For Sale

National Loan Exchange Corp., has been contracted to offer non-performing and charged-off financial assets for Toronto Dominion Bank as well as a second major Canadian Bank.  NLEX will sell approximately $50 million of charged-off credit card accounts in October, followed by a December sale for a third Canadian Bank.  Also being offered in 1998 are non-performing loans on behalf of Island Victoria Bank of Jamaica. Assets include commercial and real estate accounts.


Chase Lenscard

Chase Manhattan Bank also announced the launch of the first credit card designed to help users make sense of the fine print — The Chase LensCard.  The LensCard has a built-in magnifying lens to make small print easier to read. The Chase LensCard provides a simple and practical solution to such inconveniences as reading the small print on restaurant receipts and bills, in telephone books and directories or anytime you forget your reading glasses! This added feature makes paying for all types of purchases with your Chase credit card even more convenient. The LensCard, which is available exclusively through Chase, offers quality resolution and magnifies print three and a half times its existing size.  The magnifying lens is in the center of the left side of the card and measures 1-1/8 by 3/8 of an inch in size, so it’s unobtrusive and doesn’t interfere with the cards operation.


Discover Renamed

Morgan Stanley Dean Witter announced Wednesday that it would be renaming its credit services unit, formerly NOVUS Services, Inc., to Discover Financial Services, Inc.  In addition to the name change, all of the credit cards offered through Discover Financial Services, Inc. will have the Discover Card name and/or logo appear on the cards. The NOVUS Network name will not change but the acceptance logos will now consistently be Discover/NOVUS.


3GI Growth

3-G International, Inc. (3GI) has been recognized as one of the fastest growing privately-held U.S. companies by Inc. Magazine.  3GI achieved a remarkable 1820% five-year sales growth, placing the company 134th in the 1998 Inc. 500 survey. 3GI joins an elite group of past Inc. 500 companies which includes Microsoft, Oracle, and Gateway 2000.  3GI develops and sells smart card software applications, smart card management systems, and software for smart card acceptance devices including personal computers. 3GI also provides comprehensive smart card integration services to industry and government customers.



Biometric Identification Inc. (Bio ID) has announced the development and introduction of prototypes for the first complete Biometric Fingerprint Identification System that utilizes silicon sensor verification technology. This innovative product line, known as the Veriprint 1000/1100, represents the first time a silicon sensor-based technology has been implemented in a fingerprint identification product. Prior to the development of the V1000/1100, fingerprint solutions were based solely on optical imaging technology.



VHS Network Inc., a publicly traded Florida corporation, announced Wednesday that it has executed a Letter of Intent to purchase 100% of all outstanding shares of NEO Products Pty. Ltd. NEO Products is in the ATM and Kiosk manufacturing design and software engineering business. NEO’s company base includes IBM, governments, Olympics, Tralstra National Telephone Co. and many other national brand names. In addition, proprietary software technology includes the pro-active “Smart Card” and financial transaction ability.


Carnival VISA

The “World’s Best Way To Pay” is partnering and co-sponsoring “The World’s Leading Cruise Lines”.  Carnival Corp. announced Tuesday its first-ever corporate marketing effort for its family of six cruise companies: Carnival Cruise Lines, Costa Cruises, Cunard Line, Holland America Line-Westours, Seabourn Cruise Line and Windstar Cruises. VISA had previously been involved in marketing partnerships with Carnival Cruise Lines and Holland America Line. The relationship will now expand to Carnival’s other brands and will feature exclusive offers for VISA cardholders.Carnival Corp.operates 42 ships under six brand names on worldwide itineraries.


Check Card Regs

Several House legislators have formally asked Federal Reserve Chairman Alan Greenspan to study whether or not the Federal Reserve has adequate powers to regulate off-line debit cards. In an October 9 letter to Greenspan, released yesterday, House Banking Committee Chairman James Leach, R-Iowa, asked for better disclosure regarding the risks of check cards and requested a $50 limit on consumer Check Cardholder liability. Among other House lawmakers signing the letter: John LaFalce, D-New York; Bruce Vento, D-Minnesota; Marge Roukema, R-New Jersey; and Thomas Barrett, D-Wisconsin.


Strongest Quarter

Capital One said yesterday the third quarter was the strongest quarter in its history with record earnings, record growth in accounts and outstandings, record improvement in credit quality, and a record investment in marketing. Marketing investment increased in the third quarter to $126 million versus $86 million in the second quarter, and $61 million in the comparable period of the prior year. As a result Capital One’s managed consumer loan balances increased by a record $1.4 billion to $16.3 billion. Cap One also added a record 1.3 million net new accounts, bringing total accounts to 14.9 million.  The managed delinquency rate (30+ days) decreased to 4.90% as of Sept 30, compared with 5.14% as of June 30. The managed net charge-off rate decreased to 5.03% for the third quarter of 1998 compared with 5.91% in the second quarter of 1998. Cap One’s record third quarter earnings hit $70 million versus earnings of $67 million for the second quarter and $49 million for second quarter 1997. Cap One’s net interest margin also grew to 10.15%. The company also reported increased fee income due to increased annual membership fees, interchange, overlimit fees and other fees. For the complete earnings report for Capital One and other major card issuers dial [][1]



Providian Up 70%

Secured card leader Providian Financial reported third quarter net income of $82.6 million, a 70% increase over net income of $48.6 million for the third quarter of 1997. Providian says unbanked customers combined with an increasing penetration rate of proprietary fee-based product sales company-wide fueled this growth in revenue. Providian Financial says it acquired more than 1.1 million new account relationships during the third quarter to bring the total number of managed accounts to over 6.4 million, a 45% increase over the same period in 1997. The company now holds $11.8 billion in managed loans as of Sept 30. For the third quarter of 1998, managed  chargeoffs and managed 31+ day delinquency were 7.8% and 5.3%, respectively. For the complete earnings report for Providian and other major card issuers dial [][1]



CertPlus Digital IDs

Certplus today announced a wide range of digital certificate validation products and services aimed at applications in internet and on-line services, intranet, extranet, banking, healthcare and the administration.

Digital certificates are used to guarantee the identity of those involved in electronic transactions – individuals, companies, or administrations. With digital certificates, transactions over the internet can be carried out with total confidence in the identity of the participants. They can be installed on a user’s workstation or, with an even higher level of security, on a smart card. They are a key element in what are called Public Key Infrastructures.

Certplus new range includes the following products and services:

• Client certificates (classified C1, C2, C3 depending on the severity of the registration procedures). These are designed to identify internet users and guarantee the security of communications. A certificate with a one year validity can be obtained over the internet for a unit price of around 100 French francs. It can be used for secured messaging (S/MIME standard),secure web access (Secure Sockets Layer SSL v3 protocol) or data encryption(IPSEC).

• Server certificates (Level 3). These are required to enable electronic commerce operations to be carried out in a situation of complete trust. To obtain a server certificate and hence be identifiable to a client, a merchant must prove its identity with legal documents.

• A secure electronic transaction (SET) solution that has been approved by Visa. Certplus supplies the GIE Carte Bleue, a major player in e-COMM, awide ranging French e-commerce project.

• GemSAFE certificates can be loaded on to a smart card, and provide a identification for the holder. The complete GemSAFE kit (reader, card and certificate) is available today over the web for about FF500.

• OnSite is a highly innovative solution to enable companies to build “areas of trust”. Companies using OnSite have their own hardware installation and apply their own trust practices, but they use a highly secure “signature engine” from Certplus. By working in partnership, companies can develop at minimal cost, very effective and secure solutions.

• OnSite Server is aimed at network administrators and the securization of server sites.

• Smart card based solutions are built around Gemplus’ GemSAFE product.The combination of smart cards and certificates allows a very high level of security together with ease of use.

• Consulting services. Certplus consultants are available to help clients design and implement their areas of trust.

Certplus applies technology developed by VeriSign, widely recognized leader in the field and originator of Certification Practice Statements. The company also works closely with French authorities responsible for insuring compliance with encryption regulation. All Certplus products are in total conformity with the present legal requirements.

In order to insure quality and security, Certplus uses Gemplus’s manufacturing and personalization center at Sarcelles, France. This plant has been built and operates according to stringent quality and security criteria.

The market:

Certplus current range of products is aimed at a number of markets. These are:

• internet and on-line services identification, access privileges and usage need to be verified or measured

• intranet companies need to manage internal communications and access privileges

• extranet there is a need for secure electronic data interchange between companies and their partners • banking electronic commerce and home banking

• healthcare and other closed user groups people need to be identified and confidential data exchanged

• the administration data need to be exchanged between authorities andusers can pay taxes, healthcare or social security contributions over the internet How Public Key Infrastructures work

A Certifying Authority defines the rules of attribution and the management of digital certificates, in particular what is need to prove identity before granting the certificate. It can be for example a banking organization, (France’s GIE Carte Bancaire, Visa or Mastercard), a ministry,chambers of commerce, or notaries.

A Certification Operator is a company which signs the certification requests forwarded to it by a Registration Authority. This signature function has to take place in conditions of total security as a certificate is easy to make. Certplus’ business is to be a certification operator and it derives its income by charging for each certificate issued.valid for one or two years, these certificates are billed at FF20 to FF10,000 or more depending on the levels of guarantee provided.

The Registration Authority checks that the attribution of the certificate has taken place according to the rules. It is this authority for which Certplus provides an effective, proven and easily upgradable solution.


Hypercom Latino

Hypercom Corporation, a global provider of electronic payment solutions, has named Jorge Bobadilla Vice President of Business Development and Sales Planning for Latin America. Immediately prior to joining Hypercom, Mr. Bobadilla was Director of Business Development in Latin America and General Manager of VeriFone Mexico.

In his new position, Mr. Bobadilla is responsible for all aspects of business development, sales planning and marketing for Hypercom Latin America. He will play a key role in developing and implementing regional sales strategies, channel marketing programs, and fundamental and innovative tools that will support Hypercom’s aggressive expansion plans in Latin America.

At VeriFone, Mr. Bobadilla played a key role in creating, implementing and directing key strategic Latin American sales initiatives for that company, including developing VeriFone’s vertical markets such as hotels, travel agencies, retail and oil and gas. Also, as a country manager, he was responsible for VeriFone’s operations and customized software in Mexico.

“Jorge Bobadilla’s extensive industry, regional and vertical market experience will significantly enhance our already strong drive to further increase Hypercom’s leading marketshare in this important region,” said Mr. Jairo E. Gonzalez, President, Hypercom International. “We are delighted to announce his appointment to our Latin American management team.”

Mr. Bobadilla is a 20-year veteran of the IT industry. Prior to VeriFone, he served as transactions automation director with VeriFone’s exclusive distributor in Mexico, Pentamex. At Pentamex, Mr. Bobadilla was responsible for marketing, sales, systems development and technical support for the VeriFone product line. Mr. Bobadilla has also held various systems, sales and management positions at Wang of Mexico, Data Card de Mexico, Accor Group and Bancreser.

Celebrating its 20th anniversary, Hypercom Corporation is a global provider of electronic payment solutions, including multi-functional point-of-sale terminals, peripherals, network products, transaction software, Internet-based and electronic commerce payment solutions. On a global basis Hypercom delivers the services and technology infrastructure required to quickly integrate and deploy new payment applications for competitive value-add programs, improved business performance and low total cost of ownership.

Headquartered in Phoenix, Arizona, Hypercom markets its products in more than 60 countries through a global network of offices and affiliates in Argentina, Australia, Brazil, Chile, China, Hong Kong, Hungary, Japan, Mexico, Russia, Singapore, the United Kingdom and Venezuela. Hypercom’s Internet address is [][1].