Chase Comm Card Head

J.P. Morgan Chase & Co. announced Monday that Gene Ryzewicz will assume the management of the JPMorgan Chase Commercial Card Group. In this role, Gene will continue to enhance JPMorgan Chase’s position in one of the fastest growing segments of the payment systems industry.

Ryzewicz has most recently served as the Business Executive for the International Consumer Business at Chase. In addition, he has held senior marketing positions over a span of 15 years at Chase, Chemical and Citibank. At Citibank, he started the Commercial Card business and ran Diners Club Corporate Card business.

“To compete in this high-growth industry, we are emphasizing the importance of providing our premier client base with innovative products, best-in-class technology and unsurpassed customer service, as well as robust e-procurement solutions for their business-to-business purchases,” said Richard Srednicki, Chase Executive Vice President in charge of its credit card business. “We will leverage Gene Ryzewicz’s leadership skills and broad range of experience in the credit card industry to proactively serve the needs of our commercial card customers and continue to build momentum for the business.”

The JPMorgan Chase Commercial Card Group offers customized MasterCard and Visa Purchasing Card, Corporate T&E and Fleet Card, and integrated functionality One Card programs. The commercial card offerings are issued by Chase Manhattan Bank USA, N.A. Chase’s credit card portfolio has more than 20 million accounts and over $37 billion in outstandings. Chase is the fourth largest bank card issuer in the United States, and its joint venture with First Data Corporation makes it the largest merchant processor in the U.S.

J.P. Morgan Chase & Co. (NYSE: JPM, www.jpmorganchase.com) is a premier global financial services firm with assets in excess of $714 billion and operations in more than 50 countries. The firm is a leader in investment banking, asset management, private equity, custody and cash management services, retail and middle market financial services and e-finance. Headquartered in New York, JPMorgan Chase serves over 30 million consumer customers and the world’s most prominent corporate, institutional, and government clients.

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FUSA Counsel

Bank One Corporation named Lynn A. Goldstein, 52, senior vice president and deputy general counsel with responsibility for the company’s First USA credit card unit. She will report directly to Bank One’s Chief Legal Officer Christine A. Edwards.

“Lynn has demonstrated time and time again that the Bank’s most significant legal issues are in good hands in her care,” Edwards said. “First USA will benefit greatly from her talent and experience.”

Goldstein has headed the Litigation Practice Group at Bank One and predecessors since 1988. Before joining the bank in 1983, she was an associate at the Chicago law firm of Sonnenschein Carlin Nath & Rosenthal and clerked for Joel M. Flaum, now chief judge of the U.S. Court of Appeals for the Seventh Circuit.

“I’m delighted to welcome Lynn to our senior management team here at First USA,” said Philip Heasley, chairman and chief executive officer of First USA. “She already knows our organization and will help our efforts to build First USA into the nation’s premier payment systems company.”

“I look forward to working directly with First USA’s ambitious and talented management team, and to further improving its excellent legal staff,” Goldstein said.

Goldstein earned her law degree with Highest Honors from the Chicago Kent College of Law in 1978 and a bachelor’s degree from the University of Iowa in 1970.

Bank One (NYSE: ONE) is the nation’s fifth-largest bank holding company, with assets of more than $270 billion. Bank One offers a full range of financial services to commercial and business customers and consumers. It can be found on the Internet at [www.bankone.com][1] .

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

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SA Cash

The University of Hartford in Connecticut has chosen Student Advantage’s ‘SA Cash Program’ to launch a stored-value program. Hartford joins Dartmouth, NYU, Quinnipiac University, American University, Marquette University, West Texas A & M, and Washington St. University in offering the cash-less porgram. More than 6,800 undergraduate and graduate students at Hartford will be enrolled in the ‘SA Cash Program’ for the fall semester. ‘SA Cash’ is a feature of the stored-value account already on the university ID. ‘SA Cash’ enables students, faculty and staff to purchase services and specialty foods, and pay for entertainment at off-campus merchants. Students use their university IDs to make purchases on-campus from vending machines, dining halls, the bookstore and to do laundry, among other on-campus applications. Three other universities will join the program in the fall including Johns Hopkins University, Eastern Michigan University and the University of Wisconsin at Stevens Point.

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NPC Signs Lone Star

National Processing Company announced this morning the signing of a multi-year processing agreement with Lone Star Steakhouse & Saloon, Inc. Under the terms of the agreement, NPC will provide merchant processing solutions for all Lone Star restaurants’ VISA and MasterCard transactions.

Lone Star Steakhouse & Saloon, Inc. is a unique category of restaurants that feature a limited menu, concentrating on high quality USDA choice-grade steaks, and embrace a Texas-style concept that is popular among the 25 to 54 age group. NPC will provide Lone Star front-end authorization and settlement services, as well as years of experience processing credit card transactions for the Travel & Entertainment industry.

“NPC is delighted to be processing credit cards for the Lone Star family of steakhouses,” said Drew Soinski, senior vice president of Travel & Entertainment Services for NPC. “Lone Star has carved a niche in the high- growth restaurant industry where NPC has recently made substantial investments in providing industry-specific processing solutions. This partnership equates to a win-win for everyone involved.”

“Lone Star’s success formula is similar to NPC’s — excellence in operations and quality of products and service,” said Mark Pyke, executive vice president of Merchant Services for NPC. “NPC offers one of the best values in the industry for total cost of card acceptance. Lone Star is poised for significant growth, and we are excited regarding the possibilities our processing solutions can offer.”

“We are excited about partnering with NPC,” said Randy Pierce, chief financial officer of Lone Star Steakhouse & Saloon, Inc. “NPC has remained successful by keeping itself focused on its core product — payment processing. NPC embraces our philosophy of providing superior customer service, and this relationship will enable us to continue providing our customers with superior quality in an accurate and timely manner.”

About Lone Star Steakhouse & Saloon, Inc.

Lone Star Steakhouse & Saloon is a unique category of restaurants offering high-quality service and food. Lone Star owns and operates 243 domestic and 26 international Lone Star Steakhouse & Saloon restaurants; 15 Sullivan’s Steakhouse restaurants; and five Del Frisco’s Double Eagle Steak House restaurants.

About National Processing, Inc.

National Processing, Inc. through its wholly owned operating subsidiary, National Processing Company (NPC(R)) is a leading provider of merchant credit card processing. National Processing is 87 percent owned by National City Corporation (NYSE: NCC) ( http://www.nationalcity.com ), a Cleveland based $91 billion financial holding company. NPC supports over 500,000 merchant locations, representing nearly one out of every five Visa(R) and MasterCard(R) transactions processed nationally. NPC’s card processing solutions offer superior levels of service and performance and assist merchants in lowering their total cost of card acceptance through our world-class people, technology and service. Additional information regarding National Processing can be obtained at http://www.npc.net .

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Stitch Networks

PA-based e-Vend.net Corp announced Monday it is changing its name to: Stitch Networks Corporation. The company says that following the success with its Kodak vending program and programs with bottling and full-line operators it is time to move beyond the vending industry. The name Stitch Networks refers to a selection of reusable threads: application toolsets that are the building blocks for the construction of vertically targeted thin-client networks of everyday devices. Threads in the Stitch library include online credit and debit card processing, radio frequency identification tags processing and PIN account management, sales reporting, field service, inventory picking tickets, remote device control, status monitoring, wireless, POTS, and IP WAN access management. Stitch Networks is gearing up to expand its e-Suds.net service beyond its successful MIT program to include additional colleges, multi-housing facilities, and other self-serve laundry facilities.

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VISA Gets eFORCE

eFORCE, a Silicon Valley-based information technology solution integrator with offices in North America, Europe and India, has been selected by Visa U.S.A. to provide technical consulting and application development for Visa Direct Exchange, the world’s largest private financial payments network using Internet technologies.

![][1] Direct Exchange creates an enabling service and networking infrastructure based on secure, open technologies. The new infrastructure will quickly impact product release cycle times, enabling Visa and its member banks to introduce sophisticated new services to merchants and cardholders. The scalable, highly reliable solution infrastructure is based on open technology standards supplied by Visa U.S.A., Sun Microsystems and Cisco. Visa U.S.A. expects a strong return on investment and access to a wider array of cost-effective, non-proprietary technologies.

“This network realizes Visa U.S.A.’s vision of integrating the benefits of open technology standards with the power of the largest payment clearing system in the world to support universal forms of commerce (‘u-commerce’),” said Sara Garrison, senior vice-president, Technology Development, Visa U.S.A. “eFORCE’s industry knowledge and advanced applications development skills will help Visa U.S.A. achieve our objectives.”

eFORCE is extensively involved in the applications development arm of the initiative, which plans to deploy an extensive array of applications on the new infrastructure. The eFORCE personnel involved provide strategic management, technical development and implementation support, including the use of the solution integrator’s robust information technology deployment methodology, eBRIDGE(TM) (eBusiness Rapid Implementation and Deployment for Global Enterprises). Its components include the UML/Rational Unified Process; Grove Visual Facilitation Process; phased, value-driven delivery; blended client and consultant teams; security and network infrastructure expertise; high performance architecture expertise; and tight integration with the firm’s global Centers Of Excellence, supporting training and development.

The global Financial Services Practice operated by eFORCE from Centers Of Excellence in San Francisco, Boston, New York, London, and Calcutta, has helped leading financial institutions in the banking, mutual funds and insurance industries leverage the power of e-business technologies to gain increased customer satisfaction, operational efficiencies and strategic market advantage.

The Visa U.S.A. Direct Exchange network incorporates Sun’s highly scalable, reliable and secure computing platform and Cisco’s intelligent routing technologies to create one of the most powerful payments processing systems in the world. Visa U.S.A. Direct Exchange will be capable of processing all U.S. issued Visa U.S.A. credit and debit cards, along with all other forms of electronic payment. It will process $60 million in payments an hour per day, surpassing $1 trillion in payments annually. The network will be able to accommodate a volume of 10,000 messages per second with capabilities for exponential growth — more than 100 billion transactions annually, which is more than double today’s volume.

Visa U.S.A. Direct Exchange enables member banks to quickly and easily launch new payment technologies that enable u-commerce, such as mobile commerce, smart cards, business-to-business e-commerce, person-to-person e-commerce and electronic check conversions, with high levels of security, unmatched speed, 100 percent reliability and mass customization capabilities. Visa U.S.A. Direct Exchange also provides members and merchants with easier access to existing and future payment services.

“Our partnership will enable Visa U.S.A. to leverage eFORCE’s financial service industry experience, commitment to open systems, and integration skills to realize its aggressive business-to-business goals,” said Nat Natraj, chief executive officer at eFORCE.

About Visa U.S.A.

Visa is the world’s leading payment brand and largest payment system, enabling banks to provide their consumer and merchant customers with the best way to pay and be paid. More than 14,000 U.S. financial institutions rely on Visa’s processing system, VisaNet, to facilitate over $765 billion in annual transaction volume — including more than half of all Internet payments — with virtually 100 percent reliability. U.S. consumers carry more than 345 million Visa-branded smart, credit, commercial, stored value and check cards, accepted at approximately 21 million locations worldwide. Visa has long led the industry in developing payment standards, and has been named the most trusted payment brand online. Visa’s people, partnerships, brand and payment technology are helping to create universal commerce — the ability to safely conduct transactions anytime, anywhere and by any device.

About eFORCE

eFORCE, a leading provider of strategic solutions in all areas of the Enterprise Value Chain — eBusiness, eCRM, EAI, Corporate Portals and Business Intelligence — was identified by the IT analyst and research opinion leader, IDC (International Data Corporation), as one of the Top Solution Integrators of the 21st Century. Combining expertise in business architecture, technical architecture, design, deployment and maintenance with its uniquely rigorous, comprehensive eBRIDGE(TM) implementation methodology (eBusiness Rapid Implementation and Deployment for Global Enterprises), eFORCE delivers production-scale enterprise solutions in Internet time. eFORCE customers include Global 1000 organizations such as Alcatel, Avaya, Bank of America, Charles Schwab, Compaq, DHL, GE Capital, FedEx, Intel, The Hartford, Janus, Johnson Controls, Merrill Lynch, Mitsubishi Motors, Nortel Networks, Visa USA, and Wells Fargo. eFORCE delivers solutions based on best-in-class enabling technologies such as ATG, BEA, Epicentric, E.piphany, HP, IBM, Interwoven, iPlanet, Kana, Microsoft, Oracle, SeeBeyond, Siebel, Sun, TIBCO, Vignette, and webMethods. eFORCE ([www.eforceglobal.com][2]) is headquartered in Silicon Valley and has additional Centers of Excellence in North America, Europe and India.

[1]: /graphic/eforce/eforce.gif
[2]: http://www.eforceglobal.com/

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Reform Revived

Bankruptcy reform is alive and well, despite predictions that a Democratic takeover of the Senate would potentially kill the legislation. Senate Majority Leader Tom Daschle (D-S.D.) announced Friday he wants a conference committee between the Senate and House to resolve differences on the bankruptcy legislation. Daschle also is meeting this week with Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.) to review the assignment of conferees. Reportedly lobbyists representing the credit industry have been aggressively promoting the bankruptcy reform legislation since the recent shift of power in the Senate. The bankruptcy bill has been stalled because House Republican leaders could not decide on the makeup of the conference committee to handle the compromise between S. 420 and H.R. 333. The Republicans went so far as to urge House members to consider passing the Senate version. Among major differences to be resolved is the $125,000 cap on the home equity exemption and a provision to exclude legal judgements from abortion clinic violence. There is still a remote chance the reform bill could be killed in committee. However the legislation has been closely linked to campaign contributions to both parties by major providers of consumer credit. President Bush has already indicated he will sign the bankruptcy reform legislation, however it comes out of the Congress.

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Card Mail

Credit card solicitations continue to soar at a record pace as more than 4.0 billion direct mail pieces have hit mailboxes across the country over the past twelve months. However issuers continue to indicate that response rates have stagnated while online response rates grow. The surge in first quarter mailings even surpassed the fourth quarter mailings according to data tracked by BAIGlobal and reported by Thomson Financial Media. Compared to last year, 475.6 million more direct mail pieces went out in 1Q/01 compared to 1Q/00. For the first quarter 2001 BAI reported slightly more than 1.1 billion solicitations. Response rates for direct mail continues to hover at 0.6%. Online response rates have climbed to as high as 5%, but have been averaging around 3% this year on major personal financial web sites.

DIRECT MAIL CREDIT CARD OFFERS
PERIOD MAIL VOLUME RESPONSE RATES
1Q/01 1105.0m 0.6%
4Q/00 1030.8m 0.6%
3Q/00 888.0m 0.6%
2Q/00 991.8m 0.4%
1Q/00 629.4m 0.7%
4Q/99 510.2m 0.7%
3Q/99 710.3m 0.9%
m-millions Source: BAIGlobal, Inc.

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ValueStar

Oakland, CA-based ValueStar Corp. has signed another card services firm for its local merchant rating service. West Coast Merchant Services has agreed to enroll qualified merchants in the ‘ValueStar Customer-Rated’ program. The program drives ValueStar registered cardholders to participating merchants. Through the program, ValueStar rates the merchant based upon a verification of their license, insurance, state compliance, legal and financial statuses, and, if qualified, enrolls the merchant in the ‘ValueStar Customer-Rated’ program, which includes ‘Real-Time Ratings’. ValueStar then promotes these selected merchants to cardholders through a variety of media. First National Bank Omaha, the first card issuer to join the ValueStar program, launched the program in the San Francisco Bay Area last month. Sanwa Merchant Services and First Virginia Merchant Services also joined the ‘ValueStar Customer-Rated’ program in May. (CF Library 5/16/01; 5/30/01)

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ADS IPO

Dallas-based Alliance Data Systems began trading Friday on the NYSE, closing at $14 per share after opening at $12.50. The company filed its IPO in March 2000 and intended to offer 20 million shares in the price range of $14 to $16 per share. However market conditions forced the company to trim back its offer to 13 million shares priced at $12 per share. The $182 million raised involved Bear Stearns, Merrill Lynch and CS First Boston. ADS had $181 million in first quarter revenue, up from $165.5 million in 1Q/00. ADS is a provider of transaction services, credit services and marketing services, including one of the largest loyalty programs in Canada.

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Precis & Capella

Precis Smart Card Systems, Inc. announced that its annual shareholders meeting was held on June 8, 2001 at the Precis corporate offices in Norman, Oklahoma. All proposals before the shareholders were passed.

Among the matters that were approved by the shareholders was the merger with The Capella Group, Inc., a national healthcare solutions provider, with corporate offices in the Dallas/Fort Worth metro area.

The Capella Group, Inc., under the name Care Entree, markets a national healthcare membership program that provides its members with significant savings on physicians, hospitals, dentists, prescription drugs, vision care, hearing and chiropractic services. The program is targeted as an affordable solution to the over 120 million Americans who do not have health insurance or are underinsured due to high cost or pre-existing conditions. The Care Entree program is sold nationwide through an expanding network-marketing program. Sales in year 2000 exceeded $5.6 million — an increase of 337% over 1999 revenues.

The shareholders also approved the election of the board of directors, as well as the amendment of Precis’ Certificate of Incorporation to change its name to Precis, Inc.

Precis is a national membership marketing solutions company. Through its wholly owned subsidiary, Foresight, Inc., the company provides product enhancements in the form of club benefits to financial institutions, rental purchase dealers, consumer finance companies, retail outlets, employee groups and member-based associations. For more information on Precis, its subsidiaries Foresight, Inc., or Care Entree, visit [www.precis-scs.com][1], [www.foresightclub.com][2] and [www.careentree.com][3], respectively.

[1]: http://www.precis-scs.com/
[2]: http://www.foresightclub.com/
[3]: http://www.careentree.com/

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