InfoSpace e-Debit/STV

WA-based InfoSpace has acquired substantially all of the technology and intellectual property of eCash Technologies and plans to extend its payments expertise to include stored value and e-debit solutions for merchants and financial institutions. InfoSpace says that through advanced encryption and digital signature technology, the debit solution is being designed to be able to authenticate the consumer and merchant, and authorize the payment via secure protocols developed by leading debit card associations. In addition, the solution is being designed to provide consumer identification and real-time verification of funds, allowing merchants to enjoy the equivalent of a “card present” transaction without certain of the fraud and charge-back concerns of “card not present” payments.InfoSpace also plans to offer merchants stored value coupon, incentive, loyalty and promotion services that can be redeemed both online and offline. In the fourth quarter, InfoSpace Merchant services processed more than $1 billion in transactions, up from $700 million reported in the previous quarter.


ORCC 4Q/01

VA-based Online Resources Corp. reported this week that is operating loss for the fourth quarter declined 71% to $1.2 million, versus a $4.2 million loss in the prior year. Revenue for the fourth quarter increased 34% to $6.7 million and gross profit margin increased to 47% of revenue. The Company continues to expect revenue to increase approximately 28% to 32% during 2002 and also projects gross profit margin in the range of 52% to 55%. Online Resources processes approximately 70 million transactions annually, including $3.5 billion in consumer bill payments. For complete details on ORCC’s 4Q/01 performance visit CardData ([][1]).



Experian e-Check Service

Experian, a leading provider of global information solutions, announced that First American Payment Processing Inc. has selected its eSeries Authentication Solutions to verify the identity of electronic check holders for their Automated Clearing House electronic payment processing. Experian’s powerful real-time authentication tool augments the security and integrity of electronic payment and debit transactions processed through First American’s Web site () on behalf of merchants worldwide.

“In the fast-paced world of today’s digital economy, the luxury of a face-to-face transaction may not always exist,” said Carl Towner, CEO of First American Payment Processing. “Consequently, providing a prompt and secure online customer experience is vital to a business’ success. In the absence of face-to-face interaction, Experian’s Authentication Solutions helps our merchants instantly verify customer identity and conduct secure transactions while safeguarding them from fraud.”

To give clients flexibility based on their business needs, eSeries Authentication Solutions offers three levels of real-time consumer authentication. Level one offers basic verification and standardization of name and address. Level two builds on level one with a customized interactive session with the customer that utilizes Experian’s extensive databases to verify customer identity. Level three provides complete authentication, drawing on levels one and two and adding customized, top of mind questions designed to be answerable by the consumer alone. Level three detects potential fraud and provides superior security to safeguard high-risk transactions and sensitive exchanges.

First American has integrated the most sophisticated level of Experian’s eSeries Authentication into their electronic payment processing combined with a scoring system customized by each of their merchants.

As a result, First American’s merchants receive the maximum protection from fraud and stay in the driver’s seat when it comes to approving transactions.

“Authentication is a vital step for safe and secure e-business of any kind,” said Scott Worthem, vice president and general manager of Experian’s e-commerce business unit. “Our relationship with First American Payment Processing illustrates how eSeries can be leveraged to fit the needs of merchant-transaction processors and their clients. We’re very pleased to be working with First American as their authentication provider.”

About Experian

Experian enables organizations to find the best prospects and make fast, informed decisions to improve and personalize relationships with their customers. It does this by combining sophisticated and intelligent decision-making software and systems with some of the world’s most comprehensive databases of information on consumers, businesses, motor vehicles and property. Through multi-channel delivery of its Web-based products and services, Experian enables its clients to conduct secure and profitable e-business and develop state-of-the-art Customer Relationship Management (CRM) systems for communicating and building relationships with customers. Experian is a subsidiary of GUS PLC and has headquarters in Nottingham, UK, and Orange, Calif. Its 12,000 people support clients in more than 50 countries. Annual sales are approximately $1.5 billion.

For more information, visit the company’s Web site at .

About First American

First American is an ACH Processing company based in Phoenix, AZ. First American, through its Internet presence: , offers merchants a suite of services related to online transaction processing. These services include the most advanced tools available for account validation, online transaction reporting, and real-time online consumer authentication.


FDMS Email Marketing

Roving Software, the leading provider of Do-It-Yourself Email Marketing tools and services for small and medium sized businesses, announced an agreement with First Data Merchant Services the worldwide leader in electronic payment solutions, and a subsidiary of First Data Corp.

Under the agreement, First Data Merchant Services will promote Constant Contact, the leading web-based self-service email marketing solution, to their merchant alliances that include the nation’s largest financial institutions representing more than 2 million online and offline merchant locations. With Constant Contact, merchants can easily and affordably build, manage and rent opt-in email lists, create and deliver professional email communications, and track campaign results automatically.

“First Data Merchant Services is a global market leader with strong alliances and extensive market reach and influence,” said Gail Goodman, CEO, Roving Software. “Companies who look to these alliances for credit card processing and merchant acquisition, will now be able to broaden their offering and make their merchants more successful by providing Constant Contact. We are delighted to be associated with FDMS and promoted to their customer base.”

“Permission-based email marketing has become a vital element of success for both online and offline merchants,” said Steven L. VanFleet, senior vice president of product development for First Data Merchant Services. “We choose to work with industry leaders like Roving to expand our offering to our alliances and their merchants. Constant Contact is a best-of-breed email marketing solution and we are very pleased to add this powerful tool to our set of recommended products and services.”

About First Data Merchant Services

First Data Merchant Services enables merchants to accept any type of electronic payment – credit, debit, electronic check, EBT, smart card – anytime, anywhere. A subsidiary of First Data Corp., First Data Merchant Services annually processes and settles almost 9 billion transactions for more than $490 billion in sales volume from 2.8 million merchant locations. Through partnerships and various relationships with leading financial institutions and independent sales organizations, First Data Merchant Services delivers industry leading electronic payment and e-commerce services and solutions. First Data Corp. (NYSE: FDC), with global headquarters in Denver, powers the world economy, serving over 1,400 card issuers and millions of consumers worldwide. First Data makes it easier, faster and more secure for people and businesses to buy with virtually any form of payment at the point- of-sale, over the Internet or by money transfer. For more information, please visit .

About Roving Software

Roving is the leading provider of self-service email marketing products and services to small and medium businesses (SMBs). Constant Contact, Roving’s Web-based e-mail marketing solution, enables businesses to easily create and send professional HTML e-mail newsletters, promotions, announcements and more with no technical expertise required. It is affordable, easy-to-use and includes a free 60-day trial. Constant Contact is designed and priced for SMBs and is available through a wide variety of channel partners, such as office supply retailers, small business portals, Web affiliates and Web site development software and services companies including, Cisco Systems, Inc., Elibrium, Inc., First Data Merchant Services, MasterCard, and VeriSign. Roving Software is funded by Morgan Stanley Venture Partners, the venture capital arm of Morgan Stanley Dean Witter & Co., Commonwealth Capital Ventures, Longworth Venture Partners and VeriSign, Inc. For more information, visit .

Roving, Roving Software, and Constant Contact are trademarks or registered trademarks of Roving Software Inc. All other company and product names may be trademarks or registered trademarks of their respective companies.


Providian Execs

Providian Financial Corporation President and CEO Joseph Saunders announced today that the Company has retained Russell Reynolds to assist in identifying and recruiting a new chief financial officer.

In a memorandum to employees, Saunders announced today that Providian CFO Jim Rowe has decided to leave the Company to pursue other activities. He also announced that David J. Petrini has resigned his position as vice chairman and has agreed to serve as the Company’s chief financial officer on an acting basis pending the successful completion of the search.

Saunders expressed gratitude for the years of service that both Rowe and Petrini have given to the Company.

San Francisco-based Providian Financial is a leading provider of credit cards and deposit products to customers throughout the U.S.



Gemplus, the world’s number one provider of solutions
empowered by smart cards, announced that its Java Card technology-
based GemXplore `Xpresso, is the first to be certified Evaluation Assurance
Level (EAL)5+ by the Common Criteria security standards body. This far exceeds
current legal requirements. Common Criteria is rapidly becoming standard
security for sensitive data; European digital signature laws currently require
EAL4, while following September 11, the US National Security Agency and NIST
(National Institute of Standards and Technology) are considering basing their
security specifications around Common Criteria.

By being awarded this exclusive level of smart card security, Gemplus has
once again proven its technology leadership use of Java Card technology for
smart cards. This major technological step will open new possibilities for
trusted services in areas such as banking, government ID and e-commerce from
both wireless and wired devices.

From a Secure Mobile Experience …

The SIM is already the preferred platform for many mobile commerce
services, such as banking, betting, stock brokering and billing. Now that
GemXplore `Xpresso has achieved this unprecedented security certification it
will become a key enabler for the growth of trusted services.

Mobile operators have long understood the SIM’s key role in securing their
subscribers’ mobile experience, ensuring that private data, such as bank
account details, never fall into the wrong hands. As the wireless application
market starts to take on a more open, Internet-like look, operators look
towards proven security standards. This will become increasingly important in
a 3G environment where digital rights, such as music copyright, need to be

“We are currently developing a mobile banking service with Banksys for the
Belgian Market,” states Martin Willems, Technical Security Manager at
Mobistar, Belgium. “When Gemplus told us that their SIM would reach common
criteria we had increased confidence that their products would provide the
level of security required for protecting financial details. GemXplore
`Xpresso will give our customers the required level of trust in our services.”

“This certification reconfirms the importance of Java Card technology for
security and privacy protection. Java technology has been a major enabler for
the end-to-end delivery of secure service solutions,” said Rich Green, Vice
President Java Technologies, Sun Microsystems. “We are pleased with Gemplus’
continued commitment to our Java Card platform and their achievement as one of
the first smart card companies to offer this level of security certification
to the market. This will pave the way for even more customers to take
advantage of open and secure data services.”

With secure applet download, services such as mobile banking can be
delivered safely to the end users’ mobile phone whenever the operator or
subscriber wants. Once the customer subscribes to a particular service, the
operator needs to be assured that it is stored securely and doesn’t interfere
with their subscriber’s data or applications. EAL5+ ensures that appropriate
firewalls and download infrastructure are in place.

Subscribers worldwide will see the benefits as GemXplore `Xpresso exists
for GSM, CDMA and 3G.

… To Identity Services

Gemplus’ government and military smart card, GemXpresso Pro 64k, is also
based on Java Card technology and has the same security level as GemXplore
`Xpresso, providing the level of security appropriate for governments and
military organizations in Europe and the United States.

Throughout a nation, state or city, a government’s various departments and
agency offices need a rapid, secure and efficient way in order to not only
identify citizens and their rights, but also to offer relevant services and
benefits. As a highly secure portable identification and communication
medium, solutions incorporating GemXpresso Pro 64K are optimal for providing
both reliable, physical and logical identification of individuals, while
securing the privacy and integrity of electronic transactions.

Common Criteria is an international certification that evaluates the
security of IT products. It originated in the European, US and Canadian
banking sectors. It has recently been adopted as an ISO standard (ISO/ISEC
15408). EAL represents the level of confidence of an IT security product or
system evaluated by Common Criteria.

Gemplus helps its clients offer an exceptional range of portable,
personalized solutions that bring security and convenience to people’s lives.
These include mobile Internet access, inter-operable banking facilities,
e-commerce and a wealth of other applications. Gemplus is the only completely
dedicated, truly global player in the Smart Card industry, with the largest
R&D team, unrivalled experience, and an outstanding track record of
technological innovation. Gemplus trades its shares on Euronext Paris S.A.
First Market and on the Nasdaq Stock Market as GEMP in the form of ADSs. Its
revenue in 2000 was 1.205 Billion Euros. It employs 6721 people in
37 countries throughout the world.


BSM 3Q/01

BSM Technologies Inc. announced financial results for the year-ended September 30, 2001.

BSM Technologies Inc. reported a net loss per share for fiscal 2001 of
$0.02 compared to a net loss per share for the same period last year of $0.30
per share. The Company’s consolidated revenues for fiscal 2001 totaled $8.6
million compared to revenues of $20.3 million for fiscal 2000.

During the year ended September 30, 2001, the Company reduced
administration and general expenses, professional fees, marketing, advertising
and promotions by $735,683 compared to year ended September 30, 2000, because
of the elimination of certain expenses and improved controls. The Company also
reported lower expenses because of wages and consulting fee reductions.

In computing the loss per share amounts, shares which are contingently
issuable based on future performance should not be included in the calculation
of the weighted average number of common shares outstanding until all
conditions of the future performance are met. In prior years, certain of these
shares were included in the calculation of the weighted average number of
common shares outstanding. Consequently, the earnings per share numbers for
the year ended September 30, 2000 have been restated to conform to the basis
of computation used in the year ended September 30, 2001 which excludes
contingently issuable shares in the calculation of the weighted average number
of shares outstanding.

“Year 2001 has been challenging for many organizations, including BSM,”
said Nick Cirella, BSM’s President and CEO. “We have seen a post-Y2K decline
in the number of computers required by corporations and a drastic decrease in
technology prices. This has decreased market demand for new and used products
and this has significantly reduced our 2001 revenues from our 2000 level.
Through aggressive cost cutting and job consolidation wherever possible,
management has been able to increase profit margins on product sales and
services. Our Encore Asset division has added additional revenues and profits
to the corporation through its strong asset management and services business.”

“There have been many changes to the Company over the last year,” said
BSM Chairman Andrew Nellestyn. “Management had to completely change its focus
and eliminate unprofitable divisions to react to the general technology sector
slowdown. They have done an excellent job and the Company now shows positive
growth potential.”


BSM Technologies Inc. and its subsidiaries BSM Wireless and Encore Asset
Services Inc. provide customers with a wide range of asset management, asset
tracking and asset monitoring solutions through traditional and wireless
technology. BSM also provides key business functionality and defined
solutions, such as secure credit card transaction processing, plus the
development of custom e-business solutions for corporations seeking to serve
customers better and more cost effectively using an Internet business model.


Australian Fee Fight

MasterCard launched a shot across the bow in Australia over the weekend, threatening to abandon the country if the Reserve Bank outlaws interchange fees and allows merchants to surcharge customers. MasterCard says the proposal by the Reserve Bank of Australia will cost cardholders hundreds of millions of dollars in higher fees and charges. The card association also says it will make it more difficult for many consumers to get credit and will lessen competition among credit card issuers to the disadvantage of small retailers and community banks. According to MasterCard, the only apparent winners would be large retailers, who not only stand to gain a windfall of $500 million annually, but also the right to surcharge cardholders for using credit cards. MasterCard says that large retailing conglomerates would get the right to accept credit cards for practically nothing and be allowed to surcharge cardholders on top of that. The RBA released the proposals in mid-December according to The RAM Report ( The RBA conducted a two-year review before offering the new rules. The proposed reform measures will apply to Bankcard, VISA, and MasterCard, which were formally designated by the RBA as payment systems subject to its regulation in April 2001. Designation was the first step to be taken before the Reserve could use its powers under the Payment Systems Act of 1998. (The RAM Report 12/14/01)



Gemplus announces it was chosen by the
Stock Exchange from Rosario City in Argentina, to implement a secure
e-commerce solution based on smart cards and digital signatures for brokers
operating in the cereal market.

With Gemplus’ security solution, brokers can use a smart card to digitally
sign and register transactions performed through the website,
designed by the Cereal Stock Exchange. Previously, these types of transactions
were formalized in paper.

Using PKI (public key infrastructure) based digital signature software in
combination with a smart card and a reader-writer device connected to the
computer, the broker signing the contract is securely authenticated and the
integrity of the trade contents are validated, enabling a time-stamped and
non-disputable trading transaction.

“Incorporating this technology is a step forward on the market scope. We
want to provide features as well as add elements that contribute to the
development of a more nimble and secure performance,” said Javier Cervio,
Rosario’s Cereal Stock Exchange General Sub-manager.

The smart card securely stores personal information about the user, and
works as a personal web-based “ID card” each time the subscriber signs a
contract. This smart card enabled digital signature solution is based on
Gemplus’ GemSAFE security suite and provides the users with:

An easy-to-use technology that speeds contract trading procedures and
accelerates commercial duties
An efficient trading process that reduces costs throughout the
commercial chain and increases productivity
A highly secure, solution that anticipates and reduces digital fraud,
assuring the integrity and validity of signed contracts.

“Gemplus provides a secure yet user-friendly solution, designed to satisfy
the increasing need for secure user authentication and information exchange on
the Internet, all under absolute privacy,” said Ian Walmsley, Gemplus
Financial and Security Services Business Unit, Latin America. “We believe that
this type of application answers significant needs of online transaction

GEMPLUS: the world’s number one provider of solutions empowered by Smart

Gemplus helps its clients offer an exceptional range of portable,
personalized solutions that bring security and convenience to people’s lives.
These include mobile Internet access, inter-operable banking facilities,
e-commerce and a wealth of other applications.

Gemplus is the only completely dedicated, truly global player in the Smart
Card industry, with the largest R&D team, unrivalled experience, and an
outstanding track record of technological innovation.

Gemplus trades its shares on Euronext Paris S.A. First Market and on the
Nasdaq Stock Market as GEMP in the form of ADSs. Its revenue in 2000 was 1.205
Billion Euros. It employs 6721 people in 37 countries throughout the world.



Europay International, MasterCard’s partner in Europe, Europay Austria and APSS, the operator of Austria’s largest ATM network, have announced the completion of a joint programme to roll-out ATM EMV acceptance in Austria.

Through the close collaboration of all parties, including ATM application provider, SBS Software and ATM manufacturer Diebold, 2,200 Austrian ATMs (82% of all ATMs in Austria) are now able to accept EMV based transactions for all Europay/MasterCard brande
d cards. The 16-month long project secures Austria’s position as the sixth country in Europe (after Belgium, Denmark, Slovakia, Spain and Sweden) to secure live EMV Chip ATMs for Europay/MasterCard cardholders.

The ATM deployment, is the first step in the implementation of the country’s road-map towards EMV migration, with further activity now under way for the deployment of POS terminals and the issuance of MasterCard credit and Maestro debit cards with EMV Chi
p applications.

“For our member banks we need to demonstrate that when it comes to implementation, we can deliver all the technical assistance needed to make it happen,” said So”ren Sasse, Manager, Chip Services, Europay International. “Our collaboration with Europay Aus
tria and APSS is evidence of this, as the programme demanded not only the best-in-field expertise but also a committed team who could exceed the time and delivery expectations of our Austrian members”.

The EMV progress in Austria reinforces the industry’s commitment to making payment products and the overall payment system more secure, therefore helping to combat increasing levels of payment card fraud.

“The migration to chip is a necessary step against fraud for payment systems”, said Martin Deutscher, Project Manager, Europay Austria. “Our work will enable Europay International customers and their cardholders to benefit from the increased security offe
red by the Chip”.

Speaking on behalf of Europay International, Christophe Zehnacker, Manager, Chip Product Management, said “EMV Chip migration is now well on track in Europe, in Latin America and increasingly in the Asia Pacific region. We expect to see over 200 million E
uropay/MasterCard product branded cards carrying this state-of-the-art technology for security and added functionality by 2005, representing at least two thirds of our entire card base”.



Philips Semiconductors, a division of Royal Philips Electronics, has entered into an agreement with Gemplus Card International — the world leader in smart card-based solutions — to supply its advanced HiPerSmart product family for a large part of the next generation of Gemplus’ 32-bit smart cards. This new generation of cards, featuring open operating systems, will support advanced, secure and high performance applications and services including 3G wireless communications, mobile banking and online trading.

Based on SmartMIPS(TM) architecture, Philips Semiconductors’ HiPerSmart computing platform will provide low power, high performance chip solutions enabling Gemplus to develop ground breaking, multi-application products for the next generation of smart cards.

“Philips Semiconductors’ partnership with Gemplus marks an important stage in the evolution of the smart card market in terms of performance, security and memory capabilities,” said Reinhard Kalla, general manager for chip cards at Philips Semiconductors. “As an integral part of our roadmap, HiPerSmart highlights Philips Semiconductors’ unrivalled position as the leading provider of highly secure and flexible smart card IC solutions and demonstrates our ability to combine advanced expertise in security, cryptography, flexibility and non-volatile storage with leading Central Processing Unit (CPU) architectures.”

The 32-bit HiPerSmart computing platform will provide improved computing power — as required by interpreter-based languages and multi-application operating systems — alongside larger memory addressing performances. This architecture provides instructions to support cryptographic algorithms, such as DES, AES, ECC and RSA, leading to a more flexible implementation.

Benefiting from Gemplus’ and Philips Semiconductors’ expertise in smart card technology, this innovative architecture will pave the way for the development of the Universal IC Card (UICC) and the Universal Secure Identification Module (USIM). USIM will be as important to 3G applications as SIM has been to GSM and will enable multiple applications to co-exist on both the UICC and the network.

“Our work on designing a leading-edge card operating system will be largely enabled by HiPerSmart, the Philips’ 32-bit computing platform based on SmartMIPS(TM) architecture. Entering into this agreement, Gemplus recognizes that the technical leadership of Philips, as well as its expertise in security implementation will leverage the effectiveness of the SmartMIPS(TM) CPU core. The combination of the cryptographic performance enabled by this architecture, together with the silicon technology from Philips Semiconductors, will allow Gemplus to reinforce its leading position in the smart card market,” said Jean-Luc Ledys, director of Silicon Technologies at Gemplus. “Gemplus is committed to improving the potential of smart cards through the combination of innovative hardware and software, and will push this architecture to become a de facto standard for high-end PKI and non-PKI multi-application cards.”

Philips Semiconductors’ 32-bit HiPerSmart is manufactured on 0.18 um CMOS and will be available at the end of 2002. Its introduction will complement the company’s existing portfolio of chip solutions for smart cards, which include contactless hardwired, high security 8-bit and 16-bit smart card controller ICs and dual interface smart card controller solutions.

About Philips Semiconductors

Philips Semiconductors, a top ten semiconductor supplier with revenues of US $4.4 billion in 2001, is a world leader in silicon systems and standard products for consumer, communications, automotive and computing products. The organization designs, develops and manufactures silicon solutions based on its innovative Nexperia(TM) architectures to create living technology for its customers creating products, service providers using the products, and consumers enjoying the resulting products and services. For more information:

About Gemplus

Gemplus helps its clients offer an exceptional range of portable, personalized solutions that bring security and convenience to people’s lives. These include mobile Internet access, inter-operable banking facilities, e-commerce and a wealth of other applications. Gemplus is the only completely dedicated, truly global player in the Smart Card industry, with the largest R&D team, unrivalled experience, and an outstanding track record of technological innovation. Gemplus trades its shares on Euronext Paris S.A. First Market and on the Nasdaq Stock Market(TM) as GEMP in the form of ADSs. Its revenue in 2000 was 1.205 Billion Euros. It employs 6800 people in 37 countries throughout the world.


FAPS Hires Stebbins

First American Payment Systems, L.P., one of the fastest growing merchant credit card processing acquirers in the U.S., is pleased to announce that Ellen Stebbins has joined the company as Vice President.

With more than 20 years experience in marketing and administrative operations, Stebbins will actively pursue a strategy of ATM acquisitions for First American.

Stebbins comes from Core Data Resources, one of the top five non-bank ATM processors in the U.S., where she was the Director of Marketing. She previously worked for Affiliated Computer Services in Dallas where she held the position of Business Development Manager and was later promoted to Director of Business Development. Stebbins has also held several managerial positions for Lynk Systems of Atlanta. Stebbins is on the Board of Directors at the ATM Industry Association, an alliance dedicated to the global advancement of ATMs. In addition, she is a member of the Electronic Funds Transfer Association, a 23-year old organization dedicated to the advancement of electronic payment systems and commerce.

Neil Randel, President and Chief Executive Officer said, “First American’s strategic plan is growth through acquisitions of existing ATM portfolios nationally, as well as the full service placement of ATMs in venues that can support one. Ellen joining First American is the first step in us accomplishing those goals.”

“Ellen brings a great wealth of ATM industry knowledge and experience to First American. Her background in both sales and operations is invaluable. I believe she will be a fundamental key to the success of our ATM initiatives,” said Colleen Lee, Vice President of Sales and Marketing.

Stebbins said, “After listening to Neil talk about First American’s visions and values, I knew it was something I wanted to be involved in. I am very excited about the opportunity to assist in First American’s growth through ATM acquisitions.”

About First American

First American Payment Systems, L.P. provides full-service electronic credit card authorization and payment systems to retail, restaurant, mail order, telephone order, Internet and home-based merchants throughout the U.S. First American’s divisions include national ATM deployment, Secur-Chex(TM) check guarantee, FirstPay.Net(TM) e-commerce payment gateway, and Merimac Capital point-of-sale equipment and ATM leasing. The company also offers electronic gift certificates and electronic check conversion. First American provides services for more than 25,000 merchants and operates 280 ATMs nationally. For more information, visit [][1].