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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CELL PAYMENTS

Customers of the GSM wireless
network operator ENTEL PCS can now pay for subway tickets with a cell phone.
The solution was implemented on the basis of wIQ (wireless Information Query)
from ORGA Card Systems, Inc.

To purchase a ticket, the customer first chooses one of four fare types. Each
fare is identified by a three-digit number. To pay for the ticket, users just
key in this number and the number of the ticket machine on their cell phone.
The ticket is issued in seconds and is charged to the customer’s telephone
bill. “Other wIQ options include billing the purchase directly to an
e-Purse or
credit card,” said Frank Barbalace, Senior Business Development Manager, ORGA
USA.
ENTEL PCS, based in Santiago de Chile, developed this solution itself in a
very
short time on the basis of wIQ. Thanks to wIQ’s use of standard Internet
technologies such as HTML, Entel was quickly able to bring their solution to
the wireless market. Standard interfaces such as CGI or PHP can be used for
online access to a very wide range of background systems.

Customer acceptance depends to a great degree on the speed at which tickets
can
be purchased. wIQ uses the USSD channel (Unstructured Supplementary Services
Data), which is available in all GSM networks and permits interactive
information exchange with average response times of between two and four
seconds.

This means that customers spend no more time paying by cell phone than when
buying tickets in the normal way. “The goal is to beat `cash transactions’ or
the time required to use technology instead of cash, while adding a level of
personal security which wIQ offers. ” said Frank Barbalace.

Unlike WAP (Wireless Application Protocol) technology, users do not need a
specially equipped handset for USSD. “Most GSM hansdsets (USSD Phase II
compliance required) currently in the field could be immediate customers
and no
special SIM card is required,” said Frank Barbalace. As a result, services
such
as buying a subway ticket are available to all the network operator’s
customers
right away. Time to market is minimized, and every customer benefits
immediately from the new possibilities. “wIQ is a great solution to either
complement WAP or stand alone. It’s fast, 2-4 second responses when used in
the
local network and 5-6 seconds when roaming nationally or internationally.
Supports location based services, including advertising, info services and
m-Commerce. You can even have a conversation while surfing on wIQ. We are in
discussions with content providers who really like wIQ because they want a
fast, cheap and immediate mCommerce solution.”

ORGA Card Systems, Inc, part of the authentos group of companies, is one of
the
market leaders in the smart card industry. ORGA offers a full range of smart
cards, hardware, software, systems, system integration and solutions for the
telecommunications, banking, retail, healthcare and Internet sectors. ORGA is
headquartered in Paderborn, Germany, and operates its Smart Card Center in
Flintbek, in one of the world’s most modern production facilities for smart
cards.

ORGA is jointly held by Bundesdruckerei GmbH (89.96%), which in turn is fully
owned by APAX Fonds, and DETECON GmbH (10.04%). With a workforce currently
numbering over 1,600 employees worldwide, the ORGA Group posted record
sales of
EURO282 million in fiscal 2000. Subsidiaries, sales offices and joint ventures
give ORGA a strong presence in Great Britain, the U.S., France, Singapore,
Russia, South Africa, the United Arab Emirates, Denmark, China, Brazil, Hong
Kong, Italy, Portugal, Austria and Lithuania.

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People’s 3Q/01 Losses

Bridgeport, CT-based People’s Bank reported yesterday that its Credit Card Services division realized a net loss of approximately $11 million for the third quarter due to higher charge-offs and the impact of the recession. Charge-offs have soared by 60% over the past twelve months, rising from 4.77% for 3Q/00 to 7.58% for 3Q/01. Delinquencies rose from 3.12% to 4.19% over the same period. U.S. receivables have declined $541 million since last year dropping from $3.1 billion to $2.5 billion. People’s yield on managed U.S. credit card receivables decreased 40 basis points compared to 3Q00. People’s noted yesterday it realized a $17 million pre-tax gain on the sale of its interest in the NYCE ATM network. People’s has scheduled an analyst conference this morning. For complete details on People’s current and prior quarterly performance visit CardData ([www.carddata.com][1]).

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

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