KONTO INTELIGO

Euronet Worldwide, a leading provider of secure electronic financial transaction solutions, is teaming with Inteligo Financial Services S.A. and Bankgesellschaft Berlin (Polska) S.A. to provide debit card services for an estimated 150,000 Inteligo Internet and mobile banking clients in the next 18 months.

“Konto Inteligo” is Poland’s newest remote banking brand. With the backing of Bankgesellschaft Berlin (Polska) S.A. (a fully owned subsidiary of Bankgesellschaft Berlin AG), Inteligo has aggressive plans to expand service offerings throughout neighboring countries. It is the second bank in Poland to use Euronet’s debit card outsourcing services. The outsourcing program supported by Euronet’s operation center includes debit card, charge card and credit card management capabilities; low up-front investment cost, flexibility and speed to market. This debit card outsourcing program enables Inteligo’s clients to access their accounts from Euronet ATMs across Poland.

Euronet’s outsourcing program enables the issuance of the VISA Electron cards, authorizes financial transactions and provides access to VISA network gateway services. Through remote terminal access, daily transactions of Inteligo account holders will be monitored in the system, enabling the Bank to retain customer service functions in its own call center. The outsourcing program also provides direct access to all relevant client information for Inteligo’s consultants.

“Euronet has helped us to build the infrastructure required to support our card operations in a very short period of time,” said Grzegorz Dlugosz, Retail Banking Operations Director for Bankgesellschaft Berlin (Polska) S.A. “We avoided capital outlays on the application and hardware purchases in addition to internal overhead. Now, we are able to offer our clients access to a more extensive set of financial transactions on Euronet’s ATM network in Poland. Our product offering is focused on individual and small business clients, who want the convenience associated with modern electronic banking solutions.”

“We are honored to aid Inteligo in their ambitious project to create a new remote bank,” said Michael Brown, Euronet Worldwide Chairman and CEO. “This debit card program will increase transaction volume across the Euronet ATM network in Poland. We enable start-up operations to function as established institutions by providing quick-to-market outsourcing solutions in local markets supported by high-quality professional service.”

About Euronet Worldwide

Euronet Worldwide is an industry leader in providing secure electronic financial transaction solutions. The company offers financial payment middleware, financial network gateways, outsourcing and consulting services to financial institutions and mobile operators. These solutions enable their customers to access personal financial information and perform secure financial transactions — any time, any place.

The company has processing centers located in the United States, Europe and Asia, and owns and operates the largest independent ATM network in Europe. Euronet was recently ranked number two on the Deloitte & Touche Technical Fast 500, a ranking of the fastest-growing technology companies in North America. With corporate headquarters in Leawood, Kansas, USA, and European headquarters in Budapest, Hungary, Euronet serves more than 200 clients in 60 countries. Visit our web site at www.euronetworldwide.com.

About Inteligo Financial Services S.A.

Inteligo Financial Services S.A., with headquarters in Warsaw, Poland, is owned by Inteligo Group (51%) and Bankgesellschaft Berlin AG (49%). The company goal is to establish Inteligo as the leading brand in direct/remote banking and non-banking financial services via offering best value, best customer experience and relevance in innovation. Inteligo is focusing on serving individual and small business clients via electronic channels, such as the Internet and wireless services. Inteligo is not going to establish typical physical branches, but will concentrate on primarily electronic touchpoints, with key emphasis on Internet and mobile channels.

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PayPoint Tulsa Center

To provide state-of-the-art disaster recovery protection for its retail clients, Los Angeles-based PayPoint Electronic Payment Systems has opened a second data center in Tulsa, Oklahoma. The new 10,000 square foot data center is designed to handle 100 percent of PayPoint’s payment processing load in an emergency. Because the new center is planned to process 30 percent of PayPoint’s ongoing day-to-day transactions, it will also enhance the company’s normal operations.

“With the growing use of plastic, payment processing is increasingly important to retailers,” says PayPoint’s Chief Technology Officer Rick St.Cyr. “A retailer’s business can be seriously impacted if their payment processor’s data center goes down due to earthquake, fire, flood, storm or terrorism. Because we’ve made the investment in internal, fully-redundant dual processing, we can offer retailers true real-time disaster recovery backup with minimal transition time. We believe this makes us differential in the industry.”

PayPoint’s new data center is a virtual clone, or mirror, of its main Los Angeles data center. Both centers house identical processing, networking, and monitoring equipment. These nerve centers enable PayPoint to authorize and settle millions of payment transactions per day for grocers, convenience stores, restaurants, gas marketers, and specialty stores nationwide.

In normal operating mode, the Los Angeles center will process 70 percent of PayPoint’s transactions while Tulsa will handle 30 percent. Tulsa will focus on processing transactions for East Coast retail locations. All transactions are immediately replicated at both sites. In case of a disaster at the L.A. site, Tulsa will begin handling 100 percent of PayPoint’s transactions. If Tulsa went down, L.A. would handle 100 percent of the load.

“Our retail customers will find this new data center very attractive,” says PayPoint Sales & Business Development VP Fred Coblentz. “Not only does it add peace of mind, but it will enhance their operations. Having a second data center to help carry the normal load improves our speed, flexibility, and performance. For our retail customers, it means greater reliability and faster response time.”

A PayPoint project team spent several months planning, designing, testing, and starting up its new dual processing system. Once the Tulsa site was selected, new computer equipment was ordered and a network was designed to move data between the two centers. The team tested and perfected the dual processing center system over the last few months.

PayPoint is a leading national electronic payment processor offering credit, debit, gift card, check, EBT, proprietary card, and e-commerce processing. Its clients include major supermarkets/grocers, petroleum retailers, quick service restaurants, convenience stores, and specialty retailers.

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Providian Leadership

Over the past two years Providian has gone through a dramatic transformation, from an aggressive card issuer targeting the unbanked and credit challenged, to the most enthusiastic and leading issuer of next generation bank credit cards. Yesterday, Providian, the nation’s eighth largest bank credit card issuer, confirmed it has now broken through the one million card mark for the issuance of its new ‘smart VISA’ cards. Providian’s ‘smart VISA’ card is currently being offered by invitation and online through the ‘GetSmart’ brand. The issuer recently upgraded holders of ‘Aria’-branded cards to ‘GetSmart’cards. Last month, Providian merged its e-commerce products and services under its GetSmart unit. The new ‘GetSmart smart VISA’ card is being offered in three product levels with interest rates ranging from prime +1.99% to prime +12.49%. Earlier this month Providian upgraded its chip card memory from 8K to 32K, added an array of new card colors, and indicated plans to migrate about 95% of its portfolio to smart cards. According to CardData, Providian has more than 17 million accounts. The Providian ‘smart VISA’ was introduced on September 12, 2000. To-date nearly eight million smart payment cards have been issued by American Express, Fleet, First USA, and Providian. (CF Library 9/12/00; 5/15/01; 6/13/01)

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Oberthur Gets DeFore

Oberthur Card Systems of America named Daniel DeFore director of marketing responsible for magnetic stripe cards, personalization and related fulfillment services (data-mining, data- warehousing, one-to-one marketing), a significant portion of the company’s operation and growth strategy. DeFore will be located at Oberthur’s Chantilly, Virginia facility.

“As Oberthur moves towards offering more than just traditional personalization services, Dan will help us identify and anticipate what our customers’ need to maintain a competitive advantage,” noted Philippe Tartavull, CEO for Oberthur Card Systems for the Americas. “Dan’s expertise in bringing innovative services to customers for MCI and AOL provides Oberthur with an exceptional skill set as we broaden our product offerings to create one-to-one services for telecommunications and financial institutions and their customers.”

A 15-year veteran in product marketing, DeFore most recently led MCI WorldCom as a senior manager in charge of company-wide CRM tools designed to reduce costs, improve revenue contribution and improve customer retention. He also spearheaded several strategic cross-channel partnerships which drove incremental sales.

DeFore served as a manager in America Online’s e-commerce business operations division. At AOL, he fueled major growth for the unit through online customer service management, vendor negotiations, streamlining financial transactions and assisting in the development and execution of a comprehensive e-commerce strategy.

About Oberthur Card Systems

Oberthur Card Systems (Paris Stock Exchange – Code SICOVAM 12413), a global leader and the innovator in the smart card industry, is shaping the future by offering the ultimate in SIM, WAP, 3G (IMT-2000/UMTS), e-wallet technologies & Internet-based card management services coupled with a firm commitment to open standards.

Championing EMV migration, Oberthur is the world’s #1 supplier of MasterCard and Visa cards, #1 in banking, e-commerce, m-commerce and pay-TV, Oberthur is also the #1 in Java(TM) and GSM technologies.

Oberthur Card Systems has an international reach ensured by 30 sales offices and 20 manufacturing sites across the five continents. Oberthur Card Systems had sales of 451.1 million Euros in 2000.

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Credit Tightening

Credit card issuers are continuing to tighten underwriting standards as the economy stagnates. The OCC’s seventh annual ‘Survey of Credit Underwriting Practices’ found that underwriting standards tightened more significantly during the 12 months covered by the 2001 survey than in either of the previous two years. The research showed that 32% of the banks tightened retail standards, while 20% eased standards. Banks cited the economic outlook as the most frequently cited reason for tightening standards, followed closely by change in risk appetite and product performance/portfolio quality. Examiners also reported that the level of inherent portfolio credit risk increased in the past year. Last month, the Federal Reserve found that one-fifth of banks reported they had tightened standards on credit card loans during the first quarter, compared with 12% in the fourth quarter. In addition, 19% of survey respondents, on net, reduced credit limits on these loans. The ‘May 2001 Senior Loan Officer Opinion Survey on Bank Lending Practices’ found that expected future increases in consumer delinquency rates were the main reason cited for changing consumer-lending policies. (CF Library 5/15/01; 5/18/01)

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USTT Signs Betson

USA Technologies, Inc. has teamed with Betson Enterprises, one of the United States’ largest distributors to the vending and entertainment industry, to immediately begin selling its e-Port intelligent vending technology.

USA Technologies announced Thursday that Betson Enterprises was the latest, and the biggest distributor to sign on as an authorized reseller of the e-Port(TM) family of offerings. Last week, USA Technologies announced that five new distributors had joined the authorized reseller program, bringing the total number of distributors in the program to more than twenty worldwide. USA Technologies’ network of resellers now spans the American and Canadian market, and major overseas geographies, including Europe, the UK, and the Asia Pacific region.

Betson Enterprises is considered one of the biggest manufacturers and distributors in the United States covering a variety of growing and competitive industries, including vending machines, interactive video games, redemption games, and other high skilled and innovative entertainment and services technology. Betson Enterprises is also backed by a global marketing organization with proven import and export experience, and important parts and supply strengths.

“e-Port with its credit card payment capability allows customers to conduct cashless transactions, including microtransactions for as low as $1.00. This offers consumers and vending machine operators added convenience and simplicity,” said Steven Betti, CEO, Betson Enterprises. “It overcomes the need for coins and notes, strengthens security, and provides streamlined auditing control. The interactive multimedia display that comes with e-Port will allow vending operators the ability to provide promotional product information, opening up greater opportunities for us to sell more vending machines,” he said.

Betson Enterprises is made up of 10 distributorships, a wholesale supplier of coin-operated parts and billiard supplies, an export division, and an equipment wholesale division that sells products to other distributors. Included among its list of suppliers are: Games – Sega, Stern, Dynamo, Namco, Konami, Jessler, Merit, Coastal, JVL, Skee-Ball, U-wink, Apple Photo, Smart and Elaut. Vending – Automatic Products, Automated Merchandising Systems, Dixie-Narco, Royal Vendors, Vendo, Vendtronics, Fastcorp, Zanussi, USI, Appart, American Changers, Rowe, Mars, Coinco, Conlux, Amana, and Panasonic.

“Betson Enterprises is an ideal strategic partner for distributing our e-Port family of offerings worldwide,” said Stephen P. Herbert, President and Chief Operating Officer, USA Technologies, Inc. “Betson Enterprises has the global experience and presence to deliver e-Port quickly and efficiently to all our customers, wherever they are located, whatever industry they serve. USA Technologies will work closely with our new partner to leverage e-Port technology to add value to their customers and to drive Betson’s business results,” he said.

The USA Technologies Authorized Reseller Program was launched a little more than a year ago. It offers USA Technologies greater distribution of its technology, new marketplace opportunities and expanded distribution channels worldwide. USA Technologies expects to more than double the number of authorized resellers to fifty by year’s end, and to have more than one hundred distributing e-Port by the end of 2002.

e-Port is the world’s first non-PC e-commerce device that can be embedded into vending machines, and almost any kind of point-of-sale terminal, including gas pumps, office equipment, postage machines, and ATMs. The technology converts unattended points of sale terminals into intelligent “store fronts” connected to the Internet. The solution is capable of communicating operational data to operators, conducting cashless micro-transactions and providing interactive media at point of sale. The e-Port can come fitted with an interactive video screen that features rotating banner advertisements, giving customers the opportunity to make add on purchases, and location owners the ability to promote and advertise products and services, and provide free access to web based media such as news, sports and weather.

About USA Technologies:

USA Technologies is recognized as a leader in cashless micro transactions and interactive media technology and associated financial services. USA Technologies provides credit card activated and other cashless systems, allowing end users, ranging from consumers to business professionals, to communicate, conduct business or make ordinary commerce transactions, outside of the home or workplace. USA Technologies is an IBM (NYSE: IBM – news) Business Partner and an inaugural member of the Sprint (NYSE: FON – news) Enabling Application Service Provider Program for e-commerce. It has also established relationships with a number of global IT, multimedia, and telecommunications companies including Marconi Online Systems, RadiSys Corporation, DoubleClick Inc., and Xerox Corporation. Visit the USA Technologies home page at [www.usatech.com][1].

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

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IQ Multiplex

Global Card Services has implemented several credit card management services for the travel & entertainment industry powered by the ‘Sybase Adaptive Server IQ Multiplex’. ‘IQ Multiplex’ is a high-performance, relational database that provides scalable e-business intelligence for Web-enabled data warehousing. GCS uses ‘IQ Multiplex’ technology to process information for all of its online credit card applications. These applications allow merchants to process payments and quickly review transactions when refund requests occur. The combined GCS/Sybase solution creates efficiencies and reduces costs associated with credit card chargebacks, customer inquiries, processing fees and account reconciliation.

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LML – Phoenix Update

LML Payment Systems Inc. announces it has entered into an amending agreement with respect to its purchase of Phoenix EPS Inc. on July 9, 2000. As part of that transaction, the Corporation agreed to certain price protection covenants for the benefit of the former shareholders of Phoenix EPS that involved the further issuance of additional common shares of the Corporation. Rather than having the former shareholders of Phoenix EPS sell all their original shares and then exercise the price protection mechanism, the Corporation has agreed to issue an additional 679,134 shares of the Corporation’s common stock to the former shareholders of Phoenix EPS Inc.

The Corporation’s common shares issued pursuant to the Amending Agreement are being issued as restricted securities and may only be resold under Rule 144 as currently in effect or, alternatively, registration under the 1933 Act or in compliance with another exemption from registration requirements.

“The original price protection mechanism was predicated in part, on the former Phoenix shareholders selling all of the LML shares they had received in the original transaction and then being issued new additional shares based upon a present share value significantly lower than the original share value. This amendment satisfies our obligations regarding price protection and is something we believe to be in the current and future best interests of all our shareholders,” said Corporation President and CEO, Patrick H. Gaines.

The Corporation, through its subsidiary LML Payment Systems Corp., is a financial payment processor providing end-to-end check processing solutions including Electronic Check Conversion (whereby paper checks are converted into electronic transactions), electronic check verification, electronic check re-presentment (whereby returned paper checks are re-presented for payment electronically), and primary and secondary check collection to supermarkets, grocery stores, multilane retailers, convenience stores and other national, regional and local retailers. We also specialize in providing selective routing, including real-time monitoring of check, debit, credit and EBT transactions for authorization and settlement through our flagship transaction processing product REPS (Retail Electronic Payment System). The Corporation’s intellectual property estate, owned by subsidiary LML Patent Corp, includes new U.S. Patent No. 6,164,528 regarding Internet checking transactions, in addition to U.S. Patent No. 5,484,988 which describes a “Checkwriting point of sale system,” which, through a centralized database and authorization system, is capable of providing and administering various electronic payment services for customers and businesses. Also included in our intellectual property estate is a recently received Notice of Allowance from the United States Patent and Trademark Office for a new patent based upon United States Patent Application Serial No. 09/562,303. The new patent describes corporate checks and electronic fund transfers (EFT) and relates to existing U.S. Patent No. 6,164,528 and U.S. Patent No. 5,484,988 (described above).

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Dash Award

Euronet Worldwide, a leading provider of secure electronic financial transaction solutions, was recognized as having one of the best records for transaction processing and highest service by the PULSE EFT Association, the leading financial industry-owned and operated electronic funds transfer network in the United States.

Dash, Euronet’s U.S.-based EFT processor, has processed transactions for the Houston-based regional network since 1996.

The Dash network, based in Little Rock, Arkansas, was awarded the Premier Processor Award by PULSE for transaction authorization performance and service availability that averaged 99.95% during 2000. PULSE monitors the levels of each data processing organization linked to the PULSE Switch and recognizes the top five performers. Dash rated in the top three.

“We are thrilled to receive this honor,” said Kenny Kerr, Euronet Vice President and President of Dash. “We are especially proud in light of the special challenges that we faced in 2000. Even though we moved our data center during a snow storm, our talented and experienced network operations team was able to keep the data center running smoothly the whole time.”

About Euronet Worldwide

Euronet Worldwide is an industry leader in providing secure electronic financial transaction solutions. The company offers financial payment middleware, financial network gateways, outsourcing and consulting services to financial institutions and mobile operators. These solutions enable their customers to access personal financial information and perform secure financial transactions — any time, any place. The company has processing centers located in the United States, Europe and Asia, and owns and operates the largest independent ATM network in Europe. With corporate headquarters in Leawood, Kansas, U.S.A., and European headquarters in Budapest, Hungary, Euronet serves more than 200 clients in 60 countries. Visit our web site at www.euronetworldwide.com.

About PULSE

PULSE is a financial industry-owned, not-for-profit EFT network, linking an estimated 60 million cardholders with more than 76,500 ATMs and 300,000 POS merchant locations throughout the United States, processing 700 million transactions annually. Its members include more than 2,700 banks, credit unions, and savings and loans in a 22-state service area blanketing the central, south, midwest, and southwest regions of the United States.

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E-Commerce

According to results of the inaugural ‘Yahoo!/ACNielsen Internet Confidence Index’, more than four out of 10 U.S.-based Internet users intend to purchase online during the next three months, and will spend an estimated $9.9 billion via the Web during that period of time. Regionally, Internet users in the Northeast exhibit generally higher confidence in e-commerce overall, especially in regard to delivery of goods purchased, price comparison tools and the ability to find better prices online. Internationally, 76% of all British home Internet users recently visited an e-tailing Web site compared to 74% of U.S. home Internet users, according to data gathered by Paris-based NetValue. The Yahoo!/ACNielsen study showed that the main motivators driving online purchasing in the U.S. are the ability to get a wide array of product information, the ability to compare prices, and product selection. Consumers rated comfort with using a credit card online and disclosure of personal information as the biggest barriers, but also revealed that they are relatively confident that the goods they order online will be delivered properly. Convenience does not appear to be a significant motivator to online shopping, and consumers are less confident in their ability to find better prices online. Comparing heavy Internet users (daily use) with light Internet users, overall confidence among heavy users is driven by higher confidence in online credit card use, convenience, availability of information and proper delivery of goods, as well as the ability to compare prices. While men and women indexed similarly in most attributes, men have more confidence that they will find lower prices online. Among previous online purchasers, nearly seven out of 10 people intend to purchase over the next three months. On average, purchasers will spend an estimated $184 each during the same time period. (CF Library 6/25/01)

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SecureSuite

As VISA rolls out ‘Visa Payer Authentication’ and MasterCard’ introduces ‘Secure Payment Application’ , NY-based Cyota yesterday unveiled an integrated online payment security platform designed to seamlessly integrate a wide range of authentication, association and credit card security products into a single, consistent user experience. Cyota’s ‘SecureSuite’ guarantees that an issuer’s brand is not diluted online since it offers a single backend integration flexible enough to allow banks to implement new association initiatives in any order and at their own pace. ‘SecureSuite’ was developed after working with multiple issuers in the U.S., Europe and Japan, and was designed to work with the different legacy systems and security protocols of global issuers.

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CREDIT DECISIONING

Equifax Inc. and Fair, Isaac and Company, Inc. announced an
agreement to offer lending institutions in Brazil a one-stop solution to reach
the country’s most credit-worthy consumers, as an expansion of the two
companies’ strategic partnership.

The agreement will provide Brazilian businesses and credit grantors with a
range of credit granting (also known as “decisioning”) tools that allow
lenders to assess credit risk and cross-sell multiple lines of credit. The
first of these offerings, which will be available in the fourth quarter of
2001, will access credit information from Equifax, deliver scores developed by
Fair, Isaac and enable lenders to establish proprietary risk management
strategies.

Equifax information and Experto(TM) decisioning technologies will be
integrated with Fair, Isaac’s LiquidCredit(TM) — its Web-enabled credit
decisioning solution — so that lenders may offer instant credit to consumers.
This service also will empower lenders to convert one-time transactions into
financial relationships with customers — a strategic advantage for businesses
seeking to establish a long-term consumer and commercial franchise.

“The power of this partnership — combining superior Equifax information
with Fair, Isaac analytics and our shared technologies — will provide our
customers with the most advanced credit decisioning tools available in the
world,” said Tom Chapman, chairman and chief executive officer of Equifax.
“Our ability to provide these services to lenders will further our mutual
reputation for leadership in the Brazilian credit market, ease the process of
determining credit worthiness and help top lenders rapidly build market
share.”

This exclusive partnership is a major commitment of dedicated resources by
both companies, leveraging their combined strengths to offer credit granting
products and services for Brazil’s rapidly growing consumer and commercial
credit markets.

Tom Grudnowski, chief executive officer of Fair, Isaac, believes this
partnership has far reaching implications “We view this as an opportunity to
create a sea change in availability of credit for consumers and businesses.
This will lead to growth in e-commerce, finance, retail, telecommunications,
insurance and a host of other industries,” he said. “This is just the first
step we’re taking with Equifax to expand the potential of this market.”

Brazil’s vibrant economy and young population make the country an
outstanding market for Equifax and Fair, Isaac. According to the Banco
Nacional de Desenbolvimento Economico e Social (BNDES), the chief federal
agency for long-term funding aimed at promoting Brazil’s development, Brazil
is the sixth most highly populated country in the world with a population of
165 million. Almost 60 percent of the population is under the age of 30. With
a dynamic and fast growing Gross Domestic Product, currently at US$786
billion, Brazil is spawning increasing growth in income proceeds, resulting
from the sharp drop in the inflation rate from 20 percent in 1999 to nine
percent in 2000.

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 eight times in the last nine years.

About Equifax

Equifax enables and secures global commerce through its information
management, consumer credit, marketing services, business information,
authentication and e-commerce businesses. As the leader in information
services, Equifax adds value wherever customers do business, including the
financial services, retail, telecommunications/utilities, information
technology, brokerage, insurance and business lending industries and
government. Equifax also enlightens, enables and empowers consumers to manage
and protect their financial health with services offered at http//www.equifax.com .
The company ranked in the top five in return on equity among Business Week’s
Best Performers for 2001. Equifax employs 12,000 in 18 countries, has sales
in 50 countries and has $2 billion in revenue.

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