DoD Smart Cards

The U.S. Defense Manpower Data Center confirmed Tuesday it is set to roll-out 4.3 million ‘Common Access Cards’ using ActivCard’s digital identity infrastructure technology. ActivCard is being deployed worldwide by the DMDC to support the issuance and personalization of 4.3 million smart card-based GSA/CAC standard compliant DoD ID badges. To accomplish this, the DMDC has embedded ActivCard digital identity infrastructure software into 1,300 existing ‘Real-Time Automated Personnel Identification System’ workstations, which are installed in approximately 900 locations around the world, including the Pentagon, military bases, aircraft carriers, and other sites. The ActivCard software provides simultaneous and secure connections to two independently managed systems from which user applications and data are acquired. The first system is the DMDC’s ‘Defense Enrollment Eligibility Reporting System’, containing information on over 23 million people. The second system is the Defense Information Systems Agency’s ‘PKI Certificate Management System’. The end result is a system that is deployed worldwide to issue CAC ID badges to all DoD employees and contractors. The new badges will support a wide range of functionality from building access to financial services to digital identity for access to government services and information containing personnel information and processing credentials that enable digital signature, encryption, and strong user authentication.


Smart Chip Snags Voelker

Smart Chip Technologies Inc., Tuesday announced the hiring of Phil Voelker as senior vice president, sales and marketing. The move represents the latest phase of a complete management restructuring that has created an executive management team with over 140 years of electronic payment systems experience.

“We are very excited that an executive with Phil’s experience has joined our team to lead our sales and marketing efforts,” said Jim Williams, SCTN president and chief executive officer. “Phil has a demonstrated capability of building and successfully executing diverse sales and marketing strategies. “The strong relationships that he has developed with many major technology companies and financial institutions will generate new opportunities for our company.”

Voelker comes to SCTN with over 25 years of experience in technical sales, marketing and client management. He most recently was senior vice president of sales for the Teleservices Division of First Data Corp. (NYSE:FDC) in Omaha, Neb. FDC is the world’s leading processor of credit and debit card transactions, supplying services to more than 260 million cardholders and 2 million merchant locations.

As an executive of FDC, Voelker was involved in all aspects of corporate operational planning, and annual and long-term strategic plan development. During his combined eight years with FDC, Voelker was responsible for over $500 million of new contracts and agreements for services in both the telecommunication and financial services markets.

Prior to joining FDC, Voelker has held other senior sales and marketing positions with Nortel, CCI and Honeywell.

Smart Chip Technologies Inc. (SCTN) is the dba of SCHIMATIC Cash Transactions Network, an applications service provider specializing in end-to-end loyalty and cause-marketing solutions. The company is using its patent-protected methodology and its technology to move businesses and consumers from magnetic stripe cards to multiple-application smart devices. SCTN merges the virtual world with the physical world on a single database platform, allowing seamless loyalty solutions for both on- and off-line transactions. Further information can be accessed via the corporate web site, , by contacting Smart Chip Technologies at 801/685-7676, 740 East 3900 South, Salt Lake City, UT 84107 or by writing Smart Chip Technologies at


MoneyMaker Management

The 7th largest ATM network in the USA is beefing up its management. The ‘MoneyMaker’ ATM network has hired a number of new executives including people from the ‘MAC’ network and MasterCard. ‘MoneyMaker’, was recently acquired by Genpass Inc. and is headed by industry veteran Bipin Shah. Bonnie Hill, former top executive at the ‘MAC’ ATM network, has been hired as SVP for Strategic Planning. Douglas Miraglia, formerly SVP at MasterCard, will serve as SVP of Sales and Marketing. Genpass/MoneyMaker has also hired Ronald Bucelli, Martin Pinder, Bonnie Pollard, Richard Schmalbach, and Leah Work as sales and account executives. Bucelli was former SVP for business development of Integrated Delivery Technologies. Pinder is former president of FI Tech Services, a merchant card processor. Pollard was a sales executive with the Concord EPS/MAC network. Schmalbach previously headed sales and marketing at FI Tech Services. Work comes from EDS.


Indentrus Hires Two

Two senior executives with deep experience in financial services and e-commerce security have joined Identrus LLC, the world’s leading provider of identity trust for global business-to-business Internet commerce. Khaja E. Ahmed, formerly of ValiCert, becomes the company’s chief technology officer, and Peter J. Cerra, formerly of MasterCard, becomes vice president of product management. “Accomplished executives like Khaja and Peter will help Identrus maximize the opportunities presented by our growing number of financial institutions and technology partners,” said Identrus President and CEO Guy S. Tallent. “We look forward to their success.”

Khaja E. Ahmed, chief technology officer

Ahmed has made a career of applying security technology innovations to real-world business problems. He is responsible for enhancing the performance, reliability and user experience of the Identrus global trust system. In 1992, Ahmed developed a 35,000-user system for the IRS that secures taxpayer data. Over the last decade, he was consulted on the development of several projects in information security and public key infrastructures (PKIs) for the U.S. Navy, Defense Information Systems Agency (DISA), the U.S. General Services Administration (GSA) and the Department of Treasury. In 1999, as director of engineering at ValiCert, he managed the engineering team that developed the first global multi-protocol certificate validation service. He has also worked on some of the industry’s first security solutions based on smart cards and other tokens.

Ahmed started his technology career with his own systems consulting business in India in 1986. For the past 10 years, he has focused on information security. At ValiCert, he was responsible for the ValiCert Validation Authority and Transaction Authority products. From 1990 to 1995, he worked for a New Hampshire startup called Datamedia Corp. through its acquisition by AXENT Technologies Inc., a leader in information security. Ahmed, who has taught computer architecture at the master’s level, earned a master’s degree in computer information systems in 1990 from New Hampshire College and an MBA in marketing in 1985 from Pune University, India. He was valedictorian in both programs. He earned a bachelor’s degree in economics from Osmania University in 1982, also in India.

Peter J. Cerra, vice president product management

Cerra has more than 16 years experience in helping new technology companies succeed. He has been involved in numerous smart card implementations around the globe during the decade he spent in that industry. As vice president of product management for Identrus, Cerra is responsible for developing new products and integrating financial institutions into the Identrus system. Prior to joining Identrus, Cerra spent four years as vice president of smart card product and technology integration at MasterCard International. He was responsible for bringing the company’s smart card business development efforts to member financial institutions in the United States and Canada. In addition, Cerra served for one year as president of Mondex USA, the electronic cash company’s franchise for the United States territory.

Before joining MasterCard, Cerra spent eight years at AT&T in a series of project management, new product development and product marketing roles. During his tenure there, he directed the implementation of a pioneering smart card-based electronic toll collection initiative in the State of California on behalf of AT&T Smart Card Systems and Solutions.

Cerra earned a bachelor’s degree in humanities from Saint Mary’s University, Baltimore, Md., in 1977. Additionally, he is serving a second term on the Smart Card Forum Board of Directors.

About Identrus

Identrus, announced in April 1999, for the first time enables businesses to manage their business-to-business e-commerce risks through a trusted relationship with their financial institution. Identrus also enables corporate trading partners to eliminate the time, cost and complexity of building trust relationships with counterparts around the world. Identrus’ legal and technical infrastructure is based on a set of uniform system rules, contracts and business practices for comprehensive trust and risk management. The infrastructure is open to financial institutions, their corporate customers and security vendors around the world. For more information, please visit [][1]



Global Account Management

Equifax Card Services has teamed up with Fair, Isaac to provide account management technology solutions for Equifax’s credit card clients on a global basis. Equifax will use Fair, Isaac’s ‘TRIAD 6.0’ adaptive control system, which includes automated decision software, predictive models and consulting for several account management decision areas. Using ‘TRIAD’, multi-channel card issuers will now have the ability to improve account management profitability for their portfolios worldwide, while conveniently processing every account through one system. Fair, Isaac says the Equifax contract follows a recently signed global ‘TRIAD’ contract with Citigroup. Citigroup will use ‘TRIAD’ to manage customer relationships in Asia, Latin America, Europe and the United States. Specifically, Citigroup will rely on ‘TRIAD’ to support its collections, credit line management, card transaction authorizations management and other business areas. Fair, Isaac says companies using ‘TRIAD’ have experienced a 25 to 30% increase in sales; 15 to 25% reduction in bad debt; 20 to 25% reduction in recovery resources; and a 15 to 25% increase in interest income.


3Q/00 CardData

Early portfolio results for the third quarter continue to point to a strong period of receivables and volume. WI-based Associated Card Services reported 3Q receivables of $468,775,690 compared to 2Q/00 receivables of $428 million. 3Q/00 volume for Associated also hit $133,830,561 compared to $118 million for the second quarter. Meanwhile BB&T reported 3Q receivables of $533,572,000 compared to $493 million for 2Q. BB&T 3Q/00 volume logged in at $317,917,000 compared to $295 million for the second quarter. The third quarter portfolio stats are gathered by CardData ([][1])



Royal Aquarium VISA

The Vancouver Aquarium Marine Science Centre is making a big splash these days with a new Royal Bank affinity credit card partnership. The aquarium’s new affinity card, offered in Visa Classic, provides marine life supporters with a simple, convenient way to link buying power with philanthropic habits. Each time the new card is used, various local ecological programs benefit through a marketing agreement that contributes funds to the aquarium’s coffers.

“This partnership will help support the aquarium’s focus on public awareness and education,” said Dr. John Nightingale, president of the Vancouver Aquarium Marine Science Centre. “With financial resources, we can help to ensure these environments remain a great place to live for future generations.”

The Vancouver Aquarium Marine Science Centre, in Stanley Park, is a self- supporting, non-profit association dedicated to the conservation of aquatic life. Canada’s first public aquarium opened its doors in 1956, eventually becoming the biggest aquarium in the country and among the five largest in North America.

“We’re delighted to be working with Royal Bank to help further the conservation of our aquatic and ocean environments,” added Nightingale.

Accredited by the Canadian Association of Zoos and Aquariums and by the American Zoo and Aquarium Association, the Vancouver Aquarium was designated Canada’s Pacific National Aquarium by the Canadian federal government. Internationally recognized for excellence in display and interpretation, the aquarium’s international research and rehabilitation projects range from marine mammals to reptiles.

“Many Canadians like Royal Bank’s affinity cards because they are a simple way to enhance revenues for the non-profit sector,” said Pierre Giroux, Royal Bank’s senior manager, affinity cards. “The cards provide organizations with a payment each time a new card is issued and every time it is used for a purchase. Affinity cards are an easy way for Canadians to supplement their support of some favourite causes.”

Royal Bank of Canada (RY) is a diversified global financial services group and a leading provider of personal and commercial banking, investment and trust services, insurance, corporate and investment banking, online banking and transaction-based services including custody. The group’s main business units include Royal Bank, RBC Dominion Securities, Royal Investment Services, RBC Insurance and Global Integrated Solutions. The group has 49,000 employees who serve 10 million personal, business and public sector customers in 30 countries. For more information, visit Royal Bank’s Web site at .


Late Summer Rally

Revolving consumer credit surged significantly during August following two months of conservative growth. According to preliminary figures released Friday by the Federal Reserve, Americans added more than $7 billion in outstanding revolving credit during August, compared to $3.7 billion in July and $5.8 billion in June. Since the beginning of this year, American consumers have tacked on nearly $50 billion in total revolving consumer debt. Overall consumer credit is now growing at a 10.9% rate, according to the FRB. At the end of August, American consumers were $1.485 trillion in debt, exclusive of home mortgages.

Aug00 Jul00 Jun00 May00 Apr00 Mar00 Feb 00
%GRWTH: 13.5% 7.1% 11.2 12.7 13.5 13.8 9.4
$OWED: $645.6b 638.4b 634.7 628.9 622.5 615.5 608.5

Jan00 Dec99 Nov99 Oct99 Sep99 Aug99 Jul99
%GRWTH: 18.5% 12.5 10.2 -0.5 0.0 2.5 12.1
$OWED: $605.0 595.8 589.8 584.3 584.5 584.5 584.6

Source: Federal Reserve; revised figures as of 10/06/00;
For complete historical data visit


Smart Campus Access

Schlumberger Test & Transactions, a business segment of Schlumberger Limited, announced its Smart Campus Access solution for college and university campuses that are seeking to secure their intellectual property and promote safety and convenience for a superior student lifestyle. A typical implementation of the Smart Campus Access solution includes an end-to-end suite of smart cards, readers, terminals, software and professional services that seamlessly integrates advanced network security, campus auxiliary services and on- and off-campus convenience applications.

Today’s higher education system is operating in a totally new paradigm on the digital frontier, embracing technologies that transform information, and reaching out to students who live on campus or 2,000 miles away from it. With the rapid rise of e-culture, the university system has become a bellwether for innovation, seeking out those advanced solutions that promote the highest caliber of education, while attracting the best students and instructors. The Schlumberger Smart Campus Access solution provides value across the entire campus environment. For campus administrators, it delivers a solid source of value-added revenue, as well as cost savings and security. Auxiliary campus services such as using smart cards to pay for parking, laundry, copiers, vending machines, and meal plans help generate revenue from proven rise in spending, as well as providing a safe and convenient cashless environment. Additionally, the management of campus-based services is greatly simplified by the use of a single card as a physical ID and for digital credentials. Information technology administrators will find that the Smart Campus Access solution brings added efficiencies and cost savings through its integrated architecture. With Smart Campus Access technology, routine help desk support tasks, such as assisting with lost passwords and log-on problems which take up as much as 20-30% of network administrative time are dramatically reduced. The automated computer sign-on management provided by the Smart Campus Access solution eliminates uncertainties, while offering greater security of campus information.

For students and faculty, the Schlumberger Smart Campus Access solution is a convenient and easy-to-use secure ID token for both physical access to the campus and logical access to the network. The card can be used for banking and calling card accounts applications, and for stored value purchases at campus food service locations, vending and laundry machines, copiers, bookstores, convenience stores, parking and e-commerce sites. Students can use their Smart Campus Access card to securely access their academic transcripts or medical records, cast a vote in campus elections, or simply order a pizza. “Intellectual property is a university’s most valuable asset,” said Jack Mapes, director, Schlumberger e-Campus Solutions, North America. “Today’s conventional model of online security, based on firewalls and passwords, is no longer a cost effective solution for campus administrators. Password systems and their derivatives are extremely costly to maintain and vulnerable to hacker’s attack.”

According to Mapes, the advanced cryptographic features of the Smart Campus Access card combined with a PKI (Public Key Infrastructure) provide the strongest security protocols available today, with onboard RSA-1024 keys. A student’s digital credentials reside in the tamper-resistant chip of the card itself, allowing the user to securely self-validate or “sign” for medical records, transcripts, and course material.

Since 1995, Schlumberger has been North America’s only single source for total smart card-based solutions for more than 20 college and university campuses. Schlumberger provides a complete solution from concept development and planning through implementation and operation. The Schlumberger e-Campus offering includes cards, readers, point-of-sale (POS) terminals, software application development, installation, project management, training, marketing services, consulting services, card issuing, implementation and transaction processing.

About Schlumberger

Schlumberger Test & Transactions provides consulting, integration and products for testing and measurement of semiconductor devices, smart-based transactions, IP (Internet Protocol) network security and wireless services. With 1999 revenue of $1.2 billion and over 7000 employees in more than 40 countries, it is a business segment of Schlumberger Limited (NYSE:SLB), a global technology services company with 1999 revenue of $8.4 billion. More information is available at [][1].



Big Mac

The day of a national PIN-based debit network has arrived. Concord EFS formally announced it is acquiring Star Systems. The merger agreement will combine Concord’s ‘MAC’ network with the ‘STAR’ network. Under terms of the deal, Concord will issue 24.75 million shares of common stock for all of the outstanding shares of Star Systems’ common stock and will setup Star Systems as a wholly-owned subsidiary of Concord. The ‘MAC EFT’ network provides services to over 3,300 financial institutions primarily in the Northeast and Midwest. The ‘STAR’ network has 3,500 financial institution members, and operates primarily in 22 states in the West, Southwest, and Southeast, plus the District of Columbia. Of the 2.4 billion transactions processed by ‘STAR’ in 1999, 40% were payments made by ‘STAR’ cardholders at an estimated 500,000 POS locations. More than 136,000 ATMs and 80 million cards carry the ‘STAR’ brand. The ‘MAC’ network, which processed 1.9 billion transactions in 1999, has 52,000 ‘MAC’-branded ATMs, plus an additional 7,000 ATMs currently branded ‘Cash Station’, but transitioning to the ‘MAC’ brand in the coming months. Both companies say that they expect that both the ‘STAR’ and ‘MAC’ network brands will co-exist for some period of time. (See CF Library 10/2/00)


Wachovia Goes CyberSource

CyberSource Corporation, a leading provider of mission-critical eCommerce transaction services, announced that Wachovia Merchant Services will begin offering CyberSource payment and value-added eCommerce transaction services. Wachovia Merchant Services is a venture between an operating subsidiary of Wachovia Bank, N.A. — the principal subsidiary of Wachovia Corp. — and First Data Corp..

![][1] CyberSource payment and value-added transaction services include the CyberSource Internet Fraud Screen enhanced by Visa, which tracks eCommerce transactions, measures the level of risk associated with each transaction, and returns a real-time related risk score to the merchant. This service provides more efficient risk management and tighter online security for merchants.

Wachovia Merchant Services is the first merchant services organization in the Southeast to sign a reseller agreement with CyberSource. Merchants will be able to sign up for the CyberSource eCommerce Transaction Suite(SM) directly through their WMS sales representative. The entire CyberSource suite includes payment, fraud screening, gift certificate and promotional services, as well as sales tax calculation, fulfillment management and distribution control, and it is designed to help businesses achieve more efficient and successful online sales.

“CyberSource, with a full suite of eCommerce transaction services, provides an ideal fit for our corporate clients,” said Kevin Gallagher, director of e-business strategies for Wachovia Merchant Services. “CyberSource maintains a strong reputation for service reliability, and we believe that its risk management service is the industry leader. We are pleased to offer this service to help our merchants succeed in their eCommerce endeavors.”

“CyberSource is very pleased to enhance its long-standing relationship with Wachovia Merchant Services,” said Steve Klebe, vice president of payment industry alliances for CyberSource. “Through streamlined sales, registration and ongoing support processes, the goal of this reseller relationship is to offer a one-stop shop for Wachovia clients who need eCommerce solutions quickly.”

About Wachovia

Wachovia Corporation is a $70.8 billion asset interstate financial holding company with dual headquarters in Atlanta and Winston-Salem, N.C. Wachovia Bank, N.A. has nearly 700 offices and 1,400 ATMs in Florida, Georgia, North Carolina, South Carolina and Virginia. Wachovia Bank Card Services is the nation’s 12th largest credit card issuer. Wachovia Merchant Services, [][2], provides business customers with bank card processing services for every major credit or debit card and a full complement of related and supporting services. In 1999, WMS served more then 30,000 customer locations and processed $6.5 billion in transaction volume. Wachovia’s Web site is located at [][3].

About First Data

Atlanta-based First Data Corp. helps move the world’s money. As the leader in electronic commerce and payment services, First Data serves more than two million merchant locations, 1,400 card issuers and millions of consumers, making it easier, faster and more secure for people and businesses to buy goods and services using virtually any form of payment. With more than 30,000 employees worldwide, the company provides credit, debit and stored- value card issuing and merchant transaction processing services; Internet commerce solutions; money transfers and money orders; and check processing and verification services throughout the United States, United Kingdom, Australia, Mexico, Spain and Germany. In addition, its Western Union network includes approximately 90,000 agent locations with operations in 182 countries and territories. For more information, visit the company’s Web site at .

About CyberSource

CyberSource is a leading developer and provider of enterprise eCommerce transaction services, and a pioneer in the area of Internet fraud detection. More than 2,200 businesses throughout the world have chosen to use the CyberSource eCommerce Transaction Suite(SM). The CyberSource eCommerce Transaction Suite offers customer-controlled, real-time services including, Payment, Tax Calculation, Stored Value, Risk Management and Fulfillment Management. CyberSource Global Professional Services develops comprehensive eCommerce solutions that are built upon CyberSource’s mission-critical transaction services and tailored to each customer environment to provide security, reliability, and extensibility for rapid growth. Customers and partners of CyberSource include leading Internet etailers, retailers, manufacturers and businesses selling online including, BUY.COM (U.S. & U.K.), Compaq Computer, Home Depot,,,, Priceline, Remedy and VerticalNet. CyberSource Corporation is headquartered in Mountain View, Calif., and has offices in Japan and the United Kingdom, as well as various other locations throughout the Unites States. The company can be found on the World Wide Web at . CyberSource information is also available via email at or

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


Olympic Payoff

VISA reported yesterday it achieved new highs in its 14-year Olympic Games’ sponsorship with record sales volumes of US$14.2 million representing 294,610 card purchases at 800 terminals installed at Sydney Olympic Park. VISA also reports that more than 50,000 withdrawals were made at the 22 Olympic ATMs totaling US$4.56 million. During the Games more than 500 Australian retailers participated in VISA’s ‘Embrace the Spirit’ campaign featuring a give-away program of more than 120,000 Olympic pins. Signage combining VISA sales materials and Australian vistas were also featured by more than 2,500 retailers throughout Sydney. More than 5,000 Olympians and their guests registered at The Olympians Reunion Centre. The Sydney VISA Customer Centre assisted 3,000 customers during the Olympic Games.