Access 32K Card

Schlumberger Test & Transactions, a business segment of Schlumberger Limited, introduced a new generation of its industry leading Cyberflex Access JavaCard for advanced IT security applications. With 32K memory, and compliant with major open standards, Cyberflex Access 32K offers an exceptionally versatile platform, capable of delivering the spectrum of secure physical and logical access applications. A full software development kit speeds time-to-market for organizations keen to exploit the state-of-the-art capabilities of these new cards.

Personal, portable and exceptionally secure, the smart card is the ideal ID device. The same card can, for example, provide physical ID, automatically control that individual’s access to specific parts of a building, as well as simplify logging on to the corporate network and ensure the security of sensitive transactions over public or private networks. Governments and corporations worldwide have been quick to identify the advantages of a single secure access card, and Cyberflex Access 32K is designed to maximize their opportunities.

It is compatible with Windows(TM) 98, Me, NT4 and 2000 operating systems and the software developer’s kit, SDK 4.0, cuts implementation time scales to maximize return on investment. Java applet development facilities support the delivery of multiple additional applications, allowing organizations to exploit the card’s generous memory capacity with further value-added services such as a campus e-purse. It enables easy integration with popular PC applications including Internet Explorer, Netscape Communicator and Microsoft Outlook. On-board cryptographic and digital signature generation features, including RSA, DES, TDES algorithms, are ready to integrate within security programs, such as Entrust PKI.

“Our customers are keenly aware of the advantages of open platform Java smart cards, and they naturally want to deliver those benefits to their internal markets as quickly as possible,” said Paul Beverly, vice president of Schlumberger Smart Cards in North America. “We’re giving them a powerful and versatile platform, plus the means to deliver integrated solutions, fast. It’s an unbeatable combination.”

The launch of the new generation cards comes as governments and corporations worldwide plan the roll out of major smart access programs. The US Department of Defense, for example, is planning a massive initial deployment of 600,000 Cyberflex Access cards for physical and logical access control. Cyberflex Access 32K conforms to the latest open standards. It is Java 2.1.1 certified and complies with Open Platform 2.0.1. Cyberflex Access has retail export classification from the U.S. Bureau of Export Administration, and the cards can be exported to developers worldwide, except for certain restricted countries. Online user support can be found at [www.cyberflex.com][1].

About Schlumberger

Schlumberger Test & Transactions provides consulting, integration and products for smart card-based transactions; IP (Internet Protocol) network, security and wireless services; and testing and measurement of semiconductor devices. With 2000 revenue of $1.4 billion and over 8,000 employees in more than 40 countries, it is a business segment of Schlumberger Limited (NYSE: SLB), a global technology services company with 2000 revenue of $9.6 billion. More information is available at [www.slb.com][2].

[1]: http://www.cyberflex.com/
[2]: http://www.slb.com/

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Yahoo! Gift Card

WildCard Systems announced it has been chosen by Yahoo! as an e-payment provider for the Yahoo! Shopping Gift Card, a stored-value gift card that enables consumers to make purchases from the nearly 10,000 stores available on Yahoo! Shopping ([http://shopping.yahoo.com][1]), and anywhere Visa is accepted online. The Yahoo! Shopping Gift Card is a great gift idea that offers consumers a convenient form of online payment, and also can be given to people as a single-use credit card. WildCard Systems, an e-payments company, serves as the issuing processor and hosts the Internet applications.

“We are proud to be selected by Yahoo! Shopping for this initiative,” said Larry Park, CEO and President of WildCard Systems. “WildCard’s turnkey value card solution enables people who use Yahoo! Shopping to conveniently purchase gifts from thousands of merchants, including trusted, brand name retailers.”

Available today, the Yahoo! Shopping Gift Card allows users to pre-load a dollar amount on a Yahoo!-branded stored-value card. The Yahoo! Shopping Gift Card works at all of the merchants on Yahoo! Shopping, taking the guesswork out of gift giving and offering shoppers a convenient gift option. Cardholders can research, compare and buy almost anything from more than 20 retail categories on Yahoo! Shopping, giving recipients a wide choice of merchants and a large selection of products.

“One of our goals is to help consumers choose the perfect gift for any occasion, and the Yahoo! Shopping Gift Card helps us achieve that goal, as well as offer people who do not have credit cards a convenient way to shop online,” said Jennifer Dulski, brand manager for Yahoo! Shopping. “We are pleased to work with WildCard because they offer a high-quality, scalable solution that works at all of our retailers on Yahoo! Shopping.”

“Consumers have come to expect innovation and versatility in payment options from Visa, and we are committed to meeting those needs by introducing new products, such as the Yahoo! Shopping Gift Card,” said Steve Diamond, Vice President, Stored-value Products, Visa U.S.A. “E-merchants appreciate flexibility in offering consumers many ways to pay, and Visa is happy to provide commerce leaders like Yahoo! some of the best payment options available to meet the needs of consumers.”

About Yahoo! Shopping

Yahoo! Shopping ([http://shopping.yahoo.com][2]) is the only place consumers need to go to find, compare and buy almost anything online. Consumers can find the popular brand-name retailers and buying information they want, as well as millions of products from thousands of merchants in more than 20 retail categories. Yahoo! Shopping also has convenient features, such as Yahoo! Wallet and Express Checkout, that make online shopping fast and easy. Yahoo! Wallet is the most widely accepted online wallet, currently accepted by more than 10,000 merchants. Yahoo! Shopping is part of Yahoo!’s comprehensive suite of commerce services, which also includes Yahoo! Auctions, Yahoo! Travel and Yahoo! Store. During the first three months of 2001, Yahoo! directly enabled more than $1.4 billion of transactions on its commerce platform.

About WildCard Systems

WildCard Systems is an e-payments company that is a technology leader for electronic stored-value accounts and related Web-based software. Stored-value (prepaid) type products, particularly those designed to make purchases on the Internet, represent one of the biggest untapped markets for consumer payments. WildCard’s secure e-transaction platform is supported by a full range of services to deliver a complete host-based stored-value solution for a wide range of vertical markets. The company has been selected by Visa, USA as a Preferred Processor for stored-value payment systems. WildCard’s clients include leaders in each of its vertical markets and some of the top financial institutions in the country. Founded in 1997, WildCard Systems is a privately held, venture capital backed company. The company is headquartered in Sunrise, Fla. with offices in Silicon Valley, Orlando and Atlanta. For more information, visit [http://www.wildcardsystems.com][3].

[1]: http://shopping.yahoo.com/
[2]: http://shopping.yahoo.com/
[3]: http://www.wildcardsystems.com/

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GetSmart VISA

Providian said yesterday it has merged its e-commerce products and services under its GetSmart unit and has launched a GetSmart-branded VISA smart card. Providian acquired GetSmart.com, an online loan marketplace, in February 1999 for $33 million cash and has since operated the Web site as a stand-alone entity under its e-commerce division. Providian says it has also expanded the features of GetSmart to include an account aggregation feature called ‘Daily View’ and an online bill payment service called ‘Bill Pay Online’. GetSmart’s core functionality resides in its ‘SmartMatch’ technology, which matches borrowers with qualified lenders whose product offerings meet their specific needs. The new ‘GetSmart smart VISA’ card is being offered in three levels: ‘Classic’, ‘Gold’, and ‘Platinum’. The ‘Platinum GetSmart VISA’ offers a 3-month 0% intro rate, followed by a prime +1.99% APR. The ‘Gold GetSmart VISA’ offers a 2-month 0% APR with a go-to rate of prime +6.99%. The ‘Classic GetSmart VISA’ carries a prime +12.49% rate after a two-month 0% intro APR. All three versions have no annual fee. An optional rewards program is available for $48 per year. The ‘Bill Pay Online’ service offers payment of up to 15 bills per month for $6.95 a month. (CF Library 2/19/99; 5/19/99; 12/17/99)

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New Freedom Terminals

MIST Inc., a global leader in wireless transaction technology, Monday announced two additions to its current Freedom family line of wireless transaction terminals, the MIST Freedom III and the MIST Freedom SPD. The MIST Freedom SPD is an EMV compliant, smart-card enabled secure pin entry device that interfaces with MIST’s Freedom terminals as well as PCs and electronic cash registers to support credit and debit card transactions. The MIST Freedom SPD also hosts additional security features, including anti-tampering and optional privacy shields, to reduce the opportunity for fraud during data transactions.

MIST’s Freedom III terminal state-of-the-art design succeeds conventional desktop terminals, offering the convenience of wireless capabilities. The terminals feature large, backlit screens that allow for value-added functions such as on-screen advertising, e-coupons, e-commerce, e-mail and electronic statements. Freedom III also supports debit, credit and smart-card enabled transactions.

“The pace at which the wireless POS industry is changing lays a significant burden on the engineering departments to develop new software and hardware capable of meeting sophisticated demands,” said Charles E. Lee, MIST chief executive officer and president.

“The launch of these two new products completes an important deployment objective for the Freedom family in the year 2001. “The range of capabilities offered by the Freedom II, Freedom III, and Freedom SPD and our gateway services, FreedomGate(TM), will provide our clients with services currently unparalleled in the industry. We are proud our technology will meet the needs of our clients and, in many ways, surpass their expectations.”

Both the MIST Freedom SPD and MIST Freedom III are compatible with MIST’s new gateway technology known as FreedomGate(TM). FreedomGate, the multiple-transaction processing facilitator through which wireless transactions are completed, provides users with remote loading of software. FreedomGate also provides time and attendance, e-commerce and messaging value-added services.

About MIST Inc.

MIST Inc., a leading global provider of wireless transaction-enabling technologies, designs, manufactures and distributes wireless and wired Point-of-Sale (POS) solutions. The “MIST Freedom” family of wireless transaction terminals was developed to complement its range of existing products. The MIST FreedomGate(TM) provides gateway services with value-added options such as messaging, time and attendance, e-commerce and advertising. With facilities in Canada, the United States and Japan, MIST’s clients include North American and international banks, financial institutions, credit and debit card processors, as well as retail, hotel, restaurant, healthcare and loyalty customers. For more information, visit [www.mistwireless.com][1].

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

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RPM Money Orders

InnoVentry Corp., the nation’s leading provider of automated cash management services, announced that it now can issue money orders through its RPM automated financial kiosks. Money orders, which are typically used as an alternative to personal checks, can be obtained while a customer is cashing a check at an RPM, during a single session. The company also plans to accept cash bills at its kiosks, for direct purchase of money orders and other financial services, by this September. InnoVentry, founded in 1998, is backed by strategic partners that include Capital One Financial and Wells Fargo & Co.. There are currently more than 1100 RPM kiosks located in high-traffic national retail stores, including Albertson’s, Circle K, Kmart, Kroger and Wal-Mart. To date, the RPM kiosks have offered automated check cashing and ATM services. With the availability of money orders, and projects underway to introduce wire transfer and other services later this year, the kiosks will deliver a full suite of cash management services in convenient retail locations. Through the use of biometric face recognition technology, consumers can be quickly enrolled in the RPM(TM) Network during their first transaction, and can use any of the company’s machines nationwide without needing a card or PIN number.

“We are building on our solid foundation of automated check cashing customers, to offer a full range of financial solutions for the millions of working Americans who do not regularly use traditional bank accounts,” said Frank Petro, chairman and CEO. “For these consumers, we deliver one-stop financial shopping in a convenient, 24-hour retail environment. For our retail partners, we attract new customers to stores, provide a new source of revenues and, in many cases, improve their bottom line by removing the risk and costs associated with handling these services manually at a customer service counter. And for InnoVentry, money orders and other new financial products represent new sources of revenue as our network continues to expand.”

About InnoVentry

Backed by strategic partners that include Capital One Financial (NYSE:COF) and Wells Fargo & Co. (NYSE:WFC), InnoVentry Corp. ([www.innoventry.com][1]) is the creator of the RPM (TM) Network of automated financial kiosks, which allows consumers to cash checks, purchase money orders and perform other financial functions. A privately held company based in San Francisco, InnoVentry has enrolled more than 1 million customers and cashed more than $1.5 billion worth of checks.

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

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HoloCard

American Bank Note Holographics unveiled ‘HoloCard’ yesterday which will give a facelift to current payment cards. ‘HoloCard’ features a registered hologram that covers the face of an entire transaction card. The full-faced hologram is designed to improve brand recognition and can incorporate unique security features. ABNH said it can supply the full-faced hologram laminated to plastic, in lieu of the base plastic sheets typically used by card manufacturers prior to card production. This option enables card issuers to adopt the new enhancement to card design very cost-effectively.

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Chargeoffs 3/01

Bank credit card charge-offs increased 10 bps to 6.1% in March from 6.0% in February. The 6.1% level is the highest loss rate reported since May 1999. In addition, personal bankruptcies increased in the first quarter to 356,585 (compared with 310,169 in the fourth quarter of 2000), its highest quarterly total since 1994. According to Standard & Poor’s ‘Credit Card Quality Index’ has already started to see some sign of weakening performance in card-backed securities with a higher concentration of underserved credits. Losses for these trusts have increased on average about 125 bps over the past three months. For the remaining trusts tracked, those that have a greater concentration of prime obligors, losses have increased on average about 60 bps.

CREDIT CARD QUALITY INDEXES
Performance month Mar 99 Mar 00 Jan 01 Feb 01 Mar 01
Yield (%) 20.3 20.2 19.8 20.0 21.1
Charge-offs (%) 5.9 5.7 5.5 6.0 6.1
Delinquencies (%) 4.6 4.3 4.9 5.1 5.0
Payment rate (%) 17.2 17.3 16.7 14.8 16.7
Source: S&P

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NavyCash

The Navy’s new smart payment card is now in a pilot run with 170 crewmembers of the USS RENTZ. The smart MasterCard was developed by Chase Manhattan. The ‘Navy Cash MasterCard’ uses a chip to store value for purchases at sea and a magnetic strip for debit purchases and ATM account access. Sailors and Marines can use the e-purse feature to buy items at point-of-sale terminals in the on-board store, post office, morale-welfare and recreation wardrooms and other retail locations. Navy Cash also provides electronic access to personal checking and savings accounts ashore. The card is manufactured by SCI. The card is backed by the Microsoft Windows Card Operating System with personalization provided by UbiQ. The smart card is powered by Atmel’s Flash memory based secure microcontroller. The system is supported by Compaq servers, Oracle Corporation’s 8i database, eBusiness applications suite, and Internet developer Suite, and Titan line installation and wiring is providing shipboard integration, installation, and training services.

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PayWare Guardian

Trintech Group introduced an umbrella payment security architecture that verifies cardholder identity and authenticates their transactions. ‘PayWare Guardian’ includes the ‘Guardian Transaction Authentication’ module and the ‘Guardian SET Authentication module. The ‘Guardian TA’ module for fraud reduction supports proxy card numbers and real-time authorization verification for issuers. ‘Guardian SA’ is a separate module which supports the industry-wide SET standard developed by VISA and MasterCard. The main feature of this solution is that it does not require merchants to change their existing transaction processing system. The solution also has built-in authentication mechanisms. A consumer’s credit card information remains private, issuing banks verify the financial transaction and provide authorization, and merchants are assured of a verifiable transaction actually related to a genuine purchase.

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Smart Cards 2000

Worldwide smart card shipments totaled 628 million units for 2000, a 45% increase over 1999. Two vendors, Gemplus and Schlumberger, continued to dominate the worldwide market with combined shipments accounting for 54% of total smart card units. If memory cards are included, the combined marketshare for Gemplus and Schlumberger would be nearly 67%, according to Gartner’s Dataquest survey. Gemplus’ acquisition of ODS during 2000 provided some extra market share, and Schulumberger’s acquisition of Bull CP8 will secure some additional market share for 2001.

Worldwide Chip Card Vendor Shipments
Year 2000 (Millions of Units)

Smart Card Memory Card Total Chip Card
Company Shipments Shipments Market Share
Gemplus (inc. ODS) 185 438 35%
Schlumberger (inc. Solaic) 152 405 32%
Giesecke & Devrient(inc. RDN) 76 112 11%
Oberthur 85 28 6%
Orga 53 31 5%
Others 77 126 11%
Total Market 628 1,140
Source: Gartner Dataquest

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Dual Interface Cards

QualTeq, Inc., a leader in secure transaction card manufacturing for almost 20 years, announced that it is the first fully-integrated, secure North American company to offer dual interface cards incorporating contact and contactless technology.

This was made possible by utilizing technology from its suppliers and patents from its partners.

“Contactless and dual interface cards represent one of the most advanced technologies in smart cards,” commented Al Vrancart, president and CEO, QualTeq. “We now have the capability to provide a multitude of different card platforms for a variety of client needs.”

QualTeq recently acquired the Muhlbauer glue tape lamination system, the Muhlbauer Smart Card Milling and Implanting System, and the Louda KIS II Inspection System. This new machinery, and the patents from its strategic partnerships, make it possible for QualTeq to combine chips, interfaces, and radio frequency identification (RFID) antennas with operating systems, in order to deliver contactless, contact and dual interface smart cards.

“Our core business will continue to be secure plastic card manufacturing, but we are now capable of providing secure IT, card-based solutions, using traditional magnetic, contact and contactless smart card technologies,” said Vrancart.

The QualTeq plant in South Plainfield, New Jersey (USA) serves many of the USA’s largest card issuers including Citibank, Discover Card, Sears, AT&T, and FDR. QualTeq serves a wide range of industries including financial, retail, transportation, automotive, travel and entertainment, healthcare, identification, loyalty, and network security.

About QualTeq

QualTeq has been a leader in secure card manufacturing for almost 20 years, producing over two billion cards since its inception. QualTeq is a single source supplier of card products and services from card design and manufacturing to personalization and card issuance–receiving recent International Card Manufacturer Associaiton (ICMA) Elan Awards for Card Design Excellence. QualTeq is also the first fully integrated secure North American company to offer dual interface cards incorporating contact and contactless technology.

For more information, visit the web site at [http://www.qualteq.com][1].

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

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FUSA COO

Bank One Corporation has named Daniel J. Frate president and chief operating officer of First USA, its credit card subsidiary. He will report to Philip G. Heasley, First USA’s chairman and chief executive officer.

“Over the last year, the people of First USA have done a great job rebuilding the company and putting it in a position to grow,” said James Dimon, chairman and chief executive officer of Bank One. “Dan Frate joins a solid management team that is more than capable of leading First USA back to industry leading performance.”

Frate, 40, most recently was vice chairman and a member of U.S. Bancorp’s Operating Committee. In his 12 years there, he developed and executed credit, servicing and technology strategies for U.S. Bancorp’s payment systems business. Before that, Frate held various consumer credit, technology and service management positions with Citicorp.

“Dan’s extensive knowledge of the credit card industry and his skill as a process manager will prove invaluable in First USA’s day-to-day operations,” said Heasley. “His addition complements the strengths of our management team as we begin to grow First USA again.”

“I see tremendous opportunities for First USA,” said Frate. “I am excited to be working with the management teams at First USA and Bank One to capitalize on these opportunities and build First USA into the nation’s premier credit card organization.”

Frate earned a bachelor’s degree in economics from John Carroll University and a master’s degree in finance from the Krannert Graduate School of Management at Purdue University.

About First USA

First USA has more than 50 million cardmembers and $64 billion in receivables and is the largest issuer of Visa credit cards. About Bank One

Bank One Corporation 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 [http://www.bankone.com][1].

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

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