Internet Fraud Screen

CyberSource Corporation and Visa U.S.A Wednesday announced the integration of a new, more powerful fraud detection model into the CyberSource Internet Fraud Screen enhanced by Visa, Version 4.0 (IFS V4.0). The new model, built using a combination of neural network and rules-based modeling technology, is the first to use card association reported fraud information to accurately predict Internet fraud.

This new model is the second phase in a partnership between CyberSource and Visa U.S.A. to jointly develop, promote and expand the capabilities of the CyberSource Internet Fraud Screen enhanced by Visa. During this phase, Visa validated CyberSource’s fraud screening system against the card association’s extensive history of reported fraud information -? enabling CyberSource to refine the accuracy in weighting the different variables that are analyzed for fraud. The relationship also involved the joint development of a combined rules-based and neural network model and a closed-loop data modeling process based on Visa’s conclusive transaction results and CyberSource’s Internet transaction histories.

“Our partnership with Visa continues to reap rewards for online merchants, consumers and our financial institution partners as we hone our fraud screen and provide a secure environment for conducting business on the Internet,” said Evan Ellis, president and COO for CyberSource. “This reinforces our leadership position in providing an accurate fraud detection system for Internet-initiated transactions.”

The combination of expert rules-based and neural modeling together with Visa’s extensive history of reported fraud allows the CyberSource Internet Fraud Screen enhanced by Visa to rapidly detect both obvious and subtle erroneous patterns across thousands of transactions. This helps merchants to better assess and make judgements on potentially fraudulent transactions across all card types and reduce the risk of rejecting a valid order.

“The new closed-loop system allows merchants to streamline order acceptance practices, helps to create a secure shopping environment for consumers and merchants alike, and furthers mainstream acceptance of eCommerce,” said Laurie Ailworth, senior vice president, Product and Operation for e-Visa.

The Importance of Card Association Modeling and Reported Fraud Validation

Unlike other services that rely on merchants or consortiums to voluntarily provide data on fraudulent transactions, the new CyberSource/Visa model is the first to use definitive and card association transaction results to model fraud risk. Such modeling delivers one of the most accurate and predictable means of managing fraud risk. The enhanced model is proven to increase fraud capture rates over the previous model by at least 20 percent.

About the Internet Fraud Screen enhanced by Visa

The CyberSource Internet Fraud Screen enhanced by Visa screens eCommerce transactions and measures the predicted level of risk associated with each order, returning a related risk score back to the merchant in real time. This service not only provides a more efficient risk management tool for merchants, but also provides a higher level of security online. Keeping with the Visa policy of ensuring cardholder security, no individual transaction data is released by Visa during any development or fraud screening processes.

The CyberSource Internet Fraud Screen enhanced by Visa uses data validation, artificial intelligence pattern matching, network data aggregation and negative file checks as it examines more than 150 different factors to calculate the predicted risk of fraud associated with an online purchase. Merchants have the flexibility to tailor specific seasonal or other deviations in their expected customer behavior. Online merchants can run a pending credit card request through this online service and receive a rating or “score” that assesses the likelihood of fraud. Merchants then make a decision about whether to accept or reject the order. The average time for the fraud screening process is less than one second.

Pricing and Availability

The CyberSource Internet Fraud Screen enhanced by Visa version 4.0 is available immediately and detects fraud for all major/credit/debit card types. The partnership between CyberSource and Visa continues to entitle US merchants to receive a discount on IFS transaction fees when a Visa credit card is presented. For more information on pricing, please contact a CyberSource representative or an authorized CyberSource reseller.

About Visa U.S.A.

Visa is the leading card brand and the largest payment system worldwide. It plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions, their cardholders and the global economy. Visa is the only consumer payment system to facilitate $1.4 trillion worth of purchases of goods and services in a fiscal year. Visa’s 600 million cards are accepted at more than 17 million worldwide locations, including more than 500,000 ATMs in the Visa/PLUS Global ATM Network. Visa’s Internet address is [][1].

About CyberSource Corporation

CyberSource is a leading developer and provider of eCommerce transaction services, and a pioneer in Internet fraud detection. More than 1200 Internet merchants in more than 26 countries have chosen to use CyberSource services. CyberSource provides mission-critical reliability with the CyberSource Internet Commerce Suite, offering merchant-controlled, real-time services including: Payment Services, Gift Certificate and Promotional Services, Tax Services, Risk Management Services, Distribution Control Services, and Fulfillment Management Services. Customers of CyberSource include leading Internet merchants and businesses selling online including:,,, BUY.COM, Casio, Compaq Computer,,,, and Remedy. For more information visit [][2] or email to or



Smart-J Chip Award

NCT Group, Inc. announced that STMicroelectronics has been named a winner in the Advanced Card Awards 2000 for the Smart-J chip. This 32-bit smartcard chip offering direct Java(TM) processing was developed by Advancel Logic Corp., a subsidiary of NCTI. Advancel receives a royalty on every smartcard sold by STMicroelectronics. The Advanced Card Awards is the UK’s premier awards program recognizing excellence and innovation in the smart and advanced card industry.

“We are proud that STMicroelectronics, the undisputed worldwide leader in smartcards products, has embraced our subsidiary’s technology and that this technology has been recognized as the best new chip for smartcards,” said Michael J. Parrella, President, NCTI.

According to published market data, 1.15 billion smartcard chips were shipped in 1997. The total chip market is anticipated to exceed $1.4 billion in the year 2000.

A smartcard contains an embedded integrated circuit that can process information on the card once inserted and powered by a card reader. Examples of microcontroller smartcards are the electronic purse credit/debit card functions, ID cards that provide authorized access to networks and subscriber identification modules (SIM) that secure certain PCS cellular phones against fraud. The emergence of multi-function/multi-application needs in various application fields requires higher complexity, larger memory sizes and higher performance chip architectures.

STMicroelectronics is a global independent semiconductor company with strong European roots listed on the New York Stock Exchange (NYSE: STM) and on the Bourse de Paris. It designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronics applications, including telecommunications systems, computer systems, consumer products and industrial automation and control systems. In 1997, the company was recognized as one of the world’s best companies by Industry Week and Upside Magazine. Further information on STMicroelectronics can be found at [][1].

Advancel Logic Corporation, a wholly-owned subsidiary of NCT Group, Inc. is located in San Jose, California. Advancel is a developer of algorithm-specific microprocessor cores with native Java execution. The company offers a family of highly-optimized processors for embedded applications. For more information, refer to the company’s World Wide Web site at [][2].

NCTI is a leading technology developer with an extensive portfolio of proprietary algorithms and a wide variety of product offerings for consumer, commercial and industrial applications. The Company specializes in the utilization of sound and signal waves to reduce noise, improve signal-to-noise ratio and enhance sound quality. For more information, refer to the company’s World Wide Web site at [][3].


Details POP Net Head, an online bank specializing in the small business market, announced Wednesday the appointment of Edward J. Bourgeois, 43, Senior Vice President, Points of Presence Network. Bourgeois’ primary responsibilities will be to oversee the strategic implementation and ongoing operations of’s Points of Presence Network transactions through its Internet-enabled ATMs that will be connected to’s website.

“Ed brings years of experience in both the technical and operational side of ATMs, as well as experience in operating a small business and community banks. As we embark on our new strategy of expanded presence, we believe Ed has the knowledge and skills to make it happen,” said Rich Parlontieri, Chairman and CEO of

Bourgeois had previously served as president and COO of New Orleans-based Automated Technology Machines, Inc., which he founded in December 1994 as a subsidiary of Firstrust Corporation. ATM Inc is a full-service, owner-operator and processor of ATM and point-of-sale transactions with annual sales of $10 million and a presence in 33 states. From 1994-96, Bourgeois served as President and CEO of another Firstrust subsidiary, First Bank and Trust, a $150 million community bank specializing in small businesses. Before joining Firstrust, Bourgeois served for 11 years as EVP, Treasurer and Director of First National Bank of Jefferson Parish, Gretna, Louisiana, a $450 million consumer and commercial bank.

A CPA, Bourgeois is a member of the American Institute of Certified Public Accountants and the Louisiana Society of CPAs. He earned a Bachelor of Science in Accounting with a minor in Computer Science from Nicholls State University in Thibodaux, LA.

About, Inc.

Based in Atlanta, GA,, Inc., a unitary thrift holding company, is tailored to serve the financial needs of small businesses through the Internet and planned centers or partner banks in regional markets. Through its subsidiary thrift, ebank, the company provides a broad array of financial products and services to its small business and retail customers, including its signature eSweepsm service, checking accounts, money markets, CDs, ATM cards, insurance products, equipment leasing, home loans, commercial loans, credit cards, bill payment services, and human resource services.’s complete line of products and services should eventually include accounts receivable financing, “smart chip cards” via its ATM network, and other financial products and services designed to serve’s small business and retail customers. For more information, visit [][1].



P-Card Sales Tax

A new MasterCard study, released this week, found that purchasing card program sales tax can be effectively managed. Additionally, handling sales tax data was more manageable for companies with substantial purchasing card programs. MasterCard says companies with purchasing card programs experienced fewer sales and use tax reporting and back-up challenges when audited by the states. Called ‘Capturing Sales Tax of Purchasing Card Purchases’, the study, conducted by Gunn Partners, targeted the end-to-end purchasing card process and examined 22 large companies with revenues ranging from US$1 billion to over US$100 billion. Of those companies, nine had been audited by state tax authorities, and five agreed to be interviewed for the research. These five companies issued between 3,000 and 20,000 cards to employees with typical transaction limits from $1,000 to $5,000 per item. For these companies, the average cost of processing purchases through traditional processes was $6.07, but only $1.41 for purchasing card transactions.


Mobile Money

Pixo, Inc. and are teaming up to enable consumers to send money securely and easily over the Internet to anyone with an email address from any Pixo-enabled smart phone. Current online payment systems often require users to know the bank account numbers of the recipient. With the Pixo-powered ‘’ service, users can conduct a transaction simply by registering online for the free service and entering the recipient’s email address and transaction amount. The new ‘’ solution is enabled by Pixo’s HTML/WML microbrowser. Taking advantage of new packet data networks such as ‘GPRS’ and ‘CDMA2000’, the microbrowser will be capable of accessing HTML-based content on the Web and reformatting this content for effective presentation on a wireless phone display. Through its support of wireless mark-up language, the microbrowser will also be capable of supporting WAP-based content and services over packet data networks.


P-Card Assn

Credit Card Solutions announced Tuesday its sponsorship of the newly formed National Association of Purchasing Card Professionals. The NAPCP acts as a self-directed organization for the advancement of purchasing card professionals and practices. The primary objectives of the organization are to move the purchasing card market forward, provide an organized forum for networking, provide direction for the industry, educate purchasing card professionals and set and communicate standards. CCSi is an ‘Alliance Sponsor’ of the NAPCP. VISA is a ‘Platinum Alliance’ sponsor and MasterCard is a ‘Silver Alliance’ sponsor of the new organization.


JustWebit & ECHO, Inc. announced a partnership with Electronic Clearing House.

Electronic Clearing House will provide with a convenient and cost effective solution for integration of online payment processing. has incorporated this feature into its free e-commerce website builder. Businesses have the ability to build a free web site at [][1] with this feature or transform an existing web site into a real time transaction electronic storefront.

According to the partnership, customers will be automatically linked though Electronic Clearing House’s processing center and’s payment gateway to process customer transactions through a secure socket layer in less than 3 seconds. The gateway includes fraud protection and credit card payment processing.

“By scripting our own gateway to the Electronic Clearing House processing center we are able to pass on additional savings to our clients. This process eliminates the gateway fees currently charged by other e-commerce web site hosting companies. This partnership reflects our commitment to constantly provide better services to our rapidly growing member base,” said’s Vice President of Sales and Marketing Chris Flores.

“By achieving our goal of providing free technology with low cost add-on services and marketing resources, our customers are allowed to focus on their business growth, thereby increasing their own success,” stated J.R. Marple, President of

The new e-commerce package with a merchant account and technical assistance is available by calling 1-800-264-0408. Once approved for a merchant account, members will immediately be able to process online transactions. is an innovative full service e-commerce solutions company that currently hosts over 3,000 websites. The Company’s target market is small to mid-sized businesses. Nearly 30 million small businesses operate in the U.S. today and very few conduct business online. With small businesses currently generating nearly half of the gross domestic product, believes that small business online sales is poised to explode in the coming years. Leading industry research estimates that 900,000 new small business websites will be set up in the year 2000 alone. plans to create a niche in the small business market with its free e-commerce web site builder and hosting services.

For a current investor facts report on, go to .



Paytrust CDO, the service that lets consumers receive, review, pay and organize all of their bills online, announced the appointment of David S. Fortney to chief development officer.

Fortney was formerly chief development officer for Integrion Financial Network, and led product strategy and technology development for Integrion’s e-commerce platform for banking, bill payment and bill presentment, serving the needs of 1.5 million end-users.

“We are extremely pleased to have David Fortney join the management team at,” commented Edward G. McLaughlin, co-founder and CEO of “David’s strategic insight, product management and strong history of successful alliance partnerships will have an immediate, positive impact on our core development initiatives.”

Fortney is a frequent advisory council member and industry spokesperson, speaking at forums such as BITS (Banking Industry Technology Secretariat). During his tenure at Integrion, Fortney managed technology relationships with key partners including IBM, Checkfree, Intuit, Microsoft and Transpoint. Prior to joining Integrion Financial Network, Fortney served as senior vice president of NationsBank Corp. in the Strategic Technology Group. While at NationsBank, Fortney was responsible for several of the company’s initial e-commerce efforts and received the CEO’s “crystal hand grenade” award for his efforts.

“’s innovative bill payment service has attracted nationwide consumer attention,” said David Fortney, chief development officer for “I am excited to be joining the company at such an integral stage in its development, and I look forward to guiding the evolution of the technology to further improve the bill management process for our clients.”

Before NationsBank, Fortney served at the Lawrence Livermore National Laboratory and oversaw the development of algorithms and software to evaluate nuclear systems effectiveness. Fortney was a Morehead Scholar at the University of North Carolina and received his M.S. in Operations Research from Stanford University.

About is the flagship service of Secure Commerce Services Inc., a privately held company based in Princeton, New Jersey. Founded in October 1998, the company is financially backed by investors including American Express, AT&T Ventures, GE Equity, SOFTBANK Venture Capital, and Spectrum Equity Investors. More information on the company can be found on its Web site located at [][1] or by calling 1-877-PAYTRUST.



E-Gaming Fraud Fighter

eSuccess Inc. has licensed Nestor’s ‘PRISM eFraud’ on-line fraud detection solution to detect high-risk transactions in eSuccess’ ‘Citadel’ fraud detection and risk management service, which processes payments for worldwide on-line and Internet gaming clients. ESuccess says its partnership with the Interactive Gaming Council has enabled the firm to use consolidated gaming data from its members to remove the silo effect now used by criminals to circumvent the present mechanisms. ‘PRISM eFraud’ is an advanced, real-time solution for detecting fraudulent on-line transactions. It is based on the same technology used by bankcard issuers. The system combines neural network risk models and parameter-driven, user-defined strategies to maximize authorized purchases and minimize fraud-related charge-backs. Nestor says its will develop a neural network fraud detection model using payment data from the eSuccess ‘Citadel’ database, the first industry-wide comprehensive transaction risk management database.


Pinnacle Cash Card

Pinnacle Business Management Inc. has now launched its advanced Intranet and Internet technologies. PCBME has now expanded its mini-loan service to the global market through the Internet with its electronic multi-lingual funds tracking and transfer technology at [][1].

PCBME’s aggressive expansion should have an exponential effect on the company’s bottom line as it now has access to the billions of customers around the globe.

This move will far exceed any past expansion in the company’s two-year history, which currently has over 1,000,000 locations worldwide, including facilities at MailBox ETC, Bank of America, Wells Fargo, Chase Manhattan, Citibank, 1st Interstate, Washington Mutual and all major banks worldwide. In addition to PCBME’s new Internet service, the new Pinnacle Cash Card also allows customers to convert their monies in bank accounts into instant cash for anyone anywhere in the world. PCBME’s Cash Card is the equivalent of a “plastic wallet.”

PCBME’s popular mini-loans are used for advances on salaries for the purpose of providing for special occasions such as birthdays, anniversaries and holidays. Clients get what they need and repay it through their next paycheck.

Financial analysts feel this system is not only convenient to millions of customers around the world but also a very positive application of the loan process to establish a sense of financial responsibility for younger clients and others who wish to develop a positive credit history.

PCBME’s proprietary technology base takes advantage of the ongoing growth of E-commerce popularity by enabling merchants and clients to be paid faster, and goods to be shipped sooner and more efficiently. PCBME expects extremely rapid and aggressive growth in the next few months to establish itself amongst the Internet giants.



Jan Net Effect

January proved to be the most active month to-date for Internet surfing. NextCard continued to rank among the top advertisers on the Web, ranking #7 overall. However, among top banner ads last month, Providian held the #2 and #3 slots with GetSmart ads, while NextCard’s banner ads ranked #5 and #7. According to the latest report from Nielsen/NetRatings, the average click rate for top banners during January stood at 0.47%, a 2.2% increase over December. Meanwhile, reports daily traffic consistently exceeded 10,000 visitors per day during January. According to Nielsen/NetRatings, overall surfing time rose 14% during January, from an average time spent online of 8 hours and 17 minutes in December to 9 hours and 27 minutes in January. Women accounted for the majority of the time increase by spending an hour and 22 minutes more in January than they did in December. Men surfed 55 minutes more in January than they did in December. Men, however, still logged in more time than women, spending an hour and 44 minutes more than women in January. The rise in surfing time can be attributed to the simple fact that people tend to stay indoors during the winter months and occupy themselves with indoor activities. The research firm noted that people’s attention turned away from shopping and more toward sites that focused on self-improvement and home improvement.


Internet FraudBuster

TrustMarque Canada Ltd., a leading provider of e-commerce services, announced Tuesday the launch of FraudBuster, its new Internet fraud detection service. Launched by trusted and secure e-commerce specialist, TrustMarque Canada Ltd., FraudBuster effectively reduces fraud risk to less than 1-percent of transacted revenues. The entire process is completed in less than 3 seconds and is transparent to the consumer.

FraudBuster controls an e-merchant’s exposure to charge-backs and potential losses through credit card acceptance or merchant accounts. Not only does the solution minimize the risk of fraud, it ensures credibility and avoids expensive diversion of resource — key factors for success in the digital economy.

“We are extremely pleased with the development of such an important risk assessment service”, stated John Giannatsis, vice-president, Information Technology, TrustMarque Canada Limited. “Industry averaged results for credit card purchases show that up to 30 percent of transactions are at risk. This high rate of fraud continues to plague e-businesses despite traditional credit card authorization verification methods. This is the reason that our IT team worked incessantly to develop this new technology. We are now in a better position to answer the needs of so many online businesses that are being robbed of their profits by fraudsters, ” commented Giannatsis.

Fraud screening technology must be integral to any e-commerce business strategy. If it isn’t, e-merchants are leaving the door wide open for Internet fraudsters. “Few e-businesses realize that even when the bank has authorized a transaction, they are still 100% liable for “card holder not present” charge-backs,” stated Mike Di Domenico, executive vice-president, TrustMarque Canada Ltd.

The FraudBuster application forms part of TrustMarque’s secure payment service. This is just one of the services available through TrustMarque’s Trusted Trading Platform (TTP) and the core infrastructure for trusted and secure information, digital and payment commerce.

The company also develops trusted e-commerce back office systems and a portfolio of Internet transaction applications and services including payment and order processing, intellectual property rights distribution and auditing, and document delivery and certification.

About TrustMarque Limited

TrustMarque International Limited, headquartered in the UK, is one of the leading global services providers of e-commerce solutions. TrustMarque offers innovative technology and superior and secure services that give merchants more control over the management of their online business.

TrustMarque’s global network consists of subsidiaries in North America, Singapore and South Africa. Founded in 1997, TrustMarque International Limited, now with more than 60 employees worldwide, is the online back-office solutions leader and one of the world’s largest e-commerce service providers. The company’s clients include some Fortune 500 companies. TrustMarque’s temporary web site is located at