Digital Sigs in UK

Barclays Bank and CertCo launched a smart card-based digital signature service last week called ‘Barclays Endorse’. The UK government is the first to make use of the service by enabling individuals to register new businesses via the Internet in a six-month trial which commenced Friday. The trial is part of the country’s Better Government Programme.  CertCo’s ‘CertAuthority Solution’ technology provides Barclays with the “root” certificate authority technology needed to ensure that the digital signatures on the forms are just as reliable as manually signed paper documents. UK citizens who are starting their own businesses are required to register with three government departments: Contributions Agency, Inland Revenue and HM Customs and Excise. Using smart cards and readers in their home personal computers or in select Barclays branches, the ‘Barclays Endorse’ trial enables users to submit streamlined electronic intelligent forms,  digitally sign the documents and transmit them to the government.


Japanese Toys ‘R’ Us Card

The co-branded ‘Toys ‘R’ Us’ card has been a hit by international standards. Since its launch last November in Japan the program has exceeded its goal by 50%. At the end of May, the card, issued by Aeon Credit Service Company, has signed up 300,000 cardholders.  The Aeon-Toys ‘R’ Us partnership projected 200,000 cardholders in Japan. The British and Spanish programs have about 150,000 cardholders total. The company reportedly said this weekend that consumers were “fighting” for card applications when the program was announced November 7.


Platinum Fees

While ‘Platinum’ VISA and MasterCards have generally come to signify the issuer’s highest credit limits and issuer’s lowest pricing, a ‘Platinum’ offer may also include some of the highest fees for making a late payment, going over the credit limit or taking a cash advance. According to a sampling of  ‘Platinum’ solicitations dispatched in June and captured by CardWeb’s new ‘CardWatch’ service, ‘Platinum’ late payment fees are averaging slightly above $25, or about 31% higher than the industry average. Over-the-limit fees are also running 31% higher, $24.45 versus an $18.66 industry average. ‘Platinum’ cash advance fees are about 27% higher.

ISSUER             LPF OLF        CAF
Citibank ‘Platinum Select’      $25 $25   2.5%w$2min
Advanta ‘Platinum Edge’ $25     $25   4.0%/w$5min
MBNA ‘Platinum Plus’ $25 $25   2.0%/w$2 min
Capital One $25 $25   2.5%/w$2.50 min
AT&T Universal $20 $20   2.0%/w$2 min-$20 max
Mellon $25 $25   3.5%/w $5 min
NationsBank ‘Platinum Priority’ $25 $25   3.0%/w$3 min
First USA $29 $25   2.0%/w$10 min
GE Capital $29 $25   2.5%/w $2 min
Platinum Averages $25.34 $24.45   2.67%/w $3.73 min
Industry Averages $19.42 $18.66   2.11%/w $2.05 min

LPF- late payment fee; OLF- over-the-limit fee; CAF- cash advance fee. Source: CardWeb’s new CardWatch service and Card Management Information Services’ Bankcard Barometer


Air Travel Card is SET

Air Travel Card, the world’s first business travel payment system, announced the successful completion of an end-to-end test of the first phase of its Electronic Commerce Program. The test ensures a highly secure virtual environment for Air Travel Card airlines and cardholders when purchasing over the Internet.

The test, comprised of a full electronic consumer transaction through a simulated airline merchant to a gateway based on the SET protocol, was held at Electronic Data Systems (EDS) of Dallas, TX and conducted in conjunction with VeriFone, Inc. of Santa Clara, CA. VeriFone, a leader in the electronic commerce field, has partnered with Air Travel Card to deliver secure end-to-end Internet payment solutions. The software programs tested by Air Travel Card include vGATE software, which provides seamless transaction delivery from the Internet merchant to a financial institution; vPOS software which captures order and payment data for the merchant and transmits appropriate credit authorization and processing information; and vWALLET software which gives the consumer a highly secure means to make Internet purchases from the convenience of their PC.

Elizabeth Ames, general manager, Merchant Services at VeriFone said, “By bringing this technology to the business travel industry, Air Travel Card is putting together a robust solution that will keep its members’ transactions safe in the virtual world.”

“With the end-to-end test successfully completed, Air Travel Card will now begin Internet transactions with pilot airlines American Airlines and Lufthansa German Airlines. Air Travel Card cardholders will now be able to enjoy all the benefits SET technology has to offer.” stated Charles Fischer, managing director of Air Travel Card. The completion of this initial test demonstrates Air Travel Card’s commitment and leadership in providing this technology.

Air Travel Card is the business travel payment system offered by nearly 30 airlines and accepted by more than 200 carriers around the world. As part of its global network, Air Travel Card owns and licenses brands AirPlus (Europe) and PassAge (Asia) that provide value-added benefits to travelers.



The first ATM deployed in a church recently went on-line to facilitate electronic donations. The Unity Church of Christ in Chapel Hill, NC is leasing an ATM for a six month pilot. According to the AP, it is common for major churches to accept donations via credit cards, which are usually processed manually. The church indicated that the newly installed ATM is adding about $100 to the collection plate each Sunday.


Pathways Expands Board

The Pathways Group, Inc. reported that its Board of Directors has convened a meeting in which a corporate resolution was passed to expand the number of directors serving the board.  The resolution authorized the appointment of two new outside directors which expands the total board to five members.

The first addition, Monte P. Strohl, is currently the president of MS Digital.  Mr. Strohl founded MS Digital in 1994 and has acted as the president and CEO since that time.  MS Digital is a company specializing primarily in corporate communication and cable broadcasting.  MS Digital provides hardware and software solutions to companies wishing to communicate over cable TV (public or internal) or intranets.  MS Digital’s client’s include universities, municipalities and Fortune 500 companies.  Before founding MS Digital, Mr. Strohl worked as VP of Sales for OMNI International, which sold video production solutions internationally.

Mr. Strohl is one of the original founders of Pathways International, Ltd., the core company of The Pathways Group, Inc., and a major contributor to the corporate vision.

The second addition, Linda Wing, teaches Strategic Management at Metro State University/Minneapolis Campus.  Mrs. Wing has an MBA from the University of St. Thomas and several undergraduate degrees from Mankato State University in Finance and Industrial Relations.  She has recently enrolled with both the Adler Institute of Minnesota and the Jung Association of Minnesota, studying both group and individual psychology.  She is preparing for her Ph.D. in Organizational Development with the Fielding Institute in Santa Barbara.

Carey Daly, Chairman of the board of Pathways was quoted as saying, “These additions to our board will only further strengthen the team of professionals who will guide our company into the next century as a leader in the transaction processing field.”

The Pathways Group, Inc. provides clients with innovative and unique solutions for securely creating, capturing and processing data and electronic transactions using custom application software and hardware systems. The company was established in 1987 by Carey Daly and has evolved into a leader in the development of custom software and hardware for electronic banking, data and transaction processing, and smart card applications.  Pathways creation of proprietary “back room” systems allows for the capture and processing of data and transfer of funds via “ACH” protocol, the standard used in the banking industry for transfer of funds in retail, medical and institutional environments.


Equifax Increases Spanish Ownership

Equifax today announced it is extending its investment and commitment to the pan-European information market by acquiring the majority shareholding of its Spanish operation, ASNEF-Equifax.

The company has increased its ownership to 58 percent, resulting in consolidated revenues of approximately $35 mi1lion on an annualized basis.

This latest investment has been made by Equifax to enable a greater commitment to the provision of information solutions for profitable business decision-making throughout Spain and Portugal. It also marks the next stage of Equifax’s plans to extend its services throughout Europe.

Thomas F. Chapman, Equifax president and CEO, said, “Equifax is committed to facilitating commerce by extending our knowledge-based information solutions throughout Europe. This latest investment demonstrates our continuing commitment to growth and innovation worldwide.”

Equifax entered Spain in 1994 when it joined the Spanish association of banks and finance companies – Asociation Nacional de Entidades de Financiacion (ASNEF) – to establish a joint venture to provide consumer financial information. In 1995 the company created Portuguese consumer credit information business, CREDINFORMACOES and in July 1997, the Spanish commercial information company, INCRESA, was acquired to complement Equifax’s commercial information services for Spain and Portugal.

Serving the financial services, motor finance, retail and communications markets as well as general business and industry, ASNEF-Equifax manages information on more than 38 million individuals in Iberia, as well as providing sophisticated tools for effective consumer risk management, to support profitable consumer lending. Its business information services, featuring performance data on more than half a million Spanish companies, support the selection of the right customers and suppliers in the business-to- business market. ASNEF-Equifax also provides analytical expertise and data resources for consumer and business-to-business marketing in both countries.

Nick Bevan, executive vice president and group executive of Equifax Europe, said, “Our investment in ASNEF-Equifax provides us with the facility to develop new services and solutions on the Iberian peninsula, enabling our customers to enhance their performance and profitability.”

Managing Director Miguel Rueda remains at the head of the ASNEF-Equifax organization. The ASNEF organization, comprised of Spain’s leading banks and finance houses, however, retains control of its members’ own data, in order to sustain the principles of reciprocal information sharing which have been at the heart of its operation since its founding. ASNEF will also continue to play a significant and integral role in the development of Equifax’s services.

Equifax’s worldwide knowledge-based information, transaction processing, consulting and software businesses are designed to bring buyers and sellers together, thus changing the shape of global commerce. Equifax serves the banking, financial, retail, credit card, automotive, telecommunications/utilities, government and health care industries. It is a leading supplier of business information solutions in Canada, the UK and Latin America. Equifax operates in 17 countries with sales in 42 countries. Founded in 1899 in Atlanta, GA, Equifax today has 10,000 employees around the world. Revenues for the 12 months ended March 31, 1998, were more than $1.4 billion. Visit the company’s Internet web site at .


Magic Line Names CTO

John G. Bascom, president and chief executive officer of Magic Line, Inc., the Midwest’s largest electronic funds transfer (EFT) network, names Dearborn, MI-resident William McGonigal to the new position of chief technology officer. As a member of the executive management team, he will be responsible for all computer systems and related operational delivery, including the ML Link platform owned and operated by Magic Line.

Magic Line has recently developed advanced new technology based on ACI BASE24 software, Tandem Himalaya K2000 hardware and Tandem CS150 client-server technology. Dave Lind, who led the new technology development, will be entering his long-planned retirement from Magic line on July 1, 1998. McGonigal will be assuming the technical and operations responsibilities previously handled by Lind.

Prior to joining Magic Line, McGonigal was director of information systems and electronic banking at Banc One Service Corporation, where he managed the Tandem BASE24 Platform, as well as retail software applications design, development, integration and support for ATM, POS, credit card processing and online support monitoring. Before Banc One, he was head of customer systems at Barnett Technologies, responsible for retail and commercial distributed processing, including all ATM-related activities. Prior to that, McGonigal was with Tandem Corporation.

“We are fortunate to have an executive of Bill’s caliber joining Magic Line. The depth of his more than 20 years of management experience includes 13 years of EFT systems and technology management and service on the board of directors of ACI/BASE24 Users group since 1991. He is a tremendous enhancement to our management team,” said Bascom. McGonigal graduated from Eastern Michigan University with a Bachelor’s degree in physics and math. He is a member of the U.S. Coast Guard Auxiliary, where he served as division chief on the national staff of the public affairs department as well as coordinated disaster recovery procedures for seven Midwestern states.

As one of the top regional EFT networks linked throughout the United States and globally, Magic Line supports 14.9 million cardholders with access to over 165,000 ATM, POS and remote banking terminals. The company offers: full-service ATM placement and management; ATM terminal driving with customized options; cardbase management and authorization services; online POS debit services with ML Pay, Maestro and Interlink; offline POS debit services with MasterMoney and Visa Check Card; remote banking/bill payment services; the Magic Line Mobile ATM; Internet Web Site development; marketing services; and the Magic Line PrePaid Calling card. Magic Line’s Internet Web Site address is .


Overdrive Cards

Unifleet, the vehicle management segment of the UK’s United Utilities, signed a contract Friday for more than 3,600 ‘Overdrive’ fuel cards. Under terms of the deal, the cards will be owned by Unifleet and will carry the ‘Overdrive’ symbol accepted at all ‘Overdrive’ merchant sites. The company said it made the decision not to use an oil company card on the basis of coverage. Although ‘Overdrive’s’ cost-per-card was not the lowest price, the deal was driven by additional valued-added services and the quality of reports, which came at no extra cost. Five companies competed for the contract.


IC Kids Card

UT-based IC One, IBM and Intellect launched a smart card program yesterday to help raise funds for schools and children’s hospitals.  The “IC Kids Card” program test pilot, utilizing the ‘Intellect 8515’ terminal, involves 35 retailers and several hundred cardholders in Cache County, Utah.  An additional 1700 ‘IC Kids Cards’ are now being distributed. The ‘IC Kids Card’ has a stored value and a loyalty purse application.  The stored value purse allows cardholders to load funds on the card, which can be used to make purchases at participating merchant locations. The loyalty purse holds value called ‘EduCents’, which the cardholder can use to pay for qualified educational expenses at participating schools.  Participating merchants contribute a pre-determined percentage of every purchase made when the ‘IC Kids Card’ is presented.  The Intellect terminal located in the merchant check-out lane tracks the amount of the purchase and calculates, using its embedded processor, the amount the merchant will contribute to the program.  For each purchase made using the ‘IC Kids Card’, a portion of the merchant contribution goes to the school(s) of the cardholder’s choice.  An additional portion of the contribution is reserved to benefit the cardholder, and can be redeemed for any qualified educational purpose.


EFTA Elects Two New Board Members

Steven M. Wright, chief operating officer and co-founder of Portland, Oregon-based Card Capture Services, Inc. (CCS), and Frank J. Wilem, Jr., executive vice president of Triton Systems, Inc., were elected to the board of directors of Herndon, Virginia-based Electronic Funds Transfer Association (EFTA) at its quarterly meeting June 17, announced Dr. Ernest Burdette, president of Triton Systems. CCS is the largest independent automated teller machine (ATM) provider in the U.S. and one of Triton’s largest distributors; Triton is the nation’s leading off-premise ATM manufacturer.

Off-premise ATMs increased a dramatic 31 percent in 1997; they now account for more than 40 percent of the 170,000 ATMs in the U.S.  According to Kurt Helwig, executive director of EFTA, the addition of Wright and Wilem to the board of directors reflects the increasing influence and importance of independent ATM owners and manufacturers in the industry.  “The independently- owned, off-site ATM industry will play a pivotal role in determining how the electronic payments business will develop,” said Helwig.  “Both Wilem and Wright spearheaded development of the off-premise ATM market.  Their expertise and experience will make them invaluable to the board.”

![][1]     CCS took a lead role in developing the National Independent ATM Services Association (NIASA), a forum for representing the independent ATM industry’s concerns.  NIASA merged with EFTA, the leading inter-industry association dedicated to the development of electronic banking and commerce, in March of this year to form an expanded trade association.  Wilem was previously president and Wright was a founding director of NIASA, now known as the Independent ATM Owners Council, an independent Council of EFTA.

Wright and Wilem will continue to represent the interests of independent ATM owners on the EFTA board.  Wright co-founded Card Capture Services with Jeffrey Jetton in 1993.  He was previously sales manager for Portland, Oregon- based Cardservice of Portland.  Prior to that, Wright held senior management positions with the U.S. Bank of Oregon.  “EFTA members and the independently owned ATM industry share a common vision of meeting consumer demand for additional and more convenient access to cash.  We will work to ensure that it is done responsibly,” said Wright.

Wilem, a co-founder of Triton Systems, has served as executive vice president and director of the company since 1979.  Prior to founding the company, Wilem was engineering manager at Computer Sciences Corporation. According to Wilem, his primary role on the EFTA board will be to represent the interests of Independent Sales Organizations (ISOs) with regard to electronic funds transfer issues in the off-premise market.  “Our experience as the largest manufacturer of ATMs for the off-premise market gives us a deep understanding of how vendors, financial institutions and government agencies can work together to meet the challenges of this rapidly growing industry segment,” Wilem said.

About Triton Systems

Triton Systems is the nation’s leading manufacturer of cash-dispensing ATMs for off-premise locations, the fastest growing segment of the ATM market. As one of the “Big Three” manufacturers of ATMs and ATM management software, it was named the 30th fastest growing company in the U.S. by Inc. Magazine in its October, 1997 “Inc. 500” ranking of privately-held companies.

Triton’s product line includes the 9600 series cash-dispensing ATMs, Triton Connect Software Package for accessing and controlling ATMs from a centralized location, ATMjr Demonstrators and Card Activation System for financial institutions, miniATM Scrip Terminal, and the new VendMate sidecar, which accepts cash and dispenses vending items such as tickets, certificates, and phone cards.

Triton ATMs are in use in over 17,000 locations in the U.S., with recent expansion occurring or planned throughout the world.  The company is headquartered in Long Beach, Mississippi.  For more information, visit the Triton Systems website at [][2] or contact Mary Edith Dressel,, 800-367-7191.

About Card Capture Services

Card Capture Services, Inc. (CCS) was incorporated in 1993 in Portland, Oregon.  CCS offers turnkey ATM programs providing transaction processing, machine maintenance, customer service, accounting and reporting to a growing base of merchant owned and operated Automated Teller Machines (ATMs) nationwide.  By tapping non-traditional and unsaturated markets, CCS is leading the wave of independent ATM deployments nationally.  The company has 50 employees and a nationwide network of 30 independently contracted dealers.

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