RI-based GTECH Holdings said Friday that it is engaged in discussions regarding the possible acquisition of VA-based Transaction Network Services, Inc.. No agreement has been reached and significant issues, including acquisition financing, remain unresolved. GTECH Holdings Corporation, headquartered in West Greenwich, Rhode Island, is the world’s leading supplier of computerized on-line lottery products and services. Last week Transaction Network Services signed an agreement with Morgan Stanley Dean Witter & Co., to provide transaction transport services to Discover Financial Services for Discover Card and other bankcard credit authorizations.
3-G International said it has implemented U.S. military smart card systems in Thailand and Bosnia. To date the firm has developed five smart card applications, and supported the issuance of multiple application cards in over 10 locations including Japan, Korea, Guam, Hungary, Germany, Thailand, Hawaii, and six bases in the continental U.S..The multiple application cards were issued to support the ‘Cobra Gold `98’ joint military exercise in Thailand, and for the peacekeeping mission in Bosnia. Over 7,000 multiple application smart cards were issued to US and Thai forces participating in the ‘Cobra Gold’ exercise in Thailand. In Bosnia, 3GI helped issue over 2,500 multiple application smart cards to the 2nd Armed Cavalry Regiment. 3GI provided five applications for use with the military multi-application smart card to support these implementations.
Transaction Network Services, Inc. announced Wednesday that it signed an agreement with Morgan Stanley Dean Witter & Co., to provide transaction transport services to Discover Financial Services for Discover Card and other bankcard credit authorizations.
Discover Financial Services, a business unit of Morgan Stanley Dean Witter & Co., operates the Discover Card and Novus Card brands, as well as the Novus Network. The cards are accepted on the Novus Network, the third largest credit card network in the United States, which consists of more than 3 million merchant and cash access locations.
“This new relationship enables us to deliver credit card authorization traffic directly to Discover Financial Services and to support their terminals,” commented Brian Bates, senior vice president and general manager of TNS’ Point-of-Services (POS) division. “We look forward to supporting NOVUS and to building a strong and prosperous alliance.”
Transaction Network Services, Inc. (TNS), headquartered in Reston, Virginia, provides data communications services for transaction-oriented applications. The company is listed on the NASDAQ Stock Market under the symbol TNSI. Additional company information is available on the TNS website at .
Diebold, Incorporated participated in a demonstration announcing the latest developments in Windows Distributed interNet Applications architecture for Financial Services (Windows DNA FS). This demonstration supports Microsoft’s initiative to promote the development of standards that will allow systems from participating vendors to interoperate in the financial services industry.
The demonstration, which took place Monday, shows the integration of Diebold automated teller machines (ATMs) into a Windows DNA FS environment. By utilizing Diebold’s newest software solutions, OPTinet and OPTix, financial institutions are able to make use of existing investments in technology by reusing development tools and programming resources. Applications become less dependent on the delivery channel and the operating system, allowing quicker introduction into numerous environments.
Diebold’s OPTinet application and OPTix software platform provide the basis for integrating an ATM with a financial services infrastructure provided within DNA FS. OPTinet utilizes the power and flexibility of Internet technologies to leverage solutions developed for other delivery channels onto Diebold ATMs.
The demonstration integrates Crestar Bank’s ATM delivery channel with its home banking, teller and IVR platforms. This allows for the use of common data and consistent presentation regardless of delivery channel and provides increased customer satisfaction, more opportunities to market to customers and lower cost of ownership.
“Financial institutions need to create brand awareness by servicing their customers in a more consistent manner across all points of interaction including self-service terminals, call centers, home banking, Internet access and direct interaction,” said Tripp Johnson, senior vice president, electronic commerce manager at Crestar Bank. “Diebold’s OPTinet software allows Crestar to quickly integrate the Internet banking and ATM delivery channels, adding transactions currently not available through the traditional ATM delivery channel.”
“Diebold’s OPTinet software and Microsoft’s DNA FS strategy both have the same common goal, to protect a customer’s investment,” said Roy Shirah, director, product planning and management for self-service systems at Diebold. “With OPTinet, a customer can leverage the transactions currently available through their existing ATM delivery channel while developing new transactions and services so they can be deployed across many delivery channels.”
Crestar Financial Corporation is the $26.2 billion-asset holding company for Crestar Bank with 396 banking offices and 700 ATMs in Virginia, Maryland and the District of Columbia. Other subsidiaries provide insurance, equipment and automobile leasing, mortgage banking and full-service securities and investment advisory services.
Diebold, Incorporated (pronounced DEE-bold), headquartered in Canton, Ohio, USA, is a global leader in providing card-based transaction systems, security and service solutions to the financial, education, healthcare, utility and retail industries. Founded in 1859, the company develops, manufactures, sells and services automated teller machines, campus and smart card systems, electronic and physical security equipment, automated medication and supplies dispensing systems, integrated systems solutions, software and banking supplies. For more information about Diebold, Incorporated, visit the company’s Web site at .
VA-based American Management Systems yesterday released a Web-based software application that enables financial institutions to provide their customers direct access to instant loan decisions, including credit card applications online. ‘ACAPS Credit Xpress’ is an object-oriented loan server that interfaces in real time with a bank’s legacy loan origination system, giving customers an answer within seconds. The subsystem was originally developed with Bank of Montreal last year as part of the first banking Web site in North America to offer and immediately decision mortgage, student loan and credit card applications online.
3-G International, Inc. (3GI) has been recognized as one of the fastest growing privately-held U.S. companies by Inc. Magazine. 3GI achieved a remarkable 1820% five-year sales growth, placing the company 134th in the 1998 Inc. 500 survey. 3GI joins an elite group of past Inc. 500 companies which includes Microsoft, Oracle, and Gateway 2000. 3GI develops and sells smart card software applications, smart card management systems, and software for smart card acceptance devices including personal computers. 3GI also provides comprehensive smart card integration services to industry and government customers.
Capital One said yesterday the third quarter was the strongest quarter in its history with record earnings, record growth in accounts and outstandings, record improvement in credit quality, and a record investment in marketing. Marketing investment increased in the third quarter to $126 million versus $86 million in the second quarter, and $61 million in the comparable period of the prior year. As a result Capital One’s managed consumer loan balances increased by a record $1.4 billion to $16.3 billion. Cap One also added a record 1.3 million net new accounts, bringing total accounts to 14.9 million. The managed delinquency rate (30+ days) decreased to 4.90% as of Sept 30, compared with 5.14% as of June 30. The managed net charge-off rate decreased to 5.03% for the third quarter of 1998 compared with 5.91% in the second quarter of 1998. Cap One’s record third quarter earnings hit $70 million versus earnings of $67 million for the second quarter and $49 million for second quarter 1997. Cap One’s net interest margin also grew to 10.15%. The company also reported increased fee income due to increased annual membership fees, interchange, overlimit fees and other fees. For the complete earnings report for Capital One and other major card issuers dial [www.carddata.com]
VA-based InteliData Technologies Corp. appointed Al Dominick to the role of President and CEO, Monday. Mr. Dominick comes to InteliData from M&I Data Services, where he was President of the company’s Retail Delivery Product Group. Mr. Dominick assumes the responsibilities of InteliData’s top post from John C. Backus, an investor-founder who has been with the Company since its inception in 1990. Mr. Backus has been appointed Chairman of the Executive Committee of InteliData’s board of directors.
CheckFree announced Monday that American Payment Systems, a payment processing company for utility customers, will use the CheckFree RECON-Plus for Windows client/server system to automate the reconciliation of its more than 100,000 daily transactions.
APS manages more than 1,300 accounts for over 60 major utility companies. RECON-Plus for Windows will be used initially to verify its daily cash transactions across 100 bank accounts nationwide. It will later be expanded to include reconciliation of other utility processes.
“We were immediately impressed with the power and flexibility of RECON-Plus for Windows. With this system we will be able to automate more processes than ever before — importing, matching, reporting, etc…which will save significant amounts of time and money,” said Richard A. Okun, President at APS. “Plus, with RECON-Plus for Windows we can consolidate our numerous bank accounts and further save on the associated bank fees.”
Senior Vice President of CheckFree Software Frank J. Amoruso, added, “APS is a leading processor of consumer payments for utilities, and its decision to go with RECON-Plus for Windows ratifies its leadership. The comprehensive features of our product will help fulfill APS’ vision of adapting to the expanding needs and challenges of the utility industry.”
CheckFree, a leading provider of reconciliation software to banks and corporations for more than 20 years, has sold over 600 reconciliation systems to organizations around the world, including more than 100 RECON-Plus for Windows systems.
About CheckFree RECON-Plus for Windows
RECON-Plus for Windows is the industry’s most comprehensive account reconciliation application on the market today. It streamlines the reconciliation process for any organization-wide application, whether check or non-check — including disbursement, depository, general ledger, subledger, wire transfer, debit/credit cards, Federal Reserve, inventory applications, premiums, ATM, ACH transfers and more. RECON-Plus for Windows also reduces fraud through daily deposit verification, allows for intra-day investment opportunities and provides quicker cash concentration.
About American Payment Systems
American Payment Systems () is a wholly owned subsidiary of The United Illuminating Company, an operating electric utility in southern Connecticut. APS is the leading service provider in “walk-in customer bill payments.”
APS has more than 6,500 Point of Sale (POS) locations in 38 states, processing over 80 million payments annually for about 75 major utility companies, which represent over 10 billion dollars in customer payments. APS is the technology leader in providing this outsourced service to the utility industry with enhanced features and automatic postings to customer accounts, as well as automated voice-response interfaces for real-time transaction posting. APS specializes in systems integration to make customer data more available and useful for its clients. APS’ clients include AT&T, Ameritech, Houston Industries, Southern California Edison, Pacific Gas & Electric, Virginia Power, PaciFICO®rp, Entergy, Central & Southwest, Southern California Gas and Carolina Power & Light.
Founded in 1981, CheckFree Corporation (), the operating subsidiary of CheckFree Holdings, Inc., is the leading provider of financial electronic commerce services, software and related products for more than 2.4 million consumers, 1,000 businesses and 850 financial institutions. CheckFree designs, develops and markets services that enable its customers to make electronic payments and collections, automate paper-based recurring financial transactions and conduct secure financial transactions on the Internet.
The new lightweight, under 200 pounds, ATMs have become prime targets for thieves. TX-based ATX Technologies, manufacturers of the ‘On-Guard Tracker’, has developed a solution to ATM theft by adapting ‘Trackers’ for use in these devices. ATX has begun shipping units to Security Corporation of Richmond, VA. These small ‘Tracker’ units use the Global Positioning System satellites for locating and tracking ATMs. For example, when an ATM is compromised, the ‘Tracker’ notifies Security Corporation with its location, direction of travel and speed. The local authorities are contacted and guided to the machine before criminals have a chance to break into the ATM.
In response to last week’s report by the Washington Post that more than $1 million in ‘VISA Check’ card losses were perpetrated on a Virginia credit union from crooks in Pacific rim countries, CUNA says the overall risk is minimal. The CUMIS Insurance Society, which insures about 97% of all credit unions, had insured plastic card losses of $32.5 million last year. CUMIS says the number of claims filed by credit unions is down this year, with claims payments actually about 30% less than they were at this time last year. CUMIS also said it will continue to put out ‘SCAM Alerts’, a broadcast fax and e-mail program that notifies credit unions of plastic card and other frauds being perpetrated against credit unions throughout the country.
Crestar Bank broadened its Internet banking services to include Internet Bill Payment through Crestar’s Internet web site at . Like Crestar’s popular telephone bill payer and PC Banking online bill payment services, Internet Bill Payment enables Crestar customers to pay a wide variety of regular or occasional bills including those for utilities, merchants, health care services, installment loans and credit cards. Crestar Internet Banking uses state of the art encryption technology to ensure that all transactions are conducted in a secure electronic environment.
“Internet Bill Payment is another example of Crestar’s commitment to offer our customers the ability to bank whenever and however they choose, whether that’s by coming into the bank in person or visiting us online,” said Hilary Blackburn, vice president, Crestar Electronic Commerce Group. “The addition of Internet Bill Payment not only helps round-out our Internet banking service, but provides a much-demanded bill payment service to those customers who wish to pay bills online via the Internet.”
The new service requires no special personal finance software. It is accessible to Crestar customers who access the bank’s web site using the customer number found on their Crestar MoneyCard, Crestar Premier MoneyCard or Check Card, along with a confidential personal identification number (PIN). A monthly fee of $5.95 per month is deducted from the customer’s primary deposit account, for those who choose to use the service, and covers an unlimited number of bill payments.
Customers can select the merchants and others they wish to pay and enter that information online from their own personal computers.
The introduction of Internet Bill Payment represents the latest expansion of Crestar’s online banking services. These include balance transfers and inquiries, access to current and recent account statements, as well as a variety of specialized information and services including online mortgage and student loan applications.
The bank’s recently introduced Crestar PC Banking For Business and Crestar Internet Inquiry For Business services extend to smaller companies, the same level of convenience and service available to consumers and larger companies. Crestar also is among a select group of banks in the country to participate in a partnership with Intuit to help small business owners shop and apply for credit services through Intuit’s new CashFinder () web service.
Crestar Bank is a unit of the $26.1 billion-asset Crestar Financial Corporation, based in Richmond, Virginia. Crestar offers a broad range of financial services to consumers, businesses, institutions and governmental customers in Virginia, Maryland and Washington, D.C. and in selected markets nationally. Crestar’s multi-channel distribution system includes 566 banking locations and a complete range of 24-hour electronic banking alternatives such as telephone, PC and Internet banking. Other Crestar subsidiaries provide insurance, mortgage banking, equipment leasing and full-service securities and investment advisory services.