UMB Bank Renews EFT/ATM Contract with eFunds

eFunds has renewed its agreement with long-time partner UMB Bank to provide EFT processing, network access, and ATM monitoring and support for the bank’s 153 locations and 500 ATMs throughout the Midwest. In addition, the new agreement will also introduce an authorization solution to help UMB Bank manage PIN validation and change. While terms of the agreement were not disclosed, the three-year renewal was signed in January and implementation of add-on services will begin this month. UMB Financial Corporation is a multi-bank holding company headquartered in Kansas City, Missouri, offering complete banking and related financial services to both individual and business customers. eFunds Corporation is an industry leader with nearly 30 years of experience and expertise in electronic payments.

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KeyCorp Lands King for Retail Banking Operations

OH-based KeyCorp announced the appointment of Timothy King, formerly chairman, president and CEO of Wells Fargo Insurance, as president of its Retail Banking operations. King, whose financial services career spans 30 years, leaves his role as chairman, president and CEO of Wells Fargo Insurance, Inc., a Minneapolis- based subsidiary of Wells Fargo & Co. In his new position, he will oversee a $34.7 billion-deposit retail banking business with a 12-state branch network that includes more than 900 KeyCenters, 2,200 ATMs and one of the nation’s most highly regarded internet banking sites, Key.com(R). KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of approximately $84 billion.

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VISA Makes Waves in the Contactless Payment Arena

A contactless VISA card has entered the marketplace to join MasterCard’s “PayPass” and American Express’ “ExpressPay.” VISA Asia Pacific this week introduced “VISA Wave,” the first-ever VISA contactless smart card that is fully compatible with global EMV smart card standard. The first 2,000 “VISA Wave” cards will be issued by MBF Cards in Malaysia in a trial that runs until August 31st. The pilot involves more than 150 merchant locations in Kuala Lumpur. ‘VISA Wave” is a combi chip card with both contact and contactless interfaces. Since last year, VISA has conducted extensive focus group research among consumers between the ages of 20 and 35 in Malaysia to test the appeal of contactless card products. The majority of consumers in the research find the concept of contactless payment appealing. Consumers surveyed expressed an interest in using the contactless interface of the card for quick and easy payment of low-ticket purchases. Supermarkets and fast food chains are among the top retail locations that consumers will use for contactless payments, according to VISA’s research.

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CardLogix Introduces the ATMobility Platform

CardLogix announced the “ATMobility” platform, a cost effective secure solution featuring a smart card, handheld reader and server-side software. ATMobility works in regular debit card environments, ATM machines and with a home PC. For on-line account logon, after insertion of the smart card and entry of a PIN, ATMobility generates a one-time number set instead of the password itself. CardLogix is the leading U.S. supplier of smart cards and software for the transaction of data and value. AOS Hagenuk is a leading innovator and supplier of low cost multifunctional secure terminals used in financial, health, security (access) and retail applications.

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Combined Debit + Credit Processing Solution Announced

Fiserv has introduced a combined debit and credit processing solution to enable financial institution clients to consolidate all of their card-based product offerings, including credit, debit and ATM cards, with a single-source provider. Unique advantages to Fiserv clients include relationship pricing that provides economies of scale for increased transaction volumes, an enterprise-wide viewpoint for enhanced account relationship management, and the ability to leverage key technology and infrastructure requirements including telecommunications services. Fiserv also is planning to offer elements of a combined back office support system as part of its debit and credit service suite. Fiserv designed its solution by leveraging its extensive ATM, POS and off-line debit transaction processing experience with the Fiserv “PLUS System.” The “PLUS System” unites “VisionPLUS” credit processing software with Fiserv information-processing expertise. The service gives clients the ability to leverage a total Fiserv relationship.

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Nova Acquires a West Coast Merchant Card Portfolio

NOVA Information Systems has signed a deal to acquire Union Bank of California’s merchant accounts and will provide processing services, customer service and support operations to the bank’s 10,000 merchants. New merchant services referrals will be marketed through the bank’s 284 branches located in California, Oregon and Washington. The credit and debit card processing volume from this agreement is expected to reach $3 billion annually. The transaction is expected to close late in the second quarter 2004. UnionBanCal Corporation is a bank holding company with assets of $42.5 billion at December 31, 2003. NOVA Information Systems, a leader in the payment processing industry, is a wholly owned subsidiary of U.S. Bancorp.

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Consumers Trust Issuers for Online Bill Payment

A new study shows that U.S. consumers are embracing the idea of online bill payment at their financial institution’s Web site, as peace of mind in dealing with an institution they have an established trusted relationship with. The survey, sponsored by MasterCard’s “Remote Payment and Presentment Service,” found that 90% of survey participants who routinely pay their bills online at their financial institution’s Web site, noted convenience as their primary reason for preferring this method. Particularly noteworthy, more than two-fifths of adherents to this bill-paying method maintain they would change financial institutions if their current one stopped offering the service, taking their business instead to another financial institution that does offer online bill payment. Market researcher Gartner estimates that 35 million people pay their bills online now, a number that will grow to 65 million by 2007.

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ViVOtech Simplifies POS Contactless Payments

ViVOtech has rolled-out a new solution that lets POS vendors expand the functionality of POS systems to include contactless payments, quickly and easily The “ViVOpay OEM” module works with countertop terminals and integrated cash register systems as well as with unattended kiosks, gas dispensers and vending machines. The new solution has the ability to work as an interoperable contactless solution that can accept contactless payment programs from leading brands and supports value-added applications such as the loyalty and gift card applications. “ViVOpay OEM” supports contactless devices based on ISO 14443 type A and type B standards adopted for leading credit, debit, and pre-paid card brands. It also accepts MiFare devices widely being used by transit systems in various countries as well as new cost effective “Ultra Light MiFare” devices for value added loyalty and closed loop pre-paid and gift card applications.

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Transaction Systems Architects Profits Double

Omaha-based Transaction Systems Architects reported first calendar quarter revenues of $76.5 million, an increase of 10.5% over the same quarter last year. Net income increased 96% to $8.0 million for the first quarter. During the quarter, the Company added eighteen new customers and brought its worldwide presence to 76 countries. ACI Worldwide added fourteen new customers during the quarter. Solutions licensed to these customers included “BASE24,” “ACI Payments Manager,” “NET24-XPNET,” “ACI Smart Chip Manager,” and “ACI Proactive Risk Manager.” ACI Worldwide also licensed capacity upgrades to 17 customers and licensed 12 new applications to existing customers during the quarter, including a “BASE24-es” solution on the HP UX platform. The Company completed the quarter with $233.1 million in backlog. For complete details on TSAI’s latest performance visit CardData ([www.carddata.com][1]).

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

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CO-OP Lands Full-Processing Contract in New England

The CO-OP Network has signed a deal to process and switch all of Digital Federal Credit Union’s ATM transactions. In addition to continuing to supply DCU’s more than 218,000 members with access to 18,000 surcharge-free ATMs nationwide, CO-OP Network will now be processing and switching all of DCU’s ATM transactions. CO-OP Network, established in 1981 and located in Ontario, Calif., is wholly-owned by its credit union shareholders and provides volume discounts on products and services that include risk management as well as debit and deposit access. Digital Federal Credit Union is a full-service, not-for-profit financial institution cooperatively owned by and operated for its members.

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EURONET 1Q/04

Euronet Worldwide reported consolidated revenues of $81.1 million and net income of $3.3 million for the first quarter, compared to $33.1 million in consolidated revenues and net income of $15.4 million for the first quarter of last year. Net income for the first quarter 2003 included a gain on the sale of the U.K. ATM Network of $18.0 million. The EFT Processing Segment posted first quarter revenues of $14.9 million, compared to $11.9 million reported for the first quarter 2003. The EFT Processing Segment processed 34.9 million transactions in the first quarter compared to 23.4 million transactions for the same period last year. The segment completed the quarter with 3,870 ATMs owned or operated, compared to 2,994 ATMs at the end of the first quarter 2003. Euronet owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, U.K., Greece, Romania, Slovakia, Kosovo, India, and Egypt. The Prepaid Processing Segment reported first quarter revenues of $62.9 million, compared to $17.4 million reported for the first quarter 2003. Total transactions processed by the Prepaid Processing Segment in the first quarter were 48.5 million, compared to 12.0 million prepaid transactions processed in the first quarter 2003 (two months activity included in 2003). The Prepaid Processing Segment processes electronic point-of-sale prepaid transactions at more than 150,000 point-of-sale terminals across more than 60,000 retailers in Europe, Asia Pacific and the U.S. The Software Solutions Segment reported $3.2 million in revenues, compared to $3.9 million in revenues for first quarter 2003.

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