TSYS 3Q/00

Total System Services reported net income for the third quarter of $19.1 million compared to $16.9 million for the same period last year. Revenues for the third quarter of 2000 were $149.0 million, an increase of 8.1%, compared with revenues of $137.8 million for the third quarter of 1999. TSYS also projected yesterday that it does expect the second half of 2001 to be more robust than the first half of 2001. There is an expected increase in revenue in the second half of 2001 highlighted by the scheduled conversion of the Royal Bank of Scotland Group’s portfolio. Preceding this increase in revenue in the second half of 2001, infrastructure costs of global expansion and the loss of the Citibank UCS portfolio. TSYS will incur personnel and equipment costs associated with establishing its international processing center in England as well as initiating a sales branch office in Japan. Citibank deconverted the UCS portfolio to its in-house processing system in August 2000. Due to this, on a comparative basis, revenues for the first half of 2001 will not include revenues from the UCS portfolio when compared to the first half of 2000. For details on TSYS 3Q/00 results as well as historical data visit CardData ([www.carddata.com][1]).

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


Telecom eFalcon

HNC Telecommunications Solutions, a division of HNC Software Inc., announced the availability of its telecom-specific version of the eFalcon Fraud Risk Management Service to communication service providers worldwide.

As carriers increasingly allow customers to pay for services with credit cards, eFalcon can increase carrier profits by reducing lost revenues from charge-backs and by saving valid orders that appear risky.

The telecom-specific version of eFalcon uncovers payment fraud patterns in real time, protecting both consumers and businesses from unauthorized use of credit card numbers. eFalcon is the only solution to provide strategy management and customer service tools to help businesses accepting electronic credit card orders (card-not-present, or CNP, transactions) to save those transactions that appear risky, but are indeed legitimate. Companies that implement eFalcon can also set policies for accepting and rejecting transactions on a global scale, resulting in increased profits and better customer relationships.

HNC offers intelligent payment fraud detection and risk management services that enable telecom carriers to detect credit card fraud in the account pre-activation stage of customer acquisition.

“As carriers introduce new prepaid service plans and flexible credit card payment options over the Internet, they are getting hit hard with credit card fraud. Not only are they liable for losses, carriers with excessive chargebacks can even lose the right to accept credit cards. eFalcon minimizes losses and ensures that carriers can rely upon credit cards — a required payment option in today’s competitive marketplace,” said Tony Patterson, president, HNC Telecommunications.

Carriers can experience CNP fraud when accepting bankcards for pre-activation through multiple sales channels including the Internet and email, voice response units (VRUs) that accept credit card numbers keyed on touch-tone phone dial pads, traditional call centers, and faxed applications for service.

eFalcon is able to recognize the most subtle patterns associated with CNP fraud often missed by less advanced methods of fraud detection. eFalcon uses some of the same advanced technology as HNC’s credit card fraud detection solution for card issuers, Falcon(TM), which protects more than 300 million cardholders today. Falcon is used by nine of the top 10 largest Visa and MasterCard credit card issuers in the U.S., and 15 of the 25 largest bankcard issuers worldwide.

About HNC Telecommunications Solutions

HNC Telecommunications Solutions, a division of HNC Software Inc. (Nasdaq:HNCS) provides end-to-end customer solutions to over 80 wireline and wireless communications service providers that maximize the value of individual customer relationships from acquisition to retention. Carriers using HNC’s telecom solutions include Telefonica Mundo 188, S.A., Telecom Personal, AT&T Local Services; VoiceStream Wireless; Intermedia Communications; Viatel; and Sprint Communications. For more information, visit HNC Telecommunications Solutions at the HNC Web site at [http://www.hnc.com][1] or contact Kim Knouse at 858/799-3600.

About HNC Software Inc.

Headquartered in San Diego, HNC Software is the leading provider of predictive software solutions for the services industry, including financial, telecommunications, insurance and e-commerce. HNC’s suite of predictive software solutions can provide real-time insight into customer relationships based on transaction-level data, helping companies manage their relationships with individual customers. By accurately predicting customer behaviors, these companies can create initiatives to mitigate risk and attrition; improve customer service; develop marketing programs to enhance profitability, and detect fraudulent customer transactions. For more information, visit HNC’s Web site at [http://www.hnc.com][2] or contact Melinda Bateman, HNC Software Inc., 5935 Cornerstone Court West, San Diego, CA 92121, 858/799-3880.

[1]: http://www.hnc.com/
[2]: http://www.hnc.com/


Fleet 3Q/00

Fleet Credit Card Services reported a $600 million jumped in card receivables during the third quarter. However delinquency edged up while chargeoffs edged down. At the end of 3Q/00 Fleet had $14.4 billion in card receivables versus $13.8 billion for 2Q/00. Delinquency climbed from 4.38% in the second quarter to 4.61% for the third quarter. Meanwhile chargeoffs dipped from 5.78% in the second quarter to 5.24% for 3Q/00. Credit card profits have increased 18% over the past year despite an 8% decline in overall credit card revenue. Fleet has taken a leadership role in smart cards with the introduction last month of the ‘Fusion smart VISA’ card. Fleet is the only issuer offering the card directly to the public through its Web site. The other ‘smart VISA’ issuer, Providian, is making its ‘Clear’ smart card initially available to select super prime customers. For complete details on Fleet’s 3Q/00 results as well as prior quarter financials visit CardData ([www.carddata.com][1]).

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


CNP Services

Retail Decisions, a leading card-not-present risk management and online transaction services business for e-commerce, today announced that they have signed a partnership agreement with First of Omaha Merchant Processing, a wholly owned subsidiary of First National Bank of Omaha and one of the USA’s leading credit card processors. The referral marketing agreement will enable First of Omaha to offer Retail Decisions’ risk management and fraud detection services as an extension of their product offerings to clients.

![][1] “First of Omaha Merchant Processing provides credit card transactions and payment solutions for over 70,000 merchants nationwide,” said Carl Clump, CEO of Retail Decisions. “The relationship will enable us to introduce our services to the entire First of Omaha client base and help us develop our position in the fraud protection services industry.”

Faulkner & Gray’s Card Industry Directory lists First of Omaha as one of the top 10 merchant acquiring banks in the world, based on their annual volume of dollars processed. According to Faulkner & Gray, First of Omaha generated $19 billion in revenue from over 260 million transactions last year.

First of Omaha and Retail Decisions are joining marketing efforts to provide customers with added-value solutions. The relationship will provide Retail Decisions with a new distribution channel for their fraud protection services and First of Omaha benefits by being able to offer their clients a leading protection service.

“Retail Decisions is a leader in credit card fraud protection services and provides our telecommunications and service providers with services that they need,” said Nick Baxter, President of First of Omaha Merchant Processing. “As a leader in the merchant processing industry, we are constantly looking for new ways to assist clients in the reduction of chargebacks. Our relationship with Retail Decisions will enable us to further differentiate our merchant services from the competition and provide a more comprehensive payment solution for our clients.”

About First of Omaha Merchant Processing:

First of Omaha Merchant Processing is a premier payment processor specializing in providing service to both the traditional and Internet marketing industry, as well as the traditional face to face card acceptance market. First of Omaha provides financial management and payment processing solutions for large and small retailers, restaurants, lodging merchants, petroleum marketers, associations/franchise groups and banks in both the business to consumer and business to business marketplaces. Known for their superior customer service, First of Omaha specializes in providing clients the latest in card processing technologies. Through development of a diversified product line, First of Omaha has become a leader in the merchant processing industry, assisting clients in the reduction of chargebacks and fraud. First of Omaha Merchant Processing is a wholly owned subsidiary of First National Bank of Omaha and is one of the few remaining in-house bank processors.

First National Bank of Omaha, founded in 1863, is the 32nd oldest nationally chartered bank in existence. First of Omaha’s Web site address is [www.foomp.com][2].

About Retail Decisions

Retail Decisions (ReD) has more than fourteen years’ experience in card-not-present risk management and payment settlement services initially to the telecommunications industry in the United States, and now to e-commerce customers including X.com, iSolve, IPC Media, Paymentplus and DataCash.

ReD’s global e-commerce fraud detection and prevention service, ebitGuard, provide real time risk assessment recommendations. ebitGuard incorporates eFalcon, a neural technology, developed by HNC the leading neural software organization, with a number of other sophisticated processes, databases and CNP experience to provide clients with a fully integrated service that delivers high quality risk management results.

ReD also collates and distributes the UK’s most comprehensive ‘Hot Card File’ of lost and stolen cards, which is continually updated and is available to retailers 24 hours a day, every day of the year. The company currently protects nearly 10,000 retail sites in the UK, principally in high-payment volume sectors. Last year, ReD checked in excess of 1.0 billion transactions, stopping an estimated $190 million in fraudulent purchases. ReD also has offices in South Africa and Australia.

ReD is publicly traded on the official list of the London Stock Exchange under the trading symbol, “RTD”. More information about ReD is available by visiting the company Web site at [http://www.redplc.com][3].

[1]: /graphic/firstofomaha/processing.gif
[2]: http://www.foomp.com/
[3]: http://www.redplc.com/


CardData 3Q/00

Mid-level card issuers continue to post strong increases in 3Q receivables despite modest gains in gross accounts and active accounts. San Juan-based Banponce reported 3Q/00 receivables of $541,542,530 compared to 2Q/00 receivables as $538,162,976. Banponce active accounts stood at 222,785 for the third quarter versus 223,664 for 2Q/00. AL-based Compass Bank reported 3Q receivables of $352,762,754 compared to $329,212,094 for the second quarter. Active accounts at Compass increased slightly from 182,989 to 189,007 between 2Q and 3Q. Meanwhile OH-based FirstMerit reported 3Q/00 receivables of $111,227,931 versus $107,659,843 for 2Q/00. Active accounts grew from 74,367 in the second quarter to 76,342 for the third quarter. For 3Q/00 results on more than 350 U.S. issuers visit CardData ([www.carddata.com][1]).

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


EU Comm Cards

Visa International EU Region and PaySys International, Inc., a global leader in financial transaction processing applications, announced a marketing agreement to provide Visa EU’s member banks with a next generation commercial credit card transaction processing system.

![][1] This agreement marks the debut of PaySys’ new Commercial Payment System, developed on its new dBB technology platform. Currently, it is the only single payment processing system that combines real-time transaction processing capabilities with unlimited hierarchies and best-of-breed billing, payment and account management technologies. Visa EU plans to utilize each of these features to give its member banks the flexibility and efficiency to gain a competitive edge in the Internet economy.

After conducting extensive interviews among its member banks, Visa EU decided to create the ideal commercial card payment processing system to solve the difficult problems posed by international and Internet requirements. It created the specifications for such a system from the responses of its member banks.

PaySys’ new Commercial Payment System provides real-time, Internet-based payment and transaction-level data management in multiple languages and currencies. Initial testing revealed that the system solved the vast majority of the concerns voiced by Visa EU’s member banks — without any customization. The two companies have agreed to work together to incorporate all of the needs of the member banks in the PaySys built system. The final system will be available to member banks in 2001.

“We continuously try to provide our member banks with the best products and services available that will give them a competitive edge,” says Adrian New, Senior Vice President of Commercial Products at Visa International EU Region. “That was the impetus for creating the ideal commercial card payment processing system. PaySys’ Commercial Payment System not only meets the current payment demands faced by our members, it is also built with such flexibility that the banks will be able to continue to meet ever-changing demands in the future.”

“The advent of the Internet and the explosion of global commerce has created an environment that requires banks to have real-time transaction posting capabilities on a global scale,” said Stephen B Grubb, chief executive officer of PaySys. “Banks also need the ability to modify their processing systems quickly and easily to meet rapidly changing market demands. These are tough, complicated demands, but PaySys has leveraged two decades of payment processing experience to build such a system — something which no other company has been able to do.”

PaySys’ Commercial Payment System provides the core software infrastructure that enables the automation of payment and data transaction processes. More specifically, the system manages transactions from beginning to end, including account set up and management, transaction processing and billing, customer relationship management and payment processing for commercial credit cards and all forms of electronic business-to-business payments.

Steven M. Putney, executive vice president and general manager of the Commercial Payment Systems Division at PaySys, described how banks will benefit from this next generation processing system. “The system offers three important technological breakthroughs for Visa EU’s member banks. The first is a real-time posting engine that can process high volumes of transactions 24 hours a day, seven days a week in any language, dialect and currency. The second is its unlimited hierarchies, which will allow each member bank to customize payment parameters to match the individual needs of every customer.

The third is the proven ability to modify and expand the system quickly and easily to handle virtually unlimited levels of transaction growth, while also meeting ever-changing business and customer requirements. Only PaySys combines all of these attributes into one single system.”

About PaySys

PaySys International, Inc. is an established global leader in financial transaction processing applications, offering web-enabled transaction processing solutions. With industry-leading products such as VisionPLUS, CardPac and VISION21, and its latest Commercial Payment System, PaySys systems process more than 180 million accounts in over 35 countries and on 6 continents. Headquartered in Atlanta, PaySys has offices in the United States, England, Ireland, Singapore, China, Costa Rica and Australia. For more information, call PaySys at 1-770-564-8000, or visit the company’s web site at [http://www.paysys.com][2].

About Visa Commercial Products

Visa Commercial Payment Solutions are tailored to meet the needs of its member banks and corporate clients globally. Visa International is experiencing 40% annual growth rates across its commercial card product lines. There are more than 12 million Visa commercial cards issued globally. Visa International’s three commercial card programs, Visa Business, Visa Purchasing and Visa Corporate respectively focus on: the payment needs of small businesses; the procurement needs of medium to large firms; and the travel and entertainment expenses of medium to large firms.

Visa’s Commercial Payment Solutions continue to be at the leading edge of enhanced data, new technologies and delivery channels, meeting changing commercial market needs. Visa’s business-to-business e-commerce initiatives have included online trading hubs, online procurement strategic alliances and global standards for worldwide interoperability.

About Visa International

As the “World’s Best Way to Pay,” Visa is one of the world’s leading payment brands and one of the largest payment systems worldwide. Visa plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions and their cardholders. Visa has more than 80 smart card programs in 35 countries and on the Internet, with 23 million Visa chip cards, including 8 million Visa Cash cards. Visa is pioneering SET Secure Electronic Transaction(TM) programs to enable and advance Internet commerce. There are over 1 billion Visa, Visa Electron, Interlink, PLUS and Visa Cash cards, which generate more than US$1.6 trillion in annual volume. Visa-branded cards are accepted at over 19 million worldwide locations, including at more than 627,000 ATMs in the Visa Global ATM Network. Visa’s Internet address is [http://www.visa.com][3].

[1]: /graphic/paysys/paysys.jpg
[2]: http://www.paysys.com/
[3]: http://www.visa.com/


Hypercom Exec Changes

As of Nov. 1, George Wallner, president and CEO of Hypercom will become chairman of the board and chief strategist for the company. Christopher Alexander, who has been president of the Hypercom Transaction Systems Group since July 1999 and with the company since 1993, will assume the position of president and CEO of Hypercom. Jairo Gonzalez will replace Alexander as president of the Hypercom Transaction Systems Group. He has been president of Hypercom Emerging Markets since 1999. Jonathon Killmer will become COO in addition to his current duties as CFO and chief administrative officer. Albert Irato, who has been chairman of the board since July 1, 1999 and was president and CEO from 1992 through 1999, will become vice chairman of the board.


Providian Super Savings

In an effort to encourage more Americans to save for their future, Providian Financial Corporation said Tuesday it will begin offering a new account that pays regular savers about twice the interest rate paid on comparable savings accounts at most depository institutions.

Providian Chairman and CEO Shailesh Mehta said that the company developed its new “Planned Savings Account” in response to a need illustrated in a survey released yesterday, October 17, at a joint news conference with the Consumer Federation of America (CFA), AARP and Providian. The survey shows that Americans are losing tens of billions of dollars in interest income by keeping their money in low-yielding savings accounts.

Mehta said the company’s new “Planned Savings Account” will pay a variable interest rate that is currently three points higher than traditional savings accounts. Consumers who deposit at least $50 by electronic transfer in their account each month, or keep a minimum balance of $1,000, can avoid monthly fees. Based on today’s market rates, the initial rate on the new account is set at five percent for the first depositors.

Designed primarily for Americans with low or moderate incomes, the account will require a minimum initial deposit of $500. The new account will roughly match the yield on money market accounts that typically require account balances of $1,000 or more. The account also offers access to the deposited funds, unlike certificates of deposit or savings bonds, which often tie savings up for years. Deposits placed in the Planned Savings Account, like all deposits placed with Providian National Bank and Providian Bank, are FDIC-insured up to $100,000. Planned Savings accounts can be opened either over the phone at 800-414-9692 or online at .

“Financial institutions should help their customers save wisely,” Mehta said. “Study after study shows Americans don’t save enough, and too many of those who do save aren’t getting the best returns available. Providian is removing many of the more common barriers to savings.”

New Account Addresses Key Savings Barriers

The new account addresses a number of concerns identified by the CFA/Providian survey. The survey shows that many Americans stick with low-yield accounts because they don’t have the funds needed to open money market accounts or because they don’t want to tie up their money for the period required by most CDs and savings bonds.

“The minimum deposit is set at a level that most Americans can afford, and it enables depositors to withdraw their money if they need it,” Mehta said. “This is the type of option consumers need.”

Low-Yield Accounts Cost Americans $30 Billion a Year

Mehta noted the new survey shows that Americans are losing out on at least $30 billion a year by putting too much of their money in low-yield savings accounts.

Data provided by financial institutions show that Americans had more than $1.3 trillion in low-yield savings accounts at the end of 1998, the most recent year for which data were available. About six million Americans hold low-yield savings account deposits of $25,000 or more. Right now, those accounts typically pay about 2.1% interest. Savers would earn an additional $30 billion in interest each year if they shifted to certificates of deposit, Series EE U.S. Savings Bonds or accounts such as Providian’s Planned Savings Account program that pay approximately three percentage points more. They would earn $50 billion in additional interest by investing in accounts such as high-yield certificates of deposit that often pay five percentage points more.

Mehta said that, assuming a five percent interest rate, an individual who put $500 in a Planned Savings Account, and added $50 a month for 10 years, would have $8,500 at the end of that period — about $1,200 more than in traditional savings accounts, which are currently paying about 2.1 percent.

Account Could Help Senior Citizens

The Providian Planned Savings Account should be attractive to older Americans, who tend to hold the largest sums in low-yield savings accounts. The survey shows that nearly half (41.7 percent) of the six million Americans who hold accounts of $25,000 or more are older Americans.

“It is troubling to find that older Americans — many of whom rely on savings for their livelihood — are the very ones who are missing out on precious interest income,” added Mehta. “This account gives seniors a chance to earn more, with the liquidity they require, in an account that looks a lot like the traditional savings account that many older Americans are accustomed to.”

About Providian

San Francisco-based Providian Financial () is a leading provider of lending and deposit products to customers throughout the United States and offers credit cards in the United Kingdom and Argentina. Providian Financial was recently named one of America’s Most Admired Companies by Fortune magazine, the nation’s top financial institution by U.S. Banker magazine, and one of the most technologically innovative companies in the U.S. by Information Week magazine. With a commitment to 100% customer satisfaction, Providian helps customers build, protect and responsibly use credit. Providian has more than $27 billion in assets under management and over 14 million customers.


Trintech & Oracle

Trintech announced it has joined the Oracle Wireless Partner Initiative to provide the wireless payment solution that powers Oracle’s mCommerce platform.

As part of this new initiative, Trintech’s payment technology for mCommerce, PayWare mAccess, will be integrated with Oracle’s 9i Application Server Wireless Edition. This solution will allow wireless operators and service providers to take advantage of a fully integrated and functionally rich mCommerce suite including a powerful payment platform enabling mCommerce transactions.

![][1] Trintech’s PayWare mAccess is a modular, server-based mCommerce payment solution that enables ‘one touch’ payment via mobile devices with sophisticated built-in security features including voice authentication providing a secure and convenient solution for the user. Oracle’s9i Application Server Wireless Edition provides numerous software services designed to support widespread access of all applications via the Wireless Internet by any device.

“We are pleased to be working with Oracle, a leading global software company with a history of providing innovative solutions to e-businesses, to extend this opportunity to the mobile Internet and help eBusinesses to strengthen their mCommerce initiatives,” said Trevor Healy, general manager of Trintech’s mCommerce Business Unit. “Trintech plans to work extensively with Oracle to promote this integrated payment platform so that operators can immediately benefit from the global mCommerce opportunity.”

“For mCommerce to take place, operators must be able to provide a trusted and convenient payment solution to their subscribers,” said Thomas Kurian, vice president, E-Business. “Oracle9i Application Server Wireless Edition has the flexibility and functionality that enables us to integrate with Trintech’s payment product to offer a complete mCommerce solution.”

About Trintech

Trintech is a leading provider of secure electronic payment infrastructure solutions for real world, Internet and wireless transactions. The company, which was founded in 1987, offers a complete range of payment software products for credit, debit, commercial and procurement card applications. Trintech’s secure product range, deployed in over 35 countries worldwide, covers the payment requirements of consumers, card issuing banks, merchant acquiring institutions, merchants, eMerchants, telcos, wireless operators, ISPs/CSPs, portals and large corporations. Trintech’s range of scalable, open systems architecture solutions for UNIX(R) and Windows NT(TM) platforms provides the payment infrastructure necessary to facilitate eCommerce, mobile commerce and the emerging world of television commerce. Trintech can be contacted in the U.S. at 2755 Campus Drive, San Mateo, CA 94403 (Tel:650/227-7000) and in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel:353-1-207-4000). Trintech can be reached on the Web at [http://www.trintech.com][2]. Investor information can be found at [www.trintech.com/investor][3].

About PayWare eIssuer and mAccess

Trintech’s PayWare mAccess is a modular, server-based mCommerce payment solution that enables card issuing banks, portals/ASPs, content providers and wireless network operators to securely process card payment transactions from a variety of wireless devices, including cell phones and PDAs. When deployed in conjunction with Trintech’s PayWare eIssuer, a server-based consumer payment technology, wireless users benefit greatly from enhanced security and “one touch” form fill of mobile commerce merchant payment pages.

About Oracle’s Wireless Partner Initiative

Oracle recently launched its Oracle Wireless Partner Initiative to assist independent software vendors (ISVs), application service providers (ASPs) and system integrators (SIs) deploy wireless portals and Internet applications and services. Oracle’s wireless Internet software includes its market-leading Oracle9i AS Wireless Edition and a set of wireless development tools. The new initiative is part of the Oracle Partner Program.

About Oracle9i Internet Application Server Wireless Edition

Oracle9i AS Wireless Edition (formerly Portal-to-Go) allows companies to wirelessly enable any new or existing internet applications or content for any Web-enabled device including: smart phones, pagers, PDAs, handheld computers, standard phones connected to interactive voice recognition (IVR) systems, etc.

Oracle9i AS Wireless Edition adapts any Internet content to XML and transforms it to any markup language supported by any device (HTML, WML, HDML, VoiceXML, VoxML, SMS, etc.). With its open architecture and use of XML technology, Oracle9i AS Wireless Edition ensures support of current and emerging standards. In addition, Oracle9i AS Wireless Edition provides for location-based services, wireless messaging, wireless e-commerce, and extensive personalization for users and devices, allowing for customization of services as well as device display. Using Oracle9i AS Wireless Edition companies can quickly build or extend existing Web services and applications for the wireless internet.

[1]: /graphic/oracle/oracle.gif
[2]: http://www.trintech.com/
[3]: http://www.trintech.com/investor


Sears Goes eFalcon

Sears, Roebuck and Co. plans to implement eFalcon, the leading real-time Internet fraud detection solution from HNC Financial Solutions, a division of HNC Software Inc., to enhance the fraud detection capabilities on its sears.com Web site.

![][1] Sears selected the system based on its successful experience with HNC’s Falcon Retail fraud detection system, which Sears implemented to help protect its retail card portfolio from fraud losses.

According to Media Metrix Inc., Sears’ Web sites lead the department store retail category in number of visitors, attracting nearly 2.5 million unique visitors in July of this year.

“With the growing number of people shopping at sears.com, we determined that our best choice is a real-time fraud detection system designed specifically for online businesses,” said Ed Barclay, Sears vice president of Asset Protection. “eFalcon affords us the opportunity to enhance our fraud detection capabilities and to leverage our existing relationship with HNC, which has provided us with proven fraud detection solutions that have performed well against our high standards.”

Sears currently uses HNC’s Falcon Retail fraud detection system to protect the credit accounts of more than 60 million customers. The retailer also recently began implementing a credit card-specific Falcon model to protect its new, co-branded Sears Gold MasterCard offering. Sears is the largest issuer of private-label cards, with a card loan portfolio of nearly $27 billion.

“We’re proud to provide our fraud detection solutions to a leading retailer like Sears, which has long been proactive in the battle against fraud,” said Walter Lee, vice president of risk management for HNC Financial Solutions. “eFalcon provides Sears with the most comprehensive online payment fraud detection system available for its Internet operations.”

A recent survey by GartnerGroup of the top 200 Internet merchants found that fraud is their primary concern, since they are liable for disputed purchases in card-not-present transactions, and 93 percent of online transactions are done with payment cards.

eFalcon is an intelligent Internet-credit fraud detection and risk-management solution that lowers fraud losses and increases revenue opportunity for online merchants and service providers. eFalcon uses neural network-based predictive software to examine transaction, customer, and merchant data in real time to enable e-merchants to prevent payment fraud.

About Sears, Roebuck and Co.

Sears, Roebuck and Co. is a leading U.S. retailer of apparel, home, and automotive products and services with annual revenue of nearly $40 billion. The company serves families throughout the U.S. through approximately 860 department stores, more than 2,100 specialized retail locations, and a variety of online offerings accessible through the company’s Web site at [www.sears.com][2].

About HNC Financial Solutions

HNC Financial Solutions is a leader in the development of intelligent customer value management software solutions for the financial services and e-commerce industries. Its powerful suite of real-time decision platforms and predictive business solutions allows firms to automate new account decisioning, optimize marketing efforts, detect fraud, predict profitability, and manage the customer lifecycle. HNC Financial Solutions supports this suite of solutions with a full range of consulting services.

About HNC Software Inc.

Headquartered in San Diego, HNC Software Inc. is a leading provider of predictive software solutions for the financial, insurance, telecommunications, and e-commerce service industries. HNC’s suite of predictive software solutions can provide real-time insight into customer relationships based on transaction-level data, helping companies manage their relationships with individual customers. By accurately predicting customer behaviors, these companies can create initiatives to mitigate risk and attrition; improve customer service; develop marketing programs to enhance profitability; and detect fraudulent customer transactions. For more information, visit HNC’s Web site at [www.hnc.com][3] or contact Melinda Bateman, HNC Software Inc., 5935 Cornerstone Court West, San Diego, CA 92121, 858/799-3880.

[1]: /graphic/hnc/efalcon.gif
[2]: http://www.sears.com/
[3]: http://www.hnc.com/


e-Galleon Card

Schlumberger Tuesday introduced a new range of smart payment cards that offer local customization and the global interoperability of ‘Europay, MasterCard and VISA’ (EMV). With the new ‘e-Galleon’ cards, holders can use the same smart payment card wherever they travel. At the same time, local procedures (the use of a PIN or signature for customer ID, for example) and conditions (such as the perceived level of fraud risk) mean that the card issuer will wish to undertake a degree of customization. The ‘e-Galleon’ offering allows issuers to reflect local practice and strike the right balance between security and speed of transaction. The card can be used off-line to maximize speed and convenience for customers and retailers within high levels of security. Should local conditions require, issuers can specify that certain transactions, those above a certain value for example, should be carried out on-line, as an additional safeguard. The secret of the card’s versatility is its exceptionally powerful processor, supporting high transaction speeds and high levels of security, and the capacity to host multiple applications.


Cross View Solutions

Experian yesterday launched a unique risk management tool which blends debit information with credit data. ‘Cross View Solutions’ will provide shared access to leading nationwide debit and credit databases to facilitate credit card issuers to more confidently offer services to creditworthy consumers with limited or no credit history. Besides Experian’s credit data, ‘Cross View’ collects information from eFunds’ ‘DebitBureau’, the country’s largest single source for debit data, containing more than 2.7 billion records related to checking account opening and closing information, checking account collections data and overdraft histories and check order histories. The repository is updated with approximately 1.7 million records each day, receiving information from more than 82,000 retail locations, 86,000 financial institution locations and other reputable sources. ‘Cross View’ is a highly predictive and customizable resource with real-time access of both credit and debit data, plus prescreen segmentation, account review overlays and account monitoring triggers.