Exhibit 99.3





March 12, 1998


Direct Merchants Credit Card Bank, N.A. and
Metris Receivables, Inc.
Attn: Senior Vice President, Chief Financial Officer
600 South Highway 169
Suite 1800
St. Louis Park, Minnesota  55426

Moody's Investors Services
Attn: Compliance Department
99 Church Street
New York, New York  10007

Standard & Poor's Ratings Group
Attn: Compliance Department
25 Broadway
New York, New York  10004-1064

Chase Manhattan Bank, as Agent
c/o Chase Securities, Inc.
Attn: David Christopher
10 South LaSalle Street
Suite 2300
Chicago, Illinois  60603-1097

Bank of New York (Delaware)
Attn: Cheryl Laser
101 Barclay Street
New York, New York  10286

Ladies and Gentlemen:

We have performed the procedures enumerated below, which were
agreed to by the addressees, to the servicing records of Direct
Merchants Credit Card Bank, N.A. (DMCCB or the Servicer), a
wholly owned subsidiary of Metris Companies, Inc. (Metris) for
the period from December 28, 1996 to December 31, 1997 (the
Period) solely to assist you in evaluating the Servicer's
compliance with the requirements of Section 3.6(a) and Section
3.6 (b) of the Pooling and Servicing Agreement dated as of May
26, 1995, as amended September 16, 1996, (the Agreement) among
Metris Receivables, Inc., as Transferor; Direct Merchants Credit
Card Bank, N.A., as Servicer; and the Bank of New York
(Delaware), as Trustee, on behalf of Certificateholders of the
Metris Master Trust (the Master Trust).  This agreed-upon
procedures engagement was performed in accordance with standards
established by the American Institute of Certified Public
Accountants.  The sufficiency of these procedures is solely the
responsibility of the specified users of the report.
Consequently, we make no representation regarding the sufficiency
of the procedures described below either for the purpose for
which this report has been requested or for any other purpose.
Capitalized terms used herein without definition will have
meanings ascribed to them in the Pooling and Servicing Agreement.

Unless otherwise indicated, the following conventions have been
adopted in presenting our procedures and findings:

   The term "compared" means compared to and found to be in
   agreement with, unless otherwise noted.  Such compared
   amounts and percentages are deemed to be in agreement if
   differences are attributable to rounding or if differences
   are less than $1,000.

   The term "recomputed" means calculated and found the amount
   so calculated to be in agreement with, unless otherwise
   noted.  Such recomputed amounts and percentages are deemed to
   be in agreement if differences are attributable to rounding
   or if differences are less than $1,000.

We have performed the following procedures:

Section 3.6 (a)

1.   For five haphazardly selected days (the Five Days) within
     the Period, we obtained the Daily Report and compared sales, cash
     advances, payments, interest income, charge-offs, miscellaneous
     charges and adjustments amounts set forth on the Daily Report
     with corresponding amounts set forth in the Servicer's accounts
     receivable reports and recomputed the mathematical accuracy of
     the amounts and percentages within the Daily Report.

2.   For the Five Days, we compared the cash transfers indicated
     on the Daily Reports to entries on the relevant Master Trust bank
     statements.

3.   For three haphazardly selected fiscal month ends (the Three
     Months) in the Period, we compared the aggregate customer
     balances in the "30-59 day delinquent" and "90-119 day
     delinquent" categories as reflected on the monthly Settlement
     Statements for the Three Months to the corresponding amounts set
     forth in the Servicer's accounts receivable aging reports for
     such month ends.

4.   For five haphazardly selected weekly periods (the Five
     Weeks), we compared beginning and end of week total receivables
     balances on the Servicer's accounts receivable reports with the
     corresponding balances on the corresponding Daily Reports and
     recomputed each Daily Report's beginning and ending Principal
     Receivables balances and Finance Charge Receivables balances,
     based on the information contained in such Daily Reports, for
     each of the days within the Five Weeks.

5.   For the Five Days, we recomputed the daily allocation of
     Principal and Finance Charge Collections to each series issued
     under the Agreement based upon information appearing on the Daily
     Report.

6.   For one monthly Settlement Statement in the period, we
     compared the amounts and percentages appearing therein to the
     information appearing in the corresponding Daily Reports or the
     reports which are the source of such amounts and percentages or
     recomputed such percentages to the extent they were derived from
     such information.

Section 3.6 (b)

7.  For the March, June, September, and December 1997 monthly
    Settlement Statements (the Settlement Statements), we compared
    amounts and percentages appearing therein to the information
    appearing in the corresponding Daily Reports or other reports
    which are the source of such amounts and percentages or
    recomputed such percentages to the extent they were derived
    from such information.


We noted no exceptions during the performance of the agreed upon
procedures as stated above.

                            * * * * *

Management of Metris Receivables, Inc. has represented to us that
the Daily and Monthly Reports provided to us are the same as
those provided to the Trustee.

We were not engaged to, and did not, perform an examination, the
objective of which would be the expression of an opinion on the
servicing records.  Accordingly, we do not express such an
opinion.  Had we performed additional procedures, other matters
might have come to our attention that would have been reported to
you.

This report is intended solely for the use of the addressees and
should not be used by those who have not agreed to the procedures
and taken responsibility for the sufficiency of the procedures
for their purposes.

/s/ KPMG Peat Marwick LLP