Bank ONE Services

Bank One Corporation, the nation’s fifth-largest bank and the second largest provider of collection products, recently introduced two internet-based services that present bills and collect payments in both the business-to-consumer (B2C) and business-to- business (B2B) environment.

Called the One Electronic Billing Service and the One Electronic Invoicing Service, Bank One’s new services expand its collection product offerings while continuing to support its strategy of enabling customers to migrate from paper to electronic-based transactions.

By offering both B2C and B2B options, Bank One can provide its customers the optimal electronic presentment and payment solution based on a company’s unique billing and collection needs. Also, both services enable Bank One’s large corporate, middle market and net marketplace customers to experience even greater productivity gains and cost efficiencies in collecting and processing payments while enhancing their emerging e-commerce initiatives.

“In today’s emerging e-commerce environment, we feel it is critical to support our customers’ transactions from end-to-end, for the entire payment or procurement cycle, whether it is initiated by paper, or on-line,” says Bob Wilson, senior vice president of strategy for the bank’s Treasury Management Services. “Adding these two innovative, high quality services to our product portfolio expands the value we bring to our customers in meeting their needs, no matter how far along they are in implementing an e-commerce strategy.”

The One(R) Electronic Billing Service, which supports business-to-consumer transactions, is powered by Billserv, Inc., the leading Internet bill presentment and payment Outsourced Solution Provider. This service enables the bank’s commercial customers to present bills and other documents to consumers on-line through multi-channel distribution, receive payments electronically, decrease the cost of bill and payment processing, support web-based interactive customer service and distribute cross-sell marketing messages.

The One(R) Electronic Invoicing Service, which supports business-to- business transactions, is powered by BCE Emergis, a premier provider of B2B e-commerce services and exchanges. This service enables commercial customers to present invoices online, reduce the float time between sale and payment and decrease the cost of the invoicing, payment processing and customer service delivery. In addition, it enables their customers’ trading partners to view invoices over the internet, dispute entire invoices, sections or line items, download invoice and disbursement information, and interact with their supplier’s customer service and accounts receivable departments.

Bank One Corporation (NYSE: ONE) is the fifth-largest bank holding company in the U.S., with assets of more than $265 billion. Bank One offers a full range of financial services to large corporate and middle market commercial customers and retail consumers. It is the largest Visa credit card issuer, the third largest bank lender to small businesses, and one of the top 25 managers of mutual funds. A leader in the retail market, Bank One operates more than 1,700 banking centers and a nationwide network of ATM’s. Bank One can be found on the Internet at [][1].

Billserv, Inc. (Nasdaq: BLLS) is the leading electronic bill presentment and payment Outsourced Solution Provider that provides billers with a cost- effective outsourcing solution for presenting bills to consumers for payment on the Internet. Billserv, Inc. serves an intermediary role between billers and bill aggregators by consolidating customer billing information from multiple billers, and then securely delivering it to aggregators. Billserv, Inc. has five product offerings: eServSM, Internet billing clearinghouse services for EBPP; ePublishingSM, electronic publishing services for online statement delivery; eCareSM, an interactive customer care center operation, eConsultingSM, professional consulting services for billing organizations offering in-house bill presentment, and ASP Gateway Services, a service that provides billers who already have an in-house EBPP system with limited distribution points, a solution to deliver e-bills to virtually any distribution point across the Internet. Billserv, Inc. also owns, the first Internet portal dedicated to EBPP, where consumers can pay all their bills electronically.

BCE Emergis (TSE: IFM), a premier B2B e-commerce infrastructure provider, strategically focusing on market leadership in the transaction-intensive eHealth and financial services sectors. By layering technologically advanced e-commerce services on existing Internet-based platforms, Emergis offers its customers increasing value in their e-commerce adoption and ever-increasing levels of sophisticated services. These scalable solutions electronically transform business processes, such as buying, selling, invoicing and payment, and enable companies to succeed in the web-centric, cost-driven, and highly competitive global Internet economy. BCE Emergis’ customers include leading North American banks and insurance companies. The Company’s shares are included in the TSE 100 composite index.



Traffic Data

Broad business method patents continue to stifle competition and hamper the growth of the Internet. Yesterday, NY-based Jupiter Media Metrix drove rival PC Data out-of-business following settlement over a patent-infringement suit. The patent involves the method used to gather data on Internet users. Issuers marketing credit cards on the Internet rely on the traffic measurements to determine ad placements. Following the PC Data settlement, Jupiter filed patent infringement lawsuits against Nielsen NetRatings and Paris-based NetValue. The action also comes on the heels of the discovery of wide variations in the audience measurement data reported by Jupiter Media Metrix. Early this month, DoubleClick and comScore Networks discovered that, based on server logs, actual traffic to most Web sites is substantially higher than has been reported by syndicated ratings services such as Jupiter Media Metrix. For example, Yahoo’s December server log showed 181 million unique worldwide visitors while Media Metrix reported 89.4 million unique worldwide visitors. DoubleClick and comScore Networks introduced the new ‘netScore’ service which it says is more accurate. Meanwhile, NetValue, reported yesterday it has purchased certain assets of PC Data Online, including access to PC Data’s U.S. clients, international affiliates and the possibility of converting PC Data North American panelists to NetValue’s proprietary metering and analysis technology. NetValue also announced an agreement with comScore Networks to offer to service PC Data’s former clients with its new ‘Netscore’ product.


Smartrip Cards

The Washington (DC) Metropolitan Area Transit Authority said this morning it has now issued more than 150,000 contactless smart cards for its mass transportation system. The ‘SmarTrip’ card was the first contactless smart card to be introduced by a major mass transit system in the US. The card was first introduced in the summer of 1999. In September 2000, the WMATA broke the 100,000 card milestone. The ‘SmarTrip’ technology was developed by Cubic Transportation Systems. Cubic also developed WMATA’s magnetic stripe ticketing system which enables Metro riders to use one card for trains and park-and-ride facilities. Cubic also supplied the nation’s second smart card-based mass transit fare collection system, which was rolled out by the Chicago Transit Authority in August last year. Cubic has installed other intelligent fare collection systems in more than 40 major markets in five continents. (CF Library 9/22/00; 9/12/00; 5/19/99)



NYCE Corporation has formed a new Emerging Network Payments group. The new unit will focus exclusively on extending the company’s real-time transaction processing capabilities beyond its current ATM and on-line debit POS core services. Previous extensions of NYCE’s capabilities, from the introduction of on-line debit POS in the `80s to last year’s launch of ‘SafeDebit’, leveraged the Network’s infrastructure and real-time access to DDA accounts for the extension of PIN-secured transactions. Current and future NYCE initiatives pursue the development of “PIN-less” transactions.


EBPP Study

The finance/banking industry has the highest concentration of electronic bill presentment and payment practitioners, according to a new report by Xplor International, the worldwide electronic document systems association. Released this week, Xplor’s 2000 – 2001 Technology Directions Survey shows that 48 percent of Xplor International members in the finance/banking industry have an active EBPP program in place. The insurance, manufacturing, and government industries round out the top four users of EBPP.

James Shand, EDP, chairman of the board of Xplor International, said, “Xplor members are closely aligned with the technology of electronic bill presentment and payment, since it’s essentially a document technology. Nearly one-third of Xplor member companies are involved in EBPP now and 27 percent more are investigating EBPP.”

Xplor’s Technology Directions Survey offers a glimpse into the minds of today’s top document professionals from around the world, and provides Xplor members and the document industry with a status report on current and future document technology trends. The report surveys both user companies and service providers that are members of Xplor, providing a benchmark for organizations to compare their perceptions of the industry against those of other strategic document specialists. The survey covers trends and organizational decisions relating to e-business, digital printing, outsourcing, effects of the Internet on printing, top current and future investments, document imaging, and more.

This is the second consecutive year the survey indicated the finance/banking industry has the highest number of EBPP practitioners. In 1999, 45 percent of Xplor International member companies in finance/banking already had an EBPP program or pilot program in place.

The survey also showed substantial increases in EBPP adoption rates for the insurance industry, when compared to the 1999 survey. The survey shows that 28 percent of insurance companies have a pilot or full EBPP program in place, compared to only 8 percent last year. Thirty-eight percent of Xplor members in the insurance industry are investigating EBPP, a sign of strong continuing market growth.

To order a copy of Xplor International’s 2000 – 2001 Technology Directions Survey, call the association’s headquarters at +1-310-791-9521, or e-mail Xplor International ([][1]) members receive a copy as an exclusive benefit of membership.

Other Survey Highlights:

— There is no consensus among Xplor International members about the effects of EBPP on printing. Nearly equal proportions expect EBPP to increase, decrease, or have no affect at all on the need for printing.

— More than one-half of Xplor International members place customer contact among the top three benefits their organizations realize from web participation.

— Seventy-five percent of Xplor member companies handle e-commerce transactions internally and one-quarter use contractors for EBPP activities.

— Xplor International members expect most new means of creating, accessing, printing, and distributing documents to increase the demand for printing.

About Xplor International

Xplor International is the worldwide association representing more than 5,000 members in more than 2,500 companies which develop and use the technology of the US $125-billion document systems industry. For more information on Xplor International, call +1-310-791-9521, visit [][2], or e-mail



ImageCard Laminator

Datacard Group introduced the ImageCard HiFX laminator, a high-speed system that applies polyester overlays to photo IDs and other plastic cards that require protection from everyday wear and tear.

The ImageCard HiFX laminator gives users the option of applying a clear or holographic polyester overlay to photo IDs and other cards in a fast, single-pass operation. The protective, scratch- and chemical-resistant overlays help extend the life of cards by shielding them from everyday exposure to a variety of threats, such as abrasions caused by swipe readers. Overlays may be applied to one or both sides of a card.

The modular design of the laminator allows Datacard customers to easily integrate it with an existing Datacard ImageCard(R) HiFX(TM) printer — or configure it as a stand-alone unit. The system offers adjustable temperature settings for use with various card stocks. Clear and highly intuitive LED message indicators ensure easy operation.

“Scratches, abrasions and chemical attacks can deteriorate the printed elements of a card,” said Bob Bergquist, HiFX product manager for Datacard. “As a result, card issuers often re-issue cards prematurely, which isn’t cost-effective. Or cardholders end up using inferior cards, which compromises security.

“The new HiFX laminator provides Datacard customers with a strong line of defense against these potential problems,” Bergquist said. “It’s a convenient, cost-effective solution for organizations looking to control costs and preserve the effectiveness of their card programs.”

Datacard Group is a world leader in innovative plastic card personalization and identity management solutions. The company provides its customers with integrated systems for a variety of financial, identification and healthcare applications. A diverse solutions portfolio features a broad range of card-related products and services, including the world’s best-selling card personalization and printing systems. Datacard Group also offers card lifecycle management software, smart card personalization systems and applications, custom solution development and products designed to enhance card issuing operations. Datacard Corporation, doing business as Datacard Group, is privately held and based in Minnetonka, Minn. Datacard Group serves customers in more than 200 countries and provides sales and service in more than 120 countries.


Publicard 4Q/00

PubliCARD yesterday reported fourth quarter revenues of $1.3 million and a loss of $4.2 million. For 4Q/99 the company had $1.1 million in revenues and an $8.2 million loss. The increase reflects growth in sales of smart card readers. For the year, the loss from continuing operations was $19.7 million compared with $16.7 million in 1999. For complete details on PubliCARD’s past and present performance visit CardData ().


Card Espionage

The FBI arrested a New York catering company employee last week for trying to sell confidential MasterCard documents to VISA. The employee, who worked as a waiter in MasterCard’s corporate dining room, reportedly attempted to sell documents regarding a major alliance between Disney and MasterCard to VISA. The temporary employee hired by the catering firm Flik International, offered to sell VISA the confidential MasterCard document for $100,000 and also offered additional information from the years 1999 and 2000. VISA reported the theft to the FBI which in turn used an undercover agent posing as a VISA executive to negotiate the purchase of the stolen materials. Fausto Estrada was charged with crimes under the 1996 Economic Espionage Act.


Omni 3300 & Canada

VeriFone, a division of Hewlett-Packard Company, and worldwide leader in electronic payment solutions, today announced that e-Smart Direct Services Inc., (Toronto, Ontario), is the first network processor in Canada to install VeriFone Omni 3300 multi-application terminals. e-Smart began installing the Omni 3300 in merchant locations throughout Canada earlier this month to support debit and credit e-payment applications. The company also intends to support value-added applications, including chip-based loyalty and couponing, in the next quarter.

e-Smart, one of the 89 members of Canada’s Interac Direct Payment debit network, provides point of sale (POS) services for all types of Canadian retailers and commercial activities. The company joined VeriFone’s growing global Developer Forum and used VeriFone’s Verix Developer Toolkit to develop a payment application for VeriFone’s Verix platform.

e-Smart elected to use VeriFone SC 550 smart card readers, which meet Canadian standards for PIN-entry, to support smart card, debit and other PIN-based transactions. In addition, e-Smart has also purchased VeriFone’s VeriTalk Lite terminal management software to support the rapid and economical deployment of applications in a multi-application environment. VeriTalk Lite is a download engine for small- to medium-sized processors that enables fast deployment of new payment, payment-related and value-added applications by supporting simultaneous application downloads, thereby lowering the cost per download in a multi-application environment.

“Being a smaller, more nimble organization allows us to quickly evolve our offering to meet the changing needs of Canadian merchants, and to embrace virtually any new technology or standard that comes along. With our new VeriFone solution, we can add applications for our merchants very quickly, and can be assured that the solution is Interac-compliant and backed by VeriFone’s reputation for quality and reliability,” said Mischa Weisz, president and CEO of e-Smart Direct Services Inc. “We plan to help Canadian merchants by exploiting every possible feature of the Omni 3300, especially its ability to support multiple applications that can add significant value to a merchant’s point of sale.”

VeriFone’s Omni 3300 terminal is designed to handle the performance demands of e-payment. The Omni 3300 with VeriFone’s Verix operating platform, features true application separation at both the hardware and software level. The Omni 3300 features a triple-track magnetic-stripe reader, a 32-bit processor with a 14.4K modem, 3 MB of memory and a 12.5 lines-per-second integrated printer.

“VeriFone is thrilled that our Verix-based family of payment terminals is being introduced to the Canadian marketplace by e-Smart,” said Bud Waller, vice president and general manager of North American sales and marketing at VeriFone. “We’ve seen strong growth in our Developer Forum around the globe, indicating that our Omni 3300 family of terminals, featuring the open architecture of the Verix operating environment, is gaining momentum as the platform of choice for developers looking to provide processors and merchants worldwide with applications that maximize the value of their point of sale.”

About e-Smart Direct Services

e-Smart Direct Services Inc. is a leader in fully integrated processing services for Retailers, Financial Institutions and Independent Service Operators. As a Direct Member of the Interac(R) Association, e-Smart Direct Services processes debit and credit transactions originating from Automated Teller Machines (ATM) and Point of Sale (POS) devices. e-Smart’s wholesale processing rates as well as it’s ability to design, program and implement custom retail applications such as “convenience fees” (surcharging) and loyalty programs that have attracted retailers throughout Canada to this alternative e-payment solution.

About VeriFone

VeriFone ([][1]), a division of Hewlett-Packard Company, is the leading global provider of secure electronic payment solutions for financial institutions, merchants and consumers. The division has shipped more than nine million electronic-payment systems, which are used in more than 100 countries.

About HP

Hewlett-Packard Company — a leading global provider of computing and imaging solutions and services — is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that’s always on. HP has 88,500 employees worldwide and had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found on the World Wide Web at [][2].




SCM Microsystems, a leading provider of solutions that open the Digital World, announced at the CeBit trade show in Hannover that it will develop and deliver a universal secure smart card reader for consumers in Europe, based on FINREAD specifications to be released in the first part of 2001. FINREAD is a consortium of European banks whose goal it is to create a secure online payment system based on smart cards that is affordable and easy to use, deploy and upgrade.

Through the European Committee for Standardisation (CEN), FINREAD is developing a series of specifications for intelligent smart card readers intended to support electronic commerce, home banking and digital signature applications. SCM’s secure readers will be the first to provide support for multiple applications, including credit card, e-purse, loyalty and secure home banking. Readers are expected to be available for deployment in the second half of 2001 with first prototype in June. They will be offered to the market via various distribution channels throughout Europe.

Members of the FINREAD Consortium include Groupement des Cartes Bancaires “CB” (France), Visa EU (United Kingdom), Europay International (Belgium), Banksys (Belgium), Interpay Nederland (the Netherlands), SIZ (German Savings Banks Financial Group, Germany) and Ingenico (France).

SCM Microsystems has a long track record of developing smart card readers and terminals for security applications. SCM’s forthcoming generation of FINREAD compliant readers will include strong cryptographic mechanisms that will authenticate smart card users, providing a high level of security to consumers, as well as non-repudiation protection for merchants. In addition, the readers will rely on an open Java-based application interface and a K-Java Virtual Machine to enable total interoperability of applications across different vendors, along with secure download of applets from a trusted server.

The adoption of FINREAD specifications is a key milestone for the smart card reader industry,” said Robert Schneider, Chief Executive Officer at SCM Microsystems. “By defining an open standard, FINREAD will dramatically accelerate the deployment of smart card readers to support financial transactions of all sorts. Without interoperability between readers, cards and applications, this technology is simply too expensive. With these common standards and with compelling applications from cash downloads to movie viewing, SCM’s potential for reader deployment is tremendous.”

European banks will benefit from having standardized and secure smart card readers available for both financial and non-financial transactions. This will allow them to deploy new applications across Europe, quickly and affordably.

Other industries to which SCM is delivering security products also see the adoption of FINREAD standards as an important development as they work to create and deploy new services for customers. For example, forthcoming FINREAD specifications for embedded security will enable digital television broadcasters to offer viewers the ability to pay for premium content through a FINREAD compliant remote control, and allow cell phone users to purchase goods and services using a smart card. SCM will work with its OEM customers to the hardware and software components necessary to enable any device to be FINREAD compliant.

FINREAD specifications will be compliant with other banking standards, such as Secure Electronic Transaction (SET) and the Europay Mastercard Visa (EMV) for smart cards. It is expected that the FINREAD smart card reader initiative will lead to a global standard for secure banking over open networks.

About SCM Microsystems

SCM Microsystems is a leading supplier of solutions that open the Digital World by enabling people to conveniently access digital content and services. SCM’s advanced silicon solutions, hardware and software enable secure exchange of electronic information for digital applications from e-commerce to broadband content delivery by providing controlled access points to platforms such as PCs, digital cameras and digital television set-top boxes. Known as a premier supplier to OEM companies around the world, SCM also serves the retail market through its Dazzle, Microtech and FAST product brands. Global headquarters are in Fremont, Calif., with European headquarters in Pfaffenhofen, Germany. For additional information, visit the SCM Microsystems Website at [][1].



P2P Fees

Nearly three-fifths of consumers expect their financial institutions to offer electronic person-to-person payment services, and those services with real-time capabilities can command premium pricing. These findings – included among the results of proprietary consumer research conducted in January 2001 by NYCE Corporation and Dove Consulting Group, Inc.- suggest P2P is a key product with which financial institutions can build customer loyalty and create new streams of revenue.

According to Neil Axe, Director of Emerging Network Payments at NYCE, 57 percent of respondents to the nationwide web-based survey indicated it was important that their financial institutions support a P2P service. “This clearly represents an area in which financial institutions can position themselves as progressive, while at the same time potentially bolstering their customer recruitment and retention efforts,” said Axe. “Furthermore, as customers suggest that they are willing to pay more for immediate transfers of and access to funds, it’s also an area in which these institutions can generate significant fee-based revenue.”

Axe said the price-related findings underscore the public’s perceived value of P2P capabilities. Forty-four percent of survey respondents indicated that $5.00 or more per transaction, on average, is a “fair” price to pay for being able to move and access funds in real time. In addition, 61 percent of respondents said it is “very important” for money to be accessible immediately after it is sent. According to the survey the preferred method for initiating P2P payments is a personal computer (PC) with Internet access. Fifty-six percent of consumers said they would be interested in performing these types of transactions from a PC, 38 percent at an ATM and 18 percent using a personal digital assistant or other mobile device. (Respondents could select more than one preferred device.)

Another valuable finding for financial institutions, noted Axe, is that consumers strongly prefer to use a P2P service provided by their insured depository institution rather than Internet-based providers. Only 9 percent of survey resondents agreed with the statement “I trust Internet-only providers more than my bank for this service,” versus 60 percent who disagreed. “Consumers tend to view their financial institution as a familiar, trusted entity with a `real-world’ presence. These positive associations can give financial institutions a `lift’ in the on-line world in such a way that consumers feel more secure performing transactions at their institutions’ websites than at the sites of other providers,” said Axe. “Financial institutions also have an advantage in that they are backed by a precise and long-standing regulatory structure that reaps consumer confidence.”

Research Methodology

The NYCE research into real-time P2P payments resulted from a Web-based survey of 2,665 consumers in the United States. Respondents first completed a P2P demo, then answered a series of questions regarding the demo, as well as their payment payment preferences, behaviors and attitudes. The survey was conducted from January 2 through 10, 2001, by Dove Consulting Group, Inc., which worked with NYCE to create the study instrument.


NYCE Corporation is one of the leading electronic payments companies in the United States, providing financial institutions and retailers with shared network services for automated teller machines (ATMs), on-line debit point-of-sale (POS) and emerging real-time payment solutions. The company also provides processing services that support ATM management and monitoring services, as well as debit card issuance and authorization solutions. Through a long-standing commitment to product innovation, NYCE has established itself as a front-runner in real-time person-to-person (P2P) payment services and PIN-secured Internet debit payment solutions. Comprising 2,400 financial institution and retail ATM deployer participants, the NYCE Network processes nearly 93 million transactions per month while servicing more than 47 million cardholders through 44,000 NYCE-branded ATMs and 250,000 POS locations. NYCE Corporation is headquartered in Woodcliff Lake, NJ, and can be found online at [][1]. (Statistics as of 3/15/01.)