MCDONALD

The Melbourne-based EFTPOS Engineering unit of Keycorp Limited has signed
a three-year contract to provide support for POS systems for McDonald’s
restaurants across Australia. McDonald’s Australia has over 700 restaurants
across the country. The contract includes providing 24 X 7 help desk
support for the new “Pos4” integrated food supply systems; providing
technical support for its “In Store Process” back-office systems; and,
configuring the computers for each of installation. Keycorp acquired EE in
June 2001 and currently holds over 30% of the Australian EFTPOS market in
installation, maintenance and repair services.

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Payless Executives

Capital One reported yesterday that its two top executives received no salary or bonus last year, as the company’s stock plunged by more than 50% during 2002. Additionally, the company reported that its UK operations became profitable for the first time in 2002. Cap One’s CEO Richard Fairbank and COO Nigel Morris also did not cash in any stock options during 2002. Last year, Fairbank’s exercisable options declined in value from $262 million to $104 million. Morris’ options decreased in value from $150 million to $57 million. Capital One also reported yesterday that its U.S. loan portfolio ended 2002 with $47.3 billion in receivables, which include some installment loans. Cap One’s international business had $5.3 billion of managed credit card receivables, mostly UK cards, however, the issuer has operations and activities in Canada, South Africa and France. At the end of 2002, the U.K. Bank had 2.8 million accounts and $3.9 billion in credit card, revolving loan, and installment loan assets. The UK Bank has been operating independently in France since 2000. Capital One also ended 2002 with 18,757 employees.

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Online Bill Payment

MasterCard International released a study yesterday that shows consumers favor paying multiple bills through a single location, such as their bank’s Web site, as opposed to making individual payments directly at each biller’s online site. The study also found that users preferred the speed and enhanced control of the point-and-click process to pay multiple bills on a single site. One of the most significant findings among non-users was overall confusion about the definition of online bill payment. In many instances, non-users grouped other bill payment alternatives, such as checking account direct-debit and direct bill payment at biller Web sites into their definition of online bill payment. Research participants also cited questions about the security and privacy of transactions, registration and set-up procedures, as well as reliability and costs of online bill payment versus paper checks, as barriers to adoption. TowerGroup estimates that approximately 13% of U.S. households use online bill payment services today, while only 2% of U.S. households used online bill payment in 1998.

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Providian Rebound

Providian reported Tuesday that its charge-off rate has declined for the past three months and that its delinquency rate declined during February. The issuer’s managed charge-off rate declined to 17.00%, compared to 18.00% in January, and 18.79% in December. The managed delinquency (30+ days) rate was 10.77% for February, down from January’s 11.25% rate. The Company’s managed net credit loss rate was 17.34% for 4Q/02, compared to 16.71% in the previous quarter, and 12.70% one year ago. The average charge-off rate among the nation’s top ten issuers for the fourth quarter was 8.07%, according to CardData. The managed 30+ day delinquency rate for Providian at the end of the fourth quarter was 11.11%, compared to 11.23% at the end of the third quarter, and 8.81% one year ago. The average delinquency (30+ days) rate among the nation’s top ten issuers for the fourth quarter was 6.62%, according to CardData. Providian ended the 2002 with $20.0 billion in total managed credit card loans and 12.0 million accounts, according to updated information furnished to CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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Triton ATMs

Triton unveiled two new ATMs based on the “Windows Intel X Scale PC Platform.” The “RL5000 Series” and “FT5000 Series” will be available in July. The operating system supports Windows file formats for adding custom logos and advertisements. In addition, both ATMs feature Triton’s completely custom designed motherboard. The “RL5000 Lobby Series” features a large color LCD screen. The “FT5000 Series” is Triton’s first “Through the Wall ATM.” Triton also announced this morning it will provide its customers with a “Triple DES” upgrade path for all of its 83,000 existing ATMs. For Triton’s first ATM, the 9500, Triton will offer a new retrofit kit which will be available by fall 2003. The “Triple DES” upgrade kit for the “Mako” and “9600 Series” is already available.

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HyperSafe Deal

NJ-based PayRight Merchant Services has inked a deal for 10,000 payment card terminals from Hypercom. Under the one-year, multi-million dollar contract, PayRight will begin to immediately roll out terminals using the “HyperSafe” operating system security.PayRight Merchant Services, LLC, based in Haledon, NJ, is a registered ISO/MSP of JP Morgan Chase. In February, Hannaford Bros, a major Northeast supermarket retailer, agreed to deploy 2,000 “ICE 5500M” terminals with the “HyperSafe” operating system in more than 100 of its multi-lane stores. In January, Hypercom announced that footwear specialist Genesco is rolling out Hypercom’s “ICE” card payment technology and terminals to its more than 975 U.S. retail locations by mid-year. And, earlier this month, Bridgeview Payment Solutions, which provides services for more than 27,000 merchants nationwide, signed a contract with Hypercom’s Golden Eagle Leasing unit to offer payment terminal leases. Hypercom maintains an installed base of more than five million terminals in over 100 countries. (CF Library 1/14/03; 2/24/03; 3/5/03)

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Self-Service Set-Up

VeriSign, the leading provider of digital trust services, and Telespree Communications, the leading developer of intelligent acquisition and activation solutions for wireless networks, have teamed up to create a new wireless self-service acquisition system. Self-Service Set-Up enables wireless carriers to revolutionize the wireless acquisition process by automating account, device and plan set-up using only the newly purchased device.

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CO-OP Triple DES

To address MasterCard’s security mandate that all ATMs use updated encryption systems for sending transaction information, CO-OP Network and eFunds have worked with Pi Systems to develop a hardware replacement that meets the new fraud protection standard. The Triple Data Encryption Standard technology will replace the Single DES system currently used by ATMs to protect user PIN numbers from fraudulent activity.

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US Airways Processor

The U.S. Bankruptcy Court of the Eastern District of Virginia for Alexandria has given US Airways 45 days to finalize an agreement with a new credit card processor. The bankrupt airline says it has several banks interested in taking over the processing of its credit card transactions. The airline’s current processor, National Processing, has given it a March 31st deadline to emerge from reorganization or face termination. In May 2002, National Processing announced its decision to discontinue processing debit and credit card transactions for all its airline clients. The Company will honor its existing contractual obligations to the airlines it currently serves but does not intend to renew such contracts when their current terms expire. The contracts currently in effect have various expiration dates extending through November 2005. (CF Library 5/30/02; 2/27/03)

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