Instant Destiny

Destiny Software Corporation announced yesterday that it has provided Fleet Credit Card Services with instant credit decisioning capability for the Internet. This new functionality allows Fleet to evaluate Web-based credit card applications in seconds. Fleet says instant decisioning is critical to its drive to be a dominant issuer on the Internet. In late April, Destiny Software delivered a strategic Internet system for creating, managing and processing Web-based credit card applications to Fleet.


Aspire Online

Online loan marketer LendingTree, Inc signed an agreement with CompuCredit Corp. yesterday to market the ‘Aspire VISA’ sub-prime credit card through the Lending Tree network of lenders. Consumers applying through Lending Tree fill-out a ‘Qualification Form’ which is immediately sent to up to four lenders. whose credit criteria match the consumers’ information, in the Lending Tree network. So far this year LendingTree’s volume of credit card requests has increased more than 300% to 10,000 per month. CompuCredit, through its traditional application process, is adding between 20,000 and 25,000 new ‘Aspire VISA’ cardholders each week. CompuCredit went public in April.


eN-Counter 4000 Certified

IVI Checkmate Corp. yesterday announced at the second annual Vital Client Symposium in Tempe, Arizona that Vital Processing Services® has Class-A certified the IVI Checkmate eN-Counter 4000 POS terminal, formerly known as the DataCard Jigsaw®, with an integrated 12 line per second printer.

The IVI Checkmate eN-Counter 4000 POS solution has also been certified to operate with the Vital-developed POS-partner® PC package, a software application that uploads batches for merchant transaction batch consolidation and reporting in a PC/terminal hub environment.

The Vital Class A certification means that users of the IVI Checkmate eN-Counter 4000 POS terminal and integrated high-speed printer can enjoy 24-hour, seven-day-a-week help desk support for all related software and hardware.

“The Class A certification awarded by Vital demonstrates their confidence in the eN-Counter 4000,” stated John Mamalakis, Vice President and General Manager of IVI Checkmate’s Financial Systems division. “Vital recognizes the tremendous value the IVI Checkmate eN-Counter 4000 brings to its POS product line offerings.”

POS-partner easily accommodates the unique industry requirements of retailers, restauranteurs, hotels, direct marketers and billers. This high demand, Windows®-based PC system can link multiple terminals together within a merchant’s business, consolidating authorization transactions for reporting, balancing and settlement. eN-Counter 4000 terminals can now easily interface to POS-partner.

“The eN-Counter 4000 offers a true turnkey solution for merchants operating on the POS-partner platform, requiring no additional development effort to get them online,” Mamalakis adds. “It’s an ideal solution for merchants looking to add a powerful, affordable POS solution to complement Vital’s POS-partner PC application software.”

The IVI Checkmate eN-Counter 4000 is a modular POS solution that can be configured with an external Personal Identification Number (PIN) pad or with the PIN pad integrated into the eN-Counter 4000 stand-alone transaction terminal. The eN-Counter 4000’s cartridge-style integrated thermal printer plugs into the top of the eN-Counter 4000 and prints up to 12 lines per second. The eN-Counter 4000 terminal offers an intuitive and feature rich retail/restaurant application suite which includes combined credit and debit support, a wide range of tip options, the ability to add and personalize operator prompts, mail order/telephone order with address verification (AVS), and multiple levels of password protection. The application also provides an outstanding training mode, which dramatically reduces training time.

“We’re pleased to fully support eN-Counter 4000 and its high-speed integrated printer, because these products widen the selection of terminals and printers available to clients using our software,” said Donna Embry, senior vice president of product development at Vital. “The IVI Checkmate eN-Counter 4000 POS terminal solution meets our long-standing objective of making the best, most cost-effective POS products fully compatible with our systems and software.”

IVI Checkmate recently acquired DataCard’s Financial Systems subsidiary, which developed and marketed the Jigsaw (now known as the eN-Counter 4000) POS solution. The former DataCard subsidiary has been renamed the IVI Checkmate Financial Systems division.

Vital Processing Services® (Vital’) is a leading full-service merchant processing company. Its clients include financial institutions and their agents that provide payment card processing to merchants. Headquartered in Tempe, Ariz., Vital offers financial institutions and their agents portfolio management services and merchant POS products without competing with their merchant business. Its services include merchant POS products, electronic authorization and data capture; Internet commerce; 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® U.S.A. and Total System Services, Inc.® (TSYS®) (NYSE: ‘TSS’) ([][1]). Vital’s Internet address is [][2].

IVI Checkmate is the third largest electronic transaction solutions provider in North America. The Company designs, develops, and markets innovative payment and value-added solutions that optimize transaction management at the point-of-service in the retail, financial, travel & entertainment, healthcare, and transportation industries. IVI Checkmate’s software, hardware, and professional services minimize transaction costs, reduce operational complexity, and improve profitability for its customers in the U.S., Canada and Latin America. For more information on IVI Checkmate, visit its web site at .



Southern DataComm Expands

Southern DataComm, Incorporated (SDC), an electronic payments solutions provider, announced Wednesday a strategic company expansion into the Japan, Pacific, Australia, and Asia (JPAA) region.

Southern DataComm’s JPAA expansion involves three global leaders in their respective industries: American Express, the dominant travel and entertainment charge card issuer; MICROS-Fidelio, the world’s leading vendor of property and restaurant management systems; and Westpac Bank, one of the largest banking institutions and card issuers in the JPAA region.

The expansion began last year as a pilot program at the prestigious Chateau Sydney, a four-star property in Sydney, Australia. Southern DataComm’s payment processing software, ProtoBase(r) with SofTrans(r) and the ProtoBase Administrator (PbAdmin(tm)), is integrated into a MICROS-Fidelio property management system. SDC developed special credit/charge card interfaces to American Express, Westpac Bank, JCB, and Diners Club specifically for the JPAA region.

Justin Higgs, Product Manager at SDC, commented, “We are very excited about the opportunities in the JPAA market. The success of the Chateau Sydney can especially be attributed to the involved parties working together on this project. We look forward to continued success in this region well into the 21st century.”

The ProtoBase product line offers consolidation and networking of all credit and charge card transactions. The software alleviates the need of settling multiple locations individually, as all transactions are located on a single server. This consolidation saves processing time and money over non-integrated, stand-beside terminal applications. The ProtoBase software provides detailed reporting for a complete audit trail and eases the chargeback research burden.

Southern DataComm Incorporated is a software development firm, founded in 1985, specializing in electronic payment software solutions. Southern DataComm products provide a generic interface to enable simple integration into point-of-sale systems. The software supports transaction processing for credit/debit/check with virtually any third-party processor or acquirer. The applications support a variety of vertical markets including Lodging, Restaurant, Auto Rental, Retail, Gaming, Grocery, Mail and Phone Order, Subscriber Management, Cable TV, Public Utilities, Internet, Medical, and Government. Southern DataComm is headquartered in Clearwater, Florida.


Credit Store Increase

The Credit Store, Inc. (EBB: PLCR) — whose principal business is to acquire portfolios of non-performing consumer debt at substantial discounts, and then through its direct marketing expertise, transfer a significant portion of the debt onto newly issued credit cards — released today its results for the third quarter and first nine months of its fiscal year 1999 (unaudited).

Third Quarter FY1999 Results

FY 1999, 3Q FY 1998, 3Q
ended 2/28/99 ended 2/28/98

Total Revenues $ 12.34 million $ 4.00 million
Total Expenses $ 10.28 million $ 11.05 million

Net Income (Loss) $ 2.06 million $(7.05) million
Preferred Dividends $ 500 thousand $ 99 thousand

Net Income (Loss)
Applicable To Common
Stock $ 1.56 million $ (7.15) million

Earnings per Share $0.04 $(0.22)

Weighed Average Shares
Outstanding 34,761,965 33,109,781

For the three months ending Feb. 28, 1999, the third quarter of fiscal 1999, total revenue was $12.34 million versus $4.00 million in the prior third quarter, an increase of 208%. Total expenses in the third quarter (including operating expenses, interest expenses and provision for losses) were $10.28 million, versus $11.05 million in the prior third quarter, a decrease of approximately 7%. Net income applicable to the common stock was $1.56 million or $0.04 per common share, versus a loss of $7.15 million or a loss of $0.22 per share in the prior third quarter. The weighed average of common shares outstanding was 34.76 million, versus 33.11 million in the prior third quarter.

Martin J. Burke, III, chairman and chief executive officer of The Credit Store commented, “The Credit Store continues to make substantial progress in fulfillment of its basic business plan. We have defined a new niche in the consumer credit marketplace and made it profitable. While it is important to note the inherent risks in our business, it is equally important to note that The Credit Store now has been profitable on an operating basis for three consecutive quarters and on a per share basis for two.”

Third Quarter Revenues

The 208% increase in year-over-year total revenue was due primarily to increased customer credit card payments and to the proceeds received from a December 1998 securitization, which had been reported previously.

Revenue in excess of costs recovered (ECR) increased nearly fourfold from the year-ago quarter, to $10.097 million from $2.584 million in the year ago quarter. The Credit Store realizes these gains on a portfolio basis after the full purchase price of an acquired portfolio has been recovered. Interest revenue from performing assets increased approximately 57%, to $599 thousand from $340 thousand in the year-ago quarter. Fee revenue from performing accounts rose approximately 41%, to $922 thousand from $654 thousand in the year-ago quarter. Servicing revenue remained virtually unchanged in the quarter at $374 thousand, versus $376 thousand in the year ago quarter. The Credit Store generally continues to service receivables that the Company has sold or securitized. Income from unconsolidated affiliates increased from $22 thousand to $298 thousand during the period, primarily due to the seasoning of portfolios owned by a joint venture operation.

The Company utilizes the cost recovery method of accounting, which is the more conservative option prescribed in FASB Practice Bulletin 6 for recognizing the purchase cost of distressed assets. The accounting method requires that cash flows related to a portfolio purchased at a discount must first be applied to reduce the purchase price of the portfolios on the balance sheet prior to recognizing revenue from that portfolio. As a result, in quarters when the Company makes substantial portfolio purchases, costs related to the marketing and servicing of these portfolios may exceed the revenues. Once the cost of a portfolio has been recovered, portions of the ensuing cash flow may be recorded as the ‘Excess of revenue over Cost Recovered’ (ECR). The use of the cost recovery method of accounting holds the potential that operating income of the Company will fluctuate significantly from quarter to quarter.

Third Quarter Expenses

Total expenses fell 7% in the third quarter 1999 in part due to a substantially smaller provision for loan losses and also in part due to lower interest expense.

The smaller loan loss provision for the quarter, $923 thousand versus $2.355 million in the year-ago quarter, was made possible by a lower average amount of owned receivables during the period and by the accumulation and analysis of seasoned portfolios which allows the Company to reserve for defaults on a more accurate basis. The two asset securitizations completed by The Credit Store in September and December 1998 and a portfolio sale in June 1998, all previously reported, removed a total of $21 million in seasoned credit card receivables from the Company’s wholly-owned portfolio.

Two conversions of subordinated debt into preferred stock of the Company, previously reported, allowed interest expense to drop to $892 thousand from $1.357 million in the year-ago quarter. The drop in interest expense was offset substantially by a rise in dividends accrued on the preferred stock.

Other Third Quarter Data

Inception through the end of the third quarter, The Credit Store had purchased a cumulative $2.630 billion gross principal of non-performing consumer debt through various transactions. This cumulative total includes $43.1 million gross principal of non-performing debt purchased during the third quarter. After the third quarter’s end, and as announced previously, the Company sold $238 million gross principal of non-performing consumer debt that had accumulated as residuals from routine operations over the last two years.

The Company owned $60.6 million in performing credit card receivables at Feb. 28, 1999 versus $71.3 million at Feb. 28, 1998. The decline was due to the sale and securitization of receivables that took place during the first three fiscal quarters. At Feb. 28, 1999, the Company also serviced an additional $16.5 million in receivables held in joint ventures and/or securitizations, versus $3.6 million at Feb. 28, 1998.

Nine Months FY 1999 Results FY 1999, 9 mnths. FY 1998, 9 mnths.
ended 2/28/99 ended 2/28/98

Total Revenues $ 33.62 million $ 7.82 million
Total Expenses $ 29.81 million $ 31.43 million

Net Income (Loss) $ 3.8 million $ (23.6) million
Preferred Dividends $1.30 million $ 300 thousand

Net Income (Loss) Applicable
To Common Stock $ 2.51 million $ (23.92) million

Earnings per Share $0.07 $(0.72)

Weighed Average Shares
Outstanding 34,761,965 33,109,781

For the nine months ending Feb. 28, 1999, total revenue was $33.62 million versus $7.82 million for the year ago period. Total expenses (including operating expenses, interest expenses and provision for losses) were $29.81 million, versus $31.43 million in the year-ago nine months. Net income applicable to the common stock was $ 2.51 million or $0.07 per common share, versus a loss of $23.92 million or a loss of $0.72 per share for the year-ago nine months. The weighed average of common shares outstanding was 34.76 million, versus 33.11 million in the prior third quarter.

The unaudited financial statements for the quarter and nine months ended Feb. 28, 1999 are available from the Company upon request.

The Credit Store is a nationwide financial services company engaged in the acquisition and recovery of non-performing consumer receivables and the origination and servicing of credit cards. The Company acquires portfolios of non-performing consumer receivables and originates new credit cards to those consumers who agree to pay all or a portion of the outstanding amount due on their debt. The new card is issued with an initial balance and credit line equal to the agreed repayment amount. After appropriate seasoning, The Credit Store attempts to sell or securitize the credit card receivables generated by its business strategy.


Register OnSoftware

Cydoor Technologies Inc., the leader in technology which provides software programs with the ability to run and display Internet Ads and execute other Web-related utilities, announced Wednesday that it has signed a partnership contract with CyberCash Inc. a world leader in e-commerce technologies and services. The contract will allow Cydoor to provide Internet payment solutions through Cydoor’s Register OnSoftware service.

As an Internet industry first, the Cydoor Technologies and CyberCash Inc., combined capability will allow software companies to charge users a fee, via a window within the program, instead of the user having to browse the Web. Software companies can use the service to sell a registration license, obtain payment for an upgraded version or charge a transfer of data to their users.

“Cydoor is very pleased to be cooperating with CyberCash,” said Shaul Eyal, VP Business Development of Cydoor Technologies. “The flexible and powerful payment solutions that are provided by CyberCash enable us to provide software companies with the best payment methods possible.”

Shimon Gruper, an Executive VP at Aladdin Knowledge Systems, Ltd. said, “We feel that Cydoor’s new service will allow an easy way for customers to pay for our products and increase the actual number of purchases.”

“Cydoor’s Ads OnSoftware(TM) product was recently launched and has already drawn the interest of several software companies,” said Mr. Eyal, “Large advertisers such as, and are currently running Cydoor’s innovative technology for targeting ads directly to their potential customers,” added Mr. Eyal. Cydoor is a participant in the Associates Program. Cydoor is also an affiliate member of C2, CDNOW’s Corporate Community program. Cydoor introduced its Ads OnSoftware(TM) service in October, 1998.

About CyberCash

CyberCash is a world leader in e-commerce services and technologies, enabling e-commerce across the entire market spectrum from electronic retailing environments to the Internet. CyberCash provides a complete line of software products and services allowing merchants, billers, financial institutions and consumers to conduct secure transactions using the broadest array of popular payment forms. Credit, debit, purchase cards, cash, checks, smart cards and alternative payment types (e.g., “frequent buyer” or loyalty programs) are all supported by CyberCash payment solutions. Leading brands of CyberCash include ICVERIFY(R), PCVERIFY(TM), CashRegister, NetVERIFY(TM), PayNow(TM), and InstaBuy(TM). [http//][1]

About Cydoor Technologies Inc.

Cydoor Technologies Inc., is the provider of OnSoftware(TM), a unique suite of services that brings the power of the Web to the user interface of software programs. Cydoor provides software programs with the ability to run Internet-based utilities such as powerful advertising media and e-commerce utilities. Cydoor’s technology also allows for easy, fast and safe payment solutions over the Internet and operates a distribution network that can significantly enlarge the user base of software companies. With offices in San Francisco and New York, Cydoor provides sales and services through expanding regional offices and a growing network of international subsidiaries, distributors, and strategic partners.



EarthWeb MBNA Card

EarthWeb and MBNA announced yesterday that they have signed a multi-year affinity credit card marketing deal estimated to be worth seven figures in revenue to EarthWeb over the term of the agreement. MBNA and EarthWeb will work together to market financial service products to IT professionals. The co-branded credit cards will be issued through MBNA’s affinity credit card program, which awards cardholders discounts and other special promotions including 20% discount on EarthWeb’s ‘ITKnowledge’ service. EarthWeb will donate a percentage of each retail transaction to the ‘Trickle Up Program’, an international non-profit organization which provides low-income people with the opportunity to develop their own microenterprises.


eN-Touch 1000 Resumed

IVI Checkmate Corp. Tuesday announced at the Retail Systems ’99 Conference in Chicago, it will resume production of its eN-Touch 1000′ customer-interactive touch screen and signature capture terminal beginning July 1, 1999.

Earlier this year, during pilot testing at a national U.S. retailer, the eN-Touch 1000 terminal began showing signs of inconsistent wear on the Mylar coating that protects the electronics on the glass screen. Although the terminals remained fully operational, IVI Checkmate delayed production and worked jointly with its customers and suppliers to investigate alternative technologies.

In early March, IVI Checkmate released a limited number of terminals with the new technology for in-store testing. The company commented that the terminals performed extremely well for the retailers involved in the test program.

‘The actions we have taken to improve the eN-Touch 1000 have resulted in a stronger product in both feature and function. By placing the electronics under the glass we have eliminated screen wear, which increases the life of the unit and decreases its cost of ownership. Most importantly, the independent testing of our customers determined that the alternative technology fits their needs and allows them to move forward,’ stated Greg Lewis, President and CEO of IVI Checkmate’s US operations.

IVI Checkmate is the third largest electronic transaction solutions provider in North America. The Company designs, develops, and markets innovative payment and value-added solutions that optimize transaction management at the point-of-service in the retail, financial, travel & entertainment, healthcare, and transportation industries. IVI Checkmate’s software, hardware, and professional services minimize transaction costs, reduce operational complexity, and improve profitability for its customers in the U.S., Canada and Latin America. For more information on IVI Checkmate, visit its web site at


April Spurt

Revolving credit grew at an annual rate of 6.8% during April compared to 5.4% last April according to preliminary figures released this week by the Federal Reserve. However overall consumer credit slipped from 4.3% for April 1998 to 3.4% for April 1999. Revolving credit, mostly credit card debt, increased more than $3 billion during April. Since the first of this year revolving credit has grown about $10 billion, according to the FRB. At the end of April, American consumers were $1.335 trillion in debt, exclusive of home mortgages.

Apr99 Mar99 Feb99 Jan99 Dec98 Nov98 Oct98 Sep98 Aug98 Jul98
%GRWTH: 6.8% -1.0 3.4 11.6 8.6 -2.4 13.0 7.5 10.7 -4.2
$OWED: $ 570.3 567.1 567.5 565.9 560.5 556.5 557.6 551.7 548.3 543.4

Source: Federal Reserve; revised figures as of
06/07/99; For complete historical data visit



Associates First Capital Corporation announced this week it has reached an agreement to sell the Network Transaction Services unit of its SPS Payment Systems subsidiary to Alliance Data Systems. Terms of the transaction were not disclosed. As part of the agreement, SPS and Alliance Data Systems will enter into a joint marketing agreement by which Alliance Data Systems will provide electronic transaction processing support for a number of new and existing SPS clients. The Network Transaction Services unit employs approximately 200 people and offers data capture, authorization, reporting and data communication services for a wide variety of payment options, including credit, debit, fleet, and private label payment cards. Last year it processed more than 510 million transactions from over 80,000 point-of-sale terminals in the petroleum, convenience store, general retail, and public transit marketplaces.



In a deal linking two suppliers to the retail banking industry, IBM is to sell its non-cash financial self-service business to NCR.

With effect from today, NCR will acquire production and sales of two IBM solutions — the 4725 multifunction statement and information printer terminal and the 5994 kiosk terminal, which offers transaction and information capabilities to consumers.

“This deal will help NCR to expand our non-cash business to supplement our world-leading position of cash-dispensing ATMs,” said Danny O’Brien, NCR’s Vice President for self service solutions worldwide. “We see a very healthy future for non-cash solutions as banks seek to build closer relationships with consumers.”

“NCR has the necessary experience and service organization to provide our customers continued support for their non-cash self service devices,” said Ronald P. Lewis, General Manager, Retail Banking Industry, IBM Worldwide.

IBM has been a leading provider of these two solutions for many years, especially in Germany, Austria and France and will continue to provide solutions and services to banking self-service customers after the deal.

The two companies will co-operate closely in Central Europe, with IBM continuing to service the installed base for both lines. Both companies will offer services for new installations, which will be offered through NCR’s direct and indirect channels.

About IBM Corporation

IBM Corp. is the leader in creating, developing and manufacturing the world’s most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics. The IBM Finance Sector provides a complete range of products, end-to-end solutions, service and strategic advice customized for banks or financial institutions. As the industry’s leading provider of solutions to help customers become e-businesses, it can integrate or implement particular components selected by the client allowing solutions uniquely suited to a bank’s requirements. The worldwide operating Finance Sector offers an exceptional breadth and depth of skills and knowledge. For further information please visit the IBM Financial Sector Web site at .

More information about IBM Corp. and its products can be found on the World Wide Web at .

About NCR Corporation

NCR Corporation is in the business of transforming transactions into relationships. NCR is a recognized world leader in data warehousing solutions, ATMs, point-of-sale, high performance scanners, and support services for retail, financial, and national accounts markets. NCR’s business solutions are built on the foundation of the company’s 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 on the World Wide Web at .


Diebold Advisor

Diebold has officially launched ‘Diebold Advisor’, a new status monitoring service for ATMs. ATM deployers can use this service to receive 24-hour feedback on the operating status of every ATM in their network. The service helps increase the amount of time ATMs are available for use while reducing the cost of network monitoring and maintenance. Several financial institutions began using the Diebold Advisor service in pilot programs including San Francisco-based Patelco Credit Union which used ‘Diebold Advisor’ to monitor the status of all 51 of its ATMs.