VISA’s commitment to both the arts and
cinematic excellence is reflected in its continued sponsorship of the Montreal
World Film Festival for a fifth consecutive year. Running from August 22 to
September 2, the internationally renowned Festival brings films from more than
60 countries and five continents to an enthusiastic and discerning film-going

VISA is the exclusive card of the Festival, and is a major contributor to
the art of cinema in Canada through its Festival sponsorships, including the
Montreal World Film Festival, Toronto International Film Festival, Vancouver
International Film Festival and SPROCKETS Toronto International Film Festival
for Children. Through the sponsorship of the VISA Screening Room at the
Montreal World Film Festival and its advance purchase program for VISA
cardholders, VISA is dedicated to furthering the arts, both in Montreal and
across the country.

July 27th begins a ten-day advance purchase opportunity for VISA
cardholders to buy coupon books and passes before they go on sale to the
general public. The program has been well-received, with almost half of
Festival-goers using VISA cards to purchase their tickets.

The exclusive VISA 30-coupon book, priced at $165, is the deal of the
Festival and is available for purchase by VISA Gold and VISA Platinum
cardholders. It is valid for all screenings, including films in the Official
Competition, except Opening Night and Closing Night Galas. Coupons can be
exchanged for tickets at the Place des Arts or Parisien Cinema box offices
beginning August 17, or at any film festival theatre beginning August 22.

The VISA Screening Room, located at the Imperial Theatre on Bleury
Street, will once again play host to some of the finest films of the Festival
while providing attendees with a rare opportunity to meet with some of the
filmmakers and actors. Screenings will begin at nine each morning of the
ten-day event and continue well into the evening. Past screenings at the VISA
Screening Room have included such critically-acclaimed and highly-memorable
films as last year’s Academy Award(R)-nominated works “In the Bedroom,” and

The tradition of presenting prestigious films at the VISA Screening Room
continues in 2002 with a number of this year’s Festival entries making their
world or North American premieres. A select group of other films will find
themselves launched on the international scene for the very first time at the
VISA Screening Room.

“The Montreal World Film Festival provides us with an incredible
opportunity to celebrate artistic achievement from around the world and bring
it home to both Canadian and international audiences,” said Brenda Woods, Vice
President Marketing, VISA Canada. “As such, VISA is extremely proud of its
affiliation with this world calibre cinematic cultural event.”

North America’s only competitive film festival, the Montreal World Film
Festival holds the distinction of being the largest publicly-attended film
festival in the western world, with more than 400,000 movie-goers from around
the globe in attendance.

As the “World’s Best Way To Pay”, VISA is the leading credit card payment
brand in Canada and around the world. There are more than 24 million VISA
cards in Canada accepted at more than 623,000 merchant locations across the
country. VISA is accepted at over 24 million locations around the world
including over 750,000 ATMs. The Internet address for VISA is


Best Western Deal

The world’s largest hotel chain has teamed up with MasterCard International for the “MasterCard Presents Major League Baseball Memorable Moments” promotion. Best Western has joined the summer-long promotion that gives its guests, MasterCard cardholders and baseball fans the opportunity to vote on baseball’s “most memorable moment” and a chance to win an all expenses paid trip to the World Series. The grand prize winner will throw out a ceremonial first pitch at one of this year’s World Series games. The prize package includes four tickets to the game, lodging, airfare, ground transportation and spending money. In addition, Best Western will award daily prizes including autographed memorabilia and weekly prizes that include tickets to local Major League Baseball games across the USA. The “MasterCard Presents Major League Baseball Memorable Moments” promotion runs through September 20th. Best Western has more than 4,000 hotels in 80 countries.


TeleCheck Signs Tower

TeleCheck Services is providing Tower Records with check guarantee services in 103 stores nationwide. TeleCheck’s sophisticated analytical scoring models, combined with its reliable, accurate databases, provides a state-of-the-art risk management tool that helps merchants safely accept transactions. Tower Records and other merchants using the guarantee service can accept more checks and build business by offering a liberal check acceptance policy.



Thales e-Security, ACI Worldwide, Diebold, and VeriFone, this week announced the publication of a draft security specification proposing the first global interoperable method for triple DES session key management. Both VISA and MasterCard are actively encouraging the full implementation of an end-to-end 3DES compliant solution, from the point of card acceptance to the issuer host. 3DES is a state-of-the-art key encryption algorithm that raises the level of fraud protection for PIN-based debit transactions initiated at ATMs and POS terminals. While standards currently exist for 3DES master key management and 3DES DUKPT (Derived Unique Key Per Transaction), there is a lack of standards for session key management. Without standards, each vendor is required to develop proprietary implementations, placing an added interoperability burden on the systems that must transport session keys.


eFunds Acquisition

eFunds Corporation announced it has purchased CA-based Evergreen Teller Services for $9.4 million. Evergreen manages an ATM network and provides sales and service for more than 1,600 ATMs, mostly located in California and the northwest United States. eFunds plans to consolidate the Evergreen ATM network into its Access Cash business over the coming months and plans to continue to look for acquisition candidates. eFunds anticipates that the consummation of the transaction will contribute incremental revenues of approximately $7 million during the balance of the year. After the close of the Evergreen transaction, eFunds will manage approximately 14,300 ATMs in all 50 states and Canada.


Saks Deal

Household International this morning announced they have entered into an agreement to operate retailer Saks’ private label credit card business. Under the $1.4 billion transaction, Household will purchase the majority of the existing private label credit card accounts owned by Sak’s wholly owned credit card bank, as well as the outstanding balances associated with those accounts. The purchase price consideration will include the assumption of the Company’s securitization liabilities (estimated at $1.1 billion at closing), the purchase of owned accounts receivable, and an undisclosed premium. The Company expects to receive net cash proceeds at closing in excess of $300 million. Household will own the majority of new accounts and balances generated during the term of the alliance, which initially will be ten years. Saks will continue to provide all key customer service functions including new account opening, transaction authorization, billing adjustments, and customer inquiries. Saks will receive ongoing program compensation from Household. Saks currently employs approximately 550 associates in the administration of its private label credit card programs and anticipates eliminating fewer than ten positions. Saks said it will use the proceeds from the initial transaction primarily to repurchase common stock and to reduce debt.


Hypercom 2Q/02

Hypercom reported second quarter operating income of $3.3 million compared to 2Q/01’s operating loss of $2.1 million. The company also announced this morning that President and CEO Christopher Alexander has been elected Chairman of the Board to succeed George Wallner, the company’s founder and chief strategist. Net revenues for second quarter of $75.1 million were unchanged from the prior year and slightly under previous guidance. The revenue shortfall was primarily due to a timing issue in product delivery, and further, a currency translation charge due to the devaluation of the Brazilian real and Argentine peso. Net income for the second quarter was $380,000 compared to last year’s net loss of $5.8 million. By business unit, the core point-of-sale and network systems business achieved an operating profit of $5.5 million for the first six months of 2002, versus a prior year operating loss of $6.3 million for the same period. During the quarter, the company began shipping its new “ICE 5500Plus” and “ICE 5700Plus” terminals that incorporate Hypercom’s new “SureLoad” clamshell printing technology. For complete details on Hypercom’s 2Q/02 results visit CardData ([][1]).



eFunds 2Q/02

eFunds Corporation reported this morning that net income for the second quarter was $3.9 million compared to $7.7 million one year ago. Revenues for the second quarter were $133.0 million, essentially flat as compared with revenues of $132.8 million reported in 2Q/01. Results for the second quarter included $10.4 million in restructuring and other pre-tax charges. eFunds said revenue declines from data and software sales over the prior year period were offset by growth in its ATM management and electronic payments businesses. Revenues from electronic payments increased 3% to $47.3 million from $45.7 million in the second quarter of 2001. Revenue growth was driven by higher EBT case counts and renewals of certain government contracts at improved rates. Electronic payments reported operating income rose to $14.1 million in the second quarter compared to operating income of $11.5 million in the second quarter of 2001. The ATM management services segment reported revenues of $27.5 million, as compared to $18.3 million reported in the second quarter of 2001. The growth in this segment was due primarily to acquisitions, as well as increased branding and equipment sales revenue. For complete details on eFunds’ 2Q/02 results visit CardData ([][1]).



Bankruptcy Reform

The wrangling between Sen. Charles Schumer and Rep. Henry Hyde over abortion-related language in the bankruptcy reform legislation officially ended last night as committee conferees signed off on the package. The House could vote on the legislation today, and the Senate could follow next week. It could become effective as early as next March, if President Bush signs the law, as he has previously indicated. The abortion provision prevents protestors, who bar others from abortion services through the use of intimidation or interference, the ability to discharge debts arising from those actions. During the first three months of this year, 379,012 bankruptcy petitions were filed, the highest number of cases ever filed in any first calendar quarter. The total filings also broke the bankruptcy filing record for any 12-month period. The reform legislation, the most comprehensive in 25 years, will add a needs-based provision to the bankruptcy law, forcing some petitioners into a Chapter 13 repayment program instead of a Chapter 7 liquidation program. (CF Library 5/20/02)



Hitachi, Matsushita Electric Industrial Co, Ingentix GmbH & Co. KG/Ltd., SanDisk Corporation and Toshiba announced the creation of the “Mobile Commerce Extension Standard” for flash memory cards. Adding these security capabilities will enable flash memory cards to be used in electronic payment and the purchase of entertainment content such as music and video. Flash memory cards are mainly used to capture and store digital photos, digital video, data and audio. The new 5C standard outlines how the security features can be implemented in flash memory cards. The new standard will be promoted and licensed in the open market so that card standard organizations, card manufacturers and device vendors can use it for the implementation of their products. It is expected that complete standard specifications and licensing documents will be available to the public by October, 2002.