CHIP & PIN

London-based Mosaic Software launched a new retail solution which enables retailers to support chip and PIN at the point-of-sale. “Postilion for Chip and PIN’ enables retailers to authorize transactions at the till even when the in-store systems are down. Non-financial cards can be used in bankcard authorization requests, allowing retailers to offer modern payment services such as mobile prepay top-up, staff discount and loyalty programs at the POS. Settlement cycles can be accelerated to receive acquiring bank payments earlier. The “Postilion for Chip and PIN” solution also guarantees cost-effective migration to support EMV Level I or Level II compliant chip card readers as well as secure PIN processing at the POS. eSocket.POS, an open Java-based component of the solution, is designed to operate on tills or the store servers within a network of integrated EPOS terminals. It communicates with Mosaic Software’s Postilion payment processing platform for the purposes of obtaining approval from the cardholder’s bank.

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BANKSYS LOYALTY

US-based Catuity has signed an agreement with Toronto-based KESM Transaction Solutions to be the exclusive provider of the loyalty application for Belgium-based Banksys terminals. The Banksys “C-ZAM/Smash” terminal is distributed in North America by BNA Smart Payment Systems, for which KESM also provides certified credit/debit applications. The Catuity loyalty application is expected to be installed along with payments on the multi-application terminal. KESM will act as the ASP, loading the Catuity loyalty application for deployment. Transactions and end of day reconciliation are performed with access to the Catuity loyalty application running on the KESM secure server. It marks the first such agreement for the Catuity application to be hosted by an Application Service Provider.

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Household Suits

Household’s recent restatement of net income since 1994 has produced shareholder lawsuits. The complaints allege that Household caused its stock to trade at artificially inflated levels through the issuance of false and misleading financial statements by, among other things, failing to properly amortize the Company’s co-branding agreements, and failing to record its expenses associated with its marketing initiatives. In addition, the lawsuits charge that Household improperly “re-aged” accounts, thereby concealing the Company’s actual delinquency ratios. Little Rock, AR-based Cauley Geller Bowman & Coates, Bala Cynwyd, PA-based Schiffrin & Barroway, and San Diego-based Milberg Weiss filed the suits this week. Household revised its net income, over the past eight years, downward by a total of $386 million Household said the restatement is due to changes in its accounting policies in conjunction with Mastercard/VISA co-branding and affinity credit card relationships, and a credit card marketing agreement with a third party. The revisions were made after a recent review by its new auditors, KPMG LLP. For complete details on Household’s 2Q/02 performance visit CardData ([www.carddata.com][1]).

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

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I-WEATHVIEW BANKING

Duncan-based Island Savings Credit Union has completed its conversion to Fincentric’s “i-Wealthview Banking.” The new software provides Island Savings with core banking capabilities, integrated delivery channels and real-time, online transaction processing. “i-Wealthview Banking” provides a complete front-to-back office banking solution that supports its many delivery channels such as branch, ATM, POS, IVR and Internet. Based in British Columbia, Island Savings is one of the ten largest credit unions in BC and is the largest Vancouver Island-based credit union, serving over 30,000 members and managing assets of over CN$550 million.

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CHARGE ANYwhere

New York City-based Comstar Interactive launched a wireless credit card processing solution this week. “CHARGE ANYwhere” combines a compact card swipe device with a Web-based transaction database and reporting system and other features in one low-cost package. The solution also includes check authorization and two-way messaging as standard features. The “CHARGE ANYwhere” integrates a magnetic card swipe reader with the BlackBerry-class “RIM 950/850” wireless handheld which is enabled for either the Cingular Wireless Mobitex network or the Motient network. The device connects wirelessly through Comstar’s gateway to credit card processing companies. Authorizations typically take five to seven seconds, on average. Larry’s Limos, a full-service limousine operator based in Birmingham, AL, has been a Comstar beta customer using CHARGE ANYwhere for the past several months. “CHARGE ANYwhere” can be purchased for as low as $674, which includes the device, features software, user name and activation fees. Monthly service charges start as low as $19.95. There also is a 10-cents per transaction fee.

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Charter One FYI Alerts

OH-based Charter One Bank has launched Centerpost’s “FYI Alerts” to provide customers with account information via mobile phones, work or home phones, pagers, PDAs, email, and fax. Customers can choose to be alerted to account activity such as recent transactions, low balances, new e-bill arrivals and more. FYI Alerts will also allow users to request a full financial summary in the form of a “mini-statement” – which can be set up to arrive daily, weekly or monthly.

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PayPal Merger

As eBay presses forward with its acquisition of PayPal, the New York State Attorney General announced an agreement yesterday with PayPal to discontinue its payment services to online gambling merchants. PayPal also agreed to pay penalties of $200,000 to the State of New York to cover the Attorney General’s costs of investigation. eBay previously announced that it intended to discontinue PayPal’s current business operations related to payment processing transactions for merchants involved in online gambling activities after it completes its acquisition of PayPal. PayPal also announced Wednesday that it has set Thursday, October 3rd as the date of the special meeting of stockholders to vote on the proposed merger with eBay Inc. and Vaquita Acquisition Corp. Earlier this week, PayPal and eBay announced that the waiting period under the Hart-Scott-Rodino Antitrust Act expired yesterday, giving the green light to eBay’s acquisition of PayPal.

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