AmEx 4Q/01

American Express Travel Related Services reported fourth quarter net income of $170 million, a 64% decline from 4Q/00. Weak business charge volume and higher provisions for losses were the major factors for the decline. However these factors were partly offset by the decline in marketing/promotion expenses and a lower payroll. Included in the 4Q/01 results are $219 million pre-tax ($140 million after-tax) of restructuring charges. Excluding the restructuring charge, TRS 4Q/01 net income would have been $310 million, down 34% from last year. Fourth quarter charge volume was down 5.5% compared to 4Q/00. Card loans have also slowed to an 11.5% annual growth rate, compared to 15.5% growth rate for 3Q/01. Charge-offs have soared 34% over the past twelve months while delinquency has increase nearly 18%. Thanks to lower funding costs, the net interest yield has dropped almost 25% and interest expense was down 35%. For complete details on American Express current and past performance visit CardData ([][1]).

American Express U.S. Card Portfolio Snapshot
4Q/01 3Q/01 2Q/01 1Q/01 4Q/00 Ann Chng
Volume $55.8b 54.4b $58.8b $55.6b $59.0b – 5.5%
Loans $32.0b 31.3b $31.2b $30.2b $28.7b +11.5%
Cards 34.6m 34.7m 34.6m 34.2m 33.3m + 3.8%
Delinq* 3.3% 3.2% 2.9% 2.9% 2.8% +17.9%
Losses 5.9% 5.6% 5.7% 5.1% 4.4% +34.1%
Yield** 9.6% 8.8% 8.6% 8.3% 7.7% +24.7%
* 30+ days past due; ** net interest yield
Source: CardData(




As previously announced on January
18, 2002, Ingenico Corp., a wholly owned subsidiary of Ingenico S.A., has
entered into a Development Services Agreement and Supply Agreement with First
Data Corp., a global leader in electronic commerce and payment

Ingenico, a worldwide leader in EFT POS terminal shipments and secure
transaction technology, provided additional information with respect to such

Under the Development Services Agreement, Ingenico has been engaged to
develop a feature-rich EFT POS terminal for First Data. It is expected that
the development of the terminal will be completed in 2003. Ingenico Corp. is
entitled to a project fee under this agreement.

Upon successful completion of the development project, Ingenico Corp. has
agreed to supply the terminals to First Data for a minimum five-year term.
Under the Supply Agreement First Data has committed to purchase a minimum
number of terminals.

About First Data Corp.


First Data Corp. (NYSE: FDC), with global headquarters in Denver, powers
the global economy. As the leader in electronic commerce and payment services,
First Data serves approximately 2.6 million merchant locations, 1,400 card
issuers and millions of consumers, making it easier, faster and more secure
for people and businesses to buy goods and services using virtually any form
of payment. With 28,000 employees worldwide, the company provides credit,
debit, smart card and stored-value card issuing and merchant transaction
processing services; Internet commerce solutions; Western Union(R) money
transfers and money orders; and check processing and verification services
throughout the United States, United Kingdom, Australia, Canada, Japan,
Mexico, Spain, the Netherlands, the Middle East and Germany. Its money
transfer agent network includes approximately 117,000 locations in more than
185 countries and territories. For more information, please visit the
company’s Web site at

About Ingenico


Ingenico S.A. is a leading provider of smart card secured transaction
products and systems with subsidiaries and partnerships all over the world and
customers in over 70 countries and territories. Its subsidiary Ingenico Corp.
provides hardware, software and services to the ever-expanding transaction
needs of the North American marketplace, which demands quality and requires
flexible and robust payment solutions. Our solutions include the Elite(TM)
terminal family, which is built upon the Unicapt(TM) architecture for optimum
application portability and secure multi-application acceptance, and was the
first to be EMVco approved. See for more information.



Novadigm, Inc., a leading provider of adaptive management solutions for
software and content in enterprise and Internet environments, today announced
that Italy’s largest bank holding company, IntesaBci, has licensed Novadigm’s
Radia products for 50,000 users.

“This substantial extension of IntesaBci’s previous use of Novadigm’s
e-wrap technology solutions underscores Novadigm’s belief that its
long-term franchise is best built upon a satisfied customer base,” said
Gerald Labie, Novadigm president and chief operating officer. “Novadigm is
focused on customer success and we are completely committed to helping our
customers derive significant business value from our adaptive management

Banca Commerciale Italiana (BCI), which merged on May 1, 2001 with
Banca Intesa, to form IntesaBci had been a Novadigm customer since 1995.

“Banca Commerciale Italiana had achieved impressive results from
Novadigm’s automated software management solutions, managing all branches
which sometimes have low bandwidth characteristics,” said Vincenzo Campanini,
Systems Operations & Network Manager for IntesaBci. “After the merger decision
in 2000, the challenge for IntesaBci’s expanded information technology group
was to select the best and most comprehensive software management solution for
all banks converging to a standard Windows environment. Our competitive
evaluation and benchmarks, along with BCI’s success in achieving business
benefits with Novadigm’s solution, resulted in our selection of Novadigm’s
Radia product family for automated software management of our entire
50,000 devices environment.”

Radia’s Web-based administration and choice of fully automatic or
self-service software management are proven to reduce administrative costs
while increasing end-user satisfaction. Radia customers consistently report
lower total cost of ownership and higher levels of service to users, compared
to manual processes or competing management products.

About IntesaBci

IntesaBci, the largest Italian banking group, has been created in 2001
through the merger between Banca Italiana Commerciale, Cariplo e Ambroveneto.
Three institutes, among the most prestigious and famous in Italy, which have
put together their own distinctive competences, the professionalism and
commercial networks to meet any customer requirement with products and
services of high quality level. The IntesaBci group also comprises various
savings banks and medium size local banks well established in the respective
territories, as Cariparma, Friuladria, Banca di Trento e Bolzano, in addition
of many services companies. For further information, please visit

About Novadigm

Novadigm is a leading provider of software and content management
solutions for enterprise and Internet computing environments that enable
organizations to reduce software management costs, speed time-to-market,
expand marketing channels and open new sources of revenue. Novadigm’s suite of
integrated products, based on the company’s e-wrap(TM) technology, work
seamlessly together as the only end-to-end solution that can efficiently,
reliably and scalably deploy and manage the full range of today’s software and
content, personalized for a wide range of computing devices, across virtually
any network. Novadigm customers — Global 1000 business enterprises, software
vendors and service providers around the world — report software management
savings of 80 percent or more, time-to-market improvements of 70 percent or
more, and reliability typically greater than 99 percent. For more information
on Novadigm, please visit or
call 800-626-6682.


FOM Licenses ACI EPS

ACI Worldwide, a leading international provider of enterprise e-payment solutions, announces the first licensing of its new ACI Enterprise Payment System e-payment processing engine. First of Omaha Merchant Processing, a wholly owned subsidiary of First National Bank of Omaha and one of the nation’s leading credit card acquirers, has licensed the ACI Enterprise Payment System to provide advanced payment processing options to its customers, expand its merchant processing operations in selected market segments and take advantage of new technologies.

The Enterprise Payment System is ACI’s flagship electronic payments application for the IBM(a) mainframe. First of Omaha(R) will operate its system on an IBM Sysplex zSeries platform. The ACI Enterprise Payment System is an integrated e-payment processing engine that provides application software to acquire and authenticate, route, switch and authorize transactions, regardless of the channel from which they originate. First of Omaha can use the Enterprise Payment System to process transactions from any endpoint, replacing existing direct-connect solutions; drive POS devices; and support Internet shopping infrastructures, Web ATMs and home banking systems. The software can also be used to upgrade legacy ATM and POS systems, adding support for new features such as smart card programs and electronic check processing.

“Our customers depend on us to handle their processing needs reliably and to continue to add relevant functionality that addresses their business opportunities,” said Nick Baxter, president of First of Omaha Merchant Processing. “ACI’s Enterprise Payment System will allow us to provide an extended range of services to our customers, including services not currently offered in the merchant processing industry. We are excited about the flexibility that the system provides us along with the opportunity to capitalize on the performance of the system’s Parallel Sysplex technology. This ultimately equates to expanded processing options and improved value for our clients.”

“First National Bank of Omaha is a long-time ACI customer, and we welcome this opportunity to work with its merchant processing arm as part of our Enterprise Payment System roll-out,” said Mark Vipond, president of ACI Worldwide.

The ACI Enterprise Payment System is part of a broad suite of application software products developed by ACI and marketed through a marketing alliance with IBM. These products, which are extended to operate on IBM eServer zSeries, pSeries and xSeries hardware platforms, use IBM e-infrastructure software such as WebSphere and the DB2 Universal Database to provide a common framework for managing various phases of a payment transaction lifecycle. ACI’s commerce framework includes software to enable transaction initiation through Web and wireless channels, process transactions in real-time, and automate the back office functions associated with settlement, dispute processing, fraud detection and account service. Among application software providers, ACI is unique in its ability to act as the single-source provider of software that spans the length of the commerce value chain.

About First of Omaha Merchant Processing

First of Omaha Merchant Processing is a premier global payment processor specializing in providing service to both the traditional and Internet direct marketing industry, as well as the traditional face-to-face card acceptance market. First of Omaha provides financial management and payment processing solutions for independent sales organizations, large and small retailers, restaurants, lodging merchants, petroleum marketers, associations/franchise groups and banks in both the business to consumer and business to business marketplaces. Known for their superior customer service, First of Omaha specializes in providing clients the latest in card processing technologies. Through development of a diversified product line, First of Omaha has become a leader in the merchant processing industry, assisting clients in the reduction of chargebacks and fraud. First of Omaha is a wholly-owned subsidiary of First National Bank of Omaha and is one of the few remaining in-house bank processors. First National Bank of Omaha, founded in 1863, is the 32nd oldest nationally chartered bank in existence. First of Omaha’s Internet address is

About ACI Worldwide

Every second of every day, consumers are initiating electronic payment transactions–getting cash at ATMs, using debit and credit cards to make purchases in stores and on the Internet, banking by phone and PC, paying bills online. Twenty billion times a year, ACI software is used to process these transactions, powering the world’s online payment systems. ACI was founded in 1975 and pioneered the development of applications and networking software for online transaction processing. Today more than 530 customers in 71 countries use ACI supplied software. Visit ACI Worldwide on the Internet at

(a) IBM, the IBM e-business logo, S/390, Parallel Sysplex, WebSphere, zSeries, pSeries, iSeries, xSeries, CICS Transaction Server and DB2 are all trademarks or registered trademarks of IBM Corporation.



Retail Decisions, a leading card-based transactions services business providing fraud prevention to the finance, telecommunications, retail and e-commerce sectors, announces the first ever national credit card fraud detection system for South Africa.

Retail Decisions also announces that ABSA Bank, Nedcor Bank and Standard Bank of South Africa have signed on to use its PRISM system. Deployed at a central location by Retail Decisions, the PRISM software will enable card issuers and acquirers to utilize a single infrastructure and achieve economies of scale, given that fraud is not a competitive issue but rather one on which all financial organizations need to cooperate.

PRISM uses a self-learning neural network fraud detection model using transaction data that will be provided by ABSA, Nedcor, Standard Bank, Diners Club and American Express, to monitor card transactions. The system compares each transaction with historical account patterns and confirmed fraud activity. When the transaction is deemed to be suspicious by the neural network, or if the transaction matches one of the client bank’s pre-defined fraud detection criteria, it is routed to a fraud analyst at the client bank for review.

The new service complements Retail Decisions’ existing service, Card Clear, which is used by the leading banks and retailers in South Africa. Card transactions are screened against the Industry Negative Card File (“INCF”), South Africa’s most comprehensive file of lost, stolen and delinquent cards. Retail Decisions will collate and update the INCF for the banks and retailers using information gleaned from the PRISM system. The INCF currently contains more than 2 million records from South African card issuers and over 5 million records from other international card issuers.

Carl Clump, Chief Executive of Retail Decisions, said today:

“We have consistently been looking to cross-market our whole range of services into new territories. The adoption of our PRISM service by key players in the South African banking industry is absolutely in line with this strategy.

“We are therefore very pleased to collaborate with ABSA, Nedcor Bank and Standard Bank to develop this country-wide solution. This new service uses state-of-the-art fraud detection software, powered by transaction information from three of the leading card issuers to assist them in minimizing payment card losses. We hope to be able to provide this service to additional banks over the coming months.”

“On December 7, 2001, we stated that the group had been performing in line with expectations and that the outlook for the financial year ended December 31, 2001 remained positive. This position has not changed and we intend to announce our preliminary results for the year just ended in March 2002.”


ReD PRISM, a division of Retail Decisions, Inc., is a leading provider of intelligent decision-support solutions for the financial services and e-commerce industries. ReD PRISM’s client/server products incorporate innovative pattern-recognition technologies ideally suited for data-intensive, real-time decision applications. The company’s products provide predictive fraud detection and case management for e-commerce fraud, credit, debit and retail (private-label) card fraud, as well as merchant fraud and money laundering.

About ABSA

Source: Absa Annual Report 2001

On January 26, 1991, the largest merger in South African banking history brought into being the Amalgamated Banks of South Africa Limited, the largest banking group in Africa, with R50 billion assets. The Group was renamed Absa Group Limited in 1997, and assets have grown to R197 billion.

About Nedcor

Nedcor is a leading South African financial services group. It is the country’s second largest banking group in terms of market capitalisation, with a value of over US$5billion. Listed on the Johannesburg Stock Exchange, Nedcor has assets of over US$21billion. The group’s activities encompass a wide range of services -from commercial banking, merchant banking and trusts, to related financial services.

About Standard Bank of South Africa

Rooted in Africa and with strategic representation in key sub-Saharan markets, the Standard Bank Group is a regional banking force with a global sweep. Its holding company, Standard Bank Investment Corporation Limited (Stanbic), is based in Johannesburg, South Africa. Stanbic is an internationally significant bank with assets of R309 billion and 30,000 staff spread over five continents. It provides world-class banking products to clients ranging from corporates, parastatal enterprises and governments to individuals needing simple savings facilities.

Standard Bank operates through four business units: Retail Banking for personal and small business customers within South Africa; Standard Corporate and Merchant Bank for business banking; Stanbic Africa; and International Operations.



Stefan Vogt, Chief Executive Officer of Winners Internet Network (OTC:WINR), today announced that a new credit card processing agreement was signed with UBS Bank, Zurich. He indicated that the new agreement will provide the basis for restarting marketing efforts for the company’s Internet credit card clearing services. Mr. Vogt indicated that the marketing efforts will begin in February.

About Winners Internet Network

Winners Internet Network ( ) is a financial transaction processor and integrator, with processing operations based in Europe. Winners services both vendors and customers in the Internet-based e-commerce space with state-of-the-art secure financial transaction software and technology.


Phone Card Purchases

AllCharge, a leading online payment company, recently announced its strategic alliance with DuoCash, the payment processing and clearing network for online purchases via prepaid calling cards. The partnership will enable consumers to buy digital content and pay for it with phone cards that are readily available in local retail stores.

AllCharge’s e-payment technology does not restrict content merchants and consumers to a single payment channel. The system supports smart cards, prepaid cards, credit cards, ISP and bills — and now prepaid phone cards. Internet users can now purchase any form of digital content, such as music, games, videos, or information, and charge it to their phone card.

“DuoCash is a pioneer in online payment processing and clearing. And we are excited to partner with the company to add phone cards to the list of AllCharge currencies,” says Jakob Schwerdt, President and CEO of AllCharge Ltd. “A stored value card that carries a limited amount of cash is ideal for pay-per-view digital downloads, which usually carry prices under $5. It is also a great payment option for people who do not have credit cards, including most teenagers, or for people who do not want to use their credit card online for security and privacy reasons.”

“With its comprehensive support of various payment methods, AllCharge is ideally suited to monetize the promising digital content marketplace,” says Victor Nappe, President and CEO of DuoCash. “Together we can now empower premium content merchants to sell their digital goods without having to set up an expensive credit card infrastructure.”

About AllCharge

AllCharge provides a sophisticated e-payment technology, which allows merchants to price and sell any type of digital content, and consumers to purchase any amount of premium content, using their preferred payment. AllCharge supports all payment methods, pricing models, and digital content purchases. The company is headquartered in New York City, and maintains extensive R&D facilities in Tel Aviv, Israel. For information, visit .

About DuoCash Inc.

DuoCash is the world’s first payment processing and clearing network to enable Internet purchases through the use of prepaid phone cards. Through its partnerships with leading telecommunications companies, prepaid calling card manufacturers, and premium Internet companies, DuoCash extends the previously inaccessible $5.2 billion stored on prepaid phone cards to the electronic payments marketplace. For information, visit .


Digital Insight Acquisition

Digital Insight announced the completed acquisition of Virtual Financial Services, Inc., a privately owned eFinance company based in Indianapolis. The acquisition is expected to be accretive to pro forma earnings in 2002.

As consideration for the transaction, Digital Insight paid a combination of Digital Insight common stock, $3.75 million in cash and a promissory note for $3.75 million based on a $51 million total enterprise value. VIFI will bring 150 client financial institutions and 425,000 active Internet banking end-users to Digital Insight.

“This acquisition gives us a strong start to 2002,” said John Dorman, chairman and CEO for Digital Insight. “It adds to our scale and market presence, and reinforces our commitment to serving financial institutions.”

Digital Insight announced its intent to acquire VIFI January 3, 2002.

Guidance impact of the acquisition will be provided during Digital Insight’s fourth quarter / year-end earnings conference call scheduled for Tuesday, Jan. 29, 2002, at approximately 5:00 pm EST.

About Digital Insight

Digital Insight(TM) Corporation (Nasdaq: DGIN) () is the preferred eFinance enabler for visionary financial institutions. Through its comprehensive portfolio of outsourced, Internet-based financial products and services built upon the company’s unique architecture, Digital Insight moves banks and credit unions Beyond Internet Banking(TM) to become the trusted transaction hub for their retail and commercial customers. Exclusively endorsed by the American Bankers Association(R) (ABA), and currently serving nearly 1,400 financial institution clients nationwide, Digital Insight provides retail and commercial Internet banking, electronic bill payment and presentment, eCommerce portal technology, wireless channel delivery, advanced targeted marketing, website development and maintenance, as well as online and call center lending services. Each Digital Insight product and service reinforces the brands of its client financial institutions. Digital Insight. Beyond Internet Banking.(TM)


Sunoco Buys ID Terminals

INTELLI-CHECK, INC., a developer of advanced document verification systems, announced that it has received an order for 75 age verification units from Sunoco, Inc. for the oil company’s retail outlets.

Frank Mandelbaum, Chairman and Chief Executive Officer of Intelli-Check, said the age-verification units marketed by its IDentiScan division will be deployed at Sunoco’s retail outlets in Ohio. Ohio is one of a number of states that have passed affirmative defense legislation encouraging retailers to use scanners to verify the age of would-be purchasers of age-restricted products such as alcohol and tobacco. The units will initially be distributed to Sunoco’s company owned stores and then to franchised Sunoco retail outlets in the state. Sunoco has previously purchased units for their New York retail outlets.

“Sunoco has selected our product as the oil company’s standard for age verification units which are being deployed to help protect its retail outlets from inadvertently selling age-restricted products to under-age purchasers,” Mr. Mandelbaum stated. “With more than 4,100 outlets in 19 states and the District of Columbia, Sunoco represents a large potential customer for our units.”

Intelli-Check, Inc. ( is a developer and marketer of an advanced state-of-the art document verification system for authenticating the validity of driver licenses and ID cards used as proof of identity. Intelli-Check’s multi-purpose ID-CHECK(R) units are fully capable of increasing security and as a tool that can be used to deter terrorism at military installations, high profile buildings, airports and other sites and are also an effective tool against “identity theft,” which often is supported by fake IDs and is the fastest growing crime in the U.S. ID-CHECK(R) units enable a user to prevent economic loss from check-cashing, credit card and various other frauds utilizing fake IDs and to determine whether purchasers of age-restricted products such as alcohol and tobacco meet minimum age requirements for their sale. ID-CHECK(R), with its patented technology, analyzes and displays information encoded in magnetic stripes and barcodes found on driver licenses, military identification and other forms of state and government-issued identification from more than 50 jurisdictions.


PayStar Tax Deal

PayStar Corporation, the nation’s leader in providing content-based Internet Kiosks, Prepaid and Wireless Banking Services, Cashless ATM devices and Prepaid Telecom Services is pleased to announce it has signed a Marketing Agreement with EZTaxMachine to market online tax preparation and refund products through PayStar’s extensive Global Virtual Network of Internet Access Terminals.

Online tax preparation and refunds have become the number one way for consumers to file taxes. It is estimated that over 40 million Americans will file their taxes online and over 95% will request electronic refunds. PayStar will capitalize on this very large market opportunity by providing free access to EZTaxMachine’s tax preparation Web site, in exchange for commission payments for each tax filing completed on PayStar’s Internet Access Terminals.

“I am pleased to have the opportunity to work with PayStar,” commented Michael Valentine, EZTaxMachine Founder and CEO. “My 20 years of experience in tax preparation and refund products combined with PayStar’s next-generation Internet Access Devices will prove to be a successful relationship.”

“Paystar gains an excellent revenue opportunity with the addition of EZTaxMachine Content,” stated W.D. Yotty, Chairman and CEO of PayStar.

About EZ Tax Machine

EZTaxMachine LP is a limited partnership based out of Reno, Nev., specializing in online tax filing service with over 20 years of experience in the tax filing industry. EZTaxMachine has enormous experience in helping clients minimize their tax liabilities and maximize their refunds from the IRS. They are an IRS approved e-file provider that has harnessed the power of the Internet to make tax filing easy.

About PayStar

PayStar Corporation, a premier global distributor of telephony and financial services, provides its customers with an array of enabling devices. PayStar is comprised of three fully integrated divisions: Commercial Telephony Switch Services, Consumer Internet and Telephony Products including prepaid cards, and Financial Services providing service and maintenance of Cashless Teller Machines (CTMs) and Internet enabled kiosks. PayStar is the location services provider (LSP) to retail merchants and is considered a “carrier’s carrier” for wholesale telecom services worldwide. Success is driven by internal sales as well as mergers and acquisitions. PayStar’s global strategy centers on expanding its network of thousands of locations that utilize state-of-the-art enabling devices.



Dallas-based CashWorks launched its ‘PayPort’check cashing solution this week. Initial pilot locations will be two Town & Country convenience stores in San Angelo, Texas which use Tidel ATMs. ‘PayPort’is the first check cashing solution to employ a clerk-assisted POS terminal as a transaction authorization device linked to a conventional ATM for the disbursement of funds. The CashWorks management team is headed by several executives involved with the now defunct InnoVentry. Ken Rees, president of CashWorks, previously served as COO and EVP of business development for InnoVentry and CashWorks Chairman Michael Stinson was a co-founder of Mr. Payroll Corporation,an InnoVentry precursor. Innoventry was jointly owned by Wells Fargo, Capital One and Diebold.