Advanta Gets FUSA Execs

Two senior credit card industry veterans will join Advanta in the next two weeks. Rosemary B. Cauchon has been appointed President, Advanta Small Business Services. Ms. Cauchon comes to Advanta with 16 years experience in the credit card business with Citibank and First USA. Most recently at First USA, she served as Executive Vice President for small business credit card operations and partnership/third party marketing programs, managing a $30 billion portfolio and 1,900 partnership relationships. Ms. Cauchon will be responsible for marketing, including alliances, new products, and new business development, and the analytic areas. Conrad D. Vasquez joins Advanta with 22 years of broad and diverse operational experience, including experience with American Express and Household. Most recently, as Executive Vice President of the Customer Support Division at First USA, Mr. Vasquez managed collections for a credit card portfolio of $70 billion. At Advanta, he will head the Card operating areas, including collections, customer service, and processing. “The addition of these outstanding executives to our already strong business positions us exceptionally well for the future,” said Chairman and Chief Executive Officer Dennis Alter.


MasterCard/Europay Milestone

MasterCard International and Europay International announced that they have reached a key milestone on the road to global smart card adoption. As of third quarter 2001, MasterCard and Europay’s member financial institutions have issued more than 100 million MasterCard-, Maestro-, Mondex-, and Clip-branded smart cards to their customers around the world. More than half of these cards carry value-added, non-payment applications, such as loyalty, digital identification, e-ticketing, e-coupons, or personal data storage.

The milestone reflects the combined total of all live MasterCard-, Maestro- Mondex- and Clip-branded cards with integrated circuit chips on them. Cards counted in this total run the gamut from EMV-compliant multiapplication cards carrying M/Chip and other value-added applications, to magnetic stripe debit cards carrying an electronic purse function on the chip.

This milestone reflects MasterCard’s focus on providing its members with a comprehensive level of technical support, in addition to marketing programs that provide members with the flexibility to differentiate their smart card programs in the marketplace. It also demonstrates Europay’s continued leadership in driving chip technology forward. “Global smart card adoption is now reaching critical mass,” said Art Kranzley, chief e-Business officer, MasterCard International. “This growth exemplifies the momentum that can be achieved when innovative technology and value-added services are introduced for the right reasons at the right time.”

Europe is the leading region in terms of current smart card issuance. In France today, all MasterCard(R)-branded cards are smart cards, and the United Kingdom is now converting all general purpose cards in that country to smart cards. In fact, Europe is now in the midst of a continent-wide migration to the global EMV standard, allowing financial institutions and their cardholders to benefit from globally interoperable cards and terminals.

In Europe, Europay International was the first payment system to develop and implement a comprehensive set of rules for smart cards and chip terminals. Europay also was the first payments association to introduce chip migration incentives (a liability shift policy which takes effect on January 1, 2005 governing counterfeit fraud, and a preferred interchange for acquirers investing in EMV-compliant chip terminals).

The Latin America/Caribbean region also continues to quickly embrace chip technology. As of third quarter 2001, some 330,000 MasterCard smart cards have been issued in Brazil. As that country proceeds with its nationwide migration, more than 850,000 MasterCard smart cards will be issued by year’s end 2001. Similar activity is now underway in Mexico and other countries in the region. A new, region-wide liability shift policy takes effect in Latin America on January 1, 2004. Currently, all new ATMs and POS terminals or devices introduced in the region must be chip capable.

In the Asia/Pacific region, more than one million MULTOS(R) multiapplication smart cards have been issued under MasterCard’s US$2.99 chip program. Kookmin Card Co. of Korea recently issued 300,000 MasterCard multiapplication smart cards incorporating Mondex(R), as part of the TradePass program in Korea. Taipei Bank in Taiwan is also issuing two new cards to government employees, one for corporate purchasing and one program for corporate T&E. In the Middle East/Africa region, members have committed to chip migration and projects are now underway. Effective immediately, all new ATMs and POS terminals deployed by members in the region must be chip-capable and fully compliant with MasterCard rules for EMV standards. On January 1, 2005, all new or renewed MasterCard cards issued must be fully compliant with MasterCard rules for EMV standards and a new, region-wide liability shift policy will take effect.

In the North America region, a number of U.S. based members are committed to issuing multiapplication smart cards in conjunction with MasterCard later this year and early 2002.

MasterCard is the only global payments association to actively support all major smart card environments, freeing our members to focus on business issues, rather than technology issues. Through its participation in various standards groups -including the MULTOS Consortium and GlobalPlatform – MasterCard is working to define global requirements and technology standards for multiapplication smart cards.

About MasterCard International

MasterCard International is a leader in global e-business. The association is focused on providing its member financial institutions with customized, meaningful global e-business solutions that connect them to customers in both the online and offline worlds. Through its investment in industry innovation, participation in standards development and business alliances, MasterCard is staying in the forefront of technology integration to enable anytime, anywhere payments across multiple channels and various devices. MasterCard’s global e-business solutions include Internet interactive services, security, smart cards, mobile commerce/wireless, e-wallets, business to business electronic commerce, and numerous emerging technologies.

MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCard(R), Cirrus(R) and Maestro(R).

More than 1.7 billion MasterCard, Cirrus and Maestro logos are present on credit, charge and debit cards in circulation today. An association comprised of more than 20,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCard’s award-winning Priceless(R) advertising campaign is now seen in 80 countries and in more than 36 languages, giving the MasterCard brand a truly global reach and scope. With more than 22 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. At June 30, 2001, gross dollar volume exceeded US$458 billion. MasterCard can be reached through its World Wide Web site at [][1].



AmEx 3Q/01

American Express Travel Related Services reported quarterly net income of $248 million, down 51% from the same quarter last year. Most of the reduced earnings are the result of restructuring charges, but $87 million worth is directly related to the events of September 11th. Even though AmEx is realizing higher fee income and interest income from credit cards, net revenues rose a mere two percent for the third quarter, due to a 3% decline in charge volume and a 28% fall in travel sales, mainly the result of terrorist attacks on the USA. On top of the 9/11 impact, AmEx is experiencing a 23% increase in delinquency and a 30% jump in net charge-offs. AmEx also noted that marketing and promotion expenses for card related products are 17% lower as TRS scaled back certain marketing efforts in light of the weaker business environment. AmEx spent $298 million in 3Q/01 for card and travel related marketing. For complete details on American Express current and past performance visit CardData ([][1]).

American Express U.S. Card Portfolio Snapshot
3Q/01 2Q/01 1Q/01 4Q/00 3Q/00 Ann
Volume $54.4b $58.8b $55.6b $59.0b $56.2b -3.2%
Loans $31.3b $31.2b $30.2b $28.7b $27.1b +15.5%
Cards 34.7m 34.6m 34.2m 33.3m 32.9m + 5.5%
Delinq* 3.2% 2.9% 2.9% 2.8% 2.6% +23.1%
Losses 5.6% 5.7% 5.1% 4.4% 4.3% +30.2%
Yield** 8.8% 8.6% 8.3% 7.7% 7.8% +12.8%
* 30+ days past due; ** net interest yield
Source: CardData(



Chameleon Enhancements

Tidel Technologies, Inc. will showcase new enhancements for its leading-edge Chameleon ATM at the NACS 2001 exposition, which opened yesterday in Las Vegas and will run through tomorrow. Among the enhancements available for preview are Chameleon’s new voice-guided package for the blind, a new flat panel display, and an improved check-scanning device.

The Chameleon, an internet-enabled PC-based ATM, will offer an audio port for the visually impaired that provides voice-guided instructions for all types of ATM transactions. The feature works with a standard headset, owned by many who are visually impaired, which may be plugged into the audio port to allow financial transactions to be conducted in complete privacy.

Michael Hudson, Executive Vice President, noted “Before voice-guided systems were invented, visually impaired customers typically needed assistance to conduct routine automated teller transactions. Our new audio-enabled Chameleon is designed to allow visually impaired customers to conduct every transaction available to sighted customers with total independence.”

The new Chamelon will also feature a 15″ flat panel touch-screen display option, designed to give advertising and media-intensive applications a boost with bright, high-resolution images, and a new SEAC check scanning device, representing the latest in check-scanning technology.

Hudson added, “We continue to further the development of the Chameleon and believe that we have created the best platform for delivering advanced functionality in the retail market. In 2002, we expect to deliver value-oriented solutions to the marketplace for such items as check cashing, money order issuance and lottery applications.”

The trade show, an annual event hosted by the National Association of Convenience Stores, is one of the largest trade shows in America and is important to Tidel since convenience stores represent one of the biggest markets for the company’s products.

Tidel Technologies, Inc. is a manufacturer of automated teller machines and cash security equipment designed for specialty retail marketers. To date, Tidel has sold more than 30,000 retail ATMs and 115,000 retail cash controllers in the U.S. and 36 other countries. More information about the company and its products may be found on the Internet at [][1].



Sub-Prime ABS

Following the stunning fall of Providian last week, the borrowing costs of sub-prime specialists such as Metris/Direct Merchants Bank are likely to rise even more. The asset-backed securities market has already sent signals that yield spreads will rise further. Earlier this month a triple-A rated tranche supported by sub-prime credit card receivables priced at LIBOR +35 bps compared to a similar sub-prime offering in August that was priced at LIBOR +23 bps. With last week’s revelations from Providian, yield spreads for sub-prime card bonds will likely increase at least 10 bps. Currently there are approximately $25 billion in sub-prime credit card asset-backed securities. Providian’s common stock is now trading at less than $5 per share compared to a January high of $64 per share.


3 Million Voyager Users

Corillian Corp., a leading global provider of eFinance Solutions, announced that it has reached an industry milestone of more than three million consumers using the Corillian Voyager platform to perform online banking transactions at their financial institutions.

Corillian is the first eFinance vendor to reach three million end users on its retail Internet banking platform.

“This milestone shows the dominance and performance of the Corillian Voyager platform,” said Alex Hart, president of Corillian. “Fifteen of the top 100 U.S.

banks and 11 of the top 100 credit unions have licensed Corillian Voyager as their eFinance platform. As these large financial institutions increase their online customer base, our investments in the scalability, security and performance of the Voyager platform ensure that our clients have the most robust and reliable eFinance platform in the industry today.” This milestone demonstrates the scalability and reliability of the Corillian Voyager platform. During the third quarter there were more than 570,000 end users added to the platform, corresponding to a 20 percent sequential end user growth over the second quarter.

Corillian Voyager is a high-performance platform that allows for the delivery of a wide range of financial services to customers via the Internet, including:

Internet banking, bill delivery and payment, customer relationship management, enhanced data aggregation, and small business transactions. Powered by Windows 2000 Server and Component Object Model (COM+), Voyager provides a direct link between a financial institution’s host system and its consumers, using Internet browsers, personal financial management software and internet-ready wireless devices. Voyager’s open architecture design allows an institution to quickly integrate emerging technologies, deploy the platform in-house or in a secure data center and provide a personalized portal to its customers.

About Corillian Corporation

Based in Oregon, and with international offices in Europe, Asia and Australia, Corillian Corporation is an award-winning provider of eFinance-enabling software for the financial services industry. Built on the Microsoft Windows 2000 platform, Corillian applications support Internet banking, bill delivery and payment, brokerage, customer relationship management, enhanced data aggregation, and small business transactions. Voyager can be deployed on-site at the financial firm or in the state-of-the-art Corillian Data Center. Corillian technology also enables Open Financial Exchange (OFX) access by finance management software packages such as Quicken(R), QuickBooks(R) and Microsoft(R) Money. For more information about Corillian Corporation, visit our Web site at [][1].




In the wake of the anthrax scare, Swedish card holders of American Express
cards were concerned after receiving plastic snowflakes in the mail last week.
AmEx sent out about 40,000 direct mail pieces to its Swedish customers as part
of a Christmas promotion. The mailing suggested “consumers spread the
snowflakes out”. The mailing prompted phone calls from angry customers. AmEx
said it has since issued letters of apology to all the recipients of the


Visible Gift Card

A revolutionary new gift card is hitting the US market this week which features an actual display of its monetary value directly on the front of the card. The new stored value gift card from Visible Results USA is built around the thermo-chromic technology developed for the company’s ‘GraphiCard’ loyalty card application. Once the card value has been depleted it may then be re-initialized through payment at the point of sale or returned to the retailer for recycling and re-issue to new customers. Visible Results USA is a subsidiary of the New Zealand-based Visible Results Group of Companies. The company established the USA unit following the February acquisition of GraphiCard Systems International of Overland Park, KS.



NCR Corporation (NYSE: NCR) has further
enhanced its global leadership in financial self-service by expanding its cash
security technology, improving the security and reducing the cost of
protecting cash in transit and at the automated teller machine.

Keith Taylor, senior vice president of NCR’s Financial Solutions division,
said, “We recognize the importance of improving safety and reducing costs for
customers operating a self-service network. The addition of these exceptional
ATM security solutions will further enhance what is already the best and most
comprehensive solutions portfolio in the industry.”

With this new offering, cash is protected during delivery to the ATM, both
in the vehicle and across the pavement by a product called Genesis, as well as
during replenishment and in operation at the ATM by a product called Sentinel.
Both products use indelible ink to spoil cash inside the cash unit during a
physical attack, reducing losses as a result of criminal activity and the cost
of cash delivery.

At a European self-service security conference held in London today, the
company announced it has completed negotiations with Spinnaker International
and has acquired the Genesis and Sentinel solutions. The two companies have
previously worked together to develop these intelligent security solutions.

Genesis and Sentinel will be marketed by a new company called Fluiditi, a
wholly-owned subsidiary of NCR. Fluiditi will be based in the United Kingdom
and will have global reach through NCR’s international presence.

Ken Munro, currently vice president, life cycle and change management of
NCR’s Financial Solutions division, has been named managing director of the
new company.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leader in providing Relationship
Technology(TM) solutions to customers worldwide. NCR’s Relationship
Technology solutions include the Teradata(R) database and analytical
applications such as customer relationship management (CRM) and demand chain
management, store automation systems and automated teller machines (ATMs).
The company’s business solutions are built on the foundation of its
long-established industry knowledge and consulting expertise, value-adding
software, global customer support services, a complete line of consumable and
media products, and leading edge hardware technology. NCR employs 33,300 in
more than 100 countries, and is a component stock of the Standard & Poor’s 500
Index. More information about NCR and its solutions may be found at


PayStar InfoStation Exec

PayStar Corporation, the nation’s leader in providing content based Internet Kiosks, Cashless ATM devices, Prepaid Telecom Services and Wireless Banking Services is pleased to announce the appointment of Carla Buckner to V.P. Sales and Marketing for PayStar’s InfoStation (kiosk) Division. Ms. Bucker will head up PayStar’s Chicago office along with the sales and marketing programs for the InfoStation Division.

‘PayStar’s Chicago office will be responsible for overseeing corporate and major accounts along with driving all Midwest and Eastern sales initiatives, stated Dan Normand, Sr. VP, PayStar InfoStation Division. We are very excited to have someone with Carla’s extensive background and success in the corporate arena join our team, especially in this time of tremendous company growth.’

‘Carla Buckner, former V.P. of Sales for a national kiosk provider, is a top-notch negotiator, having closed major sales contracts and implemented nationwide product rollouts with companies such as JC Penny, Wal-Mart, Hilton Hotels, Marcus Corporation and Bass Hotels, commented W.D. Yotty, Chairman and CEO PayStar Corporation. ‘PayStar will benefit from Carla’s remarkable experience and proven track record in building successful sales organizations along with channel management, CRM, vertical market integration, as well as business and product development within the hospitality, retail, entertainment and technology industries.’

PayStar’s InfoStations are best described as the next generation of e-commerce vending machines offering consumers a faster, easier and more convenient means of obtaining goods, services and information. PayStar’s InfoStations will feature Internet access, robust content, arcade quality games and high-speed Internet connectivity via 802.11b wireless LAN technology.

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 Consumer Services providing service and maintenance of Cashless Teller Machines (CTMs), payphones and Internet enabled kiosks. PayStar is the location services provider (LSP) to retail merchants and is considered a “carriers 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.



Mobile-Mind, a developer of
wireless and smart card systems and applications, in cooperation with Fujitsu,
announces the launch of HIPERSIM, the advanced smart card operating system for
Fujitsu’s new HIFERRON chip platform. HIPERSIM provides a flexible,
high-performance solution for secure, multi-application wireless and smart
programs. Fujitsu selected Mobile-Mind to design and develop the HIPERSIM
solution in partnership with Fujitsu’s Electronic Devices Group.

“The combined power of HIPERSIM and the HIFERRON chip platform moves smart
cards squarely into the mainstream of computing,” says Scott Guthery, the CTO
of Mobile-Mind. “A key goal of multi-application smart cards is to provide
seamless and integrated services to the cardholder. This is impossible if each
application has to finish up its tasks before another can start. HIPERSIM is
the first smart card operating system that lets multiple applications
securely and in real-time.”

Dr. Scott Guthery, who leads the HIPERSIM development team at Mobile-Mind, is
an internationally recognized expert in smart card operating systems and
application architectures and development. He is an active participant and
contributor to international telecommunications standards bodies and convenor
of ETSI’s Smart Card Project Architecture Working Group. Prior to founding
Mobile-Mind, Guthery led the project team at Schlumberger that developed the
world’s first Java smart card in 1996 and was a leading contributor to
Microsoft’s development of the Windows smart card operating system in 1998. He
holds multiple patents for his work in real-time data acquisition systems,
smart card operating system innovations, and SIM application management.
According to Mr. Kazunari Shirai, President of the Electronic Devices Group
(EDG) of Fujitsu Limited, “The HIPERSIM solution suite represents the ultimate
in smart card software functionality and flexibility. With HIPERSIM we hope to
make a significant contribution to the smart card industry.”
Mr. Nobuyoshi Ebihara, General Manager of Marketing for EDG adds, “HIPERSIM is
a major component of Fujitsu’s strategy to become a global provider of the
advanced and secure smart card products and services. We are pleased to work
with Mobile-Mind to achieve that goal.”

HIPERSIM, with its field-proven multi-threading operating system based on the
Mach kernel, delivers peak performance to card issuers and low-power,
computing to wireless carriers. Engineered from the ground up for concurrent
application execution, HIPERSIM is ready for next generation wireless devices
and fully compatible with today’s GSM SIM and 3G UICC standards. The modular
design of HIPERSIM components enables both smart card issuers such as
institutions and telecommunications companies to customize the operating
to meet the specific requirements of their industries.

About Mobile-Mind, Inc.

Mobile-Mind designs, engineers and develops secure wireless applications and
advanced smart card systems for customers in North America, Asia, and Europe.
Headquartered in Boston, Massachusetts, Mobile-Mind is privately held and
funded by the Aurora Funds of Durham, North Carolina. For more information on
Mobile-Mind services and products visit or e-mail


Elite 510

Toronto-based Givex Corporation and Ingenico have launched a standalone point-of-sale gift certificate and transaction processing device. The ‘Elite 510’, a counter-top EFT POS terminal, is being released with gift card, frequent user card and e-gift certificate functionality. Next year, enhancements will include points program capabilities along with credit card and debit card transaction processing. The Givex application tracks each gift card, frequent user card, e-gift certificate and point in real-time across all sales channels and allows merchants to view numerous up-to-the-second online transaction reports, receive real-time support and expand marketing opportunities. In May, the two companies partnered to provide merchants with the ‘eN-Touch 3000’, however IVI was acquired by Ingenico shortly thereafter.