Dovetail Hires Pyles

Dovetail Systems Inc., the provider of advanced payments processing applications and intelligent messaging solutions to the global financial services community, has announced another key addition to its management team. Warren S. Pyles has been appointed as Sales Executive, bringing with him over 25 years experience in marketing, sales and technical management in the computer and communications-based technologies in the Financial Services Industry.

Warren Pyles joins Dovetail after a four-year period with ACI Worldwide, Inc. As General Manager for Sales, he was responsible for all sales in the Americas (North and South) of the Corporate Banking software product line. Before this, Mr Pyles held the position of Vice President, Sales and Marketing at MINT Communication Systems, Inc., responsible for the business development and growth of middleware communications software to major banks, brokerages and exchanges. Prior to MINT, he was Vice President, Sales, for Logica Inc where he was responsible for worldwide sales of advanced Funds Transfer Systems and related communications software to major banks, brokerages and exchanges.

A BSEE graduate from Carnegie-Mellon University, Mr Pyles began his career at The Diebold Group, Inc, where, as a Staff Consultant, he was accountable for the development and fulfillment of computer-related business development consulting assignments within the US Fortune 500 corporations. He was promoted to Director after 12 months.

Mr Pyles joins a long list of high-level strategic hires for Dovetail. His appointment follows that of Janet Lewis, ex-SWIFT, to Senior Vice President and Director of Sales, and Kevin M Scully, ex-president of NEON, to Chief Executive Officer. Barry Tooker, formally of IBM and an experienced senior technical consultant to global banks and software firms, joins Dovetail as Senior Vice President Product Management.

Kevin Scully, CEO of Dovetail Systems, says:

“We are delighted to have attracted someone of Warren’s calibre to Dovetail. His experience and knowledge of the financial services industry will be a valuable asset in firmly establishing Dovetail as the premier provider of advanced payments processing applications.”

In addition to the news of Mr Pyles’ appointment, Dovetail has announced the opening of its New York office. The office, based at 30 East 39th Street, will accommodate the Dovetail Systems sales and marketing team. Product research and development will remain at Dovetail’s company headquarters in New Jersey.

About Dovetail Systems Inc.

Dovetail provides advanced payments processing applications and intelligent messaging solutions to the global financial services community. Through the use of the latest Application Server techniques, Dovetail’s unique technology dramatically improves the speed, reliability and security of the electronic transfer of funds between banks and other institutions. Dovetail continues a proud, three-decade history of delivering mission-critical payments and messaging solutions based upon the Intelligent Transaction Processing(tm) technology developed by the founding partners. These solutions include large-scale message switches and gateways, as well as funds transfer, cash management, and foreign exchange trading and netting systems. For more information, please visit: [www.dovetailsys.com][1]

[1]: http://www.dovetailsys.com/

NPC Hires Munto

National Processing Company announced it has named Timothy L. Munto senior vice president of Multi-Lane Retail, reporting to Mark Pyke, executive vice president of Merchant Services. Mr. Munto’s responsibilities include the development and execution of the company’s strategy to drive the continued growth in the retail, petroleum and supermarket segments.

Prior to his move to NPC, Mr. Munto was responsible for managing the revenue and profit objectives of the Retail segment for eFunds SCAN(SM) (Shared Check Authorization Network), one of the nation’s leading check authorization networks serving retailers. Mr. Munto was employed with eFunds Corporation, formally Deluxe Electronic Payment Systems, Inc., for ten years. He also served, for ten years, as vice president of retail sales for Bank One, Dayton, Ohio where he was responsible for managing the business development efforts of their issuing and acquiring bankcard programs.

“With more than fifteen years of retail payments industry experience, Tim brings a wealth of knowledge, experience and a strong track record in the retail industry,” said Mark Pyke, executive vice president of Merchant Services. “Tim is considered a veteran in the industry and we welcome his expertise to NPC.”

Mr. Munto is a graduate of the University of Dayton with a master’s degree in Business Administration. Industry affiliations include membership in the National Retail Federation, Food Marketing Institute and the International Mass Retail Association. Mr. Munto has also been invited by The Board of Governors of the Federal Reserve System to participate in the Payments Systems Development Committee.

NPC president and chief executive officer Thomas A. Wimsett said, “The Multi-Lane Retail segment will continue to be vital to the success of our company. Tim arrives in the midst of exciting times in both the marketplace and NPC. We expect great things from the Retail Segment under Tim’s leadership.”

Mr. Munto said, “I am proud to be a part of a great organization that has set the standard for more than 30 years. This is a time of great evolution in the industry and NPC stands in the center ready to meet the challenge. The vision for NPC’s Retail segment is to continue its growth and leadership position in the industry by providing our current and prospective customers with innovative solutions and world-class customer service. The move to NPC has been exciting for me. I look forward to leading NPC’s Retail Segment and continuing the Company’s commitment to providing superior products and outstanding customer service.”

About NPC

NPC is a leading provider of merchant credit card processing and corporate outsourcing solutions. NPC supports over 500,000 merchant locations, representing one out of every six Visa(R) and MasterCard(R) transactions processed nationally. Approximately 88 percent of the company is owned by National City Corporation, a Cleveland based $85 billion financial holding company. Additional information regarding NPC can be obtained at [http://www.npc.net][1].

[1]: http://www.npc.net/

Citigroup Associates

Citigroup solidified its #1 rank in the bank credit card industry this morning with the announcement that it is acquiring Associates First Capital for $31.1 billion. The merger between the global banking concern and a finance company will produce a U.S. credit card portfolio with approximately $88 billion in receivables or a market share of about 18%. The acquisition will also provide Citigroup’s card unit with a formidable sub-prime competitor. Citigroup, which has scheduled a news conference at 10:30 a.m. this morning, says one of the attractions of the deal is The Associates’ strong presence in Japan, where it is the fifth largest consumer finance company, and in Europe, where it has more than 700,000 customers. At mid-year Citigroup held $79.1 billion in U.S. card receivables and 42 million gross accounts, according to CardData ([www.carddata.com][1]). Associates had $7.25 billion in card receivables and slightly more than 9 million gross accounts at the end of 2Q/00. The transaction is expected to close at year end and will be accounted for by the pooling-of-interests method and will be tax-free to holders of Associates common stock. Following consummation of the transaction, Associates shareholders will own approximately 10% of Citigroup’s common shares.

[1]: http://www.carddata.com

OCLS

Omaha-based Amerenhance unveiled a new online customer loyalty system for the card and banking industry this week. The new system, called ‘OCLS’ provides complete Internet access for managing and redeeming award currency in a mileage or point accumulation loyalty program database. Unlike proprietary loyalty programs such as ‘MyPoints’ and ‘WebMiles’, the Amerenhance system can be branded by each issuer to facilitate any mileage or point-based loyalty program. OCLS is also designed to be 100% compatible with any processor’s interface including FDR, TSYS, even an in-house platform. Currently in beta at First USA Bank on the highly successful ‘Value Miles’ cobrand look-alike loyalty program, OCLS will be available to the card industry this fall.

Europe Internet

Credit card marketing is set to take off in Europe as the Internet reaches critical mass overseas. The UK is leading the way in Europe with 30.8% of its population connected to the Internet, representing 7.3 million households. Germany comes next with 24.7%, or 8.5 million households, followed by France with 16.6%, accounting for almost 4 million households online. According to London-based NetValue, the actual number of home Internet users in the UK now stands at 10.20 million, Germany at 10.47 million and France at 5.81 million. However, the most dramatic change is the split by gender: in July, a 40.5% of Internet users in the UK were women with 34.8% in Germany and 37.4% in France.

E-Bill Giant

It’s official – Microsoft, First Data, Citibank and CheckFree have completed their merger of TransPoint into CheckFree. On Friday, CheckFree shareholders approved the issuance of 17 million shares of CheckFree Common Stock in connection with the merger. Effective this morning, Microsoft and First Data each have gained a seat on CheckFree’s Board of Directors. Named to the positions are Lewis Levin, who in addition to having served as president and CEO of TransPoint is a VP at Microsoft, and Ric Duques, chairman and CEO of FDC. The company’s main goal is integrate CheckFree’s electronic billing and payment technology with technology developed by TransPoint to create a common platform to simplify the creation and deployment of electronic bills on the Internet. As part of last week’s transaction, CheckFree has gained an exclusive five-year relationship with Microsoft to provide electronic billing and payment technology used in applications and services that Microsoft develops. During that time, Microsoft will guarantee a minimum of $120 million in revenue to CheckFree. First Data also has entered into a five-year relationship with CheckFree, during which time First Data and CheckFree will market and use each other’s products and services. First Data will provide at least $60 million in revenue and/or cost savings to CheckFree. First Data will sell CheckFree’s electronic billing and payment services to its customers. CheckFree has also agreed to use FDC’s electronic biller connections and range of electronic payment products and services. Immediately before closing the transaction, Microsoft, First Data and Citibank collectively contributed $100 million to TransPoint. CheckFree said it will hold a new conference Thursday to detail the impact of the transaction. (See CF Library 2/16/00)

Austrian Olympic Card

IDT Corporation is proud to announce that IDT’s European subsidiary, IDT Europe B.V.B.A., has been selected by the Austrian Olympic Committee as the official carrier and prepaid phone card supplier for Austria in the 2000 Olympics to be held in Sydney, Australia.

IDT is a leading multinational carrier, telephone company and Internet Service Provider.

“It’s great. I feel like we’ve just won an Olympic Gold Medal in telecommunications,” said Howard Jonas, IDT’s Chairman and CEO. “Clearly, this means that the European community recognizes IDT as one of the leading telecommunications companies on the continent.”

As part of its official duties, IDT will produce and supply the Austrian Olympic Committee with commemorative prepaid phone cards bearing the official seal of the Austrian Olympic Committee and both the Sydney 2000 and IDT logos. The phone cards will be sold by the Austrian Olympic Committee throughout Austria and southern Germany.

“Since establishing IDT Europe two years ago, we’ve worked relentlessly at building out our network and providing the highest quality and most reliable communications services to the people of Europe,” said Yoav Krill, IDT’s Senior Vice President and Managing Director for Europe.

The phone cards will be made available in varying denominations of the Austrian Shilling, and may be used throughout Europe and Australia to call just about anywhere in the world.

In July of this year, IDT Europe announced that its Unity card, the Company’s flagship pan-European calling card product, was expanding into four additional countries, including Belgium, Ireland, Sweden and Spain. This expansion made IDT’s prepaid phone cards available in nine European countries and will enable it to continue to be one of the most successful prepaid calling cards in the European market.

“IDT is very pleased with its success in the European marketplace, and we hope to achieve similar success throughout the world,” said Jim Courter, IDT President and Vice Chairman. “Our goal is to be the global leader in telecommunications.”

IDT Europe B.V.B.A., through its subsidiaries and affiliates, has offices in nine European countries and provides its customers with competitively-priced wholesale carrier services and retail products. It also operates a network of data center operations in major European business centers and has announced plans to begin operations in Milan and Stockholm later this year. IDT is a leading facilities-based multinational carrier that combines its position as an international telecommunications operator with its experience as an Internet service provider to provide a broad range of telecommunications services to its wholesale and retail customers worldwide.

Through its own telecommunications backbone and network infrastructure IDT provides its customers with integrated and competitively priced international and domestic long distance, pre-paid calling cards, Internet access and Digital Subscriber Line (DSL) service. The Company’s Ventures division is developing several innovative telecom and Internet related businesses.

Moneybox Hits 1000

Moneybox Corporation Ltd, the UK market leader in convenience cash machines or Automated Teller Machines announced that it has passed a major corporate milestone by installing its 1000th ATM.

The 1000th ATM has been installed in an independent convenience store in West Hampstead, which is situated close to a mainline train station and underground station to serve obvious customer demand. Up until now, people have regularly entered this particular store and asked for the location of the nearest bank ATM, to be told that they will have to walk for 10 minutes to get cash.

Moneybox is now one of the top 10 largest ATM networks in the UK – with more ATMs available than many banks and building societies. The Company also reported that since its launch 14 months ago, over 6 million transactions have now taken place through its ATMs.

Commenting on this announcement, Paul Stanley, Managing Director of Moneybox, said: “Passing the 1000th ATM mark by the summer of 2000 has always been our primary target and we are delighted to have achieved it. With the extent and range of our network, coupled with our LINK membership, Moneybox has created a solid platform from which to grow well beyond the original targets set, and we intend to install at least another 1,000 ATMs.

“In addition we have been extremely sensitive to ensure that we build a viable long-term business and our sites enjoy high levels of transactions volumes. Going forward we believe there is considerable capacity in the market not only for ATMs, but also for the related services and products available as a result of the increased functionality of the technology. We will be making further announcements about these developments in the near future.”

Oberthur Macau

Oberthur Card Systems, one of the world?s leading suppliers of smart cards, Visa & MasterCard cards, announced last week its success in winning a contract to supply Companhia de Telecomunicações de Macau S.A.R.L (CTM) with SIMphonIC 32K cards for use in Macau Special Administrative Region of China.

In a record 3-month application development project – from inception to launch – Oberthur has delivered the first SIM toolkit and Mobile Banking application in Macau. Oberthur?s award-winning SIMphonIC card is the world?s first Java-powered SIM Toolkit card and the first in the market to comply with the industry recognized standards. By using the large capacity and efficient memory allocation provided by the 32K version tailored specifically to CTM, multi-applications and value-added services including mobile banking, wireless information, stock and margin trading services can be delivered securely to subscribers? mobile phones.

Oberthur?s card solution will enable CTM?s partnering banks to link a full portfolio of banking services to their customers in Macau.

This contract highlights Oberthur?s lead in introducing new mobile commerce initiatives to the Asian market, which has become the largest growth market for mobile commerce with mobile subscriptions reaching over 100 million users. It is the latest in a series of successful launches in the region including:

· Mobile banking and stock trading services through Cable & Wireless HKT,

· Mobile betting services with the Hong Kong Jockey Club,

· Mobile stock trading in Taiwan through WAYIA,

· ?Information on demand? service in Singapore through Mobile One.

Oberthur Card Systems? General Manager in Hong Kong and Macau, Euan Tennant said, ?Thanks to Oberthur?s expertise in providing innovative mobile banking solutions, subscribers in China are now being offered the most sophisticated smart card technology available. This contract with CTM is testament to Oberthur?s position as the leading authority in mobile commerce and mobile banking and further strengthens our growing presence in Asia. The experience we have through setting up similar projects in Hong Kong ensures that Oberthur Card Systems is the only partner to offer tailor-made mobile banking solutions that could be delivered to market quickly and efficiently.?

About Oberthur Card Systems:

Oberthur Card Systems (Code SICOVAM 12413) is a global leader in the area of smart cards, specializing in the design and production of solutions based on microprocessor cards (smart cards), memory and magnetic stripe cards, as well as associated services: Personalization and Card Management. Oberthur has a large portfolio of products and offers solutions in the areas of banking, pay TV, mobile telecommunications, electronic commerce, security, health care, and transportation.

Number one supplier of VISA and MasterCard cards in the world, the company is also world leader in the development and marketing of solutions for mobile and electronic commerce. It is also the first global supplier of cards for pay TV. Firmly committed to open standards, Oberthur backs Java Card, Open Platform, MULTOS and Windows for Smart Cards, and it is the first supplier of Java cards.

Oberthur Card Systems employs more than 3,000 people worldwide. The international reach of Oberthur is ensured through 30 sales offices and 13 manufacturing sites around the world.

Internet sites: [http://www.oberthurusa.com][1] ; [http://www.oberthurcs.com][2]

About Companhia de Telecomunicações de Macau

Companhia de Telecomunicações de Macau S.A.R.L. (CTM) is a leading telecom operator in Macau and offers a full span of high-quality telecom services at competitive prices. Its comprehensive scope of services covers fixed telephone and mobile phone services, IDD and prepaid calling card services, Internet, e-commerce, on-line shopping, and many others. As an innovative company, CTM commits new investments on a continuous basis to improve the telecom infrastructure of Macau and meet the ever-changing demand of the local population for advanced communications services.

[1]: http://www.oberthurusa.com/
[2]: http://www.oberthurcs.com/

eCharge CFO

eCharge Corporation, the global online payments company, announced that Douglas Fletcher has been promoted to chief financial officer. Mark Tremont, who previously served as CFO, remains as chief operating officer of eCharge Corp. as well as chairman of eCharge Bank.

Fletcher joined the company in earlier this year as vice president of finance after a 13-year career at Citigroup, most recently as managing director and general manager of the leasing division for the global equipment finance group in New York. Prior to joining Citibank, Fletcher was a group CFO at International Paper Company.

“In his short tenure at eCharge, Doug has provided excellent leadership and guidance to the finance team,” said Truett Tate, president and CEO of eCharge Corp. “His past experience in building a powerful business has led him to create many of the financial controls and disciplines needed to prepare eCharge for its aggressive global expansion.”

Fletcher is responsible for all financial functions including financial control and reporting, treasury and cash management, planning, and investor relations for eCharge Corp.

About eCharge Corporation

eCharge Corporation is a global payments company providing secure and convenient ways to make purchases online. The company’s products, eCharge(SM) Phone and eCharge(SM) Net Account, virtually eliminate fraud and can increase revenue for strategic partners worldwide. eCharge Phone enables the purchase of digital goods and services to be charged to the consumer’s phone bill. eCharge Net Account is an Internet purchasing solution offering consumers and merchants security and convenience not available in any other online payment method. Founded in 1997, and headquartered in Seattle, Wash., eCharge Corp. has offices in Vancouver, British Columbia; London and Tokyo. For more information go to [http://www.eCharge.com][1].

[1]: http://www.echarge.com/

Privacy Settlement

U.S. Bancorp confirmed Friday it has settled two complaints involving consumer privacy, including the settlement of a consolidated class action suit and an agreement with a multi-state task force of attorneys general. In regards to the class action settlement, U.S. Bancorp has agreed to provide a settlement fund of $3 million to pay potential claims and will also pay the first $500,000 of plaintiffs’ attorneys fees approved by the Court. If the settlement fund is not used in its entirety, the balance will go to the University of Minnesota Law School or to non-profit human services agencies. Claim forms were mailed this weekend to claimants who had U.S. Bank checking or credit card accounts with the bank prior to July 1999. Claim amounts will range from $25 to $400, with most claims to be settled at $50. Last summer U.S. Bank voluntarily settled the attorneys general lawsuit and agreed to contribute $4 million to charities or public bodies in Minnesota and other states where the bank conducts business. The Minnesota portion of the settlement ($2 million) was paid in the third quarter of 1999, with the balance of the funds, an additional $2 million, earmarked to be divided between the additional states. The attorneys general lawsuit was filed June 8, 1999 for allegedly releasing customers’ private banking information to a telemarketing company in exchange for a fee of $4 million plus a 22% commission on each sale. The suit also alleged that some of commissions were generated through bogus, unauthorized charges by CT-based MemberWorks, the telemarketing company involved. Minnesota alleged that U.S. Bank violated the FCRA and engaged in consumer fraud and deceptive advertising by providing the telemarketing vendor with such private information as: SSN numbers, account balances, transaction history, credit limits, credit insurance status, year to date finance charges, automated transactions authorized, credit card type/brand, number of credit cards, cash advance amount, behavior score, bankruptcy score, date of last payment, amount of last payment, date of last statement, and statement balance. (See CF Library 6/9/99)

Internet Battle

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The online marketing battle between NextCard and Capital One continued during the week of August 21-27. According to the latest Nielsen/NetRatings survey, NextCard ranked as #4 and Capital One ranked as #9 among the top ten advertisers on the Internet for at-home surfers. NextCard reached 21.6% of the at-home audience by delivering 151 million ad impressions during the week measured. Capital One reached slightly more of the at-home audience, 22.2%, by delivering 71 million ad impressions or about half of NextCard’s ad volume. Meanwhile Capital One’s “How Fast do you want your credit decision?” banner ad ranked as #1 among at-home surfers and #2 among at-work users.

[1]: http://www.cardweb.com/ads/capitalone/bttrbgo1.gif