TSYS & Providian

TSYS has signed a 10-year extension to its long-term credit card-processing agreement with Providian Financial Corporation, the fifth-largest bankcard issuer in the United States and one of the largest issuers of Visa “smart” cards. Providian, based in San Francisco, has been a customer of TSYS since 1986.

“In the history of our long relationship with Providian, they have become one of the largest and most successful bankcard issuers in the country,” says Philip W. Tomlinson, president of TSYS. “We are grateful for the opportunity to contribute to that success, and we expect it to continue as Providian expands into the future.”

“TSYS is an important strategic partner of Providian, and we’re pleased to extend our relationship,” said Jim Redmond, executive vice president of operations for Providian. TSYS currently processes about 18 million MasterCard and Visa consumer credit card accounts for Providian in the United States.

About Providian

Winner of the 2001 Rochester Institute of Technology/USA Today Quality Cup for excellence in customer service, San Francisco-based Providian Financial is a leading provider of lending and deposit products to customers throughout the United States, and offers credit cards and deposit products in the U.K. and in Argentina. Providian Financial has been named one of America’s Most Admired Companies in a survey by Fortune magazine, one of the nation’s top financial institutions by U.S. Banker magazine, and one of the most technologically innovative companies in the U.S. by InformationWeek magazine. Providian Financial has more than $36 billion in assets under management and more than 18 million customer accounts.

About TSYS

TSYS ([http://www.tsys.com][1]) brings integrity and innovation to the world of electronic payments. TSYS serves as the integral link between buyers and sellers in the rapidly evolving universe of electronic payments. With more than 200 million accounts on file, TSYS makes it possible for millions of consumers to use their credit, debit, stored value, commercial, smart chip and retail cards anytime, anywhere through any medium or portal. TSYS and its family of companies offer a full range of acquiring and issuing services from accepting and settling electronic payments for goods and services, to credit applications, bankruptcy and collections. Based in Columbus, Ga., TSYS processes for 23 countries, in 14 currencies, in four languages and maintains operations in Canada, Mexico, Japan, and the United Kingdom. TSYS is an 80.8-percent-owned subsidiary of Synovus Financial Corp. (NYSE: SNV) ([http://www.synovus.com][2]), No. 8 on FORTUNE magazine’s list of “The 100 Best Companies To Work For” in 2001. For more information, contact news@tsys.com .

[1]: http://www.tsys.com/
[2]: http://www.synovus.com/

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SMILE CONTENT

Open Market, Inc. announced this week that the UK’s first full-
service Internet Bank, smile, (smile.co.uk), has chosen Open Market and BEA
Systems to launch and support its company’s Web content development and
management. Utilizing Open Market’s Content Server Enterprise Edition
family of products including, Content Server, Content Centre and
Personalization Centre software, running on a BEA WebLogic Server,
Smile went live with its new website in May 2001.

Prior to using Open Market, smile’s Web management consisted of a manual
system requiring that all content first be developed by external copywriters,
then hand-crafted into HTML pages which resulted in a time-consuming
production process. Within that system, making a simple date change to a Web
page could take two weeks or more. Now, powered by Open Market’s suite of
software, smile is able to manage this entire process internally with a
turnaround to Web changes taking only 20 minutes.

The key to smile’s decision was deploying a solution based on open
standards like XML and taking advantage of all the benefits inherent it its
Java(TM) 2 Enterprise Edition (J2EE(TM)) application server platform. Also
critical was a simple to use software interface that even non-technical staff
at smile could take advantage of. Now, users are able to load content into
pre-developed templates and can deliver content in any format. This also
allows smile’s programmers more time to focus on the ‘look and feel’ and
performance of the site.

“To our customers our business is our website,” explained Bob Head, CEO,
smile. “Because of our corporate philosophy, we choose not to spend money on
fancy offices, like other banks but that means our Web address needs to be the
best in the banking industry. It wasn’t enough to market smile as a more
efficient, less bureaucratic company, we needed to incorporate those
principals into our business. With Open Market software running on our BEA
WebLogic Server we’re in a position to help ourselves — now our website is
smiling and so are our customers!”

“smile is an excellent example of a company taking its business and its
customers seriously,” explained Joe Alwan, senior vice president of worldwide
marketing at Open Market. “smile’s business centers around a sound content
management practice that combines delivery of updated, accurate information to
customers while utilizing the best of its internal resources. We are very
happy to offer application server platform choices to our customers by
partnering with BEA. Our relationship offers two powerful open standards
solutions to our customers–our e-business applications and the award-winning
BEA WebLogic Server.”

Benefits of an Open Market BEA Solution

Open Market’s Content Server Enterprise Edition and its family of
applications including — Content Centre, Personalization Centre, Catalog
Centre(TM), Integration Centre(TM) and Marketing Studio(TM) — are layered on
top of BEA WebLogic Server. Open Market has been compatible with BEA servers
since July 2000. By selling its application suite in collaboration with its
platform partners, Open Market provides customers with the flexibility,
scalability and interoperability required to rapidly deploy e-business
initiatives.

About Open Market

Open Market, Inc. makes content-driven e-business solutions that enable
enterprises to better manage interactions with their site visitors, customers,
employees, and channels. Leveraging the new Java(TM) 2 Platform Enterprise
Edition (J2EE(TM)) standard, the Company’s software products are built with
Java, JSP and XML and are layered on top of popular application servers like
the BEA WebLogic Server, the IBM WebSphere Application Server and the iPlanet
Application Server. Open Market’s roster of global customers includes
publishers and media companies like The McGraw-Hill Companies, The Washington
Post, and The New York Times Company; financial services companies like J.P.
Morgan Chase, GE Capital and The Hartford Financial Services Group; and
manufacturers like BASF and Milacron. The company, headquartered in
Burlington, Massachusetts, has customers in 43 countries. Open Market’s
international head office is in the U.K. with additional offices in Australia,
Canada, France, Germany, Italy, Japan, The Netherlands and Singapore. Open
Market can be reached by calling 1-800-OPEN-MKT (toll-free) or 1-781-359-3000
in the U.S. or +44-1753-838-000 in the U.K. or by visiting
http://www.openmarket.com.

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OPC Signs All States

Official Payments Corporation (www.officialpayments.com), the leading provider of electronic payment options to government entities, announced a new business agreement with Greenville County, South Carolina.

The award entails a new Internet and telephone payment system that will enable citizens to charge real estate, personal property, and vehicle taxes to their credit cards. The contract represents Official Payments’ first business award within the state of South Carolina. With this contract, the company now has agreements with government entities in all 50 states. Official Payments also provides credit card payment services to the Internal Revenue Service, 18 state governments, the District of Columbia, and over 1,000 counties and municipalities across the country.

Annually, the county collects $131 million in real estate taxes, $6.6 million in personal property taxes, and $68 million in vehicle taxes, resulting in an $87.6 million collection opportunity for the company.

“We welcome Greenville County as our first client in South Carolina, and we are confident that other counties in the state will follow their lead,” said Thomas R. Evans, Chairman & CEO of Official Payments. “This win is especially important to our company as it gives us a business presence in every state in the nation, and makes us the only e-government company in our sector with this distinction,” Evans added.

When the systems are launched later this year, taxpayers in Greenville County, SC will be able to make their tax payments with their credit cards by visiting [www.officialpayments.com][1] on the Internet or by calling 1-800-2PAY-TAXSM.

Official Payments charges taxpayers a convenience fee for processing these credit card transactions. The fee schedule can be found on the Internet at [www.officialpayments.com][2]. For example, a taxpayer who owed $800 and charged their taxes would find a total of $825 on their credit card statement: $800 for the tax bill and $25 for the convenience fee. American Express(R), MasterCard(R), Discover(R) and VISA(R) are the credit cards accepted by the program. Depending on their credit card program, taxpayers using credit cards with bonus rewards programs may be eligible to earn rewards points, cash-back or airline frequent flyer miles in return for paying their taxes. Official Payments will discuss the company’s third quarter 2001 financial results in a conference call on Wednesday, October 24, 2001 at 4:30 p.m. Eastern Daylight Time.

About Official Payments Corporation

Official Payments Corporation (Nasdaq: OPAY) is the leading provider of electronic payment options to government entities. The company’s principal business is enabling consumers to pay their government taxes, fees, fines, and utility bills by credit card, via Internet and telephone. The company is unequaled in market penetration and national footprint. Official Payments is the incumbent in contracts with the Internal Revenue Service, 18 state governments, the District of Columbia, and well over 800 county and municipal governments in 49 states across the United States. In 2000, Official Payments collected and processed over $925 million in federal, state, and local government payments.

Official Payments was founded in the San Francisco Bay area in 1996. Thomas R. Evans, the former President & CEO of the Internet company GeoCities, became Chairman & CEO of Official Payments in the summer of 1999. Mr. Evans brought Official Payments public in November of 1999, raising $80 million in its IPO on the NASDAQ national market. The company has experienced rapid and sustained growth over the past six reported quarters in revenue, new client acquisition, and addition of incremental services to existing clients. The company’s success can be attributed to the combination of an enormous market opportunity with a highly skilled and experienced management and staff, aggressive sales and marketing, and a core competency in developing and implementing leading-edge technical systems.

[1]: http://www.officialpayments.com/
[2]: http://www.officialpayments.com/

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Diebold COO

Diebold, Incorporated announced that Wesley B. Vance has been promoted to chief operating officer. Vance was previously president, Diebold North America. He will report directly to Walden W. O’Dell, chairman of the board and chief executive officer of Diebold.

“This appointment reflects our confidence that Wes’ proven leadership capabilities and broad experience in managing global operations will continue to benefit the company,” said O’Dell. “Additionally, Wes’ forward thinking and ability to turn a vision in to material success makes him a valuable asset moving forward.”

Prior to joining Diebold in October 2000, Vance spent 10 years at Arvin Industries, Inc. and ArvinMeritor, where he held several key executive positions. Vance served as senior vice president, ArvinMeritor and president of ArvinMeritor Exhaust Systems Worldwide just prior to joining Diebold. In this capacity he was responsible for operations located on five continents and in 25 countries. While based in Paris, he served as president and managing director of Arvin Exhaust Europe, which included Africa and Asia. While based in Toronto, Vance served as vice president and general manager of Arvin Ride Control, which included emerging markets throughout the world. Additionally, he has served as vice president business development of Arvin Ride Control and has held other managerial and financial positions. Prior to joining Arvin, Vance worked for Deloitte and Touche where he held various managerial positions.

Originally from Albuquerque, N.M., Vance earned a bachelor’s degree in Accounting from Brigham Young University, Provo, Utah. He went on to earn a master’s degree in business administration from Indiana University in Bloomington, Ind. Vance, his wife and their five children currently reside in Canton, Ohio.

Diebold Incorporated is a global leader in providing integrated self- service delivery systems and services. Diebold employs more than 12,000 associates with representation in more than 80 countries worldwide and headquarters in Canton, Ohio, USA. Diebold reported revenue of $1.7 billion in 2000 and is publicly traded on the New York Stock Exchange under the symbol ‘DBD.’ For more information, visit the company’s Web site at [http://www.diebold.com][1].

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

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Fraud Screen

VISA U.S.A. and CyberSource this morning announced the ‘CyberSource Advanced Fraud Screen Enhanced by VISA’ will be available in January. The new service is a real-time fraud-detection service that examines transactions generated from online stores and call centers. It estimates the level of risk associated with each transaction and drawing on access to a large database of global fraud trends and global payment-card usage patterns, including online and offline transaction data.

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Snowflakes

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 Friday it has issued letters of apology to all the recipients of the mailing.

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Fast-Food Terminals

VeriFone and National Processing Company confirmed this morning the installation of more than 25,000 VeriFone terminals to quick service restaurants nationwide. Most notably, Tricon’s KFC and Pizza Hut restaurants have selected the solution consisting of VeriFone ‘Omni 3200’ and NPC processing. KFC has deployed the solution to all 1,200 corporate stores and over 1,000 franchise locations, representing more than 5,000 point-of-sale installations.

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eGo Network

TransCore announced its new ‘eGo Payment Network’ this weekend. The wireless system combines low-cost tag technology with a nationwide payment network to enable customers to make cashless transactions automatically from their vehicles. TransCore notes that in the Dallas-Fort Worth area, motorists with ‘TollTag’ and ‘PassKey’ tags can establish an eGo account and use these tags within the eGo network, allowing quick-service providers to leverage the combined 400,000 local tag users.

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ATM Cash Security

NCR Corporation announced this weekend it has completed negotiations with Spinnaker International and has acquired the ‘Genesis’ and ‘Sentinel’ ATM cash solutions. With this new offering, cash is protected during delivery to the ATM, both in the vehicle and across the pavement by ‘Genesis’, as well as during replenishment and in operation at the ATM by ‘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. ‘Genesis’ and ‘Sentinel’ will be marketed by a new UK-based company called Fluiditi.

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Providian Implosion

In pre-market trading Providian’s stock was on a slight rebound after being pounded on Friday to a new 52-week low of $4.75. As a result of its weak 3Q earnings report, the top ten card issuer has replaced its chairman and is now searching for a new CEO. The company indicated on Friday it will explore all strategic alternatives including the sale of its portfolio. Fitch announced Friday it has lowered Providian’s long-term rating to `BB+’ from `BBB’ and short-term rating to `B’ from `F2′. Also, the long-term and short-term ratings for Providian National Bank have been lowered to `BB+’ and `B’, respectively. In yet another development, Milberg Weiss announced Friday that a class action has been commenced on behalf of purchasers of Providian publicly traded securities during the period between June 6, 2001 and October 11, 2001. (CF Library 10/12/01)

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HSBC CLSO

Fair, Isaac and Company, Inc. this week said that London-based HSBC Holdings
plc, one of the world’s largest banking and financial organizations, has
signed
the first global agreement to purchase Fair, Isaac’s Credit Line Strategy
Optimization service to manage its credit card portfolios across its
worldwide network.

This agreement marks the most extensive deployment of Fair, Isaac’s new CLSO
service to date. Since its introduction four months ago, CLSO has been adopted
by three of the top 20 card issuers in the United States, including Fleet
Credit Card Services, First USA and People’s Bank in Connecticut.
HSBC will begin immediate deployment of CLSO in the U.K. within its Personal
Banking division to increase profitability of its credit card portfolio.

Deployment will follow in the U.S. and then in other parts of the Group. A
firm
timeframe for these additional rollouts has not yet been established.
CLSO helps credit card issuers improve account profitability through optimal
credit line assignments. It automates this complex process for the first time
and optimizes the results down to the individual customer’s account. CLSO is
the first application of Fair, Isaac’s breakthrough Strategy Science — termed
the “Third Revolution” in decision analytics because it enables customers to
model the decision itself. Through CLSO, strategic options are clearly and
concisely defined and openly identified. As a result, portfolio managers can
fully understand how their choice of a particular strategy will play out
against the business objective they seek to optimize. By using CLSO, a lender
can experiment with any number of “what if” scenarios before settling on
precisely the right strategy to meet the stated business objective.
“HSBC is at the leading edge in the use of advanced technologies to link its
global network,” said Tom Grudnowski, Fair, Isaac’s CEO. “CLSO is a perfect
complement to HSBC, both in terms of their understanding of how technology can
drive smart, bottom-line strategies as well as how the service supports a
diverse, global portfolio. We are delighted to have HSBC as our first global
customer,” Grudnowski said today.

Brendan Cook, head of HSBC Group’s Card division, said, “CLSO is the ideal
solution to take HSBC’s strategic use of technology in managing and linking
its
global business units to the next level. CLSO’s advanced analytical techniques
will enable us to better anticipate our customers’ requirements and needs.”

About Fair Isaac

Fair, Isaac and Company is a global provider of customer analytics and
decision
technology. Widely recognized for its pioneering work in credit scoring, Fair,
Isaac revolutionized the way lending decisions are made. Today the company
helps clients in multiple industries increase the value of customer
relationships. Fair, Isaac has made the Forbes list of the top 200 U.S. small
companies nine times in the last ten years. Headquartered in San Rafael,
California, the company reported revenues of $298 million for fiscal 2000. For
more information, visit
http://www.fairisaac.com.

About HSBC Group

Headquartered in London, HSBC Holdings plc is one of the largest banking and
financial services organizations in the world. The HSBC Group’s international
network comprises some 6,500 offices in 78 countries and territories in
Europe,
the Asia-Pacific region, the Americas, the Middle East and Africa. With
listings on the London, Hong Kong, New York and Paris stock exchanges, shares
in HSBC Holdings plc are held by around 200,000 shareholders in some 100
countries and territories. The shares are traded on the New York Stock
Exchange
in the form of American Depositary Receipts.

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Certegy 3Q/01

Certegy, formerly Equifax Card Services, reported third quarter net income of $24 million on revenue of $218 million. Card Services generated revenue of $146.6 million in the third quarter, an increase of 11.4%, over the prior-year quarter. Volume decline attributed to the terrorist attacks reduced Card Services’ revenue by an estimated $0.7 million and operating income by $0.3 million. Check Services generated revenue of $71.4 million for 3Q/01, an increase of 13.2% over 3Q/00. Volume decline in Check Services, attributed to the terrorist attacks, reduced third quarter revenue by an estimated $1.6 million and operating profit by $0.8 million. For complete details on Certegy’s current quarterly performance visit CardData ([www.carddata.com][1]).

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

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