UATP Board

The Washington, DC-based Universal Air Travel Plan board of directors this week elected Marc Sullivan, managing director of corporate receivables, American Airlines, to its board. ince 1990 he has been employed by American Airlines. Sullivan was financial controller for American’s Europe Division prior to accepting his promotion to managing director of Corporate Receivables in January 2003.

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Citicorp/Citibank CEO

The Boards of Directors of both Citicorp and Citibank named Robert Willumstad CEO of both Citigroup subsidiaries. These are changes in titles that do not reflect changes in management responsibility. Mr. Rhodes remains Senior Vice Chairman of Citigroup and Mr. Willumstad remains President of both Citicorp and Citibank, NA, as well as President of Citigroup and Chairman and CEO of Citigroup’s Global Consumer Group.

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Cyber-Terminal

NC-based UniComp has introduced “Cyber-Terminal”, a virtual terminal certified with over 20 credit card processors. The Cyber-Terminal provides businesses a cost effective method to process both checks and credit cards utilizing the most technologically advanced server based payment processing terminal on the market. It also provides the ability to process and settle single or recurring payments from a customer’s credit/debit card or checking account.

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Teen Poll

A study, released last month by Atlanta-based Synergistics Research Corporation, has found that teens, ages 12 to 17, have an average monthly income of a mean of $127 and a median of $50. The telephone survey was conducted with 521 teens ages 12 to 17 and 304 parents of teens. Teens in the survey were asked to rate their level of agreement with a number of financially related attitude statements.

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BIOSCRYPT BIOMETRICS

Toronto-based Bioscrypt announced that Kaiser-Permanente has
installed “NKL Cash Handling” systems equipped with Bioscrypt fingerprint
access readers throughout its facilities in California. The cash handling
products from Indiana-based FKI Security Group were first to market with a
biometrics entry solution for cash handling in September 2002. FKI
Security Group selected Bioscrypt’s self-contained fingerprint verification
module, the “MV1200,” for all its cash handling systems. The “MV1200” is
designed for OEMs and embedded systems developers that want to add the
power of fingerprint biometrics to their systems. About the size of a
business card, the “MV1200” includes a small circuit board, a sensor and
software. The Kaiser Permanente southern and northern California
operations serve more than 6.3 million members and employ close to 100,000
people including 8,000 physicians. The region is served by 11 major medical
centers.

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Elan ATM/Debit Contracts

MN-based Elan Financial Services has signed eight new clients that will utilize ATM and debit card services offered through Elan including VA-based Miners Exchange Bank, SC-based SC Telco Federal Credit Union, MI-based First Independence National Bank, IL-based The Bank of Edwardsville, Cincinnati-based Foundation Bank, OH-based The Farmers Savings Bank, KY-based Victory Community Bank, and, CA-based American River Holdings. Elan Financial Services, as part of U.S. Bancorp (NYSE:USB), supports nearly 7,000 ATMs, 14 million ATM/POS cards, and 8 million credit cardholders with a complete range of products and services including credit card issuing, ATM, debit card, and merchant processing.

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SMS VbV

Bank of China 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, according to tomorrow’s edition of The RAM Report ([www.ramreport.com][1]). 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, movie ticket purchases, and golf booking during the six-month pilot. “Verified by Visa” has already been adopted as a secure online payment standard by over 6,000 VISA card issuers worldwide.

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

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Outsourcing 2003

Two-thirds of U.S. retail and commercial banks with assets of at least $3 billion outsource one or more business functions, according to an Accenture survey of bank executives released this week. Of the banks that outsource, 75% reported outsourcing credit card processing. Eighty-five percent of the banks that outsource reported that they are either “satisfied” or “very satisfied” with their outsourcing partners, with the average satisfaction rating of all banks surveyed being 4.4 on a five-point scale, where “5” is “very satisfied.” Two-thirds of executives who reported that their banks outsource said they expect outsourcing activity at their companies to remain at current levels over the next 12 months, while 20% said they expect to increase the level of outsourcing during that time. Of the 33% of banks surveyed that reported not outsourcing any internal or external functions, half said they don’t outsource because they have sufficient staff to manage all functions internally, and 40% said they don’t outsource because they don’t believe it will be cost-effective. Thirty percent of the banks that reported not outsourcing also said they fear a loss of control over key business functions.

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CITIBANK PAYWARE

Citibank Card Acceptance has deployed Trintech’s “PayWare Resolve” to
manage charge-backs from all its merchant accounts in Europe. Trintech’s
acquirer charge-back system automates the exception management process from
end-to-end. “PayWare Resolve” combines a powerful decision-support
environment with compliant dispute regulations to enable optimum management
of the entire charge-back process using an easily understood graphical user
interface. The essential difference between “PayWare Resolve” and other
exception management systems is its built-in knowledge of national and
international
charge-back regulations. The charge-back regulations for VISA and
MasterCard/Europay have been encoded into the application so that the
system can recommend the appropriate action and charge-back reason codes
for each case, replacing the need to navigate a series of intricate paper
trails and complex and changing regulations.

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ABNH Board Member

American Bank Note Holographics has named Mark Bonney, formerly with Axsys Technologies, to its Board of Directors. From 1993 through 1999, Mr. Bonney was a senior executive of Zygo Corporation (NASDAQ: ZIGO), serving as both Chief Financial Officer and VP Operations. Zygo manufactures measurement systems and leading edge optical products. Mr. Bonney earned an MBA in Finance from the University of Hartford in 1979.

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Proximity Payments

Texas Instruments RFid Systems has developed a highly flexible and secure “ISO/IEC 14443 Type B” technology platform for proximity payment transactions. The “14443” standard, endorsed by American Express, MasterCard and VISA for contactless payments, allows for increased security due to a faster rate of data exchange. TI is currently sampling a low-cost standards-based “Proximity Coupling Device” reader module to key customers and is developing “Proximity Integrated Circuit Card” chips, which will be fully compliant with “14443”. The chip features include a flexible and configurable memory architecture and file system that support multiple applications, and dynamic encryption capability using NIST-approved “Triple DES” and “SHA-1” crypto algorithms. Samples of the new chips will be available in early by Summer.

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