Household HSBC Watch

NEW YORK–(BUSINESS WIRE)–Sept. 13, 2005–HSBC Bank USA, N.A., (NYSE: HBC) the U.S. banking unit of one of the world’s largest financial services companies, today announced it has begun issuing new debit cards that feature MasterCard(R) PayPass(TM) contactless payment technology to its new and existing customers. With the issuance of these new contactless payment cards, HSBC becomes one of the first U.S. banks to provide its customers with a faster, more convenient shopping experience. The bank expects to issue about 1 million cards through the end of 2005 and will be the first bank to completely reissue its debit cards to include PayPass.

MasterCard PayPass allows cardholders to speed through checkout by simply tapping on specially equipped merchant terminals to pay. PayPass eliminates the need for consumers to fumble for cash and coins, hand over their payment card to a clerk or swipe it through a reader. At selected merchants, signatures may not be required for purchases under $25, further speeding customer’s transactions.

“Now if they could further speed statements and applied payments they might be on the right track” said Household - HSBC Watch consumer advocates. “They are paving the way for absorbing Metris” the group said.