Magic Line Gets Clark

Magic Line, Inc., the Midwest’s largest electronic funds transfer network, announced Wednesday the signing of an ATM agreement with Standard Federal Bank for approximately 350 new ATMs in Clark Oil service stations across Michigan, Indiana and parts of Ohio. Magic Line processes over 15.5 million transactions monthly and serves over 1,016 banks, credit unions and thrifts in Michigan, Illinois, Indiana, Kentucky, Ohio, Missouri and 8 other states.

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AmEx Tix

American Express and MovieFone Inc., the nation’s largest movie listing guide and ticketing service, announced Wednesday a new long-term marketing partnership to promote telephone and Internet ticketing for movies. Under the new agreement, AmEx will become a national sponsor of MovieFone and its online sister service MovieLink.com, and the companies will work together on and jointly fund new marketing programs designed to reward moviegoers when they use the American Express Card to buy tickets through these services. MovieFone will promote AmEx to its over 110 million annual users, both on the MovieFone telephone service and on MovieLink.com.

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MultiPay MultiApplication PayPhones

Nortel yesterday announced the Millennium MultiPay MultiApplication payphone, its newest advanced public access solution capable of evolving with the dynamic needs of the public access and ePurse marketplace. The Millennium MultiPay MultiApplication payphone, which is available today, delivers new features that enhance performance, provide additional revenue opportunities and promote caller satisfaction. Nortel’s Millennium MultiPay MultiApplication payphone includes an advanced smart card interoperability feature, which expands the number of smart cards that can be accepted from different issuers at one time. There are currently more than 150,000 Millennium payphones throughout North America.

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Diebold  Forms Payment Solutions Group

To meet the unique needs of the utility industry, Diebold, Incorporated has formed an organization dedicated to delivering technology-based payment systems for utility consumers. Diebold’s new Payment Solutions Group will leverage the company’s experience in self-service automation and securing transactions of value by providing cost-saving, consumer payment options to the utility industry. Partially as a result of deregulation, utilities are seeking unique services that increase competitiveness and provide increased levels of customer service. Diebold’s Payment Solutions Group provides modular self- service products such as hardware and software, as well as facility and security products that not only offer more services, but cost savings as well. The organization also provides professional services, consulting and custom design of payment delivery systems.

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Citicorp 2Q

According to data released to CardWeb’s CardData, Citibank ended the second quarter with $60.3 billion in U.S. receivables and 38.2 million gross accounts. Citibank also logged $34 billion in second quarter volume to bring its year-to-date volume to $58.1 billion. Citibank’s portfolio expanded by $14.5 billion in receivables and 14 million accounts due to its acquisition of AT&T’s Universal Card Services which was completed on April 2. During the second quarter UCS contributed $336 million to revenue, $227 million to expense, and $176 million to chargeoffs, resulting in a net loss of about $44 million. These amounts included $107 million pretax of UCS acquisition premium costs.  U.S. chargeoffs were $842 million or 5.73% of average managed loans compared to $683  million or 6.13% a year ago. The percent of gross write-offs from bankruptcies in the quarter was 41.1% compared to 40.2% in the 1997 second quarter. U.S. bankcards managed loans delinquent 90 days or more were $942 million or 1.58% compared to $843 million or 1.86% last summer. Worldwide Citicorp card accounts totaled 49 million compared to 36 million a year-ago and cards-in-force grew from 63 million to 91 million during the same period, principally reflecting the acquisition of UCS and an 11% growth in Latin America. Citicorp’s complete second quarter earnings report is available via [www.carddata.com][1].

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

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High Smart Card Code Security

Integrated Silicon Solution, Inc. introduced yesterday the IS23SC1604, a 16K-bit serial EEPROM with security logic that is designed for the smart card market and other applications where securing the code in the memory is very critical. The IS23SC1604 provides four application zones with password protection and is designed with a feature to permanently invalidate security codes after eight consecutive fails. Users enter a correct password to match the internal password to unlock the memory to read, write or erase. A major application for the IS23SC1604 is for secure database smart cards including health management, financial data, telephone cards, vending machines, cafeterias, laundromats, parking tools, computer security and electronic purses.

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Payroll Machine Pilot

Mr. Payroll Corp. and the Phoenix-based Circle K convenience-store chain agreed yesterday to deploy the ‘Mr. Payroll Check Cashing Machine’. Initially, the two companies will collaborate on a 15-machine pilot program in AZ and LA.  The first phase of the program involves the conversion of Mr. Payroll manned kiosks at five Circle K convenience stores in Shreveport-Bossier City, La. The payroll machines will also be installed in ten Circle K stores in the Phoenix area. The Mr. Payroll CCM is a self-service check cashing machine that employs facial biometrics to verify the identities of customers. The machine permits even those without bank accounts to cash their own checks, with no photo ID required.  Since the installation of the first Mr. Payroll CCM in June 97, 51 have been deployed in banks, supermarkets and convenience stores in 15 states.  The machine has already been used to cash more than 200,000 checks of all types for more than $60 million

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NDC Windfall

National Data Corporation announced Tuesday that FDC EVP Walter M. Hoff will take over as president and CEO of NDC Health Information Services. Hoff will succeed Robert A. Yellowlees, NDC chairman and CEO, who had headed the health care line of business, NDC’s largest business unit. Hoff indicated yesterday the potential growth of NDC’s Health Information Services is similiar to FDC’s market position in 1993. NDC said it was Hoff’s strategic vision, tactical pragmatism and energy that lead to their decision. Hoff will continue to be based in Atlanta.

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Big ATM Deal

GA-based, family-owned  Hanco Systems agreed Tuesday to purchase 1,000 ‘CashSource Plus 100’ ATMs from Diebold. Beginning this month, Hanco Systems will install the retail ATMs in a mix of off-premises locations such as convenience stores, bowling alleys, night clubs and hotels across the United States. The ‘CashSource Plus 100’ was introduced last month and is part of Diebold’s family of retail ATMs which also includes the recently announced ‘CashSource Plus 200’ and ‘400’.  Each unit is targeted for a specific segment of the off-premises, retail market and has the capability to dispense items such as postage stamps, coupons, pre-paid phone vouchers and other revenue-generating media.

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