MSFDC Picks Princeton

Billers using the MSFDC Internet-based system for bill presentment and payment services will make use of Princeton TeleCom Corporation’s Presentment Server and value added electronic clearing technologies. MSFDC’s system provides Internet bill presentment and payment services to banks and consumers. Princeton TeleCom was selected as a key participant to play a major role in MSFDC’s newly formed Systems Integrator Program. The Systems Integrator Program follows the announcement of MSFDC’s pilot program for financial institutions and billers, which is being initiated with three leading banks and a number of nationally recognized billers.

Princeton TeleCom has established long-standing relationships with over 700 of the nation’s leading billers, which for years have used Princeton TeleCom’s els Electronic Lockbox Service(TM). This places Princeton TeleCom in a key position to lead the automated billing and payment revolution.

When MSFDC’s Internet bill payment service is more widely introduced later this year, customers of billers will be able to see customized utility, banking and other bills via an electronic format on a home computer screen.

The goal of the MSFDC Systems Integrator Program is to provide billers, financial institutions and processors with an extensive pool of professional technology companies to help them quickly and efficiently implement the MSFDC electronic bill presentment and payment system. Systems Integrators are expected to offer a variety of products and services including consulting, development, integration, Web-based design, support and ongoing maintenance.

“MSFDC wants to offer both banks and billers maximum flexibility in customizing our electronic bill presentment and payment system,” said Richard Pickering, senior vice president at MSFDC. “To satisfy their varying needs, we’ve built a team of heavy hitters in systems integration and solution implementation. So, whether a bank or biller wants vertical industry expertise or specific systems or applications expertise, we have the solution providers to help them.”

“With the help of companies like Princeton TeleCom, MSFDC will take electronic bill presentment and payment beyond its infancy stage to large-scale acceptance and usage,” said Warren Dent, senior vice president at MSFDC. “Princeton TeleCom provides a valuable service by helping billers prepare their data from various platforms and integrate it with MSFDC’s technology.”

MSFDC’s bill payment and presentment system will translate accounts receivable data from a biller’s computer system, make them presentable to consumers through the Internet, and allow for electronic payment of the bill in full or partial amount on the date specified by the consumer. By supporting MSFDC, Princeton TeleCom will be a key component of the success of electronic consumer billing and payment.


Based in Denver, MSFDC is the electronic bill presentation-bill payment joint venture between Microsoft (NASDAQ MSFT) and First Data Corp. (NYSE FDC), formed in June 1997. In the summer of 1998, the company is scheduled to introduce the nation’s first end-to-end system for electronic presentment of richly formatted bills over the Internet, as well as next-generation electronic payment and remittance capabilities. MSFDC’s service, which will use existing payment systems, will allow consumers to access and pay their bills through the branded home-banking services of participating financial institutions.

To implement the MSFDC system, MSFDC launched a Systems Integrator Program that will provide banks and billers the option of choosing from an extensive pool of professional technology companies that are trained on the MSFDC systems. Systems integrators will offer a variety of products and services including consulting, development, integration, Web-based design, support and ongoing maintenance. Seventeen nationally recognized solution providers are currently signed up with the Systems Integrator Program. For more information on MSFDC, visit its Web site at [][1].

About Princeton TeleCom Corporation

Founded in 1983, Princeton TeleCom is a leader in developing and operating electronic bill presentment and payment services for large corporate bill senders. The company’s core product, the els Electronic Lockbox Service(R), serves as a value-added payments network by routing transactions directly to billers’ accounts receivables host systems. The Company serves more than 700 national and large regional bill senders, and its Presentment Server(TM) technology currently houses more than 60 million receivables for Internet and telephone bill statement presentation and payment. Other clients of Princeton TeleCom’s electronic bill payment services include Lucent Technologies, Discover Card and Western Union.

For further information on Princeton TeleCom bill presentment systems and services, contact Princeton TeleCom Corporation, 165 Wall Street, Princeton, N.J. 05840; telephone 609-924-1244, or visit its Web site at [][2]



Credit Suisse & AmEx Partner

Credit Suisse and American Express announced today that they have jointly agreed to grow their card business in Switzerland. Credit Suisse will become the first Swiss bank to offer Swiss franc American Express cards, Eurocards, and Visa cards. The two companies have also formed a new joint venture entity that will support their card activities in the market.

“This is a unique and innovative new partnership,” said James Cracchiolo, president of American Express’ Global Network Services Group. “The forming of the new joint venture, which combines the forces of one of the world’s leading banks with the world’s leading card issuer, supports our philosophy of freedom of choice in the marketplace. It will ensure that a wide range of payment products and services will be made available through Credit Suisse to the Swiss consumer.”

Cracchiolo added: “We are delighted to be able to add Credit Suisse to our growing family of bank partners. Through strategic arrangements like this one, we are matching the global strengths of the American Express brand and worldwide service with the strong customer relationships and strong presence of a local partner committed to the same kind of high quality service standards American Express offers its customers around the world.”

The joint venture company will be responsible for a range of card operations such as product design and customer service. Credit Suisse and American Express will jointly own the new company which will be managed by a combined board of Credit Suisse and American Express executives. The new company will be located in Zurich. Employees of the card business of Credit Suisse and American Express will be gradually transferred to the new joint venture.

This new agreement represents another major step in American Express’s global strategy of forming relationships with banks to offer payment products to consumers. American Express has recently announced business partnerships with financial institutions in several countries including the United Kingdom, Ireland, Spain, Turkey, France, Brazil, and Japan.

Credit Suisse, a business unit of the Credit Suisse Group, has an extensive network of approximately 240 branches in Switzerland and is a leading bank for Swiss corporate and individual customers. Last year, Credit Suisse redefined its credit card strategy with to exloit the opportunities of a changing market and significantly expand its market share. The partnership with American Express is a cornerstone of Credit Suisse’s growth strategy in the credit card market.

American Express Company founded in 1850, is a diversified worldwide travel and financial services company. It provides card, Travelers Cheques, travel and financial services in over 160 countries.


Card Capture Up 69%

Card Capture Services, Inc., a leading independent provider of ATMs nationally, reports strong earnings for 1997.

Contributing factors include sales of over 3,000 new machines, 1,800 of which were installed in 1997. As a result, during 1997, the company’s gross revenues increased 69% over 1996. Launched in 1993, the 5-year-old, privately held company has seen revenues double each year since its inception, posting $664,000 in 1993, $3 million in 1994, $7.6 million in 1995, $16 million in 1996 and approximately $27.5 million in 1997.

Enhanced Network Operations Center

During 1997, the company upgraded its Network Operations Center.     The enhanced center connects CCS to all of its ATMs in the field via a proprietary software program developed by the company called CCSConnect. As a result, the company is immediately alerted to maintenance needs electronically. CCSConnect also enables CCS to download advertising and couponing information to machines remotely from the Network Operations Center.

New on-screen advertising capabilities developed

CCS developed and launched CCSMediaPak, a multi-media ATM software and hardware package aimed at expanding machine capabilities, in late 1997. The new proprietary package expands ATM capabilities to enable on-screen advertising and the distribution of coupons while a transaction is taking place.

Company ranked country’s 7th largest ATM provider

According to the December, 1997 issue of Bank Technology News. “While banks still dominate ATM deployment, newcomers, such as seventh-ranked Card Capture Services, are now surfacing in the top 10.”

Major accounts signed

During 1997 the company signed several major accounts. AMF Bowling Centers Inc. was the largest with an agreement to place a total of 310 ATMs in AMF corporate bowling center locations nationwide.

New facilities and employees

To accommodate growth, CCS moved into a new, 19,000 square footage office space in November. The company also added 14 new employees in 1997.

Marketing consultants retained

The company also retained two experienced marketing firms. The Eisenberg Marketing Group and Lane Marketing Communications, both Portland-based agencies, to assist with marketing strategies. The Eisenberg Marketing Group provides strategic and tactical marketing planning including creative, advertising, direct response and brand development, while Lane Marketing Communications provides public relations services to the company.

Card Capture Services, Inc. (CCS) was incorporated in 1993, in Portland. 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 currently has 45 employees.


Rate Drop

The recent introduction of low, fixed, long-term interest rates is driving down average card interest rates. According to the upcoming March issue of Bankcard Barometer, average standard card interest rates dropped from 17.55% to 17.50% on an unweighted basis and from 18.83% to 18.79% on a weighted basis. Gold card rates also dropped from 16.40% to 16.38% on an unweighted basis and from 17.90% to 17.85% on a weighted basis. The decline is the first in more than a year. Since the fourth quarter some major issuers, including Capital One, have begun offering a no-fee, fixed 9.9% go- to rate to selected customers. First USA recently introduced the no-fee ‘Yahoo! VISA’ card with a fixed 9.9% go-to rate for charter applicants.


NationsBank Online

NationsBank unveiled its new, free, web banking service yesterday to customers in FL, GA, MD, NC, SC, VA and DC. The bank says it will expand the service to all its customers, including Barnett, later this year. ‘NationsBank Online’. The new service offers customer access to checking, savings, money market, CDs, IRAs, retail loans, lines of credit and credit cards. Customers may also download transaction data into Quicken and Microsoft personal finance software.


Falcon Retail

HNC Software is attacking the $250 million fraud loss problem connected with private-label cards. The company announced Tuesday the availability of its new private-label-card fraud detection solution similar to its predictive software technologies used by major bank credit card issuer. ‘Falcon Retail’ uses three different scoring models one for application fraud, one for new account fraud and one for mature account fraud. HNC estimates 50% of retail card fraud occurs in the application stage. The solution also employs retail-specific neural networks, expert rules bases and HNC’s proprietary behavior profiling technology. Yesterday’s release follows a pilot with Sears.


Administaff & AmEx Deal

Administaff, Inc. and American Express yesterday completed their previously announced marketing alliance to provide personnel management services to American Express’ substantial small business customer base across the country.  The agreement included the sale of 693,126 shares of Administaff common stock with warrants to purchase approximately two million additional shares at strike prices ranging from $40 to $80 per share to American Express for $17.7 million.

In Board action taken today and in connection with the American Express transaction, Anne Busquet, President of American Express Relationship Services (AERS), was elected to serve on Administaff’s Board of Directors, bringing the total number of directors to nine.

Paul J. Sarvadi, Administaff’s President and Chief Executive Officer, commented, “We are pleased to welcome Anne to our Board.  Her diverse industry experience and expertise in the development of new products and services will be enormous assets to Administaff and to the marketing alliance.  We look forward to her guidance in assisting us to develop cross-selling opportunities that will strengthen our products and services and enhance our long-term growth.”

In her current position at American Express, Mrs. Busquet is responsible for the company’s Fee Services, Merchandise Services, Telecommunications Services and the Educational Financing Group.  A member of the American Express Planning and Policy Committee, Mrs. Busquet also has worldwide responsibility for Interactive Enterprise Development, a centralized group that manages the company’s global interactive strategy.

During her 20-year career at American Express, Mrs. Busquet has held several managerial positions.  From 1993 to 1995, she was Executive Vice President of the Credit Card Group at American Express Travel Related Services (TRS) with responsibility for the Personal Card, Gold Card and Platinum Card products.  In 1991, she was named Senior Vice President and General Manager of Merchandise Services, which offers diverse products and services via mail order to American Express Cardmembers.  Prior to that, Mrs. Busquet held executive positions with the company’s lending business, including Senior Vice President and General Manager of the Optima Card Division.

Administaff is one of the nation’s leading Professional Employer Organizations, providing a comprehensive Personnel Management System that encompasses a broad range of services, including benefits and payroll administration, medical and workers’ compensation insurance programs, personnel records management, liability management, employee recruiting and selection, performance management, and training and development services to small and medium-sized businesses.  The Company has 19 offices in 12 major markets and serves clients and worksite employees throughout the United States.

American Express Relationship Services (AERS) was formed in 1995 to deliver value-added products and services to consumers and businesses by leveraging corporate assets in non-traditional areas, such as insurance, telecommunications and educational funding, and the Internet.  AERS is a division of American Express Travel Related Services Company Inc.

American Express Travel Related Services Company is a wholly owned subsidiary of the American Express Company — a diversified worldwide travel and financial services company founded in 1850.  It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking.


Paymentech Hires LeRoux

Pamela H. Patsley, president and chief executive officer of Paymentech, Inc. (NYSE:PTI), today announced that L. Wayne LeRoux has joined Paymentech as group manager responsible for strategic business operations at the company’s Network Services unit in Tampa, Florida. He will manage major cross-functional initiatives, provide a cohesive operational approach, and support long-term strategic initiatives. LeRoux will report to Michael P. Duffy, Paymentech’s chief operating officer.

Paymentech Network Services provides point-of-sale (POS) authorization and electronic draft capture transaction processing services. In addition to direct clients, Paymentech is a leading provider of such services to independent sales organizations (ISOs) and financial institutions.

LeRoux, a well-known payment industry expert, is familiar with Paymentech’s Network Services operations. He founded TransNet, Inc. in 1987, which was subsequently acquired by GENSAR Holdings, Inc. in 1992. Paymentech purchased GENSAR in 1996. LeRoux was also founder and president of LeRoux, Pitts & Associates, a Florida software firm that specialized in development and implementations of POS software systems to banks and major retailers.

“Wayne is a significant addition to a management team that is already one of the most experienced in the processing business,” said Patsley. “He brings tremendous career knowledge and insight. As a visionary who helped shape major POS technological developments, he will significantly contribute to realizing our strategy for our future POS transaction and third-party processing business.”

“Paymentech presents a tremendous opportunity for me to once again be involved with an industry leader,” said LeRoux, “and to influence the future of POS transaction processing. Our task now is to develop the level of technology and functionality needed for the next generation of payment processing products and services. To take an active role in this endeavor is exciting.”

“Wayne’s resume speaks for itself,” said Duffy. “He guided the development of some of the first terminal-based POS applications, created some of the earlier debit POS functionality, and literally shaped the role of POS as a fully integrated payment solution in supermarkets. He combines technology and broad business strategy in a manner that is respected throughout our industry.”

Paymentech, Inc. (NYSE: PTI), founded in 1985, provides full-service electronic payment solutions in merchant acquiring, third-party transaction processing and commercial card payment and information programs. The company processed approximately 1.6 billion total transactions and approximately $46 billion in sales volume during calendar 1997. Paymentech is the third largest processor of bankcard transactions and a leading issuer of commercial cards in the United States.


Sheraton Visa Alliance

ITT Sheraton and VISA U.S.A. signed a long-term, multi-million dollar marketing agreement yesterday. The agreement covers a joint advertising campaign, consumers and trade promotions, and joint sponsorships. VISA cardholders will also receive special incentives when using a VISA card for a Sheraton Hotel stay. To celebrate the alliance both companies announced yesterday the immediate availability of special cardholder benefits at eight Sheraton Hotels in Hawaii. The special Hawaiian promotion includes a fifth night free, daily dining credits of $25-$50, late checkouts and a free one category upgrade.


VISA Smart Support

Schlumberger signed a letter of intent with Visa International yesterday to become a partner in the new ‘Visa Smart’ program.  As part of the program, Schlumberger will provide cards, terminals and application development support and services for added value programs, such as loyalty, to Visa Members. The Schlumberger product offering will include the whole range of ‘Visa Smart Products’ and the ‘Open Platform’, a secure multi-application card based on ‘Java Card’ technology, as well as the company’s ‘MagIC’ range of technology-leading point-of-sale terminals.


Internet Billing on a Roll

One of the first companies to introduce 900-number billing technology to the Internet has also become one of the industry’s fastest growing providers of real-time credit card transaction processing services, linking Web sites to the credit card authentication network and/or providing robust point-of-sale and back-office interfaces for Web merchants who want single-source electronic commerce services.

For Internet Billing Co. (ibill), the path from launch of itsWeb900TM online billing service in mid-1995 to the introduction at Fall Internet World ’97 in December of the ibill TP transaction processing platform represents more than just augmenting ibill electronic commerce services, according to Keith Miller, ibill executive vice president,  “It is the culmination of a goal to position ibill as the electronic commerce services company of choice for small-to-midsize businesses selling goods and services over the Internet,” Miller said.  With a growth rate that now approaches 20% a month, ibill is very close to realizing its goal.

“Strategically, ibill TP is very important to our growth plans.  It provides what we believe to be the most cost-effective electronic commerce solution for small-to-midsize Web sites.  At the same time, ibill TP is the platform that is enabling us to establish alliances and partnerships with ibill TP Represents Strategic Platform other key Internet players who see ibill’s transaction processing infrastructure and Commerce Management Interfaces (CMIs) as adding significant value to their own electronic commerce offerings,” Miller said.

Miller said the company is in final negotiations with several key Internet players who intend to incorporate ibill TP technology into their electronic commerce packages.  “We had hoped to be able to announce several alliances as Spring Internet World 98 this week, but final inking of the agreements will probably be delayed until next week,” he said.  “We expect to make formal announcements shortly.”

The company is exhibiting its full line of electronic commerce services at SIW98.  For sales information contact Internet Billing Co., 5701 Pine Island Road, Suite 240, Fort Lauderdale, FL 33321.  Telephone 1-888-237-1764, email, or visit ibill’s Web site at .

About ibill

Internet Billing Co. (ibill) is a leading worldwide provider of transaction processing and services that enable Web merchants to accept and process in real-time payments for goods and services purchased over the Internet, and manage back-office functions associated with the transactions through ibill Commerce Management Interfaces.  The privately held company was founded in Fort Lauderdale, Fla., in October 1996.


First Premier Extends FDR

First Data Resources, a unit of First Data Corporation, today announced a three-year contract extension with South Dakota-based First PREMIER Bank. With the extension, First Data will provide transaction processing and other cardholder services through 2005 for the bank’s more than 300,000 credit card accounts on file. Financial terms of the agreement were not disclosed.

“This extension clearly shows that we consider First Data a strategic partner in helping us achieve our goals for the management and growth of our credit card portfolio,” said Miles K. Beacom; president of First PREMIER’s Credit Card Division.

First PREMIER Bank, one of the fastest growing issuers of sub-prime and secured credit cards in the nation, has been a First Data client since 1989.

“This has been a good relationship,” adds Jeffrey J. Aegerter, senior vice president of card products for First PREMIER. “We’re confident in First Data’s processing expertise and innovative services as a way to bring value to business.”

“We’re pleased to extend our relationship with a qualify financial institution like First PREMIER,” said Richard A. Zehnacker, president of First Data Resources. “This clearly demonstrates their confidence in our ability to deliver innovative technology and new products and services so that we can help them grow their market share and maxime their profits.”

Sioux Falls, S.D. – based First PREMIER Bank is the seventh largest issuer of sub-prime credit cards, with more than $63 million in credit card outstandings.

Omaha, Neb. – based First Data Resources is a leading global provider of transaction cards and other card-based services to more than 1,400 financial institutions around the world.

Hackensack, N.J. – based First Data Corporation is a global leader in payment systems, electronic commerce and information management products and services. First Data and its principal operating units process the information that allows millions of consumers to pay for goods and services by credit, debit or smart card at the point of sale or over the Internet; by check or wire money. For further information about First Data, please visit the Company on the Internet at [][1].