China Southern Airlines, the largest airline in the People’s Republic of China, announced that it has partnered with The Bank of China,, to offer a special new “BOC Group Credit Card Superior Travel Awards Program.”

Effective immediately, Bank of China Group Credit Card members can earn one gift point for every HK $1 spent on their card.

The accumulated gift points may be converted to Sky Pearl Club mileage (eight gift points = 1 kilometer) for free flights and upgrades.

Additionally, Bank of China credit card members can “double dip” with this new program by earning mileage in The Sky Pearl Club regularly gained as a Club member.

For additional details, contact the Bank of China Credit Card Center at its 24-hour hotline in Hong Kong at (852) 2853-8828; via fax at (852) 2544-2988 or via standard post at 20/F, 68 Connaught Road West, BOC Credit Card Center, Hong Kong.

Named the Best Airline in China by SKYTRAX, China Southern Airlines, (Chinese) or (English), connects more than 80 cities around the globe.

Major business and vacation destinations served in China include Beijing, Chengdu, Guangzhou, Guilin, Hong Kong, Kunming, Shanghai, Shenzhen and Wuhan, as well as international service, including Amsterdam, Bangkok, Hanoi, Ho Chi Minh City, Kuala Lumpur, Jakarta, Los Angeles, Manila, Melbourne, Osaka, Penang, Phnom Penh, Seoul, Singapore and Sydney.



The Arab Bank — Egypt and Euronet Worldwide (NasdaqEEFT), a leading provider of secure electronic financial transaction solutions, announced that mobile banking services will be launched to the bank’s customers this month, featuring any-time, any-place access to customer account information and personalized alerts on account activity.

Arab Bank, the largest bank in the Arab region, with locations in more than 27 countries, has chosen Egypt as their first location to offer mobile banking. This solution has been deployed in conjunction with Euronet Worldwide and Click GSM, the Vodafone subsidiary in Egypt. Euronet Worldwide provides the comprehensive mobile banking software, which includes STK-based Account Access and a sophisticated event messaging solution that provides the customer with real-time alerts. Click GSM provides STK-based menus that the Arab Bank’s mobile banking subscribers can use to easily perform banking functions from their GSM telephones.

Arab Bank — Egypt is launching both STK-based Account Access and Event Messaging services. Account Access enables a customer to query their bank for account information, such as a balance or a ministatement, or to perform functions, such as an intra-bank transfer, even across different currencies. With Event Messaging, the bank communicates directly with the customer by sending account activity alerts, such as notification of deposit or of debit or credit card transactions. Additionally, the bank can send messages to clients, advertising new services or notifying them that cards are being delivered.

“We are thrilled to work with Euronet to implement Mobile Banking,” said Mr. Atef Sono, Arab Bank — Egypt Vice President, Management & Information System Manager. “Euronet’s quick-to-market solution enabled us to be one of the first banks in Egypt to provide mobile services to our customers. This distribution channel enhances our existing electronic touchpoints and helps differentiate us from our competitors. The professional, dependable and timely service is why we are discussing with Euronet Worldwide the roll out of such system in the rest of the Arab Bank branches all over the world.”

“The Arab Bank — Egypt is a great partner for a mobile banking project, because of their dedication to providing unique and progressive financial services to their customers,” said Michael Brown, Euronet Worldwide Chairman and CEO. “It helps us increase our electronic transactions volume across the Middle East. In addition, the proliferation of wireless devices provides the financial services industry one of the most exciting opportunities ever to really connect with their customers and provide them with real-time banking.”

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, including owning and operating 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

About The Arab Bank

The Arab Bank, which started operations in Jerusalem in 1930, is now a leading international financial institution with more than 378 branches worldwide, and has a consistent record of profitability and an unequalled reputation for prudence and reliability. Its growth has taken place against a background of continuing political change throughout the Middle East. The Arab Bank has been affected by almost all the crises and changes in the area while never allowing them to deter it from its chosen role in supporting the development of the economy of the Arab community.



INTACTA Technologies, Inc. announced this week the successful integration of its INTACTA.CODE software with a biometric security application from Imagis Technologies Inc. When combined with contactless cards provided by Smart Card Technologies the three companies demonstrated a very secure and non-intrusive means of access control.

By combining facial recognition, contactless smartcards and secure encryption, the technologies provide a totally secure and totally passive solution. For example, as part of a secure facility entrance, a photo is taken as part of an employee s security process and encoded using Imagis ID-2000 facial recognition, and then stored using the Intacta encryption methodology onto the specialized RFID SmartCard. When the employee subsequently walks into the building carrying the card anywhere on his person, he will pass by a reader at the entrance, which will read the ID from the SmartCard. This will trigger a video camera focused on the gate area to capture the facial image of the employee. The image will then be encoded in real-time and compared to the encoding of the individual stored in the database (or on the card). If it matches, the door will open. If not, the door will not open, and security personnel will be notified. “Using INTACTA.CODE for biometric encoding adds yet another layer of security and functionality,” said Noel Bambrough, CEO of Intacta technologies, Inc. “Working with partners such as Imagis and Smart Card bring a total, integrated solution to security customers.” About INTACTA.CODE Originally developed for military use, INTACTA.CODE software uses 256-factoral encoding to secure virtually any data from paper to mainframe. INTACTA.CODE not only secures information during transmission from backend systems to mobile computing devices such as PDAs or to PCs, but also continues to secure the information while it resides on any computing device. These security features solve the most vexing problems facing an enterprise considering the introduction or expanded use of mobile computing devices and applications, or for companies considering distribution of electronic information such as e-books or MP3 music files. In addition to its security features, INTACTA.CODE has robust error correction capability allowing it to transport and store data reliably in hostile environments.

The latest version of the INTACTA.CODE Enterprise Edition SDK supports C++, Java and Java Enterprise Beans, Visual Basic and WebSphere environments. A trial SDK for the Windows environment is available for developers at the Intacta web site, [][1] .

Applications Now Incorporating INTACTA.CODE

INTACTA.CODE Enterprise SDK is used by Intertek Testing Services (ITS), the world s largest import/export testing service, to encode and transmit custom s declaration documentation simultaneously in electronic and printed formats. INTACTA has developed prototype microbrowsers for Palm and Pocket PC OS devices, allowing completely secure, compressed wireless transmission of data to hand held devices as well as storage on these devices. These browsers now work seamlessly with the INTACTA.CODE SDK.

INTACTA has developed an INTACTA.CODE transcoder for IBM s WebSphere Pervasive Computing platform, enabling an estimated 10 thousand developers to create applications that will safely and securely transmit strongly encrypted and highly resilient data to handheld, wireless devices such as Palm Pilots and WAP Phones.

In February Fujitsu, LTD of Japan launched an online ASP service for the encoding/decoding of data using INTACTA.CODE engines. The service is used by publishers, developers and businesses seeking to transmit data securely over the Internet or through email or fax.

INTACTA.CODE is used to create digital files from paper based product registrations, streamlining the electronic registration of products for companies such as Hewlett-Packard.

About INTACTATM Technologies Inc.

INTACTA (OTCBB:ITAC) is a U.S. based software company headquartered in Atlanta, Georgia. The Company develops and markets software components designed to bridge enterprise communications and management information systems across digital and non-digital media. INTACTA licenses INTACTA.CODE as a SDK for seamless and transparent integration within any application or device. More information about INTACTA.CODE SDKs may be found at [][2]. About Imagis Technologies Imagis Technologies Inc., (OTCBB: IGSTF) is an independent software developer of biometric solutions. Its ID-2000 facial recognition technology is being used by international agencies in the justice and law enforcement market. ID-2000 forms the basis of some of the world’s largest criminal justice digital imaging systems. Imagis’ product suite includes the flagship criminal database application CABS, used by numerous law enforcement agencies. CABS provides an integrated view of data, arrest and booking information, evidence tracking and images, including faces. Imagis is currently expanding into new markets such as security, e-commerce and identity verification at high traffic locations including airports and casinos. Imagis markets its products through a global network of business partners. For more information visit Imagis at [][3].




The number of credit card solicitations mailed to Canadian consumers in the first quarter of 2001 hit a new high of 45.8 million, with the majority of mailings coming from U.S. monoline firms, according to Mail Monitor®, the direct mail acquisition tracking service from BAIGlobal Inc. The Tarrytown, N.Y.-based market research firm defines U.S. monolines as companies primarily in the business of issuing credit cards.

The tracking service, based on a nationally representative sample of 400 Canadian
households surveyed each month, found that 73 percent of the 45.8 million offers mailed to Canadian consumers in the first quarter of 2001 came from American monoline companies (see attached chart). BAIGlobal’s service, which has analyzed credit card acquisition trends in the U.S. since 1988, expanded to cover Canada in 2000.

“Traditionally, the Canadian credit card marketplace had been dominated by retail
banks,” said Andrew Davidson, vice president of competitive tracking services for BAIGlobal.
“Today, however, U.S. monoline companies are looking north and actively pursuing new Canadian card holders through the mail. U.S. monolines mailed the majority of new card offers in Canada during the fourth quarter of 2000 and continued the deluge into 2001.” Monoline companies in the U.S. include such firms as Bank One, MBNA, Capital One and Providian, among others.

Low Response Rates in Canada Mirror U.S. Trends

Despite the influx of new card offers, the low Canadian consumer response rate of 0.8
percent in the fourth quarter of 2000 was equal to that in the U.S., said Davidson. And the first quarter of 2001 wasn’t much better. Canada had a 0.9 percent response rate while the U.S. was at 0.7 percent.
“However, the low response rate in Canada may be due to different reasons than in the
U.S., where mailbox clutter is often a factor in low response,” added Davidson. In the final quarter of last year, Canadian households received 2.3 offers while their U.S. counterparts got 4.7 offers.

Rather than mailbox clutter, Davidson suggests a more likely reason for Canada’s low
response rate is the higher penetration of credit cards in Canada, where 89 percent of households already have a credit card compared to 76 percent in the U.S.
“The Canadian marketplace is more saturated than the U.S. at this point,” said Davidson.
“Credit card issuers don’t have to break through the clutter; they have to break through the
complacency. Marketers have to get Canadian households that already have credit cards to either apply for another card or trade up to a new card product.”

Credit Card Offers Are Pushing Platinum

In Canada the majority of credit card holders own classic bankcards, rather than Gold or
Platinum cards. Mail Monitor found that only 7% of Canadian households own a Platinum card compared to 28% of households in the U.S. “The U.S. monolines are attempting to exploit this situation by offering Canadians the opportunity to upgrade to Platinum,” said Davidson. This is substantiated by the fact that 69 percent of solicitations in Canada in the first quarter of 2001 were for Platinum cards, reported Mail Monitor.

“Overall, we expect that U.S. monolines will continue to dominate Canadian credit card
acquisition mailings well into the future,” concluded Davidson.

About BAIGlobal Inc.

Founded in 1969, BAIGlobal is a worldwide, full-service market research firm of over
100 employees. Mail Monitor®, which tracks credit card acquisition mail volume and response rates, is a service of the firm’s competitive tracking services division. Mail Monitor began tracking the U.S. credit card industry in 1988 and was launched in Canada in 2000.

BAIGlobal is an independently operating subsidiary of Market Facts, Inc. of Arlington
Heights, Ill. One of the top ten research firms in the U.S., Market Facts, Inc. is part of Aegis Group plc of London, UK.



U.S. Wireless Data, Inc. and National Processing Company, a leading provider of merchant credit card processing and a wholly owned subsidiary of National Processing, Inc., Wednesday announced a multi-year agreement in which USWD will provide Synapse wireless transaction products and services to NPC, enabling NPC to offer wireless card payment acceptance to its over 500,000 merchant customer base.

USWD’s Synapse services facilitate fast activation of wireless credit card terminals, and the routing and online reporting of wireless transactions. “USWD’s technology infrastructure is unique in the wireless industry,” stated Mike McEvoy, chief information officer for NPC. “This agreement ensures that our customers can enjoy the speed, mobility and savings that wireless provides.” “We are proud of NPC’s support of our service and technology,” stated Christopher O’Hara, president of USWD. “NPC’s continued growth and industry position is a testament to their commitment to superior customer service, innovation and operational excellence. I am confident that our relationship will help both companies continue to expand market share, while providing excellent value to retailers.”

![][1] 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) (, 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


U.S. Wireless Data, Inc. (, founded in 1991, markets Synapse(SM), its proprietary technology for wireless point of sale (POS) and ATM transactions. By providing a seamless interface among all parties including terminal manufacturers, wireless carriers, and payment processors, Synapse enables payment card and ATM transactions to be processed as extremely fast, without the cost and inconvenience of a telephone line. Synapse’s Internet-based tools offer on-line, real-time transaction monitoring, remote diagnostics and automated terminal activation. NXT, the company’s wholly owned subsidiary, provides landline transaction and data transport solutions to the transaction industry, and processes more than 500 million transactions each year. U.S. Wireless Data is headquartered in New York City and has research and development facilities in Palmer Lake, Colo., and Bethesda, Md.

[1]: /graphic/uswirelessdata/uswireless.gif



Royal Bank and its wholly owned subsidiary Ernex
Marketing Technologies are introducing a new program to Toronto, which awards
points and prizes to customers as they make their credit card purchases using
select Royal Bank Visa credit cards.

The program, known as “Ultimix,” is the first in North America to
instantly reward credit cardholders for purchases made across a network of
merchants. Cardholders can earn incremental points for repeat visits to the
same merchant thanks to unique technology offered by Ernex. When cardholders
use their Royal Bank Visa cards to make purchases from participating
merchants, they will also have a chance to instantly win prizes such as gift
certificates, dinners, and grand prize trips for two. More than 150 merchant
locations in British Columbia and the Greater Toronto Area are currently
enrolled in the program, which was successfully tested in the Greater
Vancouver area last fall.

The first to benefit from Ultimix instant rewards will be holders of
Royal Bank Gold Preferred, Platinum Preferred and AVION Visa credit cards. In
addition to winning prizes, these cardholders can double their Royal Rewards
or AVION points at all participating merchant locations until March 31, 2002.
During two promotional periods in the Spring and Fall (now to June 30 and
September 1 to November 30), cardholders will be able to earn up to five times
their regular points at select locations and also have the chance to win
prizes instantly at the point of sale.

“Our cardholders have been asking for more ways to earn rewards,” said
Andrew Mitchell, senior manager of loyalty programs in Cards Services at Royal
Bank. “Now with the Ultimix program we can deliver not just more points but
new promotional opportunities like instant win contests at the moment the
customer makes a purchase at a participating merchant. This is breakthrough
credit-card technology that is unprecedented in Canadian retailing.”
“Ernex’s real-time technology has the ability to offer rewards to
customers that are specific to individual merchants,” said Debbie Douez, vice
president of card programs at Ernex. “This flexibility offers merchants of all
sizes a cost-effective and innovative method of driving repeat business.”
(For a list of merchants participating in the program and more
information, visit

Ernex Marketing Technologies is a provider of innovative real-time
marketing solutions for merchants, bankcard issuers, large membership
organizations, and product manufacturers. Ernex’s solutions include loyalty
programs, stored-value gift card programs, and loyalty database hosting
services. For more information, contact Ernex at 877-GO-ERNEX or visit Ernex is a wholly owned subsidiary of Royal Bank of Canada.
Royal Bank of Canada (RY) is a diversified financial services company. It
provides personal and commercial banking, wealth management services,
insurance, corporate and investment banking, and transaction processing on a
global basis. The company employs more than 54,000 people who serve 10 million
personal, business and public sector customers in North America and in some 30
countries around the world. For more information, please visit


SIM Slide

Gemplus International said Wednesday results for its second quarter and fiscal year would be lower than previously expected due to a slowdown in GSM subscriber growth and inventory issues at operators. The operating loss for the quarter is expected to be the range of 10-15 million Euro. The company now expects revenue for the second quarter to be approximately 265 million Euro, which would be down 4% from the same quarter a year ago. For the full year, the company expects revenue to be 1,225 to 1,265 million Euro, or 2-5% growth from FY2000 levels with operating profit between 5 and 35 million Euro. Gemplus notes that all its businesses are doing extremely well except for the wireless segment of its Telecommunications division.



MasterCard indicated this week it plans to develop the unbanked rural sectors India by introducing electronic cards for farmers. The MasterCard Asia-Pacific region grew at a 38% annual rate last year. The move in India follows the successful launch of e-cash cards in the Philippines and Malaysia earlier this year. About 8.5% of the transactions in the rural region are conducted by cash. E-cash cards for kisans would be launched soon in collaboration with Public Sector Banks which has the network in rural India.


Project ACTION

Twenty-five organizations, including eight financial institutions, have joined Project ACTION, a program to develop a payment product for Internet transactions utilizing Automated Clearing House (ACH) credits. Project ACTION — ACH Credit Transactions Initiated Online — is an independent membership program within NACHA — The Electronic Payments Association.

“Interest in Project ACTION has been strong among financial services organizations,” said Elliott C. McEntee, President and Chief Executive Officer of NACHA. “Now is the time for other organizations interested in Project ACTION to get in on the ground floor.”

Members of Project ACTION include: Alabama ACH Association, Alltel Corporation, Bank One, BB&T Corporation, BCE Emergis, CheckFree Corporation, Citibank, Corillian Corp., Fidelity Investments, FirstWebBancorp, Fort Knox National Company, InteliData Technologies Corp., iBill, LML Payment Systems, Mid-America Payment Exchange, Network 1 Financial, Royal Bank of Canada, Southwest Corporate Federal Credit Union, T. RowePrice, U.S. Postal Service, VeriSign Inc., VeriStar Corporation, Wachovia Bank, and Wells Fargo Bank.

Under the ACTION payment model, a buyer (a consumer or business) would initiate a payment to a seller via its own financial institution, rather than authorizing the seller to debit its account. This feature enhances security of payments while reducing many of the risks. ACTION is envisioned to be used for consumer-to-business, business-to-business, and electronic bill payments initiated on the Internet.

“An advantage of the ACH Network is the ability to process credit payments, in which funds are pushed to sellers or other payment recipients,” said McEntee. “Currently, other payment methods require account information to be provided to sellers, that then attempt to authenticate the buyer and pull funds from buyers’ accounts.”

The next business meeting of Project ACTION members will be held on June 20-21 in Chicago. Members will develop the product design, technology requirements, and business plans, such as revenue models. Membership is open to all payments industry stakeholders. Membership dues will increase on July 1. For membership information, visit the Project ACTION web site at, or contact Julie Hedlund, Senior Director of Electronic Commerce, NACHA, at 703-561-3915 or

About NACHA — The Electronic Payments Association

NACHA is the leading organization in developing electronic solutions to improve the payments system. NACHA represents more than 12,000 financial institutions through direct memberships and a network of regional payments associations, and 650 organizations through its six industry councils. NACHA develops operating rules and business practices for the Automated Clearing House (ACH) Network and for electronic payments in the areas of Internet commerce, electronic bill payment and presentment (EBPP), financial electronic data interchange (EDI), international payments, electronic checks, and electronic benefits transfer (EBT). Visit NACHA on the Internet at .


New ACS Facility

Pennsylvania Gov. Tom Ridge Wednesday announced that Applied Card Systems Inc. will build a new 256,000-square-foot facility in Concord Township, Delaware County, creating at least 1,000 new jobs.

“Applied Card Systems had a decision to make about its future, and this rapidly growing company chose Pennsylvania,” Gov. Ridge said. “Like so many others, they’ve answered our invitation to come, invent the future in Pennsylvania, with an emphatic `Yes.’ That response will create at least 1,000 new jobs in Southeastern Pennsylvania.”

Inc. Magazine recently ranked Applied Card Systems as No. 42 on its list of the 500 fastest-growing, privately owned companies in the country. Founded in 1987, Applied Card employs more than 4,000 people at its headquarters in Wilmington, Delaware, and at four operation centers in Boca Raton, Florida; Huntington and Beckley, West Virginia; and Ashland, Kentucky. These centers employ workers in information technology, customer assistance, human resources, learning and development, and payment processing.

“We’re very excited about becoming a part of the New Pennsylvania,” said Tim Lehmann, President of Applied Card. “We’re a fast-growing company with our eyes on the future. Applied Card relies on quality people, and, in Pennsylvania, we have found a large and talented workforce that we know we can rely on. Gov. Ridge and his Action Team, along with the Delaware County Commerce Center, have worked hard to help us make Delaware County our newest location. And we have great expectations for our future in Pennsylvania.”

The Governor’s Action Team — economic-development professionals who report directly to Gov. Ridge — worked with Applied Card to make this project a reality. Gov. Ridge has agreed to provide a $4.75 million financial package — through an Opportunity Grant, Job Creation Tax Credits and an Infrastructure Development Program grant — to support the project. Applied Card will invest $30 million in construction and equipment.

Under the Ridge Administration, Pennsylvania families and employers have saved nearly $15 billion through tax cuts, workers’ compensation reform, electric deregulation and reduced red tape — helping to create nearly 500,000 new jobs.


Skimming Fraud

A new, and far more dangerous variant of credit card skimming has emerged which involves implanting sophisticated skimmer bugs into card payment terminals which has made all legacy terminals of the current installed base susceptible to this type of attack. Skimming fraud most often involves a cardholder turning over physical possession of his or her card to a merchant, who then swipes the card through a small, illegal card reader, called a “skimmer.” The skimmer copies the data encoded on the card’s magnetic stripe which is then used to manufacture counterfeit cards that are used to rack up illegal charges. Reportedly the average skimmed credit card will generate some $2,000 in fraudulent charges before being detected and costs the industry about $1 billion per year. This new form of terminal skimmer bugs is particularly insidious since it obliterates the ‘Common Point of Purchase’, which is used today by the card associations’ neural network software to pinpoint those merchants where most skimming originates. This morning, Hypercom called for the industry to combat skimming with mobile terminals that ensure cards never leaves the consumer’s possession and for stepped up progress in the migration to smart card based credit cards which are “skimming-proof”.


Ultimix Rewards

Canada’s Royal Bank is introducing a new program in Toronto that instantly rewards VISA credit cardholders for purchases made across a network of merchants. The ‘Ultimix’ program, developed by Ernex Marketing Technologies, also enables ‘Royal VISA’ cardholders to instantly win prizes such as gift certificates, dinners, and grand prize trips for two. More than 150 merchant locations in British Columbia and the Greater Toronto Area are currently enrolled in the program, which was successfully tested in the Greater Vancouver area last fall. In addition to winning prizes, cardholders of ‘Royal Bank Gold Preferred’, ‘Platinum Preferred’ and ‘AVION’ VISA credit cards will earn double points through Mar 2002. During two promotional periods in the Spring and Fall, cardholders will also be able to earn up to five times their regular points at select locations. (CF Library 9/1/00)