US Bancorp Payment Execs

U.S. Bancorp announced Monday the following appointments within its Payment Systems division, which is composed of the company’s Corporate Payment Systems, Retail Payment Systems, Network Services, Credit Cycle and Merchant Processing functions.

Gail N. Maier has joined Retail Payment Systems as head of the company’s consumer credit and business card function. Maier most recently owned and operated Four Dimensions Holding, Inc., a manufacturer of high-end customized home storage systems based in Oakland, Calif. She was previously associated with Bank of America, where she served as executive vice president of global retail banking and at GE Capital/Retailer Financial Services in Stamford, Conn. She held a series of increasingly significant general management roles at GE Capital including senior vice president of quality, president and CEO of Montgomery Ward Credit, senior vice president of the Lowes Credit Center, vice president of Apple Computer Credit and marketing director.

Robert T. Abele has been named head of Corporate Payment Systems, which provides corporate card and purchasing card programs and services to businesses and government. Abele will be responsible for sales and relationship management as well as PowerTrack, Corporate Products, Voyager Fleet Systems, Marketing Communications and C.A.R.E., the company’s Web-based Customer Automation and Reporting Environment. He has most recently served as senior vice president of Network Services. Abele succeeds Steven M. Putney, leader of sales and relationship management for Corporate Payment Systems, who has accepted a position with PaySys International, Inc., an Atlanta-based software firm. Abele has been associated with Corporate Payment Systems since 1991, when he joined U.S. Bancorp as national sales manager for Corporate Payment Systems. Prior to joining U.S. Bancorp (then First Bank System), Abele was associated with Fidelity Bank in Philadelphia.

Abele’s additional duties were previously held by Mark S. Coronna, who has been named head of the Electronic Payments Services Group, a new department which will be responsible for new product development and new business opportunities across Payment Systems, including National Bank Payment Systems, Business-to-Business Electronic Procurement and Payment and Enterprise Use of C.A.R.E. Coronna, a 20-year veteran of the commercial payment systems and technology-based industries, joined U.S. Bank from Deluxe Direct, where he was vice president of electronic commerce. Prior to that time he was associated with Persoft, Inc., R-Scan Corporation and Open Systems, Inc.

Margaret A. Utke-Christianson, has been named head of Network Services, succeeding Abele. Network Services is composed of U.S. Bank’s ATM network and the company’s electronic transaction processing business. Utke-Christianson has been associated with U.S. Bancorp (then First Bank System) for 20 years, serving in a variety of capacities in electronic delivery and product management. She has held her most recent position as vice president and delivery integration manager in the ATM area since 1996.

“Gail brings extensive experience in the financial services industry to Retail Payment Systems and we’re happy to have her join our group,” said Daniel J. Frate, president of U.S. Bancorp’s Payment Systems division. “Additionally, we’re also pleased to be able to provide internal people with challenging new opportunities. Rob is a recognized leader who has done a fantastic job building our current book of business and has excelled at client relations. Marge and Mark have been significant contributors to the success of Payment Systems. I’d also like to thank Steve for his contributions to Corporate Payment Systems and wish him well in his new endeavor.” Putney served in sales and relationship management for Corporate Payment Systems since 1996 and prior from 1990 to 1995. From 1995 to 1996, Putney was associated with EDS in Plano, Texas.

Minneapolis-based U.S. Bancorp, with $77 billion in assets, is the 13th largest bank holding company in the nation and operates approximately 1,000 banking offices in the Midwest and West. The company provides comprehensive banking, trust, investment, and payment systems products and services to consumers, businesses and institutions. It operates a network of 5,300 ATMs and provides 24-hour, seven-days-a-week telephone customer service. The company offers full-service brokerage services at approximately 100 offices through U.S. Bancorp Piper Jaffray, the 11th largest brokerage in the nation. The company is the largest provider of Visa corporate and purchasing cards in the world, and is one of the largest providers of corporate trust services in the nation. For further information, please see the U.S. Bancorp web site at [http://www.usbank.com][1]

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

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Assets Not Fees

New research released Monday by Jupiter Communications shows that financial services firms that focus on gathering assets, not driving transaction fees, will dominate the Internet. The new research showed that the adoption of online financial management by more mainstream consumers is the catalyst for numerous changes to this landscape. The new online financial services consumer represents a less affluent demographic group that tends to trade less frequently than current users. Jupiter advises firms to look beyond their traditional client base and reach out to consumers who have purchased goods online. A recent Jupiter/NFO Consumer Survey indicated that there is a strong correlation between online shoppers and traders: More than 40% of US online shopping households also bank or trade online. A smaller but significant 30% of US banking households will manage their bank accounts online in 2003, growing from just under four million in 1998 to 26 million by 2003.

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Mixed Bag

Charge-offs and delinquencies spiked up during August according to new data released this morning by Fitch IBCA. Charge-offs, among credit card-backed bonds, inched up to 5.58% from 5.55% last month. Meanwhile 60+ day delinquency edged up slightly by four basis points to 3.00%, but still remain at its lowest level in nearly three years. Monthly payment rates rose for the fifth straight month to 16.99%. The best news is the gross yields have been rising all summer. Fitch IBCA’s data are based on $207 billion in asset-backed card securities for the August collection period.

CREDIT CARD SECURITIZATION PERFORMANCE
Period CO GY MP DL SP
Aug99 5.58% 19.62% 16.99% 3.00% 5.81%
Jul99 5.55% 19.04% 16.56% 2.96% 5.80%
Jun99 5.75% 18.86% 16.44% 2.95% 5.63%
May99 5.95% 19.71% 16.36% 3.03% 6.04%
Apr99 5.91% 18.65% 15.96% 3.02% 5.64%
Mar99 5.94% 20.24% 16.87% 3.14% 5.92%
Feb99 6.05% 19.49% 15.44% 3.25% 5.69%
Jan99 6.10% 19.23% 15.82% 3.28% 5.37%
Jun98 6.72% 19.10% 15.34% 3.17% 4.14%

CO-chargeoffs; GY-gross yield; MP-monthly payment rate; DL- 60+ day delinquency rate; SP-3-month excess spread Source: Fitch IBCA

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VF E-Gift

VeriFone signed an agreement Monday with CA-based One Network to integrate VeriFone’s IPS (Integrated Payment Solution) software as a framework for One Network’s electronic-gift-certificate system. One Network said this morning it plans to implement more than 14 IPS modules, including debit authorization, draft capture and settlement, and reporting. Unlike gift cards sold in stores today, IPS’ real-time reporting functions via the Internet will provide merchants with valuable information regarding their customers’ shopping demographics. Using IPS technology, merchants will be able to record and track e-gift cards by a pre-encoded card account number and/or certificate type.

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Magna Class Printers

Credentia, a Datacard Group company, Monday unveiled its Magna Class of card printers at the American Society for Industrial Security (ASIS) ’99 seminar and exhibit in Las Vegas. The new card printer family includes eight high-speed models designed for mid-volume card issuance operations.

“The Magna Class introduction furthers our claim as the industry leader in card printers,” said Eric Freudenheim, vice president of product marketing for Credentia. “These models provide a wealth of features, options, price and selection to meet the needs of any mid-volume operation on any budget. They are an ideal solution for secondary schools, colleges, universities and other cost-conscious organizations that manage secure access control systems and issue ID badges.”

Four full-color printers and four one-color printers comprise the Magna Class. The ImageCard(R) M, M2, ML and M2L models print up to 180 cards per hour in full color, offering a choice between one-sided or duplex printing, with or without inline application of DuraGard(TM) protective overlays for extra card security and durability. The UltraGrafix(R) M, M2, ML and M2L offer the same choices in monochrome printing at up to 650 card-per-hour print speed.

All eight models feature “edge-to-edge” printing and Tru Image(TM) color enhancements to make color more life-like, with optional smart card personalization and/or magnetic stripe encoding.

“Like all Credentia card printer families, the Magna Class was designed with ease-of-use in mind, featuring point-and-click simplicity and an exclusive smart printer driver that offers intuitive, on-screen error prompts and instructions,” Freudenheim said. “We also added features like an operator-replaceable printhead and hands free card cleaning to increase uptime and reduce service expenses.

“We truly designed these printers so that mid-volume card issuers have no reason to look anywhere else,” said Freudenheim.

Credentia offers identity systems designed to protect people, property and profits in an increasingly digital world. Credentia systems harness the power of smart cards, digital imaging, biometrics, Internet access and other emerging technologies. Solutions include tools for card personalization and identity management, as well as the world’s best-selling line of photo ID systems, software and printers. Credentia is a Datacard Group company. Datacard Corporation, doing business as Datacard Group, is privately held and based in Minnetonka, Minn. Datacard Group serves customers in more than 120 countries. ([www.credentia.com][1])

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

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Free Ski

Southwest Airlines and VISA are gearing up to launch a sweepstakes this Friday that offers an entire ski season of free airfare on Southwest Airlines. The “Ski Free with VISA and Southwest Airlines Sweepstakes” will run from Oct. 1, 1999 through Feb. 29, 2000. Contestants automatically receive one sweepstakes entry each time they use their VISA card to purchase a Southwest Airlines ticket or ‘Southwest Vacations’ package. The winner of the sweepstakes can look forward to an entire ski season of free airfare, hotel, and ground transportation for themselves and a companion, plus $5,000 worth of ‘VISA Travelers Cheques’ to use for lift tickets and other travel related expenses. A random drawing from all eligible entries will be conducted by VISA U.S.A. on or about April 1, 2000.

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New I-Card

Security First Network Bank announced this morning a new Internet-based VISA card. The new card offers instant online approvals and is multi-featured credit card with bill presentment/payment options. The ‘SFNB VISA Gold’ and ‘Classic’ credit cards features an electronic bill due reminders, balance transfers and bill consolidation, and membership to the SFNB exclusive ‘SecureMiles’ travel program. Cardholders receive one ‘SecureMile’ for every purchase dollar spent and SFNB will give each new customer 500 ‘SecureMiles’ at no cost. In addition, the first time a cardholder uses the card, he or she automatically receives 2,500 ‘SecureMiles’. ‘SecureMiles’ can be redeemed on any major U.S. airline with no blackout periods. The new no-annual-fee ‘Gold’ and ‘Classic’ VISA cards offer an intro rate of 3.9% for the first six months, followed by a 9.9% APR and 12.9% APR, respectively.

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ACS Moves SPS Headquarters

Associates Commerce Solutions (ACS), a subsidiary of Associates First Capital Corporation, Monday dedicated its new headquarters in Deerfield, IL. More than 350 employees will occupy the 125,000 square foot facility. The grand opening also marked the company’s official name change from SPS Payment Systems to Associates Commerce Solutions. The company moved from Riverwoods, Ill.

“We are pleased so many distinguished community leaders could join us for our grand opening. This new facility represents the strong growth potential for Associates Commerce Solutions,” said Joseph N. Scarpinato, senior executive vice president, Credit Card Operations, Associates First Capital Corporation.

As a living symbol of ACS’ commitment to its new community, a mature tree was donated to support Deerfield’s efforts to revitalize downtown.

Associates Commerce Solutions is a leading provider of consumer private label credit card programs and technology-based commerce solutions. Its clients include Gateway Computer, Goodyear, Helzberg Diamonds, Office Depot, Office Max, Radio Shack, Staples and Value America. It has operations centers in Asheville, N.C.; Gray, Tenn.; Sioux Falls, S.D.; and Layton, Utah. ACS employs approximately 4,200 individuals throughout these locations.

Dignitaries who participated in the dedication and grand opening ceremony included Illinois State Senator Terry Link; Derek Ragona, trustee, Village of Deerfield; Pam McDonough, director, Illinois Department of Commerce and Community Affairs; Vicki Case, president, Deerfield Chamber of Commerce; Jerry O’Mally, managing director, CarrAmerica; Joe Scarpinato, senior executive vice president, Credit Card Operations, Associates First Capital Corporation; and Dick Robinson, president, Associates Commerce Solutions. ACS employees also joined in the ceremonies.

Associates First Capital Corporation, established in 1918, is a leading diversified finance company providing consumer and commercial finance, leasing, insurance and related services worldwide. The Associates has operations in the United States and 13 international markets. Headquartered in Dallas, it is one of the nation’s 100 largest companies, based on total market capitalization. For more information, visit The Associates Web site at [http://www.theassociates.com][1].

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

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Nordstrom G-Card

Nordstrom will launch a new gift card this week. The new gift cards, available Oct. 1 will also offer a special holiday design, available Nov 10. Customers may purchase cards for a minimum of $10 up to any amount under $1,000 or add value to an existing card at any on-line register on the sales floor and at the ‘Nordstrom Rack’. Gift cards over $1,000 may be purchased in person at the customer service department in any Nordstrom store. Customers may also choose to consolidate the value of several different cards onto a single gift card.

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FlexPass

Motorola unveiled its new line of ‘FlexPass’ intelligent access solutions for contactless smart cards this morning. Four key elements that encompass Motorola’s ‘FlexPass’ intelligent access control solution, include: uniform modules; a range of cover designs; easily customized readers; and simple installation. The uniform RFID modules offers short-range (5″), medium-range (12″) and long-range (28″). Motorola’s new cover designs enables customers to choose covers to match previously installed Motorola readers or select elegant new covers to address multiple exterior and interior aesthetics. Motorola’s ‘FlexPass’ readers can be easily formatted in the field using the desired set of new ‘FlexPass Option Cards’ which represent a unique feature such as audio, visual indicator, bit lengths and output formats. All readers include standard three-meter cables, and the ‘FlexPass’ intelligent access control solution offers multiple mounting options, including slim, wall switch, mid-range and exterior parking.

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Banner Ads

The First USA/Microsoft banner ad featuring the Kasparov chess game continued to rank among the top ten banner ads last week, according to Nielsen/NetRatings. Based on market reach, the FUSA/MS chess ad ranked #4 with a 4.3% market reach for the week of Sept. 13-19. Providian’s GetSmart banner ad for second mortgages landed in the #10 spot with 3.8% market reach. The research firm says the average click rate for top banner ads last week was 0.41%.

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[1]: /graphic/getsmart/getsmartbanner.gif

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YourAccounts.com

Output Technology Solutions, the leading provider of bill and statement processing solutions, announced this morning the formation of YourAccounts.Com, a new division focused exclusively on recurring customer interactions via the Internet, including electronic bill presentment and payment and statement presentment. YourAccounts.Com today also debuted with two new product families — e.bill.anywhere — for delivering electronic bill presentment and payment solutions for the financial services, communications, cable TV and utilities industries — and Informa — for delivering e-statements and other electronic communications to mutual fund and brokerage investors.

YourAccounts.Com makes its debut as a division of Output Technology Solutions, the leading processor of bill, statement and related customer communications. The division already has fully operational electronic billing deployments underway at major customer sites including Cellular One of San Francisco, MCI WorldCom, Pepco and Time Warner. The division has the charter to pursue new alliances and customers and develop technology solutions, but will also leverage OTS’s 30 years of bill and statement processing experience and its existing customer base, automatically giving it the potential to reach more than 50 percent of US households. John Korvin, an industry veteran with more than 20 years of experience at Xerox and Computer Sciences Corporation, has been named president of the new division.

“Our mission at YourAccounts.Com is to enhance customer communications via the Internet,” said Korvin. “Our unmatched expertise in billing and statement processes, combined with our Internet experience implementing systems for major customers, enables us to offer a unique solution. As the Web becomes the de facto standard for billing, statements and interacting with customers, we believe we will play a leadership role.”

New Division Targets Growing Market

The electronic bill and statement market is growing very rapidly according to The Yankee Group, which estimates the e-bill market alone will grow from 1.6 million households using Internet billing in 1999, to an estimated 10.8 million households by 2003.

“To be a winner in this space it is critical that vendors demonstrate the ability to handle, format and route tremendous amounts of data to wherever the customer wants to see their bills and statements” said Paul Hughes, a senior analyst at The Yankee Group. “Leveraging Output Technology’s 30 plus years of bill and statement processing experience and world class data centers, YourAccounts.Com has the capability to meet the rapidly expanding requirements for electronic bill and statement presentment.”

e.bill.anywhere Product Family

YourAccounts.Com’s family of billing products, e.bill.anywhere, focuses on electronic bill presentment and payment, giving billers the ability to meet the demands of the consumer for EBPP, while leveraging the communication and marketing opportunities of the Internet. Taking a unique approach to the market, YourAccounts.Com plays the role of independent agent, not only processing data but also representing the biller’s interests with key consolidators and portals. This approach enables billers to interact with customers via the Internet anywhere, anytime … today, tomorrow and in the future using any one of several emerging billing models.

“MCI WorldCom is committed to providing several high-quality EBPP options to our customers through our Online Account Manager,” said Kathleen Rumfola, director of online marketing at MCI WorldCom. “Today’s announcement is another step toward our goal of ensuring that our customers can pay their MCI WorldCom bill electronically through whatever e-bill provider best suits their individual needs.”

The e.bill.anywhere product consists of three fully-hosted bill payment and presentment products — anywhere.direct, anywhere.consolidator and anywhere.B2B — that will eliminate complexity, offer a single point of contact for all billing models and guarantee reliability handling large-scale billing processes:

— anywhere.direct — Enables billers to present bills to consumers and accept payments from their own Web site using YourAccounts.Com’s hosting services.

— anywhere.consolidator — Provides all the features of anywhere.direct plus secure routing and transmission to multiple consolidators, currently supporting Bank of America, CheckFree and Transpoint.

— anywhere.B2B — Provides secure Web-based access to billing information for large account customers.

Major customers that are already deploying the e.bill.anywhere solution include Cellular One of San Francisco, MCI WorldCom, Potomac Electric Power Company (Pepco) and TimeWarner.

Informa Product Family

In addition to the EBPP solution, YoursAccounts.Com also today announced Informa, a suite of hosted products for the development, production and Internet delivery of account statements and other recurring investor communications. Informa combines YourAccounts.Com’s innovative Internet technologies with its proven core competencies in managing and processing customer data to produce customized communications in high volume. The results are personalized investor statements and other personalized communications that help mutual fund and brokerage companies build better relationships with their customers. The three components of the family are:

— Informa Investor — For electronic presentment of statements, trading confirmations and tax forms which are personalized to each investor and which act as a gateway to a fund or broker web site.

— Informa Broker — Provides electronic presentment of investor documents to brokers, tailored to the specific client-management needs of financial intermediaries.

— Informa Compliance — Offers a low-cost, efficient method of presenting SEC compliance materials to investors via the Internet.

Product Availability

The e.bill.anywhere product line is available today. Informa Investor is scheduled for availability in Q1 of next year, with additional Informa products available later in 2000.

About YourAccounts.Com

YourAccounts.Com(SM) is a division of Output Technology Solutions, the leading provider of paper and electronic statements and other documents to companies who value customer communication and customer service. YourAccounts.Com is focused exclusively on Internet bills, statements and related recurring customer communications. YourAccounts.Com and its parent company serve companies in a range of market segments, including communications, video services, mutual fund, brokerage, banking, insurance and other industries. YourAccounts.Com and its parent company have long-term relationships with 300 major customers, such as Cellular One of San Francisco, MCI WorldCom and Pepco. More information can be found at [http://www.youraccounts.com][1].

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

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