CheckFree & EDS

CheckFree and EDS signed a six-year agreement Tuesday in which EDS will use CheckFree’s remittance processing services for the electronic bill paying service that EDS provides to financial institutions. CheckFree is a provider of bill presentment and payment processing for financial institutions, processing more than 10 million electronic bill payment transactions per month. EDS has more than 5,000 financial institution clients in 32 countries.



BA Merchant Services reported third quarter net income of $11.2 million, an 11% increase over net income of $10.1 million for the comparable quarter of 1997. Net revenue of $136 million on sales volume processed of $30 billion for the first nine months of 1998 increased 17% and 24%, respectively, over net revenue of $116 million on sales volume processed of $24 billion for the same period in 1997. On Oct. 22, Bank of America NT&SA disclosed its intention to offer to potentially acquire all the Class A shares of BAMS which are publicly held. Bank of America indicated its willingness to acquire such shares at a cash price of $15.50. BAMS Board of Directors has formed a special committee, consisting entirely of directors independent of Bank of America, to review and evaluate the proposal.



Attendees from 31 states and territories and two foreign countries will convene in Washington beginning on Sunday for a discussion on the future of Electronic Benefits Transfer systems.

The occasion will be EBT–The Next Generation, a national conference being hosted by the EBT Industry Council of the Electronic Funds Transfer Association. The Conference begins Sunday, Nov. 8 at the Marriott Metro Center in the nation’s capital.

In making the announcement, H. Kurt Helwig, executive director of EFTA said, “The universal and widespread support of this conference speaks to the importance of EBT in future public policy, and the role of our EBT Industry Council in helping shape that future.”

In addition to government officials from 23 states, representatives from federal agencies such as the Agriculture and Treasure departments, the General Services Administration, the Federal Reserve System and the F.B.I will also participate in the conference, added Helwig.

“We are especially gratified at the breadth of interest that EBT–The Next Generation has drawn,” Helwig stated, noting that private and public sector representatives from as far away as Guam, Puerto Rico, Canada and the United Kingdom would attend the conference.

About EBT–The Next Generation

EBT–The Next Generation is a national conference to examine the conversion of existing government services from paper documentation to electronic payment technologies, the Internet and interactive media.

The conference will feature government and industry leaders in seminars on such topics as cost sharing partnerships, multi-program integration, recreational card services, digitized drivers licenses, government funded health and nutrition programs, campus cards and retail delivery systems.

For more information on EBT–The Next Generation, please visit the EFTA web site at .

About the EBT Industry Council

EFTA’s EBT Industry Council is the nation’s longest standing trade group dedicated to the business and policy issues involved in electronic benefits transfer systems. Its members include EBT processors, suppliers, equipment manufacturers and consultants. Current members include Lockheed Martin IMS, SPS Payment Systems, and HONOR Technologies.

About the Electronic Funds Transfer Association

Now in its third decade, the Electronic Funds Transfer Association is the nation’s leading inter-industry trade association dedicated to electronic commerce and payments. EFTA members include CyberCash, Inc., Online Resources & Communications Corp., and Chase Manhattan Bank.


DANYL Goes to School

Schlumberger DANYL Tuesday announced that it has expanded its smart card-based solution for the campus market. Combining its leading-edge Open architecture PUrse System smart card system with DataCard Corporation and Touch Technology International technology to offer expanded front- and back-end capabilities, Schlumberger is now positioned as the campus market’s single source “general contractor” for smart card-enabled solutions.

Encompassing cards, terminals, readers, software, administrative support and other expertise, Schlumberger OPUS is an expandable smart card platform that grows as applications are needed. Supporting multiple purses, loyalty, access and banking interfaces, the Schlumberger end-to-end offering provides long term stability, faster development time and reduced technical risk through coordinated development and integration of smart cards, readers and its unique “total solution” model.

“Today’s closed, multi-application systems in higher education are evolving as the staging ground for tomorrow’s global evolution in smart card-enabled electronic transactions and access/ID,” stated Louis Bisasky, general manager, Schlumberger DANYL. “As a result of the extensive research and manpower investments that we have made in perfecting smart card systems for the campus environment, Schlumberger DANYL is now positioned as the leading, single-source provider of these solutions for this rapidly growing market.”

Adding to its state-of-the-art capabilities and commitment to customer service and support, Schlumberger DANYL recently signed a reseller agreement with DataCard Corporation that adds ID card imaging services to its portfolio. The Schlumberger offering now incorporates DataCard’s industry-leading digital card printing technology and software, which supports integrated image capture, card printing, smart card programming and magnetic stripe encoding in a single pass process. “We are delighted to team-up with Schlumberger to provide seamless end-to-end solutions for the campus market,” stated Renee Garpestad, vice president, Market Development, for DataCard’s enterprise company. “Campus administrators will now be able to leverage our combined resources to move forward with next generation smart card-enabled services more quickly.”

Additionally, Schlumberger DANYL recently licensed TTI’s CardTouch software, providing comprehensive capability for automated back-end functions, including settlement, funds pool management and funds movement, which previously required manual efforts. “OPUS and CardTouch make an ideal combination for the campus environment,” stated Bill Hussey, TTI president and chief executive officer. “Packaging our two systems together provides a unique and unrivaled campus card solution that automates ID and campus commerce. The integrated solution can create significant time- and cost-saving benefits for campus administrators.”

“Combining OPUS with these other advanced technologies, the Schlumberger DANYL total solution campus offering now includes smart cards; readers for vending, laundry, library copiers and printers; point-of-sale terminals; bank debit and credit card-capable electronic purse revaluing stations; data collection systems; project management and installation,” stated Randy Vanderhoof, director, Product Marketing, Schlumberger DANYL. ” This combination of products, software and services makes OPUS the most complete smart card solution for the college and corporate campus markets.”

Schlumberger Drives Smart Card-Based Solutions on Campus

Schlumberger DANYL is a business group within Schlumberger Smart Cards & Terminals, the world’s leading provider of smart card-based solutions for businesses and communities. Drawing on this expertise, Schlumberger DANYL is North America’s only single-source provider of total smart card-based stored value solutions for closed and semi-closed environments, such as college campuses, corporate campuses, hospitals, municipalities and resorts.

The company’s current installed base of over 350 campuses, corporate offices, government bases and libraries benefit from over ten years experience delivering both magnetic stripe and smart card technology. The first Schlumberger DANYL smart card campus systems were installed in 1995 at the University of Michigan and at Western Michigan University. Since then, over a dozen additional campuses and corporate offices have implemented similar systems with the help of Schlumberger.

About Schlumberger

Schlumberger Smart Cards & Terminals is the leading provider of smart card-based solutions worldwide, shaping the new world of smart solutions by providing leading-edge technology to enable innovative smart card and terminal applications that enhance the security and convenience of businesses and communities of all kinds. Schlumberger smart card solutions encompass a wide range of cards, terminals, development tools and support in open configurations for operators, developers, integrators and distributors worldwide. As part of the Smart Village vision, the Schlumberger offer includes the milestone Cyberflex card, the industry’s first Java-based smart card. The Smart Cards & Terminals group operates 45 facilities in 34 countries across the globe. Additional information is available on the World Wide Web at .

Schlumberger Test & Transactions is the parent division for Schlumberger Smart Cards & Terminals and Schlumberger Automated Test Equipment, leveraging the combined strengths of the two business units to provide leading-edge, cost-effective solutions to customers.

Schlumberger Test & Transactions is a business unit of Schlumberger Limited, a $10.65 billion global technology service company providing oilfield services, natural resources management, transactions-based technology and associated systems, and semiconductor test equipment.

About DataCard Corporation

DataCard Corporation, a privately held company based in Minneapolis, Minn., provides customers around the world with fully integrated solutions for a variety of financial and identification applications. Major markets for identification solutions include Fortune 1000 companies, educational institutions, government and healthcare. 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]). About Touch Technology International

Founded in 1991, Touch Technology International provides software solutions, integration services and operations support for high-volume transaction processing systems using smart cards and other emerging technologies. Engineered to provide a common foundation for a wide variety of smart card applications, TTI’s CardTouch system delivers comprehensive back-office capabilities for a number of markets such as public tolls and transit, financial services, universities, and corporations. The CardTouch platform may be licensed by systems integrators and vertical market solutions providers who wish to build smart card payment and access systems. More information about CardTouch can be found at [][2]

Cyberflex is a trademark and Smart Village is a registered trademark of Schlumberger. Java is a trademark of Sun Microsystems, Inc.



Chameleon ATM

TX-based Tidel Technologies introduced Tuesday the next generation of ATM technology. ‘Chameleon’ is an Internet-savvy, interactive multimedia kiosk that combines the security of traditional EFT banking networks with the limitless e-commerce options of the Internet, thereby taking the ATM far beyond its existing boundaries.  For example, an ATM user could make a cash withdrawal, and then buy airline tickets and book a hotel reservation, all while receiving high-impact advertising messages in broadcast-quality video and audio. With a direct hot link to the Internet via web-enabled screens, the ‘Chameleon ATM’ will allow consumers to process a variety of convenience-based transactions never before possible at their local ATM.


NetUSA Picks Up Another

NetUSA Telecom Division announced Tuesday that it has signed a letter of intent to acquire the GlobalCOM TeleServices, Inc. of Fremont, Calif.

Under the terms of the proposed merger/acquisition, NetUSA’s Telecom Division and GlobalCOM will merge their telecommunications operations. The new company will offer low-cost, high-quality Internet and traditional telecommunications services to a large number of countries.

GlobalCOM TeleServices was one of the first companies to offer prepaid phone cards for international telephone services to cut into the high cost of international long distance calls. Currently, GlobalCOM’s Enhanced Telephone Services (ETS) enjoys a large, nationwide customer base for services to Taiwan, Hong Kong, Japan, Korea, Canada, United Kingdom, and France.

It is the largest phone card service provider to Taiwan. It plans to enter into the China market in the near future. GlobalCOM also offers nationwide paging, international callback, international fax and voice mail services.

“GlobalCOM is a known winner in the business. They have high quality customer service and market savvy in letting customers know about their services,” said Michael Gallagher, NetUSA director of Business Development.

“They also have a large customer base, which is crucial to the development of new, better services. With this acquisition, the companies can pool their strengths together. We have the Internet technology and Internet marketing experience. They have the large customer base and experience in providing the telecom services. Together, we can offer new services such as the phone card sales via NetUSA internet online sales channel at an affordable price.”

NetUSA has three divisions. The Telecom Division ([][1]) employs cutting-edge IP technology for iphone and ifax that highly reduces the cost while preserving the quality of the services.

The WebCenter Division provides complete World Wide Web solutions for business and also owns, one of the largest software information centers and online sales on the Web.

The Software Technology Division ([][2]) produces critically acclaimed utility programs for personal computers using Microsoft operating systems, including award-winning Mac-In-DOS.



ATM PowerBuilder

Chicago-based Capital Security Systems announced Tuesday the filing of a patent on the ‘ATM PowerBuilder’, a development platform that provides automated banking customers with a means of accessing seventeen different banking functions from an ATM terminal. The ‘ATM PowerBuilder’ will also do transactions and combination transfers based on credit cards, bank cards, debit cards, smart cards and EBT cards. It also enables ATM users to cash money orders, checks and other notes, as well as pay bills, wire funds and buy items like stamps and phonecards, all at the same terminal. The company says the ‘ATM PowerBuilder’ employs the most advanced technologies currently available in the field of electronic banking.



The Global Chipcard Alliance announced yesterday that MasterCard International has joined the organization. The news came from the annual membership meeting underway this week in Long Beach, CA. MasterCard International said yesterday it believes chip technology will allow consumers to customize their cards with multiple applications including credit, debit, travel preferences, health records, telephone information, retailer loyalty programs, and electronic cash. As a part of this week, the GCA will host the ‘First Smart Card Global Summit’.


$6.8 Billion of Chip Cards

Gartner Group’s Dataquest subsidiary said Monday that the worldwide chip card market reached $1.4 billion in 1997, and the market is forecast to continue to show strong growth with revenue reaching $6.8 billion in 2002. Europe was the #1 region for chip card revenue, accounting for 76.8% of the worldwide market in 1997.  Dataquest predicts by 2002, Europe’s share of worldwide chip card revenue will decline to 47.8%, while Asia/Pacific will be the #2 region with 30.1% of worldwide sales. The Americas (not including the U.S.) will account for 8.6% of sales in 2002, and the U.S. will have 7.8% of chip card revenue. The chip card is the highest-volume electronics end product in the world today with an estimated 462 million cards sold in 1997. Smart cards accounted for 56.2% of chip card revenue in 1997. Pay phone cards led the industry with 67.7% of the chip cards shipped in 1997. Dataquest projects smart card revenue to represent 70% of the market by 2002.


SCF First President

William J. Barr, Chairman of the Board of the Smart Card Forum (SCF), a multi-industry organization working to accelerate the widespread acceptance of smart card technology, announced Monday that Donna Farmer has been named as the Forum’s first President and CEO. Ms. Farmer is a lawyer with extensive experience in business, technology, finance and public policy.

“Donna Farmer has a unique blend of leadership qualities that make her a perfect fit with the Smart Card Forum,” says Barr. “Experience in technology. A strong management background. Skill at bringing people together. An ability to define a strategic direction. These are key attributes that will play an important role in the articulation and achievement of the Forum’s vision.”

“Creating this new office of President and CEO is a welcome necessity as it reflects the unrelenting progress of smart card technology and the large size of our membership,” adds Barr. “It’s a bigger job for a bigger organization that represents a much bigger technology.”

As part of the move, Barr relinquishes the title of President of the Forum and retains the title of Chairman of the Board of Directors. Farmer will work closely with the Board to implement the Forum’s strategic plan and to recruit new members. She will assume the role of primary spokesperson for the organization. As such, Farmer will be the leading public source of information on the Smart Card Forum.

“These are exciting times for smart card technology,” says Farmer. “The Forum’s 200 members are at the leading edge of its evolution from emergence to commercialization. We’re seeing new pilots, new implementations, new applications, and a new level of consumer interest that together constitute a rising tide of marketplace acceptance. I look forward to applying my experience to the task of ensuring the Forum’s work continues to lead smart card technology forward.”

Farmer joins the Forum from CertCo, where she served as Vice President of Strategic Business Development. There, she was responsible for creating the strategic relationships that drive CertCo’s mission of enabling banks and other trust institutions with revenue-bearing public key infrastructure capability.

At CertCo, Farmer negotiated technology partner agreements and managed relationships with a number of technology partners, including smart card, directory, and application vendors.

During 1996 and 1997, Farmer was counsel to the Science Committee in the U.S. House of Representatives where she was responsible for all information technology-related issues. Working with the Subcommittee on Technology, she directed hearings and wrote legislation concerning U.S. encryption policies, as well as other regulatory matters affecting the electronic marketplace.

From 1993-95, Farmer was a principal in a Washington D.C.-based equity investment firm. She was responsible for funding companies involved in data interoperability and Internet services. This venture capital work involved identifying opportunities, proceeding with due diligence, helping select management, preparing portfolio firms for the public market, and matching them with strategic partners.

Farmer previously worked as Business Technology Advisor for Analytic Services Corp., a U.S. government-affiliated firm. Earlier in her career, she practiced law as a litigator in New York City.

Farmer has a J.D. from New York Law and a B.A. from Columbia University. She is a member of the New York and Washington, D.C. bars. She has served as editorial advisor for the MIT Press book series on the future of information technologies, and has been a frequent speaker at conferences on topics such as privacy, encryption and computer security.

The Smart Card Forum ([][1]) is a non-profit, multi-industry organization of 200 members working to accelerate the widespread acceptance of multiple application smart card technology by bringing together, in an open forum, leading users and technologists from both the public and private sectors.



Star Trek Cards

Paramount Pictures’ ninth Star Trek movie, ‘Star Trek: Insurrection’, which opens Dec. 11, is being promoted by a new series of four AT&T prepaid calling cards. The new ‘Star Trek’ phone cards went on sale yesterday at select retail outlets nationwide. The cards will also be available for purchase through AT&T’s Web site starting this morning. AT&T is also running a special promotion through January 31, 1999. When consumers enter the card’s PIN number they will hear a message telling them if they have won from a variety of prizes, including the grand prize of an all-expenses-paid trip for two to the ‘Star Trek: The Experience’ attraction at the Las Vegas Hilton. AT&T also announced Monday the availability of six new holiday-themed AT&T prepaid cards in 15-, 30-, 60-, 100-, 200-, and 300-minute denominations. As a bonus AT&T is offering a free 10-minute prepaid phone card with the purchase of a 60+ minute denomination card.