IMS to Sell Cardinal Centinel

CardinalCommerce Corporation announced that Innovative Merchant Solutions has agreed to partner with CardinalCommerce and provide the Cardinal Centinel merchant authentication software to its customers. Cardinal Centinel is a software authentication platform that supports credit card industry initiatives to reduce the incidence of online fraudulent transactions and guarantee payments to online merchants. Cardinal Centinel makes it easy for merchants to increase sales by participating in these programs and integrating them into their electronic shopping sites.

Joe Kaplan, president and CEO of Innovative, noted, “Online authentication is critical to driving the growth of Internet credit and debit transactions. Cardinal’s merchant software platform will help our clients continue to expand their usage of Internet transactions.”

“We are pleased that IMS, with over 85,000 merchants across a wide range of industries, has chosen to partner with us. Cardinal Centinel continues to demonstrate its position as the leading authentication solution in the merchant processing industry,” said Kendall G. Myles, senior vice president – Merchant Services at CardinalCommerce. “Our goal is to support the efforts of our customers to increase sales and to reduce the cost of fraudulent transactions, easily and affordably.”

Visa, MasterCard and the EFT Networks are each developing their own initiatives to mandate online authentication. These initiatives are intended to reduce online fraud and increase consumer confidence in e-commerce. CardinalCommerce’s products support each of these initiatives from a single software platform, allowing customers to comply with each of the initiatives’ mandates in one simple and cost effective solution.

About CardinalCommerce Corporation

CardinalCommerce Corporation is a leading provider of a technology-neutral authentication platform for securing electronic and wireless commerce, thus ensuring that individuals, businesses and government agencies can process electronic transactions and access confidential information safely, securely and privately. The first application of Cardinal’s proprietary technology, the Cardinal Payment Authentication Platform, provides consumers, merchants, credit/debit card issuers, and processors the ability to conduct fully authenticated Internet-based e-commerce, while protecting the transactions from fraud. For more information, visit .

About Innovative Merchant Solutions

Innovative Merchant Solutions (IMS) is one of the leading bankcard processors in the industry. Its reputation has been built on quality customer service and high tech business solutions that are provided with a signature personalized touch. Innovative Merchant Solutions’ award winning staff currently supports over 85,000 merchants who utilize virtually all types of processing solutions and come from a wide variety of industries. IMS is dedicated to creating an atmosphere devoted to a customer service standard not found in the industry, we have established a well-trained team of individuals ready to customize a service approach that’s just right. For more information, visit .

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SECURE-CODE

MasterCard International this week unveiled a new global e-commerce
security solution to tackle Internet transactions. MasterCard’s
“SecureCode” uses MasterCard’s “UCAF” to provide an enhanced payment
guarantee to online merchants by presenting, collecting and passing
cardholder authentication information. Using hidden fields and a merchant
plug-in application that is integrated with merchant Web pages, along with
authentication information generated by issuing financial institutions, the
new service provides explicit evidence of the cardholder’s involvement in a
transaction. Online merchants that support MasterCard “SecureCode” will
benefit from a MasterCard rules change that shifts liability away from the
merchant for chargebacks due to cardholder non-authorization when
SecureCode has been utilized. Chargebacks of this nature currently
represent as much as 84% of all electronic commerce chargebacks. Merchants
may also benefit from an increase in legitimate transactions for existing
and new markets, including cross-border transactions. MasterCard is working
with VeriSign, WorldPay and others, to bring MasterCard “SecureCode” to
online merchants around the world. VeriSign has begun enabling its 75,000
merchants, which process approximately 25% of all online transactions in
the U.S., with support for “SecureCode.” WorldPay has also begun
automatically enabling its more than 17,000 multi-currency merchants in 115
countries. “SecureCode” also provides issuers with a new way of supporting
Maestro PIN-based debit transactions over the Internet, and opens the door
to more cross-border transactions with merchants in countries where debit
is more established than credit.

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Radiant & Comstar

Radiant Telecom has integrated its industry-leading Radiant Prepaid POS application with Comstar Interactive Corp.’s groundbreaking new CHARGE ANYwhere” wireless credit card processing solution, allowing merchants to sell a full suite of prepaid products using the latest cutting-edge wireless technology.

Delivery drivers, flea market attendants and taxi cab operators can now provide their customers with prepaid long distance, wireless, internet, dial tone and bankcard products without inventory risk or costs. All Radiant Prepaid Card products have no value until they are swiped through the CHARGE ANYwhere device and assigned a flexible value over the air. Radiant will offer the integrated solution to the marketplace through its extensive sales channel network.

“We are extremely excited about this relationship,” said Radiant s VP of Strategy, Apurve Mehra. “The ability to conveniently and cost effectively recharge Prepaid products from a wireless device will help further the transition to prepaid dominance in the American telecommunications marketplace. New technology is significantly reducing distribution costs associated with prepaid products. We have seen tremendous interest from credit card ISOs, taxicab and delivery businesses looking to capitalize on the prepaid explosion. Our clients are delighted with the increasing monthly residuals that seem to far surpass those of other merchant acquisition programs.”

“The CHARGE ANYwhere solution integrated with the Radiant Prepaid POS application will significantly reduce the costs of distributing prepaid products while simultaneously providing added convenience to consumers,” said J.D. Gardner, CEO of Comstar Interactive. “We look forward to working with Radiant to introduce this new technology in the marketplace.”

CHARGE ANYwhere is an easy-to-use, scalable wireless point-of-sale (POS) service that is feature-laden yet affordable. It allows businesses to make transactions in the field and also to manage them on-line, in real-time. CHARGE ANYwhere combines a wearable device a magnetic credit card reader incorporated with the popular BlackBerry”-class RIM 850/950 Wireless Handheld” with an innovative Web-based transaction database and reporting system and other wireless features such as check authorization, messaging and e-mail access in one low-cost package. It gives businesses a robust and economical comprehensive wireless solution to securely execute, authorize and manage payments by credit cards in real-time.

About Radiant Telecom

Radiant Telecom is one of the most vertically integrated firms in the prepaid telecommunications industry. “Necessity, Efficiency and Accessibility” are the basic principles that Radiant Holdings has based its suite of next generation telecommunications solutions on. Radiant provides wholesale long distance, prepaid platform, and stored value products and services to carriers and end consumers. Radiant provides prepaid products electronically to numerous POS and ATM devices and therefore provides Processors, ISO s and agents the opportunity to maximize their revenue for each location. Radiant s products offer both exceptional price and convenience. There are over 300,000 retailers selling Radiant s products within the U.S. every day. For more information on Radiant’s products and services, please go to [www.radiantholdings.com][1] or [www.radianttelecom.com][2].

About Comstar Interactive Corp.

Comstar Interactive Corp. is a New York City-based innovator of Web-enabled wireless and wireline solutions both for businesses and individuals whose primary investor is Tesla Capital of San Francisco. It delivers to customers secure, end-to-end solutions that combine cutting-edge software, hardware, middleware and gateway services with the superior nationwide coverage and reliability of the leading wireless data networks in the U.S. Comstar s comprehensive wireless product suite includes credit card processing, e-mail access and messaging solutions that are backed by a roster of trusted industry-leading partners. Comstar solutions are scalable, affordable feature-rich, easy-to-deploy and use and produce a quick and demonstrable return on investment. For more information on Comstar s products and services, please go to [www.comstarinteractive.com][3].

[1]: http://www.radiantholdings.com
[2]: http://www.radianttelecom.com
[3]: http://www.comstarinteractive.com

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ECHO Interchange Module

Electronic Clearing House, Inc. announced the release of a freeware payment module for the Interchange open-source e-commerce shopping cart. The new feature allows users of Interchange to process real-time payments using credit cards and electronic checks through ECHO’s online payment gateway. “Increasingly merchants are using open-source web infrastructure services to manage their online businesses,” said Rusty Russell, ECHO’s Internet Marketing Director. “ECHO has been developing e-commerce payment solutions for the Linux open-source community since 2001 and our services are designed to enable merchants to operate as cost-efficiently as possible. Our latest release of real-time credit card and check processing software presents a low-cost, yet comprehensive, online payment processing alternative for merchants using the Interchange application.”

The new Interchange module integrates seamlessly with ECHO’s platform of payment processing services. In addition to the credit card and electronic check payment services supported by ECHO, the new software includes real-time address verification, security code capture, check verification and electronic check processing through the Automated Clearing House (ACH). Russell continued, “Similar applications can cost from $199 to $699 and tie the merchant to a third-party platform with monthly gateway access fees. By offering free software modules and a low $99 set-up fee for online processing, the cost advantage and simplicity of processing with ECHO is clear.”

Interchange is an open-source alternative to commercial commerce servers, which uses publicly available computer language that can be readily downloaded and either used as is or customized by web developers. To explore ECHO’s open-source solutions for e-commerce websites, interested parties should visit www.openecho.com and to deploy the ECHO freeware payment module for Interchange users, interested parties should visit [www.icdevgroup.org][1] for a free download from the Interchange development area.

About ECHO:

Electronic Clearing House Inc. provides a complete solution to the payment processing needs of merchants, banks and collection agencies. ECHO’s services include debit and credit card processing, check guarantee, check verification, check conversion, check re-presentment, check collection, and inventory tracking.

[1]: http://www.icdevgroup.org

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LaserCard Order

Drexler Technology Corporation received a $7.4 million U.S. government order for its LaserCard multi-biometric ID cards, through Information Spectrum, Inc. ([www.informationspectrum.com][1]), a government prime contractor headquartered in Annandale, Virginia.

The new $7.4 million order is part of a five-year, U.S. government procurement subcontract authorizing up to $81 million for optical memory cards used for U.S. Immigration and Naturalization Service (INS) “Green Card” Permanent Resident Cards and U.S. Department of State (DOS) “Laser Visa” Border Crossing Cards (BCCs). Under the U.S. government subcontract, awarded to the Company in June 2000 for up to 24 million LaserCard(R) optical memory cards, approximately 11,320,000 cards have been ordered thus far under seven purchase orders, including the latest order.

The $7.4 million LaserCard order calls for deliveries beginning next month at a rate slightly above $1 million per month for seven months.

U.S. Department of State Laser Visa cards are used by more than five million frequent visitors from Mexico for crossing the border, allowing travel up to 25 miles into the states of Arizona, California, New Mexico, and Texas for 72-hour visits for shopping and other consumer activities. According to a May 17, 2002 news release by the INS, with the enactment of the Enhanced Border Security and Visa Entry Reform Act, the Laser Visa Border Crossing Cards are also referred to as the “new biometric BCC, Form DST-150” and as the “new biometric, machine-readable cards.” The INS news release is headlined, “More Than Five Million New Biometric BCCs Have Been Issued.”

Headquartered in Mountain View, Drexler Technology Corporation ([www.lasercard.com][2]) develops and manufactures optical data storage products and systems, including LaserCard(R) optical memory cards and chip-ready Smart/Optical(TM) cards (a combination of optical memory card and smart card). Drexler’s wholly owned subsidiary, LaserCard Systems Corporation, makes optical card read/write drives, develops optical card system software, and markets card-related data systems and peripherals. The Company is a supplier of optical memory cards for the U.S. Immigration and Naturalization Service, U.S. Department of State, U.S. Department of Defense, Government of Canada, Government of Italy, and a state government of India. The LaserCard optical memory card is capable of recording and storing up to 2,800 kilobytes (2.8 megabytes) of digital data.

[1]: http://www.informationspectrum.com
[2]: http://www.lasercard.com

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RS2 BANKWORKS

Moscow Industrial Bank has signed a contract to implement the “BankWORKS”
card management and electronic transaction processing system. While RS2 has
provided service and software support to financial organizations in Russia
and other east European countries since 1995, this agreement along with the
opening a regional office in Moscow recognizes the expansion of new
products and services related to plastic. RS2 says the contract resulted
from broad based negotiations and mutually managed workshops. The
“BankWORKS’ solution is a business driven end-to-end solution for payment
systems, supporting all aspects of online authorization and message
switching, merchant acquiring, card issuing, domestic and international
clearing, including full multi-currency facilities for cross border activities.

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Rapid Rewards Extended

Bank One/First USA has renewed its co-branding contract with Southwest Airlines. The “Rapid Rewards VISA” was launched in 1996. The program is unique since it offers flight credits instead of air miles. Cardholders earn a free round-trip flight for sixteen credits. Two credits are earned for each round-trip fight. VISA cardholders may also earn one credit for each $1,200 in purchase volume. Southwest is currently offering double credits for those purchasing their travel online at Southwest’s Web site by April 4. New VISA cardholders also receive four bonus credits upon with their first purchase. Available as a “Classic VISA” or “Platinum VISA”, the card carries an annual fee of $39 for “Classic” and $59 for “Platinum.” Inside Flyer magazine recently recognized Southwest’s 15-year-old “Rapid Rewards” program as “Program of the Year.” (CF Library 9/26/96)

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Trilegiant CEO

Trilegiant Corporation, f/k/a Cendant Membership Services and Cendant Incentives, has promoted Nathaniel Lipman to President/CEO. He joined the individual membership division of Cendant in June 1999 as senior vice president, Business Development and Strategic Planning. From 1996 until June 1999 he served as senior executive vice president, Corporate Development and Strategic Planning, for Planet Hollywood International, Inc. Earlier, Mr. Lipman was senior vice president and general counsel of House of Blues Entertainment, Inc. Mr. Lipman was also senior corporate counsel for The Walt Disney Company and started his career as an associate at Skadden, Arps, Slate, Meagher & Flom. Mr. Lipman graduated from UCLA School of Law in 1989 and earned his BA from UC Berkeley in 1986.

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JCB EMV CARDS

JCB International has begun issuing EMV smart cards in Taiwan which
feature a contact chip with the “J/Smart” credit payment application and a
contactless “Mifare” chip to offer an access control function. Taipei Bank,
which is one of 30 JCB card issuers in Taiwan, has begun issuing the smart
cards to about 3,000 employees of First International Computers. The
National Credit Card Center in Taiwan is providing support for the smart
cards issuing program. The “FIC Employee Smart Cards” provide five
functions: credit payment, office building access control, office car park
access control, payment at the company cafeteria and employee
identification. In the past five years in Taiwan, the number of JCB
cardmembers has grown ten-fold to 1.2 million and the number of merchants
has doubled to 140,000. Five NCCC member banks began issuing JCB cards in
1994, and 25 other banks have followed.

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Rate Inaction

By a vote of 10-2, the Federal Open Market Committee decided Tuesday to keep its target for the federal funds rate unchanged at 1.75%. The Committee says aggregate demand is growing at a moderate pace. Over time, the current accommodative stance of monetary policy, coupled with still robust underlying growth in productivity, should be sufficient to foster an improving business climate. However, considerable uncertainty persists about the extent and timing of the expected pickup in production and employment owing in part to the emergence of heightened geopolitical risks. Consequently, the Committee believes that, for the foreseeable future, against the background of its long-run goals of price stability and sustainable economic growth and of the information currently available, the risks are weighted mainly toward conditions that may generate economic weakness. Govenor Edward Gramlich and Govenor Robert McTeer preferred a reduction in the target for the federal funds rate.

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