QI SmartKits in Treasury Pilot

QI Technologies Corp., is installing QI SmartKits in vending machines at the Department of Veterans Affairs, Bronx Medical Center, New York. The installation is part of the U.S. Treasury’s program to test the use of electronic cash card technology to improve service to citizens, reduce government costs and streamline Federal operations. The pilot will place NationsBank VisaCash in the hands of patients, physicians, visitors, volunteers and employees of the VA facility.

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Royal Bank SET

Royal Bank announced the implementation of a system that ensures secure credit card payments over the Internet. Using software products developed by VeriFone Inc., and with the grated participation of IBM Canada Ltd. and UUNET Canada Inc., the new system provides an Internet payment solution based on the SET protocol. The first retailer to use the service is Proof in Advance Education Corp. of Toronto, which produces Learn As You Drive audio-cassettes.

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$50 Bill Smartview

Florida-based Smartview says its device will avoid problems associated with the printing of the new $50 bill. The Smartview counterfeit detector was developed specifically to counteract fraud by showing the flow of the embedded security thread. Its patented Adarkroom technology is the only on of its kind to clearly show the glow of the security device in any light conditions. The devise is already in widespread use for verifying conditions. The devise is already in widespread use for verifying the newly printed $100 bills, which were redesigned in 1996 to include a red security thread to the left of the portrait.

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Vital On a Roll

Vital Processing Services announced Friday the signing of a significant long-term contract to convert U.S. Bancorp’s merchant portfolio to Vital’s POS authorization and data capture services. Over the next year, U.S. Bancorp with the concurrence of its customers will direct all of its authorization and capture traffic to Vital. These converted transactions, combined with U.S. Bancorp’s current Vital volume, translates to a processing forecast of 20 million transactions per month by the end of 1998 from U.S. Bancorp’s 90,000 merchants.

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E-Loan Passes Milestone

Signifying a growing trend in the mortgage lending industry, E-Loan today announced receipt of its 1,000th on-line loan application. The site, www.eloan.com which was launched on June 30, 1997, has increased its month to month loan activity more than 100 percent in that time. Borrowers can search for the lowest rates available on a daily basis from the best lending sources, compare loans, lock-in, and apply on-line immediately.

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Fundamental Shifts

As National Consumer’s Week opens today there is clear evidence consumer credit card habits are changing rapidly. An analysis of mid-year data gathered by CardData, and reported in Bankcard Update and Bankcard Barometer, shows the number of consumers consistently paying off card balances continues to grow and is approaching 40%. Meanwhile the percentage of active accounts continues to shrink and is now hovering around 60%. Some major issuers are experiencing active account ratios in the mid-50% range according to CardData’s preliminary third quarter portfolio survey. Both factors are significantly impacting profitability.

THE STATS

History of Revolvers versus Convenience Users of Bank Credit Cards: (percentage of accounts with a carryover balance versus accounts with no carryover balance at end of each year)& History of Active Accounts (percentage of gross accounts with posted activity at year’s end) * as of mid-year

YEAR CONV ACT
1990: 29% 78%
1991: 30% 78%
1992: 31% 76%
1993: 32% 73%
1994: 33% 71%
1995: 34% 68%
1996: 36% 65%
1997: 39%* 61%

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Paymentech’s Off Quarter

First USA Paymentech reported earnings of $4.2 million for the first quarter of fiscal 1998. This compared with net income of $6.4 million for the first quarter of fiscal year 1997. During the fiscal 1998 first quarter, Paymentech processed approximately 420 million bankcard and third-party authorization and capture transactions. Paymentech also announced that it has officially changed its name to Paymentech, Inc. from First USA Paymentech, Inc. Effective October 29, 1997, the company will be listed on New York Stock Exchange under the new name of Paymentech, Inc.

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NDC Gain Strength

Continued strong financial results were highlighted at National Data Corporation’s annual stockholder meeting here today.

Commenting on the year, NDC Chairman and CEO Robert A. Yellowlees said: “We’ve continued our record of consistent financial results. Our solid earnings growth combined with a high recurring revenue stream continues to provide a sound investment value for our shareholders. Our productivity focus and investments are yielding expanding margins and our cash flow continues to build. For fiscal year 1997 revenue increased 54 percent, EBITDA exceeded $100 million and was 23 percent of revenue, net income grew by 57 percent and earnings per share grew from $1.01 to $1.38.

“But the numbers are only a fraction of the story. While our company has produced steady financial results during this time, we also have significantly strengthened the content and positioning of our business. That, combined with the talent of our employees and management team, provides an excellent formula to support continued growth.”

National Data Corporation is a leading provider of information services for the health care and payment systems markets.

When used in this report, press releases and elsewhere by management or the Company 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 processing and payment systems markets, successfully completing and integrating acquisitions in existing and new markets 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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AT&T Biz MC Expands

AT&T Universal Card Services, said its business customers can now access their latest company and employee statements over the Internet and download them for convenient accounting. The company said today that cardmembers of the AT&T Universal Business Card can view their previous statements through the company’s Business Account Online service and download them into the qif format. Cardmembers can access information such as unbilled charges, available credit and payments, and employee statements. Introduced in April, 1997, there are already more than 150,000 cards issued.

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Possible Wavetech Merger

Wavetech, Inc. today announced that it has entered into merger talks with three privately held companies which provide enhanced telecommunications products and services. Wavetech is represented in the transaction by Sterne, Agee & Leach, Inc., a full service investment firm. Wavetech entered into a banking agreement with Sterne, Agee & Leach, Inc. on July 11, 1997. Products and services provided by the three private companies include calling cards, consumer privilege cards, virtual office products, one-plus domestic/international long distance, Internet access and operator services. The three companies have in excess of 750,000 customers with combined annualized revenues in excess of $48 million. Additional information on the talks and the merging companies was not given. Wavetech, Inc. is a diversified telecommunications company. It is the developer and distributor of Interpretel computer/telephony products and is engaged in the resale of international long distance. The Company’s advanced network provides subscribers single point of access to innovative communications and information services. The Company markets its services in the United States and Canada under the Interpretel name and through highly- customized or co-brand initiatives. The press release includes statements which may constitute forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, factors detailed in the Company’s Securities and Exchange Commission filings.

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Cap One Dividends

Capital One Financial Corporation today announced a quarterly dividend of $.08 per share payable November 19, 1997, to stockholders of record as of November 4, 1997. This is the Company’s eleventh consecutive quarterly dividend since its February 28, 1995, spin-off from Signet Banking Corporation. Dividends declared by the Company are eligible for direct reinvestment in the Company’s common stock under its Dividend Reinvestment and Stock Purchase Plan. For additional plan information, stockholders should contact ChaseMellon Shareholder Services at 800-685-4518.

Headquartered in Falls Church, Virginia, Capital One Financial Corporation is a financial services company whose principal subsidiaries, Capital One Bank, and Capital One, F.S.B., offer consumer lending products. Capital One’s subsidiaries collectively had 10.7 million customers and $13.5 billion in managed loans outstanding as of September 30, 1997, and are among the largest providers of MasterCard and Visa credit cards in the world.

Note: This release and financial information are available on the Internet on Capital One’s home page (). Click on “Financial Information” to view/download the release and financial information.

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