TASQ & NURIT

First Data’s TASQ Technology unit has renewed and extended its distribution agreement with Lipman Transaction Solutions to offer both wired and wireless “NURIT” products. Lipman is the leading supplier of wireless point-of-sale terminals in the United States. Lipman features both landline and wireless point-of-sale (POS) solutions under the NURIT brand name. This complete product line includes wired and wireless POS terminals, electronic cash register (ECR), ATM and kiosk solutions for the retail, restaurant, mobile commerce, direct marketing and fleet markets.

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Government Card Meeting

The Electronic Funds Transfer Association yesterday announced is has scheduled a May 6th summit meeting covering the future of electronic card technology for government applications. It will be hosted by EFTA’s EBT Industry Council, the nation’s oldest trade group for government electronic payment and service vendors. The program is aimed at government agency managers responsible for planning programs that will use debit or smart card technology to distribute government payments or services.

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SMS VBV

BOC Credit Card (International) Ltd., mobile communications specialist
CSL, and VISA International have teamed to offer the world’s first “Short
Messaging Service”-based m-commerce service using “Verified by Visa”
beginning March 1st. Based on an open m-commerce standard, the three
collaborating parties will partner with a variety of merchants to offer
such applications as phone bill payment, Broadway movie ticket purchases,
and OGC Golf City golf bay booking during the six-month pilot. More and
different types of applications will be explored and developed afterwards.
The first 3,000 successfully registered customers will be able to
participate in the pilot and will have a chance to win a new “Siemens S57”
color handset or other incentives. “Verified by Visa” has already been
adopted as a secure online payment standard by over 6,000 VISA card issuers
worldwide. The BOC Credit Card product family includes “Platinum Card,”
“Gold Card,” “Classic Card,” “Business/Corporate Card,” “Purchasing Card,”
“Co-branded Card” (over 17 co-branding corporations, organizations, and
communities), “U-point Credit Card”, “y not Credit Card,” “Intown Virtual
Credit Card” and “BOC Express Cash Card.”

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EBPP Report

St. Louis-based Murphy & Company has released an executive report on EBPP that covers standards, compliance, procedure, and technology issues; and examines security, privacy, marketing, and customer expectations. The contents of the Executive Report define EBPP and how it works; reviews EBPP standards, compliance, procedure, and technology issues; and examines security, privacy, marketing, and customer expectations. It is written for executives and managers who want to begin the process of moving from being “aware” of EBPP to making informed business decisions.

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FINGERPRINT & TI

Gothenburg-based Fingerprint Cards AB is joining the Texas Instruments
digital signal processing third party network. Fingerprint Cards’ “DAD
Algorithm” is one of the most compact (8Kb) fingerprint algorithms on the
biometric technology market. It supports two types of compact, low-cost
fingerprint sensor technology developed by Fingerprint for a range of
product markets including mobile electronic devices. The Fingerprint “DAD
Algorithm,” is available on both TI’s “TMS320C5000” and “TMS320C6000” DSPs.
Through TI’s third party network the two companies will be in a position to
offer coordinated support to benefit mutual customers in the implementation
of embedded fingerprint authentication.

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FCNB Liquidation

It appears that sub-prime specialist OR-based First Consumers National Bank will liquidate its credit card portfolio by the end of April as the bank has been unable to find any buyers. Under OCC-approved plans, FCNB must sell or liquidate its portfolio by April 30, 2003. Yesterday, Fitch Ratings downgraded all First Consumers Credit Card Master Note Trusts. On February 18th, FCNB notified the trustee, Bank of New York, that as per the direction of the OCC, it sought to be replaced with a successor servicer or resign as servicer under the “Pooling and Servicing Agreement and Transfer and Servicing Agreement.” BONY will assume servicing responsibilities over the interim or until a successor servicer is appointed. Fitch says it believes the OCC will require FCNB to take other actions in weeks to come in preparation for the bankcard portfolio liquidation, including ceasing originations and eventually closing down the ‘open-to-buy’ on outstanding accounts.

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KAZAKHSTAN PRIME-ONLINE

London-based Card Tech Limited has signed a licensing agreement with The
National Bank of Kazakhstan’s subsidiary processing center. NBK will use
Card Tech’s “PRIME” and “ONLINE” products. Under terms of the agreement,
NBK will use “PRIME-ONLINE” solution to process up to two million cards,
initially for ten banks. Card volumes are expected to grow to approximately
six million. NBK is Kazakhstan’s central bank. Kazakhstan is one of the
fastest growing card markets in the CIS.

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Card Stocks

Most credit card stocks were hammered yesterday as the overall market fell, with Capital One and MBNA down more than 3%. Since the first of this year, the stocks of card issuers have fallen more than 12%, while the stocks of card processors are off 14.5%, and card-related manufacturers’ stocks have declined more than 16%, according to CardData’s daily stock index. Meanwhile, Zacks issued sell recommendations this morning on Concord, EDS, and NCR. Zacks told investors it might be best to hold off on a position in Concord until analysts begin to bump up its earnings estimates. Zacks issued a strong sell on NCR saying that estimates for 2003 have been moving lower throughout 2002. Zacks says EDS has taken a cautious view of the marketplace for 2003, given the weakness in technology spending and the general economy. EDS sees full-year earnings of between $1.80 and $2, which was below what an average of analysts was expecting.

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Citi ConocoPhillips

Citibank’s Citi Commerce Solutions division has inked a multi-year agreement with ConocoPhillips to provide a full-service private label credit card program for the Conoco, Phillips 66 and Union 76 gasoline credit cards. The ConocoPhillips gas card program currently has 7.2 million cardholders, according to CardData ([www.carddata.com][1]). Citibank currently issues the “Conoco MasterCard” and “Phillips 66 MasterCard.” ConocoPhillips says its decision to switch its private label cards to an outside card issuer was based on business synergies created by its merger last August. Citi says it will take over the private label cards on July 1st. ConocoPhillips is the third largest integrated energy company in the USA and has 17,000 service stations.

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

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ICBA & SlimCD

ICBA Bancard has signed an agreement to use Coral Springs, FL-based SlimCD’s turnkey Internet based merchant solution which eliminates the time and cost of setting up credit card terminals. Technology developed by SlimCD uses the Internet as a secure transport for transactions, thereby providing a true web based service. Since 1985, ICBA Bancard has provided more than 2,000 community banks with equitable access to payment system products and services.

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NCR & ACI

ACI Worldwide and NCR have signed a multi-year exclusive referral partnership whereby ACI will recommend NCR’s open architecture “APTRA Edge” software to users of its “BASE24” online transaction processing system as well as work closely to extend “APTRA Edge” and “BASE24” to support the recently ratified IFX standard for ATM transaction processing. Under the new agreement, the two companies will work closely together to bring an end-to-end IFX solution to market.

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Hack Impact

Pittsburgh-based PNC Bank said this week it has deactivated nearly 16,000 “VISA Check Cards” in the wake of hack attack in early February that captured a total of eight million credit card accounts from the database of a third-party payment card processor. Last week, RI-based Citizens Financial Group canceled nearly 9,000 cards due to the account data capture. The recent theft of between five and eight million credit card accounts was due to a breach at Omaha-based Data Processors International, a/k/a DPI Merchant Services. DPI specializes in the establishment of credit card merchant accounts for Internet, multi-level, home based, and other direct marketing merchants. The hacked accounts include 3.4 million VISA cards and 2.2 million MasterCards. An undetermined number of American Express and Discover cards were involved. The card associations indicated there is no evidence of widespread fraud due to the breach. The FBI and the Secret Service are continuing their investigation. (CF Library 3/15/02; 2/19/03; 2/21/03)

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