Maestro Names Board Chairman

Maestro International, a joint venture of MasterCard International and Europay International, today announced the election of Dr. Paul Ribourdouille as Chairman of the Maestro International Board of Directors.

Maestro International delivers to banks around the world an acceptance mark that offers to customers of those banks, global access to their deposits at ATMs and at the point of sale. All such transactions can take place under full control of the card issuing bank.

Dr. Ribourdouille was until recently a member of the Managing Board of ABN/AMRO Bank. During most of his career he had primary responsibility for Information Technology and Payment Systems.

Dr. Ribourdouille brings 22 years of banking experience to Maestro International. He established a prominent reputation as a pioneer in the introduction of chip technology and electronic cash in the payments industry in the Netherlands, where he chaired all major banking ventures in the field of payment systems. Prior to launching his successful career in financial services, Ribourdouille held senior management posts at a large European clothing retailer and at Phillips Electronics.

Dr. Ribourdouille is a five year veteran of the Board of Directors of MasterCard International. He also has been a member of the Europay International Board of Directors since 1992.

Maestro is the leading global, on-line debit brand, with more financial institutions, merchants, cards and acceptance locations in more countries than any other debit program in the world. “We will benefit from the vision, experience, and commitment that Dr. Ribourdouille brings to this key position at this critical time in the evolution of Maestro International. The active involvement of the new Chairman of the Board should lead to positive bottom-line results for Maestro International and its members globally,” says Francis van den Bosch, CEO, Maestro International.

Developed jointly by MasterCard International and Europay International, Maestro was introduced to offer cardholders an electronic payment alternative that provides access to cash and checks. The Maestro acceptance mark now has been expanded to the ATM to provide consumers with a single global point-of-sale and ATM brand. This means that the more than 375,000 ATM’s currently accepting MasterCard and Cirrus cards will now be able to accept Maestro cards. Maestro already has over 150 million debit cards worldwide and is accepted for purchases at over 2.5 million merchant terminals in over 60 countries and territories on 6 continents.

MasterCard International has the most comprehensive portfolio of payment brands in the world. With 23,000 member financial institutions, serving consumers in 220 countries and territories, MasterCard is the industry leader in quality and innovation. More than 600 million MasterCard, Maestro, Cirrus and Mondex cards are accepted at more than 15 million locations worldwide. In 1997, gross dollar volume exceeded $600 billion. MasterCard can be reached through its World Wide Web site at [][1]



American Banknote Takes Sub Public

American Banknote Corporation announced the registration of an initial public offering of its wholly owned subsidiary, American Bank Note Holographics.  American Banknote Corporation expects to raise more than $120 million from the offering, which it plans to use to retire its senior secured debt.

American Banknote is also considering raising money in the public markets via its Australian subsidiary, Leigh-Mardon, by selling part of the company to the public, later in the year in Australia.  Likewise, the Company is exploring a variety of strategies to raise capital through its 77-1/2% owned Brazilian subsidiary in order to fund its continued growth. Discussions are underway with its minority owner, Banco Bradesco, as well as other financial institutions.

Morris Weissman, Chairman and Chief Executive Officer, in commenting on these initiatives stated:  “As previously indicated, we intend to de-leverage and are taking the necessary steps to insure the success of this program.  In addition, we hope to raise capital for our subsidiaries so that they can continue to grow, unencumbered by the burden of heavy corporate debt.”

Weissman concluded:  “Our most important goal in 1998 is to enhance shareholder value.  We hope to prove to the market that the inherent values of our underlying operating subsidiaries, not apparent when evaluating American Banknote on the basis of traditional consolidated earnings per share, are indeed significant.”

American Banknote Corporation is a leading global full-service provider of secure transaction solutions in carefully selected markets along three major product groups: Transaction Cards & Systems, Printing Services & Document Management, and Security Printing Solutions.  A combined strategy of operating along product lines and constant expansion of transaction activities worldwide reflects the rapidly changing field of electronic commerce.


No-ATM-Fee Alliance Stands

The ‘No Surcharge Alliance’ formed by several California banks may have lost one partner but remains solid as Sanwa Bank California renewed its commitment Tuesday not to levy surcharges on noncustomers who use any of its 109 ATMs. Sanwa and its alliance partners together now offer more than 2,500 ATMs throughout California where consumers can withdraw cash without having to pay an extra fee. Although at least one of the original alliance partners, Glendale Federal Bank, has since dropped out of the group after deciding to impose the surcharge, the alliance has grown over the past year, with many midsized and smaller community banks joining the campaign.


Superior Bankcard Triples Space

In a move to support their rapid expansion, Superior Bankcard Service of Golden Gate, the leading ISO for Superior Bankcard Service, one of the leading processors on the west coast, is moving to a larger facility in Mission Hills(suburb of Los Angeles), which will more than triple their existing space, announced Bill Graham, Regional Manager, Superior, and President, Single Source Electronic Transactions(SSET), a single source vendor of all electronic transactions at the point of sale. The new building will house both companies’ sales and marketing staff, while the corporate offices and data center for all credit card transactions will remain in Woodland Hills.

“This expansion is a direct result of an increased demand by retail merchants, chain stores, and new businesses for low-cost, accurate processing of consumer credit and debit transactions,” explained Graham. With over a billion dollars in processed funds since its inception four years ago, Superior Bankcard Service has grown over 306%, according to ban trade surveys.

The alliance between Superior Bankcard service of Golden Gate and SSET offers merchants a full range of state-of-the-art electronic payment options. One of SSET’s newest products, Check Truncation, is a process of converting account information from a consumer’s check, along with a transaction value, into an electronic payment deposited directly into the merchant’s account, thereby eliminating most manual handling of paper checks and significantly reducing costs associated with verification and processing.

SSET also markets free-standing, off-premise cash-dispensing automated teller machines (ATMs)and, with its newest division that designs and develops Web pages/sites, they are now one of the largest single source vendors in the United States. Their new address is:

15545 Devonshire Street, Suite 200
Mission Hills, CA 91345

TEL-818/891-1665 or 800/341-4412


The Casino Quest

Wells Fargo’s wholesale bank formed a joint venture with Mr. Payroll Corp. on Tuesday to develop and distribute a new generation of financial services vending machines targeting the gaming industry. The joint venture, InnoVisions, Inc, will be based in Las Vegas.  Assets of the joint venture consist in part of the approximately 200 ATMs Wells Fargo now operates in gaming establishments. The financial services vending machine, to be known as the ‘Quest’ machine, will initially be tested in up to 10 casinos in Nevada.  Quest will integrate various cash sources into a single device and will have the ability to perform a variety of financial transactions without a picture I.D., ATM card or credit card.  Customers’ identities will be verified using TrueFace Engine, a patented face recognition system licensed exclusively to Mr. Payroll by Miros, Inc. Quest also will incorporate a second video display monitor on which informational and promotional messages will be displayed.


Stopping Identity Theft

Arizona State Representative Tom Smith says identity theft is a much larger problem than the credit industry may realize or acknowledge, and the only way to protect consumers and lenders from the fastest growing type of credit card fraud is to raise the seriousness of the crime from a misdemeanor to a felony. Smith, who authored Arizona’s tough identity theft law,  said that since Arizona’s law took effect in July 1996, prosecutors have had great success in bringing identity thieves to justice. He indicated in the first four months of this year more than 76% of  identity theft cases investigated in the greater Phoenix area alone have resulted in charges being filed. Statistics from the Phoenix area show 105 identity thieves have either been convicted or pleaded guilty since the law took effect nearly two years ago.. One thief prosecuted in Arizona was so adept at stealing others’ identities that he was in possession of 47 credit cards, each bearing a different person’s name, when he was apprehended.


BAMS Revenue Up 27%

BA Merchant Services, Inc. reported first quarter net income of $8.7 million, compared to net income of $7.7 million for the first quarter of 1997.

Earnings per share of $.18 for the first quarter of 1998 increased 13 percent over pro forma earnings per share of $.16 per share for the comparable quarter in 1997. The operating results for the first quarter of 1997 include the historical results of operations for the Thailand, Philippines and Taiwan merchant processing businesses acquired from BankAmerica Corporation in the second and third quarters of 1997.

Net revenue of $41.8 million on sales volume processed of $9.1 billion for the first three months of 1998 increased 16 percent and 27 percent, respectively, over net revenue of $36.0 million on sales volume processed of $7.2 billion for the same period in 1997.

“We have generated strong growth in sales volume and transactions processed over the past year principally by expanding our direct sales efforts,” said Sharif Bayyari, president and chief executive officer of BAMS. “We look forward to continuing this strategy in cooperation with the new BankAmerica Corporation.”

The company’s net income from domestic operations in the first quarter of 1998 increased 18 percent over the comparable quarter in 1997. Domestically, net revenue in the first quarter of 1998 increased 21 percent over the comparable period in 1997 on an increase in sales volume processed of 28 percent. First quarter 1998 net income from the company’s Asian operations decreased 66 percent from first quarter 1997, reflecting both increased competition and the area’s economic turmoil.

Total operating expense for the first quarter of 1998 increased $4.8 million or 19 percent over the first quarter of 1997. The increase was primarily attributable to: (1) a 21 percent increase in data processing and communications expense principally due to increased third party data processing services related to growth in transaction volume; (2) a 17 percent increase in salaries and employee benefits mostly due to sales staff growth and; (3) a 56 percent increase in depreciation expense due to the acquisition of merchant processing terminals required for the company’s expanded merchant base and the impact of the HostLINK transaction processing system installed during the second quarter of 1997.

BAMS provides an array of payment processing and related information products and services to merchants who accept credit, charge, and debit cards as payment for goods and services. BAMS is the exclusive provider of merchant processing services for Bank of America. According to industry sources, BAMS is the fourth largest processor of merchant credit transactions and one of the largest processors of debit card transactions in the United States.

                      BA MERCHANT SERVICES, INC.
                         FINANCIAL HIGHLIGHTS

                                Table 1
           Quarterly Summary of Results and Statistical Data

                                                Three Months Ended
                                                     March 31,               
                                                 1998       1997(1)
   ($ in 000’s, except per share data)
1. Net revenue                                 $ 41,834    $ 35,969
2. Income from operations                      $ 12,724    $ 11,609
3. Net income                                  $  8,699    $  7,705
4. Operating margin(2)                             30.4%       32.3%
5. Diluted earnings per share(3)               $    .18         N/A
6. Pro forma diluted earnings per share(1,3)        N/A    $    .16

7. Total transactions processed
      (amounts in 000’s)                        154,987     107,016

8. Total sales volume processed
      ($ in millions)                          $  9,116    $  7,205

N/A  Not applicable

1    Results for the quarter ended March 31, 1997 include the
     historical results of operations for the Thailand, Philippines
     and Taiwan merchant processing businesses acquired from
     BankAmerica Corporation. The acquisition of these entities has
     been accounted for as a reorganization of entities under common

2    Pre-tax income from operations as a percent of net revenue.

                                               Three Months Ended
                                                     March 31,
3    (amounts in 000’s)                          1998   1997 Pro forma
     Weighted average number of common
      shares outstanding                         48,660    46,636
     Weighted average number of common shares
      and common stock equivalents outstanding   48,802    48,700

    Basic earnings per share amounts are the same as reported diluted
     earnings per share amounts.

                      BA MERCHANT SERVICES, INC.

                                Table 2
                        Statement of Operations

                              Three Months Ended
                                   March 31,     Increase/(Decrease)
                                1998       1997     Amount    Percent
   ($ in 000’s)
1. Net revenue                 $41,834   $35,969   $ 5,865        16%

   Operating expense:
2. Data processing and
    communications               9,249     7,668     1,581        21%
3. Salaries and
    employee benefits            9,451     8,059     1,392        17%
4. General and administrative    5,667     5,492       175         3%
5. Depreciation                  3,549     2,281     1,268        56%
6. Occupancy                       750       747         3         0%
7. Amortization of intangibles     444       113       331       293%

8.   Total operating expense    29,110    24,360     4,750        19%

9. Income from operations       12,724    11,609     1,115        10%

10. Net interest income          2,020     1,524       496        33%

11.  Income before income
      taxes                     14,744    13,133     1,611        12%

12.Provision for income taxes    6,045     5,428       617        11%

13.  Net income                $ 8,699   $ 7,705   $   994        13%

                      BA MERCHANT SERVICES, INC.

                                Table 3
                             Balance Sheet

                                             March 31,    December 31,
      ($ in 000’s)                              1998          1997
    Current assets:                 
1.    Cash and cash equivalents             $ 68,874        $ 29,426
2.    Short-term investments                  53,785          64,018
3.    Drafts in transit                      107,604         110,445
4.    Accounts receivable                     58,061          63,461
5.    Other current assets                     7,754          11,533
6.      Total current assets                 296,078         278,883
7.  Property and equipment, net               28,250          27,762
8.  Other assets                              19,556          25,422

9.      Total assets                        $343,884        $332,067


    Current liabilities:
10.   Accounts payable                         $ 277            $ 32
11.   Merchants payable                        8,757           8,058
12.   Accrued liabilities                      6,969           6,050
13.   Accrued credit card association and
       interchange fees                        8,823           9,192
14.   Income taxes payable                     7,434           3,459
15.   Other current liabilities               10,786          13,207
16.     Total current liabilities             43,046          39,998
17. Other liabilities                            858             816
18.     Total liabilities                     43,904          40,814

    Stockholders’ equity:
19. Common stock                                 486             486
20. Additional paid-in capital               252,576         252,479
21. Retained earnings                         46,979          38,280
22. Accumulated foreign
     currency translation adjustments           (61)               8
23.     Total stockholders’ equity           299,980         291,253
24.     Total liabilities &
          stockholders’ equity              $343,884        $332,067



The Association of Packagers and Carriers has selected NOVA Information Systems as its recommended provider of credit card and debit card processing for APAC members throughout the U.S.. NOVA will process and settle POS transactions for participating APAC member associates. Current credit card transaction volume for APAC members is in excess of $250 million per year. APAC members will also receive such services as SCAN check verification, free check collection, on-line debit card acceptance, ‘Auto-Close’ automatic daily batch settlement, and customization options for each establishment and terminal location.


Outsourced Certificate Authority

CyberGuard Corporation, a leading provider of network security and electronic commerce solutions, today at Networld + Interop announced the availability of TradeAuthority Version 3.0. This next-generation certificate authority outsource service enables organizations to become their own certificate authority for their employees and business partners in less than 48 hours.

“We needed to implement an in-house Certification Authority (CA) or Public Key Infrastructure (PKI) system and use digital certificates for a customer in Finland to migrate a lottery application to the web and use digital certificates,” noted Paul Anderson, director of MIS at SCA Promotions Inc., a Dallas-based event promotion company. “CyberGuard’s TradeAuthority solution enabled our customers to issue their own certificates over the web, which saved them thousands of dollars in communications costs and eliminated the need for relocating their back-end database from the U.S. to Finland.”

CyberGuard’s TradeAuthority service enables companies to manage their business processes on the web by utilizing a Local Registration Agent (LRA) for the task of managing electronic identities. With TradeAuthority, organizations register, approve, issue, deliver, administer and manage their own Entrust digital certificates online, and approve registrations and key status changes based on corporate policies and procedures.

TradeAuthority 3.0 supports a distributed liability model for digital certificates via this LRA. With this solution, organizations can remotely manage keys with a web interface and an LRA digital certificate. TradeAuthority supports all major web browsers and provides a graphical interface through which an LRA can administer their users’ certificates. The LRA can easily determine the current status of both existing and pending user certificates,  determine the user’s organization, and make necessary changes to the certificate status.

“Distributed liability is the critical factor in making a CA business- ready. Accepting the liability for one’s own employee is reasonable, but expecting that from any third party doesn’t’ work in the business world,” noted Tom Patterson, CyberGuard vice president of electronic commerce.

The new release of TradeAuthority allows the LRA to download information about their users from the CA database for use in other applications. It also lets users register and pay for certificates on-line by credit card. Additionally, certificate authority availability is improved with a new internal monitoring system that instantly notifies CyberGuard support staff of any equipment, network, or CA application  issues.

TradeAuthority is compatible with CyberGuard’s award-winning TradeVPI product suite, allowing use of digital certificates in web-based applications. TradeAuthority, in conjunction with TradeVPI, provides an immediate solution for organizations looking to securely migrate their legacy systems to the web.


TradeAuthority is immediately available and is priced at less than $9 per user, per month.      For additional product information, visit CyberGuard’s web site at [ or ][1]

About CyberGuard

CyberGuard Corporation is a leading provider of network security and electronic commerce solutions to Fortune 1000 companies and governments worldwide. CyberGuard’s award-winning, industrial-strength firewall and certificate authority products and services protect the integrity of data and applications from hackers and digital thieves. The US National Computer Security Center, the National Computer Security Association and the European Information Technology Security Evaluation Criteria have certified CyberGuard products.  The company has US headquarters in Ft. Lauderdale, Florida and branch offices worldwide. More information on CyberGuard Corporation can be found at .



MCI’s New E-Bill Service

MCI Systemhouse and NETdelivery Corp jointly announced Tuesday a strategic partnering agreement to provide secure Internet-based electronic billing and payment solutions to banks and other financial institutions and businesses. The solution leverages MCI Systemhouse’s systems integration and customer care capabilities, and NETdelivery’s Electronic Delivery Management software applications to enable financial institutions, banks and consumers to organize, manage and pay bills via the Internet. MCI estimates the total value of paper-based transactions last year to be $3 trillion, with the size of an average check from consumers and businesses pegged at approximately $170.


MobileMinutes Card

People in Pittsburgh can now get cellular service with no monthly bills, no monthly access fee, no credit checks, and no security deposit.  Bell Atlantic Mobile has introduced MobileMinutes, a pre-paid cellular calling card.

MobileMinutes cards are available for $25 or $50, and can be used for both local and long distance cellular calling.  Cards can be purchased individually and used with a customer’s existing equipment or may be bought in conjunction with a new or refurbished phone.

MobileMinutes customers will never receive monthly cellular bills and are not bound by long-term contracts.  It is a pay-as-you-go system, designed for people, seeking control over their cellular expenses.

“A MobileMinutes card is like a bank debit card that allows you to pay up- front and then reduce the balance as you use the service,” said Jerry Fountain, regional vice president for Bell Atlantic Mobile in Pittsburgh.

“We expect MobileMinutes to be popular for gift giving, for those who haven’t yet established credit, and for those who simply want the comfort and predictability of paying as they go,” Fountain said.  “This service is ideal for parents who want to give their college-bound children the security and convenience of a cellular phone, yet want to control the cost.”

At the beginning of each call, the customer is informed of the balance remaining on their account for that particular call.  They will receive a reminder tone when four minutes are left on the account, and each minute thereafter.  To buy additional MobileMinutes, customers can go into any Bell Atlantic Mobile Communications Store.  Customers can also call an 800 number and use their credit card to process payment on-line and update their MobileMinutes balance immediately.

There is a one-time activation fee of $15.  Each card is good for 60 days. When customers leave the Bell Atlantic Mobile Pittsburgh region, depending on the area visited, they may be able to place calls using their MobileMinutes card or a major credit card.


Romanian Card System

IFS International, Inc. The Romanian Bank for Development, headquartered in Bucharest, Romania and one of the largest banks in the country, has licensed the TPII product to manage its ATMs, POS devices, provide Voice Authorization and to produce international and domestic payment cards.

The systems integrator is Digital Equipment (Romania).  TPII will run on Digital Alpha Server 4100 “Tru Cluster” hardware and will provide a system to drive a network of devices accepting various types of payment cards, including Visa and Mastercard, that will grow to approximately 100 ATMs and 1000 POS terminals.  The value of the contract to IFS International exceeds $400,000.

Adrian Apolzan, the Chief of the Cards Department at RBD, stated “Our ambition is to be the largest payment card services provider in Romanian banking.  For this reason, we selected the system of Digital Equipment and IFS’ TPII product as this will provide a scaleable, reliable and fully functional solution, in line with the high status of the Romanian Bank for Development.”

Mihai Pascadi, Sales Manager, Banking and Finance, Digital Equipment, Romania commented “This project is consistent with our mission in Romania: to provide Romanian customers with state of the art fully integrated solutions to help them compete and win in their business.  Digital Romania has developed over the years a special relationship with IFS International not only due to their excellent products, but also to their proven capacity to deliver their promises.  This is the second major TPII project in Romania and we are happy to already see the signs that the project will be at least as successful as previously.”

Simon J. Theobald, Senior Vice President, IFS International added “IFS International is proud to be associated with another major Romanian bank and our worldwide partner Digital Equipment.  We look forward to assisting the Romanian Bank for Development in their ambition to become the largest payment card services provider in Romania.”

IFS International products are used to provide ATM, POS, smart card, debit card management, bank teller, bank platform, home banking and call center solutions to the financial industry.

IFS is headquartered in Troy, NY, with offices in the United Kingdom, Germany, Australia and Singapore.  For additional information in the U.S., call 518-283-7900, fax 518-283-7336, E-mail [][1], web page [][2]  For information about Europe, the Middle East or Africa, call +44-1895-823626 or E-mail [IFS-UK@IFSINTL.COM.][3]  For information about Asia call +65-97-393-474.

[3]: mailto:IFS-UK@IFSINTL.COM