Paymentech CEO

Paymentech confirmed this morning that CEO Pamela Patsley has resigned. The nation’s second largest processor and acquirer of credit card transactions announced that Michael Duffy, who has been with Paymentech eight years and COO since 1997, has been named as the next CEO. The transition from Ms. Patsley to Mr. Duffy is expected to be completed by April 1. Ms. Patsley has served as a top executive at Paymentech since its founding 15 years ago, when she took the position of CFO of the company’s original parent company, First USA. Paymentech processed approximately 3 billion total transactions and $93 billion in bankcard sales volume in 1999.

Details Hemorrhage, which operates the Web site and publishes Bank Rate Monitor, continues to hemorrhage cash. Yesterday the North Palm Beach, FL-based firm announced that it posted a $13 million loss in the fourth quarter to bring its total 1999 losses to nearly $34 million. The company went public last May and raised about $40 million in cash. As of year end 1999, had cash or cash equivalents of $22 million on hand.’s stock price is trading around $4 per share compared to its IPO price of $13 per share. Last year the firm spent $17 million to drive traffic to its Web sites. According to the company,’s Web sites attract about one million visitors per month. For 4Q/99 details on visit CardData ([][1]).




VISA International introduced the new ‘VISA Global Invoice Specification’ using ‘Extensible Markup Language’ yesterday. The new XML spec will enable users to exchange invoice and payment data across industries and technical processing platforms. Implementation of the specification enables corporations to negotiate prices and control costs, as well as increase productivity by eliminating manual processes. It is being introduced to encourage its adoption as an open standard in the global commercial marketplace. The new ‘VISA Global XML Invoice Specification’ was developed with VISA technology partners Commerce One, IBM, Sun Microsystems and ValiCert.


Equifax Dominance

Equifax will soon manage North America’s largest lifestyle and demographic database as well as the world’s largest consumer credit database. The development is the result of last night’s announcement that Equifax will acquire the direct marketing businesses of R.L. Polk & Co. Under the agreement, Equifax will pay approximately $260 million to Polk for its CIS Group that comprises four units: Direct Marketing, Data Information Services/Polk Verity,Compusearch/Prospects Unlimited of Polk Canada and Polk City Directory. These businesses, with projected sales of $165 million for the 12 months ending March 31, represent consumer information from more than 250 data sources on 180 million consumers (105 million households), including product registration data, direct marketing, geodemographic and analytical services. After the acquisition, Equifax will not only manage the world’s most valuable and respected credit information, but also North America’s largest consumer and self-reported lifestyle and demographic databases. The Equifax consumer credit database will remain separate from the acquired lifestyle and demographic databases. The deal is expected to close April 30.


Delinquency Decline

Trans Union reports this morning that borrower delinquency rates generally continued to decline in the fourth quarter. According to the report, the percentage of mortgage holders that are 30 or more days delinquent was virtually the same in the fourth quarter of 1999 as in the fourth quarter of 1998. The percentage of installment credit borrowers that were 30 or more days delinquent dropped by 44 basis points in the fourth quarter, compared to one year earlier, while the revolving borrower delinquency rate dropped by 48 basis points. Mortgage account balances continued their strong growth, with the average balance increasing 5.4% versus last year. The average revolving credit balance grew a more modest 1.8% compared to last year, while the average installment account balance stayed roughly flat. The report is based on consumer credit information gathered from ‘TrenData’, Trans Union’s advanced new database of aggregated time series credit bureau information.

Average Balance per Active Account

All Credit Mortgage Installment Revolving
Q3 1998 $7,850 $83,160 $10,510 $1,130
Q4 1998 $7,940 $84,030 $10,580 $1,120
Q3 1999 $8,700 $88,080 $10,910 $1,190
Q4 1999 $8,350 $88,530 $10,570 $1,140

Source: Trans Union LLC’s TrenData


CyberMark College Cards

CyberMark, the leading developer and supplier of smart card solutions for education, corporate, stadium, and government markets announces it will team with ITC Systems and IDenticam to provide a one-card solution for University and College Campuses in North America. The suite of applications offered will include identification, parking and access control, photo identification, multiple electronic purses, physical and logical access, banking services, cardholder loyalty programs, WEB authentication, and photocopier access.

“The partnership with ITC and IDenticam both broadens our product line, and provides the best of breed solutions for unattended devices and opportunity to focus our unmatched smart card product line in Canadian markets,” said Vince Ley, Vice President of Partnership Marketing for CyberMark. “CyberMark has also employed the services of P & M Consulting, Nova Scotia, as a marketing and sales presence in Canada and North American markets.”

“ITC is excited about the SmartWorld(TM) Canada network and is pleased to be involved with industry leaders CyberMark and IDenticam,” said Cam Richardson, President of ITC Systems. He further stated, “We believe the next 12 months are going to be extremely busy for all concerned and are elated by the positive feedback received to date from the marketplace.”

“The union of these three companies is a benefit to all parties by being able to provide a unique “One-Card” solution to any client’s needs by integrating to the Internet a smart card system, a POS system, and identification system,” said Jeff Sharpe, President of IDenticam Systems Canada. He further stated, “With such a strong team, our clients will feel confident that we would offer the most comprehensive and seamless solution for their smart card and badging needs.”

ITC Systems (ITC) is a world leader in integrated transaction control systems. In the past 12 years, ITC has developed a line of Unattended Point of Sale (UPOS) Terminals for a multitude of self-serve applications. Their UPOS Terminals are successfully installed on vending machines, copiers, laundry machines, cash registers and other self serve charge for use applications. To operate, a valid e-purse card is inserted, the purchase is made and the amount is deducted from the purse.

ITC supplies software products for network printing control and on-line meal plans. The Print Queue Manager product holds jobs in a NT or Novell environment and will charge the card when the user releases their print job. Multiplan is an on-line meal plan package that allows for debit, credit, payroll deduction and mealplans. For more information, contact Cam Richardson at Tel 416-289-2344, Fax 416-289-4790 or visit their website at [][1].

IDenticam has been a trendsetter in the field of digital imaging software since 1986. IDenticam is an international leader in personal identification systems and Canada’s largest identification company. An acclaimed innovator in digital imaging technologies, security database maintenance and ID verification software, IDenticam is universally recognized for quality products and technological innovations. To learn more about IDenticam, visit their website at [][2].

CyberMark teams with industry leading electronic commerce organizations via the SmartWorld(TM) Partnership Program to offer comprehensive smart card solutions. Founded in 1996, CyberMark is a leading electronic commerce company, specializing in the creation of smart card communities on the Internet and in closed campus environments. Cardholders conduct smart card based transactions using their cards at sites displaying the SmartWorld(R) logo. SmartWorld(R) is a registered trademark of CyberMark. To learn more about CyberMark, visit [][3].



UA Gets InControl

The world’s largest air carrier, United Airlines, has selected the InControl system to process its Air Travel Card transactions worldwide. InControl, which will replace United’s current billing system, offers a complete solution for their Air Travel Card billing needs. A flexible system, InControl was developed by the combined efforts of Air Travel Card. National Processing Company (NPC) and Quality Software Products (QSP, Inc.) InControl allows airlines to establish and build a direct relationship with their best customers, coporate travelers.

“After an extensive review of various alternatives, United Airlines is very pleased to have selected InControl,” said Lynn Hughitt, Vice President and Controller of United. “We believe InControl offers the most comprehensive billing system in the marketplace today. The improvements offered by this billing system will assist us in achieving our goal of establishing the United Airlines Air Travel Card as the most cost-effective corporate card program available. Our previous billing system did not have the flexibility we needed to trace and report on our customer’s travel activity. InControl meets every requirement we identified for an optimal billing solution.”

“Air Travel Card is very excited that United, the world’s largest airline, has selected InControl to manage its billing needs,” said Richard Crum, Managing Director of Air Travel Card. “United is the third airline to select InControl and demonstrates a major commitment by United Airlines to improve and expand its Air Travel Card corporate card program and will allow them unparralled opportunities for growth.”


Food Lion & NCR

NCR Corporation announced that Food Lion, Inc., has installed NCR’s Self-Checkout system in the Gainsboro Square Food Lion store located in Chesapeake, Va.

“Food Lion is committed to offering our customers the best possible service,” said Dave Morgan, Food Lion’s senior vice president of Operations. “With NCR’s self-checkout system, we provide shoppers another checkout option and greater convenience. In fact, our customers are already telling us they enjoy the experience of using these new systems and appreciate being able to choose either the convenience of self-checkout or the full service of traditional checkout.”

The Chesapeake store has been equipped with two NCR self-checkout systems as part of a Food Lion pilot program. Morgan said Food Lion may consider expanding the program to additional locations, following a successful evaluation period.

NCR’s self-checkout includes an NCR bi-optic scanner/scale, security subsystem, self-checkout software and a customized checkstand. NCR is the world leader in shipments of stationary bar code scanners, led by the company’s bi-optic scanner lines. NCR’s self-checkout won Microsoft Corporation’s 1999 Retail Application Developer (RAD) Award, which recognizes NCR self-checkout for its demonstration of industry leadership with a “best- of-breed solution that maximizes retailer business benefits.”

“Our shoppers who use this system can pay for their own purchases using credit cards, debit cards or cash,” Morgan added. “They can even use coupons and receive cash back from their transactions.”

“NCR brings years of leadership in self-service solutions and expertise in human factors engineering to the self-checkout market,” said Ron Southard, NCR vice president of Food Store Solutions for the Americas. “We make it possible for retailers to offer their shoppers a self-checkout system that is designed to be friendly and intuitive to use. This is important to a company like Food Lion, where the care and satisfaction of customers is a priority.

“In addition, NCR self-checkout can improve overall checkout efficiency for retailers, because it is open whenever the store is open,” Southard added. “Retailers also get the proven reliability and availability they expect from an NCR self-service system.”

About Food Lion

With 1,136 supermarkets in 11 Southeast and Mid-Atlantic States, Food Lion is one of the nation’s largest supermarket chains. Headquartered in Salisbury, N.C., the company and its 92,000 employees serve high-quality products at extra low prices to 10 million customers per week. Food Lion’s parent company, Delhaize America is a part of an international group of supermarkets. To learn more about Food Lion, visit the company’s Web site at [][1].

About NCR Corporation

NCR Corporation (NYSE: NCR) is a recognized world leader in providing Relationship Technology(TM) solutions for the retail, financial, telecommunications, airline and insurance markets. NCR’s Relationship Technology solutions include data warehousing, ATMs and point-of-sale systems. The company’s business solutions are built on the foundation of its long- established industry knowledge and consulting expertise, value-adding software, global customer support services, a complete line of consumable and media products, and world-leading hardware technology. More information about NCR and its products may be found at [][2].