MasterCard International says it would vigorously oppose the proposal by the
Reserve Bank of Australia (RBA) to regulate the credit card industry, saying
that the proposed regulations would cost cardholders hundreds of millions of
dollars in higher fees and charges, make it more difficult for many consumers
to get credit and 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’s
Asia-Pacific president Andre Sekulic said while the elements of the RBA’s
were commendable, their proposals, if implemented, would backfire to the
disadvantage of the very groups they aim to help. In particular, Sekulic said
that the concept of transferring more of the cost of using credit cards from
merchants to cardholders was contrary to the public interest. By the RBA’s own
calculation, those costs amounted to $500 million a year or more. MasterCard
reluctantly decided to go public with its concerns after several years of
intense negotiations with the regulators. Sekulic said that the negotiations
were partially successful, in that they led the RBA to moderate its position
regarding who can issue credit cards and process credit card transactions.
However, he said that the RBA refused to acknowledge concerns on the critical
issue of interchange fees. Interchange fees are paid by the merchant’s bank to
the cardholder’s bank to help offset the cost of credit cards. It was only
for merchants to contribute to the cost of credit cards since they receive
benefits from accepting them — including guaranteed payment and incremental

The RBA’s proposal would significantly reduce interchange fees with the result
that credit card issuers would be forced either to raise fees or reduce
services to cardholders. Banks would issue cards only to the lowest risk
customers, making it more difficult for battlers and pensioners to have a
credit card. Ultimately these effects would result in a severe reduction in
use of credit cards and a contraction of the credit card business. Sekulic
said the RBA continued to insist that merchants be allowed to surcharge, that
is, to have the right to impose additional charges on those customers who
choose to pay by credit card. MasterCard’s rules currently forbid merchant
surcharging in order to protect its cardholders.

Speaking at a Press Conference in Canberra, Sekulic said that MasterCard
supported the RBA’s goal of providing greater competition and fee transparency
in the Australian payments industry. The problem, he said, was that the RBA’s
proposals would have the opposite effect, and would drive up costs,
particularly for those sections of the community that could least afford it:
‘battlers’, pensioners, the rural community and small retailers. Community
banks would also be driven from the credit card business and consumer credit
would be likely to become less available, both unintended consequences of
proposals. The plan would also limit freedom of choice by forcing people to
less secure payment methods like cash, or to use debit cards which do not
provide consumers with the same benefits as credit cards and are not as widely
accepted. According to Sekulic, Australian consumers, who have clearly
the convenience, universality and safety of credit cards like MasterCard,
not accept this level of ‘social engineering’ by the RBA. He said that large
retailing conglomerates would, at least in the short run, be the only winners,
since not only would they get the right to accept credit cards for practically
nothing, they would also be allowed to surcharge cardholders on top of
that. He
said that if left unchallenged, the RBA proposal would lead to the
concentration of the credit card business in the hands of a few large banks
since, with severely reduced interchange fees, most issuers of credit cards
would have to exit the business. Small retailers and traders will eventually
lose out in such a system since, unlike their larger competitors, they
would be
unable to issue their own cards and would not have the bargaining power
necessary to keep fees down. In the end, such a system would likely be more
expensive for everyone concerned. ‘Elsewhere in the world more progressive
central banks are encouraging non-cash payment methods for their efficiency,
cost-effectiveness and utility, yet the RBA efforts are regressing
Australia to
a cash-based society,’ Sekulic said. ‘We strongly believe that the wider
community has not had an opportunity to hear all sides of the debate
and as such we will be launching a major initiative to open up dialogue with
these different groups, especially those we feel will be most disadvantaged by
these changes.’

Background on MasterCard’s Position The RBA proposal involves changes to what
are known as four-party payment systems such as MasterCard, Bankcard and Visa.
Three-party payment systems such as American Express and Diner’s Club, which
typically carry higher fees than four-party systems, are excluded from the
proposal. Under the terms of the proposals unveiled on December 14, 2001, the
RBA would regulate three key areas of four-party credit card systems: the
setting of interchange fees, surcharging, and who can join the system.

The effect of RBA’s proposal in each of these areas, and MasterCard’s
are briefly described below:

The Setting of Interchange Fees: Interchange fees allow the cost of issuing
credit cards to be shared by the two groups that benefit from them —
cardholders and merchants. The RBA proposes to force four-party credit card
systems to lower interchange fees, by the bank’s own estimate, by $500 million
per year. MasterCard opposes this proposal since it would merely transfer
costs to cardholders. At the level of interchange fees proposed by the RBA:
cardholders would have to pay so much for credit cards that many people would
be unable to afford them; (2) smaller credit card issuers would be forced out
of business, leaving only a few large issuers and; (3) eventually, four-party
systems, like MasterCard, would be replaced by less efficient and less
competitive three-party issuers. At that point, the cost of credit cards would
increase for everyone, with battlers, pensioners, rural communities and small
retailers being affected the most.

Surcharging: Surcharging refers to fees charged by merchants to customers that
want to pay by credit card. MasterCard, like most payment systems, forbids
surcharging in order to protect its cardholders. The RBA proposes to permit
merchant surcharging. MasterCard opposes this proposal because it would
negatively impact cardholders and would make credit cards a more expensive
means of payment. In addition, in MasterCard’s experience, the only merchants
who are likely to benefit from the proposal are those who face little
competition and therefore can use surcharges to gouge consumers.

Who can join MasterCard: MasterCard’s membership rules are designed to allow
the widest possible participation in its system consistent with protecting its
members, cardholders and merchants from fraud and financial risk. For this
reason, MasterCard limits membership to institutions, like banks, that are
financially supervised. At one point, the RBA appeared to be inclined to
require the four-party credit card systems to admit into membership
unsupervised entities like merchants. MasterCard consulted closely with the
regarding the risks this would present and the RBA appears to have abandoned
this view. The RBA proposes to allow any entity to join the four-party credit
card systems as long as they meet Australian Prudential Regulatory Authority
(APRA) guidelines that are yet to be established. MasterCard does not oppose
this initiative as long as the new APRA prudential requirements are strict
enough to protect the integrity of the MasterCard system. The RBA also
certain other _hanges involving the manner in which members operate their
credit card businesses. MasterCard is consulting with the RBA to better
understand the nature and implication of these changes.

MasterCard International has a comprehensive portfolio of well-known, widely
accepted payment brands including MasterCard, Cirrus and Maestro. More than
billion MasterCard, Cirrus and Maestro logos are present on credit, charge and
debit cards in circulation today. An association comprised of more than 20,000
member financial institutions, MasterCard serves consumers and businesses,
large and small, in 210 countries and territories. MasterCard is a leader in
quality and innovation, offering a wide range of payment solutions in the
virtual and traditional worlds. MasterCard’s award-winning Priceless
advertising campaign is now seen in 80 countries and in 40 languages, giving
the MasterCard brand a truly global reach and scope. With more than 22 million
acceptance locations, no card is accepted in more places and by more merchants
than the MasterCard Card. At September 30, 2001, gross dollar volume exceeded
US$704 billion. MasterCard can be reached through its World Wide Web site at


New Triton ATM

Triton announced the release of the 9705 Model ATM for the US marketplace. The 9705 is the first Triton ATM that features the Triton designed and manufactured TDM-100 mechanism.

The TDM-100 features automatic error recovery. This allows the mechanism to slow and adjust movement to fix a jam automatically without having the ATM going out of service. The new TDM-100 maximizes security of the cash and at the same time minimizes the number of steps and complexity in cash replenishment for merchants. The TDM-100 is designed with a shorter feed-path for currency to move through the dispenser, requiring minimal upkeep. Ernest Burdette, President and CEO of Triton states, “We have reached yet another milestone in the history of Triton. By becoming a fully integrated manufacturer, we ensure our ability to manufacture an ATM with the lowest maintenance and service costs.” The TDM-100 will be debuted at the ATMIA Conference 2002 show, February 20th and 21st, in Hollywood, Florida.

Triton has achieved many milestones with respect to testing and troubleshooting dispenser mechanisms. Triton has developed one of the most rigorous testing procedures in the industry. This experience and knowledge base has assisted Triton in designing and producing the TDM-100. With the introduction of this mechanism Triton becomes a fully integrated manufacturer, allowing Triton to maintain reliability throughout the ATM and reduce the overall service and maintenance costs of our ATM.

Shipping of the 9705 with the Triton TDM-100 mechanism unit began today.

To obtain high- and low-resolution photos of the Triton 9700 Series ATM, send an e-mail to anitaa@trtn.com with “Send 9700 Photo” in the subject line.

About Triton

As the leading provider of cash-dispensing ATMs for off-premise locations, Triton is committed to redefining and leading the retail market for cash delivery systems. Triton is the largest provider of off-premise ATMs and ATM management software in North America and has more than 70,000 installations in over 17 countries worldwide. Triton is headquartered in Long Beach, MS and is an operating company of Dover Industries, Inc., a subsidiary of Dover Corporation. For more information about Triton, please visit [http://www.tritonatm.com][1] or call 1-228-868-1317 (U.S. toll free 1-800-367-7191).

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


AmEx Boost

J.P. Morgan has upgraded American Express to ‘buy’ from ‘market performer’. The research firm said it believes AmEx’s corporate travel and entertainment business is stabilizing. J.P. Morgan pointed to significant improvements in monthly billed business, commercial card volume trends and airline load factors. The firm also noted the positive impact of AmEx’s re-engineering initiatives, including the layoffs of up to 15,000 employees. J.P. Morgan set a $40, twelve-month price target for the AXP shares. American Express closed yesterday at $34.58, a 1.7% gain. American Express Travel Related Services reported fourth quarter net income of $170 million, a 64% decline from 4Q/00. Included in the 4Q/01 results are $219 million pre-tax ($140 million after-tax) of restructuring charges. Excluding the restructuring charge, TRS 4Q/01 net income would have been $310 million, down 34% from last year. Fourth quarter charge volume was down 5.5% compared to 4Q/00. Card loans have also slowed to an 11.5% annual growth rate, compared to 15.5% growth rate for 3Q/01. Charge-offs have soared 34% over the past twelve months while delinquency has increase nearly 18%. For complete details on American Express current and past performance visit CardData ().


Comdata Network Manager

Comdata Corporation announced the release of Comdata Network Manager, an Internet-based fuel management resource allowing subscribers to view, analyze, and build custom fuel purchasing networks from the largest available network of fueling locations in North America. Delivered in real-time over the Comdata’s common customer business-to-business Internet portal, iConnectData.com, Comdata Network Manager provides up to date fuel pricing information and the ability to create interactive fuel purchasing scenarios online.

“Fluctuations in fuel prices constantly challenge over-the-road fleets to use their fuel dollars wisely, so it’s never been more important to have a proactive and comprehensive fuel management strategy,” said Scott Phillips, senior vice president, Comdata Transportation Services. “Leveraging the universal access of the Internet, we designed Comdata Network Manager to give any fleet the ability to build customized supplier networks quickly and economically with the power of the largest fuel purchasing network available.”

Available by monthly subscription, Comdata Network Manager integrates current fuel pricing information from thousands of locations with the ability to experiment with how changes in network access could improve overall fuel costs. Network changes can be incorporated online, and are automatically linked to the fleet’s Comdata cards, essentially controlling where their drivers can fuel. The service also allows subscribers to print customized directories with updated fueling location information for distribution to drivers.

“Comdata Network Manager is a complete decision support system that makes fuel optimization affordable for any size fleet,” said Phillips. “The fuel analysis feature lets subscribers take a look at how a change in pricing relationship or fueling location would affect their fuel purchasing efficiency, so they can obtain the best value available in the marketplace based on individual fueling patterns and preferences.”

Among the comprehensive analysis features available via Comdata Network Manager:

• Analysis by purchasing habits, merchant chain or association.

• Month-to-date and year-to-date gallons purchased by state and interstate segment.

• Month-to-date and year-to-date transaction and discount analysis. • Current, 30-day, 60-day, or 90-day Comdata retail price, OPIS wholesale cost, and spread analysis.

• Rack, Tax Detail, Superfund, Transportation and Spread Detail by location. • Service center amenities available by location.

• Comprehensive and detailed mapping by location.

“With Comdata Network Manager, making strategic fuel purchasing decisions is as close as our customers’ keyboards,” said Phillips. “The service is completely Internet-based, always updated, and available 24 hours a day, seven days a week.”

Current Comdata customers can subscribe to and access Comdata Network Manager online, at [www.iconnectdata.com][1]. For additional information, please call Comdata Transportation Services at 1-800-741-3939.

About Comdata

Comdata Corporation is redefining the movement of money and information through technology for businesses, their customers and employees. A leading provider of transaction and information services, Comdata provides Comchek® credit and debit processing and reporting for commercial fleets and merchants, SVS electronic cash, gift and chip card programs for retailers and governmental agencies, Comchek® eCash payroll services for food, retail and other service industries, and point-of-sale equipment for travel plazas and convenience stores. Headquartered in Brentwood, TN, Comdata employs nearly 2,000 people throughout the United States and Canada. Comdata is a wholly-owned subsidiary of Minneapolis-based Ceridian Corporation (NYSE: CEN).

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



The FTC announced this week its first-ever federal district court complaint against an ISO for unfair and deceptive practices related to the marketing of payment card merchant accounts to small businesses nationwide. In its complaint, the FTC stated that TX-based Certified Merchant Services and its principals misrepresented the terms of merchant account agreements, allowing them fraudulently to debit previously undisclosed fees from the merchants’ bank accounts. At the FTC’s request, a federal district court has issued a TRO against the defendants, has frozen the defendants’ assets, and appointed a receiver to oversee the company’s future operations.The complaint was filed against Certified Merchant Services, Ltd.; Certified Merchant GP, Inc.; Certified Merchant Services, Inc.; Jonathan Frankel; Craig Frankel; and Randal Best, of Plano, Texas. The companies also do business under the names Transaction Merchant Services, Transaction Merchant Services.Com, and Electrocheck. The FTC said, among other complaints, that CMS deceptively failed to disclose, clearly and conspicuously, that they would charge merchants certain fees, including a minimum of $25 if the merchants did not reach a certain level of card sales; a semi-annual fee of between $33 and $50; and a cancellation fee of between $300 and $400 for cancelling within three years of signing a service contract.


NextBank Card Bonds

After losing its bank one week ago, the status of NextCard’s credit card securitizations were clarified yesterday when the FDIC announced that early amortization based solely on insolvency, or appointment of the FDIC as receiver, is not enforceable against the FDIC. There was some question last week whether or not the receivership of NextBank was a redemption event. The FDIC also reconfirmed, under rule 12 CFR 360.6, that it will not disaffirm or repudiate the completed transfer of financial assets by NextBank, N.A. in securitizations in accord with that FDIC rule. NextCard’s bank subsidiary, Phoenix-based NextBank, was shut-down Feb 7th by the OCC and the FDIC was appointed receiver after the company acknowledged it was unable to find an acquisition partner. On Jan 12th, NextCard notified the OCC that it was not possible to prepare and submit a ‘Capital Restoration Plan’, and said liquidation of the bank’s assets would not raise enough money to retire in-full the bank’s existing and anticipated liabilities. At year-end, NextBank had total assets of approximately $700 million and total deposits of approximately $554 million. The OCC determined that the bank was classifying some delinquent accounts sold into a securitization trust as fraud losses, although the delinquencies were actually attributable to credit quality problems. These assets were being repurchased by the bank at par, a practice that constituted sale of assets with recourse. This finding, together with significant accounting adjustments and the need for additional loan loss reserves, resulted in the bank becoming significantly undercapitalized. Trading in NextCard’s stock was halted last Friday. NextCard has approximately $2 billion in card loans and 1.2 million accounts, according to CardData ([www.carddata.com][1]). The company has not released its 4Q/01 earnings report. (CF Library 10/31/01; 1/31/02; 2/8/02; 2/11/02)

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



TNS Smart Network Inc., one of
Canada’s leading cash transaction processors, is proud to announce that Cash
Depot of Green Bay, Wisconsin has taken the next step in managing their
Automated Teller Machine business by purchasing the license to the Smart
Processing Suite. Developed by TNS, the Smart Processing Suite will allow Cash
Depot to control their own network, while providing accurate, reliable and
cost-effective transaction processing solutions, and to better provide for the
growing needs of their customers.

TNS and Cash Depot share the same vision – to lead with the cutting edge
of technology, and provide the benefits of that technology to their customers.
“We want to vertically integrate all of our ATM functions… we purchased the
switch because we wanted to control our own destiny,” said Dave Charles,
President of Cash Depot. “We wanted to eliminate the middleman, and we wanted

TNS has paved the way for companies like Cash Depot to move ahead with
the flexibility to control their own network and maximize their market
potential. As a progressive company at the forefront of technology, TNS
understands that a cost-effective, secure and accurate system of moving
financial and business transactions is essential in today’s marketplace. “The
deployment of our switch at Cash Depot will help us expand our strategic
markets nationally and internationally,” said Mischa Weisz, President and CEO
of TNS Smart Network Inc. “We will be bringing these markets a solid and
intelligent EFT solution.”

TNS provides Independent Sales Organizations (ISOs) and Financial
Institutions with the tools and expertise to make the transition from
exclusively sales-focused businesses to full service providers. The Smart
Processing Suite, developed by TNS to be flexible, economical and easy-to-use,
currently drives almost 3,000 ATMs across Canada, and has processed over 45
million transactions, representing more than $4.5 billion, using “off-premise”
ATMs owned by TNS’s business partners.

Since 1996, TNS has taken pride in offering customers the latest in
proven systems technology, an uncompromising approach to security, and a
dedication to maximizing customer service. Whether taking advantage of TNS’s
full service bureau or purchasing the Smart Processing Suite, customers
receive cost effective, confidential and secure transaction processing with
state of the art technology.

To obtain further information about the Smart Processing Suite or
services offered by TNS Smart Network, call 1-888-236-4354 or visit their
website at


Disaster Smart Card

Giesecke & Devrient has been selected by the IUOE National Hazmat program and several governmental agencies to provide a smart ID card solution to be used at disaster sites. The new smart card is expected to replace the paper-based system that is currently used by hazardous material teams and rescue teams at chemical and biological hazardous sites worldwide. The new smart ID card will also replace the multiple course completion certificates. When a hazardous material or Hazmat trainee successfully completes a required training course, his smart ID card will be electronically updated with the course specifics. This information, together with other qualifying criteria, is then electronically verified at the incident site.



Payment solution bosses take the lead at the Middle East’s unrivalled card

Ivan Jones, VP of e-business at Mastercard and Peter Dean, General Manager –
Middle East at American Express have been confirmed as keynote speakers at the
3rd annual Cards Middle East conference & exhibition in Dubai in May.

Cards Middle East
13 – 15 May 2002, Crowne Plaza, Dubai, UAE

Top-level speakers at the conference include representatives from
such as Mastercard, American Express, Spinneys Dubai, Credit Libanais, Banque
Misr, Banque du Caire, Banque de France, Comtrust/Etisalat, NatHealth, Sweden
Post, DNATA and many more.

Learn all the latest on:

* Cost effectively implementing the EMV standard in the Middle East

* Developing a profitable smart card business

* Planning, developing and implementing smart cards into your business

* Investing in loyalty cards – what are the benefits to you

* Mobile commerce and card security

Check out the complete conference agenda on:


Sponsors and exhibitors at Cards Middle East include S2 Systems, ACI
Intercard Wireless, Giesecke & Devrient, IOCard, Veritas, First Data, Card
Ltd, Prism, DZ Card, OmniPay, Narboni, High Tech Payment Systems, and many


NPC Signs H&R Block

National Processing Company, a leading provider of merchant credit card processing and a wholly owned subsidiary of National Processing, Inc., announced the signing of a multi-year credit card processing agreement with H&R Block. Under the terms of the agreement, NPC will provide authorization and settlement services for all H&R Block Visa and MasterCard transactions.

In 2001, H&R Block was the leading tax preparation company and served more than 19 million taxpayers through its more than 10,400 offices located in the United States, Canada, Australia and the United Kingdom.

“We are thrilled to have been selected by H&R Block as their merchant processor,” says Mark D. Pyke, chief operating officer for NPC. “H&R Block is one of the best known brands in the U.S. and their name is synonymous with tax preparation. By working closely with H&R Block, we were able to assist them in crafting an entire payment strategy. This payment strategy lays the groundwork for future financial products and service offerings as they expand their business.”

“NPC’s analysis and recommendations helped us design a payment strategy that provides the infrastructure to support future financial products and service offerings, stated Frank J. Cotroneo, senior vice president and chief financial officer for H&R Block. “The agreement will allow us to focus on our core business of providing tax and financial services while leaving credit card processing to NPC.”

About H&R Block, Inc.

H&R Block Inc. is a diversified company with subsidiaries providing a wide range of financial products and services. In 2001, H&R Block served 19.2 million taxpayers — more than any tax or accounting firm — through its more than 10,400 offices located in the United States, Canada, Australia and the United Kingdom. H&R Block served another 2.3 million tax clients through its award-winning TaxCut(R) software program and through its online tax preparation services. Investment services and securities products are offered through H&R Block Financial Advisors Inc., member NYSE, SPIC. H&R Block, Inc. is not a registered broker-dealer. H&R Block Mortgage Corporation and Option One Mortgage Corporation offer a wide range of home mortgage products. RSM McGladery Inc. is a national accounting, tax and consulting firm with 100 offices nationwide, as well as an affiliation with 550 offices in 75 countries as the U.S. member of RSM International. Additional information is available on the company’s Web site at [http://www.hrblock.com][1].

About National Processing, Inc.

National Processing, Inc. through its wholly owned operating subsidiary, National Processing Company (NPC(R)) is a leading provider of merchant credit card processing. National Processing is 86 percent owned by National City Corporation (NYSE: NCC) ( [http://www.nationalcity.com][2]), a Cleveland based $106 billion financial holding company. NPC supports over 600,000 merchant locations, representing nearly one out of every five Visa(R) and MasterCard(R) transactions processed nationally. NPC’s card processing solutions offer superior levels of service and performance and assist merchants in lowering their total cost of card acceptance through our world-class people, technology and service. Additional information regarding National Processing can be obtained at [http://www.npc.net][3].

[1]: http://www.hrblock.com/
[2]: http://www.nationalcity.com/
[3]: http://www.npc.net/



First Data Corp., a global payments leader, announced that its card issuing
services subsidiary, First Data Resources, has selected leading industry
executive François Dutray as senior vice president of global smart cards.
Dutray will lead First Data’s efforts to build a worldwide, end-to-end chip
enabled solution that supports multi-application card issuance and the
authentication, authorization and processing of transactions.

“We are confident that under François’ leadership, First Data will
continue to
lead the way in providing advanced chip technology that enables issuers to
successfully launch smart card programs,” said Eula L. Adams, senior executive
vice president of First Data Corp. and the head of worldwide card operations.
Prior to joining First Data, Dutray served as vice president and general
manager of worldwide smart card solutions for Motorola and was also
instrumental in developing a global smart card product and service strategy
Visa International. As a strong chip technology supporter, Dutray has served
on the board of directors of several European companies all instrumental in
the manufacturing, distribution and processing of smart cards.
“I’m pleased to be affiliated with a company as innovative as First Data
and am
looking forward to directing the smart card strategy,” Dutray said.

Since 1997, First Data has a built a strong infrastructure to achieve its goal
of providing advanced smart card technology to issuers and acquirers
First Data was the first U.S. processor certified by both Visa and MasterCard
to support the issuance of multi-application cards using the Java/Open
and MULTOSTM technologies. Worldwide, First Data plays an integral role in
partnering with issuing and acquiring financial institutions for chip
personalization, card issuance, card processing, and the maintenance and
validation of digital certificates. At year end 2001, First Data had supported
more than 10 million smart card accounts on file worldwide and approximately
40,000 smart card point-of-sale terminals throughout Europe and Australia.

About First Data

First Data Corp. (NYSE: FDC), with global headquarters in Denver, powers the
global economy. As the leader in electronic commerce and payment services,
First Data serves approximately 2.8 million merchant locations, 1,400 card
issuers and millions of consumers, making it easier, faster and more secure
people and businesses to buy goods and services using virtually any form of
payment. With 29,000 employees worldwide, the company provides credit, debit,
smart card and stored-value card issuing and merchant transaction processing
services; Internet commerce solutions; Western Union® money transfers and
orders; and check processing and verification services throughout the United
States, United Kingdom, Australia, Canada, Mexico, Spain and Germany. Its
transfer agent network includes approximately 120,000 locations in more than
185 countries and territories. For more information, please visit the
Web site at www.firstdata.com.


CyberSource PKI

CyberSource Corporation, a leading provider of electronic payment and risk management solutions for enterprise businesses, announced that it has enhanced its transaction processing infrastructure with the industry’s most advanced asymmetric encryption standards to provide its customers an unparalleled, highly secure and efficient electronic payment processing service.

With the recent security enhancements, CyberSource customers realize a dramatic cryptographic performance increase, reducing average transaction times by nearly 50 percent and raising payment processing capacity by more than 40 percent. CyberSource is the only payment transaction provider in the industry to enforce a highly secure public key infrastructure (PKI)-based cryptographic security model to authenticate and secure 100 percent of the transactions processed on behalf of its more than 3,000 customers worldwide. Unlike other security solutions, such as password authentication, which typically consists of only eight characters and can be compromised easily by “hackers” who guess passwords, reproduce them and/or distribute them, the CyberSource system utilizes a private key, known only by the merchant, with over 1,024 bits of data used to authenticate each transaction, making it virtually impossible to penetrate.

“It is our goal to provide merchants with the most secure payment processing infrastructure possible,” said Robert Ford, Chief Technical Officer at CyberSource Corporation. “The CyberSource Payment Service utilizes proven 1024-bit, asymmetric encryption standards to authenticate our merchants for all transactions. This authentication model is stronger and more secure than the password authentication models still employed by many payment processors and provides our customers an unparalleled level of security. And, we have implemented the technology in a highly efficient fashion, making for greater consumer satisfaction when purchasing on our clients’ web sites.”

CyberSource selected RSA Security (Nasdaq: RSAS) technology to complete the security upgrade resulting in a more efficient and secure transfer of sensitive cardholder data with its transaction customers. RSA BSAFE(R) Cert-C encryption software is used to create certificate processing and cryptographic software applications that integrate into a public key infrastructure. “RSA BSAFE encryption software is trusted the world over by developers seeking to build world-class e-security into mission critical infrastructures,” added John Worrall, Vice President of Product Marketing at RSA Security. “We are always excited to help companies recognize the type of substantial and positive results that CyberSource has seen with its customers.”

About The CyberSource Payment Solution

The CyberSource payment solution, available as an outsourced service or in-house managed software, operates behind-the-scenes to authorize and settle electronic payments through built-in connections with third-party processors and merchant banks. Developed for large enterprises with demanding needs, CyberSource payment solutions support web, call center, IVR and POS sales environments. CyberSource payment solutions integrate smoothly with major commerce platforms, ERP and CRM systems, and are designed for compatibility and interoperability with new standards and products.

Both CyberSource software and outsourced payment service options provide real-time, multiple currency support and integrate seamlessly with CyberSource’s risk management solutions, giving businesses a powerful way to protect against losses from fraud. Further, with the outsourced CyberSource payment service, enterprise businesses can rely on fast, secure, reliable, electronic payment service, worldwide, without the complexity of maintaining an in-house system.

More on CyberSource payment solutions:

[http://www.cybersource.com/solutions/electronic_payment/solutions/][1] .

About RSA Security Inc.

RSA Security Inc., the most trusted name in e-security(R), helps organizations build secure, trusted foundations for e-business through its RSA SecurID(R) two-factor authentication, RSA ClearTrust(R) Web access management, RSA BSAFE encryption and RSA Keon(R) digital certificate management product families. With approximately one billion RSA BSAFE-enabled applications in use worldwide, more than ten million RSA SecurID authentication users and almost 20 years of industry experience, RSA Security has the proven leadership and innovative technology to address the changing security needs of e-business and bring trust to the online economy. RSA Security can be reached at [http://www.rsasecurity.com][2].

About CyberSource

CyberSource Corporation is a leading provider of risk management and electronic payment solutions for enterprise businesses selling via multiple sales channels. CyberSource solutions manage transaction risk and enable electronic payment processing for Web, call center/IVR, and POS environments. CyberSource professional services designs, integrates and optimizes enterprise-wide commerce transaction systems. Over 3,000 businesses use CyberSource solutions, including over half of the Dow Jones Industrial companies. The company is headquartered in Mountain View, California, and has sales and service facilities in Japan, the United Kingdom, and other locations in the United States. For more information, please visit CyberSource’s web site at [http://www.cybersource.com][3] or email info@cybersource.com.

[1]: http://www.cybersource.com/solutions/electronic_payment/solutions/
[2]: http://www.rsasecurity.com/
[3]: http://www.cybersource.com/