Landing a Big One

Paymentech confirmed yesterday it has landed a processing contract with direct retailer Lands’ End. The contract includes both domestic and international payment processing. Lands’ End has operations in Japan, the U.K. and Germany… Paymentech’s international processing will enable Lands’ End to price products, bill consumers and be paid in multiple international currencies and avoid the confusion and chargebacks due to exchange rate fluctuations. Paymentech has partnered with NatWest for multi-currency processing.


New Electronic Receipt System

At RISCON today, MobiNetix Systems Inc. (OTC Bulletin Board: NETX) announced development of the Secure Record System (SRS), the first complete software solution for merchants who want to eliminate multiple paper receipts, and securely store and retrieve confidential transaction information.

SRS simplifies the process of switching from paper receipts to electronic receipts, which allow merchants to save money and provide better customer service. The SRS software is designed to work with the MobiNetix line of PenWare-brand electronic transaction terminals, but the software also operates universally with other brands.

How Does it Work?

SRS is a customized software solution that integrates with PenWare-brand and other hardware terminals to securely manage customer transaction information at retail stores and other points of sale. For example, in the electronic receipt process, instead of signing paper receipts, customers place their signatures directly onto transaction terminals. SRS encrypts the customer signature and other confidential transaction information, such as credit card number, and bundles that information with other data, like store number, register number and date. SRS transfers the data to the merchant’s database server and stores it securely.

Using SRS, merchants can instantly reproduce the entire receipt by accessing complete transaction information, including customer signatures. With 56-bit data encryption standard (DES) and additional security features, the SRS system is designed to prevent unauthorized personnel from viewing or reproducing the signatures and other confidential information. When a receipt is reproduced, the words “non-original receipt” appear on the document, and a security grid is superimposed over the signature to provide an additional layer of safety.

“SRS eliminates obstacles that previously prevented merchants from switching to electronic receipts,” said Aziz Valliani, CEO and president of MobiNetix. “Merchants used to invest significant time and internal resources into developing this type of software. But now MobiNetix expertly handles the work for the merchant by providing SRS, a complete customized software solution. Never before has it been so convenient and secure for merchants to start saving money and improving customer service by making the switch to electronic receipts.”

Advantages for the Consumer and the Merchant

With SRS, merchants save money by reducing the number of chargebacks and refunds issued due to lost or misplaced paper receipts. When a customer disputes a purchase, merchants instantly access complete electronic transaction information, instead of rummaging through boxes of paper receipts. Instead of issuing a refund if the receipt cannot be found, merchants have the transaction information at their fingertips. SRS also empowers merchants to provide better and faster customer service by quickly and accurately resolving such disputes.

Additional advantages include reducing the costs of storage and the amount of labor involved with paper receipts. Storing customer signatures electronically also protects the merchant and the consumer against fraud by allowing comparison of customer signatures. SRS frees up vast amounts of space on the merchant’s mainframe by storing transaction information on the merchant’s database server. In addition, SRS enables customized report generation.

Technical Specifications

The SRS system works optimally with a server running Windows NT 4.0, with an ODBC-compliant database. Client workstations running Windows 95 or NT are recommended, but SRS also operates with Java-based clients. SRS is web-enabled, meaning that merchants can access transaction information through a web browser. SRS also integrates with the merchant’s existing LAN or Intranet. A built-in help system allows merchants to access a web browser with embedded HTML help files. PenWare provides complete customization and customer support services.

About PenWare Transaction Terminals

— The PenWare3000 Interactive Transaction Terminal captures signatures electronically; accepts credit, debit and smart cards; displays electronic advertisements and customer surveys. The PenWare3000 also offers an open- platform design and migration path options for wireless and smart card technologies.

— The PenWare1500 is a low-cost, lighted signature capture terminal that is designed specifically for merchants who are integrating electronic signature capture capabilities into their point-of-sale systems.

— The PenWare100 Signature Capture Pad enables businesses to quickly and easily incorporate handwritten information into their computer systems.

About MobiNetix Systems Inc.

MobiNetix Systems Inc. (OTC Bulletin Board: NETX) manufactures the PenWare line of products and specializes in providing state-of-the-art interactive transaction terminals and consumer-friendly applications to the retail, hospitality, financial services, insurance and identification/security industries. PenWare brand products are the most technologically advanced terminals on the market today, offering touch-screen payment, communication and data collection. The company is focused on transaction solutions with clear migration paths to advanced technologies. In addition, MobiNetix offers OEM solutions that enable signature capture capabilities to be incorporated in industrial hand-held computers and portable data terminals. PenWare brand products are sold through a direct sales force, OEMs, systems integrators and VARs. Additional information is available at , by sending e-mail to, or by calling 1-888-PenWare.


Chilean Bank Goes Online

Banco BHIF, one of Chile’s leading commercial banks, today announced it has released an updated world wide web site at [][1] to enhance its banking services to customers and increase its visibility in the market. This new version of the web site was created based on the Bank’s one year experience with the previous version and on its customers’ opinions.

Ruben Unda, Banco BHIF’s Manager of Operation and Technology, said BHIF customers, both individual and corporate, will now be able to make money transfers between accounts and payments to credit card and other accounts, receive information on savings and checking balances, check on the performance of investments and obtain assistance to manage banking emergencies such as loss of documents.

The BHIF site also provides information on the bank’s products, branches, directories, affiliates, administration and majority shareholders. Another part of the BHIF site provides information on Chilean macroeconomics as well as press releases and other financial data on the Company itself.

“The great advantages of the web site,” Mr. Unda said, “are that it is easy to use, fast and friendly, available 24 hours a day, 7 days a week, and it relieves our customers of having to go to the bank physically.” Mr. Unda added that use of the web site will be without cost to BHIF’s customers. The site is also open to the general public.



ORGA in South African ICT Venture

In the future, ORGA will have a physical presence in South Africa, one of the most important smart card markets on the continent. Involvement in the ICT joint venture, with headquarters in Johannesburg, will enable the smart card specialist to serve the region faster and more purposefully than ever before.

Involved in ICT alongside ORGA are Gieseke & Devrient, Nampak and also the South African partner Nasionale. While smart card manufacturers ORGA and G&D are bringing technological know-how and customers with them, the packaging specialist Nampak and the Nasionale Group, coming from the field of publishing, are contributing an extensive infrastructure to the success of the joint venture. Paul Hill, who manages the ORGA UK subsidiary and played a leading role in the creation of the new joint venture, sets high hopes for this partnership: “ORGA has been developing our presence in South Africa for over 5 years and has long recognized the potential for rapid expansion of chip card applications in this highly sophisticated marketplace. We are particularly excited to be participating in a collaboration involving such strong partners and look forward to a bright future in South Africa.”

ICT is the third international joint venture in which ORGA has been involved, following ORGA Zelenograd, Russia, Smart Cards & Systems (1996) and Shenzhen, China, ORGA Smart Cards & Systems (1997). Behind this lies the strategy to expand globally with international cooperation by setting up companies and joint ventures to serve regional markets fast and flexibly, in line with demand. ORGA intends to push ahead with this program in the coming years.

Paderborn-based ORGA Kartensysteme GmbH is one of the pioneers and market leaders of the smart card industry. It is jointly held by Preussag AG of Hanover (37.45%) and Bundesdruckerei, Berlin, (37.45%) and Bonn-based Deutsche Telepost Consulting GmbH (Detecon), a subsidiary of Deutsche Telekom (25.1%). With other subsidiaries and affiliated companies in Great Britain, France, USA, CIS, as well as a branch office in Singapore, ORGA enjoys a world-wide presence.


Critical Smart Card Pilot

The most significant test of smart payment cards gets underway this morning in New York City as VISA, MasterCard, Citibank and Chase Manhattan join together to gauge acceptance of ‘VISA Cash’ and ‘Mondex’ cards by consumers and merchants. Reportedly 675 merchant locations have been enlisted as of this morning. About 50,000 smart cards will be in use with Citibank issuing 25,000 ‘VISA Cash’ cards and Chase Manhattan issuing 25,000 ‘Mondex’ cards. The proving ground will encompass the area in NYC west of Central Park between West 60th and West 96th Streets, also known as Manhattan’s Upper West Side. Besides testing acceptance the pilot is also aimed at testing interoperability between the two competing brands. The reloadable cards will accept up to $500 in stored value.


Packing It In

he PacBell VISA and MasterCard is dismantling after four years. Household Bank and Pacific Bell are notifying cardholders this week the rebate period for the program will end October 30 with rebates honored through February 15. The estimated 300,000-400,000 PacBell accounts will be transferred to Household Bank. Both parties have established a special 800 number to answer cardholder questions. Household indicated Friday the termination of the program was mutual. The program offered a 10% cash rebate on calling card long distance calls and a 1% cash rebate on all other purchases.


Gift Cards

Phoenix-based FAR POINT and Gemplus announced this morning a smart card-based electronic gift certificate system that consists of a Gemplus smart card, DataCard’s ‘Jigsaw’ smart card POS reader and FAR POINT’s software. Holiday Companies of Minneapolis, which operates a chain of convenience stores and gas stations throughout the Midwest, will roll out the system to about 250 locations early next year. The new system is being showcased at the National Premium Incentive Show, which gets underway this morning in Chicago.


FUSA 9-Series Card Bonds Rated

First USA Credit Card Master Trust’s $500 million class A floating-rate asset-backed certificates, series 1997-9, are expected to be rated ‘AAA’ by Fitch. The corresponding $45.2 million class B certificates are expected to be rated ‘A+’.

Fitch’s expected ratings are based on the strength of the Visa and MasterCard collateral pool, available credit enhancement, excellent servicing capabilities of First USA Bank, and the solid legal and cash flow structures framing the transaction.

Credit enhancement supporting class A is derived from the subordination of the class B and collateral invested amount (CIA) certificates equal to 17% of the total initial invested amount. Class B investors are protected from losses by the 9.5% CIA certificates. The $57.2 million CIA certificates are interests in the trust subordinate in payment rights to class A and class B.

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

Under the available enhancement, class A withstands a 35% decrease in yield, a 40% decline in payment rates and chargeoffs increasing to over 30% and still makes full and timely payments of investor principal and interest. Class B sustains a 25% decrease in yield, a 30% decline in payment rates and chargeoffs increasing to more than 20% without suffering a principal or interest loss.

Class A and class B investors will receive monthly interest payments of 0.06% and 0.33% over one-month LIBOR throughout the revolving and accumulation periods and on the scheduled final payment date in October 2004, provided an early payout event does not occur. Early amortization of the bonds may result from a deterioration in asset quality, transferor insolvency or servicer default.

Fitch also expects to affirm its outstanding ratings assigned to existing master trust series indicating that series 1997-9 will not result in a ratings reduction or withdrawal.


New Electronic Loan Submission Program

Republic Mortgage Insurance Company (RMIC), one of the nation’s largest private mortgage insurance companies, introduced today at the 84th Annual Mortgage Bankers Association (MBA) Convention the Electronic Loan Submission(SM) (ELS) program.

ELS enables mortgage originators to transmit loan applications to RMIC using the Internet. ELS is a stand-alone software application that does not require custom programming by the lender.

RMIC is a leading provider of traditional contract underwriting and value-added links to Fannie Mae’s Desktop Underwriter and Freddie Mac’s Loan Prospector through its OASIS(SM) service. OASIS is used by mortgage brokers, retail lenders and correspondent lenders to secure underwriting decisions from Fannie Mae or Freddie Mac on behalf of the wholesaler.

With the integration of ELS and OASIS, loan originators will benefit from the elimination of manual forms and reduction of documentation. As a result, ELS will lead to a more timely and accurate response.

Electronic Loan Submission has gained support among many popular loan origination and point-of-sale software vendors. Testing is already complete with Byte Enterprises, Calyx, Contour Software, Genesis 2000 and Loansoft. Several other software vendors have also agreed to make ELS available to their users.

Andy Hiser, RMIC’s Management Service Group Manager, said, “ELS is a significant enhancement for our OASIS customers. We are making it easier for originators to submit loan applications for OASIS and mortgage insurance directly from their computer. By using the Internet, we can offer a lower cost, more affordable solution to our customers. The implementation of ELS will reduce duplicate data entry, eliminate faxed forms and provide a quicker turnaround.”

RMIC is a national, private mortgage insurer headquartered in Winston-Salem, North Carolina. RMIC’s private mortgage insurance coverage allows lenders to approve mortgage loans with smaller down payments making home buying more affordable. RMIC offers mortgage lenders an array of innovative products including ZIPS(SM) Monthlies, OASIS, Contract Underwriting, automated underwriting, customer training, quality services, and affordable housing programs.

For more information on Electronic Loan Submission or RMIC, contact Rob Showfety, Marketing Group Manager at (800) 999-RMIC (7642), fax (910) 661-2208 or write RMIC 4964 University Parkway, Winston-Salem, North Carolina 27106. Visit RMIC’s Internet site at [][1]