Hypercom Enters Germany

Hypercom, a global provider of electronic payment solutions, announced Tuesday that it is expanding its European presence and is entering the German payments market.

Hypercom has selected INTERNET A.G., a respected German payments technology solution provider as a distributor to introduce Hypercom’s end-to-end payment solutions to banks, third-party processors and merchants in Germany. Hypercom’s entry into the German payment market extends the number of European countries Hypercom now operates in to 12, and more than 60 countries worldwide.

Rob Meli, Managing Director of Hypercom Europe commented: “We are pleased to announce the availability of Hypercom’s point-of-sale electronic payment solutions to Germany’s business community and delighted that INTERNET A.G. will be distributing our products. INTERNET A.G. has been supporting point-of-sale terminals, providing telemarketing in-and outbound services, and help desk and installation services. This highly-respected distributor has the logistical and technical expertise and market awareness to bring Hypercom’s innovative solutions to the German marketplace.”

INTERNET A.G. will sell and support Hypercom’s end-to-end family of electronic payment products, including the company’s ICE interactive touch-screen, consumer-operated point-of-sale (POS) terminals, networking systems and the Ascendent(TM) family of payment and data transaction processing and Internet payment software.

Hypercom’s recently-announced ICE 5000 terminal is the first multi-function touch-screen smart card terminal with integrated high security PIN Pad, FastPOS 9600 baud modem, electronic signature capture, high-speed thermal printer and automated paper cutter. The intuitive touch-screen simplifies operations, reduces training costs and allows banks to quickly deploy new payment applications.

“The need to offer new payment services, limit fraud, lower transaction costs and differentiate service offerings is leading German banks to develop new card-based payment systems and expand the number of POS terminals. In comparison to France and the UK, Germany has far fewer terminals and that represents significant opportunities and benefits for payment solution providers and users alike,” according to Rob Meli.

“It’s not just the potential for traditional payment locations that excites us about the German market, but also the rapid development of virtual shopping,” continued Mr. Rob Meli. “The payment options and loyalty programs that are now available on main street also have to be accessible to the Internet shopper. We have chosen INTERNET A.G. because of their experience in this area. They are ideally-positioned to support payment transactions over the Internet with Hypercom’s Ascendent Internet Commerce solutions.”

Andrew Tiedeman, the Managing Director of INTERNET A.G., comments: “Hypercom brings both state-of-the-art payment technology and global experience to the German POS market. German banks, retailers and third-party processors will be able to gain differentiation and business advantages by adopting these new payment solutions.”

About Hypercom Corporation

Hypercom (NYSE: HYC) is a global provider of electronic payment solutions, including innovative point-of-sale terminals, network products and Ascendent transaction processing software solutions. On a global basis Hypercom delivers the services and technology infrastructure required to quickly integrate and deploy new payment and added value applications to improve business performance and lower total cost of ownership.

Headquartered in Phoenix, Arizona, USA. Hypercom markets its products on all continents, with installations in over 60 countries. European sales and support offices are located in the United Kingdom, Hungary and Russia. In addition local EMEA distributors have been appointed in Poland, Romania, the Baltic States, Ukraine, Yugoslavia, Russia, Turkey, Cyprus, Greece, Mauritius, Egypt, Kenya, Ghana, Bahrain, Jordan, Israel and South Africa. Further information on Hypercom and its products can be found at [www.Hypercom.com][1]


INTERNET A.G. was founded in 1994 and is located in Frankfurt, Germany. A Full Solution Provider, the company offers a variety of custom-made solutions ranging from Internet Access, Firewall Systems, Network Solutions, Web Storefront Development, through to Electronic Commerce and Payment on the Internet. Through its Electronic Commerce Competence Center, Internet A.G. promotes, implements and supports all payment solutions that prove beneficial to client merchant by defining the business requirements for customers, technical implementation and providing support. INTERNET A.G. has offices in Frankfurt, Hamburg, Weinheim and Munich. Further information about the company and its products can be found at .

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


FreeBill Released

Businesses will now be able to offer their customers the convenience of receiving and paying bills via direct e-mail because of an electronic billing breakthrough developed by Brinkman Technologies, Inc. (BTI).  BTI’s FreeBill system offers businesses and government agencies an in-house alternative to the expensive “third party toll-way” model currently in existence, benefiting businesses and consumers with no transaction fees and more control over the bill payment process.

Using their existing e-mail service, consumers will receive billing statements directly from their vendor as an e-mail attachment.  To pay the bill, consumers will simply click on a hyperlink to their online billing statement, where they will be able to select from several payment options. With FreeBill, the biller now has the ability to process the payment on the date specified by the customer without third-party intervention or the need to hold an account at a participating financial institution.  This process marks a revolutionary shift in an industry dependent upon such companies since the inception of the electronic bill payment.

With lower front-end costs, no ongoing transaction fees, and complete in- house control over their electronic billing system, this new bill presentment and payment model will attract businesses that previously found the cost of electronic billing prohibitive.  The current electronic billing model requires businesses to make a substantial up-front investment and pay ongoing transaction fees for the privilege of using a third party processor (such as CheckFree and TransPoint) to send billing information, debit the customers’ bank accounts and collect payments.  FreeBill allows companies to automate this process and keep total in-house control over their billing systems and customer data.  The system converts the current flow of paper bills and checks into electronic media.

“Technology should make our lives easier and businesses more efficient, therefore reducing costs to businesses and consumers,” said Mark Brinkman, BTI president.  “Unlike the current electronic billing model, FreeBill allows businesses to keep their customer data private and avoid ongoing transaction fees that would eventually be passed on to the consumer.  The bottom line benefits are the cost savings and enhanced security for consumers, making FreeBill a superior choice for businesses.”


Wards Bankruptcy

Montgomery Ward & Co. said Monday it will emerge from Chapter 11 bankruptcy protection in mid 1999 as a result of an agreement reached with Wards’ Creditors’ Committee. As a first step in the agreement, GE Capital, a major creditor, is to acquire The Signature Group, the profitable direct marketing arm of Wards which was not part of the retailer’s general bankruptcy filing.  Wards will then place a sum in a fund to settle court-approved pre-bankruptcy unsecured claims of creditors other than GE Capital.  GE Capital and Wards management will receive the equity in the reorganized retailer. In the last 18 months, Wards closed more than 100 under-performing stores.


CoinBank to Military

Cash Technologies, Inc. announced Monday that its wholly owned subsidiary, CoinBank Automated Systems, Inc., has signed an agreement with the Army and Air Force Exchange Service to install its CoinBank advanced coin deposit machines at selected U.S. Army and Air Forcebases. AAFES is the agency responsible for the purchase and sale of consumer merchandise and services for all United States Army and Air Force bases around the world, and operates more than 1400 retail facilities in all 50 states and 25 countries.

“This contract demonstrates the value of integrating CoinBank’s e-commerce technology into its coin counting machines,” said Cash Technologies Chairman and CEO Bruce Korman. “In addition to offering U.S. soldiers, airmen and their families the first convenient method to dispose of loose coin, AAFES is the largest purchaser of prepaid phone cards in the world and can benefit from CoinBank’s ability to electronically issue and dispense phone cards. This capability provided CoinBank with a key advantage in the fierce competition for this award.”

There are a number of military bases in the U.S. that could be described as virtual cities, with their own ordinances, schools, retail stores and populations exceeding 100,000 military and civilian residents, providing potential opportunities for multiple CoinBank(R) installations at each base. Following these initial installations, the Company anticipates extending the scope of the agreement throughout the AAFES system.

Cash Technologies, Inc. develops and markets innovative e-commerce kiosks, including advanced self-service coin counters and the multi-function ATM-X(TM) automated teller machine.The Company also provides computerized cash processing services to banks, armored carriers, rapid transit agencies and other cash-intensive businesses.


DOJ – Citicorp

The Department of Justice agreed Monday to dismiss its suit seeking to block Citicorp Service Inc.’s proposed acquisition of Transactive Corporation’s EBT system business, now that Citicorp is abandoning the deal. The decision follows the decision by Citicorp to terminate its agreement with GTECH, Transactive’s parent company, to acquire the EBT system business. The DOJ said the proposed acquisition would have substantially limited competition among EBT services vendors. Citicorp is the dominant provider of EBT services as the prime contractor with 29 states. Until the proposed acquisition agreement was announced, Transactive, headquartered in Austin, Texas, was Citicorp’s major competitor and was the prime contractor in 3 states. Last week Citicorp won the EBT contract for the State of Maryland.


Sub-Prime Twist

While most sub-prime issuers offering low-credit-limit cards levy high fees and/or high interest rates First National Bank of Marin has come up with the idea of a partially-secured VISA card. In solicitations mailed out this week to sub-prime prospects, FNBM is guaranteeing approval for a $300, $400 or $600 credit line. Upon issuance of the VISA card FNBM takes a $200 cash advance against the credit line and deposits it into a savings account. Applicants are required to send $40 towards the $99 enrollment fee when submitting the application. There is also an additional $35 enrollment fee if the applicant’s credit report shows derogatory information or a history of past charged off debt. The VISA card carries a 19.8% fixed APR and an annual fee of $72. The full solicitation is available via CardWatch ([www.cardwatch.com][1]).

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


Magic Moments

VISA reported yesterday there were 16,826 winners in the ‘Magic Moments’ holiday promotion. All together the winners were awarded free purchases totaling more than $1.2 million. Between Nov. 1 and Dec. 31, VISA randomly selected, each day, a one-second magic moment when VISA card purchases were free. The moment with the most transactions occurred on Dec. 8 with 1,332 transactions. The largest free purchase was made at an auto repair shop in Virginia for about $6,000. The smallest free VISA purchase was made at the U.S. Post Office for 32 cents. Other free VISA purchases included jewelry, college tuition and cruise tickets. VISA says member support was extensive with nearly 100 million statement stuffers distributed.


Double Points

American Express launched a nationwide promotion to award double points for spending at supermarkets and drug stores from now through April 30th. The promotion is open to U.S. cardholders who have cards enrolled in the ‘Membership Rewards’ program, or who have the ‘Delta SkyMiles Credit Card’, the ‘American Express Golf Card’, the ‘Hilton Optima Card’, the ‘New York Knicks Card’ or the ‘New York Rangers Card’. Supermarkets and drug stores nationwide, as well as several online stores such as Peapod, Netgrocer and mybasics, that accept the American Express Card, are participating in the promotion.



ST. Louis-based Retention Marketing Consulting Group announced that new clients to its ‘RADAR’ service, signing up before March 1, will receive the year 2000 free. Retention ‘RADAR’ is a service designed to help issuers gain insight into how competing card brands communicate with cardholders. The service offers a comprehensive probe into retention marketing strategies.


New DataCard Distributor

DataCard Corporation announced the addition of Toronto, Ontario-based Ahearn & Soper, Inc., as an authorized regional distributor of DataCard photo ID products. Ahearn & Soper is Canada’s oldest and largest value-added distributor of imaging, printing and bar code solutions for a variety of high-tech applications.

“Signing Ahearn & Soper represents a true milestone for DataCard product distribution,” said Elaine Bliss, vice president of Americas distribution for DataCard’s enterprise company. “It substantially increases our North American distribution coverage, and it elevates our product delivery capabilities to the next level for our resellers.”

The ImPrint Division of Ahearn & Soper will distribute DataCard’s new Select(TM) Class and Express(TM) Class ID card printers, as well as the DataCard(R) ID Express(TM) photo ID system and DataCard(R) QuikWorks(R) photo ID software.

According to Bliss, DataCard chose Ahearn & Soper as a distribution partner because of the company’s strong history of providing excellent service, and because its focus on product quality and customer satisfaction mirrors that of DataCard.

“Ahearn & Soper has been serving customers in the U.S. and Canada for more than 100 years, with an established track record of supporting only the best, most dependable and cost-effective products,” Bliss said. “This, coupled with a solid, proven distribution infrastructure, made Ahearn & Soper an easy choice for DataCard.”

Founded in 1881, Ahearn & Soper has evolved into a $40 million, solutions-oriented value-added distributor and systems integrator for a variety of graphics, data collection and factory automation applications. Ahearn & Soper’s ImPrint Division serves customers from 16 regional offices located throughout the U.S. and Canada. ([www.ahearn.com][1])

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 digital photo ID systems and printers, card personalization systems and transaction systems. ([www.datacard.com][2])

[1]: http://www.ahearn.com
[2]: http://www.datacard.com



Wakefield, MA-based New England Bankcard Association Inc. has chosen to renew its bankcard processing agreement with First Data Resources Inc. for an additional five years.  Under the agreement, First Data will provide credit, debit, commercial, and private label card processing services, as well as merchant processing services to NEBA through 2003. NEBA, which serves over 75 issuing and acquiring financial institutions and businesses, has been a First Data client since 1980.