SVS in Canada

Comdata Corporation announced its Stored Value Systems subsidiary will provide American Eagle Outfitters with electronic point-of-sale currency conversion for its Canadian-based stores. An SVS electronic cash card customer since 1998, American Eagle Outfitters operates over 600 stores in the United States and Canada.

“Currency conversion is a critical factor for the growing number of domestic retailers that are expanding their operations to Canada,” said Mike Berry, executive vice president and general manager, Stored Value Systems, Inc. “Shoppers in American Eagle’s Canadian stores will enjoy faster check- outs, while store managers will benefit from more accurate, error-free accounting that SVS electronic cash cards provide.”

As the exclusive cash card provider with automatic currency conversion at the point-of-sale, SVS first introduced the technology in Canadian Pier One Imports stores last fall. SVS customers with currency conversion sell their cards in the common currency of the country where the store is located. The cards can be redeemed in either the United States or Canada. When a shopper presents an electronic cash card for payment, the SVS system converts the sale amount to the base currency of the card, deducts the amount of the sale, and calculates the remaining balance in the base currency. The transaction is conducted in real-time through the retailer’s point-of-sale device.

“Cross-border shopping is becoming more common today, especially in a fluctuating economy,” said Berry. “SVS is working with domestic retailers today to find new ways to capitalize on shopper trends. Our currency conversion feature is the first in a series of exciting developments we are introducing that add more value to retailers today challenged with incremental sales growth.”

As the leading electronic cash card provider, current SVS clients include some of the nation’s most acclaimed retailers, grocers and petroleum providers. Current SVS clients include K-Mart, Target, Radio Shack, Kroger, Lowes and Food Lion, all of which market the SVS product as private-label gift cards, electronic replacements for traditional gift certificates.

About Comdata

Comdata Corporation, , is redefining the movement of money and information through technology for businesses, customers and employees. A leading provider of transaction and information services, Comdata provides Comchek(R) 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(R) 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).

About Stored Value Systems, Inc. (SVS)

Stored Value Systems (SVS), , is the nation’s leading provider of retail cash card services and chip card programs. Retailers across America rely on SVS to create customer loyalty, increase transaction volumes and strengthen their competitive position in the retailer marketplace. The people of SVS are the undisputed experts at building retail brands and keeping satisfied shoppers in stores. Headquartered in Louisville, KY, Stored Value Systems is a wholly-owned subsidiary of Comdata Corporation.


LML Signs Harvey Chain

LML Payment Systems Inc. is pleased to announce its subsidiary LML Payment Systems Corp. has signed an electronic transaction processing contract with J.H. Harvey & Co. of Nashville, Georgia.

J.H. Harvey & Co. operates a chain of 45 store grocery stores located primarily in the state of Georgia. The transaction processing agreement involves the processing of check authorizations, credit, debit and EBT card transactions through LML’s proprietary transaction software REPS (Retail Electronic Payments System). All check transactions will be authorized against LML’s national database of checkwriters and subjected to a variety of positive velocity parameters which can be employed on a national, regional or store basis. The Automatic Risk Leveling (ARL) feature of REPS allows clients to select and adjust the check acceptance risk level for each region, store and/or each cash register while monitoring transactions in real-time, allowing for on-the-fly risk level adjustments. Credit, debit and EBT card transactions will be routed to third party processors for settlement.

‘We are pleased with this contract,’ said Corporation President and CEO, Patrick H. Gaines. ‘REPS provides retailers with information in a form never before available. As a retail payment management tool, we believe REPS is unprecedented. Each store transaction, whether it be a check authorization, check conversion, credit, debit or EBT card transaction, can be viewed by client management in real-time by region, store or individual check-out lane. Individual store and regional store managers have immediate access to the same data and reports providing the ability to make better decisions.’

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 new U.S. Patent No. 6,164,528 regarding Internet checking transactions, in addition to U.S. Patent No. 5,484,988 which describes a ‘Checkwriting point of sale system.’ which, through a centralized database and authorization system, is capable of providing and administering 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. 09/562,303. The newly allowed patent application describes corporate checks and electronic fund transfers (EFT) and relates to existing U.S. Patent No. 6,164,528 and U.S. Patent No. 5,484,988 (described above).


Beanie Baby Card

MBNA said yesterday that its new ‘Beanie Baby MasterCard’ generated more responses in its first three weeks than any other Web-driven initiative over the same period. The new ‘Ty Platinum Plus MasterCard’ is the first credit card to be offered with an exclusive, companion ‘Beanie Baby’. ‘M.C. Beanie’, a brown bear whose nose features the familiar red-and-orange MasterCard logo, will be sent to each ‘Ty Platinum Plus MasterCard’ cardholder upon initial use of the card. ‘M.C. Beanie’ was created exclusively for MasterCard by Ty Warner, chairman and CEO of Ty Inc. In addition to ‘M.C. Beanie’, the ‘Ty MasterCard’ offers a points program. Cardholders can redeem points to obtain Ty merchandise, including ‘Beanie Babies’ created exclusively for the program. The card is marketed through Ty’s Web site.


Heartland & ARA

The Arizona Restaurant Association and Heartland Payment Systems Inc. recently announced an expanded partnership, which utilizes Heartland’s statewide sales professionals as an additional distribution channel for ARA memberships across the state of Arizona.

Heartland’s local sales professionals have started offering ARA memberships along with its value-added services in addition to HPS credit card and payroll processing services to restaurant merchants in Arizona. In the spirit of a true partnership, the ARA will compensate the Heartland sales team for increasing their membership sales. This unique distribution channel strategy sets a precedent in the industry, which both HPS and the ARA are convinced will gain popularity with other state association partners. Currently, Heartland is moving forward with similar arrangements with other restaurant and hospitality partners throughout the United States. “We believe that our expanded relationship with the Arizona Restaurant Association is a testament to the outstanding reputation of our dedicated relationship managers as an excellent distribution channel in Arizona as well as throughout the United States,” said Sanford Brown, SVP of sales and association marketing director, HPS. Brown continued, “As a new distribution channel for ARA programs and services, HPS will generate synergies between our organizations, which will further cement our partnership and increase both organizations’ market reach.” The ARA agrees as Joe Yuhas, ARA executive director stated, “Our association is very excited about this new initiative. Of course, this effort only strengthens our already solid partnership with Heartland. “But more importantly, it positions the Arizona Restaurant Association for sustained growth and expands our ability to bring the services of our association to even more restaurant merchants and their employees across the state.” This expanded partnership is a prime example of how a non-profit organization and a “for profit” company can work together to provide more value-added services and additional support to the restaurant industry. By using HPS as a distribution channel and combining marketing resources, both organizations will be able to increase their exposure in the marketplace and dramatically reduce costs to the ARA, which can be passed on to their members. Yuhas sums it up nicely, “Both the ARA and HPS stories are strong ones. As an association, we save our members thousands of dollars each year, which is added to their bottom lines in what is one of the most competitive of all industries. The addition of Heartland to our membership development team will allow both of us to present our stories to more restaurant merchants than ever before.”

About ARA

The Arizona Restaurant Association is the voice of the Arizona restaurant industry, some 8,000 members strong and representing over 8 percent of the Arizona economy. They are committed to serving the unique needs of their member restaurants and food service professionals by promoting a pro-business, pro-restaurant message and the value of the free enterprise system.

About Heartland

Heartland Payment Systems Inc. (HPS) is a full-service payment systems solutions provider, handling merchant card and payroll processing services for over 50,000 merchants of all types and sizes. Using a strategically located national sales force, HPS builds long-term business relationships in local sales territories providing merchants with enhanced technology tools that assist them in more effectively operating their businesses. For more information about HPS, please visit them online at [][1] or [][2].




NCR Corporation announced that Earl Shanks has been named senior vice president and chief financial officer effective September 10, succeeding David Bearman who is retiring from the company at the end of 2001. Bearman will work with Shanks over the coming months to transition the financial leadership of NCR.

Shanks most recently served as NCR’s vice president of corporate finance. Previously, he served as vice president and corporate controller, as well as treasurer and head of mergers and acquisitions. He joined NCR in 1996 from Chicago-based apparel maker Fruit of the Loom, Ltd. where he was vice president and treasurer.

“Earl is an exceptional executive to succeed David,” said Lars Nyberg, chairman and chief executive officer of NCR. “He quickly demonstrated leadership in each of the corporate finance positions he has held since coming to NCR, and continually demonstrates the qualities necessary to be an outstanding chief financial officer for the company.”

Commenting on his impending retirement, Bearman said, “I am delighted to have been a part of the transformation of NCR these past three years. I am extremely confident in Earl’s abilities and in the financial strength of the company going forward. Now is the right time in the evolution of NCR and for myself personally to make this change.”

Bearman came to NCR in 1998 after nine years with Cardinal Health, Inc. and 20 years with General Electric Company.

“I join everyone at NCR in thanking David for his contributions as we’ve worked together to complete the transition from being a computer hardware vendor to a technology solutions provider,” said Nyberg. “Through his complete restructure of our global finance operations, David leaves behind a strong foundation from which NCR can continue to grow and succeed.”

Shanks began his career at Peat Marwick International in 1978, which joined with Klynveld Main Goerdeler in 1987 to become global professional services organization KPMG International. During his five-year tenure, Shanks served in various management positions before joining Farley Industries, Inc. in 1983 as director of tax. There he served in key areas of financial management including treasury, acquisitions, divestitures and tax planning. Farley Industries acquired Fruit of the Loom in 1985.

Shanks is a graduate of the University of Illinois, where he earned both a master’s degree in accounting and a bachelor’s degree in organizational behavior.

In his new role as chief financial officer, Shanks will report to Nyberg and will replace Bearman as a member of NCR’s four-person Executive Committee, which is responsible for setting company direction. Other members of this committee include Nyberg, Mark Hurd, president of NCR and chief operating officer of the company’s Teradata Division, and Howard Lance, president of NCR and chief operating officer of the company’s Retail and Financial Group.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leader in providing Relationship Technology(TM) solutions to customers worldwide. NCR’s Relationship Technology solutions include the Teradata(R) database and analytical applications such as customer relationship management (CRM) and demand chain management, store automation systems and automated teller machines (ATMs). The company’s business solutions are built on the foundation of its long- established industry knowledge and consulting expertise, value-adding software, global customer support services, a complete line of consumable and media products, and leading edge hardware technology. NCR employs 33,300 in more than 100 countries, and is a component stock of the Standard & Poor’s 500 Index. More information about NCR and its solutions may be found at .

NCR and Teradata are trademarks or registered trademarks of NCR Corporation in the United States and other countries.


Hyper Deal

Hypercom Corp. has entered into a contract valued at an expected $30 million with First Data’s TASQ Technology. Hypercom says the deal reflects the escalating demand for consumer-activated, EMV smart card capable, touch screen payment terminals. Hypercom’s ‘ePOS-infocommerce ICE’ terminals incorporate Hypercom’s ‘TranSafe’ operating system, which incorporates, multi-tasking, firewall-protected multi-application functionality, along with EMV chip card capability, a secure PIN pad, built-in HTML/HTTP Web browser and integrated receipt printer.


Canadian Bankruptcies

Canadian consumer bankruptcies increased 7.9% in July 2001 compared to the same period one year ago. According to statistics released this week by the Federal Superintendent of Bankruptcy, a total of 7,073 individuals declared bankruptcy in July 2000, compared to 6,554 one year ago. More than 400,000 personal bankruptcies were filed during the second calendar quarter of 2001 in the U.S.A., the highest number ever filed in one quarter. According to data released last month by the Administrative Office of the U.S. Courts, a total of 400,394 petitions were filed between April 1 and June 30 of this year, a 24.5% increase over the 321,729 cases filed in the same period last year.



Dai Nippon Printing Co and Toppan Printing Co have become the first firms
to develop operating software for a smart cash card based on specifications
set by the Japanese Bankers Association. Dai Nippon Printing will provide
the software for a smart card that Fuji Bank and Dai-Ichi Kangyo Bank of
the Mizuho Financial Group began issuing on a trial basis last week. It
will also develop a card for use in ATMs. Toppan Printing will ship a smart
card based on the new software by next April with projected annual sales of
one million cards. Toppan also plans to develop a smart card that provides
both credit and cash card functions.


Charge for the Cure

Sunstone Hotel Investors, L.L.C. will partner with American Express in the “Charge for the Cure” campaign, September 1, 2001 through October 31, 2001. During these months American Express will donate one cent for every American Express charge made at any one of Sunstone’s 53 hotels. All of Sunstone’s properties will take part in “Charge for the Cure,” most notably the Portland Marriott City Center on Broadway, San Diego’s Holiday Inn Harbor View, the Sheraton Salt Lake City Centre, Salt Lake’s University Park Marriott, and the Utah Valley Marriott Conference Center in Provo. American Express will ultimately make a donation of up to $500,000 to the Susan G. Komen Breast Cancer Foundation based upon consumer charges made at all participating merchants.

John Elston, Sr. VP of Sales and Marketing for Sunstone Hotels, says, “The ‘Charge for the Cure’ campaign is an excellent opportunity for businesses like ours to help make a difference. Just by encouraging our guests to use their American Express cards, we’ll be helping the Susan G. Komen Foundation further their efforts in finding a cure for breast cancer. This is an opportunity we just couldn’t afford to pass up.”

To take part in “Charge for the Cure,” guests simply need to pay for their hotel charges using their American Express card. All of Sunstone’s hotels will display in-property signage alerting guests of the “Charge for the Cure” campaign. Sunstone Hotels owns and operates properties throughout CA, OR, WA, AZ, MN, UT, ID, and AK, all of which will be participating in the “Charge for the Cure.” For a complete listing of Sunstone Hotels, visit the Sunstone web site at:


U.S. Bank/AmEx

U.S. Bank has signed an agreement to sell American Express Travelers Cheques. The cheques are currently available at all U.S. Bank locations. U.S. Bank customers can also purchase American Express Cheques for Two, a travelers cheque that allows two people to share the same set of cheques, and American Express Gift Cheques, which are like gift certificates that can be redeemed anywhere that accepts American Express Travelers Cheques. Gift Cheques are available in denominations of $25, $50 and $100.

American Express issues the world’s leading and best recognized brand of travelers cheques. American Express Travelers Cheques are accepted nearly everywhere around the world and are replaceable if lost or stolen.

“We chose American Express because they share our strong commitment to customer service,” said Steven S. SaLoutos, senior vice president, U.S. Bank. “These travelers cheques are the perfect addition to the wide range of products and services U.S. Bank has available for customers.”

American Express’ “Worldwide Refund Delivery Service” promises the best refund service for lost or stolen cheques including, if necessary, hand-delivered refunds virtually anywhere in the world.

Chris Cowan, Vice President of National Accounts Sales and Development for the American Express Travelers Cheque Group stated, “We are truly excited about this new partnership with U.S. Bank and their customers. U.S. Bank’s strong presence, with over 1000 locations in the Midwest and West, will significantly increase consumer access to our family of Cheque products.” American Express Company ( ), founded in 1850, is a global travel, financial and network services provider.

Minneapolis-based U.S. Bancorp (NYSE: USB), with assets in excess of $165 billion, is the 8th largest financial services holding company in the United States. The company operates 2,262 banking offices and 5,208 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp is the parent company of Firstar Banks and U.S. Bank. Visit U.S. Bancorp on the Web at and Firstar Bank at


Providian Slips

Providian, this morning, lowered its earnings estimates for the year, citing a recent slowdown in customer purchase activity, softer loan demand relative to expectations, and ongoing credit tightening by the Company. In the third quarter, Providian expects to report an improvement in its managed net credit loss rate to below the second quarter rate of 10.29%. At the currently expected loan growth levels, Providian says it is likely that the fourth quarter managed net credit loss rate will be between 10.45% and 10.75%. Providian indicated it is revising its 2001 earnings guidance to $3.20 to $3.25 per diluted share, representing a 17% to 19% increase over 2000 earnings per share before one-time adjustments. Providian’s stock tumbled last week after analysts complained about the manner in which Providian revealed it had changed its policy on how it accounts for bad loans. Credit Suisse First Boston and Goldman Sachs analysts both cut their earnings outlooks after Providian disclosed in a recent regulatory filing that is now taking up to 30 days to write off accounts when customers notify them that they will not pay because of bankruptcy. Analyst aid that while the policy change is consistent with practices, and within regulatory guidelines, it caused a two-week period when bankruptcies were not being charged-off, and this lowered the loss rate in the second quarter.



Canadian consumer bankruptcies increased 7.9 per
cent in July 2001 over July 2000, according to statistics released by
the Federal Superintendent of Bankruptcy. A total of 7,073 individuals
declared bankruptcy in July 2000, compared to 6,554 filed in July 2000.
“This represents a dramatic increase in the rate of Canadian bankruptcy
filings when compared to the 3.2 per cent increase over the first six months
of this year, ” said Frank Kisluk, President, Debtor Consulting Services Ltd,
of Toronto. In the United States, filings increased 24 per cent over the same

According to Kisluk, “The significant rise in July filings could be an
indicator of even more dramatic increases to come in personal bankruptcies
over the next six months.”

Citing the U.S. economy which Canada typically mirrors, Kisluk believes
that “a combination of factors contributed to the increase in July filings
including continuous job layoffs, a near zero-savings rate, reduced consumer
spending and an increased credit card delinquency rate.” In July, the U.S.
credit card delinquency rate, based on account balances more than 30 days past
due, rose for the eighth straight month to 5.06 per cent.

“We have evidence that Canadian and U.S. bankruptcy filings have
traditionally grown at the same pace, and based on the July statistics, we can
expect that Canada is now entering a catch-up phase to the U.S. number of
filings. We anticipate that Canadian insolvencies are set to expand rapidly
over the next six months,” Kisluk added.


Toronto-based Debtor Consulting Services Ltd. specializes in the field of
financial structuring and insolvency services. President and Bankruptcy
Trustee Frank Kisluk incorporates into his practise over 32 years of
professional experience. Kisluk is the author of Life After Debt and Dear