Datacard & Providian

The smart card age began in earnest for Total System Services, Inc. when the company began issuing Visa Smart Debit/Credit cards for Providian Bank of San Francisco, one of the first U.S. financial institutions to issue smart cards.

TSYS worked closely with Datacard Group for the past several months to prepare for the program. Smart card experts from thE two companies collaborated to implement a robust, reliable and highly secure smart card issuance infrastructure.

![][1] Both Providian and TSYS quickly deemed the smart card issuance process a success. One of the keys to that success is a new smart card scripting process, defined by GlobalPlatform, which greatly simplifies the smart card personalization process.

“Smart card issuance is far more complex than simple magstripe card issuance, with formidable security and data handling considerations,” said Richard Cogar, director of smart card services for TSYS. “But the card personalization solution Datacard provided made the process fast and easy.”

The smart card architecture includes Datacard’s Smart Card Personalization Manager (SCPM), an integrated Personalization Preparation Process (P3) from Zaxus, and card personalization systems equipped with secure, high-speed smart card modules. The most critical element of the new infrastructure is the Datacard(R) Personalization Solution for Open Platform cards–a scripting process used for smart card personalization and data generation.

The Datacard solution is based on standards for Open Platform cards established by GlobalPlatform, an association comprised of executives and technical experts from cross-industry smart card organizations of which Visa, Datacard and TSYS are all members.

Prior to Datacard’s implementation of GlobalPlatform’s Card Configurator and Script Builder process, smart card issuers were required to create unique technology dependent solutions for each smart card and application portfolio personalized. For service bureaus and card issuers, this created a significant obstacle in terms of cost and production time.

“We’re thrilled that TSYS’ efforts were productive, secure and successful right out of the gate, because this is the first commercial implementation of GlobalPlatform Card Configurator and Script Builder Process,” said Bob Beer, vice president of Datacard’s smart card solutions group. “We’ve seen excellent results in other beta tests, and we were expecting great things from the TSYS installation, but we’re still tremendously excited to see the solution perform so well.”

“The time and cost savings we get from this generic personalization process makes smart card issuance a profitable business proposition for us and our clients,” Cogar said. “Our clients expect us to get cards to market quickly, affordably and securely, and this solution enables us to meet those expectations.”

“Smart cards hold tremendous promise for consumers, card issuers and application providers. They offer a new world of power, flexibility and security,” said Steve Brown, chairman of GlobalPlatform’s board. “I believe we’ll see rapid, worldwide adoption of smart cards as companies such as Datacard, TSYS, and Providian continue to rally around consistent, global standards.”

Bill Buchanan, senior vice president of Providian Financial sees similar opportunity. “We’re delighted with the success of the program and the efforts of both TSYS and Datacard,” Buchanan said. “Providian is committed to delivering products that offer great value and superior functionality, and smart cards will be a central part of that strategy.”

The Datacard solution offers a flexible, modular design that will allow TSYS to quickly expand its smart card capabilities, according to Cogar.

“Datacard has removed time and cost from the smart card issuance process,” Cogar said. “This solution and the experience of launching a successful smart card program positions us to help more of our clients implement their smart card strategies. It’s an exciting time for us.”

Datacard Group is a world leader in innovative plastic card personalization and identity management solutions. The company provides its customers with integrated systems for a variety of financial, identification and healthcare applications. A diverse solutions portfolio features a broad range of card-related products and services, including the world’s best-selling card personalization and printing systems. Datacard Group also offers smart card life cycle management software, smart card personalization systems and applications, custom solution development and products designed to enhance card issuing operations. Datacard Corporation, doing business as Datacard Group, is privately held and based in Minnetonka, Minn. Datacard Group serves customers in more than 120 countries. ([][2])

TSYS provides global commerce solutions. With more than 195 million accounts on file, TSYS facilitates the payment exchange between buyers and sellers. TSYS and its family of companies offer a full range of acquiring and issuing business services from accepting electronic payments for goods and services to credit applications and collections for credit, debit, commercial, stored value, retail and chip accounts. TSYS has offices in the United States, Europe, Mexico, Canada and Japan, and processes in 21 countries and 11 currencies. Based in Columbus, Ga., TSYS (NYSE: “TSS”) ([][3]) is an 80.8 percent-owned subsidiary of Synovus Financial Corp. (NYSE: “SNV”) ([][4]), No. 8 on FORTUNE magazine’s list of “The 100 Best Companies To Work For” in 2001. For more information, contact

[1]: /graphic/providian/providian.gif


BillingZone Signs P&G

PNC Bank and BillingZone, LLC Tuesday announced the addition of The Procter & Gamble Distributing Company (P&G) as a new customer on the BillingZone business-to-business electronic bill presentment and payment service. Through BillingZone, P&G will now offer online presentment of its invoices using the Internet, while at the same time offering its customers electronic payment ability.

Ranked 23 among Fortune 500 companies, P&G contracted with PNC Bank, piloting first in the United States and potentially expanding to other P&G markets after completing a successful pilot.

BillingZone, a joint venture formed by PNC Bank and Perot Systems Corporation, was launched in March 2000. Its business-to-business electronic bill presentment and payment services are marketed to PNC’s business customers as well as to customers of other banks.

“PNC Bank and BillingZone are a winning combination steeped in experience with and an understanding of the complexities of business-to-business (B2B) e-commerce,” said Craig Brinkman, global accounts receivables manager of P&G. “This offering is aligned with P&G’s goal of providing additional solutions to our customers leveraging the power of the web. We believe we can reduce our cost-per-invoice, improve cash flow and enhance customer satisfaction via online tracking of inquiries and disputes. P&G customers will also benefit from the ability to schedule payments, automate the dispute process and better manage cash flow.”

“Electronic bill presentment and payment is designed to achieve the same benefits as EDI (electronic data interchange), sharing electronic data and information between companies while limiting up-front investments and infrastructure costs,” said Francine Miltenberger, executive vice president and division executive, PNC Bank Treasury Management. “Even customers with no e-commerce experience can now benefit from efficiencies gained through offerings such as EBPP.”

BillingZone is the only B2B EBPP consolidator model, providing payers the ability to view and to pay bills from multiple billers through one online site. Through the BillingZone service, businesses can issue invoices and receive payments as well as track the status of these transactions from multiple vendors or customers that are also BillingZone participants.

PNC Bank is one of the top ten Treasury Management providers nationwide and has a long history with P&G that dates back at least six decades and includes a wide range of receivables and payables services.

“Corporations such as P&G are searching for new opportunities to improve operating efficiencies, to transform critical receivables processes and to enhance customer service,” said Miltenberger. “To meet the needs of our customers, we committed the past 12 months and more than $50 million to pioneer several advanced receivables solutions. One of these efforts was our investment in BillingZone and its EBPP solution.”

“BillingZone is delighted that such a global, prominent company as P&G has selected us as its solution for B2B EBPP,” said Eric Smith, chief executive officer of BillingZone. “Given Procter & Gamble’s reputation for focusing on its customers, we believe that this relationship will significantly accelerate the adoption of B2B EBPP by business payers. In addition, we are excited to see the momentum building with our bank channel partners as they bring their customer base to BillingZone.”

About PNC Bank Treasury Management

PNC Bank Treasury Management is a business unit of PNC Bank, which is a member of The PNC Financial Services Group, Inc. PNC Bank is one of the top ten treasury management providers in the nation, maintaining its position as an industry leader with a diverse mix of advanced products and services. PNC Bank Treasury Management helps companies manage their finances by integrating their receivables, payables, investment and information reporting activities into one streamlined system.

Over the past year, PNC Bank Treasury Management has introduced several industry-leading innovations. These include: A/R Advantage, state-of-the art receivables imaging technology; Internet Service Center, an expanding portal to online customer service and treasury management services; Digital Community Settlement Service, an online payment and settlement solution that supports the B2B e-commerce community; and BillingZone, a joint venture between PNC Bank and Perot Systems Corporation that offers a business-to-business electronic bill presentment and payment service, providing businesses with a consolidator model for presenting and paying invoices on the Internet. For more information, visit PNC Bank Treasury Management on the Web at [][1].

About The PNC Financial Services Group, Inc.

The PNC Financial Services Group, Inc. (NYSE: PNC), headquartered in Pittsburgh, PA, is one of the nation’s largest diversified financial services organizations providing regional banking, corporate banking, real estate finance, asset-based lending, wealth management, asset management and global fund services.

About BillingZone, LLC

BillingZone, LLC offers a business-to-business electronic bill presentment and payment service that provides businesses a consolidator model for presenting and paying invoices on the Internet. The service is expressly designed to meet the needs of corporate billers and payers and provides to payers the convenience of paying multiple bills from participating billers at one site. BillingZone helps companies streamline the complexity of invoicing and payment processes, realize significant cost savings by eliminating paper and manual processes, and speed up the communication between companies and their customers. BillingZone, LLC is a joint venture of two industry leaders, PNC Bank, N.A., a member of The PNC Financial Services Group, Inc. (NYSE: PNC), and Perot Systems Corporation (NYSE: PER). For more information, contact BillingZone, LLC at 412-705-3000 or via e-mail at Additional information is available on the company’s web site at [][2].

BillingZone, and the BillingZone logo are trademarks of BillingZone, LLC.

About Procter & Gamble

Established in 1837, Procter & Gamble markets approximately 300 brands to nearly five billion consumers in over 140 countries. These brands include Tide(R), Ariel(R), Crest(R), Pantene Pro-V(R), Always(R), Whisper(R), Pringles(R), Pampers(R), Olay(R), Iams(R) and Vicks(R). Based in Cincinnati, Ohio, USA, P&G has on-the-ground operations in over 70 countries and employs more than 110,000 people worldwide.



Hyper Deal

Acquirer Merchant Services, Inc., has awarded Hypercom with a contract valued at more than $6.8 million. Under the terms of Tuesday’s deal, Merchant Services will provide Hypercom’s card payment terminals and peripherals to 60,000 merchants in the retail, hospitality and emerging market sectors. The roll out is expected to be completed within the next 12 months. In conjunction with this roll out, Merchant Services will deploy Hypercom’s ‘ePic ICE’ family of touch-screen card payment terminals. The deployment of screen-based ‘ICE’ terminals is the first phase in embracing Hypercom’s ‘ePOS-infocommerce’ framework, a point-of-sale payment and Internet delivery platform.


GPN Expands ISO Deal

Global Payments Inc., formerly NDC eCommerce, will expand its sphere of services to one of the nation’s largest Independent Sales Organizations, Retriever Payment Systems by providing merchant accounting support services — making the payment relationship completely end-to-end.

“Global Payments has always been our preferred provider,” said William H. Higgins, president of Retriever Payments Systems. “Global has consistently demonstrated the ability to provide the products we need, and at the same time provide a superior level of customer support during our rapid expansion. The lexibility of their merchant accounting system, coupled with their risk management tools, will help strengthen our relationship with Global into the future.”

President and CEO of Global Payments, Paul R. Garcia, said, “We have a valued, longstanding processing relationship with Retriever Payment Systems and we are pleased to be able to enhance this partnership by providing additional merchant support. With this agreement, not only will we continue as Retriever’s preferred front-end provider, we will deliver cost-effective, merchant accounting services, as well.”

Based in Houston, Texas, Retriever Payment Systems is one of the largest Independent Sales Organizations in the country, marketing to sales organizations that resell its products and services. It supplies technologically superior products from top POS vendors to restaurants, retail and lodging businesses, and to the mail and telephone order industry.

Global Payments Inc. is a leading provider of electronic transaction processing services to merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations. Global Payments offers a comprehensive line of payment solutions, including credit and debit cards, business-to-business purchasing cards, gift cards, check guarantee, check verification and recovery, terminal management and funds transfer services.


Trintech 4Q/00

Trintech Group reported this morning that revenues for the fourth quarter ending Jan 31 were $15.5 million compared with $9.0 million for the same period last year. The growth in revenue reflects demand for Trintech’s secure eCommerce payment infrastructure solutions which saw license revenue grow to $6.2 million, an increase of 80% over fourth quarter license revenue last year of $3.5 million. Services revenue for the fourth quarter grew 363% to $2.6 million from $552,000 in the fourth quarter last year. Product revenue in the fourth quarter grew 34% to $6.8 million compared with $5.0 million in the fourth quarter last year. For complete details on Trintech’s 4Q/00 results visit CardData ([][1]).



Culligan Credit Card

Water treatment leader Culligan recently announced that it will now offer consumers another convenient alternative payment method — the Culligan credit card through Conseco — to complement its existing installment financing program offered through Aqua Finance. With both programs, consumers can receive instant approval and have the option of paying on a monthly basis(1) when purchasing quality water softeners and state-of-the-art drinking water systems through Culligan’s nationwide dealer network.

Larry Holzman, general manager of Culligan’s Household Business Division, said, “Consumers purchase Culligan products for a variety of reasons — among them, Culligan’s strong, reliable brand reflects the quality of its products, and the Culligan Man offers water treatment knowledge, expert equipment installation and after-installation service. And now, consumers have one more reason to choose Culligan — our consumer-friendly payment plans!”

“These alternative payment options fit nicely with Culligan’s corporate strategy,” said Mike Reardon, Culligan’s president and chief operating officer. “We feel that they not only help distinguish Culligan from the competition, but also emphasize our overall commitment to consumers and our dealers.”

Culligan manufactures and distributes bottled water and water treatment products for retail, household, and commercial applications worldwide. A division of USFilter that is owned by global water treatment leader Vivendi S.A., Culligan is among the most widely recognized brand names in the world, having been in business since 1936. Vivendi is a leading provider of commercial, industrial, municipal, and residential water and wastewater treatment products and services. For more information, Culligan invites you to visit its website at [][1] as well as those of USFilter ([][2]) and Vivendi ([][3]).



MIST 4Q/00

MIST Inc. reported results for the first quarter of the 2001 fiscal year.

Revenue for the quarter was $4.9 million compared to $6.5 million for the same period in 1999. The decline was due to the acceleration of purchases in 1999 in preparation for the Year 2000. In the first quarter of fiscal 2000, the Company was completing a number of certifications required to sell wireless units. Several of the certifications were not completed until late in the quarter, which delayed the Company’s ability to sell its wireless products in the US.

Operating loss from continuing operations for the first quarter was $1,800,000 compared to income of $661,000 for the same period in the prior year. Income from discontinued operations was $928,000, compared to a loss of $390,000 for the same period in the prior year. Discontinued operations includes the results of the US card facility up to November 14, 2000, the date it was sold, the results of the Canadian card facility, which was sold in February 2001 and the results of NBS Holdings Limited. The Company recorded a gain on the sale of the US card facility of $9.3 million during the quarter. Net income applicable to common shares for the quarter was $7.1 million, or $0.21 income per share on a fully diluted basis, compared to a loss of $124,000, or ($0.00) loss per share on a fully diluted basis for 1999.

Operating highlights include:

– The Company focused its efforts on completing wireless network certifications in preparation for the introduction of two new products: FreedomGateTM and MIST Freedom III. MIST Freedom III (“FIII”) is nearing completion and should be available for sale in April of this year. FIII is a desktop, Internet enabled, wireless point of sale transaction terminal with a touch screen. FIII was designed to take full advantage of the features of FreedomGate, our software platform for enabling wireless transactions and eCommerce. FreedomGate should be available to select customers during the second fiscal quarter of this year, and more widely available in the third quarter of this fiscal year. The Company was also successful in certifying MIST Freedom II with several large US based transaction processors. These certifications are essential to sell the product in the US market.

– Development of MIST FreedomSped was completed and will be available for sale during the second quarter of the fiscal year. FreedomSped is a secure pin entry device, or pinpad, that supports smart card transactions. It is available for our wired Turbo product, MIST Freedom III or may be attached to PC based cash registers, allowing customers the opportunity to cost effectively serve the growing smart card market.


“It is a very exciting time at MIST. Development of FreedomGate and MIST Freedom III are nearing completion, and customer reaction to our technology has been very positive,” stated Charles E. Lee, President and CEO of MIST Inc. “We look forward to bringing our customers great technology and innovation this year. Our re-organization is nearly complete and our energies are entirely focused on bringing our new wireless products and services to market successfully.”

About MIST Inc.

MIST Inc. (TSE: MIS), a leading global provider of wireless transaction-enabling technologies, is in the business of designing, manufacturing, and distributing wireless and wired Point-of-Sale (POS) solutions, including FreedomGateTM, our wireless enabling gateway platform. MIST’s clients include Canadian and international banks, financial institutions, credit and debit card processors, as well as retail, hotel, restaurant, healthcare, and loyalty customers. The “MIST Freedom” family of wireless transaction terminals was developed to complement its range of existing products. MIST has business offices in Canada, and the United States.

For more details on MIST earnings visit CardData ([][1]).



FDC Europe

First Data Corp. officially announced Monday that it has changed the trading name of its UK subsidiary FDR Limited to First Data Europe. FDE serves more then 50 financial institutions, 450,000 merchant locations, and 28 million cardholders in the United Kingdom, Germany, Spain, The Netherlands and the Middle East. First Data Europe already processes nearly seven million smart card accounts, which is expected to grow to 10 million by year-end 2001. FDE has provided credit and debit card-processing services in Germany through an agreement with BayerischeHypothekenWechselBank AG (Hypo Bank) since 1996. FDE now processes approximately one million accounts for its six German clients who also include Advance Bank and Dresdner Bank. First Data began its operations in Spain as First Data Iberica in 1997 through a joint venture with Negocios Informaticos, S.A.. Last year, First Data Iberica processed more than 90 million transactions on behalf of merchants and held 360,000 cardholder accounts on file. First Data’s merchant processing operation currently handles all transaction processing for Lloyds TSB and HSBC in the United Kingdom.


E*Trade ATM

E*TRADE Access Inc., a wholly owned subsidiary of E*TRADE Group Inc., has selected Postilion software by Mosaic to enhance the performance of the E*TRADE ATM network. Postilion’s modular system will enhance efficiencies by providing a more streamlined environment for processing and monitoring transactions. Immediate upgrades also include a new on-screen transaction interface.

In addition, by implementing Mosaic’s Postilion system, E*TRADE Access is taking an important first step to creating the first ATM network that will provide customers with access to both E*TRADE Bank accounts and E*TRADE Securities brokerage accounts(1). Using Postilion’s flexible middleware solution, E*TRADE Access will develop the functionality that allows customers to make withdrawals, perform balance inquiries and transfer funds between their E*TRADE Bank and E*TRADE Securities brokerage accounts. Mosaic’s Postilion system will route transactions in a secure environment, connecting E*TRADE Bank, E*TRADE Securities and the E*TRADE Access ATM terminal. Integration of the Postilion system into the E*TRADE ATM network also lays groundwork for future development of advanced ATM functionality.

“The adoption and integration of Postilion is fundamental to the future of E*TRADE’s ATM strategy,” said Doug Steck, Head of E*TRADE Access. “This transitions the machines into a next-generation network of ATMs with Windows NT-based operating systems. Mosaic has created a dependable application that will allow E*TRADE to continue down its path of delivering unique products and services currently unavailable through other ATMs.”

The E*TRADE ATM network differentiates E*TRADE Group in the market for online financial services. The company plans to use the network to advance overall growth, revenue diversification and profitability while serving as a cost-effective delivery channel for cross-selling the company’s growing range of integrated financial products and services.

“Working with E*TRADE Access represents an exciting opportunity to provide a system that addresses both physical and virtual financial worlds,” said Johan Dreyer, executive chairman of Mosaic Software. “We are proud that the Postilion system was selected to satisfy the growing needs of such a dynamic, ground-breaking and successful organization.”

About Mosaic Software

Mosaic Software is a leading provider of Microsoft Windows NT-based electronic funds transfer (EFT) software. Mosaic’s Postilion product is used worldwide for ATM driving/monitoring, EFT switching and routing, POS credit/debit card transaction processing, Internet/call center payment authorizations, WAP and mobile commerce applications. Mosaic Software has offices in the United States, United Kingdom, South Africa and Australia. With more than 500 installations, clients include ATM owners, financial institutions, retailers, card issuers, Internet service providers, telco data processing servicing providers and some of the foremost players in the emerging online industry.

About E*TRADE Access

E*TRADE Access Inc. is a wholly owned subsidiary of E*TRADE Group Inc. Founded in 1993, the Company is a pioneer of the independent ATM industry and the nation’s largest off-premise ATM network providing a turnkey solution for a growing number of consumer-based businesses. With a network of 35 dealers and more than 10,000 ATMs, E*TRADE Access is the third largest ATM network nationwide based on ABA Data as of July 27, 2000. The company offers a proprietary centralized network operations center providing 24 x 7 remote monitoring and real time distribution of software and services.

About E*TRADE Bank

E*TRADE Bank is a wholly-owned subsidiary of E*TRADE Group, Inc. Deposits at E*TRADE Bank are insured up to $100,000 by the FDIC. Based on FDIC data as of February 5, 2001, E*TRADE Bank is the nation’s largest pure-play Internet bank and is the only pure-play Internet bank to be ranked among the top 19 federally chartered U.S. savings banks based on both assets and deposits. As of December 31, 2000, E*TRADE Bank had over $11.0 billion in assets, more than $5.6 billion in deposits and over 362,000 customer accounts. E*TRADE Bank can be accessed at or 1-800-ETBANK-1.


E*TRADE is a global leader in online personal financial services, offering value-added investing, banking and research features, premium customer service and a redundant, proprietary Stateless Architecture(R) infrastructure. In addition to the U.S., E*TRADE presently serves customers in Australia, Canada, Denmark, Korea, Japan, New Zealand, Norway, South Africa, Sweden, and the U.K., through branded web sites. E*TRADE Securities, Incorporated (Member NASD/SIPC) and its parent company, E*TRADE Group, Inc., have offices in Northern California and in other major business centers in the U.S. and worldwide.


Prism POS

Paymentech’s Prism Processing Services has introduced two new POS offerings for community bankers and their merchant customers. Prism is offering Telecheck’s ‘Eclipse’ terminal, the first integrated payment terminal designed to provide support for electronic check conversion, and a proprietary gift card solution that will integrate gift card transactions with credit card processing. Prism’s solution, featuring the ‘Eclipse’ terminal, offers a comprehensive payment solution that includes the TeleCheck ‘Electronic Check Acceptance’ service. Prism’s gift card solution is processed through Paymentech Network Services and eliminates the need for extra equipment and stand-beside applications when the merchant utilizes Paymentech for authorization and data capture services. Prism gift card services encompass customized plastic, transaction processing, specialized reporting, help desk support and database maintenance


MPS & Universal

Fifth Third Bank’s Midwest Payment Systems has signed a definitive agreement to acquire 49% of the outstanding common and preferred stock of WI-based Universal Companies. Universal has a client base of over 50,000 merchants comprised of small- and medium-sized merchants. In 2000, Universal Companies processed over $4 billion in transaction volume, up from $3.2 billion in 1999. During its two most recently completed fiscal years, Universal Companies generated net revenues of approximately $73 million and $56 million, respectively.


Easiest Online Cards

First USA’s ‘E*Trade Platinum VISA’ card ranked as the easiest credit card to apply for online. Based on benchmark data released yesterday by OR-based WebCriteria, E*Trade Bank ranked highest overall among Internet only banks and traditional bank sites, while Fleet Bank led the traditional banks in ease of use. The research firm says Internet only banks easily beat out traditional bank Web sites for the best credit card application process. Other sites ranked included pure-plays, First Internet Bank and Umbrella Bank, and traditional banks Bank of America, Bank One, and First Union. The sites were ranked in order of the time and effort required to apply for a credit card online according to WebCriteria’s ‘Task Analysis’ service. Internet only banks evaluated had the lowest time and effort with an average of over four minutes, whereas traditional banks had an average of over five minutes to complete the task. The ‘Task Rating’ survey results show: E*Trade Bank and Umbrella Bank with 4 stars; Fleet and Bank One with 3.5 stars; First Internet,, and First Union with 3 stars; and Bank of America with 2.5 stars.