A Lindenhurst, IL-based firm and secured card specialist First National Bank of Brookings unveiled an innovative business card program yesterday for companies that frequently provide cash advances or reimburses employees for expenses. PocketCard, Inc. is offering the new VISA card which enables companies to have flexible control over the card’s spending limit. Under the ‘PocketCard’ VISA program, the employer funds the program by transferring money from the company’s bank account into a ‘PocketCard’ virtual account. The funds are then made immediately available to each employee with a ‘PocketCard’, but the employer sets individual limits for each card. These limits, however, can be changed at any time, in real-time, by the company’s designated managers. Whenever an employee reaches the limit of his or her allocation, the card will not be accepted for purchases until the account is replenished. The employer can also review all card transactions at any time by accessing the account at PocketCard’s web site. The employer also has the option to let any or all cardholders access funds through an ATM. There is a $20 annual fee for a business ‘PocketCard’ program. The fee includes one employer or sponsor card and one employee or spender card. Each additional employee card costs $2.50.


Diebold Sells 500 bio-ATMs

Diebold, Incorporated announced yesterday that innoVisions, which is jointly owned by the wholesale bank of Wells Fargo & Co. and Cash America International, Inc., has purchased 500 advanced-function automated teller machines with check cashing and biometrics identification technologies. In addition, Diebold will provide service on these units.

Beginning next month, the ATMs will be installed in convenience and grocery stores in the Houston, Phoenix and Dallas-Fort Worth areas. The ATMs will serve as the platform that delivers an array of financial services by innoVisions, that do not require a bank account in order to be accessed.

These services include low-cost, self-service check cashing without an ATM card or personal identification number (PIN). The machines employ facial recognition technology to create digital photographs of customers at the time of enrollment and with each subsequent transaction. This allows for secure and confidential authentication of identity and provides a swift transaction that sends customers on their way.

“innoVisions’ revolutionary cash-management systems are designed particularly for the millions of Americans who either do not have a bank account or do not rely on traditional banks for their cash needs,” said Frank A. Petro Jr., chairman and chief executive officer of innoVisions. “The Diebold platform helps us provide these ‘self-banked’ customers with access to their money when and where they need it — in convenient locations such as the local grocery or convenience store.”

Thomas W. Swidarski, senior director of worldwide marketing for Diebold, said that the company provided innoVisions with an open platform that allows all of its technology to be easily integrated. “Diebold advanced-function ATMs incorporate a document processing module and gives innoVisions the ability to connect to backend servers; essentially enhancing their current system,” he said.

San Francisco-based innoVisions designs, builds, and operates interactive systems for personal financial transactions. It was formed in May 1998 as a joint venture between Wells Fargo Bank, N.A. and Mr. Payroll Corporation, a wholly owned subsidiary of Cash America International. Mr. Payroll was merged into innoVisions in March 1999. More information about innoVisions can be found by visiting the company’s site on the World Wide Web at [http://www.innovisions.com][1].

Diebold, Incorporated is the global leader in providing integrated delivery systems and services. Founded in 1859, the company employs more than 7,000 employees in more than 135 locations worldwide with headquarters in Canton, Ohio, USA. Diebold reported revenue of US$1.2 billion in 1998 and is publicly traded on the New York Stock Exchange under the symbol ‘DBD.’ For more information, visit the company’s Web site at [www.diebold.com][2].

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


BankAtlantic On-Screen Ads

IATM (Interactive Touch Marketing) has announced it has signed a marketing agreement with BankAtlantic, whose parent is BankAtlantic Bancorp to pioneer the sale of on- screen advertisements on its on and off-premise ATM machines.

BankAtlantic, the largest bank headquartered in Florida has assets of $4.2 billion, operates 68 full-service branches and has approximately 800 installed ATMs. It has pursued the aggressive growth of its installed base of ATMs in a variety of retail locations including Wal-Marts, Kmarts, Cumberland Farms and other convenience stores, college campuses, malls and even cruise ships.

After evaluating the recent developments in ATM advertising, BankAtlantic entered into a research and development effort with IATM, a Coral Gables new media firm. “We were very impressed with both the information technology capabilities and interactive media marketing and sales expertise that IATM has demonstrated as a leading touch-screen and internet-kiosk provider here in South Florida,” said Chris Klein, BankAtlantic Senior V.P.- ATM Systems. IATM’s principals have already sold over $1 million of digital advertising to some 300 local, regional and national clients on a network of South Florida kiosks,” said Carlos Luchsinger, COO of IATM.

IATM has cooperated with BankAtlantic and one of its ATM service providers Access Cash, Inc. of Arden Hills, MN, in designing and transmitting various brands images to selected ATMs over regular phone lines. Carlos Luchsinger, COO of IATM, stated, “We have demonstrated our capability by working with Access Cash to broadcast brand images to the ATM, similar to a computer screen-saver image, while the machine is not in use. Additionally, without interfering with, or prolonging, the transaction, we can present brand images during the actual transaction in the Welcome, Please Wait, and Thank You screens.”

Isilio Arriaga, CEO of IATM stated, “We are very pleased to have the opportunity to work with BankAtlantic on the first network of 100+ NCR ATMs located in Cumberland Farms and Amoco convenience stores. We anticipate announcing the availability of other BankAtlantic ATM networks shortly to those brands and advertising agencies we are targeting for strategic alliances. We aim to take a leading role in the introduction and promotion of this exciting option in the new media arena.”

IATM is currently demonstrating the newest of new media options to brand managers and major advertising agencies in its Coral Gables headquarters. For information relative to the ATM advertising program, locations or rates, please contact Antoinette Okon or Ray Knight of IATM at 305-569-0500, e-mail at aokon@iatmarketing.com or rknight@marketing.com or visit the firm’s online media and information site at [http://www.iatmarketing.com][1].

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


Creditcard Upgrades Falcon

Credicard Brasil S.A., Latin America’s largest credit card issuer, has signed a contract with HNC Financial Solutions, a division of HNC Software Inc. , to upgrade its Falcon bank card fraud detection system and Falcon Expert subsystem.

The upgrade is part of an aggressive fraud prevention program by Credicard, in which Falcon helped the company reduce overall fraud losses by 40% in one year. Under the contract, HNC will create a custom Falcon model that will be based entirely on Credicard data and will lead to further increased fraud detection.

“Since going on-line with Falcon, we’re able to discover potential fraud cases in seconds as opposed to once a day,” says Jason Crauford, Credicard’s Vice President of Fraud Prevention. “We look forward to implementing the custom model, increasing Falcon’s ability to detect fraud, and being the first company in the country to have a purely Brazilian fraud model.”

Falcon monitors the transactions of more than 4.5 million cards in Credicard’s portfolio. In the near future, Credicard plans to migrate to a real-time processing format in order to gain even more benefit from the Falcon system.

“Credicard selected Falcon because of its proven track record and its ability to detect fraud in real time without having an adverse effect on the performance of the authorization system,” added Crauford.

Credicard Brasil is headquartered in Sao Paulo and is jointly owned by Citibank, Unibanco, and Itau. It is the largest MasterCard and Diners Club acquirer in Brazil.

Falcon is a leading credit card fraud detection system that uses patented neural network-based software to examine transaction, cardholder, and merchant data to detect bank card fraud. The system protects more than 260 million cardholders worldwide.

About HNC Financial Solutions

HNC Financial Solutions is a leader in predictive customer relationship management (CRM) software for the payment card and consumer lending industries. Its powerful suite of proven decision platforms and predictive business solutions address the mission-critical, customer-lifecycle needs of financial institutions. For more information, contact Patsy Campbell, Director of Marketing, HNC Financial Solutions, 5935 Cornerstone Court West, San Diego, CA 92121, 858/799-8206.

About HNC Software

Headquartered in San Diego, HNC Software Inc. (Nasdaq:HNCS) is a leading provider of complete Predictive CRM solutions for service industries. HNC divisions include Financial Solutions, Retek Retail Solutions, Insurance Solutions, eHNC, and Telecommunications Solutions.

HNC’s suite of Predictive Software Solutions can provide real-time insight into customer relationships based on transaction-level data, helping business-to-consumer companies manage their relationships with individual customers. By accurately predicting customer behaviors, these companies can create initiatives to mitigate risk and attrition; improve customer service; develop marketing programs to enhance profitability; optimize store replenishment activities; and detect fraudulent customer transactions.

For more information, visit HNC’s Web site at or contact Jane Leonard, HNC Software Inc., 5935 Cornerstone Court West, San Diego, CA 92121, 858/799-3880. For the investor relations hotline, call 800/396-8052.


Chase Results

Chase Manhattan formally released its second quarter results yesterday which showed improving delinquency rates and charge-off rates in its credit card portfolio. Net charge-offs, as a percentage of average receivables, dropped from 5.94% for 2Q/98 to 5.80% for 2Q/99. Delinquency (90+ days) also declined from 2.06% last year to 1.80% this year. Both figures include Chase’s domestic and international credit card activity. Other card portfolio data for Chase’s U.S. portfolio were published (prematurely) in Tuesday’s (7/20) CardFlash and are also available via CardData ([www.carddata.com][1]).

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


Sears Permier Card

Sears, Roebuck and Co. confirmed Wednesday it will introduce this month the ‘Sears Premier Card’. The new program is designed to recognize and reward customers who have made ‘Sears Card’ purchases totaling at least $600 in the previous 12 months. A newly designed blue and gold credit card will replace the current ‘Sears Card’ held by customers who meet ‘Sears Premier Card’ purchasing criteria. Sears will begin mailing welcome kits July 26. ‘Premier’ cardholders will also receive priority in-home service calls, special preview shopping days prior to key sales events and exclusive money-saving offers. Sears will review all ‘Sears Card’ accounts semi-annually to determine which customers meet the criteria for upgrades to ‘Sears Premier Card’.


PaymentNet & Allaire

PaymentNet and Allaire Corporation announced Wednesday a strategic partnership to provide payment solutions to Allaire’s ColdFusion and Spectra products. Earlier this year, the partnership produced a payment-enabling plug-in to Allaire’s flagship product, ColdFusion, providing direct access to PaymentNet’s payment processing services. Widely adopted by the ColdFusion community, the PaymentNet service provides merchants access to PaymentNet’s comprehensive multi-payment processing platform and services including credit card and electronic check payment processing.

“By integrating our e-commerce solutions, Allaire and PaymentNet offer merchants a cost effective, performant and easy to deploy solution for their e-commerce needs,” said Philippe Courtot, Chairman and CEO of PaymentNet. “Now developers of all comprehension levels can deploy industrial-strength e-commerce Web sites with an affordable, highly reliable, and scalable payment and commerce solution,” he added.

“Critical to any successful online business venture is the ability to support secure transaction and payment processing,” said Jeremy Allaire, vice president of technology strategy for Allaire. “Our partnership with PaymentNet gives our customers access to the leading e-commerce transaction processing service, which in combination with Allaire products can be used to create an online business that is fully automated and secure.”

Leveraging both Allaire and PaymentNet technologies, Virtual Software.com’s president and CEO, Paul Cormier, was impressed with how quick and efficient payment-enabling his web site actually was. “PaymentNet and Allaire provided the one-two punch to building and deploying our Web store. I have confidence in PaymentNet’s and Allaire’s products and services,” stated Paul Cormier in a recent interview. Paul’s VirtualSoftware.com storefront was deployed last year and has proven remarkably successful. Focusing on digital software delivery, Paul uses the PaymentNet platform for real-time payment authorizations and settlement and the ColdFusion product for web development and deployment.

The PaymentNet-ColdFusion module can be downloaded immediately from both the Allaire and PaymentNet web sites.

About Allaire

Allaire Corporation is the industry’s leading, independent web application platform vendor. The company’s products, ColdFusion and HomeSite, are used by more than 250,000 developers worldwide to build and deploy a broad range of interactive Web applications and public Internet sites. With a network of over 1,500 partners, including system integrators, consultants, Internet service providers, independent software vendors and complimentary technology vendors, the Allaire Alliance Program delivers integrated Web application development and business solutions to customers around the world. Headquartered in Cambridge, Massachusetts, Allaire Corporation also has offices in Europe and Asia Pacific and can be found on the World Wide Web at [http://www.allaire.com][1].

About PaymentNet

PaymentNet is the leading e-commerce payment processing platform. The service provides secure, Internet-based transaction and processing for a broad range of businesses that through a variety of e-commerce media. It offers industry-leading automation and customer care with its reliable credit card, debit card, and electronic check processing services.

The PaymentNet service is based on a scalable, secure TCP/IP architecture that automates the processing of multiple payment instruments. It leverages the Internet as a virtual private network between PaymentNet’s proprietary transaction processing server and individual clients dispersed on Internet and Intranet locations. The service is pre-integrated with many leading “shopping carts” and integrates easily with e-commerce front-ends of many types.

The service has been deployed across a wide range of businesses with excellent results. Notable customers include CBS SportsLine, EC Direct, Network Solutions, Inc., Value America, and Virtual Vineyards.

PaymentNet is headquartered in Pleasanton, California, is relocating to Redwood Shores on August 14th and can be found on the Web at [http://www.paymentnet.com][2]. Contact PaymentNet corporate offices at 925-225-1670.

[1]: http://www.allaire.com/
[2]: http://www.paymentnet.com/


Decider e-Commerce

The growth in on-line business is staggering – and so to is the growth in on-line bad debt and fraud. As a result e-Commerce demands real-time, adaptive and accurate scoring for credit, fraud and customer evaluation and existing techniques are failing to halt this growing tide. Understanding these challenges, Neural Technologies, one of the leading providers of advanced computing for business applications, is launching Decider e-Commerce. This new solution enables banks and finance providers to quickly and easily reduce fraud by providing accurate decision-support, while ensuring that e-Commerce customers stay on-line throughout the credit granting process.

“In the web business environment, customers expect fast response from companies selling on-line. If the decision as to whether or not to provide them with credit is not taken rapidly a valuable customer might leave the web-site for that of a rival,” says Nick Ryman-Tubb, President and CEO of Neural Technologies. “Decider e-Commerce is ideal for any bank or finance provider looking to offer real-time, credit decisions on-line.”

The key benefits of Decider e-Commerce for Internet banking and finance providers are:

– Decider e-Commerce ensures that on-line customers are quickly cleared for credit or immediately referred for investigation, so that the credit granting or “sales” process is not inhibited.

– It helps credit officers make fast, accurate decisions, even if some applicants data is missing.

– It provides reasons for suggested acceptance or rejection of applications.

– It provides real-time decision-support and transaction processing for on-line credit and service inquiries and applications.

– It offers multiple platform support (NT, UNIX, HP, IBM, SUN, Sequent, etc.).

– It uses robust, accurate AMAN (see below) and statistical technology.

“By discovering and using patterns and relationships from existing customer data, Decider e-Commerce does not just enable fast decision-making, but is also highly accurate and outperforms slower traditional approaches to aiding credit granting decisions,” adds Nick Ryman-Tubb.

James Satloff, managing director of global product development at Standard & Poor’s comments on their newly launched Internet corporate credit scoring service: “When developing CreditModel, the world’s first real-time Internet corporate credit scoring service, we looked for a partner that combined the business understanding of the financial credit scoring sector with technology power and systems development capabilities.”

In recognition that business processes and systems differ between companies, Decider e-Commerce can be integrated into almost any system environment. The Decider evaluation server is an integrated on-line transaction processing solution that produces credit or fraud customer scorecards based upon all data relevant and available to the Decider e-Commerce risk analysis engine.

About Neural Technologies

Neural Technologies is a private company founded in 1987. With offices in England and New York, the company has grown to become one of the few companies in the world to be successfully delivering advanced modeling solutions in real-world business environments. The company’s products are being used around the world by banking and financial institutions for credit scoring and fraud detection, by telecommunications companies for fraud detection, churn prediction and network performance management, and by marketing, mining and government sectors. The company was chosen by the UK government as principal technology and application advisors to the Department of Trade and Industry’s $9.65 million Technology Transfer Program.

About AMAN

All Neural Technologies Solutions are based on the company’s Advanced Modular Adaptive Network (AMAN) engine. AMAN copies what has taken nature 100 million years of evolution to create – the cortex in the human brain. AMAN is not a specific type of neural network – it is a self-growing meta-neural network that combines many types of specific neural architectures and advanced modeling techniques. It can cope with large amounts of data, both numeric and symbolic, and can be implemented from desktop PCs to client/server or mainframe.


Bank One/FUSA 2Q/99

Bank One released figures yesterday that show credit card loans were “essentially flat” during the second quarter. Total managed credit loans stood at $69,459,000,000 at June 30 compared to $68,364,000,000 for Mar 30. Both figures are below Bank One’s peak of $70,027,000,000 on Dec. 31. As a result, Bank One/First USA has failed to re-capture the #1 ranking in the bank credit card industry it briefly held at the end of 1998. Citibank reported on Monday that its U.S card loans stood at $70.3 billion for 2Q/99. Nevertheless Bank One opened 2.2 million accounts during the second quarter and handled $28.9 billion in charge volume. However net charge-offs notched up to 5.25% compared to 4.89% for 1Q/99 and 4.79% for 4Q/98. Delinquency (30+ days) declined to 4.30% from 4.51% at Mar. 31 and 4.47% at Dec 31. At the end of the second quarter Bank One had 59.1 million cardholders. For complete 2Q/99 financials for Bank One/First USA please visit CardData ([www.carddata.com][1]).


2Q/99 1Q/99 4Q/99 2Q/98
RECV: $69.5b $68.4b $70.0b $58.7b
Q-VOL: $28.9b $26.9b $29.2b $24.1b
CARDS: 59.1m 58.3m 56.7m 52.8m
CO: 5.25% 4.89% 4.79% 6.11%
DEL: 1.96% 2.06% 1.98% 1.97%

CO-charge-offs DEL- 90+ day delinquency rate, percentage of dollars past due

Source: CardData (www.carddata.com)

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


SCIA Workshop

Smart card industry leaders from a wide-range of companies will convene in Lake Tahoe October 3-6 to develop insight into the issues facing key marketing and management executives in the next millennium. The workshop is sponsored by the Smart Card Industry Association (SCIA) and is designed to help its members develop the skills necessary to succeed in the emerging marketplace.

“We will be bringing together top executives to gain a perspective on the significant trends influencing our industry, and to provide members with the tools and resources necessary to navigate these trends,” said SCIA Chairman Charles Cagliostro. “Our goal is to provide a strategic retreat for our members to prepare for the 21st Century.”

On the first day, the Franklin Covey Institute will present an all-day interactive workshop entitled, “Four Roles of Leadership — How Highly Effective Leaders Navigate Change, Deliver Results and Create the Future.” Franklin Covey is a 4,500 member international firm whose mission is to inspire change by igniting the power of proven principles. The firm’s co- founder Stephen Covey has authored Living the 7 Habits and The 7 Habits of Highly Effective People.

On the second day, the SCIA workshop will include presentations by Microsoft entitled “The Future of the Internet and Smart Cards,” and The Chasm Group entitled, “A Proposed U.S. Smart Card Market Development Model.” The Chasm Group provides market strategy services for high-tech companies and was founded by Geoffrey Moore who is the author of Crossing the Chasm, Inside the Tornado, and the Gorilla Game. Additional presentations by IBM and Bank of America will discuss key industry topics such as intellectual property law, capitalizing companies through venture capital and IPOs, and pervasive computing.

The workshop will provide excellent networking opportunities and activities including a dinner cruise on the Tahoe Gal, dinner at Sunsets On The Lake, golf outings, hiking, horse back riding, and boating.

The Lake Tahoe Hyatt Regency Resort and Casino will provide four-star accommodations for the SCIA member executive workshop. For more information about the SCIA workshop, contact Lynn Russo at 800-848-7242 or 609-799-5654.

The Smart Card Industry Association is a global trade association representing the needs of manufacturers, integrators, resellers, and issuers, which strives to stimulate the adoption, use, understanding and innovation of smart card technology. The SCIA website address is .


Telus to use CardTouch

Touch Technology International (TTI), a leading provider of turnkey smart card solutions announced Tuesday a licensing agreement with Telus Communications Inc., the second largest communications company in Canada. A long-time provider of smart phone cards, Telus will utilize CardTouch to expand into markets outside the smart phone card industry. In the coming months, Telus plans to deploy systems at corporate and college campuses, allowing cardholders to use their smart cards for purchases, identification and physical access to facilities.

“We are excited about helping Telus expand its smart card offering outside traditional boundaries,” said Bill Hussey, TTI’s chief executive officer. “We look forward to being an integral part of Telus’ success.”

“After an extensive industry search, we found that CardTouch is best equipped to support the wide variety of applications and devices that we require to be successful,” said Tom Forbes, director of smart cards at Telus. “In addition to supporting electronic cash and loyalty programs in the physical world, our plans include providing e-commerce and electronic-wallet applications to our customers. CardTouch offers both the flexibility and security that we need to meet these goals.”

Commenting on future plans Forbes added, “We have initiated our smart card activities by opening a smart card center in Edmonton at the University of Alberta Campus. Here we will showcase TTI’s CardTouch and the latest in multi-application smart card technology.”

About Telus Communications Inc.

Telus is Canada’s second largest telecommunications company. Its Group of Companies provides a full range of advanced communications services and products connecting Canadians with the world. The Company’s shares are traded on the Toronto and Montreal stock exchanges under the stock symbols BTS (Common) and BTS.A (Non-Voting). More information on Telus can be found at . About Touch Technology International

Founded in 1991, Touch Technology International provides turnkey smart card solutions, systems integration services and back office operations support for smart card systems. Since its inception, TTI’s sole focus has been the smart card industry. With over 65 employees, TTI has become a leader in the design, development and deployment of smart card systems. TTI offers CardTouch as a non-branded solution, which may be licensed by third parties to implement industry-specific smart card based systems. For more information on TTI and CardTouch please visit


DX Card

NY-based Physicians’ Online and Wells Fargo announced they have teamed up to offer a credit card with an airline mileage program. The co-branded POL and Wells Fargo Standard and Platinum MasterCards feature a 3.9% intro APR, no annual fee, and a special version of the ‘WellsMiles Travel Rewards Program’. Launched in Feb. 94, POL has a membership of more than one-quarter of the U.S. practicing physicians. POL provides a secure, physicians-only environment featuring access to ‘MEDLINE’ and other medical databases.