Pinnacle FastRewards

Fast PayCheck Advance introduced ‘FastRewards’ this week, a new feature of its ‘Pinnacle’ smart card program. The free ‘FastRewards’ program offers cardholders the ability to earn one point for every dollar they spend online paying bills, making purchases and loading electronic cash to their smart cards through the Fast PayCheck web site. ‘FastRewards’ will be offered to both instant-issue and full-service cardholders at online, self-service kiosks and via cardholder PCs with Internet access, equipped with optional card readers. Under the online program, cardholders can register for the program, view ‘FastRewards’ point balances, browse the coupon catalogue and barter points for other rewards. The Florida-based firm specializes in issuing debit cards for so-called payday advance loans.

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NYCE Access

NYCE has signed Access Cash International as an ATM participant in its network. NYCE-branded cards will now have access to nearly 2,700 Access Cash ATMs located throughout the East and Midwest. The addition of these ATMs, which are expected to be live in the network with a few weeks, will bring the number of ATMs participating in the NYCE Network to over 38,000. Access Cash is an ISO with over 8,500 ATMs deployed. Access said it made the decision to join the NYCE network because of the competitive interchange rate. NYCE’s revised pricing schedule, which went into effect in February, offers an off-premises interchange rate of $.50 per cash withdrawal transaction.

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Vital Buys AMS

Vital Processing Services announced Wednesday it has signed an agreement to purchase certain assets and the business of AMS, LLC and its subsidiary, SupplyXpress. AMS is an industry leading point-of-sale terminal management services provider.

The agreement to add AMS and its subsidiary’s point-of-sale Terminal Management Services to Vital’s business is clear evidence of Vital’s plan to offer a comprehensive range of merchant services. Acquirers and merchants want single source solutions, and this acquisition will enhance Vital’s ability to respond to that market need.

These terminal management services include equipment procurement, deployment, “just-in-time” inventory management, replacement and repair services, merchant training and merchant supplies replenishment.

Terms of the transaction were not disclosed. Closing of the transaction is pending regulatory approval.

About AMS

AMS, LLC (AMS) is recognized as one of the industry’s largest providers of point-of-sale payment devices, accessories, supplies, and value-added support services. The company currently has a workforce of more than 90 people and had annual sales of approximately $27 million in the year ending Dec. 31, 1999.

About Vital Processing Services

Vital Processing Services(R) (Vital(R)) is a recognized leader in technology-based commerce enabling services. Vital’s clients include acquirers and merchant service providers that offer a wide variety of electronic payment processing services to merchants. Headquartered in Tempe, Ariz., Vital does not compete with its clients for their merchant business.

Vital services include merchant POS products, electronic authorization and data capture; VirtualNet(TM)Internet-commerce suite of services; clearing, settlement and exception processing; merchant accounting, billing, and reporting; operational fulfillment services (including chargeback and retrieval processing); risk management; and customer service. Vital is a merchant processing joint venture of Visa(R) U.S.A. and Total System Services, Inc.(R) (TSYS(R)) (NYSE: TSS) ([http://www.totalsystem.com][1]). Vital can be found on the Internet at [http://www.vitalps.com][2].

[1]: http://www.totalsystem.com/
[2]: http://www.vitalps.com/

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Cubic China

Cubic Transportation Systems yesterday won a $1.8 million contract to help a Chinese company integrate smart card technology into a new contactless card ticketing system for Shanghai Metro. The Shanghai Municipal Government selected the Huahong Group and the Shanghai Oriental Traffic Card Company to implement an intermodal smart card technology across all forms of the city’s public transportation, which includes the existing Lines 1 and 2 of Shanghai Metro Corp.’s urban rail system. Cubic is the supplier of the existing automated fare collection system that entered revenue service on Line 1 in 1999, and which is slated to begin operations on Line 2 within the next several weeks. Both magnetic stripe card technology and smart card fare payment products are provided by the system designed, built and installed by Cubic under a contract won in 1996. Under Cubic’s new contract, the Huahong Group’s own contactless card technology will replace the existing Mifare 1 smart card system. With Cubic’s integration under the new contract, the dual architecture will remain intact.

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E-Sign Coming

Credit card agreements may soon be fully executed online if a new federal bill becomes law. Yesterday the U.S. House overwhelmingly approved the conference report to S. 761, the ‘Electronic Signatures in Global and National Commerce Act’ (a/k/a E-SIGN), by a vote of 426-4. Its next stop is the Senate, before being sent to the White House for the President’s signature. The bill would give e-signatures and records the same legal backing as written signatures — allowing consumers to sign and seal business transactions in cyberspace, the same way they would in person. Specifically, S.761 would provide for the acceptance of electronic signatures and records in interstate commerce and, direct the Secretary of Commerce to promote the principles of this legislation overseas. The bill first introduced in May of 1999. The House approved the bill November 9, 1999 by a vote of 356-66, and the Conference Report to S.761 was filed last week.

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AmEx – JCB

American Express and Japan’s JCB Company are entering into a new partnership covering their merchant businesses in Japan, Australia, New Zealand, Canada and the USA. The agreement includes a range of reciprocal card acceptance, merchant acquisition and merchant processing/servicing arrangements between the two brands. Under terms of the agreement JCB will become a merchant acquirer for AmEx in Japan, and will assume responsibility for processing and servicing new merchants and, eventually, certain existing AmEx merchants. In Australia, New Zealand and Canada, AmEx will become a merchant acquirer for JCB and will assume responsibility for processing and servicing all new merchants and, eventually, certain existing JCB merchants. Also under Wednesday’s contract, AmEx will work with JCB to provide technical access to American Express-owned merchant terminals in the USA. The agreement will be implemented in phases beginning in Spring 2001.

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Star Witness

The Government’s key witness in the VISA/MasterCard antitrust trial took the stand late yesterday to say the card associations jointly agreed to slow down the introduction of smart cards in the USA. John Elliott, formerly of MasterCard and a consultant for American Express, testified that MasterCard was ready to rollout out smart cards but VISA was not, and therefore the technology was put on hold. However under cross examination, Mr. Elliott revealed he received half-million dollars as a consultant for American Express. He also admitted on the stand to having an additional eight to ten meetings, not including phone calls, with the DOJ as part of his work under his American Express consulting arrangement. VISA attacked Mr. Elliott last night insisting he purely represents American Express’ interests. VISA says American Express continues to pay his legal expenses including his lawyer appearing in court with him this week. VISA said while the smart card is a good idea in theory, the business case for the product in the U.S. does not exist.

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Delta & MoneyStream

Delta Capital Technologies, Inc. signed a letter of intent as the provider of e-Commerce and e-Merchandising solutions to customers of MoneyStream Services Inc., an electronic payment processing company based in Calgary, Alberta, Canada.

In the reciprocal agreement, Delta has co-sponsored a development project for the integration of its proprietary relBUILDER. technology with MoneyStream’s payment processing and security systems.

According to Delta, the deal represents nearly US$1 million in total revenues this year with another US$1 million in revenue flowing to MoneyStream. The total project over the next 18 months represents approximately US$6.6 million to the two companies.

“Delta and MoneyStream share the philosophy that providing superior service is the core of our business. This mutual agreement is the key that will unlock opportunities for both companies, strengthening the partnership,” said Mike Steele, Senior Vice President of Marketing and Development. “MoneyStream represents both a key strategic partner and technology provider complimenting the strengths of relBUILDER(TM) and our e-Business solutions.

“Together, Delta and MoneyStream will offer mission-critical e-Business applications meeting the growing needs of small-to-medium businesses typically overlooked by traditional banking institutions.”

Marc Bourgeois, MoneyStream’s Senior Vice President Sales and Marketing agrees: “The formalization of a partnership with Delta is an integral part of our ability to offer turnkey e-Business solutions to our respective clients.

“Relationships with companies like Delta allow us to meet our aggressive objectives for the rapid deployment of MoneyStream’s e-Business financial services. The Internet is emerging as our customer’s preferred banking interface providing businesses with vital financial information when and where they need it most.”

About Delta Capital Technologies, Inc.: Trading Symbol DCTG (OTC:BB)

Delta Capital Technologies is a Delaware-based software development company with offices in Calgary, Alberta; Vancouver, British Columbia; Seattle, Washington; and Austin, Texas. Delta’s proprietary technology is the relBUILDER(TM) suite of applications, a contextual rules and relationships e-Business program, allows end-user information owners to manage their own on-line operations efficiently and at reduced cost.

About MoneyStream Services Inc.

MoneyStream Services was founded in 1993, as Canada’s only full service electronic payments processing company. With the proliferation of the e-Business economy, MoneyStream has evolved and refined its offerings to satisfy its clients with the most comprehensive selection of electronic payment processing services, including credit card authorization, pre-authorized payment processing and electronics funds transfer services. Leveraging the power of the Internet, MoneyStream’s solutions simplify the way businesses move money.

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Cendant Canaries

Three former executives of Cendant Corp. pleaded guilty yesterday to criminal fraud charges for participating in a major accounting scandal to inflate revenues. The fraud was perpetrated prior to the merger of CUC International and HFS which created Cendant in late 1997. Cosmo Corigliano, Anne Pember, and Casper Sabatino testified yesterday that their actions were done at the behest of their superiors at CUC. The cooking of the books led to CUC overstating its operating income by $116 million between 1995 and 1997. As a result Cendant overstated its income by $170 million in 1997. The scandal led to a $3 billion+ settlement in a shareholder class action lawsuit and reduced Cendant’s market value by $14 billion. CUC and Cendant were major third-party providers of membership services to the nation’s top credit card issuers. All three face 5-10 years in prison and enforcement action by the SEC.

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Equifax – M&I Contract

Equifax Card Solutions announced that it has signed a multi-year contract with M&I Data Services for ATM driving, routing, and switching services. The agreement will enable Equifax Card Solutions to offer the advantages of single-point authorizationsor online transaction processingfor debit and ATM card processing. Card transactions, whether initiated at a point of sale terminal or automated teller machine , will be authorized based on real-time account information, providing increased security and faster, more accurate processing. This product offers special advantages for off-line debit card issuers who have a regional and/or national ATM service provider and for clients that are seeking a quality ATM provider.

![][1] Vince Pavese, senior vice president and general manager, Equifax Card Solutions, North America, said, ‘This partnership marks an important step forward. Like other processors, Equifax has traditionally processed off-line debit card transactions. We can now combine our superior back-office servicing with state-of-the-art POS, ATM, and off-line authorization processing. Financial institutions can come to Equifax for all their card processing needs’merchant, credit, debit, and ATM products. We are their total card solution.’

Mr. Pavese added, “The simplified processing is easy to administer and cost effective. Clients no longer need to send multiple cardholder balance files to various processors for debit card and ATM authorizations. All authorizations are routed through Equifax, and Equifax handles all settlements, improving the authorization decision and simplifying accounting duties. Equifax provides the means to improved authorization processing so that issuers can concentrate on more important matterstheir cardholders.’

‘We are pleased to work with Equifax in providing online transaction processing,’ said Joe Delgadillo, president and CEO, M&I Data Services. ‘Real-time authorizations deliver the kind of service that card issuers need to remain competitive with the leaders in the card industry,’ Delgadillo added.

Headquartered in Milwaukee, Wisconsin, M&I Data Services is a division of Marshall & Ilsley Corporation (NYSE: MI), a $24.4 billion holding company. M&I Data Services had total revenue of $583 million in 1999 and provides leading-edge technology solutions to the financial services industry, offering consulting, software, and processing solutions for financial institutions worldwide. The company’s rapid growth is being fueled by innovative product development, strategic product acquisitions, and strong growth of its customer relationships.

The Electronic Funds Delivery (EFD) Services Division of M&I Data Services provides transaction routing, switching, and authorizations for the electronic funds transfer industry. It supports all makes and models of ATMs and provides ATM and debit card processing. EFD also performs gateway services and has network interfaces to all of the major regional and national ATM and point-of-sale (POS) networks. The EFD Services Division provides complete credit card and merchant services, e-commerce, credit approval, portfolio risk management, neural-network fraud detection, fraud investigation, and comprehensive card personalization services. For more information, visit the M&I Data Services Web site at [www.midata.com][2].

Equifax Card Solutions is the nation’s largest card processor for credit unions and independent banks, bringing card processing services and marketing solutions to more than 5,000 clients in the United States. Equifax also delivers high quality card processing services to clients internationally in the United Kingdom, Argentina, Brazil, Chile, and India. Equifax card processing software is used by financial institutions in 30 countries around the world.

Equifax ([www.equifax.com][3]), a worldwide leader in shaping global commerce, brings buyers and sellers together through its information management, transaction processing, direct marketing, and customer relationship management businesses. Atlanta-based Equifax (NYSE: EFX) serves the financial services, retail, credit card, telecommunications/utilities, transportation, information technology and healthcare industries and government. Equifax adds knowledge, expertise, convenience and security to provide value-added solutions and processes for its customers wherever they do business, including the Internet and other networks. Equifax employs about 15,000 associates in 16 countries with sales in almost 50 and has $1.8 billion in revenue.

[1]: /graphic/midata/midata.gif
[2]: http://www.midata.com/
[3]: http://www.equifax.com/

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