Palm iDine

Transmedia Network’s dining rewards program is going wireless. The firm has teamed with AvantGo to enable ‘iDine’s’ more than four million members to access over 7,000 restaurant listings in 60 major markets by utilizing handheld devices based on the Palm OS or Windows CE platforms, as well as Internet-enabled phones. Offered as a free service, members can access the ‘iDine’ website via desktop synchronization or wirelessly and conduct a personalized mobile dining search by metro area and neighborhood. Under the ‘iDine’ program, members register up to three major credit cards and automatically receive their dining benefits without the use of coupons or flash cards. Under the fee-based, cash rewards program called iDine Prime, members receive a 20% cash reward at participating restaurants for an annual membership fee of $49. (CF Library 8/4/00; 11/22/00)


Laser Visa

Drexler Technology contracted to provide one million ‘LaserCard’ optical memory cards to the U.S. Department of State. The ‘Laser Visa’ cards will be used for frequent visitors from Mexico and as INS Permanent Resident ‘Green Cards’. Under terms of the deal, Drexler will receive more than $3 million in revenues and will deliver the cards at an average rate of 143,000 cards per month. This is the second DoS million card order for Drexler. Approximately 8 million U.S. and Mexican residents have received Drexler’s cards since 1997, in the form of either Green Cards or Laser Visas. Currently, the INS and DoS are personalizing and issuing the cards to about 300,000 more people each month under these two programs. (CF Library 3/23/01)


Sub-Prime Sector

The sub-prime credit card segment continues to lead the industry in receivables growth. SD-based First Premier Bank card loans soared by 113% last year compared to 93% for 1999. Providian and Capital One hold the leadership position in the sub-prime market. However Household is emerging as a major player according to CardData ([][1]).

1. Providian +43% $2342 $2307
2. Capital One +45% $1268 $2094
3. Direct Merchants +27% $2067 $1800
4. First Consumers +61% $1222 $1889
5. First Premier +113% $309 $ 405

avg bal- average balance per active account as of 12/31/00; avg vol –
average year-to-date volume per active account as of 12/31/00.
Source: CardData (



Intelli-Check 4Q/00

Intelli-Check, Inc., a developer of advanced documentation verification systems, announced financial results for the year ended Dec. 31, 2000 that include a major increase in sales.

During the year ended Dec. 31, 2000, Intelli-Check contracted total sales of $860,929. In compliance with the Securities and Exchange Commission accounting regulation SAB No.101 which deals with the issue of revenue recognition, the Company has deferred $517,950 of its contracted sales to fiscal 2001 and, accordingly, the reported revenue for the year ended Dec. 31, 2000 was $342,979, a significant increase over revenue of $29,407 in 1999. Under the new accounting regulation, revenue on sales of the Company’s product is recognized upon shipment to the customer. Certain sales require continuing services or post contract customer support and performance by the Company, and accordingly the deferred revenue and related cost of revenues will be recognized ratably over a 12-month period.

Intelli-Check reported a net loss of $3,132,772, or $0.47 per share for 2000, compared with a net loss of $2,299,425, or $0.45 per share, in 1999. Basic and diluted weighted average shares outstanding used in computing per share amounts for each period were 6,648,191 and 5,079,807, respectively.

“We are pleased that the major marketing initiatives launched in late 2000 for our state-of-the-art ID-Check(R) age and document verification units have begun to generate increased sales and we are optimistic that this trend will continue in the current fiscal year,” stated Frank Mandelbaum, Intelli-Check Chairman and Chief Executive Officer. “In the past year, a great deal of the Company’s resources were devoted to building up infrastructure, hiring of new staff, an increase in advertising and marketing efforts and the move into a new headquarters sufficient to meet our operational needs. With that behind us, we can now look forward to an anticipated increase in sales and growth during the current fiscal year.”

Mr. Mandelbaum said that the Company has re-focused its marketing efforts to address the larger mass merchandisers, convenience stores, grocery and pharmacy chains, casinos and banks. “With an enhanced ID-Check unit that has the ability to verify the validity of military IDs, driver licenses and state-issued ID cards containing magnetic stripes or bar codes, Intelli-Check has positioned itself for growth in expanded markets such as major retail outlets which need an effective tool to help combat check cashing and credit card fraud supported by fake ID’s, in addition to the growing problem of ‘identity theft’.” Intelli-Check(R), Inc. designs, develops, and markets an advanced document verification system to enable a retailer to help prevent economic loss through various frauds utilizing fake ID’s to support these transactions and to determine whether purchasers of age restricted products meet the minimum age requirements for the sale. Fake ID’s of the highest quality are easily obtainable and have become a major tool in “identity theft,” the fastest growing crime in the U.S. The ID Check(R) terminal, with its patented software, analyzes and displays information encoded in magnetic stripes and barcodes found on driver licenses, military identification and other forms of government-issued identification.

Consolidated Statement of Operations

Year Ended December 31,

2000 1999
—- —-

Sales $ 342,979 (a) $ 29,407
Net Loss $ (3,132,772) $ (2,299,425)

Net Loss per Common Share –
Basic and Diluted $ (0.47) $ (0.45)

Common Shares Used in
Computing Per Share Amounts–
Basic and Diluted 6,648,191 5,079,807

(a) Revenue on sales of the Company’s product is recognized upon shipment to the customer in order to meet Securities and Exchange Commission accounting standards. Revenues of $517,950 from sales in the fourth quarter of 2000, as well as cost of revenues of $299,040, were deferred and will be recognized ratably over a 12-month period. Total revenues recorded and deferred for the year ended December 31, 2000 were $860,929.

The Company will hold a conference call with members of the investment community on Friday, March 23, at 8:45 a.m. EST to discuss the year-end results. To participate in the call dial 800-360-9865.


Bradford to Frst Amer

First American Payment Systems, L.P., one of the fastest growing merchant credit card processing acquirers, is pleased to announce that Debra Bradford has joined the company as Senior Vice President and Chief Financial Officer. Ms. Bradford comes from Irving, Texas-based ACE Cash Express, Inc. where she served as Senior Vice President and CFO. Prior to that, she maintained a 15-year career with IPS Card Solutions, a division of First Data Corporation, (formerly NTS, Inc.) serving in various positions and leaving in 1999 as the Chief Operations Officer. A graduate of the University of Texas in Austin, Ms. Bradford is a CPA and a member of both the Texas Society of Certified Public Accountants and the Financial Executive Institute.

Neil Randel, President and Chief Executive Officer, said that Ms. Bradford is a valuable addition to the company. “Her background and experience will help First American to continue its aggressive growth plans for 2001 and beyond. Having a person with Debra’s operational and public sector experience will be a great benefit. I am pleased to welcome her to the First American Payment Systems team.” he said.

“I am very excited about joining the First American team, and I look forward to the continued growth of the company,” Ms. Bradford said.

About First American

First American Payment Systems, L.P., a privately owned company founded in 1990, provides full-service electronic credit card authorization and payment systems to retail, restaurant, mail order, telephone order, Internet and home-based merchants throughout the United States. The company also offers electronic gift certificates and electronic check conversion. First American’s divisions include national ATM deployment, Secur-Chex(TM) check guarantee, FirstPay.Net(TM) e-commerce payment gateway and Merimac Capital point-of-sale equipment and ATM leasing. First American provides services for 20,000 merchants and operates 270 ATMs nationally. For more information on First American Payment Systems, visit the company’s website at [][1].



MasterCard Chairman

MasterCard International elected Lance Weaver as chairman of its Global Board of Directors. Mr. Weaver is a senior vice chairman and chief administrative officer of MBNA America. He joined the Board of Directors of MasterCard International in July of 1997. Weaver succeeds Donald Boudreau, recently retired vice chairman of The Chase Manhattan Bank, as chairman. MasterCard International has 22,000 member financial organizations in 210 countries and has issued 700 million cards worldwide. Combined with Europay, MasterCard has more than one billion credit, charge and debit cards in circulation, 19 million acceptance locations, and annual gross dollar volume of about $833 billion according to RAM Research Group ([][1]).



Prepaid Cellular & USTT

USA Technologies Inc. announced it will equip Pre-Paid Express cellular phone and pager vending machines worldwide with its e-Port technology, giving customers the ability to purchase Pre-Paid Express offerings with a credit card.

The first e-Port equipped, Pre-Paid Express kiosk orders will appear shortly in Alamo and National rent-a-car offices, nationwide.

Pre-Paid Express, which revolutionized the purchase and servicing of pre-paid wireless is owned by Global Opportunities, Inc. of Fort Lauderdale, FL. Its fully automated kiosk offers everything from cellular phones and pagers, to pre-paid telephone calling cards. USA Technologies is a leader in cashless transaction and interactive media technology and associated financial services. Its revolutionary e-Port technology provides consumers the ability to make vending purchases with the swipe of a major credit card or bank debit card. The e-Port device also offers interactive media services.

Kuba Farbiarz, Business Development Managing Director, Global Opportunities, said he expected USA Technologies’ e-Port swipe card technology to increase Pre-paid Express revenue by up to 40 percent annually.

“We see e-Port providing enormous benefits — everything from providing credit, added convenience of ease of use, and remote audit capability. We already have deployed Pre-Paid Express kiosks into various countries; and our objective is to have them located wherever consumers most frequent, such as: airports, hotels, colleges, supermarkets, and malls,” Mr. Farbiarz said.

“Pre-Paid express is an innovator in the vending industry and it’s USA Technologies’ objective to help them bring the latest technologies that will add value and consumer satisfaction to their offerings,” said Stephen P. Herbert, President and Chief Operating Officer of USA Technologies. “e-Port, with its ability to collect supply chain — or — “route” data, allow consumers to make purchases with a credit card, and to view interactive media such as news, sports and weather, will not only improve the value we help Pre-Paid Express bring to their customers, but will help generate greater revenue for our partner through increased sales and placements of kiosks and vending machines.”

Surveys show that the pre-paid telephone calling card industry alone would be a $10 billion opportunity by the close of 2001. “There is growing demand for pre-paid services such as that offered by Global Opportunities, and when combined with our e-Port technology, we see the demand for Pre-Paid Express vending machines growing rapidly worldwide,” said Mr. Herbert. “Furthermore, the worldwide wireless and cellular phone market is in a period of explosive growth and USA Technologies is delighted to partner with Pre-Paid Express to bring this services to consumers on the go,” he said.

The contract with Global Opportunities for the first time moves e-Port into the non-traditional vending marketplace. Mr. Herbert said it was further evidence of e-Port fundamentally changing the vending industry, from one offering largely beverages and snacks, to almost any commodity and service, and the ability to conduct e-business. “We’re moving into entirely new vending opportunities,” he said.

“The British Postal Service has signed an initial contract for 1000 Pre-Paid Express kiosks with e-Port technology, to be deployed into this nation’s top locations,” Mr. Farbiarz said.

e-Port is the world’s first non-PC e-commerce device that can be embedded into vending machines, gas pumps, office equipment and almost any kind of point-of-sale terminal. It comes fitted with an interactive, video screen that features rotating banner advertisements, giving vending machine owners the ability to operate electronic “storefronts” and provide free access to media such as news, sports and weather.

About USA Technologies

USA Technologies is recognized as a leader in cashless transaction and interactive media technology and associated financial services. USA Technologies provides credit card-activated and other cashless systems, allowing end users, ranging from consumers to business professionals, to communicate, conduct business or make ordinary commerce transactions, outside the home or workplace. USA Technologies is an IBM (NYSE: IBM) Business Partner and an inaugural member of the Sprint Enabling Application Service Provider Program for e-commerce. It also has established relationships with a number of global IT, multimedia and telecommunications companies, including RadiSys Corporation, Double Click, Inc., and Xerox Corporation. Visit the USA Technologies home page at [][1].



Jalda payments

VeriFone and EHPT have teamed to create an integrated Internet payment solution that handles both micro- and macro-payments for value-added e-services using the ‘Jalda’ payment technology. The Swedish firm, EHPT, is a joint venture between Ericsson and Hewlett-Packard and developer of ‘Jalda’. Payment service providers will be able to use the ‘Jalda’-based ‘EHPT SAFETRADER’ payment system and VeriFone’s ‘e-Payment Server’ product to handle micro- and macro-payment transactions for e-services, as well as the reloading of the accounts from which micro-payments are deducted, and all infrastructures required to support it. VeriFone says the anticipated surge of micro-payments for streaming video, music and on-line gaming will drive the new technology. VF also notes that many people think Internet based services are restricted to what they can access through their PC, but e-services will become ubiquitous — available through a wide variety of Internet-enabled devices including cell phones, vending machines, point-of-sale terminals, handheld PDA’s, and many others.


Seinfeld Returns

Jerry Seinfeld has returned to pitch American Express card products. The new 30-sec and 60-sec TV spots will debut on this weekend’s Academy Awards. The new commercial is Seinfeld’s first new creative work to appear on network television since the AmEx commercial titled “Drugstore” aired in 1999 which promoted double AmEx points at drug stores nationwide. In the new commercial to air Sunday night, Seinfeld discovers many uses for his American Express Card at the hardware store as he humorously tries to fix a broken cuckoo clock in his New York apartment. The commercial is a collaborative effort of Seinfeld and Ogilvy & Mather. AmEx has historically debuted Seinfeld spots during big events including the Super Bowl. The new AmEx spot will be available on Cardwatch ([][1]).(CF Library 1/19/99; 3/9/99).

[1]: /cardwatch/categories.html


Nordstrom ATMs

Core Data Resources, a leading electronic funds transfer processor, was selected as the exclusive provider of automated teller machine installations at Nordstrom stores nationwide. Nordstrom, Inc., one of the nation’s leading fashion specialty retailers, has 122 US stores located in 24 states and is implementing the ATMs as a courtesy and service to its customers. The NCR branded machines will be installed in all Nordstrom stores by fall 2001.

“We are excited to improve our offering of service to include ATMs that will provide convenient access to cash as well as information regarding Nordstrom merchandise, sale and promotional events,” said Kevin Knight, president, Nordstrom Credit and Customer Relationship Marketing. “We’re very pleased to be able to offer this convenience in our stores and we believe it will enhance our customers’ overall experience when shopping with Nordstrom.”

Core Data Resources will own and operate the fleet of machines and is responsible for managing all internal functions such as processing, vault cash and settlement services. “We feel very fortunate to partner with a premiere retailer like Nordstrom,” said Todd Clark, executive vice president, Core Data. “Nordstrom provides an excellent backdrop to showcase our end-to-end solutions for ATM processing.”

“Core Data Resources’ commitment to customer service and expertise in providing innovative transaction processing business solutions made them the obvious choice for Nordstrom,” said Knight.

Nordstrom, Inc. is one of the nation’s leading fashion specialty retailers, with 122 US stores located in 24 states, including 78 full-line stores, 38 Nordstrom Racks, three Faconnable boutiques, two freestanding shoe stores, and one clearance store. Nordstrom also operates 20 Faconnable boutiques throughout Europe. Additionally, Nordstrom serves customers through its online presence at [][1] and through its direct mail catalogs. Nordstrom, Inc. is publicly traded on the NYSE under the symbol JWN.

Core Data Resources, a frontrunner in the transaction processing business, delivers a dependable suite of real-time electronic payment services to independent sales organizations and financial institutions nationwide. Dial-up and leased-line ATM driving, ATM management, data processing, and gateway services are a few of Core Data’s areas of specialization. Core Data is currently the processing solution for over 25,000 thousand ATMs in the US. The company is headquartered in Amarillo, Texas and manages offices in Atlanta and Dallas. For more information, please visit [][2] or call 1-800-658-6677.



Wireless Ads

SkyGo, Inc. officially launched its ‘Mobile Advertising Platform’ yesterday. The firm recently completed a pilot and study with VISA, NextCard, and Catalina Marketing. Using ‘SkyGo MAP’, credit card issuers can deliver contextual ads within content; targeted, permission-based alerts; or a browse-able ad shopping channel. The suite of SkyGo products include ‘SkyServer’ and ‘SkyStudio’. SkyGo offers ‘SkyServer’ in two editions to enable carriers and publishers to deliver targeted interactive ads and sponsored content to mobile phones, PDAs and pagers. The ‘SkyServer’ platform enables one-click purchase from an advertisement and also integrates with third-party rewards programs. ‘SkyStudio’ creates interactive ad types and supports a broad range of devices and protocols. In addition, ‘SkyStudio’ enables campaign optimization, allowing advertisers to manage creative rotation and frequency. (CF Library 3/8/01)



Abbey National is selling its credit card business to MBNA Europe for
slightly more than $400 million. Under a five-year deal, Abbey will become
an agent of MBNA in the UK market. Reportedly MBNA paid an 18% premium for
the Abbey card portfolio. Abbey currently has
about 550,000 cardholders or about a 1.3% market share in the UK. MBNA and
Abbey will launch a new series of agent VISA cards in about 90 days which
will include cashback and platinum cards.