First Data Releases August 2011 SpendTrend®

Credit Card Spending Up in August on Heavy Back-to-School Promotions

ATLANTA--(BUSINESS WIRE)--First Data Corporation, a global leader in electronic commerce and payment processing, today released its First Data SpendTrend^® analysis for the full month of August 2011 compared to August 2010. SpendTrend tracks same-store consumer spending by credit, signature debit, PIN debit, EBT cards and checks at U.S. merchant locations.

“In August, consumers were drawn to stores by aggressive Back-to-School promotions. These sales increased overall card spending despite lower average prices. The exception was the East coast where we saw a slowdown in card spending growth in the last week of August because of Hurricane Irene”

Overall year-over-year dollar volume growth was up 9.0% in August compared to 7.3% in July. In August, misc. store retailers and non-store (mail/telephone order) retailers drove overall retail growth of 9.2% with Back-to-School discounting in these subcategories. Overall average ticket growth at retailers grew only 0.3%, exceptionally low considering government figures showed inflation exceeded 3.0% in recent months.

Credit dollar volume growth was up 12.4% and transaction growth increased 11.7% in August, both 13-month highs. Credit has led all other payment types at the point of sale three of the previous four months. Federal Reserve data show that credit balances have increased in two of the previous three months. Consumers continued to increase their use of credit cards on non-discretionary purchases such as gas and food.

“In August, consumers were drawn to stores by aggressive Back-to-School promotions. These sales increased overall card spending despite lower average prices. The exception was the East coast where we saw a slowdown in card spending growth in the last week of August because of Hurricane Irene,” said Silvio Tavares, SVP and division manager of First Data Information and Analytics Solutions, which publishes SpendTrend.

August Transaction Growth	CHANGE	August Dollar Volume Growth	CHANGE
Credit	+11.7%	Credit	+12.4%
Signature Debit	+5.7%	Signature Debit	+4.9%
PIN Debit	+5.6%	PIN Debit	+7.0%
Check	-10.2%	Check	-11.0%
Note: All transactions are same-store growth.

For more information on First Data SpendTrend, visit www.firstdata.com/infoanalytics or call SpendTrend Customer Care at 800-430-0169. A supplementary podcast including further analysis of the SpendTrend August 2011 report is available here.

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Around the world, every second of every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. First Data leverages its vast product portfolio and expertise to drive customer revenue and profitability. Whether the choice of payment is by debit or credit card, gift card, check or mobile phone, online or at the checkout counter, First Data takes every opportunity to go beyond the transaction.

First Data SpendTrend, a macro-economic indicator, is based on aggregate same-store sales activity in the First Data Point of Sale Network. First Data SpendTrend does not represent First Data’s financial performance.