JCPenney Expands Check System

LML Payment Systems Inc. announced that national retailer JCPenney has migrated an additional 267 stores to LML’s electronic check re-presentment and recovery program, increasing total participation to 1,027 stores.

“We have been electronically re-presenting checks for many of our clients for some time now. We are happy to say that electronically re-presenting checks has resulted in recovery improvement, in some cases, of over 55% for large and small clients alike. In addition to improving check processing efficiencies, these programs allow our clients to benefit from improved check recovery cashflow. Our goal is to allow all of our clients to free up management time to focus on other consumer value-related issues that impact their customers. At the end of the day, the savings and efficiencies our clients receive regarding increased control over check recoveries are ultimately passed on to their customers,” explained LML Payment Systems Corp.’s Executive Vice-President, Kat Frey.

Under the program, our clients instruct their depository banks to send all paper check returns to LML for electronic processing, and, if required, traditional recovery methods.

“As retailers experience the efficiencies and cost savings associated with electronic check re-presentment, we expect that the benefits of electronifying the paper check even earlier in the transaction process, such as at the point-of-sale, should be as overwhelming as they are obvious. While we see RCK programs as an intermediate step towards retailers realizing the full potential of electronic check processing, we believe these successful initiatives clearly demonstrate the ship is away from the dock regarding retailer adoption of the technology,” said Patrick H. Gaines, LML’s President and CEO.

The Corporation, through its subsidiary LML Payment Systems Corp., is a financial payment processor providing check processing solutions including Electronic Check Conversion (whereby paper checks are converted into electronic transactions), electronic check verification, electronic check re-presentment (whereby returned paper checks are re-presented for payment electronically), and primary and secondary check collection to supermarkets, grocery stores, multilane retailers, convenience stores and other national, regional and local retailers. We also specialize in providing selective routing, including real-time monitoring of check, debit, credit and EBT transactions for authorization and settlement through our flagship transaction processing product REPS (Retail Electronic Payment System). The Corporation’s intellectual property estate, owned by subsidiary LML Patent Corp, includes U.S. Patent No. 6,283,366 regarding corporate checks and electronic fund transfers (EFT), in addition to U.S. Patent No. 6,164,528 regarding Internet checking transactions, and U.S. Patent No. 5,484,988 which describes a “Checkwriting Point of Sale System” which, through a database and authorization system, provides and administers various electronic payment services for customers and businesses. Also included in our intellectual property estate is a recently received Notice of Allowance from the United States Patent and Trademark Office for a new patent based upon United States Patent Application Serial No. 09/851,609.

Statements contained in this news release which are not historical facts are forward-looking statements, subject to uncertainties and risks. For a discussion of the risks associated with the Corporation’s business, please see the documents filed by the Corporation with the SEC.


FNB Marin Selects CollectionsX

CollectionsX, an e-receivables company that provides practical, web-based technology for maximizing the value of delinquent/charged-off assets, announced that its next generation recovery platform, XRecovery, has been selected by First National Bank of Marin.

FNBM is a leading issuer of nonprime bankcards in the U.S., providing partially-secured credit cards as well as personal and corporate certificate of deposit accounts. FNBM will benefit from XRecovery’s seamless integration with FNBM’s card-processing environment, combined with its advanced, web-based portfolio analysis, decisioning, performance reporting and account processing tools.

“With XRecovery, FNB Marin gets a suite of practical, easy to use management tools to route charge-offs, determine the performance levels of our agencies and maximize recoveries through an information-rich solution,” said FNB Marin SVP & Director of Collections, Russ Jakubowski. “XRecovery offers us a proven agency management engine with the latest web-based interface.”

“With XRecovery, FNB Marin will be able to execute a more flexible, more sophisticated, more responsive recovery management strategy with just a few clicks of a mouse,” said CollectionsX CEO Alec Smythe.

About CollectionsX

Based in Atlanta, CollectionsX is an e-receivables company that provides practical, low-cost technology for maximizing the value of delinquent/charged-off assets. Through its web-based technology, CollectionsX leverages the power of the Internet to provide the collections industry with better decisioning tools, more efficient processes and increased flexibility. Through its partnership with CyberStarts, its investors include First Data, Marsh & McLennan, and Wachovia.


eFunds Buys Hanco ATMs

eFunds Corporation, a leading provider of electronic payment, risk management, and related information technology and business-process-improvement services, announced its purchase of certain ATM assets from Hanco Systems Inc., an Atlanta-based, independent provider of ATM services.

Hanco Systems manages an ATM network and provides sales and service for more than 2,500 ATMs in 30 states. eFunds is acquiring all of Hanco’s U.S.-based owned or leased ATMs and merchant contracts. With this acquisition, eFunds will now operate, manage and drive more than 11,000 ATMs in all 50 states and Canada. Hanco Systems has a strong presence in the Midwest and Southeast, which is expected to enhance eFunds’ existing ATM network in those growing regions.

eFunds plans to consolidate the Hanco Systems ATM network into its Access Cash business over the coming months.

“Adding Hanco’s U.S.-based ATM machines to our existing Access Cash network of off-premise ATMs is an important part of our strategy to build an integrated system of ATM services, which includes sales, management, branding and advertising,” said Gus Blanchard, Chairman and CEO of eFunds. “We believe there is untapped opportunity in ATM services and merchant processing among networks, financial institutions and retailers. We intend to expand the terminal network, and at the same time, improve the profitability of the machines already deployed.”

eFunds anticipates that the transaction will be accretive by the end of 2002.

“We look forward to the opportunities our new relationship with eFunds presents,” said Tom Hannon, president and CEO of Hanco Systems. “We believe this acquisition is good for the industry and for Hanco Systems’ and eFunds’ customers.”

About eFunds

eFunds delivers innovative, reliable and cost-effective technology solutions to meet its customers’ payment and risk management, eCommerce and business-process-improvement needs. eFunds provides its services to financial institutions, financial services companies, electronic funds networks, retailers, government agencies, eCommerce providers, and other companies around the world.

About Hanco Systems Inc.

Hanco Systems Inc. is a family-owned and -operated company that has been in the ATM sales and service business for about 10 years. It provides products and services to the ATM market in more than 30 states across the United States from eight central locations.


iDine Stock

Transmedia Network said Thursday it is changing its name to iDine Rewards Network Inc. effective today. As a result the Company will offer a ticker symbol for common shares of iDine Rewards Network as ‘IRN’ and the Series A preferred stock will trade under the symbol ‘IRN Pr A’. iDine Rewards Network Inc. offers its members a dining savings and rewards programs at more than 7,500 restaurants throughout the USA via a registered credit card. The Company currently has 10 million credit cards registered through 7.7 million enrolled accounts. The savings are offered through the Company’s dining programs, either branded under the name ‘iDine’ or provided through co-branded and private label partnerships, such as airline frequent flyer programs, club memberships or other affinity organizations. ‘iDine’ members can also access personalized, real-time restaurant listings, special dining incentives and more information via the idine Web site.



E*TRADE Bank has sealed a major multi-year deal with Boston Communications Group to create the ATM industry’s first nationwide, end-to-end solution for wireless telephone account recharge. Using Mosaic Software’s electronic funds transfer system, ‘Postilion’, and bcgi’s ‘XML Portal’, E*TRADE will offer customers the flexibility to purchase wireless minutes in real-time using their personal ATM debit card. At the end of the transaction, the added funds will be immediately available, and the ATM will print a receipt with the subscriber’s updated wireless balance and other relevant information maintained by bcgi’s platform. Following a pilot in the first half of 2002, a ramp up of deployment of the wireless account recharge functionality to E*TRADE ATMs is expected to continue over a twelve to eighteen month period. E*TRADE has a network of 35 dealers and nearly 11,000 ATMs and is now the second largest ATM network nationwide according to RAM Research Group. E*TRADE Bank is a branchless bank with over $13 billion in assets, more than $8 billion in deposits and over 490,000 customer accounts.


Super Bowl 2002

First Tennessee said Thursday it will continue using its ‘Working Money’ character this weekend to promote relationship banking and to introduce a new sweepstakes that will net one person $100,000. The ‘Working Money Sweepstakes’ will be launched during this weekend’s ‘Super Bowl’ telecast. First Tennessee’s series of television ads feature people wearing oversized $10, $20 or $100 bill suits. The ads that will debut during the Super Bowl feature the working money character being courted by a beautiful woman on a beach in one spot, with the other spot showing elaborately choreographed synchronized swimming scenes accompanied by a Broadway show tune-type song sung by a working money star. The spots were produced by First Tennessee’s advertising agency, Thompson and Company of Memphis.


Optimal Checkout

Optimal Robotics will launch its new line of smaller, more compact ‘U-Scan’ systems next week. The new terminals have been designed using composite materials to give customers a true ATM look and feel. The terminals will be available in a variety of configurations ranging from one to five bags. The reduction in size offers retailers the opportunity to extend self-checkout from the traditional four terminal footprint to six terminals, while maintaining the supervision of a single ‘U-Scan’ attendant. The company has also developed the ‘U-Scan Mobile Attendant’, a handheld device that enables ‘U-Scan’ attendants to perform a wide range of cashier functions while away from the attendant station. The ‘U-Scan’ will also have an integrated signature capture device, which enables shoppers to sign electronically when making credit card transactions.


Bankserv Captures 80% Share

Capture of an estimated 80 percent of head-to-head competitions in the automated wire transfer business serving the nation’s banks and credit unions at year-end 2001 was reported today by BankServ, a privately held electronic payments processing firm headquartered here.

In an internal report to its investor group, David F. Kvederis, president and CEO, said that 2001 was a record year for the company in its Fedwire (Federal Reserve Wire Network) business with installation of either its turnkey GFXN (Global Funds Exchange Network) or GFX (a related software package) products in 15 financial institutions across the country. He said that the institutions included commercial, savings, and Federal Home Loan banks, and credit unions with assets ranging from $750 million on up to a lofty $41 billion.

“We believe this represents an 80 percent share of head-to-head competitions in wire transfer business sales to financial institutions in 2001 based on an analysis of sales for the year,” Kvederis said. “This has been our turn-around year in the wire business as we completed years of costly development early in the year and are now rapidly increasing profitability in our wire transfer sector,” he told the investors of five-year-old BankServ.

“Installation of GFXN at the 15 financial institutions represented 50 percent growth during the year in our wire transfer business,” Kvederis said, “with those institutions joining more than 30 financial services holding companies, representing more than 100 banks and credit unions, using BankServ’s automated wire transfer solution.”

Among those installing GFXN or GFX during 2001 were: Banc First Corp., Oklahoma City, Okla.; Danvers Savings Bank, Danvers, Mass.; Federal Home Loan Bank — Boston; Federal Home Loan Bank – Indianapolis; Federal Home Loan Bank — Seattle; First National Bank of Sioux Falls, Sioux Falls, S.D.; Guaranty Bank, SSB, Brown Deer, Wis.; North Island Financial Credit Union, Chula Vista, Calif.; Old National Bank, Evansville, Ind.; Pacific Northwest Bank, Seattle, Wash.; PNB Financial, Lubbock, Texas; Republic Bank and Trust, Louisville, Texas; Silicon Valley Bank, Santa Clara, Calif.; and Texas Bank, Forth Worth, Texas.

Amounts of dollars being transferred, incoming and outgoing, for these institutions by BankServ ranged from about $2 billion to over $3 billion on an average daily basis, according to Kvederis.

He told the investors that “customer satisfaction is at an all-time high, with many of the banks reporting reductions in manpower needed prior to installation of GFX automation features, increased throughput, seamless system integration, and the highest level of backup and redundancy for wire transfers. Demand for the product also remains high due to the government’s renewed focus on enforcement of money laundering and anti-terrorism regulations.”

Supporting that customer contention, John Murphy, first vice president- Bank Operations, Federal Home Loan Bank — Boston, says “the ease of implementation and the intuitive nature of the (BankServ) system made the install and subsequent training of staff relatively seamless to the operation of the funds business. The system’s design provides the highest level of backup and redundancy for our most critical operation.”

Echoing Murphy’s comments, Keitha Shoupe, vice president and manager-Global Funds Transfer, Silicon Valley Bank, Santa Clara, Calif., adds that “BankServ has significantly enhanced the security procedures over our wire process as well as enabled us to bring extended wire products to our clients.”

Kvederis also reported continuing improvement in other segments of BankServ, which not only is one of the nation’s leading providers of Fedwire processing, but also of Automated Clearing House (ACH) electronic payment processing for financial services companies and businesses.

During 2001, he said that BankServ signed up significant new consumer-to-business or “point-of-sale” and business-to-business customers for its electronic check (eCheck) conversion and ACH processing services. “We can offer financial firms, marketplaces, exchanges and businesses a full spectrum of funds transfer and payment solutions, including real-time, secure on-line check processing, credit card processing and wire transfers — and they are joining us in growing numbers,” Kvederis said.

U.S. Federal Reserve studies recently suggest that check writing in the U.S. is steadily giving away to electronic forms of payments as consumers, businesses, and financial institutions seek to be more efficient and cost-effective. American consumers and businesses, says the Fed, make 80 billion retail payments annually, nearly 50 billion by check and 30 billion by electronic instruments, such as credit cards, debit cards, and the ACH. Checks have declined from approximately 85 percent of non-cash payments since the last Fed study in 1979 to about 60 percent today.

“To meet this changing trend,” says Kvederis, “our company announced during 2001 the addition of three new electronic payments processing products — BankServ Transfer, SameDayPay, and MOTOpay. All three of the products are designed to reach out to anyone who needs to move money or pay bills electronically, whether by average computer users on the Internet, between banks or brokers and their clients, ordinary or on-line businesses and their customers, and by mail order/telephone order businesses.

Kvederis also reported that BankServ entered into seven partnerships, joint ventures, or alliances during 2001, working with firms on everything from expediting Web-enabled electronic payroll tax payments to guarantees for check payments. Details may be found on the BankServ Web site, .


D&B Joins AmEx OPEN

American Express and D&B announced a strategic alliance to provide D&B’s Web-based Small Business Solutions through OPEN: The Small Business Network from American Express.

OPEN: The Small Business Network was launched last week by American Express and offers small business customers greater control and flexibility over their finances and other business needs by providing an expanded set of tools, services and savings.

D&B Small Business Solutions provide online access to D&B information to help small business owners find profitable new customers, manage vendors more efficiently, run instant online credit checks and perform competitive analyses. A free company look up feature is also available for querying the D&B U.S. database of more than 13 million companies. Through the OPEN Small Business Network, small business customers receive 20% off Silver subscription pricing when they use their Cards to purchase the service.

“D&B is an important component of the OPEN Network because their online credit, marketing and collection tools help small business owners better manage their businesses,” said Kerry Hatch, Executive Vice President and General Manager, OPEN: The Small Business Network from American Express. “One of the benefits of being a part of the OPEN Network is gaining access to special values that we negotiate on behalf of our customers and our alliance with D&B delivers on that promise.” “D&B provides the tools and information that help customers to make more informed, confident business decisions. We believe that OPEN: the Small Business Network customers will benefit from easy, online access to D&B Small Business Solutions and D&B information to help their companies succeed,” said Larry Kutscher, President D&B E-Business Solutions. “Our partnership with American Express offers an exciting new online distribution channel for D&B Small Business Solutions. D&B Small Business Solutions, launched last year, furthers D&B’s Blueprint for Growth strategy by enhancing our current business, leveraging the Web and providing solutions that enable E-Commerce.”

OPEN Network customers can access and sign up for the full suite of D&B Small Business Solutions at the [][1] Web site.

About OPEN: The Small Business Network from American Express

OPEN: The Small Business Network from American Express is a unit of American Express Travel Related Services Company, Inc. The OPEN Network offers small business owners a wide range of tools, services and savings designed to meet their evolving needs, including convenient access to working capital and credit information, instant decisioning on all card products and savings on business services from an enhanced lineup of OPEN Network partners. The OPEN Network serves nearly three million customers and is dedicated to those companies with fewer than 100 employees. To obtain more information about the OPEN Network, visit or call 1-800-NOW-OPEN to apply for a card or loan. American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking.

About D&B

D&B (NYSE: DNB) provides the information, tools and expertise to help customers Decide with Confidence. D&B enables customers quick access to objective, global information whenever and wherever they need it. Customers use D&B Risk Management Solutions to manage credit exposure, D&B Sales & Marketing Solutions to find profitable customers and D&B Supplier Management Solutions to manage suppliers efficiently. D&B’s E-Commerce Solutions are also used to authenticate and verify potential trading partners online, increasing trust and confidence in e-commerce transactions. Over 90 percent of the Business Week Global 1000 rely on D&B as a trusted partner to make confident business decisions. For more information, please visit [][2].



Priceline Phone Cards

After a failed attempt at grocery and gasoline savings cards, announced yesterday an expansion of the ‘Priceline Long Distance’s Name Your Own Price’ service. Priceline has added Qwest Communications International and the CNM Network as supplier/partners to its phone card program operated by Priceline Long Distance LLC, a wholly owned subsidiary of Priceline Long Distance enables customers to choose their own price for blocks of domestic and international calling time. Priceline Long Distance customers can save up to 40% or more over other popular long distance calling plans. The pre-paid phone cards can be purchased in 60-, 125-, 250-, 500- and 1,000-minute blocks. Priceline currently has Net2Phone and Deltathree as phone card partners.



ACI Worldwide, a leading international provider of enterprise e-payment solutions, announces the continued adoption of its e-payment processing solutions for retailers. Four retailers in the U.S. and Mexico have recently licensed WINPAY24 and join more than 80 retailers worldwide that use ACI software to process debit and credit card transactions.

ACI’s newest retail customers include:

— Hy-Vee, Inc.

— Weis Markets, Inc.

— OfficeMax Mexico

WINPAY24 offers retailers a fast, reliable software system to capture and authorize consumer payments. The system operates on the Microsoft(R) Windows platform and supports interfaces to leading EFT software providers, major point-of-sale systems, authorization networks and settlement institutions. In addition to debit and credit card processing, WINPAY24 can provide a fast check authorization and tracking system that helps retailers limit exposure to losses from check runners, organized fraud schemes, checks written on closed accounts and checks from customers who consistently write non-sufficient funds (NSF) checks. The WINPAY24 system also supports gift card and paper certificate programs, EBT programs, including the U.S. Food Stamp and AFDC programs.

“Retailers choosing our WINPAY24 software are looking for a solution designed specifically for the retail industry and the challenges retailers face,” said Doug Parr, managing director of ACI Worldwide’s Americas operation. “WINPAY24 provides a blend of performance and flexibility to satisfy retailers’ unique business and processing needs. The system can help retailers control costs, limit consumers’ in-lane checkout time, and accept a wide variety of consumer payments.”

About ACI Worldwide

Every second of every day, consumers are initiating electronic payment transactions — getting cash at ATMs, using debit and credit cards to make purchases in stores and on the Internet, banking by phone and PC, paying bills online. Twenty billion times a year, ACI software is used to process these transactions, powering the world’s online payment systems. ACI was founded in 1975 and pioneered the development of applications and networking software for online transaction processing. Today more than 530 customers in 71 countries use ACI supplied software. Visit ACI Worldwide on the Internet at