PayStar Tax Deal

PayStar Corporation, the nation’s leader in providing content-based Internet Kiosks, Prepaid and Wireless Banking Services, Cashless ATM devices and Prepaid Telecom Services is pleased to announce it has signed a Marketing Agreement with EZTaxMachine to market online tax preparation and refund products through PayStar’s extensive Global Virtual Network of Internet Access Terminals.

Online tax preparation and refunds have become the number one way for consumers to file taxes. It is estimated that over 40 million Americans will file their taxes online and over 95% will request electronic refunds. PayStar will capitalize on this very large market opportunity by providing free access to EZTaxMachine’s tax preparation Web site, in exchange for commission payments for each tax filing completed on PayStar’s Internet Access Terminals.

“I am pleased to have the opportunity to work with PayStar,” commented Michael Valentine, EZTaxMachine Founder and CEO. “My 20 years of experience in tax preparation and refund products combined with PayStar’s next-generation Internet Access Devices will prove to be a successful relationship.”

“Paystar gains an excellent revenue opportunity with the addition of EZTaxMachine Content,” stated W.D. Yotty, Chairman and CEO of PayStar.

About EZ Tax Machine

EZTaxMachine LP is a limited partnership based out of Reno, Nev., specializing in online tax filing service with over 20 years of experience in the tax filing industry. EZTaxMachine has enormous experience in helping clients minimize their tax liabilities and maximize their refunds from the IRS. They are an IRS approved e-file provider that has harnessed the power of the Internet to make tax filing easy.

About PayStar

PayStar Corporation, a premier global distributor of telephony and financial services, provides its customers with an array of enabling devices. PayStar is comprised of three fully integrated divisions: Commercial Telephony Switch Services, Consumer Internet and Telephony Products including prepaid cards, and Financial Services providing service and maintenance of Cashless Teller Machines (CTMs) and Internet enabled kiosks. PayStar is the location services provider (LSP) to retail merchants and is considered a “carrier’s carrier” for wholesale telecom services worldwide. Success is driven by internal sales as well as mergers and acquisitions. PayStar’s global strategy centers on expanding its network of thousands of locations that utilize state-of-the-art enabling devices.


Dallas-based CashWorks launched its ‘PayPort’check cashing solution this week. Initial pilot locations will be two Town & Country convenience stores in San Angelo, Texas which use Tidel ATMs. ‘PayPort’is the first check cashing solution to employ a clerk-assisted POS terminal as a transaction authorization device linked to a conventional ATM for the disbursement of funds. The CashWorks management team is headed by several executives involved with the now defunct InnoVentry. Ken Rees, president of CashWorks, previously served as COO and EVP of business development for InnoVentry and CashWorks Chairman Michael Stinson was a co-founder of Mr. Payroll Corporation,an InnoVentry precursor. Innoventry was jointly owned by Wells Fargo, Capital One and Diebold.

Fleet 4Q/01

FleetBoston announced this morning a loss for the fourth quarter of $507 million due to fourth quarter charges of $650 million primarily related to valuation adjustments in principal investing and loan reserve strengthening, and $538 million of after-tax charges related to Argentina. Fleet posted a 6% annual gain in receivables during 2001 while the issuer’s charge volume soared by 28%. Fleet reported 5,508,000 active accounts for the fourth quarter compared to 5,240,000 for 3Q/01 and 5,300,000 one year ago. For latest 4Q/01 portfolio stats for the nation’s top 350 issuers visit CardData (

4Q/01 3Q/01 2Q/01 1Q/01 4Q/00 Y/Y CHG
RECV $15.6b $14.6b $14.5b $14.1b $14.7b +6.1%
VOL $ 6.8b $ 5.8b $ 5.5b $ 4.3b $ 5.3b +28.3%
ACCTS 7.0m 7.2m 6.6m 6.5m 6.8m +2.9%
Source: CardData (


VeriFone announced yesterday a licensing agreement with Concord EFS for 200,000 ‘VeriCentre’ terminal licenses. Concord will use ‘VeriCentre’ to support multiple applications and terminals, expand functionality, and compress and download files. The ‘VeriCentre Appliance Management Suite’ is a complete, scalable and open client/server solution that helps processors and acquirers manage terminals, merchants’ needs and downloads, while generating new revenue streams. The latest product enhancements for Verix-based terminals enable two-way merchant communications, advanced data and information collection, and remote diagnostic capabilities.


Retail Decisions, a leading card-based transactions services business providing fraud prevention to the finance, telecommunications, retail and e-commerce sectors, announces the first ever national credit card fraud detection system for South Africa.

Retail Decisions also announces that ABSA Bank, Nedcor Bank and Standard Bank of South Africa have signed on to use its PRISM system. Deployed at a central location by Retail Decisions, the PRISM software will enable card issuers and acquirers to utilize a single infrastructure and achieve economies of scale, given that fraud is not a competitive issue but rather one on which all financial organizations need to cooperate.

PRISM uses a self-learning neural network fraud detection model using transaction data that will be provided by ABSA, Nedcor, Standard Bank, Diners Club and American Express, to monitor card transactions. The system compares each transaction with historical account patterns and confirmed fraud activity. When the transaction is deemed to be suspicious by the neural network, or if the transaction matches one of the client bank’s pre-defined fraud detection criteria, it is routed to a fraud analyst at the client bank for review.

The new service complements Retail Decisions’ existing service, Card Clear, which is used by the leading banks and retailers in South Africa. Card transactions are screened against the Industry Negative Card File (“INCF”), South Africa’s most comprehensive file of lost, stolen and delinquent cards. Retail Decisions will collate and update the INCF for the banks and retailers using information gleaned from the PRISM system. The INCF currently contains more than 2 million records from South African card issuers and over 5 million records from other international card issuers.

Carl Clump, Chief Executive of Retail Decisions, said today:

“We have consistently been looking to cross-market our whole range of services into new territories. The adoption of our PRISM service by key players in the South African banking industry is absolutely in line with this strategy.

“We are therefore very pleased to collaborate with ABSA, Nedcor Bank and Standard Bank to develop this country-wide solution. This new service uses state-of-the-art fraud detection software, powered by transaction information from three of the leading card issuers to assist them in minimizing payment card losses. We hope to be able to provide this service to additional banks over the coming months.”

“On December 7, 2001, we stated that the group had been performing in line with expectations and that the outlook for the financial year ended December 31, 2001 remained positive. This position has not changed and we intend to announce our preliminary results for the year just ended in March 2002.”


ReD PRISM, a division of Retail Decisions, Inc., is a leading provider of intelligent decision-support solutions for the financial services and e-commerce industries. ReD PRISM’s client/server products incorporate innovative pattern-recognition technologies ideally suited for data-intensive, real-time decision applications. The company’s products provide predictive fraud detection and case management for e-commerce fraud, credit, debit and retail (private-label) card fraud, as well as merchant fraud and money laundering.

About ABSA

Source: Absa Annual Report 2001

On January 26, 1991, the largest merger in South African banking history brought into being the Amalgamated Banks of South Africa Limited, the largest banking group in Africa, with R50 billion assets. The Group was renamed Absa Group Limited in 1997, and assets have grown to R197 billion.

About Nedcor

Nedcor is a leading South African financial services group. It is the country’s second largest banking group in terms of market capitalisation, with a value of over US$5billion. Listed on the Johannesburg Stock Exchange, Nedcor has assets of over US$21billion. The group’s activities encompass a wide range of services -from commercial banking, merchant banking and trusts, to related financial services.

About Standard Bank of South Africa

Rooted in Africa and with strategic representation in key sub-Saharan markets, the Standard Bank Group is a regional banking force with a global sweep. Its holding company, Standard Bank Investment Corporation Limited (Stanbic), is based in Johannesburg, South Africa. Stanbic is an internationally significant bank with assets of R309 billion and 30,000 staff spread over five continents. It provides world-class banking products to clients ranging from corporates, parastatal enterprises and governments to individuals needing simple savings facilities.

Standard Bank operates through four business units: Retail Banking for personal and small business customers within South Africa; Standard Corporate and Merchant Bank for business banking; Stanbic Africa; and International Operations.

ACE 4Q/01

ACE Cash Express reported Monday that its payday loan business through Goleta National Bank is its fastest growing business segment. The Company says it anticipates the number of GNB loan transactions in which participations are purchased, which was 989,000 in the last two quarters to reach approximately 460,000 in the current quarter. ACE’s total revenue for the quarter ending 12/31/01, increased 21%, to $54.7 million from $45.1 million. Net income for the quarter was $2.0 million. Check cashing fees increased 12% to $25.7 million and loan fees/interest increased 56% to $20.2 million. ACE also noted yesterday that it now has 171 self-service check-cashing machines deployed in 28 states throughout the country. For complete details on ACE Cash Express’ current and past performance visit CardData ([][1]).


ATM Money Orders

Travelers Express, the leading money order company in the United States, announced the start of a pilot program that allows retail customers to purchase money orders with cash or debit cards from automated teller machines at selected retail outlets.

“We’re excited to bring this new delivery system to the marketplace,” said Phil Milne, president and chief executive officer of Travelers Express/MoneyGram. “Customers and agents who sell our money orders have been asking for this kind of technology for a long time because their customers can now avoid lines and get even faster service.”

The pilot program enables retail customers to purchase Travelers Express money orders from Diebold ATMs. While most retail stores currently sell money orders at customer service counters, the new self-service technology allows customers the added convenience of buying money orders when customer service counters are busy or closed or in stores where money orders are not currently sold over the counter.

“This program effectively migrates traffic away from customer service counters to the ATM,” said Thomas W. Swidarski, vice president, Strategic Development & Global Marketing at Diebold. “Stores are now able to utilize personnel to focus on other value- added customer-service activities.”

Diebold also conducted a usability study with some 100 participants to assess the acceptance of the ATM’s expanded-transaction set, testing features such as ease-of-use, proper text messaging, ergonomics of the hardware and overall acceptance of purchasing money orders via a self-service device. Results of the study were extremely favorable, with many participants preferring to use an ATM rather than standing in line at a service counter to buy money orders.

Minneapolis-based Travelers Express is a leader in the payment services industry, providing services to both the retail and financial institution markets. The company’s MoneyGram money transfer service is available around the world in more than 150 countries. Travelers Express is a subsidiary of Phoenix-based Viad Corp, (NYSE:VVI), a $1.7 billion business services company. For more information, visit the company’s Web site at [][1].


AmEx 4Q/01

American Express Travel Related Services reported fourth quarter net income of $170 million, a 64% decline from 4Q/00. Weak business charge volume and higher provisions for losses were the major factors for the decline. However these factors were partly offset by the decline in marketing/promotion expenses and a lower payroll. Included in the 4Q/01 results are $219 million pre-tax ($140 million after-tax) of restructuring charges. Excluding the restructuring charge, TRS 4Q/01 net income would have been $310 million, down 34% from last year. Fourth quarter charge volume was down 5.5% compared to 4Q/00. Card loans have also slowed to an 11.5% annual growth rate, compared to 15.5% growth rate for 3Q/01. Charge-offs have soared 34% over the past twelve months while delinquency has increase nearly 18%. Thanks to lower funding costs, the net interest yield has dropped almost 25% and interest expense was down 35%. For complete details on American Express current and past performance visit CardData ([][1]).

American Express U.S. Card Portfolio Snapshot
4Q/01 3Q/01 2Q/01 1Q/01 4Q/00 Ann Chng
Volume $55.8b 54.4b $58.8b $55.6b $59.0b – 5.5%
Loans $32.0b 31.3b $31.2b $30.2b $28.7b +11.5%
Cards 34.6m 34.7m 34.6m 34.2m 33.3m + 3.8%
Delinq* 3.3% 3.2% 2.9% 2.9% 2.8% +17.9%
Losses 5.9% 5.6% 5.7% 5.1% 4.4% +34.1%
Yield** 9.6% 8.8% 8.6% 8.3% 7.7% +24.7%
* 30+ days past due; ** net interest yield
Source: CardData(



As previously announced on January
18, 2002, Ingenico Corp., a wholly owned subsidiary of Ingenico S.A., has
entered into a Development Services Agreement and Supply Agreement with First
Data Corp., a global leader in electronic commerce and payment

Ingenico, a worldwide leader in EFT POS terminal shipments and secure
transaction technology, provided additional information with respect to such

Under the Development Services Agreement, Ingenico has been engaged to
develop a feature-rich EFT POS terminal for First Data. It is expected that
the development of the terminal will be completed in 2003. Ingenico Corp. is
entitled to a project fee under this agreement.

Upon successful completion of the development project, Ingenico Corp. has
agreed to supply the terminals to First Data for a minimum five-year term.
Under the Supply Agreement First Data has committed to purchase a minimum
number of terminals.

About First Data Corp.


First Data Corp. (NYSE: FDC), with global headquarters in Denver, powers
the global economy. As the leader in electronic commerce and payment services,
First Data serves approximately 2.6 million merchant locations, 1,400 card
issuers and millions of consumers, making it easier, faster and more secure
for people and businesses to buy goods and services using virtually any form
of payment. With 28,000 employees worldwide, the company provides credit,
debit, smart card and stored-value card issuing and merchant transaction
processing services; Internet commerce solutions; Western Union(R) money
transfers and money orders; and check processing and verification services
throughout the United States, United Kingdom, Australia, Canada, Japan,
Mexico, Spain, the Netherlands, the Middle East and Germany. Its money
transfer agent network includes approximately 117,000 locations in more than
185 countries and territories. For more information, please visit the
company’s Web site at

About Ingenico


Ingenico S.A. is a leading provider of smart card secured transaction
products and systems with subsidiaries and partnerships all over the world and
customers in over 70 countries and territories. Its subsidiary Ingenico Corp.
provides hardware, software and services to the ever-expanding transaction
needs of the North American marketplace, which demands quality and requires
flexible and robust payment solutions. Our solutions include the Elite(TM)
terminal family, which is built upon the Unicapt(TM) architecture for optimum
application portability and secure multi-application acceptance, and was the
first to be EMVco approved. See for more information.


Novadigm, Inc., a leading provider of adaptive management solutions for
software and content in enterprise and Internet environments, today announced
that Italy’s largest bank holding company, IntesaBci, has licensed Novadigm’s
Radia products for 50,000 users.

“This substantial extension of IntesaBci’s previous use of Novadigm’s
e-wrap technology solutions underscores Novadigm’s belief that its
long-term franchise is best built upon a satisfied customer base,” said
Gerald Labie, Novadigm president and chief operating officer. “Novadigm is
focused on customer success and we are completely committed to helping our
customers derive significant business value from our adaptive management

Banca Commerciale Italiana (BCI), which merged on May 1, 2001 with
Banca Intesa, to form IntesaBci had been a Novadigm customer since 1995.

“Banca Commerciale Italiana had achieved impressive results from
Novadigm’s automated software management solutions, managing all branches
which sometimes have low bandwidth characteristics,” said Vincenzo Campanini,
Systems Operations & Network Manager for IntesaBci. “After the merger decision
in 2000, the challenge for IntesaBci’s expanded information technology group
was to select the best and most comprehensive software management solution for
all banks converging to a standard Windows environment. Our competitive
evaluation and benchmarks, along with BCI’s success in achieving business
benefits with Novadigm’s solution, resulted in our selection of Novadigm’s
Radia product family for automated software management of our entire
50,000 devices environment.”

Radia’s Web-based administration and choice of fully automatic or
self-service software management are proven to reduce administrative costs
while increasing end-user satisfaction. Radia customers consistently report
lower total cost of ownership and higher levels of service to users, compared
to manual processes or competing management products.

About IntesaBci

IntesaBci, the largest Italian banking group, has been created in 2001
through the merger between Banca Italiana Commerciale, Cariplo e Ambroveneto.
Three institutes, among the most prestigious and famous in Italy, which have
put together their own distinctive competences, the professionalism and
commercial networks to meet any customer requirement with products and
services of high quality level. The IntesaBci group also comprises various
savings banks and medium size local banks well established in the respective
territories, as Cariparma, Friuladria, Banca di Trento e Bolzano, in addition
of many services companies. For further information, please visit

About Novadigm

Novadigm is a leading provider of software and content management
solutions for enterprise and Internet computing environments that enable
organizations to reduce software management costs, speed time-to-market,
expand marketing channels and open new sources of revenue. Novadigm’s suite of
integrated products, based on the company’s e-wrap(TM) technology, work
seamlessly together as the only end-to-end solution that can efficiently,
reliably and scalably deploy and manage the full range of today’s software and
content, personalized for a wide range of computing devices, across virtually
any network. Novadigm customers — Global 1000 business enterprises, software
vendors and service providers around the world — report software management
savings of 80 percent or more, time-to-market improvements of 70 percent or
more, and reliability typically greater than 99 percent. For more information
on Novadigm, please visit or
call 800-626-6682.

Drexler 4Q/01

LaserCard manufacturer Drexler Technology reported net income of $720,000 on revenues of $5.3 million for the quarter ending Dec 31. LaserCard shipments rose 28%, to 1,545,000 cards from 1,206,000 cards the previous year and 18% above the previous record of 1,310,000 cards. Sales during the quarter included card shipments to the U.S. Department of State for southwestern border security; the INS; the U.S. Department of Defense; the Government of Italy (100,000 national ID cards); VISX, Incorporated; and 23,000 cards to China for two different programs. Last month, the Company raised ‘LaserCard’ shipment estimates for fiscal 2003 to 8 to 10 million cards compared to an estimated 5.3 million cards for fiscal 2002, ending March 31. For complete details on Drexler’s latest results visit CardData ([][1]).



American Express and China
International Travel Service announced the creation of the first
Sino-U.S. corporate travel joint venture in the People’s Republic of China.
The joint venture company, which has received all required government
approvals, will be known as CITS American Express Travel Services Limited. It
will be based in Beijing and begin its operations in April 2002. The
organisation will provide corporate travel management services and corporate
leisure travel services to clients from multi-national corporations, regional
and domestic companies throughout the country. Services provided by the new
joint venture company include obtaining and handling visas, international and
domestic flight reservations and ticketing, hotel reservations, convention
services and other land arrangements.

Charles Petruccelli, President, Global Travel, American Express Global
Corporate Services commented, “This is our first joint venture in the People’s
Republic of China, and it represents an important step forward for American
Express to better service customers in China with international standard
corporate travel services. Furthermore, we will be better able to meet the
needs of our multi-national clients who operate in, and travel to, China. This
partnership reinforces our already strong presence in the Corporate Travel
market throughout Asia where we are the largest provider of travel management

He continued, “By combining the strength of American Express’ global travel
management expertise and worldwide support with CITS’ extensive local
and operational expertise in the travel business in China, this new company is
exceptionally well positioned to capitalize on the growth potential of the
business travel industry in China.”

This new agreement represents another major step in American Express’ global
strategy to grow its Corporate Travel business. Petruccelli added, “American
Express is committed to expanding its corporate travel interests and this
alliance is very much in line with our strategy for growth. Over the last
years we have made several acquisitions and created joint ventures in the
Europe and other markets in Asia such as Hong Kong and Japan.”

American Express Global Corporate Services

American Express Corporate Services, which includes the American Express
Corporate Card, Corporate Travel and Corporate Purchasing Card, assists
companies in managing and controlling their business travel and purchasing
expenses. It is a unit of American Express Travel Related Services Company,
Inc., a wholly-owned subsidiary of the American Express Company — a
diversified worldwide travel, financial and network services company
founded in
1850. American Express is a leader in charge and credit cards, Travellers
Cheques, travel, financial planning, investment products, insurance and
international banking.

China International Travel Service

American Express has been in China for over 85 years. Cooperation between
American Express and CITS goes back more than two decades when CITS was
appointed as the ground service provider for American Express inbound group
tours in 1980. In 1993, CITS was appointed by American Express as Travel
Service Representative in China, providing travel services to American Express
customers. Since then, 18 CITS offices have been converted into American
Express Travel Service Representative Offices, covering 12 major cities in the