Turnkey 3-D Secure Solution

Visa issuing banks and card processors now have a single source available to provide them quickly and easily with a fully compliant Visa Authenticated Payment solution. Compaq Computer Corporation and Arcot Systems, Inc., today announced a global partnership that will provide the first 3-D Secure compliant turnkey solution available to Visa’s 21,000 issuing banks and card processors around the world. Visa Authenticated Payment is designed to bring the same level of security to the virtual world as Visa has in the physical world by confirming to the e-merchant that the online buyer is the actual cardholder.

Visa’s Internet payment authentication process is based on the 3-D Secure interoperability standard and enables Visa card issuers to verify a cardholder’s identity in real time, during an online payment transaction, thereby bringing the online payment experience closer to that of a card- present or physical world transaction. The bundled solution features Arcot’s TransFort(TM) payer authentication product loaded on Compaq ProLiant(TM) servers. Compaq will sell the solution globally, license TransFort from Arcot for resale, then configure, deploy, support, and service the total solution through the worldwide network of 38,000 Compaq Global Services professionals.

“The combination of Arcot’s leading payer authentication software and our industry standard ProLiant servers backed by Compaq Global Services will deliver a simple but powerful, scalable and reliable solution for banks and card processors around the world,” said Gustavo Eichelmann, vice president of Compaq’s global financial services solutions group. “This announcement enhances Compaq’s comprehensive portfolio of solutions that we offer the financial markets and thus extends Compaq’s leadership position in the Financial Services Industry.”

“The Visa Authenticated Payment Program must work seamlessly 24/7, especially during peak shopping periods,” said Chet Silvestri, president and CEO of Arcot Systems. “Our proven TransFort software running on Compaq ProLiant servers and backed by Compaq Global Services worldwide will assure banks they can deliver the highest level of service to their cardholders.”

Arcot TransFort is the first solution to be named compliant by Visa’s Interoperability Labs for the Visa Authenticated Payment Program, and has been field-tested by banks and merchants worldwide for over 15 months. Compaq ProLiant is a reliable and scalable server platform that delivers flexibility and ease of ownership. The solutions will be deployed and supported through Compaq Global Services.

How It Works

When a customer enters their Visa card number in a Web checkout form and hits the buy button, a TransFort Merchant software module at the merchant site alerts a TransFort module (the TransFort software on a Compaq ProLiant server) at the card-issuing bank that someone is making a purchase using a Visa card that is enrolled in the program. The TransFort module at the bank then requests that the customer authenticate himself or herself by entering a pass- code (or other means of authentication) in an authentication screen that appears on the customer’s PC (PDA or mobile phone). Once authenticated, the bank notifies the TransFort merchant module that the cardholder has been authenticated. A receipt of this notification is archived for purposes of non-repudiation. This greatly reduces the merchant’s exposure to fraud and dispute. The Visa Authenticated Payment Program offers dramatic benefits in fraud reduction and increased confidence to the customer and merchant with virtually no change in the online purchasing process.

About Arcot

Arcot Systems, Inc., is the leading provider of authentication and access control solutions for securing e-business in Internet-scale, transactional and wireless environments. Only Arcot provides cost-effective, scalable, software-based solutions for strongly authenticating users and transactions and managing access for payment systems, B2B extranets, Web portals and virtual private networks. Arcot solutions meet the business need for strong transactional security while providing the customer a user-friendly experience with anytime, anywhere convenience. Leaders in financial services, healthcare, and e-commerce are using Arcot solutions to secure transactions, protect their customers’ privacy, and reduce fraud. For more information, visit [http://www.arcot.com][1].

About Compaq

Founded in 1982, Compaq Computer Corporation (“Compaq”) is a leading global provider of enterprise technology and solutions. Compaq designs, develops, manufactures and markets hardware, software, solutions and services, including industry-leading enterprise storage and computing solutions, fault- tolerant business-critical solutions, communication products, and desktop and portable personal computers that are sold in more than 200 countries. Information on Compaq and its products and services is available at [http://www.compaq.com][2].

[1]: http://www.arcot.com/
[2]: http://www.compaq.com/

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HNC Cut Back

HNC Software Inc. announced its financial results for the third quarter ended September 30, 2001.

On September 29, 2000, HNC distributed to its stockholders all of its shares of its former subsidiary, Retek Inc. Accordingly, unlike its year ago quarter ended September 30, 2000, HNC’s financial results for the third quarter of 2001 do not include or reflect Retek’s operations.

HNC Pro Forma Results Excluding Retek Revenues for the third quarter of 2001 were $59.1 million, representing an increase of 15 percent over revenues of $51.4 million excluding Retek for the third quarter of 2000.

Diluted operational net income for the third quarter of 2001 was $0.14 per share, compared to diluted operational net income for the third quarter of 2000 excluding Retek of $0.10 per share, representing a 40 percent increase over third quarter 2000. (See footnote Nos. 2, 3, 4 and 5 on the following table entitled, “Selected Pro Forma Financial Data, Excluding Retek.”) HNC Actual Consolidated Results Revenues for the third quarter of 2001, which excluded Retek, were $59.1 million. Revenues for the third quarter of 2000, which included Retek, were $77.8 million. Diluted net loss for the third quarter of 2001, which excluded Retek, was $6.5 million, or $0.18 per share. Diluted net loss for the third quarter of 2000, which included Retek, was $78.5 million, or $2.71 per share. “While business slowed in the quarter I am encouraged by the resiliency HNC has demonstrated in a rather depressed business environment. I’m confident that our solid customer relationships, value-added software solutions, deep technology portfolio and strong balance sheet will allow us to weather these times and continue our long-term growth initiatives,” said John Mutch, chief executive officer, HNC Software.

In response to deteriorating economic conditions and in order to better position the company for enhanced long-term growth and profitability, HNC has reduced its workforce by approximately 5 percent, effective as of October 16, 2001.

About HNC Software Inc.

HNC is a leading provider of high-end analytic and decision management software that enables global companies to manage customer interactions by converting data and customer transactions into real time recommendations. HNC’s proven software empowers Global 2000 companies in the financial services, insurance, telecommunications and other industries to make millions of the right mission-critical customer decisions designed to increase revenues and decrease risk. For more information, visit [www.hnc.com][1].

For complete details on HNC’s 3Q results visit CardData ([www.carddata.com][2])

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

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Tidel ATMs

Tidel Technologies reported this morning that it sold 912 ATMs during the quarter ending Sept 30th, a 37% increase over the 666 units sold in the previous quarter. Neither quarter included any shipments to Credit Card Center, formerly Tidel’s largest customer which has filed bankruptcy and discontinued operations. For the full fiscal year 2001, Tidel sold 6,248 ATMs, consisting of 3,909 units to non-Credit Card Center customers and 2,339 units to Credit Card Center, all of which were sold in the first quarter of the year. Tidel says that July and August were strong months but coming into September, order indications from customers were strong; however, this business did not materialize after the events of September 11.

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BIZ CARD

Amex Bank of Canada introduced the
first no-fee, cash rebate Credit Card for Small Business in the Canadian
marketplace. Called the American Express Business Card, it is the fourth in
Amex’s family of small business products and services.

Over the past few years, Amex Canada’s small business Cardmember base has
grown by more than 40%, with spending almost three times higher than on its
consumer Cards.

The Business Card joins the growing suite of small business products in
Canada including the American Express-Costco Corporate Card for Small
Business, American Express AIR MILES Gold Business Card and American Express
Corporate Card for Small Business.

“Clearly, this is an important growth area for American Express in Canada
and around the world and represents an opportunity to combine our marketing
and product development expertise to give small business owners the tools they
need to run their business,” says Debra Ambrose, Director of New Product
Development at American Express. “Entrepreneurs are a unique market group and
getting to know their needs has been key to the growth of Amex’s small
business portfolio.”

Ambrose notes that American Express research indicates that entrepreneurs
want a Card that will give them more control over the costs of running a
business. At no annual fee and an annual cash rebate up to 2%, the American
Express Business Card gives Small Businesses more for less.

“With features like the option to purchase Health and Dental plans for
themselves, their families and employees we are designing Card products that
can play a number of roles to help the small business owner,” adds Ambrose.

Other Card features include:

– An introductory 6.9% interest rate on balance transfers
for the first six months
– Automatic enrollment in a Small Business disability plan
with security of up to $50,000
– Up to $100,000 in travel accident insurance
– Option to purchase annual management reports to help track
and streamline expenses
– Online account management

This new Canadian card product is the first to sport a fashionable new
look for the American Express Card, with a modern, cutting edge appeal.

American Express in Canada operates as Amex Bank of Canada and Amex
Canada Inc. Both are wholly-owned subsidiaries of the New York based American
Express Travel Related Services Company, Inc., the largest operating unit of
American Express Company, which provides a range of financial and travel
related services for consumers and companies. Amex Bank of Canada is the
issuer of American Express Cards in Canada. Amex Canada Inc. operates the
Travel Service Network, Corporate Travel and Travellers Cheque divisions in
Canada. Amex opened its first offices in Toronto and Hamilton in 1853 and now
employs 3,700 Canadians coast to coast.

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ICE Functionality

Hypercom Corp., the world’s leading provider of electronic payment solutions and Atrana Solutions, a leading provider of point-of-sale software solutions, Tuesday announced that Atrana will create customized software applications to expand the functionality of Hypercom’s ICE information and transaction platforms in prepaid services, electronic benefits transfer, sports licensing and other markets not traditionally associated with point-of-sale terminals. “Hypercom’s ICE provides an excellent platform for supporting both traditional point-of-sale applications and other applications which are not directly associated with card payments. Hypercom has provided a robust suite of tools for developing these applications with its HyperWare development environment, VHDT (HyperWare Visual Developer’s Toolkit).

“These terminals and development tools enable Atrana to create exciting new applications for markets not traditionally associated with point-of-sale terminals,” said Alem Boukadoum, executive vice president, Atrana Solutions. “We are partnering with Atrana to bring secure, innovative, revenue-generating and time-saving applications to the point-of-sale market and beyond, and Atrana is strongly positioned to help us do just that,” said Kathy Crumley, Hypercom’s vice president, VAR Relations. “Atrana is recognized as a leading development organization that moves quickly to meet its clients’ needs with innovative and high-quality software systems.”

Hypercom’s epic (ePOS-infocommerce(TM)) ICE devices are compact, high performance, touch screen information and transaction platforms. ICE platforms incorporate physical security features and Hypercom’s TranSafe(TM) operating system that integrates firewall-protected, multi-tasking, multi-applications functionality, along with EMV chip card capability, a secure PIN pad, built-in HTML/HTTP Web browser, and integrated receipt printer.

In addition to the secure payment applications, Hypercom’s ICE information and transaction platforms support a range of value-added applications and services including: electronic signature and receipt capture, e-mail, on-screen advertising, interactive electronic coupons, and cash management reporting through a standard browser — as well as secure credit, debit, EBT and smart card functions.

About Atrana

Based in Dallas, Atrana is a leading provider of point-of-sale (POS) card payment terminal software and systems to retailers, transaction processors and stored value providers.

The company’s broad expertise in POS systems, back-end transaction servers and retail integration enables it to offer its clients complete technology solutions for credit, debit, fleet, loyalty, prepaid, gift card, and other transaction-based services. Atrana understands that quality systems and on-time delivery are critical for the success of its customers’ initiatives. Atrana’s customers include many of the industry’s largest transaction processors and service providers. Atrana’s Internet address is [http://www.atrana.com][1].

About Hypercom

Hypercom Corp. is the leading global provider of electronic payment solutions that add value at the point-of-sale for consumers, merchants and acquirers, and yield increased profitability for its customers.

Hypercom’s products include secure Web-enabled information and transaction platforms that work seamlessly with its networking equipment and software applications for e-commerce, m-commerce, smart cards and traditional payment applications.

The company’s widely accepted ePOS-infocommerce(TM) (epic) framework of consumer-activated, EMV-certified, touch-screen ICE (Interactive Consumer Environment) platforms enable acquirers and merchants to decrease costs, increase revenues and improve customer retention.

Headquartered in Phoenix, Hypercom is independently acknowledged as the leading provider of point-of-sale information and transaction platforms worldwide. Demand for Hypercom’s platforms surpassed 1 million units last year alone. Hypercom today maintains an installed base of more than 4 million platforms in over 100 countries which conduct over 10 billion transactions annually. Hypercom’s Internet address is [http://www.hypercom.com][2].

[1]: http://www.atrana.com/
[2]: http://www.hypercom.com/

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Aspire Scholarships

At the close of this year’s Hispanic Heritage month, Aspire Visa, marketed by CompuCredit Corporation, announced the establishment of five endowment funds totaling $50,000.

The funds, named the “Aspire A Mas” Endowment Funds, will provide scholarships in perpetuity to students at five predominately Hispanic community colleges across the United States and will be matched dollar-for-dollar by each school for a total of $100,000.

Recipients of the gifts include Miami-Dade Community College, City College of San Francisco, Mountain View College in Dallas, Richard J. Daley College in Chicago and Eugenio Maria de Hostos in New York. Students receiving the scholarships are selected on the basis of their academic achievement, future goals, and economic need.

According to the 1999 U.S. Census Bureau, there is a significant educational deficit between Hispanics and other ethnic groups. Only 27.5% of Hispanic high school graduates ages 18-21 were enrolled in college in 1997 versus 46.1% of non-Hispanic whites.

“In serving the Hispanic community through our Aspire brand, we understand some of the unique educational challenges and needs faced by its youth,” said David Hanna, Chairman and Chief Executive Officer of CompuCredit. “That’s why we are committed to helping Hispanic youth reach their full potential. We hope that each `Aspire A Mas’ endowment fund will assist in expanding educational opportunities for Hispanics and will encourage their future achievements.” “We applaud Aspire’s long term commitment to our community. Through their efforts and generous support we are able to provide the next generation of students with the necessary skills needed to succeed,” said Dr. Jose Vicente, president of Miami-Dade Community College, InterAmerican Campus and an officer of the Hispanic Associations of Colleges and Universities, (HACU).

CompuCredit Corporation (Nasdaq: CCRT) is a credit card company that uses analytical techniques, including sophisticated computer models, to market general-purpose credit cards and related fee-based products and services. Through its Aspire brand and others, the company currently serves more than 2.3 million customers nationwide. Consumers can apply for a card online at [http://www.aspirecard.com][1], or in Spanish at [http://www.aspireamas.com][2]. Credit cards marketed by CompuCredit are issued by Columbus Bank and Trust Company under an agreement with CompuCredit. For more information about CompuCredit, visit [http://www.compucredit.com][3].

[1]: http://www.aspirecard.com/
[2]: http://www.aspireamas.com/
[3]: http://www.compucredit.com/

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TSYS 3Q/01

TSYS reported net income for the third quarter of $25.5 million a 33.5% increase over 3Q/00. Revenues for 3Q were $163.0 million, an increase of 9.4%, compared with revenues of $149.0 million for the same period in 2000. If TSYS had included the results of its Vital Processing Services joint venture with VISA, pro forma revenues for the third quarter would have been $207.5 million. TSYS also noted yesterday that transaction and authorization volumes dropped on Sept. 11th, and the following week, as most people stayed home with their families. However, in the weeks that followed, those processing volumes returned to normal levels as consumers resumed their daily activities. As of Sept 30, TSYS had 212.4 million accounts on file. For complete details on TSYS 3Q/01 performance visit CardData ([www.carddata.com][1]).

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

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Household 3Q/01

Household International this morning reported the highest quarterly net income in the company’s 123-year history of $504 million, a 12% increase over 3Q/00. The company’s managed portfolio grew to $95.7 billion, up 15% from the prior year. VISA and MasterCard receivables as of Sept 30 were $17.3 billion compared to $17.0 billion one year ago. Private label card receivables logged in at $12.4 billion compared to $12.0 billion last year. Delinquency (60+ days) for bank credit cards hit 3.91% compared to 3.48% for 3Q/00. Private label card delinquency stood at 5.88% compared to 5.67% one year ago. Chargeoffs for VISA and MasterCard accounts for 3Q/01 were 6.75% compared to 5.23% last year. Chargeoffs for private label card accounts for 3Q/01 were 5.13% compared to 5.28% last year. The company’s managed net interest margin percent widened to 8.57% from 7.95% a year ago due to lower funding costs. For complete details on Household’s 3Q/01 results and past performance visit CardData ([www.carddata.com][1]).

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

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OPC Signs 1000th Client

Official Payments Corporation ([www.officialpayments.com][1]) announced that the Mayor of Salt Lake County has approved the Selection Committee’s recommendation to hire Official Payments to provide the Treasurer with credit card services. This addition makes Salt Lake County the company’s 1,000th government client. The new payment systems will give Salt Lake County citizens the option of making their real estate tax payments by credit card over the Internet at [www.officialpayments.com][2] or by telephone at 800-2PAY-TAX. The systems are scheduled to go live November 1. The Treasurer’s collections from all sources (including borrowings) exceeded $1 billion in 1999. Official Payments is a leading provider of electronic payment options. The company has similar agreements with the Internal Revenue Service, 18 state governments, the District of Columbia, and over 900 local government entities to collect taxes, fees, and fines by credit card over Internet and telephone.

“Our citizens will now be able to make their real estate tax payments 24 hours a day, from the comfort of their home or office. This new payment option is part of our ongoing effort to bring the best possible service to county taxpayers,” said Larry Richardson, Salt Lake County Treasurer. “We chose Official Payments because their systems are proven, and security is of utmost importance to us,” Mr. Richardson added.

“We are pleased to add our 1,000th client, Salt Lake County, to our rapidly growing list of government partners,” said Thomas R. Evans, Chairman & CEO of Official Payments. “As more and more government entities discover the convenience and efficiency that electronic payments can provide, we are confident that others will follow the lead of governments like Salt Lake,” Mr. Evans added.

Official Payments charges taxpayers a convenience fee for processing these credit card transactions. The fee schedule can be found on the Internet at [http://www.officialpayments.com][3]. For example, a taxpayer who owed a current balance of $1,000 in real estate taxes and charged their taxes would find a total of $1,035 on their credit card statement: $1,000 for the tax bill and $35 for the convenience fee. American Expressr, MasterCardr, Discoverr and VISAr are the credit cards accepted by the program. Taxpayers using credit cards with bonus rewards programs can, depending on their card’s program, earn rewards, points, and cash- back on airline frequent flyer miles for paying their taxes.

About Official Payments Corporation

Official Payments Corporation (Nasdaq: OPAY) is the leading provider of electronic payment options to government entities. The company’s principal business is enabling consumers to pay their government taxes, fees, fines, and utility bills by credit card, via Internet and telephone. The company is unequaled in market penetration and national footprint. Official Payments has agreements to collect and process credit card payments with the Internal Revenue Service, 18 state governments, the District of Columbia, and over 900 county and municipal governments in 49 states across the United States. In 2000, Official Payments collected and processed over $925 million in federal, state and local government payments.

Official Payments was founded in the San Francisco Bay area in 1996. Thomas R. Evans, the former President & CEO of the Internet company GeoCities, became Chairman & CEO of Official Payments in the summer of 1999. Mr. Evans brought Official Payments public in November of 1999, raising $80 million in its IPO on the NASDAQ national market. The company’s success in new client acquisition, increasing business with its existing clients and in building consumer awareness can be attributed to the combination of an enormous market opportunity with a highly skilled and experienced management and staff, aggressive sales and marketing, and a core competency in developing and implementing leading-edge technical systems.

[1]: http://www.officialpayments.com/
[2]: http://www.officialpayments.com/
[3]: http://www.officialpayments.com/

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CashLynk Payroll Cards

Lynk Systems, Inc., the technology and service leader in the payment systems industry, has successfully implemented CashLynk, its electronic payroll card, for Spartan Staffing, Inc. Spartan is one of the largest specialized providers of labor and light industrial supplemental workers in the Southeast. By switching from traditional payroll to CashLynk, Spartan will significantly improve efficiency by eliminating all the time and costs associated with issuing paper checks to 2,500 supplemental workers on a daily basis.

With the CashLynk system in place, Spartan will issue each worker a CashLynk card and load his or her payroll account on a daily basis. There is no cost for printing, mailing or delivering checks when the CashLynk card is used. And there are no lost or stolen checks to replace, or returned checks to reprocess.

“We are very pleased with Lynk and the ease of integration of its CashLynk card into our existing payroll software,” said Tim Dyn, CFO for Spartan. “We are already gaining a tremendous amount of efficiency in managing our payroll process. Furthermore, CashLynk gives Spartan a competitive edge. Many staffing companies do not provide an electronic payroll solution, so Spartan is able to attract workers without traditional bank accounts and give them the flexibility of the CashLynk card. Our workers are excited about our company offering electronic payroll distribution, thus eliminating check cashing companies and the associated fees.”

Spartan will use CashLynk to pay supplemental workers who are primarily heavy laborers in the construction, landscaping, maintenance and sanitation industries. In turn, each worker can take advantage of CashLynk’s flexibility to make debit card purchases, ATM withdrawals, and long distance calls with low rates and no hidden charges. They can also transfer funds to a checking or savings account, or to an associated CashLynk account for a family member.

About Spartan Staffing

Spartan Staffing, Inc. is one of the largest specialized providers of labor and light industrial temporary workers in the Southeastern United States. Spartan has the well-deserved reputation for providing quality personnel to meet critical client requirements on a timely basis.

Founded in 1986, Spartan Staffing, Inc. is headquartered in Tampa, Florida and currently has 38 branch locations throughout Florida, Georgia, and North and South Carolina. The company is structured into three divisions: (1) Workforce which provides heavy labor for construction, landscaping, maintenance, and sanitation jobs; (2) Spartan Staffing which specializes in light industrial positions for assembly, manufacturing, distribution, food processing, warehouse assignments, CDL drivers and clerical positions; and (3) CitrusForce Staffing which provides specialized labor for the Citrus industry.

About Lynk

Lynk is a proven leader in electronic payment, cash dispensing and e-commerce services. The company processes transactions initiated by credit and debit cards, checks, and other access cards from merchant point-of-sale terminals, ATMs and web sites. Lynk also provides related services such as the issuance of stored value cards that facilitate electronic funds distribution.

Lynk controls the entire processing sequence, including sales, merchant payment equipment, design and hosting of Internet store fronts, transaction authorization, capture, settlement and customer service. This “in-sourced” model facilitates a truly integrated single-source service that gives Lynk customers one-call support for all their processing needs. Lynk’s proprietary technology and comprehensive network connectivity offer customers of all sizes unsurpassed processing performance.

Founded in 1991, Lynk has received Visa’s Service Quality Performance Award, and has earned recognition as one of the fastest-growing companies in America by Inc. magazine and Deloitte & Touche. For more information, please visit the company’s web site at [http://www.lynksystems.com][1].

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

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NAP 3Q/01

National Processing this morning reported net income for the third quarter of $15.0 million, up 16% over 3Q/00. Total merchant transactions processed were 897 million for the quarter, up 27% over comparable prior year amount. Merchant Card Services dollar volume processed was $39.6 billion. Revenue for Merchant Card Services increased to record levels of $105.6 million and $286.3 million for the quarter and nine months ended Sept 30, representing respective increases of 32% and 26% over the comparable prior year amounts. For complete details on NAP’s 3Q/01 results visit CardData ([www.carddata.com][1]).

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

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Citibank 3Q/01

While Citigroup’s overall operating profits declined 8% during the third quarter due to the Sept 11th events, the credit card division posted very strong results despite flat charge volume. Citi reported this morning that its income for North American Cards rose 16% as revenues increased 22% and EOP receivables expanded by 8%. Citi says pricing initiatives and lower cost of funds for its credit card programs led to a 172 basis point increase in the net interest margin, which more than offset the impact of a 153 basis point increase in the net credit loss ratio. However charge volume was flat, as Citi captured $55.0 billion in transactions during the third quarter, compared to $55.6 billion for the prior quarter, and $55.2 billion for the year ago quarter. But net revenues for North America Cards hit nearly $3.4 billion compared to $2.7 billion last year. Third quarter credit card income for North America was $573 million compared to $492 million for 3Q/00. Receivables for the North America portfolio logged in at $104.7 billion compared to $97.0 billion for the year ago quarter. Delinquency (90+ days) was 1.82% for 3Q/01 compared to 1.34% for 3Q/00. Charge-offs were 5.48% compared to 3.95% for 3Q/00. At the end of September Citibank had 93.4 million card accounts. For complete details on Citi’s 3Q/01 results visit CardData ([www.carddata.com][1]).

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

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