Smart Deployment

The US Army has selected SchlumbergerSema smart card readers for implementation of the DoD CAC program. This represents the largest single deployment of smart card readers in the US to-date. SchlumbergerSema said this morning that Logicon has acquired nearly 60,000 of its advanced ‘Reflex’ smart card readers for the US Army’s implementation of the Department of Defense ‘Common Access Card’ program. Previously EDS purchased 600,000 of Java-based ‘Cyberflex Access’ smart cards for the overall DoD CAC program. Logicon says this is the first time the GSA contract has been used by one of the services to support its smart card requirements. The US Army will utilize the ‘Reflex 72 USB’ and ‘Reflex 20 PCMCIA’ readers, which connect with desktop and portable PCs to authenticate smart cards used for secure network access, as part of their implementation of the DoD CAC program.

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Perfectly Clear

IL-based Perfect Plastic Printing said Wednesday it has received a patent covering their clear card technology and manufacturing process. The technology dubbed ‘Perfectly Clear’ produces translucent cards that can be in read in all POS devices, ATM and standard card counters. PPP says the design possibilities for the translucent cards are extensive. PPP currently produces the translucent ‘Quantum’ card for MBNA. The use of translucent credit cards has been spreading throughout the industry. Eighteen months ago, American Express introduced the first translucent smart card with the launch the ‘Blue’ smart card. In July 2000, MBNA introduced the translucent ‘Quantum VISA/MasterCard’. In September 2000, Providian introduced a translucent card with the introduction of the first ‘smart VISA’ cards in the USA. The Providian card is called the ‘Clear smart VISA’. Schlumberger Test & Transactions has also unveiled the transparent ‘Luxea’ smart card. In France, Banque Directe introduced a translucent ‘VISA Carte Bleue’ smart card to be marketed as the ‘Directe Card’. (CF Library 6/16/00; 7/7/00; 10/26/00; 4/30/01)

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Cross Country Contributions

Applied Card Systems and Cross Country Bank announced they have committed $1 million toward assisting relief efforts stemming from last week’s terrorists attacks on the World Trade Center and the Pentagon, and another $10 million for the purchase of war bonds as soon as they become available. Additionally, the companies will match funds pledged by their 4,500 Associates nationwide.

“In this time of national crisis, corporate America and indeed all Americans must pull together and support both the victims of this horrific event as well as our President as he orchestrates our nation’s response. The ramifications of these senseless acts will continue to affect many Americans for months to come and we hope our effort, when combined with so many others that are underway, will be a source of comfort for those directly impacted by the tragic events that have occurred,” said Rocco Abessinio, Chairman of Applied Card and its affiliate Cross Country Bank.

“Applied Card Systems and Cross Country Bank are pleased to be able to make these commitments to aid the relief efforts. On behalf of our Associates, I want to extend our deepest sympathies to all the victims and the families affected by this terrible tragedy, and our heartfelt thanks to the rescue workers who are making a Herculean effort,” Abessinio concluded.

Applied Card Systems and Cross Country Bank, headquartered in Wilmington, DE, specialize in the nontraditional credit card market. Applied Card Systems also has operation centers in Boca Raton, FL, Huntington, WV, Ashland, KY and Beckley, WV.

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Payment Cartridge

CyberSource Corporation, a leading provider of risk management and electronic payment solutions for enterprise businesses, and a member of IBM PartnerWorld for Software, announced immediate availability of the CyberSource payment cassette for IBM WebSphere* Commerce. The CyberSource payment cassette, with IBM’s WebSphere Commerce, enables businesses to easily and efficiently deploy a seamless payment processing solution that supports credit, private label and procurement cards, as well as electronic checks.

“We are pleased to work with our IBM Business Partners like CyberSource to deliver sophisticated solutions that help drive e-commerce enablement and allow merchants to meet customer demand,” said Ed Harbour, Director, WebSphere Commerce, IBM Software Group. “By leveraging the strength of WebSphere Commerce, CyberSource is helping to provide enterprises with a scalable and flexible payment solution.”

“This pre-integrated component makes it easier than ever for businesses using IBM WebSphere to take advantage of the operational and scalability benefits provided by CyberSource’s payment solutions,” said Dave Daetz, Senior Vice President of Corporate Business Development, Marketing, and Product Management at CyberSource Corporation.

Businesses using the IBM WebSphere Commerce can take advantage of CyberSource’s payment solutions by installing the CyberSource payment cassette, which provides seamless integration with CyberSource’s payment software or outsourced payment services. Each operates behind-the-scenes to authorize and settle credit and debit cards and electronic check payments through built-in connections with third-party processors and merchant banks. CyberSource payment solutions also provide real-time, multiple currency support.

The CyberSource Payment Manager(TM) software is a powerful, transaction-processing server that supports multiple enterprise sales channels. The software integrates seamlessly with legacy front-end, financial management and customer relationship systems to provide in-house control and flexibility of payment operations.

The CyberSource payment service combines the advantages of robust functionality with the rapid deployment and management ease of an outsourced service. Enterprises 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 IBM WebSphere Commerce

IBM WebSphere Commerce, the first integrated e-commerce solution, provides multiple easy-to-use features and functions for content management, relationship marketing, order management, and payment management for all types of Internet businesses, including business-to-business, business-to-consumer, and e-marketplaces. Sites built with WebSphere Commerce can easily integrate with both internal and external systems and grow with the changing needs of an e-business. IBM WebSphere Commerce customers benefit from the functionality of the WebSphere software platform for e-business, which integrates Web commerce, Web application server, Web application development tools, transaction processing and distributed component software from IBM (NYSE: IBM). Additional information about WebSphere Commerce is available at [ibm.com/software/websphere/commerce/][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 real-time 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 or email info@cybersource.com.

[1]: http://www.cybersource.com/solutions/electronic_payment/solutions/
[2]: http://ibm.com/software/websphere/commerce/

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Omni 3700

VeriFone unveiled the ‘Omni 3700’ product family, its newest terminals based on the ‘Verix’ multi-application architecture. The terminal features a 32-bit processor, is compact with a large display and keys in an ATM-style user interface. In addition to payments, the ‘Omni 3700’s’ advanced information collection and remote diagnostic capabilities can be supported via VeriFone’s ‘VeriCentre Appliance Management Suite’, providing help desk operators with a window to the status of terminals’ device handlers, applications, and parameters. Paymentech has Class B-certified the latest version of VeriFone’s ‘SoftPay’ e-payment software that runs on both the ‘Omni 3700’ and the ‘Omni 3300/3350’.

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WorldPay 3-D

Following Visa International’s worldwide launch last week of Visa 3-D Secure, WorldPay is set to lead the way in the implementation of 3-D Secure globally.

WorldPay will provide Arcot’s 3-D Secure technology to its customer base in 109 countries and deploy Arcot Transfort as an outsourced solution to a range of banks to ensure rapid and reliable deployment of the 3-D technology.

Visa 3-D Secure is part of Visa’s Secure Commerce Program and is designed to reduce the risk of unauthorized card usage and make Internet shopping a more successful and secure experience for both buyers and sellers.

3-D Secure offers an additional layer of security, introducing username/password, physical chip card, and Arcot Software Smart Card security, developed and piloted by Arcot and Visa during the past eighteen months.

WorldPay will initially provide 3-D Secure to their 11,000 global e-businesses and concurrently the system will be available to any member of Visa’s issuing bank network around the world to allow their cardholder a 3-D Secure authentication while making a transaction via WorldPay. WorldPay already processes Visa transactions from cardholders in over 200 countries and territories.

Jon Prideaux, Executive Vice President, Virtual Visa said: “The benefits 3-D Secure offers our cardholders and e-businesses will drive adoption and increase e-commerce revenues. Visa is delighted to be working together with WorldPay, the largest multi-currency payment aggregator in the world, to secure e-commerce globally for our cardholders”

“Visa’s 3-D Secure is designed to create a conducive e-commerce environment for buyers and sellers, and to meet consumers’ demand for protection against unauthorized transactions on their card. We have received positive response from our Member banks and e-merchants piloting 3-D Secure in Asia Pacific,” said Mark Burbidge, Senior Vice President and General Manager, e-Visa, Visa International Asia Pacific. “We are pleased to be joined by WorldPay to ensure this level of confidence and security for all parties”

Nick Ogden, Chairman and CEO of WorldPay Ltd, said: “Security continues to be a major concern for e-commerce, but despite this we are seeing month on month increases of over 20% in the number of transactions we process on behalf of existing and new customers, furthermore hundreds of businesses every week are continuing to invest and develop e-business activities. WorldPay is a pioneer in guaranteed online transactions and this agreement with Visa and Arcot significantly enhances the protection against fraud for both e-businesses and cardholders. By providing both ends of the 3-D solution simultaneously in a global deployment we believe that the acceptance and use of the Visa solution will be rapidly driven forward.”

Ram Varadarajan, Founder and COO of Arcot, added: “We’ve worked hand in glove with Visa over the past year and a half to jointly develop the highest possible level of security for consumers. Now, through this innovative partnership with WorldPay, we can offer the consumer an unprecedented level of reassurance and security.”

3-D Secure conforms to The Visa Payer Authentication Service, part of Visa’s Secure Commerce Program, that is designed to reduce the risk of unauthorized use of a cardholder account and make Internet shopping better and safer for both buyers and sellers on the Web.

— Cardholders gain confidence in the security of their funds when purchasing through a 3-D Secure system for Internet transactions

— 3-D Secure will dramatically reduce e-businesses exposure to online credit card fraud

— WorldPay will make 3-D Secure available to their 11,000 global e-businesses with the first fully hosted integration to Arcot’s technology

About WorldPay

WorldPay ([www.worldpay.com][1]) was founded in 1993 and throughout its history has consistently developed innovative and secure Internet-based products and services.

Today, as the globally acknowledged and trusted leader in secure, multi-currency Internet payment solutions, WorldPay enables over 11,000 customers in 109 countries to sell to shoppers around the globe – in the language and currency of their choice.

Through its unique Guarantee, WorldPay makes international online transactions easy, safe and reliable by offering online businesses protection against card fraud, and shoppers peace of mind that they are buying with confidence from WorldPay Guaranteed online stores.

WorldDirect, WorldPay’s multi-currency payment system is integrated to all the leading e-commerce storebuilding applications, including its own Click and Build. Other WorldPay services include micro-payments e-wallet solution WorldAccount, and repeat billing solution FuturePay.

Based in Cambridge, UK, WorldPay’s Asia Pacific regional center is in Singapore and its Americas center is in Sterling, Virginia, USA.

WorldPay shareholders include NatWest Bank Plc, Energis Plc and PSINet

About Visa

Visa is the world’s leading payments brand and the largest payments system worldwide. Visa-branded cards generate almost US$2 trillion in annual volume and are accepted at over 22 million locations around the world. The Visa organization plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions and their cardholders.

Visa is a leader in Internet based payments and is pioneering the creation of u-commerce, or universal commerce – the ability to conduct commerce anytime, anywhere, over any type of device.

More information on Visa Authenticated Payments can be found at [www.visaeu.com][2]

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 protect their customers’ privacy and reduce fraud.

For more information, please visit: [www.arcot.com][3].

[1]: http://www.worldpay.com
[2]: http://www.visaeu.com
[3]: http://www.arcot.com

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LOGICA RECHARGES

Prepaid mobile customers can now
benefit from web, ATM, credit card and electronic point-of-sale top-up
services with the introduction of an extended range of options provided under
Logica’s Recharge Management System. The technical advance was
announced this week at the Prepaid Mobile 2001 show in Marbella, Spain.
Logica’s Recharge Management System dramatically increases the
attractiveness and ease-of-use of prepaid mobile phones, which have already
secured significant market share in mobile telephony markets. For example,
Logica’s RMS enables network operators to move away from voucher-based
recharge systems and thereby reduce distribution, warehousing and commission
costs. The cost to the operator of each recharge transaction falls
dramatically.

The system already offers complete management of the prepaid voucher life
cycle from secret number generation to secure recharge validation, but the new
features of RMS are certain to improve payment flexibility for mobile users,
opening up many more options which can be found easily in any High Street, on
the phone or at home.

According to Steve Buck, Product Director of Logica’s Intelligent Network
Group, “Deployment of electronic recharge mechanisms can reduce operator costs
by up to 85%. And the extended range of recharge mechanisms now available to
prepaid subscribers makes it easier than ever for them to recharge their
phones, which will make them happier and more loyal customers. It is also
easier for them to maintain a positive credit balance — because subscribers
are far less likely to be remote from recharging facilities — and therefore
the ability to make calls,” Buck added.

Capitalising on its wealth of experience in the financial sector, Logica’s
solution provides flexible interfaces to financial networks (such as acquiring
banks, credit card networks, electronic point of sale and ATM networks) to
enable the delivery of multiple channel recharge options. It also includes a
payments switch, a core component of the system, which has been proven in over
400 banking establishments globally. Logica’s Recharge Management systems has
an excellent track record with over a quarter of a billion recharges completed
over the past 5 years without any reported incidents of fraud.

About Logica

Logica (LOG.L) is a leading global solutions company providing management
and IT consultancy, systems integration, products, services and support.
Logica’s clients operate across diverse markets including telecoms, financial
services, energy and utilities, industry, distribution and transport and the
public sector. The company has over 12,000 staff in 30 countries worldwide.
Founded in 1969, Logica is listed on the London Stock Exchange where it is
part of the FTSE100 index of the largest UK listed companies. More
information can be found at .

Logica in mobile messaging
Logica is the leading supplier of messaging systems to over 100 of the
world’s top mobile telecom operators; these systems serve over 150 million
active subscribers. Logica’s market leading position will be further enhanced
by the imminent deployment of the world’s first ‘live’ 3G messaging systems.
In addition, Logica is fast becoming a market leader in the emerging world of
multi-media messaging services, and is a leader in wireless Prepaid and
Roaming solutions.

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Bankruptcy Reform

Bankruptcy reform legislation will be stalled for the foreseeable future following the tragic events in New York and Washington last week. The formal meeting of House and Senate conferees, which was scheduled yesterday afternoon, was postponed indefinitely by House Judiciary Chairman James Sensenbrenner (R-Wis.). Sensenbrenner is also the chair of the bankruptcy conference. Reportedly a number of the key members will be consumed with matters relating to last week’s tragedy.

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ATM FEE INCREASE

Euronet Worldwide, Inc., a leading provider of secure electronic
financial transaction solutions, announced that it will benefit from an
interchange fee increase that is being applied by its outsourcing partner
bank on all of the 369 ATMs serviced by Euronet in Germany.
Recently, German banks lifted restrictions that require a fixed,
transaction interchange fee for domestic Eurocheck (EC) cards, enabling
ATM owners to establish their own ATM usage fee. Euronet’s outsourcing
partner bank has raised the fee by approximately 20%, from DM 4.00 to EUR
2.50 (DM 4.89) on their ATMs across Germany. All of the increase on
Euronet-serviced ATMs will flow through to Euronet as revenues under its
ATM service agreement. Transactions from Eurocheck cards account for
almost 90% of the total transactions performed on ATMs serviced by
Euronet in Germany. Favorable interchange rates enable ATM owners and
operators to provide consumer convenience through ATM deployment in
easily accessible locations.

“We are pleased that the German banking authorities have allowed our
outsourcing partner bank to change the ATM interchange fee,” said Michael
Brown, Chairman and CEO of Euronet Worldwide, Inc. “The timing of this
increase, right before the Christmas holiday season, couldn’t be better.
Germany has accounted for approximately 16% of Euronet’s revenues in the
first half of 2001. The fee increase could affect transaction demand, but
we anticipate that the net result will be an increase in revenues.”

About Euronet Worldwide

Euronet Worldwide is an industry leader in providing secure
electronic financial transaction solutions. The company offers financial
payment middleware, financial network gateways, outsourcing and
consulting services to financial institutions and mobile operators. These
solutions enable their customers to access personal financial information
and perform secure financial transactions — any time, any place. The
company has processing centers located in the United States, Europe and
Asia, and owns and operates the largest independent ATM network in
Europe. With corporate headquarters in Leawood, Kansas, USA, and European
headquarters in Budapest, Hungary, Euronet serves more than 200 clients
in 60 countries. Visit our web site at www.euronetworldwide.com.

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Wells & Authorize.Net

InfoSpace, Inc., a leading provider of the platform and applications that enable partners to deliver consumer and commerce services across the Internet to any device over current and next-generation networks, announced that Wells Fargo & Company, the nation’s leading internet bank1, has selected InfoSpace’s payment processing platform, Authorize.Net, for Wells Fargo’s SecureSource payments service.

The new service is an integrated payments solution enabling business customers to accept, fraud-screen and settle credit card and electronic check transactions online — using a single interface. Customers enroll for the new service online and receive an approval decision in seconds. In addition, the service gives customers the ability to view and manage their online payments account and transaction history in real-time — making financial reconciliation and customer dispute management simple and efficient.

“We were the first financial institution to develop proprietary risk and fraud management technology and to integrate it into person-to-person online payments, said Debra Rossi, executive vice president of business Internet services for Wells Fargo. “As the leading Internet bank and the leading small business lender, we continue to pioneer products and services that offer small business customers a direct, practical enhancement to how they manage and grow their small businesses online.” The SecureSource service features Wells Fargo’s proprietary risk and fraud management technology, and electronic check product.

“InfoSpace’s merchant services processed over $1 billion in transactions in the first half of this year. Working with a leading financial institution such as Wells Fargo, we continue to extend our reach and drive increased transaction volumes through our platform,” said Naveen Jain, chairman and chief executive officer of InfoSpace. “This relationship demonstrates our commitment to providing partners with the tools they need to deliver a wider range of services to their customers, build stronger brands and develop new revenue streams.”

InfoSpace’s Authorize.Net(TM) service has been pioneering online payment processing solutions since 1996 providing server-based payment solutions that enable merchants to process transactions in a secure, real-time environment 24 hours a day. Over 120,000 merchants have signed up for Authorize.Net, which enables merchants to authorize, process, and manage credit card and electronic check transactions on Internet-enabled mobile devices and personal computers.

About InfoSpace, Inc.

InfoSpace, Inc. (NASDAQ:INSP) provides an integrated technology platform and suite of applications that enable partners to deliver consumer and commerce services across the Internet to any device over current and next-generation wireless, broadband and narrowband networks. The Company’s array of products includes consumer services, such as communication, entertainment, gaming and speech applications, as well as commerce services, including payments, promotions and shopping. Together, the InfoSpace platform and applications comprise a highly flexible and scalable end-to-end solution that can be rapidly deployed under a partner’s brand. InfoSpace’s partners and affiliates include more than 3,200 Web sites and companies worldwide, including Verizon, AT&T Wireless, Cingular Wireless, ALLTEL, Virgin Mobile, Charles Schwab, Intel, Lucent, Nortel, AOL, Microsoft, Lycos, National Discount Brokers and Bloomberg, among others.

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FDE DIRECTOR

First Data Europe, the European subsidiary of electronic payments leader First Data Corp. announced that Marcus Mosen, has been named Managing Director Germany, a new position. The announcement was made today by Gerald E. R. Hawkins, chief executive officer, First Data Europe. The appointment is effective October 1t.

In his new role, Mosen will be responsible for First Data Europe card processing operations in Germany, based in Nuernberg, and promote the further business growth in the German speaking market.

“With both broad payment and communications services knowledge and extensive experience in all aspects of marketing and general management, Marcus Mosen will provide our German business with an entrepreneurial lead in a changing and competitive environment. With Marcus joining our German operations, I am confident that First Data Europe will strengthen its business in a key market place in Europe,” said Hawkins.

For the last three years Mosen has been vice president for GZS Gesellschaft fuer Zahlungsstystem mbH, the German card processor owned by the German banks. In his last position he was responsible for the Sales and Customer Management Division, before that he managed the Merchant Processing Business Unit. He gained his main professional experience in the telecommunications industry and in the area of Mergers & Acquisitions. Mosen has a German Degree in Business Economics and a British Masters Degree in Business Administration.

About First Data Europe

Based in Basildon, England, First Data Europe is the leading independent third party transaction processor in Europe and Europe’s leading Internet-only processor. First Data Europe services major banks and financial institutions in the United Kingdom, Germany, Spain, the Netherlands and the Middle East.

About First Data Corp

First Data Corp. (NYSE: FDC) with global headquarters in Denver, powers the global economy. Serving approximately 2.6 million merchant locations, more than 1,400 card issuers and missions of consumers, First Data makes it easier, faster and more secure for people and businesses to buy goods and services, using virtually any form of payment: credit, debit, smart card, stored-value card or check at the point of sale, over the Internet or by money transfer. For more information, please visit the company’s Web site at www.firstdata.com

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OPC in AK

Official Payments Corporation (www.officialpayments.com) announced that the City and Borough of Juneau, Alaska’s state capital, has signed a service agreement with the company.

The agreement enables Juneau taxpayers to pay their real estate, business personal property and sales tax obligations in addition to utility, ambulance and other specific accounts receivable bills by credit card over the Internet (www.officialpayments.com) or via telephone (800-2PAY-TAX) through Official Payments’ systems. Real estate tax bills were sent out July 1, 2001 and are due September 30, 2001. Sales taxes are due four times a year, on the last day of January, April, July and October. If the last day of a month is a weekend or holiday, taxes will be due the next business day. The new payment systems are scheduled to go live later this month, in advance of the September 30th real estate tax due date. American Express(R), Discover Card(R), MasterCard(R) and Visa(R) are the cards accepted by the program. Official Payments is a leading provider of electronic payment options and has similar agreements with over 900 government entities across the country. The Company has contracts with the Internal Revenue Service, 18 state governments and the District of Columbia to collect taxes, fees, and fines by credit card over the Internet and telephone.

“We are delighted to be continuing our momentum in Alaska. Last month we signed Anchorage, and today we announce new business with the City and Borough of Juneau. I’m pleased with our progress,” stated Thomas R. Evans, Chairman & CEO of Official Payments.

Official Payments Corp. charges taxpayers a convenience fee for processing these credit card transactions. The fee schedule can be found on the Internet at www.officialpayments.com. 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 Express(R), MasterCard(R), Discover(R) and VISA(R) 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 48 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.

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