Diebold Uruguay

Diebold, Incorporated announces the opening of a direct operation in Uruguay that marks another step in the company’s expansion within the Latin American financial self-service industry, in which Diebold is currently the market leader.

“The presence of Diebold Uruguay will help to further establish brand awareness and increase our leadership in the South American market. More importantly, this will provide financial institutions within that country valuable tools to increase productivity and improve customer touch-points significantly,” said Ernesto R. Unanue, Diebold vice president and managing director of Latin America.

Having initiated operations recently, Diebold Uruguay has already completed several important business transactions. The company has obtained service contracts from Bancomat and CABAL, a Latin American credit card issuer. Additionally, the Uruguayan entity RedBanc SRL has acquired 26 Diebold self-service terminals, including cash dispensers and advanced- function automated teller machines (ATMs). Several of the new machines have multi-media capabilities with video and sound, which will permit financial institutions to run full-motion video advertisements on the ATM.

In January 2000, Diebold acquired the global self-service operations of France-based Groupe Bull. As part of that agreement, the company will also provide service to the more than 100 terminals previously installed at Banco de la Republica Oriental del Uruguay by Groupe Bull.

Diebold, Incorporated is a global leader in providing integrated self- service delivery systems and services. Founded in 1859, the company employs more than 11,000 associates with representation in more than 80 countries worldwide and headquarters in Canton, Ohio, USA. Diebold reported revenue of $1.3 billion in 1999 and is publicly traded on the New York Stock Exchange under the symbol ‘DBD.’ For more information, visit the company’s Web site at [http://www.diebold.com][1].

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


SLMsoft Saudi Deal

SLMsoft.com, Inc. announced it has entered into a joint venture relationship with Al Masa Distribution FZCO (Al Masa) for the distribution of SLMsoft.com products in selected countries in the Middle East and Southwest Asia.

Al Masa has agreed to invest a total of CDN $3.73 million. $1.5 million will be invested in the joint venture company to be owned by both SLMsoft.com and Al Masa, while the balance has been invested directly into SLMsoft.com. The joint venture will develop its own sales and marketing strategy in the region with the local expertise of Al Masa.

“This agreement with Al Masa highlights our continued focus on a multi- channel distribution strategy, and our progress in expanding into the Middle East region,” said SLMsoft.com Chairman and CEO Govin Misir. “We continue to see this region as having high growth potential, and we are pleased to have a partner who is prepared to make a significant investment in the partnership and the development of this market.”

According to Killen & Associates, spending on information technology products and services in the Middle East region is growing twice as fast as the world average and is forecast to grow from last year’s U.S. $17.8 billion to U.S. $35 billion by 2002. Spending for software and related services is forecast to grow from the current U.S. $4.8 billion to U.S. $11 billion by 2002.

“We have decided to partner with and invest in SLMsoft.com because of its leading e-financial technology, its reputation in the region, and its ability to bring innovative solutions to the international market,” said Mehdi Amjad, Managing Director of Al Masa. “We recognize that there is significant demand for SLMsoft.com’s technology as banks in the region transition to a web- enabled environment.”

Under the terms of the agreement, Al Masa will invest $1.5 million into the joint venture to build market awareness, and to provide the initial working capital. Also as part of the agreement, Al Masa invested $2.23 million in SLMsoft.com through a subordinated debt financing consisting of a 5% convertible subordinated unsecured debenture and warrants to purchase 50,000 limited voting shares. The debenture is due March 19, 2001 and is convertible at maturity into 530,714 limited voting shares at a price of $4.20 per share. The warrants are exercisable at any time on or prior to March 19, 2002 into 50,000 limited voting shares at a price of $5.00 per share. SLMsoft.com will use the net proceeds of the financing for working capital purposes.

About Al Masa Distribution FZCO

Al Masa Distribution is one of the leading information technology distribution companies in the Middle East. Al Masa’s strength lies in the fact that it is a single sourcing point of resellers and system integrators in the region. Today, Al Masa represents many leading international manufacturers in the region for all their distribution needs. Al Masa has developed a strong and reliable distribution network in the region with dedicated sales executives, a focus on individual product lines and a strong delivery infrastructure. Al Masa has offices in Dubai, Singapore, and Jebel Ali, with over sixty employees and revenues of U.S. $60 million.

About SLMsoft.com

Founded in 1986, SLMsoft.com is a leading developer of electronic payment systems and transaction processing solutions, including e-commerce applications with a focus on the financial services industry. SLMsoft.com provides real-time end-to-end e-banking solutions that include Internet banking, interactive voice recognition (IVR), debit and credit card issuing, automated teller machines and point-of-sale network management, retail branch management, core banking and cheque imaging. SLMsoft.com also provides investment brokerage client and portfolio management applications for the brokerage industry; e-health solutions which enable health insurance claims to be evaluated at the point of service, processed and settled in real time; and e-government solutions which enable consumers to pay fees for government services in person, at kiosks, through IVR systems or the Internet. SLMsoft.com has over 1,500 active customer installations worldwide. Currently, SLMsoft.com has more than 600 employees, operating out of 21 locations.

SLMsoft.com, ESP-Link and EC-street are trademarks of SLMsoft.com, Inc. All other product and company names mentioned herein may be trademarks of their respective owners.


Fujitsu – Tidel Deal

Fujitsu-ICL Systems Inc., the North American supplier of Fujitsu products for financial services, retail and commercial handheld applications, and Tidel Technologies Inc. , one of the nation’s largest ATM manufacturers, announced the signing of a strategic Original Equipment Manufacturer agreement whereby Fujitsu-ICL will supply bill dispensers to Tidel for inclusion in its Ignition series and Chameleon series ATMs. The agreement, estimated to be worth $10 million in its first year, is Fujitsu-ICL’s first partnership agreement as an OEM and Tidel’s first strategic supply agreement for its new products.

![][1] “Fujitsu already is one of the world’s top manufacturers of full-scale, Web-enabled ATMs, and this partnership with Tidel signals our intent to become a leading OEM supplier in the ATM components market,” said Ron Omohundro, executive vice president and general manager for Fujitsu-ICL’s products division. By ensuring a steady supply of bill-dispenser components, the agreement allows Tidel to meet continued retailer demand — from convenience stores to large supermarkets and shopping malls — for its quality ATM equipment.

“We demand quality and expertise in cash-handling technology, which is why we selected Fujitsu-ICL as our hardware partner,” said Mark K. Levenick, chief operating officer of Tidel. “Fujitsu produces intelligent and reliable units that make the dispensing of cash and other media quick and consumer-friendly.”

About Tidel

Tidel, based in Houston, is a manufacturer of automated-teller machines and cash-security equipment designed for specialty retail marketers. Tidel pioneered the dial-up ATM in 1992 and was recently selected by Business Week as one of its top 100 hot growth companies for 2000. To date, Tidel has sold more than 25,000 retail ATMs and 110,000 retail cash controllers in the U.S. and 36 other countries. Tidel Technologies’ Web site: [www.tidel.com][2]

About Fujitsu-ICL Systems Inc.

Fujitsu-ICL Systems Inc. is a joint venture between Fujitsu, a leading provider of Internet-based IT solutions for the global marketplace, and ICL, a $4.4 billion e-Business services company wholly owned by Fujitsu. The company targets retail, financial and e-Business services markets. Its Fujitsu Products group has almost 30 years experience in providing hardware/software solutions and services for retail point-of-sale (POS), specialized handheld computing and ATM applications. Its Retail Software and Services group provides development and customization services and support for retail POS software applications. Its Fujitsu Business Solutions group provides consultancy-led e-services and customer relationship management (CRM) that enable its clients to build high-value, personalized relationships with their customers.

ICL’s Web site: [www.icl.com][3]

Fujitsu’s Web site:[www.fujitsu.com][4]

[1]: /graphic/tidel/tidel.gif
[2]: http://www.tidel.com/
[3]: http://www.icl.com/
[4]: http://www.fujitsu.com/


Checkmate Snags Beaver

Royal Bank of Canada and IVI Checkmate announced the launch of more than 2,000 SmartSELECT point-of-sale terminals at Home Hardware and Beaver Lumber stores across Canada. SmartSELECT, with its high-speed modem, increased memory, and all-in-one compact design, will give Home Hardware and Beaver Lumber the industry’s fastest and most advanced point-of-sale technology for dial-up payment terminals. Royal Bank has packaged IVI Checkmate’s eN-Touch 3000(TM) with payment and transaction management software and markets the terminal under the name SmartSELECT.

![][1] “SmartSELECT was chosen because of its ability to provide information and services not currently available in our stores. Its ease of operation and space efficient size were also determining factors,” said Arnie Shantz, dealer services manager, Home Hardware. “Royal Bank understood its potential for the retail environment and developed a unique solution customized to meet Home Hardware’s present and future business needs.”

Royal Bank vice-president of merchant services and point of sale, Frank Moore, said: “The new SmartSELECT goes beyond traditional debit and credit card processing and provides a new world of electronic marketing and other enhanced features for our small and large retail clients.” The SmartSELECT terminal has a back-lit touch screen display and will support a wide range of pioneering software applications, including those created by Ernex Marketing Technologies Inc., a wholly owned subsidiary of Royal Bank. Ernex runs a variety of value-added electronic marketing programs for retailers such as electronic gift certificates, instant coupons and sweepstakes, loyalty points programs and personalized messaging.

IVI Checkmate Ltd. executive vice-president and general manager, Geoff Bowen, sees SmartSELECT as an ideal solution for a wide range of retailers who want the capabilities of tomorrow’s technology today. “By working with Royal Bank, we were able to enhance the product’s capabilities to create a win-win solution for the bank, the retailer and ourselves,” said Bowen.

About Home Hardware Stores Limited

Home Hardware Stores Limited is a co-operative of dealer-owned and operated independent hardware, building supply and furniture stores under the Home Hardware, Home Building Centre, Home Hardware Building Centre, Home Furniture and Beaver Lumber banners. Founded in 1964 by approximately 120 independent hardware dealers, the company today has grown to include 1,100 members in every province and territory in Canada with annual retail sales approaching $3 billion. Home Hardware Stores Limited, RONA, Inc., and Do it Best Corp. comprise the Alliance International LLC buying group generating more than $6 billion in retail sales a year.

About Royal Bank of Canada

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, on-line 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 [www.royalbank.com][2].

About Ernex Marketing Technologies Inc.

Ernex Marketing Technologies Inc., a wholly owned subsidiary of Royal Bank of Canada, is a transaction information company specializing in point-of-sale loyalty and electronic marketing programs. For more information, visit its Web site at [www.ernexinc.com][3].

About IVI Checkmate

IVI Checkmate is a major electronic transaction solutions provider in North America. The Company designs, develops, and markets innovative payment and value-added solutions that optimize transaction management at the point-of-service in the retail, financial, travel & entertainment, healthcare, and transportation industries. IVI Checkmate’s software, hardware, and professional services minimize transaction costs, reduce operational complexity, and improve profitability for its customers in the U.S., Canada and Latin America. For more information on IVI Checkmate, visit its web site at [www.ivicheckmate.com][4].

[1]: /graphic/checkmate/checkmate.jpg
[2]: http://www.royalbank.com/
[3]: http://www.ernexinc.com/
[4]: http://www.ivicheckmate.com/


100,000 SmarTrip Cards

Cubic Transportation Systems and The Washington (DC) Metropolitan Area Transit Authority confirmed this morning that the number of ‘SmarTrip’ contactless fare cards sold has passed the 100,000 mark. The new ‘SmarTrip’ card was introduced to Metro commuters a little over one year ago. SmarTrip was the first contactless smart card to be introduced by a major mass transit system in the U.S. This summer, the Chicago Transit Authority introduced Cubic’s contactless card technology to full-fare systemwide, offering a first-of-its kind intermodal, interagency card. (See CF Library 5/19/99 & 9/12/00)


iShopSecure Solution

iShopSecure, Inc., a privately-held company based in Davie, Florida, has launched a patent-pending technology and business process that eliminates credit card fraud and allows consumers to shop from more than 750,000 web sites without putting their credit card or other personal information online. iShopSecure technology, called the I-Card(TM) /CCRT (Credit Card Replacement Technology), are patents-pending technology that simplifies and secures Internet credit card transactions for consumers and small businesses to ease their fears of online credit card fraud and privacy issues which, according to The Forester Report, prevents some 52% of all online users from making on-line purchases, a problem which also cost merchants and credit card issuers more than $230 million last year. This technology is comprised of a series of software programs, servers, and business processes that acts as an automatic clearing house and intermediary between the consumer and the merchant. Although iShopSecure’s technology is cutting-edge, consumers will find it easy to use.

“We believe that this technology will open the doors to the e-commerce revolution,” said Joseph A. McDonnell, Chairman of the Board/CEO, iShopSecure, Inc. “By offering a private and secure online shopping environment we hope to increase consumer confidence in making online purchases.”

The I-Card(TM) (“a fraud-free” credit card)/CCRT technology is unique in addressing privacy and security concerns because consumers never have to put their credit card or personal information online.

Furthermore, the I-Card / CCRT requires no physical cards or hardware. Consumers simply download Easy Click Shopping Assistant(TM), a small browser resident software program that they use when they shop online which stores their user profile, which is their home “ship-to” address (or any one of 20 other ship-to addresses), and auto populates the merchants’ shopping carts during the checkout process to make shopping convenient.

During this checkout process, the purchaser, via Easy Click(TM), prompts iShopSecure or their credit card issuer to instantly and automatically provide an anonymous online credit card number with a credit limit equal to the amount of the total transaction as authorized by the purchaser. Because the purchaser’s actual credit card information is never transmitted over the Internet they are given the confidence and the freedom to shop in a totally private and “fraud free” environment. Merchants receive a credit card number from an accepted brand of credit card with a credit limit equal to the amount of purchase as established by the purchaser during the checkout process. This process prevents questionable merchants from fraudulently debiting the card for more than the agreed upon purchase amount.


iShopSecure, Inc., specializes in providing comprehensive turn-key technology solutions to safeguard credit cards from online credit card fraud and privacy issues, the biggest barriers to the growth of e-commerce on the Internet. This technology eliminates credit card fraud and facilitates online purchasing confidence and online spending. With its patents-pending technology, iShopSecure is dedicated to providing a fraud-free secure shopping environment on the Internet as a benefit to consumers and e-tailers. iShopSecure’s seasoned management team has more than 150 years of experience in a diverse range of industries and professions such as technology, credit card security, banking, business and legal, as well as intelligence and counter-intelligence. iShopSecure has a support staff of highly seasoned professionals in areas of e-commerce, Internet transactions, banking, and credit card processing.


Sector Analysis

While credit card receivables for the industry grew 10.1% between 2Q/99 and 2Q/00, the sub-prime, non-bank and credit union sectors were the top performers. According to the latest sector monitor published in RAM Research Group’s ‘BankCard Update’, the credit union sector not only delivered better-than-average growth, but also delivered the highest average daily balances per active account as well as the highest year-to-date volume per active account. The sub-prime sector has consistently been the fastest growing segment of the industry for the past three years. The co-branded and low-rate sectors continue to languish.

Cobranded/Affinity + 5% $2246 $2045
Secured/Sub-Prime +30% $1422 $1004
Low Rate (>$3b) + 1% $2324 $2247
Low Rate (


No-Show Chargebacks

MasterCard announced yesterday it is changing its chargeback rules to help the hospitality industry fight no-shows. Under the new rules, lodging establishments will have the right to dispute chargebacks when they are received as a result of a guaranteed no-show. For example, when a cardholder claims they did not make a guaranteed reservation or claims they did not authorize the charge. Lodging merchants will now be able to submit documentation to MasterCard showing they obtained the cardholder’s account number, card expiration date, name embossed on the card and address. They can also provide a reservation confirmation number at the time the guaranteed reservation was made in order to defend themselves against guaranteed no-show billing chargebacks. Historically merchants have had limited rights in disputing such claims. Consumers will also now be required to file their dispute in writing. The new changes are effective October 13, 2000 for MasterCard members and lodging merchants.


Chase Wallet

Chase Manhattan Bank introduced its digital wallet based on Brodia’s e-commerce services. The ‘Chase Companion’ wallet will be available free-of- charge to Chase’s 20 million cardholders. ‘Chase Companion’ also offers other online tools that give consumers the ability to organize shopping records and merchant e-mail. For example wallet users can block unwanted e-mail and receive only the types of offers that match their interests. ‘Chase Companion’ also features additional benefits such as password management, special offers and discounts.


MIST Promotions

MIST announced the appointments of Linda Horwath to the position of Vice President – U.S. Sales and Julie Stuthridge to the position of Vice President of Marketing.

Having most recently served as MIST’s Regional Sales Manager, Ms. Horwath brings many years of point of sale (POS) industry sales management experience to MIST’s senior executive team. Prior to joining MIST, Ms. Horwath was a senior sales director for Hypercom, the second largest manufacturer of POS equipment in the world, and was responsible for securing and managing key business relationships.

Ms. Horwath’s 18 years of experience in transaction processing includes Vice President of Sales for Norwest Card Services, product management responsibilities at Deluxe Data and managing the regional electronic banking division of a major bank holding company. Ms. Horwath will be responsible for the development and implementation of strategic corporate sale programs, managing key customer relationships, and for the continued U.S. growth of MIST.

Ms. Stuthridge who has over 11 years of marketing experience in the Financial / eCommerce industry, joins MIST from Hypercom, where she was the Vice President of Global Marketing, responsible for global communications, and marketing strategies. Ms. Stuthridge will be responsible for MIST’s marketing and product management efforts.

“We are extremely pleased to welcome Linda and Julie to the MIST senior management team,” said Charles E. Lee, President and C.E.O. of MIST, “Leveraging their extensive industry knowledge and contact base will be instrumental in our efforts to bring MIST into new markets and to expand our role as the premier provider of wireless transaction solutions. Their background is directly in line with our objective.”

About MIST

MIST (NBS Technologies Inc – TSE:NBS), designs, manufactures and distributes wired and wireless POS transaction solutions including payment and transaction gateways from its facilities in Toronto and Montreal. The Company has an installed base of over 500,000 wired terminals and its customers include a number of Canadian and international banks and financial institutions, credit and debit card processors, as well as retail, hotel, restaurant, health care and loyalty customers. As part of it’s growth strategy, MIST continues to develop products and services for its core markets as well as to form alliances with financial institutions, value added resellers and major vendors to penetrate new markets. MIST has developed the “MIST Freedom” family of wireless transaction terminals, an ideal complement to its range of existing products, The MIST Freedom family of products provides an upgrade path for the large base of existing wired terminals, allowing our customers to take advantage of the advanced features and technology that our MIST Freedom terminals offer. MIST has offices in both Canada and the United States. For more information, visit [www.mistwireless.com][1]. Investors may contact investor-relations@mistwireless.com.

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


PULSE Security Upgrade

PULSE EFT Association has completed testing and installation of a new internal security system which is intended to provide an even greater level of protection for account information when consumers use their debit cards at ATMs or to make purchases using point-of-sale terminals.

The new Atalla A10,000 hardware encryption devices also should increase the speed at which account information is authenticated and transactions are processed.

PULSE is one of the first shared electronic funds transfer networks to upgrade to this new state-of-the-art technology.

Executive vice president Warren Coles said this is just one example of PULSE’s ongoing efforts to provide member financial institutions and their customers the best service possible.

“Improving the security of consumers’ account information is a high priority for PULSE, and this pro-active measure provides debit cardholders and their financial institutions with enhanced protections,” he said. “It was decided to upgrade at this time to maintain PULSE’s leadership position in providing high quality service.”

The transition to the new equipment occurred during the early morning hours of Sunday, Sept. 17, when network activity was minimal. Following activation, the new hardware passed thorough verification in accordance with a conversion plan that has been in development since early this year. Only after the network verified that processing and recovery functions worked correctly was the decision made to complete the conversion.

PULSE is one of the nation’s leading shared electronic funds transfer networks, serving more than 2,000 banks, credit unions and savings and loans. The system links an estimated 45 million cardholders with more than 46,000 ATMs and 254,000 point-of-sale terminals throughout the United States.


E-xact and ACS

E-xact Transactions Ltd. has executed an agreement with ACS Merchant Services, the 25th largest credit card acquirer in North America, to provide automated merchant account application processing services for their internal and external sales channels using E-xact’s Speedy Merchant service.

Speedy Merchant is an on-line application service with real-time credit and risk assessment, decisioning, and set-up of merchant accounts. The service is customizable to an acquirer’s business rules, and provides connectivity with various third-party credit and risk service bureaus for real-time assessment. Built in a Windows environment, Speedy Merchant is easy to use and offers private labeling for clients interested in brand extension. Providing an automated means of collecting and transmitting complete applications, clients are ensured a single point of input from any sales location into their credit systems.

“We are excited to be implementing a private label product like Speedy Merchant. The flexibility of E-xact’s product will make it easier than ever to submit an application and receive a real-time response. We look forward to utilizing the expertise of E-xact Transactions, Ltd. to provide this solution to our customers,” said John Peterson, Senior Vice President of Information Systems for ACS Merchant Services.

By using E-xact’s automated application processing service, ACS will be able to take advantage of an on-line tool that provides a secure, flexible, automated solution for processing merchant account applications without the need for change to internal credit policies or rules.

“We are very proud of our accomplishment of developing such a value-added service for the credit card acquiring industry, and equally proud of the opportunity to work with such a respected name in the industry as ACS Merchant Services,” said Ted Henderson, President and CEO of E-xact Transactions. “Partners using our Speedy Merchant service can generate dramatic bottom-line results through increased revenues from greater sales efficiencies and can consider the impact of automation within their credit operations.”

About E-xact Transactions, Ltd.

With customers throughout the U.S. and Canada, E-xact Transactions specializes in the secure, real-time movement of mission critical financial information. E-xact offers its clients an on-line service for real-time assessment and decisioning for automated processing of merchant account applications through Speedy Merchant. E-xact also provides real-time transaction processing services for IP-based points of sale. E-xact’s popular on-line transaction software offers a robust e-commerce solution for companies selling goods and services in a variety of settings. Built with flexible architecture, E-xact’s services can be easily integrated into a wide range of platforms and include a suite of browser-based, value-added reporting tools that enable clients to better analyze and manage their businesses in real time.

Founded in Vancouver in 1998, E-xact Transactions Ltd. re-domiciled to the state of Delaware in July of 1999 and established U.S. headquarters in Lakewood, Colo., in December of 1999. E-xact continues to operate its international office in Vancouver. Public trading of its common stock commenced in March 2000 on the Canadian Venture Exchange (CDNX:EXZ.U).

About ACS Merchant Services

Founded in 1995, ACS Merchant Services, Inc. is led by Chairman/CEO Thomas Rouse and President Rusty Shaffer. Recently, GTCR Fund VII, recapitalized ACS Merchant Services, Inc. (ACSMS), one of the nation’s fastest-growing processors of credit and debit transactions, with a commitment of more than $100 million. ACSMS will soon be changing its name to TransFirst. One of the largest providers of merchant bankcard services to community banks across the United States, TransFirst processed $2.35 billion in annual credit card volume in the fiscal year ending June 30, 2000. The company employs more than 100 people at its Boulder, Colo., headquarters and serves nearly 400 community banks and 35,000 merchant customers around the United States.