Responsible Bankruptcy

Two members of the House of Representatives introduced legislation yesterday aimed at correcting alleged flaws in the current personal bankruptcy code. ‘The Responsible Borrower Protection Bankruptcy Act of 1997’ , sponsored by Rep. Bill McCollum, R-Fla., and Rep. Rick Boucher, D-Va., will restrict personal bankruptcy options by forcing borrowers with the ability to repay at least 20% of their unsecured debts into a Chapter 13 filing, instead of a the full liquidation provided under a Chapter 7 filing. The proposed legislation also calls for significant changes in the time period between bankruptcy filings, implementation of administrative reforms and creation of a clearinghouse of bankruptcy statistics. Yesterday’s action is backed by the credit card industry which has been thwarted in its efforts to change the code by way of the National Bankruptcy Review Commission. The NBRC will present its recommendations to Congress next month.

Details

The Cash

NCR Corp rolled out its new low -priced ATM yesterday, called ‘The Cash’. The machine is designed for retail outlets and features a swipe card reader, two denomination currency dispenser and a Windows-based remote management software system, all for less than $5,200. NCR said the number of ATMs installed in U.S. retail locations nearly doubled last year, from 12,000 to 22,000. The company is promoting its ATMs by showing retailers that cash customers are more profitable because their transaction cost is lower: 7 cents per transaction compared to 43 cents for checks and 80 cents for credit card.

Details

People’s Second 97 Securitization

People’s today announced that People’s Bank Credit Card Master Trust has priced $500 million of five-year floating rate credit card asset-backed securities.

The securitization transaction features two classes of publicly traded securities (Class A and Class B) and a separate privately placed collateral invested amount.

The transaction, Series 1997-2, includes $425 million of Class A (senior) floating rate asset-backed certificates, $33.75 million of Class B (subordinate) floating rate asset-backed certificates and a $41.25 million privately placed floating rate collateral invested amount.The Class A certificates accrue interest at 13 basis points over the one month London Interbank Offered Rate (LIBOR). The Class B certificates accrue interest at 33 basis points over the one month LIBOR. Both the Class A and Class B certificates were priced at par. J.P. Morgan & Co. was the lead manager of the transaction; Goldman Sachs & Co., Lehman Brothers Inc., and Salomon Brothers Inc., were co-managers. The transaction is scheduled to close September 24, 1997.

The offering of these securities will be made only by means of a prospectus. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

People’s Bank, the largest independent bank headquartered in Connecticut, has assets of approximately $7.9 billion and 110 branches statewide. Based in Bridgeport, the 155-year-old institution offers diversified consumer and commercial financial services as well as investment services provided by its wholly owned subsidiary, People’s Securities, Inc. People’s is the leading mortgage lender in the state and the 26th largest issuer nationally of Visa and MasterCard credit cards.

Details

Card Capture Hits 2,940 ATMS

Card Capture Services Inc. (CCS) installed 340 new ATMs to its portfolio during the months of April, May and June of this year, bringing the total number of ATMs under CCS management as of June 30, 1997, to 2,940 nationwide.

As a result, the company posted an average of 868,930 transactions per month during second-quarter 1997, compared to an average of 466,944 transactions per month during second-quarter 1996. Second-quarter revenues for the four-year-old, privately held company exceeded $5.7 million.

Card Capture Services Inc. was incorporated in May 1993 in Portland, Ore. 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 unrealized markets, CCS is leading the wave of independent ATM deployments nationally. The company currently has 34 employees and a nationwide network of 45 independently contracted dealers.

Details

Chase Card Bonds Rated

Chase Credit Card Master Trust’s (formerly Chemical Master Credit Card Trust I) $250 million class A index amortizing asset-backed certificates, series 1997-3, are expected to be rated ‘AAA’ by Fitch. The corresponding $20.833 million class B floating-rate certificates are expected to be rated ‘A+’.

The certificates are backed by a pool of credit card receivables totaling $13.6 billion. The receivables pool was generated from accounts originated by both the former Chemical and Chase Manhattan banks. Series 1997-3 is the eleventh transaction issued from the trust.

The ratings are based on the available credit enhancement, the strength and quality of the Visa and MasterCard receivables pool, Chase Manhattan Bank’s servicing expertise and the transaction’s solid legal and cash flow structures. Credit enhancement totaling 16% of the invested amount is available for class A certificateholders through a 9% collateral interest (CIA) and 7% class B subordination. Class B benefits from the 9% CIA subordination.

Several stress scenarios were applied to the portfolio to determine appropriate credit enhancement levels for each class. The scenarios reduced portfolio yield and monthly payment rate assumptions to determine the level of defaults available enhancement can support. With the credit enhancement available, the class A certificates can sustain a simultaneous 35% decrease in yield, a 35% drop in payment rates and chargeoffs rising to a level of 32% and still make timely interest and full principal payments to investors. Class B withstands a scenario whereby yield drops 25%, payment rates drop 25% and chargeoffs rise above 22%.

Amortization events protect investors from a servicer default, a severe deterioration in asset quality or other adverse conditions that may affect the trust or specific series. If an amortization event occurs, an accelerated payout of principal will commence and investors may be paid off earlier or later than expected.

For this index amortizing series, the timing of principal repayment is controlled by another variable — 3 month LIBOR. On each distribution date of the controlled amortization period, which begins following the two-year revolving period, the amount of principal, if any, to be distributed to class A investors will be based on the prior month’s 3 month LIBOR rate. Therefore, timing of principal repayment is uncertain. According to a predetermined amortization table, investors could receive their full principal at the start of the amortization period, periodically throughout the amortization period, or not until the scheduled maturity.

Details

NDC Grows 29% Annually

National Data Corporation (NDC) today announced a 29 percent increase in first quarter earnings.

Earnings for the quarter ended August 31 were $10.6 million and $.38 a share. This compares to $8.2 million and $.30 per share for the same quarter during the last fiscal year.

Revenue increased to $120.1 million compared to $101.2 million for the first quarter of last year, a 19 percent growth. The company reported a 25 percent revenue growth in its Health Care segment; 22 percent in the Integrated Payment Systems business; and 11 percent in its Global Payment Systems subsidiary.

Earnings before interest, taxes, depreciation and amortization were $29.8 million or 25 percent of revenue. Operating income totaled 16.3 percent of revenue versus 13.8 percent during last year’s first quarter – reflecting continued productivity gains. Cash flow from operations was at an annualized rate of $84 million.

During the quarter the company took action to enter the health care data base management business and established a base to pursue health care opportunities in Europe through acquisition of two UK-based pharmacy systems companies. It also announced a number of new health care network information service alliances.

With these transactions, health care will exceed 50 percent of total revenues.

In the payment systems portion of its business NDC introduced new outsourcing services that will broaden its market presence and sources of future revenue growth. Market reaction has been positive.

“These results are particularly gratifying,” said Robert A. Yellowlees, NDC chairman and CEO. “They extend the trend of the last four years that has produced strong earnings growth combined with the predictability from a high recurring revenue stream. They show the ability of our management team and employees to produce quality earnings while making near-term investments in new products and distribution channel expansion for long-term growth.

“NDC will continue to proactively expand its franchise through both internal programs and value-added strategic acquisitions,” said Yellowlees. “We remain optimistic about the breadth of new market opportunities worldwide. The tremendous talent of our people, augmented by the broad reach of our network infrastructure, positions us well to take advantage of these opportunities.”

National Data Corporation is a leading provider of value-added 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 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 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.

Details

DigiBuy Service

Maagnum E-Commerce Services, a leading Internet commerce provider, today announces the launching of its new online order fulfillment service for digital goods merchants, DigiBuy: The Digital Marketplace ().

With DigiBuy, Maagnum has established a new trend in the shareware and software payment processing market by being the first to provide authors with an immediate e-commerce solution. By bringing a new level of efficiency and self-service to the Internet, time to market is reduced, allowing authors to literally begin accepting secure credit card payments in about 5 minutes.

DigiBuy enables publishers of shareware, software, digital art, and other electronic goods to affordably and easily sell their products electronically over the web. Combining secure real-time processing and credit card authorization with the most advanced registration system on the web today, DigiBuy allows publishers to instantly:

— Feature their product in the DigiBuy Marketplace

— Accept credit card orders directly from their web site

— Increase sales through secure Internet processing

— View transaction logs online

— Update product information online

DigiBuy’s complete service includes: secure real-time processing, credit card authorization, CreditScan fraud detection system, email order notification, digital receipt generation, author specific order forms, convenient author administration access, immediate activation, and reliable monthly transaction reporting.

“What sold me on DigiBuy was its reasonable cost, professional appearance, fast turnaround, and self-administration,” said Tony Leung of Arcosoft, Inc. “It doesn’t turn off the buyer with membership fees. Three days after first hearing about DigiBuy, we made our first sale.”

“Some others offer similar services, but at rates two or three times more than DigiBuy,” said Rob McCormack, President of Money Tree Software Company. “The ability to add new products and update others on-line in real time is what I was looking for all over the web. I am canceling my other on-line service and will be using DigiBuy exclusively.”

For publishers, DigiBuy offers a simple, secure way to begin accepting real-time credit card transactions immediately. For customers, DigiBuy offers a convenient place to purchase shareware on the Internet. Featuring the most popular platforms and hundreds of categories, DigiBuy is a comprehensive resource for those looking for the latest shareware and software titles on the web. The DigiBuy system is also customer friendly. The entire order process is smooth and efficient, even providing the customer with a timely digital receipt.

By taking advantage of DigiBuy’s unique service, authors of all types of digital goods gain a professional, flawless electronic commerce system that easily integrates with their existing web site. DigiBuy is the only online registration site that provides an instant solution, avoiding the complexities and high cost normally associated with e-commerce.

For more information about DigiBuy: The Digital Marketplace, please call Maagnum E-Commerce Services at 203-699-8225, email info@digibuy.com, or visit our web site at .

Maagnum E-Commerce Services () provides end-to-end commerce solutions for retail, software, and direct marketing companies of any size, including online order processing, credit card authorization, catalog management, warehousing, fulfillment, telephone, and/or fax order processing service.

Details

TRANZ Gears Up

U.S. Wireless Data, Inc. announced today manufacturing and production orders in its preparation for the national launch of its TRANZ(TM) Enabler credit card processing units through GTE Wireless.

The company has ordered from its primary third party manufacturer the production of approximately 4,000 TRANZ Enabler credit card processing units for delivery over the next 30 days. In addition, the company has ordered 1,700 units of its POS-50 and POS-500 fully integrated mobile credit card processing units. Lastly, the company has placed orders for 7,000 CDPD modems for delivery around the end of 1997, all of which will be component parts used in the production of TRANZ Enablers, POS-50 and POS-500 units in the first quarter of 1998.

Commenting on the production orders, Evon Kelly, CEO of USWD, stated, “We are enthused to be able to announce these production orders as we commence our joint operating and marketing agreement with GTE Wireless for the distribution of our wireless credit card processing technology. We are anticipating a very strong demand for the TRANZ Enabler and have secured relationships with exceptional third party manufacturing companies to support such demand.”

U.S. Wireless Data recently announced an exclusive joint marketing and operating agreement with GTE Wireless, the wireless business of GTE Corp., to distribute USWD’s TRANZ Enabler wireless credit card processing system using GTE’s cellular CDPD network. GTE will begin offering the USWD TRANZ Enabler to merchants this fall as part of its “Wireless Merchant Program.”

USWD’s proprietary enabling technology, TRANZ Enabler, converts a merchant’s existing dial-up TRANZ VeriFone credit card terminal into a high-speed wireless terminal. It gives merchants a faster, cheaper way to transact business. The wireless transaction takes 3 to 5 seconds vs. 11 to 20 seconds with a dial-up service.

Going wireless means the merchant no longer needs a dedicated or shared telephone line to carry transaction traffic, thereby eliminating delays, busy signals and the cost to install or pay for monthly telephone service. And because it’s wireless, the merchant can transact business anywhere the customer wishes to buy, instead of being confined to a service counter with a telephone line.

U.S. Wireless Data, Inc. has developed, tested and is now delivering compelling new proprietary products, programs and standards to the transaction processing and credit card industry which utilize Cellular Digital Packet Data (“CDPD”) wireless networks. USWD delivers the fastest and most cost-effective transaction processing solution to retail merchants in the United States today — wired or wireless.

USWD will generate recurring revenue from every transaction processed by merchants who utilize the company’s wireless technology. The company’s strategy will be to deploy its technology through marketing and partnership agreements with major cellular phone companies, regional and community banks and its own sales force.

Details

Smart Frequent Flyer Card

The world’s first smart card based Frequent Flyer Program was launched recently by the French airline AOM. The program uses High Co Technologies’ XLS multifunction smart card system and Schlumberger’s Payflex microprocessor card.

After five months of operation at all AOM destinations worldwide, the loyalty program is already fulfilling its goals.

How the program works:

AOM’s smart card FFP is targeted toward frequent flyers, essentially replacing the company’s existing ‘Carte Capital’ and extending it to new passengers. Since the program was launched, AOM has registered a high demand for new membership, well beyond forecast.

AOM’s ticket and check-in counters have been equipped with 85 bank card type payment terminals with High Co Technologies’ loyalty software.

When the passenger checks in, his/her Carte Capital is credited with a number of points based on several parameters such as destination and class. Promotional campaigns can be launched at any time to offer bonus points – for example, during the month of May 1997, AOM doubled the number of points credited on all domestic flights.

The total number of points is stored in the card’s microprocessor chip.

At any time and at any AOM sales counter, points can be debited in exchange for free tickets or instant upgrades.

Soon, points will also be accepted by AOM partners such as car rental companies, taxis, hotels, restaurants, entertainment centres and other airlines worldwide.

How AOM customers benefit:

— Points are credited and debited instantly each time the card is presented at a terminal.

— Points stored in the card’s electronic purse can be exchanged for rewards at any time and at any terminal belonging to AOM or a partner.

— The terminal prints a detailed loyalty statement after each transaction, showing the full status of the cardholder’s Carte Capital account (prior balance, points earned with this transaction, new balance, promotional and incentive messages, etc.).

How AOM benefits:

— Carte. Capital relies on the security provided by Schlumberger’s Payflex smart card technology.

— Loyalty statements printed at each transaction are used as a direct marketing tool.

— Printed receipts also eliminate the need to mail out costly account balance statements, resulting in significant savings on direct mailing expenses.

— The program functions on a very light and cost effective IT infrastructure.

— XLS technology for multifunction smart cards will be enhanced to allow for electronic ticketing capabilities.

Jean-Marc Janaillac, Co-General Manager of AOM and head of sales comments: “Because loyalty statements are instantly printed at each transaction, High Co’s XLS system allows for improved service to our customers, while at the same time doing away with frequent statement mailings and the related call centre necessary to answer the inevitable questions concerning these statements. For us, the smart card clearly represents major cost benefits when compared to the magnetic stripe card.”

Jacques Cosnefroy, General Manager of Schlumberger’s

Card Division adds:

“Thanks to our Payflex microprocessor card with High Co Technologies’ XLS software, Carte Capital represents a showcase for the way smart cards can build customer loyalty in the airline sector. Schlumberger is proud to be a partner in this project

– a world-first and a model for other companies.”

Bernard Chevalier, General Manager of High Co Technologies said:

“Extending the XLS open platform and interactive capabilities to AOM’s partners will greatly reinforce the value of Carte Capital for AOM’s customers. Through the combined efforts of AOM and its participating partners in the Carte Capital program, cardholders will soon enjoy additional value that has no equivalent on the market today.”

BACKGROUND INFORMATION

AOM is a French airline company, founded in 1992. The company has experienced rapid growth on long- haul flights to French overseas holdings and territories, as well as Australia, California, Cuba, Sri Lanka, and other destinations. More recently, AOM has developed domestic flights from Pads to Marseilles, Toulon, Nice and Perpignan. AOM’s strategy is focussed on service quality and innovation. High Co Technologies is a software company specializing in smart cards and terminals. The company has designed and developed the first open system for multi-function smart cards specifically applied to loyalty programs. Groupe High Co is listed on the Paris Stock Exchange’s Nouveau March& Revenue reached 110 million FF in 1996.

Schlumberger Electronic Transactions, a division of Schlumberger Ltd (NYSE-SBL) provides cards, terminals and management systems in a wide range of applications using magnetic stripe cards and smart cards. As the leading supplier to the electronic transactions industry, the company provides cards and systems to telecommunications, retail sales, banking, service station, car-parking, transport, healthcare and community (e.g. universities) sectors. In 1996, the company produced almost 500 million cards. The private and public sectors are turning increasingly towards cashless and paper-free transactions. Present in over 100 countries, Schlumberger has design and production facilities in Europe, North America, South America and Asia, and the Electronic Transactions division offers various products and services in the domain of financial and secure data transactions.

Details

Conservative Students

A new study by NJ-based Student Monitor indicates traditional goals of a solid marriage, good friends and prudent personal financial management are tops among today’s college crowd. The report also shows 60% of students use ATM cards, 40% use credit cards and 25% use telephone calling cards, on a weekly basis. VISA released more results of its ‘Scholars & Cents’ study yesterday which showed that 94% of college students recognize the importance of establishing a good credit rating. VISA said that while their study confirms that students are responsible users of credit, the association is going forward with plans this fall to launch a two-tiered education program for college students. VISA also released “Top Ten Tips for First Semester Finances yesterday. Meanwhile MasterCard kicked off an national advertising campaign this month, via MTV and magazines, to warn college students of the dangers of poor credit card management.

Details

Diebold Consolidates Intl Sales

Diebold, Incorporated announced today that it has consolidated its international sales and service operations and promoted Michael J. Hillock to group vice president of international sales and service (ISS). Hillock will oversee all of the company’s international operations, which were formerly divided between two organizations: Europe, Middle East and Africa (EMEA) and Canada, Asia/Pacific and Latin America (CAPLA).

As part of the streamlined international sales and service organization the following positions will report to Hillock:

Ernesto R. Unanue, vice president and managing director, Latin America; the vice president and managing director for EMEA and the vice president and managing director for Asia/Pacific, both to be named later; Edwin Anderson, vice president, international service operations and support; and Jay Jaworski, manager, international finance. A director of international sales operations and support, a new position, will also be named later.

`This new organization represents the next step in our evolution as a global company,’ said Gregg A. Searle, president and chief operating officer. `We are consolidating the activities necessary to continue our aggressive expansion of acquisitions, joint ventures and partnerships outside the United States.

Searle added, `Mike Hillock’s experience makes him well suited for this new position. In his 19 years of service at Diebold, Hillock has been deeply involved in growing Diebold’s international operations.’

From 1986 to 1988, Hillock lived in Hong Kong and ran Diebold’s Asia/Pacific operations. He returned to the United States to become a division vice president where he ran a successful sales and service organization in the Eastern Division. Most recently, Hillock spent five years in London responsible for Diebold’s EMEA operation, including a one- year assignment inside IBM EMEA, managing its self-service business.

Diebold Canada, formerly a part of the CAPLA organization will be consolidated with North American Sales and Service (NASS). `The inclusion of the Diebold Canada organization into NASS will provide for a more streamlined and integrated organization that truly represents North American Sales and Service,` said Searle.

Diebold, Incorporated, (NYSE: DBD) headquartered in Canton, Ohio, is a global leader in providing card-based transaction systems, security and service solutions to the financial, education and healthcare industries… Founded in 1859, the company develops, manufactures, sells and services automated teller machines, campus systems, smart card systems, electronic and physical security equipment, automated medication dispensing systems, integrated systems solutions, software and supplies.

Details

ChextraBanking Online Launched

First Bank today unveiled ChextraBanking Online, its new home banking product. ChextraBanking Online, which uses the award-winning MECA Managing Your Money(R) software, will allow customers to access account information, review balances, see when checks have cleared, transfer funds between accounts, pay bills online, and pre-schedule bill payments from their PC.

“We are committed to offering our customers the widest range of products and services possible. This service will give our customers a quick, reliable, and convenient way to handle all of their banking needs from their home or office 24 hours a day,” said Bill Veeneman, Online Services. Special features include an e-mail feature that enables customers to send comments or questions to First Bank customer service representatives at any time, and the ability to create and manage budgets, track investments, and do tax and retirement planning.

“ChextraBanking Online is competitive with any home banking service on the market,” Veeneman said. Potential customers can stop in any First Bank or Colorado National Bank branch for a demonstration, or visit the company web site at .

“First Bank has developed a very complete and secure home banking service using MECA’s Managing Your Money(R) software,” said Paul Harrison, president and CEO of MECA Software, L.L.C. “ChextraBanking Online will allow First Bank to meet its customers personal banking, budgeting and investing needs morning, noon and night.”

ChextraBanking Online is available to customers for $5.95 per month, with the first 30 days free. The service includes all the basic home banking features previously mentioned and up to 15 automatic bill payments per month. The software is provided free of charge to First Bank customers who sign up for the service. To use the product, customers need a PC (386 or higher) with Windows 3.1 or Windows 95, four megabytes of RAM, 12 megabytes free hard disk space, and a modem with a phone connection.

Minneapolis-based U.S. Bancorp (NYSE: USB), is the result of a merger between First Bank System, Inc. of Minneapolis and U.S. Bancorp, formerly headquartered in Portland, Ore. With $72 billion in assets, USB is the 14th largest bank holding company in the nation operating more than 1,000 banking offices in 17 states: Minnesota, Oregon, Washington, Colorado, California, Idaho, Nebraska, North Dakota, Nevada, South Dakota, Montana, Iowa, Illinois, Utah, Wisconsin, Kansas, and Wyoming. The company provides comprehensive banking, trust, investment and payment systems products and services to consumers, businesses and institutions. It operates a network of 4,500 ATMs throughout the U.S. and 24 hour, seven days a week telephone customer service centers. The company is the largest provider of Visa corporate and purchasing cards in the world and one of the largest providers of corporate trust services in the U.S.

MECA Software, L.L.C., provides customized, branded software solutions to financial services institutions to enable their customers electronic access to account status information, product information, and financial transactions. Managing Your Money(R), MECA’s award-winning software, is the foundation for such personal computer-based solutions and provides users with effective personal financial planning management tools as well as remote access to financial services.

Details