VISA & Tickets.com

Tickets.com and VISA USA announced an integrated partnership Monday. Under the new agreement, Tickets.com will implement the ‘VISA Payer Authentication System’, based on the ‘3D Secure Protocol’. Tickets.com will be the first ticketing company to adopt the ‘3D Secure’ system. Customers (who have registered in advance through their card issuer) will be prompted for a password during the checkout process whenever they make a purchase on Tickets.com. In a matter of seconds, the ‘3D Secure’ service verifies the card account number used in the transaction. VISA cardholders also will be eligible for special privileges and promotions through Tickets.com.

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SurePay CEO

SurePay, LP (www.surepay.com), a major operating company of eONE Global LP (www.eoneglobal.com) and a provider of end-to-end payment and trust services for Internet business-to-business (B2B), business-to-consumer (B2C) and Mobile Commerce markets globally, today announced the appointment of Stephen J. Flett as Chief Executive Officer. An internationally seasoned senior executive, Mr. Flett has considerable experience as a business strategist and new payments technology leader. His management skills developing new business strategies and directing the introduction of e-commerce payment products during his 12 years at American Express will further SurePay’s business initiatives and market presence as it introduces its online B2B payment platform solution later this month.

SurePay leverages the vast experience, strength and infrastructure of founder First Data Corp. (NYSE: FDC), a global leader in electronic commerce and payment services, to develop, adopt and deliver trusted payment technologies in the B2B sector. eONE Global is jointly owned by management, First Data Corp., and iFormation Group, a partnership of the Boston Consulting Group, Inc., General Atlantic Partners, LLC and The Goldman Sachs Group, which partners with large companies to help create new online businesses.

Flett’s joining SurePay coincides with the company’s increase in momentum and marketplace traction. In addition to several pending customer relationships, SurePay earlier this month announced a strategic alliance with VeriSign, the leading provider of Internet trust services, to jointly develop and market the SurePay B2B payment solution and VeriSign’s B2C payment solution as their respective premier payment offerings. John Duncan, SurePay’s first CEO and a managing director of eONE Global, will now focus on identifying and developing emerging payment technologies at eONE Global, most immediately in the Mobile Commerce and wireless consumer payments sector. He will also remain active in business development activities to accelerate SurePay’s product and market presence globally.

“As SurePay’s new CEO, Steve’s impressive background in international finance, his management experience and his proven track record in developing online B2B payment technologies will complement SurePay’s foundation and direction and accelerate our progress in achieving our strategic objectives,” said Garen Staglin, president and CEO of eONE Global. “John Duncan’s strong business development skills established SurePay as a leader in trusted Internet payments. Now, Steve’s understanding of new technology opportunities, global payments and information systems underscore his ability to propel the company forward as a global leader in the online business payments sector. We are fortunate to have the business skills of both of these executives on the same team to assist us in achieving our goal of creating the future of online payments, today and tomorrow.”

SurePay has been recognized by industry analysts as well on its way to becoming the premier, single-source B2B payments solution provider by offering an integrated, end-to-end product — from buyer/seller verification to integrated reporting. Leveraging its strength in transaction execution and core gateway products, SurePay will seamlessly integrate its offerings with public and private exchange’s and enterprise’s product development cycle and existing technology platforms.

“SurePay provides a tremendous opportunity to move payment processes online and improve business efficiencies, and I am thrilled to be part of it,” Flett said. “Building upon SurePay’s solid foundation in the U.S., my international banking and payments experience will help as we accelerate business development efforts internationally over the next several months. In addition, we will continue to focus on executing our strategy to partner with financial institutions and third-party providers to enhance our B2B payments offering as the premier solution in the marketplace.”

SurePay is poised to take advantage of the vast growth opportunities in the B2B arena. The Boston Consulting Group estimates that B2B e-commerce in four leading countries (U.S., U.K. France and Germany) represents a market opportunity of approximately $16 billion by 2005; the relevant payments market for SurePay represents a revenue opportunity in excess of $4 billion during that period.

“eONE Global’s ability to attract Stephen Flett, a leading payments and technology executive, is a testament to the company’s strength and leadership position in the emerging payments business,” stated David Pecaut, president of iFormation Group and member of eONE Global’s Board of Directors. “Steve is highly accomplished and a creative asset to our executive team. His joining SurePay is an important milestone for the company as it moves aggressively forward, and is indicative of the quality and caliber of talented professionals who are committed to eONE’s overall strategic vision.”

Innovative Technology Leader

Flett has extensive B2B payment expertise developing and implementing innovative Internet-based payment products for major global businesses and managing governmental banking institutions. He was responsible for the development and launch of “International Payments,” American Express’ entrée into B2B e-commerce online payments.

An internationally seasoned senior executive, Flett has held a series of positions of escalating importance for the American Express Company, Ltd., where his leadership and direction of new technological business opportunities significantly increased the company’s presence in key global market areas as well as the company’s revenue base. Most recently as senior vice president and general manager for American Express’s Global Foreign Exchange Services Division, he successfully built and introduced the company’s first online transactional corporate payments service. As vice president of International Business Development, he defined and launched the company’s entrée into its strategic alliance program supporting the distribution of the American Express Cards through bank partnerships.

Flett has an impressive track record in the banking industry, most notably as Managing Director of the Bermuda Monetary Authority (Central Bank) where, reporting to the Minister of Finance, he was responsible for the supervision of Bermuda’s financial institutions and its fiscal reserves supporting the foreign value of Bermuda’s currency. He has broad mergers and acquisition experience from Reed International, plc., and he began his career developing banking and offshore insurance programs at the accounting firm Coopers and Lybrand (now PricewaterhouseCoopers).

A charter member of Mainspring’s Strategy Executive Council, Flett has an MBA degree from York University of Toronto and a B.Commerce degree with Honors from Queen’s University. He also is a Chartered Accountant with memberships in associations in Ontario and Bermuda.

About SurePay

SurePay, LP provides complete, end-to-end payment, trust and security products and services for Internet B2B, B2C and Mobile Commerce markets on a global scale. Leveraging the leadership position of its founder, First Data, in payments processing, SurePay develops and delivers trusted, secure payment solutions for businesses and consumers buying and selling on the Internet. SurePay is a central operating company within the eONE Global network of payment companies and technologies. Headquartered in Melville, NY, SurePay has access to the powerful transaction processing and distribution resources of First Data Corp. throughout the world. For more information visit [www.surepay.com][1].

About eONE Global

As the leading source for accelerating payment innovation, eONE Global, LP (www.eoneglobal.com) identifies, develops, and operates emerging payment systems and related Internet and wireless technologies spanning the business, government and consumer markets. Its operating companies include SurePay, LP (www.surepay.com), which provides end-to-end payment and security products for companies and consumers buying and selling over the Internet, as well as govONE Solutions, LP (www.govONEsolutions.com), which enables businesses and consumers to make government payments electronically. eONE Global is owned by global e-commerce and payment services leader First Data Corp. (NYSE: FDC) and iFormation Group, a company created by The Boston Consulting Group, General Atlantic Partners, LLC and The Goldman Sachs Group.

About First Data Corp.

Atlanta-based First Data Corp. (NYSE: FDC) is a global leader in electronic commerce and payment services. Serving more than 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 [www.firstdata.com][2].

About iFormation Group

iFormation Group is a company created by The Boston Consulting Group, General Atlantic Partners and Goldman Sachs to carve new ventures out of traditional companies in partnership with the Global 2000. iFormation teams with industry leaders to acquire, develop and build new Internet and technology ventures that leverage the corporate partners’ legacy assets. For more information, please visit the company’s Web site at [www.iformationgroup.com][3]

[1]: http://www.surepay.com
[2]: http://www.firstdata.com
[3]: http://www.iformationgroup.com

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VISA CISP

Visa U.S.A. has selected Convene.com, an online education solutions provider, to develop and host Web-based training programs about Visa’s Cardholder Information Security Program. The Visa Business School is using Convene’s self-paced, education package as part of its extensive CISP curriculum, teaching financial institutions and e-merchants about Visa’s recent initiative to bolster the security of Internet commerce.

Visa launched the CISP as part of its Secure Commerce Program in September 2000, partnering with e-merchants to protect cardholder data online. The CISP entails a set of 12 e-Commerce security guidelines for safeguarding systems from unauthorized use of card and account information. Visa is helping e-merchants and service providers comply with the CISP guidelines, ultimately making online payments safer for consumers.

A well-educated base of e-merchants and other key stakeholders is one of the key elements for the success of CISP, and Visa engaged Convene.com to augment its CISP training curricula. Visa is instructing its Member financial institutions and e-merchants via an educational video, a CISP manual, a flier outlining the 12 ‘Digital Dozen’ security guidelines as well as one-on-one training meetings. Convene’s online CISP training program supplements this Visa Business School package, offering a convenient, user-friendly means of accessing program details. The self-paced online program offers an in-depth e-security education, plus resources to help banks and e-merchants meet CISP requirements.

![][1] ‘We are pleased to bring our eLearning solutions to Visa’s Business School,’ said Dan Klein, CEO and president of Convene.com. ‘Through our alliance, Visa merchants from across the nation can conveniently learn how to put valuable security measures in place that can positively impact their e-businesses.’ The Visa Business School released this online training to its Member financial institutions last month. Visa Members, in turn, are packaging and offering the curriculum to e-merchant partners that accept Visa products. Visa’s Business School provides training for more than 21,000 Member financial institutions across the nation. Visa expects these Members to educate at least 20,000 of their e-merchants during the year using the new eLearning service. ‘E-Commerce won’t be built solely on technology or devices, it will be built on consumer trust,’ said John Shaughnessy, senior vice president, Risk Management, Visa U.S.A. ‘Convene’s Web-based CISP training plays a vital role in helping us heighten that trust. Complying with Visa’s critical security endeavors not only helps e-merchants protect cardholder data; it helps them safeguard their e-Commerce business and their greatest asset — their reputation.’

About Convene.com

Convene.com is a premier online learning service provider for corporations and academic institutions seeking the best in online training and education. Since the early 1990’s, Convene has been a pioneer in the online education industry including the development of a comprehensive eLearning platform for the first and most successful online university in the world. Today, from our San Francisco, California headquarters, Convene continues to improve the instructor-led model of teaching by enhancing online collaboration and facilitation with our Izio(TM) course management platform. With Izio’s highly intuitive user interface, Convene.com’s Collaborative Web-Based Training (CWBT) solutions blend the best of instructor-led and online learning, enabling learners to quickly master complex information from anywhere at anytime. Convene.com’s offerings include collaborative and self-paced eTeaching and eLearning tools, customized course development services, learning portal development, 24/7 technical support and client training. For more information about Convene.com, log onto www.convene.com or send an e-mail to info@convene.com.

About Visa U.S.A.

Visa is the world’s leading payment brand and largest payment system, enabling banks to provide their consumer and merchant customers with the best way to pay and be paid. More than 14,000 U.S. financial institutions rely on Visa’s processing system, VisaNet, to facilitate over $765 billion in annual transaction volume — including more than half of all Internet payments — with virtually 100 percent reliability. U.S. consumers carry more than 345 million Visa-branded smart, credit, commercial, stored value and check cards, accepted at approximately 21 million locations worldwide. Visa has long led the industry in developing payment security standards, and has been named the most trusted payment brand online. Visa’s people, partnerships, brand and payment technology are helping to create universal commerce — the ability to safely conduct transactions anytime, anywhere and by any device. Please visit [www.visa.com][2] for additional information.

[1]: /graphic/convene/convene.gif
[2]: http://www.visa.com/

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TSYS 1Q/01

TSYS reported this morning that net income for the first quarter of 2001 increased 6.6% to $22.0 million. Excluding revenues attributable to the Citigroup Universal Card Services’ consumer card portfolio for the first quarter, pro forma revenues for the increased 14.0% compared to last year. With the conversion of The Royal Bank of Scotland Group plc and Allied Irish Banks, TSYS expects the growth rate in earnings in the third and fourth quarters of 2001 to be in excess of 30%. TSYS had 199.2 million accounts on file at the end of 1Q/01.

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2Q/01 Outlook

The record number of first quarter personal bankruptcies and the increasing amount of credit card debt falling seriously past due has heightened concern over the ability of consumers to manage their overall debt burdens. Personal bankruptcy filings totaled 356,585 in the first quarter, the highest quarterly total since 1994, when filings were first reported on a monthly basis. While a rush of pre-reform filers drove a portion of the bankruptcy tally, the rise in other consumer credit figures over the first two months of this year has compounded credit anxiety. Personal bankruptcy filings grew 22% on a year-over-year comparison and 18% from fourth quarter 2000. Given the current economic outlook and the accelerated pace of filings, Fitch revised its 2001 forecast to a 10% increase over 2000 results. Fitch also said yesterday that its ‘Credit Card Chargeoff Index’ increased 30 bps to 5.55% during the February collection period, snapping the 32-month string of year-over-year comparison improvements. Fitch’s delinquency index, which tracks receivables greater than 60 days past due, rose 13 bps to 3.50% in the latest period, its highest level since March 1998 and nearly 10% above the prior year’s level.

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Falcon Quick Track

HNC Financial Solutions released a specialized version of the ‘Falcon’ bank card fraud detection system developed specifically for international card issuers. ‘Falcon Quick Track’ offers fraud detection abilities of ‘Falcon’ at a significantly reduced implementation time, allowing mid-sized international customers to benefit from reduced fraud losses much more quickly. The international version offers mid-sized European card issuers, who often conduct card processing independently, an accelerated access to the significant fraud loss reductions made possible by Falcon. ‘Falcon’ is a neural network-based predictive software system that examines transaction, cardholder, and merchant data to detect a wide range of payment card fraud. Payment card fraud has been escalating throughout the world, especially Europe. Last year, card fraud grew across the European Union by 50%, with fraudulent transactions reaching an estimated $553 million.

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BRAZIL

Smart MasterCards may grow from 240,000 to 2 million by the end of this
year in Brazil. To-date, six financial institutions have replaced
magnetic-stripe cards with smart cards including Credicard, Itau, ABN Amro
Real, Bradesco, CEF and Unibanco. Banco do Brasil is switching very soon.
MasterCard plans to invest R$80mil in marketing this year. MasterCard
reported card volume of R$18billion last year, 14 million credit cards, and
6 million debit cards.

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First Data 1Q/01

Merchant Services, comprised primarily of the company’s merchant acquiring and TeleCheck businesses posted 17% growth in revenue to $476 million, with 21% growth in operating profits to $103 million. The TeleCheck business continues to significantly expand merchant utilization of electronic check acceptance, which converts paper checks into electronic items at the point of sale. In the first quarter, it handled more than 13 million ECA transactions, nearly doubling the prior year’s volume. Card Issuing Services reported operating profits of $73 million, a 6% increase, while revenue of $362 million was relatively flat. Accounts on file, consisting of credit, debit and retail store cards, grew 21% to 311 million, reflecting the addition of 44 million JC Penney accounts last fall. Emerging Payments, a newly formed segment focused on building and commercializing emerging technologies, reported $21 million in revenue for the first quarter, a 5% growth over first quarter 2000. For complete details on FDC’s 1Q/01 data visit CardData ([www.carddata.com][1]).

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

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Catuity & VeriFone

Catuity, Inc. announced it has expanded its relationship with VeriFone, a division of Hewlett-Packard Company. Catuity and VeriFone have signed an agreement to make the Catuity Loyalty Solution available on VeriFone’s Omni 3300 and 3350 e-payment terminals. The announcement was made by Michael Howe, President and Chief Executive Officer of Catuity, Inc.

The Omni 3300 series of payment terminals support smart cards and are based on VeriFone’s Verix operating environment, a global platform that supports multiple applications running on the same terminal. By making the Catuity Loyalty Solution available on the Omni 3300 and Omni 3350, retailers easily can offer loyalty packages including gift card programs at the point of sale while at the same time offering traditional payment applications supported by VeriFone’s SoftPay e-payment software.

![][1] Howe said that this agreement with VeriFone is significant for Catuity because it enables the company to accelerate the implementation of its software and loyalty programs, especially among restaurants and retail clients. “With our loyalty programs running on VeriFone’s Verix-based terminals, our potential revenue could be significant, as VeriFone is a leader in the small retailer terminal market,” said Howe.

“Catuity has a great solution and we’re thrilled to be supporting their efforts to get their loyalty application running on our Verix-based Omni 3300 and Omni 3350 terminals. This relationship is strategic because it positions VeriFone to quickly take advantage of upcoming smart card developments such as the SmartVisa Card,” said Ann Dismukes, product manager at VeriFone. “We were able to quickly develop this solution with Catuity because the multi-application, Verix-based platform of the Omni 3300 series of terminals is perfectly suited to support a payment-related application like Catuity’s Loyalty Solution.” The Omni 3300 and Omni 3350 terminals have the capability of accepting smart cards, which are just entering the U.S. market. Both Catuity and VeriFone are SmartVisa Technology Partners, in that they offer solutions to integrate loyalty and payment on the new SmartVisa Card.

This agreement follows an August 2000 announcement made by VeriFone and Catuity in which Catuity was recognized as one of the first software companies to adopt the Verix architecture. “We were able to achieve success in this endeavor within a relatively short time frame and have agreed that our relationship can move to a mutually-beneficial next step, which is a joint sales and marketing effort to sell applications and loyalty solutions to the retail marketplace,” said Howe.

About Catuity, Inc.

Catuity ([www.catuity.com][2]) is a leading provider of loyalty software systems. The Catuity software includes an integrated suite of applications that provide loyalty, ticketing, access control, and membership. The Catuity Loyalty System is ubiquitous in that it can operate on any device, any card program, and with any payment process, including stores value smart cards and wireless applications. Catuity unites the brick-and-mortar retailer with the Internet to enable cross-sell capabilities with consistent brand imaging across all channels.

About VeriFone

VeriFone ([http://www.verifone.hp.com][3]), a division of Hewlett-Packard Company, is the leading global provider of secure electronic payment solutions for financial institutions, merchants and consumers. The division has shipped more than nine million electronic-payment systems, which are used in more than 100 countries.

About HP

Hewlett-Packard Company — a leading global provider of computing and imaging solutions and services — is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that’s always on. HP had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found on the World Wide Web at [http://www.hp.com][4].

[1]: /graphic/catuity/catuity.gif
[2]: http://www.catuity.com/
[3]: http://www.verifone.hp.com/
[4]: http://www.hp.com/

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Carnival MasterCard

Carnival Cruise Lines and Capital One have teamed to offer the ‘Fun Finance Plan’ which includes a cobranded MasterCard. Under the program, cruise vacationers will be able to finance the expense of a cruise in a 24-month installment plan with interest rates as low as 9.9%. Cardholders who qualify for a 9.9% APR would pay $14 per month for a three-day cruise and $28 per month for a seven-day voyage. Cardholders will also receive the traditional benefits of MasterCard and earn one ‘Fun Rewards’ point toward Carnival cruise upgrades and discounts up to a free cruise. The financing plan may be utilized in conjunction with new or existing individual bookings for departures on or after June 21. Available payment levels (based on the cost of the chosen voyage and stateroom category and predicated on credit qualification) are easily accessible to travel agents and consumers via Carnival’s reservations department. All bookings made with the ‘Carnival MasterCard’, including those involving discounts or upgrades via the ‘Carnival MasterCard Fun Rewards’ program, are fully commissionable to travel agents.

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Securify & VISA

Visa U.S.A. has selected Securify, Inc., a leading provider of security technologies and services for connected businesses, to manage its smart Visa Access Provider Qualification Program. Visa’s Access Provider Qualification Program is a process designed to increase the number of qualified security solutions Visa Member financial institutions can employ to provide secure Web services. Through its suite of Access Management Services, Securify has implemented the qualification program as part of its larger role in helping Visa manage and roll out its entire smart Visa Access platform. smart Visa is Visa U.S.A.’s smart card platform.

Securify is offering a comprehensive qualification program for technology providers interested in joining the smart Visa Access program to help guide them through the entire qualification process. Access management solutions, consisting of Public Key Infrastructure (PKI), Access Control, and Smart Card Systems qualified under the program will be made available to all Visa Member financial institutions for integration with their applications. In addition to creating and managing the smart Visa Access Provider Qualification Program, Securify developed the smart Visa Access system architecture, performed comprehensive project management to develop the reference implementation, and maintained ongoing product and reference lab management roles.

![][1] “By boosting the availability of qualified smart Visa Access solutions for their Member financial institutions, Securify is making it easier for Visa Members to quickly expand and enhance their traditional trust relationships with customers through Internet-based services,” said Charles Walton, senior vice president, Securify. “Our unbiased expertise in PKI, access control, and smart card products and technologies uniquely qualify us to head up this program for Visa, and we look forward to working with technology providers to help them qualify their solutions.”

Authentication is the process of positively identifying an individual (or another computer) attempting to gain access to a network or application. Once they are identified, access management enables an organization to manage what they can do.

“Through our experience with Securify in planning, designing, deploying and managing our smart Visa Access infrastructure, we have the highest confidence they will manage our smart Visa Access Provider Qualification Program efficiently and effectively,” said Patrick Gauthier, senior vice president, smart Card Applications, Visa U.S.A. “The Securify Access Management Services have helped us tremendously in providing our Member financial institutions with the security infrastructure they need to roll out their next-generation online products and services.”

About Securify Access Management Services

Implementing authentication and access management solutions today is still a complex, costly, and time and resource consuming process. Securify’s Access Management Services help financial institutions choose among myriad security technologies and products to achieve the best authentication and access management solution to meet their business requirements. Working with a wide range of partners, Securify consultants apply their in-depth knowledge of PKI, smart card and access management vendors, technologies and products to act as unbiased, trusted advisors. Securify provides support over the entire life cycle of deployment, serving as advocates on behalf of customers throughout the entire implementation process. Securify’s team provides the qualified expertise and manpower necessary to plan, evaluate, design and implement the entire solution.

About Securify, Inc.

Securify technologies and services help connected businesses reduce their security risks and improve their trust relationships. The Securify SecurVantage suite of managed security services quantifies the Quality of Security Service (QoSS) for cost effectively managing overall network security across an Intranet as well as between e-business partners. Securify Access Management Services offer consulting and integration assistance that simplifies the deployment of cost-effective, vendor-neutral enterprise authentication and access management solutions. Securify customers include major financial institutions, healthcare agencies, managed service providers and other Fortune 1000 organizations. Securify has built a world-class staff of qualified network security, authentication and access management specialists to provide customers with a high level of expertise to augment existing resources. The company has its headquarters in Mountain View, CA. For more information, please call (650) 812-9400 or visit the Securify Web site at [http://www.securify.com][2].

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

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