Next Gen Fraud Models

TSYS announced the next generation of fraud models using Fair, Isaac and Company predictive technology. The new fraud models blend multiple modeling technologies, such as Fair, Isaac’s ‘INFORMPLUS’ and neural networks, to optimize precision in detecting different types of fraud, including counterfeit, mail theft fraud, lost/stolen, and account takeover. Boosting and data mining techniques were also applied to develop models that detect the first instance of suspicious account activity. TSYS says the new system will also reduced false positive incidences. The new suite of models will be incorporated in TSYS fraud prediction solutions, such as TSYS ‘CardGuard’. The company says the new fraud solutions are now available and active at more than fifty client sites.


DataCard MS Cards

DataCard Corporation debuted a portable patient information solution Monday at the annual Healthcare Information and Management Systems Society (HIMSS) Conference in Atlanta that utilizes Microsoft’s new smart card operating system.

The DataCard(R) SmartRec(TM) portable patient information solution–which has been successfully piloted over the past 12 months–is the first healthcare product to feature the new Microsoft(R) Smart Card for Windows(R) operating system.

Moving toward an industry-wide smart card standard

Healthcare experts have long regarded smart cards as an extremely promising technology for improving patient care and reducing operating costs. But the lack of industry-wide standards has precluded widespread adoption of the technology.

“Microsoft’s new operating system clearly will accelerate the introduction of smart card-based solutions into the healthcare market by allowing developers to use familiar tools,” said Ravi Sharma, president of DataCard’s healthcare company. “DataCard is proud to be the first healthcare company to develop a smart card-based solution around this evolving standard.”

Mike Dusche, Microsoft’s product manager, Smart Card for Windows, said the DataCard SmartRec solution provides an excellent demonstration of how our new smart card operating system will be deployed in the healthcare industry.

“The concept of portable patient information is very powerful, especially in terms of enhancing the quality of care and improving operational efficiency. It’s a great application for Smart Card for Windows,” Dusche said. “We expect innovative solutions like these will generate widespread interest for both developers and end-users.”

Providing vital information at the point-of-care

SmartRec allows patients to carry important clinical information with them wherever they go. Vital information is loaded onto a personalized smart card during an initial enrollment process and updated after each encounter. Clinicians can access this patient-specific information quickly and easily at the point-of-care.

“From a patient’s perspective, SmartRec can greatly improve both convenience and the quality of care,” Sharma said. “Healthcare encounters are faster and simpler, because information that once had to be tracked down can be accessed instantly.”

“The patient also has the comfort of knowing that clinicians are dealing with accurate, up-to-date information,” Sharma said. “Access to this information is essential for providing quality care.”

From the clinicians’ point of view, SmartRec provides the patient-specific information they need to deliver the best possible care, Sharma said.

“In a matter seconds, clinicians can access important patient-specific information. Is the patient allergic to certain medications? Which tests have been performed? How has the patient responded to their prescribed therapy program?” Sharma said.

“Smart card technology makes this patient-specific information easily accessible and highly portable,” Sharma said. “So, it can be used to improve outcomes across the continuum of care.”

In addition to its clinical value, Sharma said SmartRec also provides healthcare enterprises with an opportunity to engender strong patient loyalty.

“In our pilot programs, we discovered patients feel they are receiving highly personalized service and better care from providers who employ SmartRec,” Sharma said. So, we believe SmartRec is proving to be a tremendously powerful tool for building patient loyalty.”

While SmartRec can be used to improve care for any patient population, Sharma said he expects initial applications will include specific clinical segments such as maternity, well-child and chronic illness.

The company also exhibited the new DataCard(R) SmartPass(TM) secure medical records solution at HIMSS ’99. SmartPass allows healthcare enterprises to control access to medical records with biometrics and smart cards, rather than passwords.

“Passwords are too easily compromised,” said Sharma. “SmartPass uses two powerful technologies–biometrics and smart cards–to enhance the security of medical records and other proprietary data.”

DataCard Corporation, a privately held company based in Minneapolis, Minn., provides customers around the world with fully integrated solutions for a variety of financial, identification and healthcare applications. In addition to turnkey solutions, the company offers complete lines of card personalization systems, digital photo ID systems, photo ID printers and transaction systems. ([][1])



BART Cards

Cubic Transportation Systems has been awarded a $30.8 million contract by San Francisco’s BART system to build and install an automatic fare collection system. The total value of the contract could reach $45.5 million. The contract includes upgrading the existing automated revenue collection operations and adding new equipment for the San Francisco Airport extension, an effort that will pave the way for a future smart card-based ticketing system. While the modular equipment is designed to support the magnetic-stripe fare media now in use by BART, contactless smart card readers also will be built.


Freedom ATM Alliance Grows

The Freedom ATM Alliance announced Monday that three new members will become operational in April. This brings the membership up to thirty banks. The new members are Farmers National Bank, and Merchants National Bank, both headquartered in Kittanning, and Second National Bank, located in Fayette County.

A customer of one of the thirty member banks can use the ATMs owned by the other twenty-nine without a surcharge, the extra fee imposed on transactions by ATM owners.

With the new members, the Alliance now consists of 222 ATMs (126 of them in Allegheny County) at 210 sites in 9 counties. (See chart below for details.)


Bank Name Start-up # of ATM’s # of ATM sites
Allegheny Valley Bank 01/99 6 6
Bell Federal Savings & Loan 01/99 5 5
Brentwood Savings Bank 01/99 2 2
Carnegie Savings Bank 01/99 2 2
Charleroi Fed. Savings Bank 01/99 6 6
Citizens National Bank 01/99 19 19
Community Bank 01/99 9 9
Compass Fed. Savings Bank 01/99 1 1
Dollar Bank 01/99 58 46
Farmers Nat. Bank of Kittanning 01/99 1 1
Fidelity Bank 01/99 8 8
First Fed. S&L of Greene Co. 01/99 5 5
First Federal Savings Bank 04/99 3 3
First Nat. Bk. of Slippery Rock 01/99 8 8
Great American Federal 01/99 9 9
Keystone State Savings Bank 04/99 1 1
Laurel Savings Bank 01/99 5 5
Mars National Bank 01/99 5 5
Merchants Bank 04/99 6 6
Mt. Troy Savings Sank 01/99 1 1
Pittsburgh Home Savings 01/99 4 4
Prestige Bank 0l/99 5 5
Reeves Bank 01/99 6 6
Spring Hill Savings Bank 01/99 3 3
Stanton Fed. Savings Bank 01/99 1 1
The Second National Bank 04/99 5 5
Three Rivers Bank & Trust 01/99 22 22
Washington Fed. Savings Bk. 01/99 10 10
West View Savings Bank 01/99 4 4
Workingmen’s Savings Bank 01/99 1 1
30 221 209


Managing Risk

A highly regarded consumer credit management training program, scheduled for April, is open to executives from all financial institutions. The program, ‘Consumer Credit: Managing Risk and Reward’, is headed by former Citibank and Ford Motor executive David Lawrence. Mr. Lawrence is also the author of ‘The Handbook of Consumer Lending’. The seminar is usually offered internally at major banks such as Bank of America, Chase, CitiGroup and U.S. Bancorp. The program uses case studies, exercises, and a PC-based profit-modeling game to ensure active involvement. The seminar will be held in New York City, April 6-8. For additional information/reservations call (212) 866-2395. or e-mail [][1]



I-Bank Opens

First Internet Bank of Indiana, a real-time Internet-only financial institution will officially open today following ceremonies at The Museum of American Financial History. will be the first ‘Extended Value Online Bank’ to offer a full suite of banking services in a real-time environment via the Internet. will offer a full product line of checking, money market savings, certificates of deposit, loans, credit cards and ATM cash cards. Customers can make deposits through MAC ATMs, payroll direct deposit, mail, wire transfer, etc. Withdraws can be made from any PLUS or MAC ATM.


Cutting Down

Morgan Stanley Dean Witter indicated last week it is cutting the size of its Board of Directors from fifteen to thirteen. Two internal directors are leaving, including Thomas Schneider, who served as EVP and CFO of Dean Witter Discover until 1997. The Wall Street Journal reports this morning that Philip Purcell, Morgan Stanley Dean Witter’s CEO received total compensation last fiscal year of $31 million, a 5% increase over 1997.


Heat on ATM Fees

Another bill to ban ATM fees was introduced last week by the Wisconsin legislature. Wisconsin State Rep. John Lehman introduced the ‘ATM Consumer Protection Bill 113’, which is expected to be referred to a Wisconsin Assembly committee this week. According to the Milwaukee Journal Sentinel, Wisconsin is also debating taxes on ATMs. Wisconsin’s governor has proposed exempting ATMs from the state’s personal property taxes. Meanwhile Illinois State Rep. John Fritchey introduced a bill last week to ban ATMs fees on ATMs owned by banks but not those owned by non-bank firms. The San Francisco Board of Supervisors rejected a proposed local ordinance to forbid ATM surcharging last week. However the Oklahoma state Senate Finance Committee narrowly passed S.B. 317 two weeks ago to put a $1 cap on ATM surcharges.


Mobile Cash

Barclaycard and the U.K.’s Cellnet announced they will roll-out a pilot in April of mobile e-cash machines last week. The machines will allow consumers to download e-cash over Cellnet’s GSM network onto their Barclaycard by inserting it into a specially designed Motorola mobile phone. About 1,000 participants will also be able to use the card as part of the ongoing ‘VISA Cash’ UK trial in Leeds. To use the new mobile electronic cash machine, a Barclaycard with the added ‘VISA Cash’ function is inserted into a Motorola StarTAC mobile phone. The phone then asks the user to enter the withdrawal required, up to a limit of 50 stg, and a bank PIN. The e-cash is then deposited onto the Barclaycard via the Cellnet GSM network, and debited from the user’s account.


Race Track ATMs

Lone Star Park at Grand Prairie has become the first race track in Texas to install ATM machines. Located just inside the Post Time Pavilion across from the security office, the two machines became operational as of February 19, 1999.

In order to comply with the Texas Racing Act of 1997, Choice Enterprises Inc. and Sieman’s ATM Services joined together to develop specialized software that ensures all ATM withdrawals are no greater than $200 per day per person and are withdrawn only from the customer’s checking account. The ATM’s operate like every other debit machine across the nation.

Lone Star Park plans to install four additional ATM machines by April 15, 1999, Opening Day at the track. The machines will be located in the Grandstand.

Live thoroughbred racing at Lone Star Park resumes on April 15, 1999. The 72-day Thoroughbred meeting will continue through July 25, 1999.


AmEx Gets the Boot

A retailer revolt against American Express, similar to the “Boston Fee Party” of the late 80s, is underway in Britain. According to London’s Daily Mail, Boots has taken American Express off its list of approved cards. Other U.K. retailers are expected to follow Boots’ action. The 1,300-store Boots chain says American Express is charging merchant fees of 4% versus the approximate 1.5% fee charged to most U.K. retailers for accepting VISA and MasterCard. AmEx says the basis for the premium is the fact that its cardholders charge 20% more than holders of other cards. In the Boston revolt, a group of restaurants banded together to drop American Express over higher merchant fees. AmEx responded by lowering its fee structure for smaller merchants.


Billing Concepts Installations

Billing Concepts Corp. , a leading billing solutions provider to the communications industry, announced Friday the completion of three installations of its Internet product, TotalBill. Internet Service Providers (ISPs) Now Online, Minnesota Online and CityNet (a division of City National Bank) have licensed Billing Concepts’ TotalBill, a customer management and billing software solution.

TotalBill is Billing Concepts’ premier link between services, customers and revenues for Internet and next generation communications services. The combination of TotalBill’s real-time technology and scalability allows Internet service and communications companies to generate more revenue and be more competitive by enabling them to bring new services to market quicker. Oriented around the automation of normal activities, TotalBill offers Order Processing, Customer Service, Trouble Tickets, Automated Credit Card Processing, Automated Provisioning and Automated Billing Modules. The flexible product definition process combined with the billing engine allows TotalBill to handle Usage-based services such as Voice Over IP, Premium 800-Number Access, Packet Billing and all types of time-based charges. Installation, Training and Implementation are a part of the high level of service provided by Billing Concepts for each customer.

Parris H. Holmes, Jr., Chairman and CEO of Billing Concepts, stated, “TotalBill’s design makes the rapid deployment of new services, marketing strategies and new technologies a simple process for service providers. The demand for our TotalBill product continues to grow, with 24 additional customers in various stages of installation. It is clearly our mission to provide leading Internet services companies with a customer management and billing infrastructure that enables them to be more competitive by delivering highly differentiated services.”

Billing Concepts is one of the most experienced providers of comprehensive billing and customer care solutions to the communications industry. The Company licenses fast-to-implement and cost-effective convergent billing software to virtually any size company in the industry. Billing Concepts is also the largest third-party provider of billing clearinghouse and information services to the telecommunications industry. Billing Concepts supports multiple services such as Internet, PCS, cellular, paging, cable/satellite TV, local service, long distance and Carrier Access Billing. With over 600 customers throughout North America, the Company offers billing solutions for service providers including LEC, CLEC, ILEC and ISP companies, from the newest entrants to some of the largest facilities-based providers in the industry. Headquartered in San Antonio, Texas, Billing Concepts maintains offices in Corpus Christi, Texas, Glendale, California and Albany, New York. For more information, visit

For more information on the three companies listed above, you can visit their web sites at the following address:

Now Online
Minnesota Online

Certain statements contained herein are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Companies with the Securities and Exchange Commission.