American Online Bank

OR-based sub-prime credit card specialist, American Pacific Bank, introduced American Online Bank yesterday. Online Bank’s home banking system enables customers to view and download account histories, transfer funds, pay bills, track personal investments, apply for loans, credit cards, deposit accounts and reorder checks. American Pacific Bank was formed in 1979 as an Oregon state chartered bank and has grown from a small community bank to a nationwide provider of secured credit cards.


Datakey Cards Certified

Datakey, Inc., an international leader in smart card solutions for Public Key Infrastructure, announced that Digital Signature Trust Co. has selected Datakey’s Model 330 smart cards as meeting all of the requirements of the American Bankers Association’s TrustID certificate program.

The TrustID certificate program is a strategic initiative powered by Digital Signature Trust Co. that enables financial institutions to compete in the age of e-commerce. TrustID digital certificates are issued under the unique authority of the TrustID digital certificate policy, which is governed by the American Bankers Association. The policy serves to establish the highest level of online trust. As a TrustID program partner, Datakey offers its PKI smart cards to financial institutions and their partners and customers that require the highest level of security for digital credentials when conducting business over public and private networks.

“We selected Datakey for the TrustID Certificate Program because of our long-standing relationship with the company and its technology leadership, including the FIPS certification,” said Scott Lowry, president and CEO of Digital Signature Trust Co. “Because of the size and nature of their transactions, financial institutions require the highest level of security possible — and that’s what the TrustID certificate program and Datakey’s technology provide.”

A proven track record in the financial services industry

Founded in 1976, Datakey has a strong history of serving financial services organizations. To date, the company has provided its smart card solutions to more than 65 financial and banking institutions worldwide to help them secure online communications and transactions.

“Smart cards play a pivotal role in safeguarding online communications and business-to-business e-commerce — from strong user authentication to encrypting and digitally signing e-mail,” said Tim Russell, vice president and general manager of Datakey’s Information Security Solutions business unit. “We are honored to be part of the TrustID Certificate Program and look forward to continuing to serve the financial services community.”

Datakey smart cards: advanced protection for digital credentials

Datakey pioneered the first PKI cryptographic smart card used for digital signatures in the early 1990s. Today, Datakey’s smart cards are being used by worldwide organizations to secure their online communications and to provide strong user authentication to corporate networks, VPNs, intranets and extranets.

The company’s Model 330 smart card is the only 32K card to earn FIPS 140-1 Level 2 certification, an independent government validation that certifies the card’s cryptographic strength. The card also features 2048-bit public key encryption strength and an extensible operating system for true multi-application capability.

About Datakey, Inc.

Datakey, Inc. is a leading international provider of smart card solutions for PKI. Headquartered in Minneapolis, Minn., the company offers a family of smart card-based information security and digital signature products under the SignaSURE(R) umbrella. Using state-of-the-art cryptographic technology, these products fill growing market needs for secure, smart card-based user authentication and data privacy for business-to-business e-commerce. Datakey’s smart card-based information security products play an integral role in any PKI system by providing two-factor security — something that is owned (a smart card) and something that is known (a password).

Shares of Datakey’s common stock are traded on Nasdaq under the symbol DKEY. You can find more information on the Datakey Web site at [][1]. You can view all Datakey press releases on the Web site at [][2].

About Digital Signature Trust Co.

Digital Signature Trust (DST) is a subsidiary of Zions First National Bank (Nasdaq: ZION) and is the first licensed Certification Authority in the U.S. As an issuer of digital certificates that guarantee the identity of businesses and individuals online, DST understands that communicating securely in the digital age is about more than just technology, it is about trust. Trust and confidence can only be derived from the quality of the management practices, policies, and procedures that an organization puts in place around its technology. Because DST is a subsidiary of a national bank it is subject to regulatory oversight and other stringent internal and external auditing requirements that provide the foundation for a level of trust and assurance that is unequaled by its technology-based PKI competitors. It is this foundation that makes DST’s claim of creating the highest level of trust in the Internet truly creditable. For more information, visit [][3]



Convenience Usage

The number of American cardholders paying off credit card balances in-full each month continues to rise. Meanwhile average credit card debt per household is quickly approaching the $8,000 mark. According to CardData (, 44% of cardholders, based on mid-year data, pay off each month to avoid interest charges. This compares to 43% at year end 1999 and 29% at year end 1990. Meanwhile the average credit card balance per household, among households with at least one credit card, is $7,942 at mid-year. This compares to $7,564 for year end 1999 and $2,985 for year end 1990.


1990: 29% $2985
1991: 31% $3223
1992: 31% $3444
1993: 33% $3601
1994: 35% $4811
1995: 38% $5832
1996: 39% $6487
1997: 40% $6900
1998: 42% $7188
1999: 43% $7564
2000: 44% $7942

Convenience usage -% of bank credit cardholders (VISA,MC,Discover,AmEx) paying off balances in-full each month; Card Debt- outstanding balances for all credit cards including bank credit cards and private label credit cards, among U.S. households with at least one credit card.

Source: CardData ([][1])



LifeMinders Deal

First USA announced this morning a multi-million dollar partnership with LifeMinders, a provider of Web and wireless direct marketing infrastructure that uses a proprietary personalization platform. Under terms of the deal, LifeMinders will send targeted promotions of First USA’s card products to its more than 18 million members. This relationship is one of the first-ever multi-product packages to be co-marketed by the financial leader with another company. LifeMinders will send targeted offers for various First USA credit card products, including the ‘e.card Platinum VISA’, LifeMinders co-branded cards and a diverse array of partner cards. These personalized offers could represent hundreds of different cards with benefits specific to the needs and interests of each targeted member. As an example, LifeMinders members who are signed up for the LifeMinders Travel emails may be offered the ‘British Airways Platinum VISA’ card, allowing members to accumulate airline miles for travel benefits. Financial terms of the deal were not disclosed.


Big Mac ATMs

American consumers will soon be able to have their apple pie and cash access too. Diebold announced Tuesday it has teamed up with McDonald’s Corp. to place ATMs in various McDonald’s restaurants across the USA. The first 30 ‘D-Cash’ ATMs will be installed in corporate locations throughout Pennsylvania and West Virginia. McDonald’s franchise owners will have the opportunity to participate later in the program. Under terms of the agreement, Diebold will install and operate the ‘CashSource Plus 200P’ cash dispenser in McDonald’s locations. The ‘200P’ permits restaurant staff to load and recycle cash without accessing the chest of the unit by depositing money directly into the ATM by way of a bill acceptor. In return, McDonald’s will pay Diebold a monthly fee for the installation and maintenance of the ATMs. A portion of each transaction surcharge will be paid to the Ronald McDonald House in regional areas as specified by McDonald’s. McDonald’s has nearly 27,000 restaurants serving over 43 million people in 119 countries daily. Approximately 85% of McDonald’s U.S. restaurants are owned and operated by independent franchisees.


SCT Smart Cards

Smart Chip Technologies announced the completed demonstration model of its integrated payments/loyalty solution on a smart card, first demonstrated at the Card Tech/Secur Tech Conference in Toronto.

“Our demonstration shows the direction of the industry, and proves our capability to meet the emerging demands for loyalty in combination with payment systems,” Jim Williams, president and chief executive officer of Smart Chip Technologies, said in a prepared statement.

“With our recent alliances with Oasis Technology and Cardis Research and Development, we are aggressively moving toward a broad product line, encompassing payments, micropayments, and loyalty, for both POS and Internet environments.”

SCTN recently concluded negotiations to obtain exclusive patent-license rights in North America to Cardis’s Ultimus micropayment solution. This solution allows the integration of small payments, traditionally too small to be profitable to merchants, into the normal payment stream.

In combination with Oasis Technology’s proprietary payments processing software, SCTN will be able to integrate powerful payment and loyalty solutions on a single platform. Oasis and SCTN announced their alliance Monday.

“Recent announcements by Fleet Bank and others of their impending launch of smart cards gives us confidence that we are positioned at the front of a major technological wave. With our alliances and our patent-protected technology, we are confident that we can deliver a solid value proposition to our partners,” Williams said.

“We look forward to extending the power of our suite of patents through key partnerships with other leaders in the industry.”

Smart Chip Technologies is the dba of SCHIMATIC Cash Transaction Inc. (SCTN). SCTN is an applications service provider specializing in end-to-end loyalty and cause-marketing solutions.

Through the power of its robust database engine, LoyaltyCentral, 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. Smart Chip merges the virtual word 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, [][1], by contacting Smart Chip at 801/355-0066, 205 West 700 South, 2nd Floor, Salt Lake City, UT 84101-2736 or by writing Smart Chip at



Level 3 Smart Card

Gemplus has obtained technology level three approval from VISA International for its ‘GemXpresso 211 – V2 card’. This is the first smart card that supports ‘Java Card 2.1’ and ‘Open Platform 2.0’. ‘GemXpresso 211 – V2’, a smart card platform based on Philips Semiconductors ‘P8WE5032’, is the second Gemplus ‘Open Platform card approved by VISA. The new, multi-application Gemplus card is capable of supporting VISA-approved applications, such as ‘VISA Smart Debit/Credit’, and ‘VISA Cash’, as well as member proprietary applications. In January, the GemXpresso ‘211 V1’ received the first French Common Criteria certification for a Java Card. In May the card became the first ‘Open Platform V2.0’ card approved by VISA International.


Voice WAP

Trintech and Trust5 have developed a secure mobile commerce payment solution utilizing voice biometrics. The new payment solution verifies and authenticates customers over the Internet or cell phone by their voice using advanced biometrics technology. It is configured as multiple, completely independent, interconnected mirrored systems, located in different physical locations for maximum operational integrity. This means that no matter where you are located around the world, the transaction can be completed in less than half a second. By incorporating a layered security mechanism that includes voice authentication into PayWare ‘mAccess’, Trintech extends its mCommerce application suite.


Smart Card Forum

Perhaps the most significant smart card forum held to-date will get underway this morning in San Francisco. Gemplus, as well as VISA and MasterCard will play an aggressive role in the Smart Card Forum’s 8th Annual Meeting. The theme of this year’s conference is “Mobile eCommerce Making Waves” and will feature leading Internet commerce technologists and wireless industry experts addressing a broad range of topics and views concerning the mobile eCommerce industry and how smart cards will play a critical role in helping it to emerge. Gemplus chairman and founder Marc Lassus will deliver a keynote address this afternoon. Among other keynote speakers will be Bond Isaacson, president of eVISA. CEO Robert McKinley has accepted an invitation to attend and meet privately with SCF members and speakers.


CompuCredit Earnings

CompuCredit Corporation announced Tuesday it is raising its estimate for the fiscal year ending 2001 to $3.25 per share and initiating earnings guidance for the fiscal year ending 2002 at $4.50 per share.

CompuCredit Corporation is a credit card company that uses analytical techniques, including sophisticated computer models, to identify consumers who it believes are credit-worthy and are overlooked by more traditional consumer credit providers. CompuCredit markets unsecured Aspire(R) Visa(R) credit cards through direct mail, telemarketing and the Internet. In July 1999, CompuCredit launched its consumer web site, [][1], through its Internet marketing services subsidiary, Inc. Consumers can apply online and receive a credit decision within seconds. CompuCredit also markets credit life insurance, card registration, buying club memberships and travel services to its cardholders. Aspire Visa cards are issued by Columbus Bank and Trust Company under an agreement with CompuCredit. CompuCredit completed its initial public offering in April of 1999 and was included in the Russell 2000(R) Index in July 1999 and the NASDAQ FIN-100 Index in May 2000. Visit CompuCredit on the Internet at [][2].



AmEx & FleetBoston

American Express Financial Corporation and FleetBoston Financial announced yesterday they have formed a strategic alliance to build and distribute investment and annuity products through their retail financial networks. The two companies will introduce two new annuities, the American Express Galaxy Premier Variable Annuity and the Preferred Gold Fixed Annuity issued by American Enterprise Life Insurance Company, a division of IDS Life Insurance Company, which is a subsidiary of American Express Financial Corporation.

![][1] “This strategic alliance with FleetBoston is an exciting addition for American Express,” says Randy Gabrielson, senior vice president, Insurance and Strategic Alliances, American Express. “We are expanding our business to provide clients with numerous choices through strategic alliances. This is a strong and exciting opportunity for our clients and shareholders.”

The American Express(R) Galaxy Premier Variable Annuity and the Preferred Gold Fixed Annuity(TM) will be sold to consumers through FleetBoston’s network of 1,000 financial consultants. FleetBoston’s Galaxy and Columbia Mutual Funds will be sold through the 11,000 American Express Financial Advisors.

“Our alliance with American Express allows us to reach more customers with a greater selection of financial products, a tool needed to be more successful in the financial industry,” said Richard Joseph, Managing Director Product Distribution and Development, Fleet Investment Management.

“This relationship will allow both companies to better meet the changing needs of its customers. Distribution alliances such as these are the wave of the future and are the result of the mutual strength of both companies distribution capabilities and asset management capacities,” said Bob Ash, Senior Managing Director Chief Executive Officer, Fleet Investment Management.

“FleetBoston and American Express were both looking for distribution alliances and we were brought together by Thompson & Company, an insurance brokerage firm in Pasadena, Calif.,” said FleetBoston’s Rich Joseph.

FleetBoston Financial is the eighth-largest financial holding company in the United States. An $187 billion diversified financial services company, it offers a comprehensive array of innovative financial solutions to 20 million customers in more than 20 countries and territories. Among the company’s key lines of business are: retail banking, with over 1,250 branches and over 3,400 ATMs in the Northeast; commercial banking, including capital markets/investment banking and commercial finance; investment services, including discount brokerage; and full service banking through more than 250 offices in Latin America.

FleetBoston Financial is headquartered in Boston and listed on the New York Stock Exchange (NYSE: FBF) and the Boston Stock Exchange (BSF: FBF).

American Express Financial Advisors, with more than $289 billion in assets, has been in operation in the U.S. for more than a century. The company’s products and services are distributed through a nationwide network of more than 11,000 financial advisors, third party relationships with major financial institutions, insurance agencies, broker/dealers and an institutional business that provides 401(k) and defined benefit plans to companies.

American Express Financial Advisors Inc. is the principal underwriter for the insurance and annuities. Member NASD. Insurance and annuities are made available through AEL, or in New York, through American Centurion Life Assurance Company. American Express Company is separate from American Express Financial Advisors Inc. and is not a broker-dealer.

[1]: /graphic/fleet/fleetboston.gif