Sabre Merchant Pay

Sabre Holdings Corporation announced the national release of Sabre Merchant Pay, an integrated, end-to-end merchant payment processing product and service offering for Sabre Connected travel agencies. Sabre is the first global distribution system to offer a payment processing solution to travel industry merchants that is integrated with its host reservation system.

Developed through an exclusive partnership with QSI Payments, a world leader in providing global payment solutions, Sabre Merchant Pay utilizes QSI Payments’ unique technology to enable financial institutions and their respective customers to securely authenticate, authorize and process payments through the Sabre GDS.

Through the subscription-based service, U.S.-based Sabre Connected travel agents will be able to:

— Reduce their operating costs by 15 – 20 percent

— Maximize the efficiency of their business with online reporting and reconciliation

— Minimize the risk of fraudulent transactions

— Streamline the payment process

“Based on our analysis, we have calculated that Sabre Merchant Pay will reduce our annual Visa and MasterCard acceptance costs by nearly 20 percent,” said George Wozniak, president, Hobbit Travel. “Additionally, it will enable us to re-assign personnel to more revenue producing functions and further improve our bottom-line.”

“During the beta test we found that Sabre Merchant Pay helped us to become more efficient by streamlining the processing of our merchant payments and improving our cash flow,” said John Henry, CTO of Robustelli World Travel. “We view this product as a viable alternative to current programs offered by other organizations in the market.”

“Sabre Merchant Pay is another innovative solution designed to help our Sabre Connected travel agencies and airlines effectively manage their business and better service their customers,” said Tom Klein, president Emerging Business and Airline Reservations for Sabre. “With more than $75 billion in travel sales that flow through the Sabre system, we are able to harness the power of that information and combine it with QSI’s expertise. We believe this combination offers a real advantage over other products in the market today.”

About Sabre

Sabre is the leading provider of technology, distribution and marketing services for the travel industry. Headquartered in Dallas/Fort Worth, Texas, the company has approximately 6,000 employees in 45 countries. Sabre maintains an ownership interest of approximately 70 percent in (Nasdaq: TVLY), the world’s leading online B2C travel site; and it owns GetThere, the world’s leading provider of Web-based B2B travel reservation systems. Sabre is traded on the New York Stock Exchange (NYSE: TSG). More information on Sabre is available on the World Wide Web at .

About QSI Payments

QSI Payments is a global provider of e-payments infrastructure software and secure payments solutions. QSI Payments’ unique software enables financial institutions, enterprises, and their respective customers to transact e-payments in a secure and authenticated manner. The company developed the first smart card debit system in 1996 and has implemented electronic payment solutions across the globe in the United States, Asia, Australia and the United Kingdom. QSI Payments has received international recognition for its Universal Payment architecture(TM) and has developed strategic partnerships with technology leaders such as Compaq and SAP. QSI Payments sets itself apart from the competition by addressing the industry’s needs for increased security, authentication, scalability and bank branding through its unique e-payments architecture that offers unlimited flexibility and absolute control. Visit QSI Payments on the Web at .


Citibank, Europay, and Sabena are teaming up to launch a co-branded MasterCard. The card will include the ‘Qualiflyer’ frequent flyer program. are to launch a joint credit card on the market. Europay says the new loyalty card may set off a wave of co-branded card deals with other Belgian banks.

April Retail Sales

Sales tax-free holidays and tax rebates buoyed back-to-school shopping this year resulting in a 3.0 percent increase in same-store retail sales for August — the strongest growth since April of this year, according to data compiled by TeleCheck Services, Inc., the world’s leading check acceptance company. The Southeast region led the nation, followed by the Southwest, the Midwest, the Mid-Atlantic, the Northeast and the West. The TeleCheck Retail Index is based on a year-over-year, same-store comparison of the dollar volume of checks written by consumers at more than 27,000 of TeleCheck’s 272,000 subscribing locations. Compiled on a calendar basis, TeleCheck’s index is based on a broad cross-section of retailers nationwide. Checks account for about one-third of retail spending and remain second only to cash as the most popular method of payment. TeleCheck is a subsidiary of Denver-based First Data Corp. (NYSE: FDC).

“Many states, including Texas and Florida which both saw significant sales increases, recognized sales tax-free holidays during the month of August which encouraged shoppers to spend,” said Dr. William Ford, TeleCheck’s Senior Economic Adviser. “Also, at least half of the 90 million Americans receiving tax rebates have them now. August’s moderate 3.0 jump in same-store retail sales, coupled with the Federal Reserve’s interest rate cuts, should encourage retailers as we approach the holiday shopping season.”

Sales in the Southeast region rose 3.6 percent. Sales grew 4.0 percent in Florida, 3.5 percent in Louisiana, 3.4 percent in Georgia, 3.3 percent in The Carolinas and 3.1 percent in Tennessee. Sales increased 4.2 percent in Miami/ Ft. Lauderdale, 4.0 percent in Tampa, 3.8 percent in Atlanta, 3.7 percent in Orlando, 3.4 percent in New Orleans, 3.3 percent in Memphis and 2.9 percent in Nashville.

Sales in the Southwest grew 3.4 percent. Sales increased 3.8 percent in Texas, 3.6 percent in Oklahoma and 3.0 percent in Missouri. Sales rose 4.2 percent in Dallas/Ft. Worth, 4.0 percent in both San Antonio and Oklahoma City, 3.6 percent in Houston and 3.5 percent in Austin. Sales increased 3.4 percent in Tulsa, 3.3 percent in Kansas City and 2.9 percent in St. Louis.

In the Midwest region, sales climbed 3.2 percent. Wisconsin’s sales climbed 4.2 percent, Minnesota’s sales rose 4.0 percent, Michigan’s sales climbed 3.5 percent, sales in Ohio were up 3.3 percent and Illinois saw sales increase 2.9 percent. Milwaukee’s sales were up 4.1 percent, Detroit’s sales grew 3.9 percent and sales in Minneapolis jumped 3.6 percent. Sales were up 3.0 percent in Cleveland and in Chicago, sales rose 2.5 percent.

In the Mid-Atlantic, sales grew 3.0 percent. Pennsylvania saw sales climb 3.6 percent, Virginia’s sales were up 3.5 percent, New Jersey’s sales rose 2.9 percent and Maryland saw sales grow 2.3 percent. Sales were up 3.9 percent in Philadelphia, 3.4 percent in Pittsburgh, 2.9 percent in the District of Columbia and 2.6 percent in Baltimore.

The Northeast region saw sales increase 2.7 percent. Sales rose 3.2 percent in Massachusetts and 2.6 percent in New York State. Boston saw sales rise 3.0 percent and New York City’s sales were up 2.4 percent.

Sales in the West grew 2.5 percent, with Hawaii’s sales up 5.4 percent, Arizona’s sales up 2.7 percent, California’s sales up 2.5 percent, Oregon’s sales up 2.3 percent, Colorado’s sales up 2.2 percent and Washington’s sales up 2.0 percent. In Los Angeles, sales jumped 2.7 percent, Phoenix saw sales rise 2.5 percent and sales in both Denver and the Bay Area were up 2.4 percent. Sales grew 2.1 percent in San Diego, 1.9 percent in Portland and 1.6 percent in Seattle.

In 2000, TeleCheck authorized more than $163 billion in checks, representing 3.2 billion transactions. For more information about TeleCheck, visit the Internet site at .

First Data Corp., with global headquarters in Denver, powers the global economy. Serving nearly 2.6 million merchant locations, more than 1,400 card issuers and millions of consumers, First Data makes it easier, faster and more secure for people and businesses to buy goods and services, using virtually any form of payment: credit, debit, stored-value card or check at the point- of-sale, over the Internet or by money transfer. For more information, please visit the company’s Web site at .

Dr. William Ford holds the Weatherford Chair of Finance at Middle Tennessee State University. Earlier in his career he was president of the Federal Reserve Bank of Atlanta and served on former Fed Chairman Paul Volcker’s Federal Open Market Committee.

Retail Sales
(Period: 8/1/01- 8/31/01)
September 5, 2001


Florida 4.0% Arizona 2.7% Illinois 2.9%
Miami/ Phoenix 2.5% Chicago 2.5%
Ft. Lauderdale 4.2%
Orlando 3.7% California 2.5% Michigan 3.5%
Tampa 4.0% Bay Area 2.4% Detroit 3.9%
Louisiana 3.5% Los Angeles 2.7% Minnesota 4.0%
New Orleans 3.4% San Diego 2.1% Minneapolis/
St. Paul 3.6%
Georgia 3.4% Oregon 2.3% Wisconsin 4.2%
Atlanta 3.8% Portland 1.9% Milwaukee 4.1%
Tennessee 3.1% Washington 2.0% Ohio 3.3%
Memphis 3.3% Seattle 1.6% Cleveland 3.0%
Nashville 2.9% Colorado 2.2%
The Carolinas 3.3% Denver 2.4% MID-ATLANTIC 3.0%
Hawaii 5.4% District of
Columbia 2.9%
SOUTHWEST 3.4% Pennsylvania 3.6%
Texas 3.8% NORTHEAST 2.7% Philadelphia 3.9%
Austin 3.5% Massachusetts 3.2% Pittsburgh 3.4%
Dallas/ Boston 3.0% New Jersey 2.9%
Ft. Worth 4.2%
Houston 3.6% New York 2.6% Virginia 3.5%
San Antonio 4.0% New York City 2.4% Maryland 2.3%
Missouri 3.0% Baltimore 2.6%
Kansas City 3.3%
St. Louis 2.9%
Oklahoma 3.6%
Oklahoma City 4.0%
Tulsa 3.4%

Taxi Cards

PA-based USA Technologies will install 15,000 ‘e-Port’ credit card terminals in taxis and limousines operating in New York City over the next three years. The $20 million deal signed Wednesday with the United Taxi Alliance is the largest contract for USTT’s ‘e-Port’, first unveiled less than two years ago. The ‘e-Port’ card reading device will be fitted in the front of the cab or limousine. Passengers pass their credit cards to the driver who then swipes the card through the device to activate the transaction before the trip begins. At the end of the trip the driver passes the passenger a complete receipt that itemizes the distance traveled and cost, and can also include the tip. An interactive screen can be fitted in the back of the cab for convenient viewing. The first of several thousand e-Ports could begin appearing in New York cabs and limousines in January 2002. Last month, the New York State Federation of Taxi Drivers approved a credit card program for livery cabs. About 29,000 livery cabs provide service in areas of New York where yellow taxis don’t operate for economic, safety, and sometimes racist reasons. Partners in the livery cab program, which utilizes wireless credit card terminals, include Cynergy Data, Lipman USA and U.S. Wireless Data. There are approximately 6,300 taxi companies transporting 1.4 billion passengers annually in the U.S. (CF Library 8/8/01)


LML Payment Systems Inc. is pleased to announce its subsidiary LML Patent Corp. has
received notification from the United States Patent and Trademark Office that
patent application Serial No. 09/562,303 was approved, resulting in the
issuance of United States Patent No. 6,283,366. The new patent addresses
electronic check conversion regarding corporate checks and electronic fund
transfers (EFT) and relates to existing United States Patent
No. 6,164,528 regarding Internet checking transactions and United States
Patent No. 5,484,988 regarding electronic checking transactions.

“The addition of this new 366 patent to our growing suite of intellectual
property complements and strengthens existing claims regarding the electronic
check transaction processes described in both the 988 patent and the
528 patent,” said Corporation President and CEO, Patrick H. Gaines. “We have
continued to seek added protection for our inventions and improvements and
look forward to practicing, protecting and realizing economic gain from our

The Corporation, through its subsidiary LML Payment Systems Corp., is a
financial payment processor providing check processing solutions including
Electronic Check Conversion (whereby paper checks are converted into
electronic transactions), electronic check verification, electronic check
re-presentment (whereby returned paper checks are re-presented for payment
electronically), and primary and secondary check collection to supermarkets,
grocery stores, multilane retailers, convenience stores and other national,
regional and local retailers. We also specialize in providing selective
routing, including real-time monitoring of check, debit, credit and EBT
transactions for authorization and settlement through our flagship transaction
processing product REPS (Retail Electronic Payment System). The Corporation’s
intellectual property estate, owned by subsidiary LML Patent Corp, includes
new U.S. Patent No. 6,283,366 regarding corporate checks and electronic fund
transfers (EFT), in addition to U.S. Patent No. 6,164,528 regarding Internet
checking transactions, and U.S. Patent No. 5,484,988 which describes a
“Checkwriting Point of Sale System” which, through a database and
authorization system, provides and administers various electronic payment
services for customers and businesses.

Foreign Transactions

Merchants and acquirers who require multi-currency front-end and back-end payment processing now will be able to price goods and services in different currencies while also guaranteeing the exchange rate at the time of purchase. First Data Merchant Services and Ireland-based OMNIPAY have signed an agreement under which the two companies have developed a multi-currency end-to-end transaction and settlement infrastructure. FDMS and FEXCO, a foreign exchange business also based in Ireland, have signed a letter of intent to offer FEXCO’s cash management and treasury services in support of this program. OMNIPAY’s transaction-processing infrastructure handles multi-currency back-end functions. FEXCO’s multi-currency platform will support front-end dynamic currency conversion services, which e-commerce and brick and mortar merchants alike can utilize. FEXCO will manage the treasury operations, which include the guarantee of the currency exchange rate.

HNC Board

HNC Software Inc. announced the appointment of Louis A. Simpson, president and CEO of capital operations at GEICO Corp., to its board of directors.

Prior to accepting his current position in 1993, Simpson served as vice chairman of the board, senior vice president and chief investment officer at the insurance company, which has been a wholly owned subsidiary of Berkshire Hathaway Inc. since January 1996.

Simpson has more than 30 years’ experience as an executive officer within the financial and insurance industries, previously serving as president and CEO at Western Asset Management and a partner at the investment firm of Stein Roe and Farnham. He also has served as an instructor of economics at Princeton University, where he received his master’s degree in economics. He serves as a director of AT&T, LM Institutional Fund Advisors 1 Inc., Pacific American Income Shares Inc. and SAIC.

“I am looking forward to my participation on HNC’s board of directors,” stated Lou Simpson. “I am impressed by HNC’s business model and believe its cutting-edge technology can offer great value to the financial and insurance industries.” “Lou has a phenomenal track record of success in financial and general management with a number of different businesses,” said John Mutch, chief executive officer of HNC. “HNC is very fortunate to have the opportunity to leverage his accumulated wisdom and judgement to build value for the company.”

GEICO is the largest direct marketer, sixth-largest private-passenger auto insurance company and 10th-largest property/casualty insurer in the United States. It is one of the fastest-growing auto insurers in the United States, with growth of 8.5 percent in 2000 and assets of $10.6 billion at year-end 2000.

HNC’s board now totals six members. In addition to Simpson, members of the HNC board are: Edward Chandler of Graystone Venture Partners LLC; Thomas Farb of Summit Partners; Alex Hart, an independent consultant to the financial services industry and former CEO of Advanta Corp. and MasterCard International; David Chen of GeoTrust; and John Mutch, HNC’s chief executive officer.

About HNC Software Inc.

HNC Software is a leading provider of Customer Insight solutions including decision management and customer analytics software that enable companies in the financial, telecommunications, e-commerce and insurance industries to acquire, manage and retain customers. For more information, visit [][1] or contact Susan Roth at 858/909-4353.



Teco Electric & Machinery Co Ltd and Giesecke & Devrient are forming a US$50 million joint venture to manufacture smart cards. The first initiative will be to upgrade the identification cards for Taiwan’s national health insurance program. The venture has projected annual sales of NT1.5-2.0 billion after mass production starts in early 2002.


VISA has certified the Oberthur ‘GalactIC 2.1’ payment card for the ‘VISA Smart’ range. The company also announced Wednesday it will consolidate its personalization services operations. The ‘Version 2’ Java-based, open platform, multi-application smart card enables secure multi-channel payment from any terminal, including PC, mobile phone, television or point-of-sale. Oberthur currently owns two of the four RSA Java-based cards that comply with VISA certification ‘Level 3’. The new version is a 32K card which enables card issuers and users to load more applications on the card and run several functions simultaneously, including authentication of the cardholder, security of the online transaction and completion of payment using debit or credit. The ‘GalactIC V2’ includes a key generator integrated in the card to allow local generation of keys up to 2,048 characters. Oberthur will transfer the personalization services conducted out of its Livermore, California plant to its facilities in Los Angeles and Naperville, Illinois. Based in the Oakland region of northern California, the Livermore facility is scheduled to close at the beginning of 2002. The Livermore plant was acquired when Oberthur took over De La Rue’s smart card operations in 1999.

Market Pains

Credit card related stocks sank yesterday after Providian warned of lower profits. However the tumble eased somewhat by afternoon following a government report showing that manufacturing is recovering. While all the monolines fell yesterday, Citigroup and American Express eked out a small gain.

Sept. 4
Providian $30.36 -22.27% $67.00
Metris $24.74 – 9.04% $42.94
NextCard $ 8.35 – 6.49% $12.75
MBNA $32.76 -5.75% $40.12
Capital One $52.76 -5.12% $73.25
Household $57.06 -3.45% $69.98
Source: CardData (


Symcor Services Inc. announced that it
has taken an important step forward in its growth strategy by making a
significant investment in its technology platform.
As Canada’s leading financial transaction outsourcer, each year Symcor
processes approximately 1.8 billion checks, handles 50 million customer
payments, produces over 300 million customer statements and generates more
than 50 million e-presentments on behalf of its customers.
“Enhancing our ability to digitally process, archive and deliver this
information provides the foundation for improved customer service as well as
new electronically-delivered products and services,” said Paul Currie, Symcor
CEO. “Our enhanced platform will also allow us to move forward quickly and
efficiently with our plans to expand our electronic services to customers in
the marketplace.”

Carreker Corporation’s (NASDAQ: CANI) Check Solutions will provide proven
software and advanced technology. These systems include conventional check
processing as well as image capture and automated reject reentry on the front
end of the item processing operation. In addition, Check Solutions software
will be used to provide new products such as image statements, CD/ROM
delivery, and check archive storage and retrieval. Symcor’s back office
processes will be further enhanced by using the image-enabled Inbound Returns
Express(TM) and Exceptions Express(TM) systems to handle returned items and
exceptions processing. The company also has full access to Carreker’s
Electronic Check Presentment technology, which allows financial institutions
to process incoming paper check information into their deposit posting systems
before the arrival of the physical paper items.

The IBM(R) Content Manager OnDemand application has been selected for
Symcor’s digital archive. This product will further improve Symcor’s current
digital archive capabilities. The new archive will enable large-scale storage
and substitution of images and electronic delivery for physical paper items.
In the company’s Item Processing business, the digital archive will facilitate
consolidation of back-office processing, reduce paper handling through the
exchange of images, and greatly streamline the research and adjustments
process. In the Customer Communication business, benefits of the digital
archive include improved flexibility and scalability of electronic bill and
statement delivery as well as reduced statement production costs.
Customer service in both Symcor businesses will also be improved with the
archive solution. Online access to high-quality images will provide faster
responses to customers without requiring access to the physical item; both the
call centre and the customer will be able to view the same image. On-line
access to check images and statement images will also enable Symcor’s
customers to provide immediate responses to their customers’ inquiries.
“Symcor is dedicated to providing a complete end-to-end solution that
helps transform and enhance our customers’ businesses,” said Currie. “And,
with our investment in our technology platform, Symcor will provide even
better support to our customers as they migrate from the physical to the
electronic world.”

About Symcor

Symcor is a Canadian leader in providing financial transaction
outsourcing services in two business areas – Item Processing and Customer
Communication. Symcor provides individualized product and service solutions to
customers in the banking, mutual fund, insurance, retail, telecom and utility
sectors. Symcor’s services include check, credit card and payment processing,
Web development, and a full range of customer bill and statement advisory,
design and presentment capabilities. For more information, please visit

About Carreker Corporation

Carreker Corporation, headquartered in Dallas, Texas, is a leading
provider of integrated consulting and software solutions that enable banks to
identify and implement e-finance solutions, increase their revenues, reduce
their costs and enhance their delivery of customer services. Carreker’s e-
finance solutions use leading-edge technologies to create differentiated
applications for banks and their customers. The Company believes that its 23
years of experience in the banking industry, combined with a professional
staff and advanced technological expertise, allow for targeted solutions for
banks and other financial institutions. Carreker offerings are organized into
three divisions, as follows: (1) Revenue Enhancement, which increases banks’
revenues through market segmentation and improved customer pricing structures,
(2) Global Technology Solutions, which provides business-case driven
technology solutions through three customer-aligned groups: Risk Solutions,
Cash Processing & Logistics Solutions and Check Solutions (these technology-
enabled solutions bring together nearly 125 mission-critical business process
applications, strategic application implementation services,
consulting/advisory services and outsourcing services) and (3) Enterprise
Solutions, which integrates systems, combines operations and improves
workflows and internal operational processes. Carreker’s customer list
includes more than 200 financial institutions in the United States, Canada,
the United Kingdom, Ireland, Australia and South Africa, including 70 of the
largest 100 banks in the United States. For more information please visit the
website at