Prez has hired Gretchen H. Bender to the position of President, where she will oversee all operations for the company.

PAIDCard (Prepaid Anonymous Internet Debit Card) is the latest initiative in secure retail and electronic commerce transaction processing. Preliminary market tests show strong acceptance, as the company will go to full market September 1st and will be publicly traded on NASDAQ symbol PDCD.

Ms. Bender comes to PAIDCard from First Bank of Beverly Hills, a subsidiary of Wilshire Financial Services Group (NASDAQ), where she served as Operations Manager in charge of all merchant acquiring activity for the Bankcard Division. Gretchen and her staff serviced a portfolio of nearly 9,000 merchants in the nation’s 48th largest credit card processor.

She was also instrumental in developing and enhancing the Bank’s relationships with CyberCash (NASDAQ), Signio, a division of Verisign (NASDAQ), First Data Resources (NYSE) and NDC e-Commerce (NYSE).

Prior to First Bank of Beverly Hills, Gretchen operated DataBank International, Ltd., a third-party service organization for the Bank of Los Angeles. She was responsible for portfolio profitability and guided DataBank in its development of an international processing solution and additional third party relationships.

Ms. Bender is a Business Administration graduate with a major in Management Information Systems, 1990, from the University of Arizona.

Gary Davies, Chairman of PAIDCard, said, “We are delighted to have an executive with Ms. Bender’s impressive abilities, banking and solid credit card experience with a working knowledge of our specific area of business. She brings with her a world of savvy that we will need to move forward quickly.”

PAIDCard will be available at retail locations and convenience stores nationwide, as well as over the internet. International distribution of the PAIDCard will be developed through affiliate banking relationships and foreign agents.

About, Inc. is an internet banking services company functioning as an agent while finalizing contracts to become a registered sales organization for the processing of MasterCard and Visa transactions. Through their relationships with various banking institutions and with third party processors, the company is able to utilize the Federal Reserve’s Automated Clearing House (ACH) system to deposit and collect funds electronically. Given these capabilities, the company has introduced its own private label card known as PAIDCard (Prepaid Anonymous Internet Debit Card).

The PAIDCard advantage is its ability to alleviate the burden of chargebacks from online and retail merchants, while providing anonymity to the consumer. Fraud is substantially reduced with this method of payment, thus greatly lowering merchant fees and driving added, unexpected revenue to participating e-commerce and retail clients.

Smart Amusement Card

Schlumberger e-Transactions Solutions, a unit of the Test & Transactions business segment of Schlumberger announced a partnership with Sega Enterprises, Ltd. to provide a new smart card for use in Sega’s network of amusement arcades throughout Japan. Supported by Toppan Label Co., Ltd, it represents Japan’s first entertainment-related smart card system technology.

Sega plans to deploy a smart card system across “Entertainment Stage [email protected]”, the high-speed high-capacity fiberoptic network set to link all its amusement arcades. The new Schlumberger solution will provide membership verification and stored value credits to enable customers to access the vast store of digital contents. Charges for its use will be based on on-line time, and a single smart card will be all that any subscriber needs to use the service.

The smart card will also allow Sega’s partner companies that provide content to market their products more effectively, by accessing customer data stored on a server to target user profiles. When the smart card system is expanded to other Sega arcades in the future, alliance companies will have access to real-time market trend data and sales information in order to customize services such as flexible pricing and time-discounts by outlet.

“No business is evolving faster than networking and e-communications businesses. With 20 years of Schlumberger experience in providing smart card-based solutions, the next generation of consumers can enjoy the convenience and security of a smart card which is also an effective tool for offering further customer incentives,” said Tameyasu Anayama, vice president and general manager of Schlumberger.

The card system has been specially designed and developed for Sega using a proven high security solution from the Schlumberger product line. It functionality can easily be ported on a platform of the EMV specification used across the financial industry. The solution draws on highly flexible and expandable technology enabling Sega to adapt memory size according to member profile and usage. The card will be available at “Entertainment Stage [email protected]” .

Isao Ohkawa, president & CEO, Sega added: “The use of networks is spreading through industries like the entertainment sector at a great speed. [email protected] is a new model adapted to the needs of a networked society, and the introduction of smart cards is critical to its realization. I am delighted to be working with Schlumberger to make [email protected] powerful force in the entertainment business.”

Schlumberger, which has well-established technology and product lines particularly in security, ID, loyalty and e-purse, is working with Sega to create a new smart card system for the amusement business that also has potential applications in other industries.

About “Entertainment Stage [email protected]

“Entertainment Stage [email protected]” is a project which aims to create entirely new business formats by linking amusement facilities with 1 Gbps-class high-speed fiber-optic lines (in terms of maximum communication capacity, approximately 8,000 times the capacity of an ISDN line for household use) and creating an entertainment space that allows real-time communication by means of a range of digital contents over this fiber-optic network.

About Sega

Sega Enterprizes, Ltd. is a nearly $2.5 billion company recognized as the industry leader in interactive digital entertainment media, and is the only company that offers interactive entertainment experiences both inside and outside the home. Sega’s World Wide Web site is located at [][1].

About Schlumberger

Schlumberger is the leading provider of smart card-based solutions worldwide. Drawing on 20 years experience in pioneering smart card innovations, Schlumberger is continuing to evolve the new generation of smart cards, parking terminals, ticketing machines, payphones, banking terminals, servers, software, applications and systems integration that will pay a key role in the 21st century’s digital age. Additional information is available at .

Schlumberger Test & Transactions provides smart card-solutions; semiconductor equipment and services; and corporate IP and network solutions to customers throughout the world. It is a business unit of Schlumberger Limited, an $8.4 billion global technology services company. Additional information is available at [][2].


VISA’s Vessey

Prologic Corporation, the leading global provider of financial services software, has appointed Paul Vessey to its Board of Directors.

As Executive Vice President, Emerging Technology, and Chief Operating Officer for Visa, USA, Paul has a deep understanding of the business challenges facing the financial services industry, and insight into which technologies will become tomorrow’s standards for supporting new, strategic business initiatives. Paul Vessey brings more than twenty years of experience and leadership in the banking industry to Prologic’s Board.

In his position as EVP and COO for Visa USA, Paul Vessey is responsible for Visa’s Emerging Markets, Product Development, Systems, Processing, Risk and Operations. One of Paul’s most recent proposed initiatives is called “Virtual Visa”, which will significantly impact the way Visa conducts business in the 21st century. Prior to his joining Visa, Paul held the position of Senior Executive Vice President of Card Products at the Canadian Imperial Bank of Commerce (CIBC). Prior to CIBC, Paul held the title of Vice President and General Manager of Consumer Financial Services at American Express Canada. Earlier in his esteemed career, he held various positions at the Continental Bank of Canada and Toronto Dominion Bank.

In addition to his appointment to Prologic’s Board of Directors, Paul Vessey serves as an Advisory Board Member of Equifax and as a Director of the Toronto Film Festival. Paul has served as Chairman of Visa Canada Association and as Vice Chairman of Visa International.

Paul Vessey is a Business Administration graduate from Durham College of Applied Arts Technology of Oshawa, Ontario in Canada, and graduated from the Advanced Management Program at The International Senior Managers Program at Harvard University’s Graduate School of Business Administration.

“With the multitude of players competing in the financial services software field, only Prologic seems to be developing solutions designed to defend the large banks from the `super portals’ and other non-bank competitors that are vying to steal their customers,” said Mr. Vessey. “With the amazing and unique technologies they are developing for many of today’s largest and most progressive financial institutions, Prologic is well positioned to emerge as the dominant player in their field.”

Mike Cardiff, Prologic’s President and CEO stated, “Paul is one of the senior executives in our industry who is shaping the future of how financial services will be provided around the world. With his leadership and incredible insight into the future of financial services IT, I have always found Paul to be a strategic and innovative thinker. I look forward to his contribution as a valuable addition to our Board.”

Prologic Corporation is the leading developer of software solutions for the global financial services industry. Prologic’s customers include 7 of the top 25 largest banks in the world, with over 25 Internet banks using Prologic solutions. Prologic technology enables financial institutions to quickly deploy solutions for their converging financial services offerings, while also supporting capabilities for increasing profitability, customer acquisition and retention. Prologic’s i-Wealthview(TM) enterprise wealth management solution features e-banking, e-brokerage and e-insurance. Through strategic alliances with Microsoft, Compaq Computer Corporation, and other international partners, Prologic’s banking solutions are in use in over 300 financial institutions globally. Visit Prologic’s home page at

Zaxus Targets MasterCards

Zaxus has extended the capability of its Personalisation Preparation Process card issuance system in addition to Visa Smart Credit Debit and Visa Cash smart card applications. The new P3 system from Zaxus now supports a wider range of chip card applications with the flexibility to offer a range of different products to suit a variety of customer needs including M/Chip Select and M/Chip Lite applications. M/Chip Select is the MasterCard/Europay full credit/debit implementation based on the MULTOS multi-application card. M/Chip Lite is the MasterCard/Europay entry-level credit/debit scheme that is based on a single application low-cost smart card.

Aimed at the new breed of multi-application smart cards, the P3 system allows card issuers to use platforms such as MULTOS and Visa Open Platform (VOP) as the basis for new ranges of card applications. Issuers are no longer limited to single application cards, P3 from Zaxus allows issuers to load a number of card applications side-by-side and possibly even retail chains to load loyalty applications as well.

The introduction of multi-application cards, such as debit/credit and electronic purse, and the new applications for smart card-based schemes require the migration from magnetic stripe to smart card. This has already commenced with pilot schemes and continues with full roll-outs, each with its own infrastructure requirements for producing fully personalised magnetic stripe, smart cards and now multi-application cards.

However, to make use of these new cards a whole new application independent card issuing infrastructure is necessary so that smart cards and new multi-application cards may be brought on-line quickly. The P3 system from Zaxus provides a cost-effective migration path for the emerging card industry, allowing issuers to move into pilot schemes or full roll-out programmes for single or multi-application smart cards by reducing or eliminating the need to change existing card issuing systems.

Allowing service providers to carry out trials of smart cards applications without large investment, P3’s extended product range now offers a ‘Pilot’ system. This is a low-cost, time-limited version that will appeal to those issuers that are keen to carry out assessment trials with low numbers of smart cards before committing to full roll-out.

Now also offering higher card throughput rates, P3 capitalises on the improved performance provided by interconnection to the higher speed Zaxus RG7100 Ethernet host security modules.

Zaxus, a Thomson-CSF Racal company, provides e-business security solutions to several thousand customers worldwide. Over half of the world’s banks, together with the majority of the busiest stock exchanges, currently use Zaxus technology. Operating in three main markets — card payments, e-security and network security — Zaxus addresses the business security needs of corporates and governments alike. For more than 20 years the company has been at the forefront of security and payment technology, co-operating and contributing to set the industry standards used for financial transactions and electronic commerce globally.

Visit the new Zaxus web site at

The P3 system is designed to provide card issuers with a ready-made way of migrating from magnetic stripe cards to smart cards. Aimed primarily at the payments card industry, it offers the ability to generate data for credit/debit and electronic purse payment cards. Using P3 reduces or eliminates the need to make changes to the issuer’s host system thereby reducing implementation costs and timescales.

The P3 system produces data in a format that is widely used in the card industry and is compatible with the popular DataCard 9000 personalisation systems.

Ideal for operation in both personalisation bureaux or in-house by card issuers such as banks and similar institutions, P3 generates and maintains the cryptographic keys required for the secure personalisation of cards. This includes the exchange of public key certificates with the scheme Certification Authorities (CA) operated by Visa, MasterCard and Europay. P3 systems also support the generation and transfer of DES keys to and from card suppliers and personalisation systems.

P3 is a stand-alone, PC-based application for a Windows NT platform and uses the Zaxus RG7000 series of Host Security Modules (HSMs) to provide security functions. The HSM carries out all of the cryptographic functions required by P3. It is a tamper resistant device that allows asymmetric keys (RSA) of up to 2048 bits and symmetric keys (DES) to be stored securely without risk of exposure.

Maintaining a high degree of security, all keys, certificates and confidential information stored on the P3 database are encrypted before storage and can only be decrypted by the HSM attached to the P3 system. In addition, the HSM’s cryptographic functions are used to ensure the integrity all of the data generated by P3. This is achieved through the use of conventional Message Authentication Codes (MAC).

Union Planters Joins NYCE

NYCE has signed $33 billion-asset Union Planters Bank as a participant in the NYCE Network.

The Tennessee-based financial institution brings more than 1,000 ATMs and 1,000,000 cardholders to the Network.

“We look forward to enhancing our ATM services with NYCE’s renowned levels of reliability and accessibility,” said Lloyd DeVaux, Senior Executive Vice President for Technology and Operations with Union Planters Bank. “Our cardholders will benefit greatly from the convenience of being able to access their accounts at thousands of NYCE automated teller machine (ATM) and point-of-sale (POS) locations throughout the country.”

As one of the 30 largest banks in the United States, Union Planters has ATM locations in 12 states, from Illinois to Florida. The bank’s participation in NYCE underscores the Network’s rapid growth into new service areas. NYCE has earned the trust of constituents across the country, and within the past 12 months, established new network relationships with 94 financial institutions.

“In the year since our merger with Magic Line, NYCE has demonstrated its commitment to its geographically-broadened Participant base through initiatives that include the rapidly deployed solution for linking our East and Midwest platforms,” says James S. Judd, Senior Vice President with NYCE. “The addition of Union Planters to our Network illustrates how our dedication to all of our constituents has been the driving force behind building new relationships.”

Founded in 1869, Union Planters is the 27th largest banking company in the nation with $33 billion in assets. The company serves over two million customers with banking locations in Alabama, Arkansas, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Tennessee and Texas.

Headquartered in Woodcliff Lake, NJ, NYCE Corporation is one of the largest electronic payments companies in the U.S. The NYCE Network provides financial institutions and retailers with shared network services for automated teller machines (ATMs), on-line debit point-of-sale and electronic benefits transfer transactions. Currently, the Network has 2,400 financial institution participants and services more than 45 million cardholders through 38,000 NYCE-branded ATMs and 215,000 point-of-sale retailer locations. The company processes nearly 77 million transactions each month. In addition, NYCE Corporation provides financial institutions with real-time processing services that support ATM management and monitoring services, as well as debit card issuance and authorization solutions. With innovations such as SafeDebitTM, a PIN-secured debit payment solution, NYCE is a frontrunner in the payments industry. NYCE’s web site address is [][1].


Canadian PGA MasterCard

Bank of Montreal MasterCard and the Canadian Professional Golfers’ Association have teamed up to create a value packed MasterCard offering for golfers.

The new Canadian PGA Bank of Montreal MasterCard is available immediately to all members of the Canadian PGA, as well as golf afficionados all over Canada. When using the card for purchases, the Canadian PGA cardholder will be entitled to such benefits as discounts on golf lessons, green fee discount books and Ultimate Golf Vacations.

“Every golfer will want a Canadian PGA Bank of Montreal MasterCard,” said Canadian PGA Chief Executive Office, David Colling. “In addition to the valuable discounts and benefits that cardholders will receive, a portion of the card’s revenue will be used to support junior activities of the Canadian PGA. We are extremely excited about this venture and feel it has tremendous potential.”

With over five million golfers in Canada, the golf participation rate per capita is higher in this country than anywhere else in the world.

“Affinity cards are a terrific way to support non-profit organizations and charitable causes,” said Michelle Field, Vice President, Bank of Montreal MasterCard. “Bank of Montreal MasterCard has over 200 different affinity cards with charitable, academic, athletic and cultural organizations, allowing consumers to choose a card tailored to their own individual interests and needs.”

The Canadian PGA is a membership-based, non-profit organization representing over 3,000 club professionals and tournament professionals across Canada. It is committed to improving and promoting the game of golf by providing the golfing public and the Canadian PGA-approved facilities with the highest quality administrators, teachers, players and promoters of the game, through superior training, education and member development.

Bank of Montreal is the largest issuer of MasterCard cards in Canada. Serving five million customers across the country, Bank of Montreal MasterCard is also the largest card issuer of the AIR MILES(R)+ Reward Program and the only credit card in Canada to offer the FirstHome(R) Program. In addition to Platinum, Gold, US Dollar, student, and low-interest options, Bank of Montreal MasterCard offers co-branded cards with, Star Trek and Shell.

Vatican Cards

Los Angeles-based Maxx International yesterday announced that it signed the first-ever exclusive license agreement with the Treasures of St. Peter’s in The Vatican. The agreement provides Maxx with the exclusive rights to market and distribute Vatican-branded credit, debit and telephone cards. The deal will also seek to develop the first affinity card specifically for the approximate 60 million Catholics in the USA and over one billion Catholics worldwide. Maxx says it is in discussions now with several bank credit card issuers. Maxx will also have rights to sublicense and manufacture pre-paid and post-paid calling cards that carry an imprint of an image of the art works contained in the Vatican Treasury.

Bankruptcy Decline

The number of personal bankruptcy petitions filed in U.S. federal courts has been dropping by an annual rate of 8.3%. According to CardData, the percentage of chargeoffs involving bankruptcy has declined from 42.3% for May 1999 to 37.2% for May 2000. The Administrative Office of the U.S Courts recently reported that personal bankruptcy filings have dropped from 1,378,071 for the year ending 3-31-99 to 1,263,096 for the year ending 3/31/00. For the first quarter 2000, there were 312,335 total bankruptcy filings compared to 330,784 for 1Q/99. For complete bankruptcy statistics visit CardData (

(for year ending March 31)
2000 908,802 381,568
1999 1,017,049 393,245
1998 1,007,213 404,749
1997 862,136 372,369
1996 665,310 300,901
1995 568,565 255,382

Source: Administrative Office of the U.S. Courts

Delta – Amex Renew

Delta Air Lines and American Express Thursday announced an agreement to extend their long-term partnership. The deal involves the cobranded ‘Delta SkyMiles’ credit cards and participation of Delta Air Lines in the ‘Membership Rewards’ program. The co-branded credit card was introduced in 1996. In 1991, Delta became one of the first partners in the AmEx ‘Membership Miles Program’, now ‘Membership Rewards’. The program now has more than 8 million enrollees worldwide. The Delta Air Lines co-branded program is now the third largest co-branded airline mileage in the US following the United Airlines and American Airlines programs.

Down Month

All credit card statistics for card bonds declined during May according to the Fitch ‘Credit Card Index’. While the good news is that chargeoffs and delinquency declined the bad news is gross yields also declined during May. The Fitch database of $214 billion of credit card-backed securities shows the 60-day delinquency rate is now at its lowest level since Aug 1996. Chargeoffs also dipped to the lowest level since the start of this year.

May00 5.38% 18.44% 15.47% 2.89% 5.47%
Apr00 5.43% 19.72% 17.34% 3.01% 5.62%
Mar00 5.50% 19.30% 16.05% 3.21% 5.52%
Feb00 5.45% 18.48% 16.36% 3.06% 5.53%
Jan00 5.53% 19.36% 16.71% 3.17% 5.89%
May99 5.91% 18.65% 15.96% 3.02% 5.64%
CO-chargeoffs; GY-gross yield; MP-monthly payment rate; DL-60+ day
delinquency rate; SP-3-month excess spread

Source: Fitch IBCA Credit Card Index

ATM Gold

Arkansas Federal Credit Union wanted to raise its maximum ATM transaction amount from $300 to $500 but was concerned about the increased frequency of reloading its machine. The solution was found in dispensing the new Sacagawea golden one dollar coin which freed up a note dispenser for $50 bills.The credit union is the first financial institution in the country to dispense the newly minted, golden one dollar coin at an ATM.

PocketCard Discount

Timebeat4teens, a subsidiary of Enterprises Inc. and developer of an Internet destination geared toward the explosive teenage market, announced today it has named PocketCard as a preferred method of payment on its e-commerce site,

Timebeat4teens visitors and their parents can enroll for PocketCard’s high-tech Visa Card by accessing the timebeat4teens site. Timebeat will offer a 20% discount on any item on its site with the use of the PocketCard Visa.

Chairman of Enterprises, Thomas L. Crom, stated, “With teen spending estimated to reach $250 billion in 2000, PocketCard offers teens a way to participate in cashless transactions and thereby encourages e-commerce transactions. PocketCard and Timebeat are complementary partners because we both recognize that the youth generation is a vital, driving force of the new economy. Together, we are granting today’s youth the independence, convenience and security they deserve.”

Crom added, “PocketCard is the preferred payment method for online retailers such as Alloy Online (NASDAQ: ALOY). Unlike Alloy, Timebeat4teens is providing a 20% discount incentive with usage to boost both PocketCard and Timebeat4teens sales.”

Embossed with the URL and the teen’s name, this adult-funded Visa Card will grant teens the freedom to shop anywhere Visa is accepted. Differing from a credit card, PocketCard strictly restricts spending to preset limits. Any attempt to spend more than previously specified is denied at the point of purchase.

PocketCard utilizes the latest Internet technology, which gives the parent or other adult sponsor authority to instantly add funds via the Internet or telephone. As a value-added feature, purchases can be tracked instantly through e-mail alerts.

About PocketCard, Inc.

PocketCard, Inc. invented the financial service product known as sponsored payment cards, which are special purchasing cards for financial dependents with instant funding, reporting and control. PocketCard’s unique service is possible through a patent-pending technology platform that allows instant transfer of money and information-any time, any place-both online and off. PocketCard’s business model is designed to reach families, businesses and individuals with its innovative e-finance and relationship-marking services. PocketCard works with leading credit card issuers, processors, retailers, media and others to continually deliver cutting-edge applications.

About Enterprises is a dynamic Internet company focused on the design and operation of premier interactive websites. Currently numbered at 60 million, young consumers are growing 20% faster than the total U.S. population. Timebeat4teens ( targets this new generation with a line of jewelry, watches, records, clothing, and related merchandise that appeals to teens and young adults. Timebeat will introduce the site, utilizing the latest advancements in Internet technology, during the summer of 2000.