SEC Form 4
FORM 4

[X] Check this box if no longer
subject to Section 16. Form 4 or Form
5 obligations may continue.
See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person*
Melvin, Carolyn     S.
(Last)                      (First)                      (Middle)
17655 Waterview Parkway

(Street)
Dallas, TX     75252-8012
(City)                      (State)                      (Zip)

 2. Issuer Name and Ticker
    or Trading Symbol

Alliance Data Systems Corporation   ADS
3. I.R.S. Identification
    Number of Reporting
    Person, if an entity
    (voluntary)
 4. Statement for
    (Month/Year)

    September 2001

5. If Amendment,
    Date of Original
    (Month/Year)
 6. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

                        Director                           10% Owner
           X          Officer                             Other

Officer/Other
Description           Senior Vice President and Assistant General Counsel
7. Individual or Joint/Group
    Filing (Check Applicable Line)

X   Individual Filing
      Joint/Group Filing
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security
    (Instr. 3)

 2. Transaction Date
    (Month/Day/Year) 		3. Transaction
    Code
    and
    Voluntary
    Code
    (Instr. 8)

Code  |  V    
4. Securities Acquired (A) or Disposed (D) Of
    (Instr. 3, 4, and 5)





        Amount      |         A/D         |         Price          
5. Amount of
    Securities
    Beneficially
    Owned at
    End of Month

    (Instr. 3 and 4) 		6. Owner-
    ship
    Form:
    Direct(D)
    or
    Indirect (I)

    (Instr. 4) 		7. Nature of
     Indirect
     Beneficial
     Ownership

    (Instr. 4)
Common


13,000 (1)
D







Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

(over)
SEC 1474 (3-99)

Melvin, Carolyn S. - September 2001
Form 4 (continued)
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
    (Instr. 3) 		2. Conver-
    sion or
    Exercise
    Price of
    Deri-
    vative
    Security 		3. Transaction
    Date

    (Month/
    Day/
    Year) 		4. Transaction
    Code
    and
    Voluntary (V)
    Code
    (Instr.8)





Code | V    
5. Number of Derivative
    Securities Acquired (A)
    or Disposed (D) Of

    (Instr. 3,4 and 5) 		6. Date Exercisable(DE) and
    Expiration Date(ED)
    (Month/Day/Year)








  (DE)     |     (ED)  
 7. Title and Amount of
    Underlying Securities
    (Instr. 3 and 4) 		8. Price
    of
    Derivative
    Security
    (Instr.5) 		9. Number of
    Derivative
    Securities
    Beneficially
    Owned
    at End of
    Month
    (Instr.4) 		10.
Owner-
ship
Form of
Deriv-
ative
Security:
Direct
(D)
or
Indirect
(I) 		11. Nature of
      Indirect
      Beneficial
      Ownership
      (Instr.4)
Employee Stock Option (right to buy)
 $9.00


Varies (2) | 10/14/2006
 Common - 11,111
11,111
D
Employee Stock Option (right to buy)
 $9.00


Varies (3) | 02/23/2007
 Common - 1,111
1,111
D
Employee Stock Option (right to buy)
 $9.90


Varies (4) | 05/06/2009
 Common - 10,000
10,000
D
Employee Stock Option (right to buy)
 $15.00


Varies (5) | 08/31/2010
 Common - 50,000
50,000
D
Employee Stock Option (right to buy)
 $12.00


Varies (6) | 06/08/2011
 Common - 23,780
23,780
D











Explanation of Responses :


** Intentional misstatements or omissions of facts constitute Federal Criminal Violations.
        See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Note:   File three copies of this Form, one of which must be manually signed. If space is insufficient,
            See Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not
required to respond unless the form displays a currently valid OMB number. 		________________________________         __________________
** Signature of Reporting Person                         Date

Attorney-in-Fact for
Carolyn S. Melvin


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SEC 1474 (3-99)
Melvin, Carolyn S. - September 2001
Form 4 (continued)
FOOTNOTE Descriptions for Alliance Data Systems Corporation ADS

Form 4 - September 2001

Carolyn S. Melvin
17655 Waterview Parkway

Dallas, TX 75252-8012
Explanation of responses:

 (1)   Includes 9,600 unvested shares of common stock pursuant to a restricted stock grant.
(2)   The option is exercisable for 2,500 shares on 1/31/97, 4,305 shares on 1/31/99, and 4,306 shares on 1/31/00.
(3)   The option is exercisable for 417 shares on each of 1/31/99 and 1/31/00, and for 277 shares on 1/31/01.
(4)   The option is exercisable for 2,500 shares on each of 1/31/00, 1/31/01 and 1/31/02.
(5)   The option is exercisable for 16,500 shares on each of 8/31/01 and 8/31/02, and for 17,000 shares on 8/31/03.
(6)   The option is exercisable for 33% of the underlying shares on each of 8/31/01 and 8/31/02, and for 34% on 8/31/03.
Page 3