BofA Card Bonds Rated

BA Master Credit Card Trust’s $648.75 million class A floating-rate asset backed certificates, series 1998-B, are expected to be rated ‘AAA’ by Fitch IBCA.  In addition, the corresponding $41.25 million class B floating-rate certificates are expected be rated ‘A’.

The certificates are backed by a pool of credit card receivables generated under Bank of America MasterCard and Visa accounts.  Fitch IBCA’s expected ratings are based on the high quality of the collateral pool, available credit enhancement, Bank of America’s servicing expertise, and the sound legal and cash flow structures.

Credit enhancement totaling 13.5% of the initial invested amount will be available to class A certificateholders through subordination of class B, equal to 5.5% of the total invested amount, and the collateral interest. Class B’s 8.0% credit enhancement stems from subordination of the $60 million collateral interest (CIA).  The CIA is a privately placed, uncertificated ownership interest in the trust subordinate in payment rights to classes A and B.

Several economic and credit stress scenarios were devised by Fitch IBCA to determine appropriate credit enhancement levels. The scenarios simultaneously stress yield, chargeoff, and monthly payment rate steady state assumptions. In addition, to address the interest rate risk associated with uncapped floating-rate coupons, the coupon is stressed to worst case London Interbank Offered Rate (LIBOR) levels without a 1:1 adjustment to yield.

Under the available enhancement, class A withstands a 35% decrease in yield, a 45% decline in payment rates and chargeoffs increasing to 30% and still makes full and timely payments of investor principal and interest. Class B sustains a 25% decrease in yield, a 35% decline in payment rates and chargeoffs increasing to more than 20% without suffering a principal or interest loss.

Early amortization events protect certificateholders from prolonged exposure to deterioration in portfolio performance and/or a transferor/servicer default.  Occurrence of an amortization event will trigger a rapid payout of principal and investors may be repaid earlier or, in rare circumstances, later than expected.

Series 1998-B is structured with a revolving period, during which class A and class B investors receive monthly interest payments of one-month LIBOR plus 0.12% and 0.28%, respectively. During the revolving period, principal collections are used to purchase new receivables.  Following the revolving period, investors continue receiving monthly interest payments as principal collections are accumulated for distribution in one payment on the expected maturity date.  Bank of America may vary the accumulation period length, based on certain conditions, but must maintain it at least a minimum of one month. Principal and a final interest payment is expected to be distributed to class A investors in one payment on the May 2004 distribution date, followed by a single principal distribution to class B investors, expected in June 2004.

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UbiQlink & EPISUITE Integrate

UbiQ Inc. announced today its UbiQlink software is being integrated with G&A Imaging’s EPISUITE, the premier badging and database maintenance software suite in the worldwide card printing industry.

“We are delighted to have a leading supplier like G&A Imaging integrate our UbiQlink software into their widely used product,” said David Tushie, president of UbiQ Inc. “This combination will mean faster, more cost-effective production of personalized photo smart cards for issuers all over the world.”

“G&A Imaging’s products reflect our unique understanding of digital imaging and security software development, to meet the diverse needs of the international marketplace,” said Ray St-Maurice, President of G&A Imaging. “We create affordable, high-quality products for the mainstream and professional markets, recognized for their value and reliability. Integrating UbiQ’s software into EPISUITE fits with this tradition.”

UbiQlink software (patent pending) simplifies the process of personalizing smart cards. Each card must be unique to the individual to whom it is issued. The software integrates what until now has been a complex, time-intensive, cumbersome process for card issuers. UbiQlink allows card issuers to personalize large quantities of smart cards at significantly higher throughputs and even greater security using various card personalization equipment.

Uniquely designed to support all smart card operating and application systems, UbiQlink provides a universal front-end to the computerized equipment that performs the smart card initialization and personalization process in card issuance systems. It is compatible with all types and models of smart cards and personalization equipment, from manufacturers worldwide. G&A Imaging’s flagship product, EPISUITE for Windows, is a comprehensive badging suite for the Microsoft Windows environment. EPISUITE allows users to design and print their own badges based on information and images maintained in a shared security management database. EPISUITE software is installed throughout the world at locations such as financial institutions, colleges, manufacturing plants, government complexes, airports, and sport stadiums.

About G&A Imaging Ltd.

Founded in 1988, G&A Imaging offers dynamic and innovative digital image management solutions to clients that range from home computer users to multinational corporations. G&A Imaging’s internationally recognized EPISUITE and PhotoRecall software lines reflect the company’s commitment to quality and excellence in product development. G&A Imaging’s clients include IBM France, Toronto Skydome, Deutsche Bank, BASF, Mercedes Benz and the Bank of Canada. G&A Imaging is headquartered in Hull, Canada and has offices in the U.S., Singapore, and Germany.

About UbiQ:

UbiQ Inc. is a privately held software firm that has developed proprietary, patent-pending technology for high-volume smart card personalization. It was founded in 1994 and is based in suburban Minneapolis, Minnesota. (The company’s name is short for “ubiquitous,” a reference to the rapid proliferation of smart cards worldwide.) UbiQ’s mission is to be the highest value integrator in the smart card issuance process, reducing the time and cost necessary for secure, faultless “mass” card issuance. The company’s worldwide customers include smart card issuers such as American Express and member institutions of the Visa, Mastercard, and Mondex networks. It has relationships with card service bureaus, smart card manufacturers, and card personalization and printing equipment manufacturers. Markets or applications targeted by UbiQ include electronic commerce, Internet, travel and entertainment, stored-value cards, pay phone, digital wireless and GSM, national ID cards, and healthcare.

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MasterCard Coke Cards

Beginning this month MasterCard is offering consumers a chance to win one of more than 2.2 million ‘Coca-Cola ATM MasterCard Cards’ with cash values of $20, $40 and $100. This is the second year MasterCard has joined Coca-Cola’s annual summer promotion. The ATM cards will be randomly inserted in more than 1.5 billion packages of Coke. Instant win messages will also appear on fountain cups and under the caps of large bottles of Coke. Winning cards can be redeemed at any MasterCard/Cirrus ATM. The MasterCard Coca-Cola card is a key component of ‘The Coca-Cola Card’ summer promotion announced in mid-March. The ‘Coca-Cola Card’ gives consumers more than 20,000 local discount offers from over 9,500 partners.

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Fast Food ATM Scrip

SIMS Communications Inc. announced Friday it has established a product sales division to market its ATM services and scrip terminals to fast food chains and convenience stores. The firm indicated the market’s response to ‘SIMS’ ATM’ scrip offerings has been strong with more than 500 orders, including those from outlets for McDonalds, KFC, Burger King,  Subway and Arby’s. A customer simply swipes his/her ATM card through a SIMS countertop scrip machine, enters an amount and receives a voucher. This voucher is then used to make a purchase and to receive cash back. The company also announced Friday it has appointed Jeffrey McKay as president of its ATM Scrip Services Division. McKay formerly was president of U.S. Cash Exchange.

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NDC Finishes CheckRite Purchase

National Data Corporation announced today that it has finalized its purchase of the assets of Data Broadcasting Corporation’s check services business, CheckRite.

On February 13, NDC and DBCC signed a definitive agreement under which NDC agreed to acquire substantially all the assets of CheckRite. The acquisition reinforces NDC’s leadership position in providing a wide array of check services.

CheckRite, based in Salt Lake City, is a leading provider of check services. Its operations serve approximately 35,000 merchants, primarily in Western and Midwestern markets throughout the United States.

“CheckRite becomes a key element in our full range of payment services and product offerings,” said Tom Dunn, NDC’s general manager of Integrated Payment Systems. “It greatly expands our presence and our geographic reach in a business that continues to show significant growth.”

The CheckRite business will operate within NDC’s Integrated Payment Systems line of business and continue to be based in Salt Lake City.

National Data Corporation is a leading provider of payment systems solutions and health information services that add value to its customers’ operations.

When used in this report, press releases and elsewhere by management of National Data Corporation, from time to time, the words “believes,” “anticipates,” “expects” and similar expressions are intended to identify forward-looking statements concerning the Company’s operations, economic performance and financial condition, including in particular, the likelihood of the Company’s success in developing and expanding its business. These statements are based on a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company, and reflect future business decisions which are subject to change. A variety of factors could cause actual results to differ materially from those anticipated in the Company’s forward-looking statements, some of which include competition in the market for the Company’s services, continued expansion of the Company’s product and service offerings and other risk factors that are discussed from time to time in the Company’s Securities and Exchange Commission (“SEC”) reports and other filings. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date hereof. The Company undertakes no obligations to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or thereof, as the case may be, or to reflect the occurrence of unanticipated events.

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Dial-Up ATM Products

WA-based TransAlliance announced this morning the immediate availability of dial-up ATM communications support. The company says its dial-up product offering not only supports dial-up ATMs, such as Diebold’s ‘CashSource Plus’ but will also allow clients to deploy traditional leased-line terminals using dial-up technology. TransAlliance offers a full range of terminal management services.

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PO Cards Upgraded

The U.S. Postal Services’ ‘FirstClass PhoneCard’ has been upgraded to include conference calling, voice mail, and FAX mail box services. The new line of calling cards will also feature postage stamp art. SmarTalk Teleservices produced the new cards that also feature lower rates and expanded customer service. The cards went on sale this week at 14,000 postal retail and vending locations nationwide.

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Siemens Promotion

Siemens Microelectronics, Inc. has named Joerg Borchert vice president of the company’s Security and Chip Card IC group.

In his new position, Borchert will take responsibility for Siemens’ fast growing chip card business in the United States, Canada and Mexico.

“The United States is ground zero for an explosion in the use of smart card technology over the next few years,” Borchert explained. “Growth will be driven by several factors, including a need for secure access, secure payment and other electronic commerce transactions. One of the key technologies fueling that growth is the ability to put multiple functions — such as debit, credit, cash purse and secure ATM access — all on a single bank card.”

According to Borchert, Siemens believes that the chip card business worldwide will more than double in size over the next three years, to a value of $2.8 billion by the year 2001.

In 1997, Siemens shipped more than 500 million smart card chips, making it one of the world’s leading vendors of chip card ICs. Smart cards are already a major market in Europe and Asia, where they are commonly used in banking, transportation, government, health care and other applications. In North America, however, magnetic strip cards continue to dominate the business, and sales of microprocessor based smart cards are just beginning to take off.

Siemens manufactures ICs for a range of card markets including:

security access cards; memory cards; smart cards; multimedia cards; and stand-alone serial EEPROMs.

Borchert joined Siemens in 1986 and initially served as staff to Siemens’ Corporate Board of Directors handling mergers and acquisitions. In 1992, he joined Siemens Semiconductors in sales, and in 1994 he was given responsibility for smart card ICs for worldwide banking and credit card projects. In 1996, Borchert was named worldwide marketing director for chip card ICs.

A native of Hamburg, Germany, Borchert studied Mechanical Engineering and Business Administration at the Technical University of Darmstadt, Germany from 1978 to 1984. He received a Ph.D. in Economics from that university in 1988.

In his spare time, Borchert enjoys competition sailing, skiing and mountain climbing.

About Siemens Microelectronics

Siemens Microelectronics, Inc. (SMI), based in Cupertino, develops and manufactures semiconductors, optoelectronics and passive components for the communications, automotive and computer peripherals industries. SMI offers one of the broadest product portfolios in the microelectronics industry, and is a market leader in communications ICs, smart power products, embedded DRAM technology and custom optoelectronics. A subsidiary of Siemens Corporation, NY, SMI is affiliated with Siemens AG Semiconductor Group and Passive Components Group, Munich, Germany.

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Card Award

The 1998 Outstanding Smart Card Application Award was awarded this week to the Seoul Bus Association for their bus card system. The contactless automatic fare collection system for the Seoul, Korea bus system was started in March 1996 and now has 8,700 smart card terminal-equipped busses from 90 bus companies. There are also more than 2,000 recharging units and 5 million cards in circulation. The system processes 3 million transactions per day and provides 80,000 daily recharges. The system is the first fully-implemented large-scale contactless and automatic fare collection system.

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Charge In

The fifth largest hamburger chain the U.S. is now taking credit cards following agreements signed with Paymentech. Oklahoma City-based Sonic Corp. will now accept credit cards at more than 300 company-owned Sonic Drive-Ins. Paymentech, a major merchant acquirer for restaurants, will also market its payment solutions to an additional 1,400 Sonic franchised locations nationwide. Sonic becomes the first franchised burger chain to launch a corporate-level credit card acceptance program.

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New SCIA Board

The Smart Card Industry Association (SCIA) announced last night at its Annual Member Meeting the election of three new members and six returning members to its Board of Directors for 1998.

“This Board illustrates the growth of SCIA over the last year,” said Dan Cunningham, SCIA president and CEO.  “The six returning members reflect an appreciation for the work that’s been done in advancing SCIA and its initiatives this past year-new members add experience and expertise that will allow us to continue to flourish in the coming years.”

New Directors are:

R. Kirk Brafford, program manager, Giesecke & Devrient America, Inc.

Bruce Caswell, manager North America, IBM Global Smart Card Solutions.

Bill Norwood, vice president of New Business Development for CyberMark.

Returning Directors are:

Jonathan Adams, marketing director, Smart Cards, North America, Schlumberger Smart Cards and Systems.

Charles Cagliostro, director, Strategic Alliances and Closed Systems, Gemplus Corporation in North America.

Gerald Hubbard, vice president of marketing, Bull Worldwide Information Systems, Personal Transaction Systems.

Jim Lout, president and CEO, Precis Smart Card Systems, Inc.

Benjamin L. Miller, founder and chairman, the CardTech/SecurTech (CTST) Conference.

Peter Quadagno, president, Quadagno & Associates, Inc.

The Board of Directors was elected by a general membership vote; the Board was to elect its new officers at its first meeting, April 27 at CardTech/SecurTech ’98. SCIA is a global trade association active in the smart card industry which strives to stimulate the adoption, use, understanding and innovation of smart card technology in the marketplace.  SCIA is also co-founder and a sponsor of CardTech/SecurTech, the leading advanced card and security technology conference. For more information, contact SCIA at 191 Clarksville Road, Lawrenceville, NJ 08648; tel: (800) 848-7242 or (609) 799-5654; fax: (609) 799-7032; or access SCIA’s web site at [www.scia.org][1].

[1]: http://www.scia.org

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