PayPal Lawsuit and NoBidding, Inc. announced today that they have filed a lawsuit against PayPal, Inc. The suit alleges that after breaching a contract with NoBidding, PayPal sent libelous emails to their customers claiming the NoBidding websites were fraudulent.

The complaint was filed June 1 in the Eastern District Court of Pennsylvania by attorney George Kounoupis. Case #01-CV-2702 alleges the following:

(Count 1) Breach of Contract
(Count 2) Breach of Implied Contract
(Count 3) Breach of Implied Duty of Good Faith and Fair Dealing
(Count 4) Promissory Estoppel
(Count 5) Fraud and Misrepresentation
(Count 6) Negligent Misrepresentation
(Count 7) Defamation
(Count 8) Commercial and Trade Disparagement

PayPal is the world’s largest web-based payment network that allows individuals to send and receive money online and claims to handle billions of dollars in monetary transactions per year. They are reported to process one-fourth of all transactions occurring on eBay.

NoBidding, Inc. opened on December 6, 2000. AuXpal was an online auction that seamlessly integrated PayPal’s payment system into its architecture. Upon the successful close of an auction, funds were automatically transferred from the winning bidder to the seller via their online PayPal accounts. This process eliminated time consuming communications typically experienced by online auction users when negotiating payment methods.

Ed Orlando, president of NoBidding, Inc., claims that PayPal notified him five days before AuXpal’s opening that they could no longer support the project. On opening day, PayPal completely blocked AuXpal’s access to PayPal accounts. “We spent six months developing AuXpal technology and were in constant contact with PayPal representatives. They knew exactly how our system worked and explicitly approved it each step of the way,” Orlando said. “Pulling out at the last minute had devastating consequences, especially for the eight million PayPal members that would have benefited from this unique service.”

The AuXpal website continues to operate as () and is the second largest online auction next to rival, eBay. “Bidville quickly became a major contender in the online auction space,” Orlando adds. “It is hard to imagine where we would be now if PayPal delivered on its promises.” Although Bidville does not use an integrated payment system as designed, patents are pending.


June Banners

Providian and Capital One ranked among the 25 most active on-line advertisers to the at-work Internet audience. While not among the top at-work advertisers, Internet-centric credit card issuer, NextCard, and ‘Shell MasterCard’ issuer, Chase, ranked among the top 25 advertisers targeting at-home surfers. Nielsen//NetRatings also noted this morning that Web usage at-work jumped 23% in the past year with more than 42 million Web surfers logging on to the Internet from their personal computers at the office last month. Last month, Internet users at-work logged in 43 times, rising 10% from 39 sessions a year ago. In June 2000, the average work user visited 28 sites while a year later they frequented 35 sites, marking a 25% increase. Time spent online grew to 22 hours and 38 minutes during June 2001. Providian delivered 432 million ad impressions during June while Capital One logged nearly 277 million ad impressions to the at-work Web audience. Among the at-home audience Providian scored 662 million ad impressions, Chase captured 359 million, Capital One delivered 335 million, and NextCard logged 246 million ad impressions. Among the top 10 banner ads viewed during June was a Chase ad for the ‘Shell Platinum MasterCard’ and Capital One’s ‘0% Platinum VISA’.


Money Transfers

Western Union Financial Services, Inc., a
subsidiary of First Data Corp., announced agreements that
will strengthen and significantly increase its network of worldwide agent
locations. The strategic addition of the Agricultural Bank of China and
Ukraine Post expands Western Union’s presence throughout Asia and Eastern
Europe and illustrates its commitment to partnering with the most trusted
local businesses and government entities.

The multi-year contract with Agricultural Bank of China calls for rollout
of Western Union Money Transfer(R) services at approximately 20 locations in
the Zhejiang province by the end of July. Additional expansion into the
Fujian and Guangdong provinces is anticipated by the end of the year. Over
the next three years, the company expects to add 10,000 Agricultural Bank

The agreement with Ukraine Post, a sub-agent of Western Union’s Ukranian
agent Aval Bank, calls for the addition of approximately 500 agent locations
over the next 18 months, giving the company more than 2,500 total locations
within the Ukraine. The company expects 10 of these locations to begin
receiving money transfer transactions by the end of July.

“Western Union keeps a constant watch on trends in global migration,” says
Charles T. Fote, president and chief operating office, First Data Corp. “Our
goal is to expand our network in a way that keeps pace with these trends,
allowing us to be where our customers need us. Once we’ve identified an
emerging or expanding market, we’re committed to making sure we have the right
agent partners in place.”

Combined with the recent addition of China Post, the agreement with the
Agricultural Bank of China gives Western Union access to the two largest
distribution channels in China. The Agricultural Bank of China is one of that
nation’s top four banks and is the number one bank in terms of number of

The addition of the Ukraine Post continues Western Union’s strategic
expansion in Eastern Europe, allowing the company to penetrate both rural and
urban markets. “International postal agencies have long offered a variety of
important services in their communities,” said Bill Thomas, president, Western
Union International. “In recent years many have also become trusted providers
of financial services. By partnering with these agencies Western Union is
able to extend its presence throughout the world, offering its services to a
much larger segment of the population. The addition of the Ukraine Post means
that it is now more convenient than ever for Ukranians living abroad to send
money home to loved ones.”

About Western Union and First Data

Western Union Financial Services, Inc., a subsidiary of First Data Corp.,
is a worldwide leader in consumer money transfer services. The company
provides rapid money transfer service through a global agent network.
Consumers can quickly, safely and reliably transfer money at more than 100,000
agent locations in more than 185 countries and territories using the Western
Union money transfer network. Famous for its pioneering telegraph service,
the original Western Union dates back to 1851 and introduced electronic money
transfer service in 1871. Western Union is celebrating its 150th anniversary
in 2001. For more information please visit the company’s web site at

First Data Corp. (NYSE FDC), with global headquarters in Denver, powers
the global economy. Serving approximately 2.6 million merchant locations,
more than 1,400 card issuers and millions of consumers, First Data makes it
easier, faster and more secure for people and businesses to buy goods and
services, using virtually any form of payment credit, debit, smart card,
stored-value card or check at the point-of-sale, over the Internet or by money
transfer. For more information, please visit the company’s Web site at


May Performance

U.S. consumer credit quality continues to deteriorate. During May, the annualized percentage of credit card loans written off as uncollectible rose for the fourth consecutive month, and the proportion of credit card accounts in which a monthly payment was more than 30 days past due also rose for the sixth consecutive month. According to Moody’s ‘Credit Card Index’ for credit card-backed bonds, the chargeoff rate in May 2001 rose to 6.62% from 6.02% in May of last year, and was up 33 basis points from last month’s rate. Personal bankruptcy filings, which rose to near-record highs in the first quarter, were again partly responsible, as most credit card issuers now write off bankrupt accounts within 60 days of receiving notice. Moody’s reports that the delinquency rate rose to 4.96% in May 2001 from 4.32% in May 2000. Yield has remained relatively stable despite the falling interest rate environment. So far in 2001, the monthly yield has averaged 19.68%. In May 2001, the yield was 19.56%, up from 19.49% in May 2000.



SureFire Commerce Inc. announced it has signed a definitive agreement with Network Commerce Inc. to
become their exclusive provider of Internet merchant accounts and transaction
processing services. Network Commerce will extend SureFire’s transaction
processing solution, FirePay, to over 250,000 businesses that have used the
company’s many e-commerce properties, including,, and SureFire expects to process millions
of dollars in transactions in the first year of this multi-year deal, as is the second largest online merchant base in the world.

“SureFire Commerce’s private label solution will help us move our
business forward rapidly and efficiently by enhancing our offering and
increasing our competitive differentiation,” said Dwayne Walker, Chairman and
CEO, Network Commerce Inc. “FirePay fulfills the needs of our merchants and
consumers by making it easier, more secure and virtually risk free to process
online transactions.”

SureFire’s secure, real-time transaction processing engine will provide
Network Commerce’s businesses and consumer clients with powerful transaction
processing capability and the ability to accept VISA, MasterCard and the
FirePay Personal Account solution. With this joint initiative, Network
Commerce merchants and consumers currently using their commerce services site
(, hosting site (, Web site builder
( and virtual mall ( will use the same
protocols and procedures to process VISA and MasterCard transactions online,
without all the disadvantages associated with obtaining traditional credit
card processing capabilities.

According to the terms of the agreement, SureFire also becomes the
internal billing service for all transactions between Network Commerce and its
merchant clients, including over thousands of businesses using This
agreement fits perfectly with SureFire’s recurrent revenue model, since the
company will earn a fee on every transaction.

“We are very excited about the potential created by partnering with
Network Commerce,” said Rory Olson, President and CEO, SureFire Commerce Inc.
“We project that this initiative, which is in line with our core transaction
processing strategy, will increase our yearly transactional volume by at least
10-20 per cent. It is also an exciting venue for our FirePay Personal Account,
which allows consumers to pay for products and services on the Web without
having to divulge sensitive credit card information. Furthermore, this
exclusive partnership allows SureFire to establish an immediate and
significant footprint in the United States.”

About Network Commerce

Established in 1994, Network Commerce Inc. ( is
the technology infrastructure and services company. Network Commerce provides
a comprehensive technology and business services platform that includes domain
registration, hosting, commerce, and online marketing services. Network
Commerce is headquartered in Seattle, WA.

About SureFire Commerce

SureFire Commerce Inc. is a global business-to-business provider of
proprietary e-commerce solutions in the area of secure credit card transaction
processing and merchant enabling. SureFire Commerce is an international
provider of secure online transaction processing services to goods and
services merchants in the areas of retail sales, sports, entertainment and
licensed online gaming, among others. Total transactions processed exceeded
$1.2 billion in fiscal 2001. SureFire Commerce’s merchant enabling solutions
provide telecommunications companies, Internet service providers, high traffic
portals and financial institutions the ability to generate recurrent revenue
streams for themselves and their small- and medium-sized business customers.
SureFire Commerce is headquartered in Montreal (Quebec) with offices in Hull
(Quebec), Boston (Massachusetts) and London (England).


Debit Promotions

FL-based BankAtlantic, has launched the ‘Bank Atlantic Check Card PowerPurchase Sweepstakes’. In addition to the points cardholders earn through the core ‘Check Card Rewards’ program, which was launched in July 2000, cardholders will now automatically be entered into the BankAtlantic sweepstakes for a chance to win a PT Cruiser . The BankAtlantic sweepstakes promotion is being communicated via radio, outdoor and newspaper advertising throughout the Broward County area. ‘Check Card’ users earn points and receive an automatic entry into the sweepstakes for each non-PIN purchase transaction made during the 90-day promotional period. Additionally, customers get five automatic entries each time they make a non-PIN purchase at partner reward merchants. The grand prize winners will be drawn on September 15.



SCM Microsystems will demonstrate in Brussels, Belgium, a prototype
terminal based on FINREAD specifications, capable of running any smart card

FINREAD, a consortium of financials institutions, has developed a series of
requirements for intelligent smart card readers intended to support
electronic commerce, home banking and digital signature applications. In
March, SCM announced its commitment to develop FINREAD compliant terminals
that use an open Java-based application interface and a K-Java Virtual
Machine to enable total interoperability of multiple applications on any
type of smart card across different vendors. When the application is not
recognized, the terminal automatically downloads the secure applet from a
trusted server.

“FINREAD is establishing the specifications to provide European banks with
one universal terminal infrastructure over which all online transactions
can take place,” said Robert Schneider, Chief Executive Officer at SCM
Microsystems. “Open standards are crucial to the acceptance of smart cards
and now the necessary infrastructure is in place for smart card issuers to
run their cards and applications on any terminal. The end user benefits by
having one terminal that can be used with multiple smart cards to download
cash, shop online, check bills and healthcare records, or do whatever else
is needed.”

“SCM is playing an integral part in the success and proliferation of online
authentication and payment transactions as we can provide the necessary
infrastructure that enables ubiquitous and open-ended use of smart cards.
With over ten years of experience in developing secure smart card readers,
we are proud to be participating with FINREAD to develop compliant
terminals and are committed to deliver the new products as these types of
standards are rolled out worldwide,” added Schneider.

SCM expects to deliver prototype terminals for pilots in Q4 2001 and
FINREAD compliant terminals for widespread deployment in Q3 2002.

The one-day FINREAD event will feature keynote speeches from Mr. Erkki
Liikanen, European Commissioner for Enterprise and Information Society, and
Mrs. Christa Randzio-Plath, member of the European Parliament and Chairman
of the Committee on Economic and Monetary Affairs. The conference will also
have several short videos on the future of smart card readers, including a
segment highlighting SCM’s CEO Robert Scheidner.

Members of the FINREAD Consortium include Groupement des Cartes Bancaires
“CB” (France), Visa EU (United Kingdom), Europay International (Belgium),
Banksys (Belgium), Interpay Nederland (the Netherlands), SIZ (German
Savings Banks Financial Group, Germany) and Ingenico (France).

For further information on SCM’s FINREAD terminals or other security
products, please visit

About SCM Microsystems

SCM Microsystems is a leading supplier of solutions that open the Digital
World by enabling people to conveniently access digital content and
services. SCM’s advanced silicon, hardware and software solutions enable
secure exchange of electronic information for digital applications from
e-commerce to digital video editing to broadband content delivery by
providing controlled access points to platforms such as PCs, digital
cameras and digital television set-top boxes. Known as a premier supplier
to OEM companies around the world, SCM also serves the retail market
through its Dazzle, Microtech and FAST product brands. Global headquarters
are in Fremont, Calif., with European headquarters in Pfaffenhofen,
Germany. For additional information, visit the SCM Microsystems Website at


FDC 2Q/01

First Data Corp. reported this morning that operating margins across its Payment Services, Merchant Services and Card Issuing Services units, exceeded 20% for the second quarter. Card Issuing Services posted operating profits of $85 million, an increase of 5%, while revenue of $376 million was relatively flat. During 2Q/01 FDC completed the acquisition of PaySys International. Payment Services reported that revenue was up 18% to $668 million and profits up 22% to $192 million. Worldwide Western Union money transfer transactions increased 23% to 26.3 million. International money transfer transactions increased 45% year over year. Merchant Services had revenue of $525 million, a 20% boost compared to the same period last year. Merchant acquiring volumes and transactions both grew 10% for the quarter. The TeleCheck business handled more than 16.9 million ECA transactions. FDC’s eONE Global business, formed last fall, reported $20 million in revenue for the second quarter, primarily from its government payments business, now known as govONE Solutions. For complete details on FDC’s second quarter performance visit CardData ([][1]).




Global Payment Technologies, Inc., a leading manufacturer and innovator of currency acceptance systems used in the worldwide gaming, beverage, and vending industries today announced that it has signed a new two-year Supply Agreement (the “Agreement”) with Aristocrat Technologies Australia Pty Ltd., through its affiliate Global Payment Technologies Australia Pty Ltd.

Aristocrat, a Sydney, Australia based company, is the second largest manufacturer of gaming machines in the world, and the leader in the substantial Australian gaming market. The Agreement calls for GPT to be the “Most Favored Supplier” for the Australian, New Zealand and South African gaming markets and, as such, GPT will be the currency validating equipment used as the standard by Aristocrat in its gaming machines for these markets. As in prior Agreements, this does not preclude Aristocrat from using alternative currency validating equipment.

Stephen Katz, GPT’s Chairman and CEO, said, “Since 1995, Aristocrat and GPT have forged a close working relationship that began with the development of GPT’s Generation II product. Since that time, our sales, marketing and engineering departments have continued to work closely to create a mutually beneficial partnership, which includes local sales, service and support provided by our affiliate, Global Payment Technologies Australia Pty Ltd. The new Agreement is a natural progression of our long-standing business relationship that spans more than six years and marks a strong beginning for the next phase of our growing partnership. We are pleased to continue to supply Aristocrat, one of the leading gaming companies in the world and the premier gaming company in Australia, what GPT believes to be, the best note validation equipment available today. We look forward to supporting Aristocrat as they continue their unprecedented growth and global expansion.”

Global Payment Technologies, Inc. is a United States-based designer, manufacturer, and marketer of automated currency acceptance and validation systems used to receive and authenticate currencies in a variety of payment applications worldwide. GPT’s proprietary and patented technologies are among the most advanced in the industry. Please visit the GPT web site for more information at http//

Aristocrat Leisure Limited (Aristocrat) – (ASX AUALL) is the leading supplier of gaming machines in Australia and the largest gaming systems Company in the world. Founded in 1953, the Company has 1700 employees and holds more than 100 licenses and/or regulatory approvals throughout the world (including the US), serving customers in 20 countries. Aristocrat has applied for more than 1400 patents, trademarks and designs and has been named “Innovator of the Year” by Business Review Weekly magazine. The Company pioneered the industry move to video technology and supplies its customers with multiple platforms through multiple delivery systems. Please visit the Aristocrat web site for more information at http//



Sigma Analytics, a provider of consulting, modeling and analytics for marketing and risk applications, announced that it is partnering with Atlanta-based Visionary Systems (VSI), a provider of automated credit and marketing decision services. As partners, VSI and Sigma Analytics will produce a behavior scoring service product, DecisionMiner. Among other uses, the product/process will statistically predict the best collection method based on in-house and outsourced data and will review customers on a periodic basis.

“DecisionMiner isn’t just about collections,” said Tim Olzer, principal of Sigma Analytics. “It’s about creating or preserving relationships with your most valuable clients. Recently, I learned about a company that wanted to generate additional fee income from the least profitable of its credit card customers – those that paid the bill in full every month. When the customers received notice that by not carrying a balance on the card they would be charged an annual fee, the bank received letters not only canceling the charge card, but also giving notice that those same customer’s valuable CD’s and mortgages would be moved. Better information would have prevented that.”

DecisionMiner creates optimized and targeted strategies from complex consumer data. DecisionMiner allows non-technical managers to use profit metrics to gauge existing strategies against new strategies, a champion versus challenger system. For implementation in the credit and collections industry, DecicionMiner will provide the best information available, through statistical modeling and analytics, using the most applicable data sources, such as internal data and credit bureau data.

“Modeling and statistical analysis can only be as good as the information that fuels it,” said Tim Bates, vice president of Sales for Visionary Systems. “Since VSI has access to the best consumer data, and Sigma Analytics is a leader in creating new statistical models and analysis methods, the partnership that created DecisionMiner is synergistic at the minimum.”

By using DecisionMiner, creditors can use the most effective collections process based on the past behavior of the consumer, or can use the modeling for customer relationship management functions or event just to determine line of credit advancements. “Essentially, using DecisionMiner, a creditor can determine best practices for collections for its unique customer base,” Bates continued, “or specifically tailor CRM information to its unique needs, based on results it and other companies compile.”

Version 1.0 will have an interactive portion that will allow decisions to be based on both traditional data and the data acquired from a company’s experience with the actual customer, the most accurate of predictive data sources. Version 2.0 is expected in the first quarter of 2002.

About Visionary Systems

Visionary Systems is an independent third-party provider of consumer evaluation and decisioning services that facilitate credit granting and target marketing processes. The company’s highly customizable proprietary systems enhance customer operations by enabling sophisticated, real-time evaluation and decisioning Visionary Systems Inc.’s provides fraud detection, identification verification, risk evaluation, and decision recommendation services to a wide cross section of financial service providers. The primary target market includes those in the banking, finance, automotive, retail, utility and insurance industries.

For more information on Visionary Systems contact Kevin Scollard, senior vice president of Sales and Marketing, 404.504.9006, via email, or write Visionary Systems Inc., 550 Pharr Road, Suite 525, Atlanta, GA 30305.

About Sigma Analytics

Sigma Analytics is a business and technology consulting firm specializing in developing statistical solutions for both risk and marketing applications. The company provides cutting-edge data mining tools and full-service strategic consulting optimized for the bankcard, home equity/mortgage, automotive, e-commerce (business-to-business and business-to-customer) and collections/recovery industries. Sigma is based in Atlanta and can be reached by phone at 770.804.9899. Visit its Web site at [][1].




Gemplus is cutting 200 jobs in Germany and about 250 positions in the U.S.
as part of a restructuring plan. Gemplus says the cuts represent about 6%
of its worldwide workforce and no further plant closures are expected. The
company is forecasting a 2Q/01 operating loss of between 10 million and 15
million Euros and lowered its 2001 sales forecast to a 2%-5% rise from a
12%-14% rise. There have been rumors about a rift between Gemplus
chairman/founder Marc Lassus and the company’s CEO Antonio Perez over the
restructuring plan.