Pinnacle to Asia-Pacific

Hypercom Corporation introduced the Pinnacle Internet Commerce (iCom) Transaction System to the Asia Pacific market. Pinnacle iCom is a comprehensive family of client/server payment and data transaction software solutions that bring consumers, merchants, financial processors and other institutions together in the virtual world of online transactions. Hypercom(R) is the world’s leading independent single source provider of innovative, high-performance and reliable point-of-sale (POS) terminals, enterprise networking equipment and client/server software for payment processing and data transaction solutions. Pinnacle iCom was launched in August, 1997.

Hypercom’s Pinnacle iCom Transaction System for secure and reliable online business consists of:

Pinnacle iCom Wallet: an electronic wallet that gives consumers simple and convenient online purchasing power. The wallet can carry the logo of banks, financial processors or merchants, which can translate into additional branding and advertising opportunities.

Pinnacle iCom POS: a point-of-sale system that connects merchants to their customers and financial processors for quick, secure, easy payments.

Pinnacle iCom Gateway: a gateway application that connects the merchant to the payment processing system for fast, easy and reliable payment authorization.

Pinnacle iCom CA: a digital certificate application that helps SET(TM) service provides and financial institutions control the certification process.

“Hypercom brings together the robust transaction processing of Pinnacle and secure Internet transactions to provide a powerful combination for the future of transaction processing in Asia Pacific and globally,” said George Wallner, Chairman and Chief Technology Officer, Hypercom Corporation. “Pinnacle by Hypercom underscores Hypercom’s consistent commitment to deliver innovative, integrated solutions with improved functionality and clear benefits for our existing and potential customers”.

Incorporating the Secure Electronic Transaction (SET) protocol, Pinnacle iCom allows merchants to use the Internet for transaction modes such as loyalty, chip card and stored-value applications that are now only available through traditional POS devices.

At Cards Asia ’98, industry leader Hypercom is also introducing Pinnacle Software’s complete family of front-end client/server software solutions for payment processing and data transactions.

“Pinnacle by Hypercom provides an adaptation layer for host legacy systems that allows financial transaction companies to quickly and easily support new functions and payment modes without replacing their existing transaction infrastructure investments,” said Theodore (Ted) F. Cole, Senior Vice President, Hypercom Pinnacle Software Products Group. “Pinnacle exemplifies Hypercom’s continuing heritage of providing industry leadership with innovative solutions, and we are very pleased to make this available to the Asia Pacific market.”

Quickly setting new industry standards and the migration path for discriminating customers, Hypercom’s Pinnacle Software family of client/server payment processing and data transaction solutions includes:

Advanced Transaction Processor (ATP): a high-performance server transaction authorization software that arms acquirers and merchants with feature-rich transaction processing power. Tailored to each acquirer’s specific needs, Pinnacle ATP combines standard electronic authorization methods with modular and specialized features to maximize options and streamline the entire transaction processing function. Some of Pinnacle ATP’s many features: increased efficiency via open system architecture; powerful, feature-rich functionality; authorizations expedited based on pre-set floor limits, transaction limits, and positive & negative cardholder files; optimal merchant velocity processing; and, reduced communications costs via pre-set or on-demand batch reporting. Pinnacle ATP operates on UNIX(TM)or Windows NT(R).

Loyalty Management System (LMS): this advanced server on-line loyalty system provides customers with the ultimate in instantaneous point redemption at any networked, participating merchant. Pinnacle LMS is the first chip card loyalty product developed in concert with Visa International, and supports debit, credit and stored-value transactions. Pinnacle LMS utilizes chip card technology to store loyalty point balances and provides consumers with instant redemption or query at the point-of-sale. Platform and database independent, Pinnacle LMS’s advantages for processors include: flexible multi-merchant loyalty functionality; centralized control of rules & bonus points; increased transaction volume and additional services to sustain and increase merchant base. Advantages for merchants include: instant point redemption at the point-of-sale; bonus points can be used for discounts on merchandise or services; increased patronage, customer services and market information; IC technology for high security and online/offline operation. Pinnacle LMS operates on UNIX(TM) or Windows NT Server(R) 4.0.

ChipStripe(TM) System: validates the authenticity of the ChipStripe card used in the transaction and verifies the PIN data. As an additional security measure, ChipStripe can also insert private information into the message stream after the ChipStripe card and PIN have been authenticated. Pinnacle LMS operates on UNIX(TM) or Windows NT Server(R) 4.0.

SigCap System: accepts signature and receipt data from point-of-sale terminals connected to signature capture devices, and stores that data for easy retrieval and replication of the signed receipt. SigCap delivers multi-platform and multi-database compatibility.

Network Terminal System (NTS): applies the client/server model to the point-of-sale world. Pinnacle’s Network Terminal software drives thin-client terminals that reside on the merchant counter. This solution means that there is no limit to the application features that can be provided to the merchant, and eliminates the need for costly and time-consuming downloads of software updates to the merchant point-of-sale device. Pinnacle’s NTS also provides the opportunity to incorporate enhanced merchant behavior statistics; and serves as a base for adding signature capture, loyalty, and other features. NTS provides multi-platform and multi-database compatibility.

“Hypercom’s Pinnacle client/server software solutions pave the way for processors and merchants to quickly, easily and economically adapt to the ever changing needs of their customers, and we are delighted to introduce these advanced solutions at Cards Asia ’98”, Mr. Wallner declared.

For a complete demonstration and more information about Hypercom’s innovative, high performance and reliable solutions, visit Hypercom’s booth D17 at Cards Asia ’98.

Celebrating it’s 20th anniversary, Hypercom Corporation (NYSE:HYC) is the world’s leading independent supplier of point-of-sale technology. The company also supplies Internet-based payment processing solutions. Hypercom provides innovative solutions for delivering and processing secure electronic payments and the infrastructure to quickly and cost-effectively integrate and deploy new payment applications. Hypercom’s end-to-end product family of terminals, peripherals, POS network products and software enables merchants and service providers to automate credit, debit and other electronic payment transactions with seamless integration, scalability and interoperability.

Headquartered in Phoenix, Arizona, USA, Hypercom markets its products in more than 50 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]



Kroger Goes U-Scan

Optimal Robotics Corp. and PSC Inc. announced Tuesday that supermarket superchain Kroger Co. has signed a letter of commitment to purchase and install a minimum of 50 ‘U-Scan Express’ self-checkout systems over the next 15 months. Kroger already has more than 30 stores equipped with ‘U- Scan Express’ across seven of their divisions with an eighth division scheduled to install its first system next month.


No Fooling

April 1 has been designated “Set Realistic Expectations Day” by the Securities and Exchange Commission as part of its week-long “Facts on Saving and Investing Campaign.” American Express is encouraging consumers to bite the bullet and reduce card debt. AmEx suggests consumers consolidate credit card debt into a home equity loan. AmEx also said this morning: “Your credit cards, no matter how tempting, should not be considered as a “substitute” for cash. A charge card, as opposed to a credit card, forces you to pay off the debt in full each month. Many people welcome this “forced” payment, as it helps them think twice about that spontaneous, madcap purchase.”


Magic Line’s Remote Banking Expands

Magic Line, Inc., the Midwest’s largest EFT network, and Online Resources & Communications Corporation today announced they have signed an agreement to offer Online Resources’ remote banking and interactive financial services to Magic Line’s banks, credit unions and thrifts.

Magic Line, the seventh largest network in the nation, serves more than 1,000 financial institutions in the Midwest. Online Resources will offer its industry-leading banking and billpaying services, distinguished by their real-time and integrated, multi-access capabilities.

“Magic Line is pleased to make this agreement with Online Resources, who has an excellent reputation in the marketplace. Through it, we will be able to expand remote banking services to our financial institutions, as we continue to meet their needs and offer choices to help them compete,” said John Bascom, president and CEO of Magic Line, Inc.

Complementary Strengths in Real-time Services

Online Resources CEO Matthew P. Lawlor said his company, which holds a patent relating to real-time financial services, believes that Magic Line will play a key role in fostering interactive services. “Magic Line and other EFT networks, along with Online Resources, have pioneered real-time services. Twenty-four hour cash-on-demand and POS card services are among the financial services initiatives that have changed the way consumers manage their money. The trust the public has in Magic Line and the support the network has shown its banks, credit unions and thrifts make Magic Line an excellent partner for us.”

For consumers, there are several key advantages to a real-time environment:

Balances are up-to-the-minute

Because accounts are verified before bills are paid, online overdrafts are eliminated.

Consumers can use various devices from anywhere and at any time and yet get up-to-the-minute information. This makes real-time especially important to families where more than one member has access to accounts.

Real-time debiting facilitates bill paying. Online Resources, for example, can guarantee most payments within two days.

Other strong attractions of the Online Resources’ service are that it can be tailored to institutions of all sizes and that it offers customer service support that is often mission-critical to the mid-size institutions.

Lawlor said the Magic Line partnership represents a major thrust for his company in the Midwest. “We are extremely pleased that the largest Midwest EFT network has chosen to support financial institutions with a multi-device, outsourced approach that’s easy to implement,” Lawlor said, noting that his company offers consumer access via the Web, private networks, telephones and ScreenPhones.

Online Resources’ offers proven Web real-time service. Since mid-1996, the company has provided to institutions of all sizes the ability to conduct real-time transactions on the Web. Moreover, it has a industry-wide reputation for developing and launching reliable and secure Web banking services that include cash management and billpaying, as well as Web site design and hosting, for $30,000 to $50,000.

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 [][1].

McLean, Va.-based Online Resources & Communications Corporation () is a leading wholesaler of interactive consumer financial services to financial institutions. The company provides a “one-stop shop” for its institutional clients. It integrates a large variety of consumer access options (PC ScreenPhone, Telephone via internet or private network) with an extensive set of financial transaction services (billpaying, banking and other services). Using its patented ATM network-based architecture, the company’s real-time transactions offer major cost and quality benefits. The company’s core services are augmented by a host of products and support services. Online Resources, a privately-held company founded in 1989, serves more than 225 financial institutions nationwide.



Telstra Wins Design Award

Twenty-four year old Nathan Jurezicius, from Glen Waverley in Victoria, Australia, has won the national Smart Design Competition for his clever, new age design, created for application on Australia’s latest payment card technology, the new Telstra Smart Phonecard.

Conducted as part of the LOUD Festival, Australia’s first national media festival of youth culture and the arts, the competition provided designers aged 15 – 25 years of age, with the opportunity to express their artistic talents in a commercial application.

Nathan’s winning design will be released nationally on more than 140,000 Telstra Smart Phonecards later this year. His original work features a new age, ‘spacey’ cartoon character, drawn in very clean, smooth lines. The design is particularly clever because it incorporates the gold micro-chip and red arrow icon, a standard on the Telstra smart Phonecards, as an integral part of the eye- catching illustration.

Mr. Brandon Saul, Festival Director of LOUD said that calling for designs in the form of a Telstra Phonecard helped to demonstrate the role that art plays in commercial endeavors to young Australians.

“The Loud Festival was aimed at encouraging young people in the area of culture and the arts, and the Telstra Smart Design competition helped to highlight the role that art and design play in commercial endeavors.” he said.

“Many young people don’t realize the wide range of career prospects available for people with artistic talent.”

Nathan is enjoying an overseas holiday until April 12, but his brother managed to contact him in Barcelona over the weekend with news of his win. He said that designing his entry made him think about how smart card technology will be used in the future.

“It’s amazing what that little gold chip enables the Smart Phonecard to do,” said Nathan.

“It’s quite exciting to think I’ll be able to make phone calls using a card with my own design on it,” he added.

This talented young designer has won a $3000 scholarship from Telstra to the art or design school of his choice for his winning design. In addition, he will receive $500 worth of Smart Phonecards, personalized with his winning design.

Telstra introduced smart card technology to Australians in August last year when it launched its smart Phonecards to complement the rollout of 35,000 new technology payphones throughout the country. In the near future the new Telstra smart Phonecard will also facilitate cashless payments for a variety of goods and services from unattended points of purchase such as vending machines, parking stations and entertainment facilities.

The judging panel comprised of Mr Brandon Saul, Festival Director of LOUD, Jeremy Andrew, one of Australia’s leading commercial artists; Ivan Botic, Graphic Artist for Telstra’s Smart Phonecards; and Ms Patricia Westcott, Customer Optimisation Manager, Telstra Payphone & Card Services.

“Australia’s youth are among the highest users of payphones and are also early adopters of new technology. Telstra felt it was appropriate for them to play a role in developing a design for the new technology Smart Phonecard,” said Ms Westcott.

“It was also an innovative way of introducing our new, easy to use Telstra smart Phonecards to this market,” she said.

Prizes were also awarded to three other finalists. Each finalist will also receive $500 worth of Smart Phonecards, personalised with their winning design.

All four designs were also featured on ABCTV’s Recovery, one of Australia’s leading youth television programs.

Telstra’s Smart Design Competition winners are as follows:

National winner – Nathan Jurezicius, Glen Waverly

Victoria Finalist – Kylie Rose, Spring Hill, Queensland

Finalist – Dale Baker, Glen Waverly, Victoria

Finalist – Scott Dungate, Roleystone, Western Australia


Cash America Acquisition

Cash America International, Inc. is acquiring all of the assets of a privately-owned company which operates a 40 store chain of pawnshops all under the name “Doc Holliday’s.” Doc Holliday’s, based in Austin, Texas, is believed to be the largest privately-held chain of pawnshops in the U.S.. Including the acquisition of Doc Holliday’s, Cash America will have added 54 locations to its pawnshop base this year. Cash America has 405 lending locations in 16 states and 50 locations abroad. Cash America also owns Mr. Payroll Corp.


Wireless CreditCheck IV

Equifax Inc. and Magnum Communications teamed up to offer wireless carriers instant access to current on-line credit data needed when processing new service applications. Magnum will provide a direct link to the Equifax ‘Telecommunications & Utilities Solutions MultiVision’ platform through its ‘CREDICHECK IV’ software. The solution can be used on a variety of operating platforms for application processing, collections, customer service, or purchasing. The link between the carrier’s site and Equifax is seamless, transmitting the needed information within seconds. This ensures that accurate, non-biased decisions are made at the point-of-sale.



Colorado National Bank celebrated its name change to U.S. Bank, Monday. The new name will unify the entire organization under a single identity and create better customer recognition.

“We adopted the U.S. Bank name to help customers recognize us throughout the 17 states we have been serving under several names,” said Daniel Yohannes, U.S. Bank chief executive for Colorado. The new U.S. Bank operates in more than 500 communities with more than 1,000 branches and nearly 3,000 ATMs. As a part of the name change, customers will see U.S. Bank ATMs change from FASTBANK(R) to UBank(R).

While the name is new, for customers it is business as usual. According to Yohannes, customers may continue to use existing checks, credit cards and other items with the Colorado National Bank name. As items are replaced or reordered, they will reflect the U.S. Bank name.

Along with the new name comes a distinctive red, white and blue logo. The purpose of this new logo, like the U.S. Bank name, is to increase visibility of the bank for customers. The new name and logo will also be used at all U.S. Bank offices, including the trust, investment and payment systems areas.

To celebrate the name change, Yohannes, Colorado Governor Roy Romer, and Dan Quinn, U.S. Bank president for Colorado, along with customers, community members, and employees today attended a “U.S. Bank Day” celebration at the Downtown Denver branch at 17th and Champa Streets. Metro Denver’s “U.S. Bank Day” celebration mirrored festivities held in more than 370 communities in 11 states. All Colorado National Bank signs and communication will be changing to reflect the new U.S. Bank name.

“This celebration marks our continued commitment to supporting our customers and communities,” said Yohannes. “We are dedicated to this community and will continue to do all we can to keep the Metro Denver community strong.”

U.S. Bank is the result of the 1997 acquisition by First Bank System, Inc. of Minneapolis of U.S. Bancorp, formerly headquartered in Portland, Oregon. With over $70 billion in assets, U.S. Bancorp is the nation’s 15th largest banking organization. U.S. Bank serves 3.9 million retail customers and 500,000 business customers in 17 states: Minnesota, Oregon, Washington, Colorado, California, Idaho, Nebraska, North Dakota, Nevada, South Dakota, Montana, Iowa, Illinois, Utah, Wisconsin, Kansas and Wyoming.


— Didn’t First Bank Systems and U.S. Bank already merge?

On Aug. 1, 1997, First Bank System (CNB’s parent company) acquired U.S. Bancorp and the two organizations officially joined under the name U.S. Bancorp. The new U.S. Bank name is now being extended to all branches and other locations with new U.S. Bank signs, letterhead, etc.

— Why is the Colorado National Bank name changing if they were the acquiring company?

First Bank took an unusual approach to naming the new organization by taking the name of the company it acquired. We chose to unify the companies (First Bank, U.S. Bank and Colorado National Bank) under the U.S. Bank name because the U.S. Bank name was easier for customers to recognize and could be used across all of the 17 states we now serve. Because many other organizations also use “first” in their names, First Bank wasn’t recognizable enough to customers and couldn’t be used in all of the communities we now serve. In addition, the new name better reflects the bank’s broad scope of services and any future expansions.

— Why is the name change occurring so much later than the acquisition?

A signage change of this magnitude takes a great deal of planning and execution. The name change required not only designing, manufacturing and replacing thousands of signs, but replacement of all printed materials as well. Given these objectives, the time frame for the actual name change was realistic.

— How long will it take to change all the signs?

U.S. Bank signs will be installed in all of our branch locations by Thursday, April 2. Due to the immense size of the re-signing project, some internal signs may take a few extra days. U.S. Bank is changing approximately 15,000 sign elements including 9,600 ATM signs and 5,000 branch signs in First Bank, Colorado National Bank and U.S. Bank markets as a part of the name change. All applicable materials are being recycled.

— How unique is it to take the name of a company you’ve acquired?

Taking the name of the company you acquire is understandably unique. Typically companies that unify their organization under one name use the acquiring company’s name. Only a handful of other companies that we know of have taken a similar approach to U.S. Bank and adopted the acquired company name.

— How does this change affect customers?

For customers it will be business as usual. They can continue to use existing checks, credit cards and other items with the First Bank/Colorado National Bank name. As these items are replaced or reordered they will reflect the U.S. Bank name. In addition to being a seamless transition, customers will also reap many benefits from the changes. With one unified name and logo, customers will be able to more easily recognize us in all of the 17 states we now serve. They will also have access to more than 1,000 branches and nearly 3,000 ATMs. In addition, U.S. Bank offers benefits such as 24-hour banking through PC Banking and telephone banking.

— What costs are associated with a name change of this size?

We are not releasing any figures related to our name change costs. We are however doing everything we can to make this a seamless process for customers, ensure the long-term success of the organization and exceed customer and shareholder expectations.

— Where is U.S. Bank located now and how many branches do you have?

U.S. Bank is the nation’s 15th largest banking organization with more than 1,000 branches in 17 states. U.S. Bank serves nearly 500,000 business customers and 3.9 million retail customer households. We serve the states of: Oregon, Washington, Idaho, California, Nevada, Utah, Minnesota, Wisconsin, Iowa, North Dakota, South Dakota, Nebraska, Kansas, Wyoming, Montana, Illinois and Colorado. One of the benefits of First Bank’s acquisition of U.S. Bank is greater access to products and services including access to nearly 3,000 ATMs.

— How many people does the new U.S. Bank employ?

U.S. Bank employs approximately 27,000 people across 17 states.

— Will the new U.S. Bank continue to support its communities with the same commitment each has had historically?

Absolutely. We believe our business thrives only when the communities in which we operate are economically healthy. For example, few banks can match the local lending record of First Bank and U.S. Bank. Community groups in U.S. Bank territories can count on the same level of commitment from U.S. Bank. Our combined organization contributed nearly $38 million to our communities last year through grants, volunteer projects and other support. Our focus is on reinvesting in the communities that support us.

— How much autonomy will U.S. Bank markets have in community giving?

All program-funding decisions will continue to be made locally, supported by centralized guidelines and processing procedures.

— How long have First Bank and Colorado National Bank been in existence?

The origins of First Bank began in St. Paul in 1853 as Parker Paine & Co. By 1880 the bank was known as First National Bank of Minneapolis and was the area’s largest employer. Colorado National Bank began in 1866 and became part of the First Bank family in 1992.

— What other activities are surrounding the name change?

U.S. Bank will celebrate the name change with customers, community members and employees on March 30 with an official “U.S. Bank Day” celebration. This event will take place in 370 communities in 11 states and with all employees. Name change advertising will also begin running in First Bank and Colorado National Bank markets on March 30. The campaign includes television, newspaper and billboard ads. All First Bank and Colorado National Bank signs will change. There will also be a name change on all Colorado National Bank ATMs from FASTBANK(R) to U.S. Bank Ubank(R) ATMs.

— How many people is the advertising campaign expected to reach?

The name change campaign involves print, television and outdoor advertising — run in the 11 states changing their name from First Bank or Colorado National Bank to U.S. Bank. The campaign is expected to reach almost 14 million people. The advertising conveys the positive nature of name changes using celebrities who have changed their names such as Marilyn Monroe and George Burns.

— What is the purpose of “U.S. Bank Day?”

U.S. Bank Day is a community celebration held in more than 370 communities in 11 states. It marks the transition to a new name and celebrates a significant historical event with the communities that help support us.

— Who was invited to participate in “U.S. Bank Day?”

U.S. Bank Day is a community celebration open to all customers, community members and local dignitaries.


CashRegister 3

CyberCash, announced Monday the next generation of electronic commerce payment services, ‘CashRegister 3’. Through the new service, CyberCash enables merchants to accept the widest range of payment options including payment cards (SSL and SET), electronic cash and ‘PayNow’ electronic checks. CyberCash will take over responsibility for a number of components of the payment process. ‘CashRegister 3’ will connect a merchant’s software to the ‘CyberCash Payment Service’. This new service has essentially redistributed the payment application allowing merchants to install a small piece of code, called the ‘Merchant Connection Kit ‘, and connect to the ‘CashRegister Service’. The bulk of the payment code now resides on CyberCash servers. ‘CashRegister 3’ will encapsulate payment tasks and administration formally undertaken by the merchants/technical partners and shift the responsibility to CyberCash.


POS Fraud

Star System Inc. and Card Alert Services Inc. played a major role in cracking one of the largest POS theft rings in the U.S. last week. The Los Angeles investigation has been underway for two years. The alleged members of the conspiracy obtained the ATM and credit-card numbers in two ways. First, suspects used employees at various financial institutions and merchants in the Greater Los Angeles area to fraudulently obtain ATM card numbers and the secret PINs from their customers when they made deposits, withdrawals or used their debit cards for purchases. The suspects also recruited employees to install hidden cameras by the cashier in several retail locations and hook up a computer device to the POS machines so they could capture both the PINs on video tape and the ATM account numbers on the computer device.


Fast Latin Cards

DataCard Corporation introduced a self-service card issuance solution Monday which will allow retail banking consumers to acquire ATM, debit and stored-value cards by using simple touch-screen controls. The new self-service solution is designed specifically for the Latin American market. Key features will include simple touch-screen controls, full-color electronic message displays, highly reliable card personalization systems and rugged, yet attractive housings that can be customized to fit each bank’s branding and identity strategies. The card personalization component will offer graphics printing, magnetic stripe encoding and smart card personalization capabilities.