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Merrick Bank, a subsidiary of CardWorks, Inc., and E-Duction, Inc. today announced that they have entered into a long-term strategic relationship to support the E-Duction CLEAR Card program.  Under the terms of the agreement, E-Duction will continue to provide its leading employment-based financial services and payroll deduction payment processing to its customers, while Merrick Bank will bring to bear its considerable cardholder service capabilities and funding capacity to the program.

The CLEAR Card, which is offered as an employee benefit at leading corporations throughout the country, is processed like other credit, debit or check cards, and is a versatile financial tool that helps employees pay for out-of-pocket healthcare and other everyday living expenses.  Employees enroll in the CLEAR Card program through a dedicated website or a toll-free number and make purchases on the card anywhere that MasterCard is accepted.  The employee then pays for purchases in equal installments, with no interest charges assessed, via automatic payroll deduction.  No advance contributions are required and there are no late fees while the payments are deducted automatically from employees’ paychecks.  To administer the program, companies only need an automated payroll system – no additional software is required – and there is no financial cost or risk to participating employers.

“We chose to partner with E-Duction in order to combine their strengths in serving the needs of their clients with our expertise in cardholder support and experience in working with emerging financial services technology applications related to the credit card industry,” said Rick Urrutia, President of Merrick Bank.  “As proven leaders in the field of credit card services and issuance, we look forward to continuing to build upon our track record through our partnership with innovative companies like E-Duction.”

Paul Chicos, CEO of E-Duction and a veteran employee benefits strategist, commented, “Our current employer clients and future partners alike will be well-served by this strong partnership with Merrick Bank.”  Mr. Chicos added, “This new relationship is a testament to both the need for the CLEAR Card in the current credit crunch and Merrick Bank’s well-deserved reputation for innovation.”

Additional terms of the five-year relationship were not disclosed, but the agreement provides for full customer care, including employer client service, employee cardholder service by web, mail and telephone, and all payment processing and related funding for current program accounts and all future growth.

About E-Duction

E-Duction, Inc. is the leading employment-based financial services firm providing guaranteed-issue, reasonably-priced credit solutions that help employers, employees, health plans and banks work together.  The company was launched to capitalize on a growing trend in payment technology - payroll deduction.  In 2002, E-Duction introduced the first payroll deduction card, the CLEAR Card, that gives employees interest-free purchasing power.  The CLEAR Card is an innovative voluntary benefit that allows employees to make purchases at more than 33 million MasterCard acceptance locations worldwide and spread payments out over future paychecks.

About Merrick Bank

Merrick Bank, a wholly owned subsidiary of CardWorks, Inc. was founded in 1997 and is a premier issuer of credit cards.  Merrick bank is a top-25 issuer of Visa® cards, as well as an authorized issuer of MasterCard® cards.  It serves approximately 1 million cardholders and has over $1 billion in assets. Merrick Bank is a Utah Financial Institution and is a member of the FDIC.

About CardWorks

CardWorks, Inc. is the parent company of CardWorks Servicing, CardWorks Processing, CardWorks Acquiring, and Merrick Bank.  CardWorks Servicing is a nationally recognized, leading servicer of credit cards, national debit cards, pre-funded cards and other unique card products and is the largest privately held servicer of MasterCard®/Visa® cards.  The services provided are transparent to cardholders, with specifications driven by each individual organization’s needs.