1. Income Analysis of Consumer Payment Methods & Rewards vs. Non-Rewards Credit Cards Phoenix Marketing International (PMI) Financial Services Division July 2012 Greg Weed Greg.weed@phoenixmi.com (828) 697-9191 Contact Information: Copyright © Phoenix Marketing International 2012. All Rights Reserved. Chart Excerpts from PMI Research Report:

2. 2 Incidence of Owning a Rewards Card vs. Non-Rewards Card – by Income Group -- 2011 Copyright © Phoenix Marketing International 2012. All Rights Reserved. Within each income group, the incidence of owning a rewards card was significantly higher than the incidence of owning a non-rewards card. Percent of Credit Card Households Owning Rewards vs. Non-Rewards Credit Cards Within Income Group Chart 1 Source: Phoenix Credit Card Market Tracker, January-December 2011. Total Sample: 18,905 consumer credit cardholders aged 21+ with HHI $20K+.

3. 3 Credit Card Spending Dollars -- 2011 % Spending Dollars on Non-Rewards Accounts% Spending Dollars on Rewards Accounts Copyright © Phoenix Marketing International 2012. All Rights Reserved. Percent of Credit Card Spending Dollars on Rewards vs. Non-Rewards Accounts Within Income Group Chart 2 Within each income group, share of total credit card spending dollars was far higher on rewards accounts vs. non-rewards accounts. 92% % Card HHs Active on Any Card Owned in an Average Month Within Each Income Group 93% 91% 92% 94% 92% 96% 93% 98% Source: Phoenix Credit Card Market Tracker, January-December 2011. Total Sample: 18,905 consumer credit cardholders aged 21+ with HHI $20K+.

4. 4 Credit Card Spending Dollars -- 2003 % Spending Dollars on Non-Rewards Accounts% Spending Dollars on Rewards Accounts Copyright © Phoenix Marketing International 2012. All Rights Reserved. Percent of Credit Card Spending Dollars on Rewards vs. Non-Rewards Accounts Within Income Group Chart 2a In 2003, the share of total credit card spending dollars far higher on rewards accounts than non-rewards accounts only at higher income levels. Source: Phoenix Credit Card Market Tracker, January-December 2003. Total Sample: 14,304 consumer credit cardholders aged 21+ with HHI $20K+.

5. 5 Credit Card Revolving Balance Dollars % Revolving Balance Dollars on Non-Rewards Accounts% Revolving Balance Dollars on Rewards Accounts Copyright © Phoenix Marketing International 2012. All Rights Reserved. Percent of Credit Card Revolving Balance Dollars on Rewards vs. Non-Rewards Accounts Within Income Group Chart 3 Within each income group, share of balances was higher on rewards accounts vs. non-rewards accounts – particularly among upper-income credit card-owning households. 65% % Card HHs Revolving a Balance on Any Card Owned in an Average Month Within Each Income Group 58% 62% 65% 60% 61% 48% 56% 43% Source: Phoenix Credit Card Market Tracker, January-December 2011. Total Sample: 18,905 consumer credit cardholders aged 21+ with HHI $20K+.

6. 6 Credit Card Revolving Balance Dollars -- 2003 % Revolving Balance Dollars on Non-Rewards Accounts% Revolving Balance Dollars on Rewards Accounts Copyright © Phoenix Marketing International 2012. All Rights Reserved. Percent of Credit Card Revolving Balance Dollars on Rewards vs. Non-Rewards Accounts Within Income Group Chart 3a In 2003, the balance share profile was reversed – with a higher percentage of revolving balances carried on non-rewards cards than rewards cards. 59% % Card HHs Revolving a Balance on Any Card Owned in an Average Month Within Each Income Group 56% 60% 61% 59% 58% 50% 54% 38% Source: Phoenix Credit Card Market Tracker, January-December 2003. Total Sample: 14,304 consumer credit cardholders aged 21+ with HHI $20K+.

7. 7 Credit Card Annual Fee Dollars -- 2011 % Annual Fee Dollars Paid on Non-Rewards Accounts% Annual Fee Dollars Paid on Rewards Accounts Copyright © Phoenix Marketing International 2012. All Rights Reserved. Percent of Credit Annual Fees Paid on Rewards vs. Non-Rewards Accounts Within Income Group Chart 4 Within each income group, share of annual fee dollars was higher on rewards accounts vs. non-rewards accounts – particularly among upper- income credit card-owning households. 32% % Card HHs Paying an Annual Fee on Any Card Owned in an Average Month Within Each Income Group 34% 29% 30% 32% 31% 40% 32% 55% Source: Phoenix Credit Card Market Tracker, January-December 2011. Total Sample: 18,905 consumer credit cardholders aged 21+ with HHI $20K+.

8. 8 Credit Card Revenue Value* -- 2011 % Revenue Dollars Value on Non-Rewards Accounts% Revenue Dollar Value on Rewards Accounts Copyright © Phoenix Marketing International 2012. All Rights Reserved. Percent of Revenue Value on Rewards vs. Non-Rewards Accounts Within Income Group Chart 5 Within each income group, share of revenue value *was higher on rewards accounts vs. non-rewards accounts – particularly among upper- income credit card-owning households. * Revenue value figures were derived from cardholder reported data on spending, revolving balances, account APR and annual fees. A revenue value model was created to identify proxies for interchange, finance charge s and annual fee value. Source: Phoenix Credit Card Market Tracker, January-December 2011. Total Sample: 18,905 consumer credit cardholders aged 21+ with HHI $20K+.