authorized by the card issuer while the customer is standing in the checkout lane. These online
... turn to page 5

general purpoSe cardS u.S. 2009

American Express, Discover, MasterCard, and Visa brand cards generated $2.971 trillion in purchase volume (spending at merchants) in 2009 from consumer and commercial credit, debit, and prepaid products, down 3.2% versus 2008. PIN-based debit card figures for Visa (Interlink) and MasterCard are included in that amount. However, PIN-based Pulse brand card figures
... turn to page 6

debt Settlement update

Debt settlement companies manage funds that are set aside by consumers who hope to pay off their delinquent credit card debt for less than half of what is owed. Theyre bargaining that
... turn to page 4

merchant acquiring in germany

B+S Card Service, Germanys largest acquirer based on transactions processed, will use the TSYS TS Prime platform to provide clearing and settlement services as well as risk and
... turn to page 4
INSIDE:

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Fast Facts P 2-3 purchase volume oN u.s. Gp carDs P 6 | u.s. GeNeral purpose carDs P 6 | creDit carD outstaNDiNGs iN the u.s. P 7 visa & mastercarD Debit & prepaiD carDs P 9 | 50 larGest issuers oF visa & mastercarD creDit carDs iN the u.s. P 10,11

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GLOBALPLATFORM is delivering a one-day card technology

Fast Facts > > > > > > > >
The Nilson Report #942 1st draft February 17, 2010 3:37 PM ddr

HEARTLAND PAYMENT SYSTEMS offer to pay up to $60

training session in Salt Lake City, Utah on Monday, February 22. Cost is $1,495 for nonmembers. Nilson Report subscribers receive a $200 discount. Register at www.globalplatform.org/ trasaltlakecity.asp

GALILEO PROCESSING, provider of a prepaid card account

processing platform that manages over 700 programs, is working with tax-refund specialist EPS Financial on a new prepaid Visa product called E1 Visa Prepaid Card. The card will hold refunds for consumers whose tax preparers used Drake software. Cards will be issued by The Bancorp Bank. Todd Brockman is President at Galileo, (801) 365-6060 x200, [email protected].

million to issuers of Visa cards for expenses related to a 2008 data breach has been accepted by 97% of the institutions affected. Robert Carr is CEO at HPS, (609) 683-3831, [email protected]. Eduardo Perez is Head, Global Payment System Security at Visa, (650) 432-2375, [email protected].

1010DATA, provider of an analytics engine that merchants can use

to store site selection, merchandising, inventory management, customer loyalty program support, etc., has linked to Equifax to give its customers access to individual and household marketing data. Wendy Lynes is VP, Direct Marketing Services at Equifax, (561) 776-0748, [email protected]. Jim Mattecheck is VP, Retail Solutions Group at 1010data, (503) 701-6477, [email protected].

TRUSTWAVE'S 2010 Global Security Report is available at no charge

from www.trustwave.com/whitePapers.php.

INTEGRATED BANK TECHNOLOGY, which provides core

processing and imaging along with Check 21 software applications to 200 financial institutions, will offer ATM and debit processing services from U.S. Banks Elan Financial Services subsidiary. Troy Cullen is Business Manager at Elan Financial Services, (630) 443-3238, [email protected]. Mike Golebiowski is Pres. at IBT, (773) 973-1536 x151, [email protected].

DISCOVER FINANCIAL SERVICES has paid Morgan Stanley

$775 million from the antitrust settlement it received from Visa and MasterCard. DFS and Morgan Stanley also entered into an agreement that calls for each to release and discharge the other party from litigation over the matter.

INCOMM now lets select retailers in its prepaid card distribution

network reload prepaid cards managed by Netspend. The deal will increase NetSpends reload network from its current level of 93,000 locations. Robert Skiba is EVP and GM at InComm, (770) 240-6173, [email protected]. Dan Henry is CEO at NetSpend, (512) 531-8780, [email protected].

MERCURY PAYMENT SYSTEMS, a processor serving 47,323

merchant customers, now offers MercuryShield, a PA DSS-validated payment application for point-of-sale developers that avoids storing, processing, or transmitting cardholder data. Lucas Zaichkowsky is Senior Compliance Technologist, (970) 247-5557 x2723, [email protected].

ELAVON, a wholly owned subsidiary of U.S. Bancorp, has purchased

300 merchant card-processing contracts from Citizens National, a community bank in Tennessee. Stuart Harvey is CEO at Elavon, (678) 731-5020, [email protected].

VOLTAGE SECURITYS SecureData encryption software can now

be integrated into Thales hardware security modules. Thales says it secures more than 70% of the worlds card payment transactions worldwide. Richard Moulds is VP, Product Strategy at Thales, (781) 994-4000, [email protected]. Mark Bower is VP, Product Management at Voltage Security, (781) 4592-2225, [email protected].

NETWORK MERCHANTS (NMI), a payment gateway provider to

ISOs and MSPs, now offers Three Step Redirect API an interface that transmits credit card information directly to the gateway through a Secure Sockets Layer (SSL) connection, bypassing the merchants server and payment application. Ted Cucci is COO, (847) 352-4850 x131, [email protected].

Conference links at www.nilsonreport.com

FEATURED CONFERENCE
MOBILE FINANCIAL SERVICES 2010
Two-Day Conference March 9-10, 2010 The Copthrone Tara Hotel, London, U.K.

20%

Subscribers to The Nilson Report receive a 20% discount on registration.

GLOBAL CASH, provider of a prepaid card program and operator

of its own account-processing platform, now offers consumers Intuits Turbo Tax Federal Free Edition for 1040EZ and simple returns. It also discounts Turbo Tax online products that include both federal and state e-filing by 15%. Cardholders can elect to have their tax refunds deposited directly to their prepaid MasterCard or Visa cards. First Regional Bank and Elan Financial/U.S. Bank are the card issuers. Joe Purcell is COO at Global Cash Card, (949) 751-0360 x202, [email protected].

Topics include: mobile finance world changes over the last 12 months, Web payments models, the main business case for mobile financial services, convergences for the industry, Mobile Cloud, a security model for mobile payment, and engaging the consumer. Speakers represent: World Bank, Turkcell, Visa Europe, SFR, T-Mobile, Mobitel, Danske Bank, and more. Cost is $4,211 (2,948 + VAT). Contact Mubenah Khan at Informa Telecoms, 44 (207) 017-5827, mubenah.khan@ informa.com. Register at www.mobile-financialservices.com.

SHPS, one of the largest U.S. providers of account-based, consumerdriven healthcare solutions, has renewed its contract to offer Visa cards as the preferred payment brand for employee-benefit programs it administers. RJD Grimes is SVP, Sales at SHPS, (502) 267-3334, [email protected]. Stacy Pourfallah is Sr. Bus. Leader, Healthcare Prod. at Visa, (650) 432-2388, [email protected].

FebruarY 2010 issue 942 the NilsoN report

THE NILSON REPORT

NUMBER 942 FEBRUARY 2010

DO NOT COPY THIS REPORT. Reproducing or allowing reproduction of any portion of this newsletter in any - 1 manner for any purpose constitutes a copyright violation subject to substantial fines.

> > > > > > > > > Fast Facts
ECOMMLINK, operator of a prepaid card-processing platform, has CEDACRI, Italys top provider of outsourcing services to banks, has
partnered with TSYS to offer end-to-end card processing for consumer, commercial, and prepaid cards, as well as 3D Secure services and fraud solutions. Fabio Menghini is Sales Director at TSYS, 39 (348) 283-7590, [email protected]. Fabio De Ferrari is GM at Cedacri, 39 (348) 895-2972, [email protected]. opened an office in Medellin, Colombia to support business development in Latin America. Carlos Beltran is Head, Latin American Sales, 57 (310) 443-3000, [email protected].

SEAMLESS ERS 360 provides the system used by Sweden's

Swedbank to provide mobile phone account reloads at its Internet Bank, IVR, and mobile bank. The system has delivered 10 million reloads since 2006. Rohit Bhatia is Managing Director at Seamless, 46 (8) 5648-7800, [email protected]. Anna Bjarnling is Head, Prepaid Recharge Services at Swedbank, 46 (730) 454-919, [email protected].

RETAIL BANKING RESEARCH has published The Future of Cash

and Payments, a 415-page report that looks at the historic and future use of cash and other payment methods, and at the economics of cash substitution in Europe. Cost is $4,900. Rob Walker is Payment Systems Expert, 44 (208) 940-1398, [email protected].

I&M BANK in Kenya is the first bank in Eastern and Central Africa
to be certified by Visa to process online credit card payments for goods and services. Victor Ndlovu is Manager, Sub-Saharan Africa at Visa, 27 (11) 547-8466, [email protected]. V.S. Sekhera Reddy is General Manager, Card Products at I&M, 254 (20) 322-1217, [email protected].

PKO BANK POLSKI will reissue more than 6 million Visa debit
cards with contactless chips starting in the second half of 2010. Jakub Kiwior is Country Manager at Visa, 48 (22) 630-6801, [email protected]. Katarzyna Sosin is Head of Cards at PKO Bank Polski, 48 (22) 639-6190, [email protected].

GIESECKE & DEVRIENT'S Mobile Security Card for use with the
Android operating system offers applications including online banking, secure access to corporate networks, and electronic ticketing. Users insert the memory card into the microSD slot on their Android device to make phones a secure alternative to external smart cards. Kai Grassie is Head, New Business division, 49 (89) 4119-0, [email protected].

FIRST DATA CORPORATION will provide the Egyptian government with a managed service for issuing and processing more than 4.5 million prepaid reloadable smart cards in its family card project, which covers subsidized food and pension services. Masria Card, Egypts top card manufacturer, will supply the cards. George Tsoutsos is Managing Director, North Africa at First Data, 30 (697) 848-3966, [email protected]. Amr Rashad is Managing Director at Masria Card, 20 (2) 2291-4179, [email protected].

VESESS, a Sri Lanka-based, Web application development company,

has formed a partnership with e-onlinedata, provider of payment processing support to Web, mail order, and auction merchants. The partnership lets Vesess bundle e-onlinedata merchant account services and the Authorize.net payment gateway with its CurdBee online invoicing service. Lankitha Wimalarathna is CEO at Vesess, 94 (114) 924-894, [email protected]. Marci Gagnon is Manager is at e-onlinedata, (207) 228-6082 x1186, [email protected].

SIA SSB has opened a new office in Warsaw, Poland. Agnieszka

Zygner is Executive Sales Consultant, 48 (22) 528-6656, [email protected].

GEMALTO has become the majority shareholder in Netsize, a

mobile payments firm based in France. Previously Gemalto had held a 24% stake. Netsize offers payment services for 100 mobile operators who serve more than 1 billion subscribers in 28 countries. Mobile messaging and marketing services reach consumers through 700 network operators in 200 countries. Stanislas Chesnais will remain CEO at Netsize, 33 (1) 4127-5600, schesnais@ netsize.com. Olivier Piou is CEO at Gemalto, 33 (1) 5501-5000, [email protected].

Conference links at www.nilsonreport.com

CONFERENCES & SEMINARS

CIT 2010: March 9-10, 2010. The Palacio Municipal
de Congresos, Campo de las Naciones, Madrid, Spain. Estimated attendance: 100 delegates and 800 visitors. Cost for the two-day conference is $1,340 (individual sessions for $830). Subscribers to The Nilson Report will receive a 20% discount. Contact Isabel de la Cuesta at IIR Espaa, 34 (91) 700-4902, [email protected]. Register at www.iir-cit.com.

TRANSUNION is promoting a new credit risk management tool in

South Africa called Empirica V4 score, claiming it incrementally improves on the FICO scoring product the company previously sold. Empirica has also claimed to improve lenders decisions on those applicants with little or no prior credit history. Ian Logan is Executive, Credit Bureau at TransUnion in South Africa, 27 (11) 214-6182, [email protected]. Brian Cooper is Senior Director, Scores at FICO, 44 (121) 781-4517, [email protected].

CARDS & PAYMENT METHODS:

March 9-11, 2010. The Blue Tree Towers, Faria Lima, Sao Paulo, Brazil. Estimated attendance: 50. Cost for the threeday conference is $1,730 (R$3,195). Subscribers to The Nilson Report will receive a 20% discount. Contact Patricia Costa at IQPC, 55 (11) 3164-5601, [email protected]. Register at www.cartoesbr.com.

CARREFOUR, the largest retailer in Europe, will deploy Hypercoms

Wynid server-based payment solution along with over 12,000 PIN pads with EMV contactless readers at 210 of its French hypermarkets and petrol stations in France. Kazem Aminaee is Managing Director, Southern EMEA at Hypercom, 44 (1483) 718-600, [email protected].

IF YOU ARE READING THIS NEWSLETTER BY WAY OF A WEB SITE OR SERVER, there has been a violation of copyright law which carries substantial fines. No company has been granted the right to post this publication.

FebruarY 2010 issue 942 the NilsoN report

-2-

THE NILSON REPORT

NUMBER 942 FEBRUARY 2010

merchant acquiring in germany

(from page 1)...

fraud-detection support for credit card transactions generated at its more than 200,000 merchant accounts. The TSYS platform will also handle VPay and Maestro debit card, but not girocard (formerly electronic cash) debit card transactions. That business is cleared and settled by B+S into data centers operated by the cooperative, savings, and private banks. B+Ss back-office support had been supplied by Atos. Front-end authorizations for B+Ss 260,000 POS terminals are handled in-house. Other bidders for the back-office contract included First Data, Elavon, Six Multipay, and Atos. Last year, B+S settled 198 million credit card transactions valued at 14.90 billion ($20+ billion) from merchants in Germany, Austria, Switzerland,

Belgium, Italy, the Netherlands, Luxembourg, Slovenia, Hungary, Czech Republic, and Slovakia. B+S is owned by Germanys savings banks group led by Deutscher Sparkassen Verlag. Michael Pip is Managing Director at B+S Card Service in Frankfurt, Germany, 49 (69) 6630-5100, michael. other bidderS [email protected]. included FirSt Prior issue: 928

data, elaVon, Six multipay, and atoS.

TSYS has two other clients in Germany. Deutsche Bank has used it for consumer card account processing since June 2009, and Degussa Bank will use it for commercial card account processing beginning next month. Conversion of B+S merchants to the TSYS platform, which is operated from the U.K., is planned for the first quarter of 2011. Bob Evans is Group Executive at TSYS International in York, U.K., 44 (207) 1609400, [email protected].

debt settlement update

(from page 1)...

creditors will settle for a guaranteed amount in the near term rather than trying to collect the entire amount later and fail. Settlements typically range from 30 to 40 on the dollar. One of the biggest challenges faced by settlement companies

files on debtors so creditors can search those files for a match. By automating the process, Persolvo believes it has reduced the man hours required on the settlement companys end, while allowing creditors to collect without working with settlement companies directly.

by attorneys. Persolvo estimates that the amount of funds in trust accounts alone exceeds $5 billion and is growing at a rate of $1 billion per quarter.

is getting the funds saved by their clients into the hands of creditors. Many creditors have a long-standing distaste for dealing with these firms, although that appears to be shifting as the reputable ones find ways to distinguish themselves from those that bilk consumers. Persolvo Data Systems lets settlement companies upload

The companys database currently tracks $108 million that more than 200,000 consumers have set aside for proposed Once a match is found, the settlements up from $70 milcreditor goes through Persolvo lion tied to 90,000 consumers to send an offer to the in October 2009. All settlement company. If funds in the database the offer is accepted, are immediately all FundS in the consumer releases available to creditors, the datafunds to the crediwho pay Persolvo baSe are tor. The number of commissions that immediately searches initiated by range from 4% to aVailable to creditors since 8% of the settlement creditorS. October is up 50%, led amount. by a growing number Persolvo wont say of debt buyers. whether or not any card issuers Most funds are saved in trust have begun working with them accounts, although some are in yet, but they point out that most personal accounts or managed debtors go into a settlement

FebruarY 2010 issue 942 the NilsoN report

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program when their accounts are still current or only 30 days past due, and so would enter the database before being placed

with a collection agency or sold by the issuer to a debt buyer. Teresa Dodson is COO at Persolvo Data Systems in Irvine,

California, (949) 340-7033, teresa@persolvodatasystems. com. Prior issues: 935, 929, 922

signatures required on fewer receipts

(from page 1)...

authorizations, coupled with state-of-the-art fraud detection technology, have allowed the card organizations to lift signature requirements for most low-value transactions. On the MasterCard network, U.S. there haS merchants in select categories inbeen no cluding gas stations, convenience uptick in stores, drugstores, and supermarFraud. kets since 1991 have been allowed to process transactions valued at $25 or less without requiring cardholders to sign a receipt. Called Quick Payment Service, the program was expanded in November by raising the floor limit to $50. Discover Financial Services began letting select U.S. merchants process transactions under $25 without a signature in the mid-1990s and has expanded the merchant categories over the years. Since October 2009, nearly all merchants have been allowed to participate. Transactions involving

money transfers, lottery tickets, and cash advances are excluded. American Express also has a $25 floor on the transaction amount that requires a signed receipt as long as merchants have swiped a card to initiate an authorization. Visa launched its $25 or less No Signature Required program in the U.S. in 2006 and will expand it from 26 merchant segments to approximately 98% of the 800+ merchant segments in the U.S. by July 1 of this year. Visa, MasterCard, American Express, and Discover say they have not seen any increase in fraud on transactions where no signature is required. At least 29% of the Visa, MasterCard, Discover, and American Express transactions that occur at the point of sale in the U.S. will soon qualify for no signature or receipt required programs along with the accompanying chargeback protection.

e-commerce payments in china

(from page 1)...

Alipay was processing 5 million transactions a day with average daily volume exceeding $176 million.

Web retailers not connected to either one.

Alipay is owned by Alibaba Group, which owns and operates two online auction sites. Taobao.com is both businessto-consumer and consumer-toconsumer, and Alibaba.com is business-to-business. Alipay provides payment processing support for both sites as well as for another 500,000 China-based

Other payments are generated by credit and debit cards. Even when those cards carry China Registered buyers and sellers UnionPay, Visa, or MasterCard use one of two payment models. brands, settlement In the escrow occurs directly between model, Alipay is Alipay and the bank alipay prothe middle man, card issuers. ceSSeS 5 mil. holding a buyers tranSactionS money until the Alipay recently signed a daily Valued seller delivers contract with Asknet in the goods. Funds Germany, which operat $176 mil. are transferred ates Web portals for softfrom the buyers ware vendors and will bank account into their Alipay use Alipay as a new acceptance account. In the instant payments mark. model, the buyers funds are Stock trades on the Hong Kong transferred directly from their Stock Exchange. Stephen Zhu is bank account to the sellers Director of Business Intelligence Alipay account where they can at Alipay.com Co. Ltd. in Hangeither be moved into a bank zhou, China, 86 (571) 2688-8888 account or used to make auction x37315, [email protected]. payments.
FebruarY 2010 issue 942 the NilsoN report

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general purpose cards u.s. 2009

(from page 1)...

are excluded because Discover, which owns the Pulse EFT

Purchase Volume on U.S. General Purpose Cards 2009

Credit & Debit Cards
Brand Chg. in Share Basis Pts.

American Express figures include credit cards issued by Bank of America, Barclays, Citi, GE Money, HSBC, and USAA. Discover figures include credit, debit, and prepaid cards issued by GE Money, HSBC, Alliance Data, and 27 other issuers.

2008. American Express credit cards had a 23.84% share, down from 23.95% in 2008. Discover credit cards reached 5.70%, up from 5.47% in 2008.

$2.971 Tril.

Visa 55.4% 194 MasterCard 27.1% 84 Amex 14.1% 102 Discover 3.4% 8

Credit Cards Only

Brand Chg. in Share Basis Pts.

$1.761 Tril.

Visa 43.4% 97 MasterCard 27.1% 110 Amex 23.8% 10 Discover 5.7% 24

2010 The Nilson Report

system, doesnt integrate statistics from that business with Discover statistics. Cirrus and Plus PIN-based ATM activity is also excluded.

Visa debit and prepaid card spending overtook Visa credit cards for the first time. Visa Visa gained 194 basis points in debit and prepaid cards held share of spending at merchants a 29.72% share of all general in 2009 against the combined purpose card spending, up from signature and PIN-based credit, 26.65% in 2008. Visa credit debit, and prepaid cards of cards held a 25.72% share in its competitors, from 53.50% 2009. MasterCard debit and to 55.43%. All other brands prepaid cards ended the year declined. Discovers share fell with a 11.00% share, up from 8 basis points to 3.38%. Master10.06% in 2008. Discover brand Cards share fell 84 basis points debit and prepaid cards numto 27.05%. American bers were low and Expresss share are counted with debit purchaSe declined 102 basis credit card figures. tranSactionS points to 14.13%. American Express, which has prepaid accounted For Comparing only card volume but no 61.52% oF the credit cards, Visa debit card volume, total, up From had the highest counts prepaid with 57.51%. market share of credit cards. purchase volume in 2009 at 43.40%, up Credit, debit, and from 42.43% in 2008. Masterprepaid cards in circulation Card credit cards held a 27.06% declined by 38.8 million to share, down from 28.16% in 1.08 billion by year-end 2009.

UY

U.S. General Purpose Cards 2009 vs. 2008

Dollar Volume (bil.)
Brand Total Chg. Purchases Chg. Cash Chg.

Transactions (bil.)
Total Chg. Purchases Chg.

Cards
(mil.) Chg.

Visa Credit MasterCard Credit American Express Credit Discover Credit CREDIT CARD TOTALS Visa Debit & Prepaid MasterCard Debit & Prepaid DEBIT CARD TOTALS CREDIT & DEBIT TOTALS

$830.10 13.0% $525.40 16.8% $423.70 10.1% $108.69 $1,184.10 $450.40 $1,634.50 $3,522.39 9.6% 8.5% 6.5%

$764.20 7.3% $476.90 12.9% $419.84 9.8% $100.43 5.4% $882.60 $326.80

$65.90 49.3% $48.50 42.2% $3.86 34.4% $8.26 41.0%

9.12 2.7% 5.95 6.0% 3.62 7.4% 1.67 0.9%

9.04 2.4% 5.91 5.8% 3.59 7.4% 1.64 0.3%

270.1 11.1% 203.0 21.9% 48.9 9.4% 54.4 5.5% 576.4 14.6% 382.0 18.3% 125.0 0.8% 507.0 13.4%

$1,887.89 13.3% $1,761.38 9.4% $126.52 45.9% 20.35 4.4% 20.16 4.2% 7.9% $301.50 5.8% $123.60 7.3% $425.10 10.4% 26.88 13.0% 23.91 13.8% 8.5% 9.34 10.9% 8.34 11.7% 9.8% 36.22 12.5% 32.25 13.2% 5.7% 52.42

8.0% $1,209.40

4.6% $2,970.78 3.2% $551.62 11.1% 56.58

5.9% 1,083.4 3.5%

American Express and Discover include business from third-party issuers. Fgures include PIN-based debit figures for Visa (Interlink) and MasterCard to match their reporting. However, card figures for Visa do not include Plus cards that are not Visa cards. 2010 The Nilson Report

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Visa increased its share 435 basis points to 60.19% with the addition of 25.4 million cards. MasterCards share decreased by 394 basis points to 30.28% due to a decline of 56.0 million cards. American Expresss share declined by 30 basis points to 4.51% with a decline of 5.1 million cards, and Discovers share declined 11 basis points to 5.02% with a decline of 3.1 million cards. Credit card outstandings for all Visa, MasterCard, American Express, and Discover

U.S. Credit Card Outstandings

Brand 2009 (Bil.) Share 2008 (Bil.) Share 09 vs. 08

Visa MasterCard American Express Discover TOTAL

$366.05 $267.57 $86.06 $52.51

47.40% 34.65% 11.15% 6.80%

$405.80 $305.22 $96.30 $55.08

47.05% 35.39% 11.17% 6.39%

9.8% 12.3% 10.6% 4.7% 10.5%

$772.19 100.00%

$862.40 100.00%

* Includes third-party issuers. general purpose card accounts decreased by $90.22 billion in 2009, down 10.5%. Outstandings on MasterCard credit cards decreased by 12.3%, followed by American Express, down 10.6%. Visa fell by 9.8%, and Discover fell by 4.7%. Visa and Discover increased market share last year. The 507.0 million Visa and MasterCard debit and prepaid cards accounted for 46.80% of all general purpose cards in circulation, up from 39.83%

2010 The Nilson Report

80% 70% 60% 39.8% 41.9% 50% 40% 30% 20%

57.5%

Debits Growing Share of Purchase Transactions*

Credit Debit

in 2008. Prepaid cards were the main contributors to that increase. The $1.209 trillion in purchase volume generated by debit and prepaid cards equaled 40.71% of total general purpose card spending at merchants last year, up from 36.70% in 2008. The 32.25 billion purchase transactions on debit and prepaid cards accounted for 61.52% of all general purpose card purchase transactions last year, up from 57.51% in 2008. Prior issues: 924, 902, 895, 894, 874

36.9%

mastercard & Visa u.s. 2009

(from page 1)...

volume on Visa all products 10% combined grew by $4.44 bil99 00 01 02 03 04 05 06 07 08 09 lion or 0.3%, *On U.S. general purpose cards. Note: Starting in 2006, PIN debit for compared to Visa (Interlink) and MasterCard is included to match how those companies report gures. 2010 Nilson Report a decline of $52.59 billion, or 6.1% for MasterCard products. Visas market share versus MasterCard grew to 67.20% from 65.73% in 2008. Combined signature and PIN-based purchase volume on Visa debit and prepaid cards increased by $64.62 billion, up 7.9%, while credit card purchase volume, which is all signature-based, decreased by $60.18 billion or 7.3%. MasterCard signature and PIN-based debit and prepaid card purchase volume increased by $17.92 billion, up 5.8%, while credit cards fell by $70.51 billion, a 12.9% decline. Visas 72.98% share of debit/prepaid purchase

volume versus MasterCard in 2009 compared to 72.59% in 2008. The average annual purchase volume per Visa debit card was $2,310 in 2009, down from $2,532 in 2008. The average annual purchase volume per MasterCard debit card was $2,614, up from $2,491. Combined, the average amount declined to $2,385 from $2,521. Debit and prepaid cards combined generated 49.35% of all purchase volume in the Visa and MasterCard systems, up from 45.10% in 2008. Visa purchase transactions at merchants on credit, debit, and prepaid cards combined held a market share of 69.81% in 2009, up from 68.79% in 2008. Visas share of credit card purchase transactions increased to 60.46% from 59.62%, while its share of debit card purchase transactions increased to 74.14% from 73.79%. Visa and MasterCard credit, debit, and prepaid cards in circulation in the U.S. declined by 30.6 million to 980.1 million in 2009. Visa added 25.4
... turn to page 8

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mastercard & Visa u.s. 2009

(from page 7)...

million credit, debit, and prepaid cards, compared to a 56.0 million decline by MasterCard. Visas

share of cards in circulation was 66.53%, up from 62.01%. Visas debit and prepaid card base

U.S. General Purpose Credit Cards

Visa
Category 2009 Chg.

MasterCard
2009 Chg.

Amex
2009 Chg.

Discover
2009 Chg.

ACCEPTANCE LOCATIONS (mil.) 8.2 4.0% 100.0 7.4% CARDHOLDERS (mil.) CARDS (mil.) 270.1 11.1% Per Cardholder 2.70 4.0% Per Account 1.19 1.1% ACCOUNTS (mil.) 227.1 12.0% Per Cardholder 2.27 5.0% Active Accounts (mil.) 122.0 5.9% 53.7% 3.5 pts. Percent Active TRANSACTIONS (mil.) 9,119.8 2.7% 40.2 10.6% Per Account Average Amount $91 10.6% Purchases (mil.) 9,036.9 2.4% Percent of Total 99.1% 0.4 pt. Average Amount $85 5.0% Cash Advances (mil.) 82.9 29.7% Percent of Total 0.9% 0.4 pt. Average Amount $795 27.8% TOTAL VOLUME (bil.) $830.10 13.0% $3,073 2.2% Per Card Per Account $3,655 1.1% Purchases (bil.) $764.20 7.3% Percent of Total 92.1% 5.7 pts. Cash Advances (bil.) $65.90 49.3% Percent of Total 7.9% 5.7 pts. OUTSTANDINGS (bil.) $366.05 9.8% 44.1% 1.6 pts. Percent of Total Volume Per Card $1,355 1.4% Per Account $1,612 2.5% Delinquencies (bil.) $22.48 2.0% Pct. of Outstandings 6.14% 0.7 pt. GROSS CHARGE-OFFS (bil.) $40.23 43.9% 10.99% 4.1 pts. Pct. of Outstandings Pct. of Total Volume 4.85% 1.9 pts. Recoveries (bil.) $2.93 31.2% Pct. of Gross Charge-offs 7.28% 0.7 pt. NET CHARGE-OFFS (bil.) $37.30 45.0% 10.19% 3.9 pts. Pct. of Outstandings Pct. of Total Volume 4.49% 1.8 pts. Credit/Nonfraud (bil.) $36.75 46.5% Pct. of Total Volume 4.43% 1.8 pts. Net Fraud Loss (bil.) $0.55 14.9% Pct. of Total Volume 0.07% 0.0 pt.

8.2 80.0 203.0 2.54 1.19 170.0 2.13 90.0 53.0% 5,945.6 35.0 $88 5,908.8 99.4% $81 36.8 0.6% $1,318 $525.40 $2,588 $3,091 $476.90 90.8% $48.50 9.2% $267.57 50.9% $1,318 $1,574 $16.80 6.28% $29.27 10.94% 5.57% $2.01 6.86% $27.27 10.19% 5.19% $26.91 5.12% $0.36 0.07%

3.8% 4.9 5.7% 7.4 5.0% 20.0% 34.4 4.9% 40.0 5.6% 21.9% 48.9 9.4% 54.4 5.5% 2.4% 1.42 4.8% 1.36 0.1% 0.3% 1.47 0.9% 1.19 0.3% 21.7% 33.2 8.6% 45.6 5.2% 2.1% 0.96 3.9% 1.14 0.4% 19.5% 23.6 9.9% 19.3 4.7% 2.7 pts. 71.0% 1.0 pt. 42.4% 0.2 pt. 6.0% 3,622.4 7.4% 1,667.1 0.9% 19.9% 109.2 1.3% 36.6 4.5% 11.4% $117 2.9% $65 8.7% 5.8% 3,588.4 7.4% 1,635.1 0.3% 0.3 pt. 99.1% 0.0 pt. 98.1% 0.7 pt. 7.6% $117 2.5% $61 5.2% 36.1% 34.0 5.6% 32.0 26.7% 0.3 pt. 0.9% 0.0 pt. 1.9% 0.7 pt. 9.5% $113 30.5% $258 19.6% 16.8% $423.70 10.1% $108.69 9.6% 6.6% $8,665 0.7% $2,000 4.4% 6.2% $12,772 1.6% $2,383 4.6% 12.9% $419.84 9.8% $100.43 5.4% 4.1 pts. 99.1% 0.3 pt. 92.4% 4.1 pts. 42.2% $3.86 34.4% $8.26 41.0% 4.1 pts. 0.9% 0.3 pt. 7.6% 4.1 pts. 12.3% $86.06 10.6% $52.51 4.7% 2.6 pts. 20.3% 0.1 pt. 48.3% 2.5 pts. 12.3% $1,760 1.3% $966 0.8% 11.9% $2,594 2.2% $1,151 0.6% 1.3% $2.77 35.8% $2.94 14.6% 0.7 pt. 3.22% 1.3 pts. 5.60% 0.9 pt. 38.6% $6.98 29.0% $4.63 47.8% 4.0 pts. 8.11% 2.5 pts. 8.82% 3.1 pts. 2.2 pts. 1.65% 0.5 pt. 4.26% 1.7 pts. 19.5% $0.60 33.1% $0.43 26.1% 1.1 pts. 8.63% 0.3 pt. 9.30% 1.6 pts. 40.2% $6.38 28.6% $4.20 50.4% 3.8 pts. 7.41% 2.3 pts. 8.00% 2.9 pts. 2.1 pts. 1.51% 0.5 pt. 3.86% 1.5 pts. 41.3% $6.24 29.5% $4.12 58.0% 2.1 pts. 1.47% 0.5 pt. 3.79% 1.6 pts. 10.3% $0.14 2.6% $0.08 5.2% 0.0 pt. 0.03% 0.0 pt. 0.07% 0.0 pt.

Some prior year figures have been restated. American Express and Discover include third-party issuers. Third-party outstandings are not owned nor managed by Discover or Amex. 2010 The Nilson Report

FebruarY 2010 issue 942 the NilsoN report

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U.S. Visa & MasterCard Debit & Prepaid Cards

Visa
Category 2009 Chg.

MasterCard
2009 Chg. 2009

Total
Chg.

CARDS (mil.) 382.0 18.3% ACCOUNTS (mil.) 282.0 23.1% Active Accounts (mil.) 159.9 24.9% 56.7% 0.8 pt. Percent Active TRANSACTIONS (mil.) 26,879.1 13.0% 95.3 8.2% Per Account Average Amount $44 4.0% Purchases (mil.) 23,908.6 13.8% Percent of Total 88.9% 0.6 pt. Average Amount $37 5.2% Cash Withdrawals (mil.) 2,970.5 7.4% Percent of Total 11.1% 0.6 pt. Average Amount $101 2.8% TOTAL VOLUME (bil.) $1,184.10 8.5% $4,199 11.9% Per Account Purchases (bil.) $882.60 7.9% Percent of Total 74.5% 0.4 pt. Cash Withdrawals (bil.) $301.50 10.4% Percent of Total 25.5% 0.4 pt.

125.0 121.0 59.4 49.1% 9,343.5 77.2 $48 8,340.9 89.3% $39 1,002.6 10.7% $123 $450.40 $3,722 $326.80 72.6% $123.60 27.4%

0.8% 507.0 4.3% 403.0 7.1% 219.3 1.3 pts. 54.4% 10.9% 36,222.6 6.3% 89.9 3.9% $45 11.7% 32,249.5 0.7 pt. 89.0% 5.3% $38 4.3% 3,973.1 0.7 pt. 11.0% 4.1% $107 6.5% $1,634.50 2.1% $4,056 5.8% $1,209.40 0.5 pt. 74.0% 8.5% $425.10 0.5 pt. 26.0%

13.4% 16.8% 19.5% 1.2 pts. 12.5% 3.7% 4.0% 13.2% 0.6 pt. 5.2% 6.6% 0.6 pt. 3.0% 8.0% 7.6% 7.3% 0.4 pt. 9.8% 0.4 pt.

and prepaid, up from 44.23% in 2008. Visas card base was 41.42% credit, down from 48.46%. MasterCards card base was 61.89% credit, down from 67.71%, Prepaid Visa and MasterCard cards increase the number of debit cards in circulation to a greater extent than they increase debit purchase volume because most are the one-timeuse type and spending per card is low compared to a debit card tied to a traditional deposit account. Visa and MasterCard credit card purchase volume combined declined by $130.69 billion, or 9.5% in 2009. Visa held a 61.57% share, up from 60.10% in 2008. Annual average purchase volume per Visa credit card was $2,829, up from $2,714 the prior year. For MasterCard, the annual average credit card purchase volume was $2,349, up from $2,105.
turn to page 12

Includes PIN-based debit figures for MasterCard and Visa (Interlink).

increased by 59.0 million, while its credit card base decreased by 33.6 million. MasterCards debit and prepaid card base increased by 1.0 million, while its credit

2010 The Nilson Report

card base decreased by 57.0 million. Of the 980.1 million total Visa and MasterCard cards in circulation, 51.73% were debit

Visa & MasterCard Purchase Volume

Market Shares 2009
61.6% 38.4%

U.S. Visa & MasterCard Credit & Debit & Prepaid Card Totals
Visa
Category 2009 Chg.

MasterCard
2009 Chg.

Total
2009 Chg.

Credit
from 60.1%

Visa

MasterCard

from 39.9%

73.0%

Debit
from 72.6% from 27.4%

Visa

27.0% MasterCard

67.2% 32.8%

Credit & Debit

from 65.7%

Visa

MasterCard

from 34.3%

Debit includes PIN-based gures. 2010 The Nilson Report

CARDS (mil.) ACCOUNTS (mil.) Active Accounts (mil.) Percent Active TRANSACTIONS (mil.) Per Account Average Amount Purchases (mil.) Percent of Total Average Amount Cash (mil.) Percent of Total Average Amount TOTAL VOLUME (bil.) Per Account Purchases (bil.) Percent of Total Cash (bil.) Percent of Total

652.1 509.1 281.8 55.4% 33,998.9 70.7 $56 32,945.5 91.5% $50 3,053.4 8.5% $120 $2,014.20 $3,956 $1,646.80 81.8% $367.40 18.2%

4.1% 4.5% 9.4% 2.5 pts. 8.6% 3.9% 9.3% 8.8% 0.2 pt. 7.9% 5.9% 0.2 pt. 13.9% 1.5% 5.8% 0.3% 1.5 pts. 8.8% 1.5 pts.

328.0 291.0 149.4 51.3% 15,289.1 52.5 $64 14,249.7 93.2% $56 1,039.4 6.8% $166 $975.80 $3,353 $803.70 82.4% $172.10 17.6%

14.6% 980.1 3.0% 12.6% 800.1 2.4% 10.7% 431.3 1.5% 1.1 pts. 53.9% 2.1 pts. 3.6% 51,288.0 7.1% 18.6% 64.1 9.7% 10.7% $58 9.9% 3.8% 47,195.2 7.3% 0.1 pt. 92.0% 0.2 pt. 9.5% $52 8.6% 2.0% 4,092.8 4.9% 0.1 pt. 8.0% 0.2 pt. 14.7% $132 14.4% 7.4% $2,990.00 3.5% 5.9% $3,737 1.1% 6.1% $2,450.50 1.9% 1.1 pts. 82.0% 1.3 pts. 13.0% $539.50 10.2% 1.1 pts. 18.0% 1.3 pts.
2010 The Nilson Report

Includes PIN-based debit figures for MasterCard and Visa (Interlink).

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FebruarY 2010 issue 942 the NilsoN report

50 Largest Visa & MasterCard Credit Card Issuers

Issuer, State of Charter 09 08 Rank Rank Outstandings (mil.) Chg. 09 08 Rank Rank Total Volume (mil.) Chg. 09 08 Rank Rank Purchase Volume (mil.) Chg. 09 Rank Total Accounts (000) Chg.

United States 2009, Ranked by Outstandings

09 Rank Active Accounts (000) Chg. 09 Rank Credit Cards (000) Chg. 09 Rank Visa Cards (000) Chg. 09 Rank MasterCard Cards (000) Chg.

JPMorgan Chase Delaware Bank of America Delaware Citigroup S. Dak., Nev., Md. Capital One Virginia Wells Fargo South Dakota HSBC Delaware U.S. Bank North Dakota USAA Savings Nevada Barclays Delaware Target South Dakota Navy FCU Virginia PNC Bank Delaware First Natl of Omaha Nebraska GE Money Utah Fifth Third Bank Ohio Cabelas WFB Nebraska RBS Citizens Rhode Island BB&T Financial Georgia Nordstrom Arizona State Farm Bank Illinois Pentagon FCU Virginia Associated Bank Wisconsin Town North Bank Texas SunTrust Bank Georgia Merrick Bank Utah Credit One Bank Nevada 1st Financial Bank S. Dakota ICBA Bancard Virginia San Diego County CU Calif. Commerce Bank Missouri Premier Bankcard So. Dakota Suncoast Schools FCU Florida CompuCredit Georgia BECU Washington Compass Bank Alabama TIB-The Ind. Bankers Texas America First CU Utah SchoolsFirst FCU California Pa. State Employees CU Pa. BMW Bank Utah M&I Bank Nevada First Hawaiian Bank Hawaii TD Bank Delaware Digital FCU (DCU) Mass. First Citizens N.C. VyStar CU Florida Columbus B&T Georgia UMB Missouri Wescom CU California American Savings Hawaii

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

1 2 3 4 5 6 7 8 9 10 14 13 12 15 18 17 16 21 22 20 23 24 25 30 27 26 28 29 33 31 32 34 19 37 36 35 39 38 43 40 41 42 48 44 46 45 47 51 49 68

Totals, Top 50, 2009

$156,197.3 $134,723.7 $103,200.0 $53,880.0 $31,966.0 $23,225.0 $21,247.1 $12,697.5 $11,247.2 $7,655.0 $4,618.0 $4,584.8 $4,121.3 $2,966.7 $2,492.5 $2,412.0 $2,368.0 $1,767.9 $1,581.7 $1,581.2 $1,564.9 $1,259.0 $1,131.8 $1,020.0 $1,009.7 $981.0 $946.0 $945.0 $941.3 $935.7 $913.0 $701.5 $650.0 $607.9 $604.5 $562.4 $424.0 $407.4 $403.0 $394.7 $370.2 $362.0 $341.0 $329.6 $313.7 $307.9 $303.1 $273.3 $233.9 $222.2 $603,992.5

15% 16% 3% 10% 12% 15% 15% 4% 2% 11% 11% 7% 16% 4% 8% 3% 5% 16% 9% 3% 14% 7% 9% 9% 7% 16% 1% 1% 21% 4% 7% 1% 68% 10% 2% 20% 22% 3% 22% 8% 5% 3% 35% 1% 7% 0% 13% 18% 7% 48% 11%

1 2 3 4 6 7 5 9 8 12 14 10 13 15 16 11 17 20 18 21 26 59 27 19 49 36 43 23 50 24 31 51 79 32 38 28 37 54 60 47 30 29 41 46 33 63 40 34 69 87

1 2 3 4 6 7 5 8 9 13 16 11 14 18 17 14 19 21 20 23 28 50 30 22 44 36 41 24 51 26 37 52 33 34 43 29 42 55 61 48 32 31 54 45 38 64 49 39 63 86

$339,828.9 $250,666.1 $204,557.0 $101,274.0 $53,940.0 $35,344.0 $73,898.9 $25,996.6 $30,126.9 $10,068.9 $6,951.9 $16,575.0 $8,053.1 $5,769.9 $5,449.1 $10,700.0 $5,254.8 $4,839.7 $5,161.0 $3,905.4 $2,656.8 $490.0 $2,090.9 $4,985.7 $728.6 $1,015.0 $858.7 $3,594.0 $680.2 $3,310.8 $1,405.7 $639.4 $285.0 $1,282.2 $946.7 $1,828.4 $960.0 $585.0 $466.1 $821.7 $1,454.0 $1,625.4 $916.1 $826.3 $1,145.1 $399.0 $921.9 $1,063.2 $352.8 $242.8 $1,236,938.7

10% 21% 17% 13% 7% 19% 0% 2% 17% 20% 0% 18% 14% 2% 4% 4% 1% 4% 0% 11% 15% 38% 1% 8% 22% 22% 15% 18% 12% 10% 11% 12% 79% 5% 2% 19% 4% 13% 2% 8% 3% 6% 29% 11% 5% 9% 4% 4% 19% 10% 13%

1 2 3 4 6 7 5 9 8 12 14 10 13 15 19 11 17 20 16 22 26 130 27 18 49 36 43 23 61 25 31 52 82 32 41 28 47 54 57 46 30 29 40 44 33 63 38 34 68 119

1 2 3 4 6 7 5 8 9 12 16 11 15 17 19 14 20 22 18 25 30 103 29 21 47 37 41 23 62 26 35 56 36 34 48 28 49 55 58 46 32 31 51 43 38 63 45 39 67 127

$314,370.7 $220,447.3 $187,744.0 $93,500.0 $46,360.0 $32,144.0 $67,885.6 $24,061.6 $28,344.1 $9,981.0 $6,353.6 $12,875.9 $7,811.9 $5,733.6 $4,719.0 $10,000.0 $4,823.1 $4,554.2 $5,132.6 $3,749.7 $2,272.6 $55.6 $1,939.8 $4,810.7 $671.3 $958.1 $831.4 $3,344.0 $379.3 $2,973.0 $1,379.9 $536.0 $250.0 $1,209.2 $844.5 $1,760.5 $748.1 $515.0 $458.5 $801.0 $1,433.8 $1,595.1 $846.2 $816.9 $1,107.4 $373.2 $898.2 $1,052.2 $332.2 $116.0 $1,125,901.4

8% 12% 12% 9% 6% 16% 0% 0% 23% 20% 4% 1% 6% 5% 1% 4% 7% 4% 0% 3% 17% 68% 2% 9% 20% 21% 15% 17% 6% 16% 12% 8% 80% 3% 4% 18% 3% 12% 1% 5% 2% 6% 31% 11% 5% 7% 4% 4% 13% 9% 8%

1 3 2 4 7 5 9 13 10 6 21 15 12 8 16 18 17 24 20 26 33 63 29 34 27 19 28 25 71 30 11 44 22 48 32 31 47 43 52 39 37 42 41 45 40 58 36 35 56 114

75,041 46,252 56,623 33,571 15,200 27,643 9,687 3,184 5,792 22,001 1,793 2,603 3,733 12,093 2,587 2,110 2,222 1,071 1,979 793 413 85 592 289 722 2,049 641 1,020 64 542 4,099 164 1,620 151 430 534 151 172 131 221 229 181 202 164 220 107 252 283 113 31 341,849

18% 34% 11% 8% 2% 12% 10% 3% 13% 2% 12% 6% 27% 3% 19% 11% 5% 5% 8% 0% 11% 27% 15% 5% 18% 18% 3% 14% 1% 2% 6% 1% 45% 2% 1% 17% 0% 1% 6% 6% 4% 3% 17% 2% 9% 2% 2% 15% 1% 9% 14%

1 3 2 4 6 5 7 12 8 10 19 16 15 11 18 14 17 25 20 27 33 63 26 32 22 13 29 24 59 30 9 41 21 40 38 28 50 52 54 44 36 35 39 47 45 62 42 34 51 113

42,473 25,088 36,239 20,174 6,800 13,588 5,709 2,774 4,668 3,450 787 1,092 1,136 2,972 914 1,250 957 545 772 429 246 50 430 287 628 1,715 402 560 61 340 3,459 123 750 133 135 428 90 85 85 103 139 142 133 94 101 55 122 165 88 21 182,988

19% 13% 11% 7% 1% 11% 8% 6% 2% 18% 6% 2% 8% 4% 8% 10% 1% 11% 8% 4% 4% 12% 12% 8% 18% 15% 13% 12% 20% 2% 7% 1% 70% 3% 0% 21% 0% 0% 6% 3% 0% 2% 14% 5% 4% 2% 10% 16% 7% 2% 12%

1 3 2 4 7 5 9 12 10 6 21 14 11 8 19 17 16 18 23 26 29 64 28 34 30 22 32 25 70 27 13 42 20 43 33 31 46 47 51 49 41 45 40 50 36 59 35 39 57 112

93,801 54,088 79,200 40,874 17,400 32,615 12,373 2,774 10,757 23,887 1,738 3,514 4,564 14,511 2,242 2,470 2,519 2,339 1,502 1,154 619 100 693 375 565 1,706 534 1,160 81 814 3,895 249 1,900 248 440 536 203 202 182 188 261 241 265 187 321 130 342 282 133 38 422,930

18% 29% 14% 12% 0% 13% 11% 6% 1% 2% 11% 6% 26% 3% 8% 10% 9% 52% 6% 4% 12% 21% 15% 4% 32% 15% 9% 12% 2% 5% 7% 16% 49% 3% 5% 20% 1% 0% 5% 19% 2% 6% 30% 3% 2% 1% 22% 14% 3% 10% 14%

1 2 6 4 5 9 7 27 10 3 18 12 11 8 33 13 114 14 17 19 22 54 39 28 23 16 25 20 57 21 29 37 15 38 24 26 41 42 46 43 36 74 35 44 31 50 30 34 49 96

55,701 36,914 15,200 22,874 15,400 6,721 12,031 390 4,019 23,887 1,469 3,433 3,978 6,961 286 2,470 20 2,208 1,502 1,154 608 100 233 375 477 1,697 430 880 81 736 350 249 1,700 248 431 423 203 202 182 188 260 57 265 187 289 127 322 282 133 38 228,370

19% 28% 14% 5% 1% 12% 11% 6% 2% 2% 10% 5% 26% 24% 28% 10% 60% 53% 6% 4% 12% 20% 33% 4% 41% 15% 9% 12% 2% 2% 18% 16% 48% 3% 5% 19% 1% 0% 5% 19% 2% 12% 30% 3% 2% 1% 25% 14% 3% 10% 12%

2 5 1 4 12 3 17 8 7 20 30 15 6 13 11 23 56 81 16 28 61 27 19 33 9 21 63 25 80 22 41 75 48

38,100 17,174 64,000 18,000 2,000 25,894 342 4,103 6,738 0 269 81 586 7,550 1,956 0 2,499 131 0 0 12 <1 460 0 89 9 104 280 0 77 3,545 0 200 0 9 114 0 0 0 0 <1 184 0 0 32 3 21 0 0 0 194,561

17% 33% 13% 19% 2% 13% 16% 3% 7% 15% 36% 28% 11% 6% 8% 41% 11% 99% 28% 273% 14% 9% 13% 26% 11% 60% 12% 22% 13% 4% 3% 16% 9% 16%

Includes both consumer and commercial cards. Some prior year figures have been restated. Use percent change to calculate the 2008 results. IIssuers with total $1,040.0 mil.), Zions (#39, $945.9 mil.), Comerica (#42, $887.9 mil.), Regions (#44, $846.5 mil.), First Horizon (#45, $828.5 mil.), and RBC (#48, $748.3).

volume in the top 50 but with outstandings less than the top 50 include Comdata (#22, $3,803.6 mil.), Wright Express (#25, $3,082.8 mil.), BMO Harris (#35,

2010 The Nilson Report

10

FebruarY 2010 issue 942 the NilsoN report

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11

mastercard & Visa u.s. 2009

(from page 9)...

Visa issuers lost $39.75 billion in outstandings, while MasterCard issuers lost $37.65 billion. Visa held a 57.77% market share at year-end, up from 57.07% the prior year. Purchase transactions generated by MasterCard and Visa debit and prepaid cards increased by 13.2% last year. Credit card purchase transactions

fell by 3.7%. Debit and prepaid signature and PIN-based purchase transactions increased by 3.77 billion compared to a decrease of 0.58 billion for credit cards. Debit and prepaid cards generated a 68.33% share of combined Visa and MasterCard card transactions at merchants, up from 64.71% in 2008.

argus information & adVisory serVices

(from page 1)...

profitability. It is best known for syndicated benchmark studies based on data supplied by issuers. Argus receives the full master file of data on each cardholder pertaining to behavior, transactions, pricing, and risk. Contributors are the 20 largest U.S. issuers, which

collectively account for 600 million accounts and 95% of the consumer card and 90% of the small business card markets. In the U.K., Argus now supplies services to 9 of the top 10 issuers. Collectively those portfolios account for more than 80% of the market. The economic crisis has increased issuers need to assess and track internal performance relative to external benchmarks. Participating issuers typically request benchmarks that reflect combinations of product type, vintage, and risk. All metrics in the studies aggregate data across at least five competitors to safeguard each participants confidential data. Issuers dont see competitor data and Argus doesnt see the names of cardholders. No marketing lists are generated.

In addition to its syndicated models and provides credit studies of the external marketbureau attributes to enhance place, Argus sells CardProfit benchmark data. Last year, software, which makes an the Office of the Comptroller issuers internal data wareof the Currency gave Argus house, or its data held at a a contract to provide data third-party processor, more aggregation support. The comuseful. CardProfit provides pany is looking for additional a model with all of the data, partners to provide added reports, and ongoing mainvalue to its customers. It is also tenance needed for customer looking to expand its current and portfolio management. staff with consumer financial The software has services executives with been deployed at 8 data management, data ...majority of the top 20 U.S. analysis, modeling, and owned by credit card issuers. consulting experience. Argus also provides Argus has been mamentS Since advisory services jority owned by Oak 2007. on product design Investments since 2007. and development, Funding has been used risk management, and marto broaden its product range keting. Clients have included and to help scale its business. nearly all of the top consumer In the U.S., Argus has begun financial services providers broadening data aggregation in the U.S. and U.K. Projects beyond cards to include dehave included activation and posit accounts. Leonard Laufer retention programs, spending is CEO at Argus Information programs, balance generation & Advisory Services in White programs, credit line increase Plains, New York, and decrease programs, and (914) 307- 3152, llaufer@ collections. argusinformation.com. Prior issues: 940, 807 First Data offers its cardholder account customers Argus studies and CardProfit. SAS Institute software is used by Argus for modeling. TransUnion works with Argus David Robertson, Publisher to develop custom and generic FebruarY 17, 2010

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1010data www.1010data.com 1st Financial Bank www.1fbusa.com Alibaba Group www.alibaba.com Alipay www.alipay.com Alliance Data www.alliancedata.com America First CU www.americafirst.com American Express www.americanexpress.com American Savings www.americansavings.com Argus Info & Advisory www.argusinformation.com Associated Bank www.associatedbank.com B+S Card Service www.bs-card-service.com Bank of America www.bankofamerica.com Barclays Bank www.barclays.com BB&T Financial www.bbandt.com BECU www.becu.org BMW Bank www.bmwbank.com Cabelas WFB www.cwfb.com Capital One www.capitalone.com Carrefour www.carrefour.com Cedacri www.cedacri.it China UnionPay www.chinaunionpay.com
FEBRUARY 2010 ISSUE 942 THE NILSON REPORT

Citi www.citi.com Columbus B&T www.columbusbankandtrust.com Commerce Bank www.commercebank.com Compass Bank www.compassbank.com CompuCredit www.compucredit.com Credit One Bank www.creditonebank.com Digital FCU www.dcu.org Discover www.discover.com e-onlinedata www.e-onlinedata.com Elan Financial Services www.elanfinancialser vices.com Elavon www.elavon.com eCommLink www.ecommlink.com Equifax www.equifax.com FICO www.fico.com Fifth Third Bank www.53.com First Citizens www.firstcitizens.com First Data www.firstdata.com First Hawaiian Bank www.fhb.com First Natl of Omaha www.fnni.com Galileo Processing www.galileoprocessing.com GE Money www.gemoney.com

Gemalto www.gemalto.com Global Cash www.globalcashcard.com GlobalPlatform www.globalplatform.org Heartland Payment Systems www.heartlandpaymentsystems.com HSBC www.hsbc.com HTC www.htc.com Hypercom www.hypercom.com I&M Bank www.imbank.co.ke ICBA Bancard www.icba.org IIR Espaa www.iirspain.com InComm www.incomm.com Integrated Bank Technology www.ibanktech.net IQPC www.iqpc.com JPMorgan Chase www.jpmorganchase.com M&I Bank www.mandibank.com Masria Card www.masriacard.com MasterCard www.mastercard.com Mercury Payment Systems www.mercurypay.com Merrick Bank www.merrickbank.com Mobile Financial Services www.mobile-financialservices.com Navy FCU www.navyfederal.org

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Netsize www.netsize.com NetSpend www.netspend.com Network Merchants www.nmi.com Nokia www.nokia.com Nordstrom www.nordstrom.com Oak Investment Partners www.oakventure.com Pennsylvania State Employees CU www.psecu.com Pentagon FCU www.penfed.org Persolvo Data Systems www.persolvodatasystems.com Pivotal Payments www.pivotalpayments.com PKO Bank Polski www.pkobp.pl PNC Bank www.pnc.com Premier Bancard www.firstpremier.com RBS Citizens www.citizensbank.com Retail Banking Research www.rbrlondon.com San Diego County CU www.sdccu.com SAS Institute www.sas.com SchoolFirst FCU www.schoolfirstfcu.org Seamless ERS 360 www.seamless.se Secure Trading www.securetrading.com SIA SSB www.siassb.eu State Farm Bank www.statefarm.com Suncoast Schools FCU www.suncoastfcu.org SunTrust Bank www.suntrust.com Swedbank www.swedbank.se Taobao.com www.taobao.com Target www.target.com TD Bank www.td.com Thales e-Security www.thalesesec.com The Bancorp Bank www.thebancorp.com The Independent Bankers Bank TIB www.tibsite.com Town North Bank www.tnbonline.com TransUnion www.transunion.com Trustwave www.trustwave.com TSYS www.tsys.com U.S. Bank www.usbank.com UMB www.umb.com USAA www.usaa.com Vesess www.vesess.com Visa www.visa.com Vision Bankcard www.visionbankcard.net Voltage Security www.voltage.com VyStar CU www.vystarcu.org Wells Fargo www.wellsfargo.com Wescom CU www.wescom.org

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