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<SEC-DOCUMENT>0000000000-06-000475.txt : 20060906
<SEC-HEADER>0000000000-06-000475.hdr.sgml : 20060906
<ACCEPTANCE-DATETIME>20060105090746
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000000000-06-000475
CONFORMED SUBMISSION TYPE:	UPLOAD
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20060105

FILED FOR:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ALLIANCE DATA SYSTEMS CORP
		CENTRAL INDEX KEY:			0001101215
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				311429215
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		UPLOAD

	BUSINESS ADDRESS:	
		STREET 1:		17655 WATERVIEW PARKWAY
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75252
		BUSINESS PHONE:		9723485100
PUBLIC REFERENCE ACCESSION NUMBER:		0000950134-05-004246
</SEC-HEADER>
<DOCUMENT>
<TYPE>LETTER
<SEQUENCE>1
<FILENAME>filename1.txt
<TEXT>


                                                      January 5,
2006


Mail Stop 4561

J. Michael Parks
17655 Waterview Parkway
Dallas, TX  75252

      Re:	Alliance Data Systems Corporation
		Form 10-K for the year ended December 31, 2004
		File No. 001-15749

Dear Mr. Parks:

      We have reviewed your response letter dated December 12,
2005
and have the following additional comment.

Form 10-K

Item 7 - Management`s Discussion and Analysis of Financial
Condition
and Results of Operations

Discussion of Critical Accounting Policies

Securitization of credit card receivables, pages 29 - 30

1. Tell us and disclose in future filings how you account for the
implicit forward contracts at inception and subsequently.


*    *    *    *

      As appropriate, please respond to these comments within 10
business days or tell us when you will provide us with a response.
Detailed cover letters greatly facilitate our review.  Please file
your cover letter on EDGAR.  Please understand that we may have
additional comments after reviewing your responses to our
comments.


      You may contact Yolanda Crittendon, Staff Accountant, at
(202)
551-3472 or the undersigned at (202) 551-3498 if you have
questions.


							Sincerely,


            Linda VanDoorn
      Senior Assistant Chief Accountant

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??

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J. Michael Parks
Alliance Data Systems Corporation
January 5, 2006
Page 1


</TEXT>
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