P-Card Study

A study conducted by a team of academic researchers has projected that purchasing card spending will double over the next two years, elevating the p-card market size from approximately $40 billion to $80 billion. The bulk of the projected spending increases will be driven by traditional purchasing card acquisitions of maintenance, repair, and operating items, computer equipment, and office supplies. However, significant percentage increases are expected in non-traditional card purchases of direct materials inventory, capital goods, and temporary services. The study found that the average savings per purchase transaction with the use of purchase card relative to a traditional purchase order is about $68. Many organizations also reported over 40% reduction in the MRO supplier base and over 80% reduction in the number of petty cash accounts with the use of purchasing cards. The study was conducted by Richard Palmer from Eastern Illinois University, Mahendra Gupta from Washington University, and Antonio Davila from Stanford University.



In a move designed to give its member financial institutions a strategic
advantage, MasterCard International announced that it has made it possible for
its members to issue MasterCard-, Maestro-, and Cirrus-branded smart cards on
the JavaCard platform. With this move, MasterCard is actively supporting
MULTOS, JavaCard and all major proprietary platforms. In addition, MasterCard
is prepared to support Microsoft’s Windows Powered Smart Cards, based on
demand. Today’s announcement represents a key success for MasterCard’s smart
card program, a comprehensive, global solution for moving today’s magnetic
stripe payment cards to chip technology.
By delivering its flagship M/Chip(TM) family of credit/debit applications on
all platforms, MasterCard is responding to the growing desire of its
members to
have maximum flexibility when initiating smart card programs of their own.
“MasterCard actively supports all smart card platforms, freeing our members to
focus on business issues, rather than technology issues when making decisions
regarding their payment programs,” said Art Kranzley, senior vice president,
Global e-Business, MasterCard International. “We understand that some members
want flexibility when it comes to the smart-card platform. We invite other
major players in the global payments industry to join us in our decision to
actively support all technology platform choices available today.”
At the same time, MasterCard continues to stress its strong support for the
MULTOS platform, which remains the company’s preferred operating system for
multiapplication smart cards. “We remain 100% committed to MULTOS as
MasterCard’s preferred smart card operating system because it represents a
totally open, cost-effective, highly secure solution for multiapplication
cards,” said Kranzley. “In fact, today, MULTOS is more open than ever. New
members are joining the MULTOS consortium, pricing has been greatly
and a new policy allows card issuers to build their own facility (i.e., a
Certificate Authority) to authorize application loading and deletion. These
changes respond directly to our members’ business needs.”
Today’s news also reflects growing demand for MasterCard’s M/Chip credit/debit
applications, which in a single software package allows banks to issue
EMV-compliant MasterCard(R)-, Maestro(R)-, and Cirrus(R)-branded smart cards.
To date, M/Chip has been adopted in 24 countries, on 4 continents, and
MasterCard has commitments from members in another 20 countries.
In addition to MULTOS, M/Chip has already been placed on proprietary platforms
from Bull, Giesecke & Devrient (G&D), Gemplus, Oberthur, and Schlumberger.
MasterCard, working with Gemplus, Oberthur and Schlumberger, now offers M/Chip
on JavaCard. In addition, MasterCard has completed the preliminary analysis to
have M/Chip reside on the Windows Powered Smart Cards platform and has applied
for an application developer’s license from Microsoft. M/Chip will be made
available on the Windows Powered Smart Card Platform, pending final security
review and member demand for such services.

“We are pleased with the growth of smart cards around the world,” said Adam
Gluck, vice president of M/Chip product management, MasterCard International.
“Five years ago, there was little interest in payments on smart cards. Today,
the EMV standard is taking off. Now that M/Chip is available on MULTOS,
JavaCard, and a significant number of proprietary operating systems, the
industry is poised for explosive growth.”

MasterCard’s current platform strategy can be summarized as follows

MULTOS – The MULTOS platform remains MasterCard’s preferred operating system
for multiapplication smart cards. MULTOS is the most robust, flexible and
secure smart card platform in the market today. It is the only operating
for smart cards to have been certified with the prestigious ITSEC Level E6
security rating, the highest available. MULTOS is a totally open platform,
which enables a number of different, independently functioning services to be
held on a single card simultaneously. To date, more than 6 million smart cards
have been issued on the MULTOS platform, and more than 75 issuers are now
committed to issuing 20 million additional MULTOS smart cards. More than 70
companies currently supply MULTOS-related products and services.
Control of the MULTOS specification is contractually vested with the
members of
the MULTOS Consortium, consisting of 13 of the industry’s leading suppliers
card associations, who are working to drive the adoption of MULTOS as an open
industry standard for smart cards across all business sectors.
JavaCard – MasterCard has worked with Gemplus, Oberthur and Schlumberger to
port the M/Chip Lite credit/debit application to the JavaCard platform, which
has received broad industry support worldwide. The applications are available
now and allow MasterCard members to issue MasterCard(R), Maestro(R) or
Cirrus(R) cards on the JavaCard platform.
Windows Powered Smart Cards – MasterCard has applied for an application
developer’s license to be ready to place M/Chip on Microsoft’s Windows for
Smart Cards platform, pending final security review and member request for

Proprietary Platforms – MasterCard has worked with members to place M/Chip
on a
variety of proprietary platforms from Bull, G&D, Gemplus, Oberthur, and

MasterCard International is a leader in global e-business. The association is
focused on providing its member financial institutions with customized,
meaningful global e-business solutions that connect them to customers in both
the online and offline worlds. Through its investment in industry innovation,
participation in standards development and business alliances, MasterCard is
staying in the forefront of technology integration to enable anytime, anywhere
payments across multiple channels and various devices. MasterCard’s global
e-business solutions include Internet security, smart cards, mobile
commerce/wireless, e-wallets, business to business electronic commerce, and
numerous emerging technologies.

About MasterCard International

MasterCard International has the most comprehensive portfolio of payment
in the world. More than 1.7 billion MasterCard(R), Cirrus(R) and Maestro(R)
logos are present on credit, charge and debit cards in circulation today. An
association comprised of more than 20,000 member financial institutions,
MasterCard serves consumers and businesses, both large and small, in 210
countries and territories. MasterCard is the leader in quality and innovation,
offering a wide range of payment solutions in the virtual and traditional
worlds. MasterCard’s award-winning Priceless(R) advertising campaign is now
seen in 81 countries and in more than 36 languages, giving the MasterCard
reach and scope unrivaled by any competitor in the industry. With more than 21
million acceptance locations, no card is accepted in more places and by more
merchants than the MasterCard Card. In 2000, gross dollar volume exceeded
US$857 billion. MasterCard can be reached through its World Wide Web site at


ECC for Smart Cards

First Data Corp., a leader in electronic commerce and payment services, and Certicom,, a leading provider of mobile e-business security, announced a strategic licensing agreement. First Data licensed Certicom’s leading elliptic curve cryptography and plans to incorporate the highly efficient technology in a number of areas including smart cards.

Certicom’s ECC technology is ideally suited for securing the new generation of small devices that are limited by low processing speed, network bandwidth, and battery power. Using ECC, digital signatures can be performed on small devices such as smart cards without the additional cost of a cryptographic co-processor found with other systems. The small key sizes and short signature lengths provided with ECC can lead to significant reduction in data storage required to support processing large volumes of transactions.

![][1] “There is an ever-increasing need for strong and efficient tools to protect consumer privacy and insure the integrity of financial transactions,” said Gene Kathol, vice president for First Data Corp. “Our selection of Certicom and their strong cryptographic tools further enables application of digital signatures and encryption into our products to help us continue to provide secure and efficient products for our customers.”

“Certicom has been collaborating with First Data on digital signature technology for years, beginning with our mutual involvement in financial industry standards,” said Richard Depew, executive vice president of Certicom. “We are very pleased to take this important step with First Data towards enabling the market with efficient signature systems that meet the business case for wide scale deployment.”

About First Data Corp.

First Data Corp. (NYSE: FDC), with global headquarters in Denver, powers the global economy. As the leader in electronic commerce and payment services, First Data serves approximately 2.5 million merchant locations, 1,400 card issuers and millions of consumers, making it easier, faster and more secure for people and businesses to buy goods and services using virtually any form of payment. With more than 27,000 employees worldwide, the company provides credit, debit, smart card and stored-value card issuing and merchant transaction processing services; Internet commerce solutions; Western Union(R) money transfers and money orders; and check processing and verification services throughout the United States, United Kingdom, Australia, Canada, Mexico, Spain and Germany. Its money transfer agent network includes approximately 104,000 locations in more than 186 countries and territories. For more information, please visit the company’s Web site at [www.firstdata.com][2].

About Certicom

Certicom is a leading provider of information security software and services, specializing in solutions for mobile e-business. The company’s products and services are specifically designed to address the challenges imposed by a wireless data environment. Certicom’s solutions incorporate its efficient encryption technology and are based on industry standards for information security that utilize public key cryptography. Certicom’s products are currently licensed to more than 150 customers including Cisco Systems, Inc., Handspring Inc., Motorola, Inc., Nortel Networks, Openwave Systems, Inc., Palm, Inc., QUALCOMM, Inc., Research In Motion Ltd. and Sony International (Europe) GmbH. Certicom’s headquarters and worldwide sales and marketing operations are based in the Silicon Valley in Hayward. For more information, visit Certicom’s Web site at [http://www.certicom.com][3].

[1]: /graphic/certicom/certicom.gif
[2]: http://www.firstdata.com/
[3]: http://www.certicom.com/



With debit card payments having recently surpassed cash as Canadians’ favorite
way to pay for purchases, CIBC has become the first bank in Canada to offer
their banking card holders an enhanced level of fraud detection with PRISM(R)
risk management software from ACI Worldwide, a leading international provider
of enterprise e-payment solutions.
PRISM proactively monitors bank machine and point-of sale debit card
transactions to detect suspicious activity. CIBC has integrated PRISM with its
BASE24 authorization software from ACI, providing a cost-effective means to
monitor debit card-based transactions in near real-time for fraud as those
transactions are processed for approval.

“Ninety per cent of adult Canadians have a banking card, and the number of ABM
and Interac Direct Payment transactions surpassed 3.5 billion in 2000,” said
Jude Pinto, vice-president and chief administrative officer, direct to
group, CIBC. “While the incidence of debit card-based fraud at CIBC is still
very small compared to overall transaction volumes, it has affected many of
customers, and CIBC is committed to being a leader in providing improved
security through the early detection of banking card fraud.”
PRISM’s strength lies in its neural network technology that identifies subtle
patterns of suspicious or unusual behavior by comparing individual card usage
with known patterns of fraud. Activity that matches suspicious patterns is
automatically queued for review by CIBC’s analysts. PRISM streamlines the
monitoring process, allowing CIBC staff to quickly investigate and respond to
suspect activity, including contacting customers to verify deposits,
withdrawals or banking card requests.

A simple example of how PRISM can detect a fraudulent transaction might
multiple cash withdrawals coming from Vancouver and, minutes later, a cash
withdrawal in Toronto on an account with only one active banking card. Once
PRISM has flagged this transaction, the bank’s analyst would see that
transactions are being done simultaneously in two different regions of the
country and realize that a counterfeit card has likely been produced. CIBC
would contact the legitimate customer and act to minimize the inconvenience to
the customer and minimize the bank’s potential loss.
“CIBC is a long-time ACI customer, and we are proud they’ve enlisted us to
expand their fraud-fighting efforts,” said Mark Vipond, president of ACI
Worldwide. “In the hands of CIBC’s skilled investigators, PRISM will
provide an
effective tool in the bank’s efforts to protect its card holders and fight
Pinto added, “Combating banking card fraud is shared responsibility between
CIBC and our customers, and this initiative will help reassure the growing
number of customers relying on e-payment transactions that we are serious
offering the best level of protection we can. The customers we have contacted
in our investigations are highly appreciative of the proactive measures we
taken to provide them with greater comfort and security in the use of their
banking cards.”

About CIBC

CIBC is a leading North American financial institution offering more than
million personal banking and business customers a full range of products and
services through its comprehensive electronic banking network, branches and
offices across Canada, in the United States and around the world. CIBC is a
leader in electronic banking, with more than 3.5 million e-banking customers
banking by Telephone, Bank Machines and the Internet. CIBC’s innovative use of
technology to provide its customers with industry leading protection for
electronic banking also includes offering customers digital signatures to
instantly confirm authorization of online applications made for CIBC products
and services. To find other news releases and information about CIBC, visit
Media Centre at www.cibc.com.

About ACI Worldwide

Every second of every day, consumers are initiating electronic payment
transactions–getting cash at ATMs, using debit and credit cards to make
purchases in stores and on the Internet, banking by phone and PC, paying bills
online. Twenty billion times a year, ACI software is used to process these
transactions, powering the world’s online payment systems. ACI was founded in
1975 and pioneered the development of applications and networking software for
online transaction processing. Today more than 2,000 customers in 78 countries
use ACI supplied software. Visit ACI Worldwide on the Internet at


CardBASE Update

CardBASE Technologies Inc, a leading provider of smart card solutions for secure e-commerce, announced the expansion and relocation of its US operations. The Company’s new office located in Sherman Oaks, California, provides sales and support services to CardBASE’s customers throughout the United States, including a recently signed Licence Agreement with Wells Fargo & Company, for the implementation of ChipCERT – CardBASE’s smart card management solution for PKI.

Recent appointments as part of CardBASE’s plans for expansion in the USA include Mr Jerry Homeyer, Vice President Sales, Mr Lee Larimore, Vice President Sales and Mr Eric Peng, Pre-Sales Technical Support Consultant.

Peter Omelia, Director of US Operations for CardBASE said, “The expansion of our team and the implementation of ChipCERT at Wells Fargo is an important milestone in the development of our operations in the United States. The adoption of smart cards for secure on-line authentication within large corporations is projected to grow from around 3% in 2001 to over 20% by 2003. Working with Wells Fargo further endorses CardBASE’s position as one of the leading providers of Smart Card Management Systems in this expanding market.”



Proton World and The Brodia Group
announced that they had signed an agreement, under which they will work
together to develop smart card capability in Brodia’s e-wallet, leveraging the
leading technology and expertise of both companies.
Brodia is a global leader in deploying a commerce platform technology that
enables authenticated transactions on any mobile or network-connected device.
Proton World is a leading multi-application smart card technology and
application provider with mass implementations worldwide. Proton World has a
proven track record in high-end smart card security solutions. Integrating
companies’ offerings and technologies will strengthen the value proposition to
financial institutions, and will make new opportunities available for
e-services and payments.
The first step in the co-operation is the development of secure, PKI-based
cardholder authentication for access to the Brodia e-Wallet services.
The two companies will then go on to jointly develop a range of products and
services that leverage the particular strengths of both the Proton Prisma
multi-application smart card range of products and the Brodia server-based
wallet solution.

Brodia and Proton World have already defined a number of new applications that
will be jointly-explored in the near future. Some of the first services to be
jointly- delivered will be authentication, digital signatures, debit/credit
payment and storage of user profiles and other data. Proton Prisma smart cards
will be used as secure keys to access the Brodia wallet and to authorize

Other opportunities for both companies include incremental Internet
micro-payments, transaction storage, form-filling and loyalty applications.
smart card – wallet combination has great synergy it can bridge the gap
between the Internet world and the physical world. This allows a smooth
roll-out of payment and loyalty programmes covering traditional point-of-sale
e-commerce and m-commerce, which integrate them all into one single commerce

These solutions will use Proton Prisma, a range of products based on a new
technology release earlier this year, designed for secure and flexible
multi-application smart card programmes. Proton Prismaretains and re-inforces
the open architecture and state-of-the-art, end-to-end security that has
contributed to the success of the Proton technology, while also offering
compliance with the leading international smart card standards. At the core of
Proton Prisma is CALC (Card & Application Life-Cycle manager), a spearhead
implementation of the forthcoming Open Platform 2.1. specifications.
Brodia’s Personal Commerce Manager™ (PCM) Digital Wallet is used today by a
large customer base. It is a powerful tool for acquiring, activating, cross

selling and retaining customers. By providing a simple, convenient way for
users to log in and fill forms at any web site, the Digital Wallet prevents
problem of cart abandonment before purchase completion. The brandable wallet
follows customers across the Web and reassures them that they are dealing with
an established company they already know.

The Brodia Commerce Platform’s core Identity Management System (IDMS)
technology enables the secure storage and access of personal and payment
information and preferences by trusted third-party partners for use in
executing any type of transaction, simply and securely.
Adrian Di Fede, Vice-President Products & Innovations at Proton World, said
“The Brodia Digital Wallet offers strong network-based payment and commerce
solutions, which complements our world- leading technology for smart card
payments and commerce. Furthermore, both organisations share the same vision
for the smart card / e-wallet market. Together, we can create a new dimension
in the customer fulfilment of financial services and security”
Ron Martinez, CEO of Brodia, said “As the provider of customizable,
comprehensive digital commerce services to more banks and credit card issuers
than any other eBusiness platform, we want to provide our financial
customers with an opportunity to integrate the best of smart card and digital
wallet technologies into a seamless application for their customers.”


Cheaper Smart Cards

VISA is expanding its low cost smart card program with the addition of two new products developed in conjunction with Philips Semiconductors. The new smart cards can support a range of payment and non-payment applications. Both products provide hardware-supported public key capabilities. The product based on the Philips ‘MIFARE PROX’ dual interface range allows both contact and contactless applications. The new products follow the introduction last October of a multi-application VISA smart card costing less than three dollars. The price of the new cards will be $3.56 and, for the dual interface card, $4.67. The typical cost of a card supporting public key capabilities is US$7.00. Two card manufacturers have already agreed to produce the new cards, Giesecke & Devrient and Orga. Five card vendors offer smart cards under three dollars including G&D, Orga, Dai Nippon, Oberthur, and Schlumberger. The new $3.56 smart card will be available in July while the $4.67 dual interface card will be available later in the year.



ON Technology announces a contract win with Providian National Bank.
will be
using ON Command CCM, the leading solution for remotely managing and
configuring software, across 600 desktops located at the bank’s customer
service center in Crawley, United Kingdom.

Providian Financial is one of the largest issuers of bank cards in the
United States today, with over $32 billion in assets under management and over
17 million loyal customers. Providian recently entered the UK market, and is
currently one of the fastest growing credit banks in the country.
Providian is initially implementing ON Command CCM to manage the rollout
of core desktop applications such as Internet Explorer, Windows Excel and
virus protection software. ON Command CCM will also be used when changing
network configurations and carrying out emergency re-builds. Providian is
planning to roll out Windows 2000 using ON later on this year. Providian
chose ON Technology in order to allow its internal IT staff to concentrate on
skilled activities. ON Command CCM eliminates the need for an IT technician
to physically visit every desktop.

Chris Risebrow, IT Operations Manager, Providian says, “Using ON Command
CCM will allow us to remotely manage all our desktops and maintain a level of
technological consistency across the company. The nature of a call center
means that consistency is vital in achieving customer satisfaction and ON
Command will prove to be an essential tool during our growth here in the UK.”
The system will be running on Compaq NT servers managing NT desktops at
Providian. ON Command CCM allows IT technicians to remotely wake up PC’s and
then install and configure any 32-bit windows operating system (e.g. Windows
2000, Windows 95, Windows 98 and Windows NT) and application (e.g. Office
2000, Internet Explorer or SAP R/3) without sending technicians to every
remote PC, ensuring reduction in TCO (total cost of ownership).

Robert Drew, UK country manager for ON Technology said, “We are delighted
to be working with Providian National Bank here in the UK. We look forward to
providing all the remote system support it needs as the organization expands
further in the financial market. ON Command CCM shows companies that
deploying software does not have to be a long and costly process and gives an
organization the consistency it needs across the enterprise.”

About Providian

San Francisco-based Providian Financial (http//www.providian.com) is a
provider of lending and deposit products to customers throughout the U.S. and
offers credit cards in the UK and Argentina. Providian Financial was named
one of America’s Most Admired Companies in a survey by Fortune magazine, one
of the nation’s top financial institutions by US Banker magazine, and one of
the most technologically innovative companies by InformationWeek magazine.
The Company has more than $32 billion in assets under management and over
17 million customers.

About ON Technology Corporation

ON Technology empowers IT organizations and service providers to rapidly
deliver business-critical software to a range of remote computing devices
including desktops, mobile PCs, handhelds and servers. The company’s flagship
product, ON Command CCM(TM), has been judged by analysts, product reviewers,
enterprise IT customers and service providers as the industry’s best solution
for remote software delivery and management. ON Command CCM is currently
being used to deliver software to over 500,000 corporate computing devices
worldwide in over 500 leading Global 2000 corporations such as WorldCom,
Deutsche Telekom and Goodyear Tire & Rubber. Application Service Providers
(ASPs) and Management Service Providers (MSPs) are also using ON Command CCM
to deliver high-value outsourced IT services more quickly and cost-effectively
while expediting their clients’ technology upgrades. For more information,
visit ON Technology’s web site at http//www.on.com or call 800-767-6638.


Generation 2E Module

Datacard Group introduced a faster and more robust smart card personalization module for its family of high-volume card issuance systems.

The new Datacard Generation 2E smart card module features a faster system processor, direct Ethernet connection for fast communication with network-based cryptographic processors and a direct connection for a Datacard Smart Card Personalization Manager. It also supports 115K baud communications for faster card loading and personalization.

“Multi-application smart cards present card issuers with new challenges. They need more speed, more flexibility and more personalization power,” said Bob Beer, vice president of smart card solutions for Datacard. “This new Generation 2E smart card module gives them what they need.

“While it’s a new module in terms of power and speed, it’s really a proven, production-tested system,” Beer said. “We’ve shipped more than 700 smart card modules into worldwide markets. The productivity and reliability of our basic module design has been proven in some very demanding production environments.” The module can be integrated with the Datacard 9000, 7000 and 500 systems — the world’s best-selling line of high-volume card issuance systems. Existing Datacard smart card modules can also be easily field-upgraded to Generation 2E capabilities.

“The Generation 2E is part of our complete solution for issuing multi-application smart cards,” Beer said. “We can provide our customers with an end-to-end solution for issuing and managing multi-application smart cards. Clearly, this high-speed module is an important piece of that larger solution.”

Beer said he expects the new module will be used for a variety of applications, including the issuance of cards for financial, telecom, retail, loyalty, transportation, government and education applications. Datacard Group provides financial institutions, corporations, consumer marketers, governments, schools, healthcare providers, service bureaus and other enterprises with the software, systems and professional services they need to build successful card programs. The company’s solutions portfolio includes the world’s best-selling smart card software, card issuance systems, smart card life cycle management system and a complete line of digital identity systems. Consultative services include a smart card chip security laboratory that works with the world’s leading smart card issuers. DataCard Corporation, doing business as Datacard Group, is privately held and based in Minnetonka, Minn. Datacard Group serves customers in more than 200 countries.


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



Two new low cost smart card products have been developed by Visa
in conjunction with Philips Semiconductors, as part of a major program to
Visa member banks a family of low cost multi-application smart cards.

The new smart cards, which are based on Philips Semiconductors 8-bit WE and
MIFARE® PROX smart card controller families, can support a range of payment
non-payment applications. Both products provide hardware-supported public key
capabilities resulting in enhanced off-line authentication. The product based
on the MIFARE® PROX dual interface range allows both contact and contactless
applications. These include Visa payment, secure network, and transit (bus or
train ticketing) applications.

The new products follow the introduction last October of a multi-application
Visa smart card costing less than three dollars. The price of the new cards
will be US$3.56 and, for the dual interface card, US$4.67. The typical cost of
a card supporting public key capabilities is US$7.00.

Two card manufacturers have already agreed to produce the new cards,
Giesecke &
Devrient (G&D) and Orga. In total, five card vendors have joined Visa’s low
cost card program and are offering smart cards at under three dollars. In
addition to G&D and Orga, these include Dai Nippon, Oberthur Card Systems, and
Schlumberger. These manufacturers offer the cards to Visa member banks using
Philips Semiconductors’ highly advanced chip solutions. Other manufacturers
currently negotiating with Visa to join the program.

The family of new smart cards is based on the Java Card™ 2.1 and the Open
Platform 2.0.1’ specifications. The US$3.56 card includes a minimum of two
applications, such as Visa Smart Credit/Debit and another application, loaded
to the read-only memory (ROM) with additional space for multiple applications
in the erasable memory (EEPROM). Memory size is 64k ROM and 16k EEPROM.

The US$4.67 price of the MIFARE® PROX based dual interface card, which has 64k
ROM and 16K EEPROM, also includes at least two applications loaded to ROM and
free memory space in EEPROM. The card offers the contactless MIFARE® interface
allowing fast and convenient card transactions in contactless mode, as
in transit applications. No comparable product with the same capacity
exists for dual interface cards.

Card issuers can decide what applications they may like to offer, such as
loyalty or secure Internet access, depending upon market needs. The Open
Platform specifications enable applications to be added or removed after the
card has been issued or during card production or personalization.

James Lee, senior vice president, Emerging Technologies, Visa International,
said “We are seeing growing demand for these new low cost card products from
our member banks worldwide. We have already received large production quantity
orders for the low cost card product announced last October. In addition,
is commitment for over four million dual interface cards from banks in Asia
Pacific and strong interest in Latin America.”

Dr. Reinhard Kalla, general manager of the Business Line Chip Cards at Philips
Semiconductors, said “We highly appreciate Visa’s commitment to bringing new
technologies to its member banks, increasing customer security and promoting
ease of use of advanced services. Philips Semiconductors has been spearheading
the evolution of smart card technology, as evidenced by our early
commitment to
on-card security and to contactless technologies, and we welcome the
opportunity to demonstrate our innovations in the marketplace. Our technology
strategy has always been driven by the needs of card scheme operators in
developing value-added services for their users, and we look forward to
with Visa and its partners in rolling out high-performance cards around the

The new $3.56 smart card will be available from July 2001 while the $4.67 dual
interface card will be available later in the year.


Arcot Supports VISA PAS

Arcot Systems, Inc., a provider of solutions for securing e-business in Internet-scale, transactional and wireless environments, announced that it has been named by Visa U.S.A., as one of the vendors supporting Visa’s Payer Authentication Service, based on the 3-D Secure Interoperability Standard. The Visa Payer Authentication Service, part of Visa’s Secure Commerce Program, is designed to reduce the risk of unauthorized use of a cardholder account and make Internet shopping better and safer for both buyers and sellers on the Web. The service enables card issuers to verify a cardholders’ identity through the use of a password and provides results to the merchant in real time during the virtual checkout process. This reduces the merchant’s exposure to fraud and frivolous disputes.

The Arcot solution is based on its TransFort product, which enables card-issuing banks to confirm the cardholder’s identity to an online merchant during the virtual checkout process in both a traditional PC shopping environment as well as a WAP-enabled mobile phone. “We are thrilled to have the opportunity to play an integral role in Visa’s 3-D Secure payment initiative,” said Chet Silvestri, CEO and president of Arcot Systems. “The Arcot relationship with Visa supports our approach to transaction authentication using TransFort. We are actively engaged with Visa banks in order to help them rapidly deploy 3-D Secure to meet the demands of online merchants and consumers.”

“Arcot’s infrastructure solution provides Visa’s Member banks in the U.S. with an effective option to implement the Visa Payer Authentication Service,” said Kevin Weller, senior vice president of Technology at e-Visa, a division of Visa U.S.A. “Working in collaboration with our technology partners, Visa will continue delivering new services to banks and merchants to make online shopping more secure.”

Real-time Transaction Authentication

Arcot provides support for Visa’s Payer Authentication Service with an infrastructure solution that is based on Arcot’s commercially available TransFort product. When a customer enters their Visa card information in an online checkout form and hits the “buy” button, the bank that issued the Visa card is automatically alerted. The issuing bank then requests that the customers authenticate themselves through a daughter window that appears on the customer’s screen. The customer enters a password, or other means of authentication, and the bank then validates the transaction. The Visa Payer Authentication Service offers dramatic benefits to the customer and merchant with almost no alteration of the current online purchase process:

Customer – the entire authentication transaction takes only a matter of seconds and the process is identical to a typical online purchase with one simple additional authentication step in the process – entering a password. It adds another layer of security to alleviate consumers’ fear of online fraud and provides additional protection from fraudulent use of their Visa cards.

Merchant – the process is identical to current online purchases with the addition of a small plug-in module that sits behind the “BUY” button. The plug-in module contains the logic to interface and interact with the Visa 3-D Secure infrastructure. The system will dramatically reduce the merchant’s exposure to online credit card fraud.

About Arcot TransFort

Arcot TransFort strongly authenticates and digitally signs transactions in real-time, providing for the secure, non-repudiation of online payments. Scalable to hundreds of millions of transactions, Arcot TransFort(TM) allows companies to grow the volume and value of their online transactions and provide their customers with an added level of confidence and security in the business relationship. Arcot TransFort is a multi-platform solution capable of authenticating transactions across Web, Virtual Private Network (VPN), and wireless environments. In addition, Arcot TransFort(TM) can comply with a variety of business rules or procedures that govern online payments and support multiple authentication methods including standard X.509 Digital Certificates, Smart Cards (or “Chip Cards”), and Pass-code.

About Arcot

Arcot Systems, Inc., is the leading provider of authentication and access control solutions for securing e-business in Internet-scale, transactional and wireless environments. Only Arcot provides cost-effective, scalable, software-based solutions for strongly authenticating users and transactions and managing access for payment systems, B2B extranets, Web portals and virtual private networks. Arcot solutions meet the business need for strong transactional security while providing the customer a user-friendly experience with anytime, anywhere convenience. Leaders in financial services, healthcare, and e-commerce are using Arcot solutions to protect their customers’ privacy and reduce fraud. For more information, visit [www.arcot.com][1].

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



Western Union Financial Services,
Inc, a subsidiary of First Data Corp. announced the launch
of Western Union Money Transfer services to Yugoslavia. For the first
time, Serbian emigres throughout the world will be able to send money home to
loved ones using Western Union’s safe, rapid and reliable services. By the
end of 2001, more than 300 agent locations in Serbia and Montenegro will be
equipped to receive and pay out money transfer transactions.

The recent election of President Vojislav Kostunica signaled the end of
U.S. sanctions in Yugoslavia and made possible Western Union’s entrance into
this emerging market. Since that time, demand for money transfer services,
from Serbians living outside Yugoslavia, has continued to increase
dramatically. Western Union’s swift entry into Yugoslavia makes it one of the
first American companies to do business in the economically devastated

“Serbians currently living and working outside of Yugoslavia are looking
for ways to improve the lives of their friends and relatives in need and to
help rebuild our country,” said Father Majstorovic, Dean of the Saint Sava’s
Serbian Orthodox Cathedral in Manhattan. “Through the Western Union Money
Transfer service, they will now be able to send money to their loved ones
quickly and safely. This will not only help families in need, but I believe
it will also greatly stimulate small business growth and influx of much needed
capital to Yugoslavia.”

Under the terms of the three year contract, Western Union will provide
money transfer services through its agent, EKI Transfer and through several
Yugoslavian banks, acting as EKI Transfer subagents, including Jugobanka,
Bojvodjanska and Atlas Bank. Western Union plans to expand its agent
locations to include other banks and institutions throughout the country. As
the service is launched, money transfer services will be immediately available
in 30 locations, in several cities, throughout Serbia and Montenegro. Funds
may be received in Deutsche marks, dinars and, in selected locations, U.S.

“It has been estimated that more than three million Serbians are currently
living outside of their country. While these expatriates have become proud
members of their new communities, they remain very loyal to their families
back home and seek the safest most reliable means of sending them money,” says
Alan Silberstein, president and CEO, Western Union Financial Services.
“Western Union is the first commercial money transfer provider to offer a
service Serbians can rely on to meet the needs of their communities.”

Western Union Financial Services, Inc. is a worldwide leader in consumer
money transfer services. Consumers can quickly, safely and reliably transfer
money at approximately 104,000 agent locations in more than 185 countries and
territories using the Western Union and Orlandi Valuta money transfer
networks. 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. powers the global economy. Serving nearly 2.5 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,
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