SmartXA Card

Philips Semiconductors, a division of Royal Philips Electronics, announced SmartXA, a second generation of its high-end smart card microcontrollers. SmartXA is designed to power future developments in mobile communications and secure network access. The new 16-bit architecture has been optimised to support multiple applications. With its high levels of security and support for public key cryptography it also provides a secure platform for banking and government applications.

In 2001, telecom industry leaders will begin trials of high-end GSM Java cards and Universal IC cards (UICCs are comparable to today’s SIM cards in GSM networks) for third generation mobile phones. SmartXA 2nd generation is the ideal choice for future mobile communications because it is capable of supporting all applications delivered across a Universal Mobile Telecommunication System (UMTS) network, such as an electronic purse, a national electronic ID, RSA-based digital signatures, and modules for secured WAP operations.

“With SmartXA 2nd generation, Philips Semiconductors is leading the way for a new world of interactive mobile applications, creating opportunities for smart card users to transact a wide range of on-line business in complete security, ” said Karsten Ottenberg, General Manager of the Business Line Identification, Philips Semiconductors.

Key Features Of The New SmartXA 2nd Generation Family

— High performance through a true 16-bit architecture, enabling the use of a wide range of interpreter-based languages and open software platforms, including Java, Windows for Smart Cards and Multos, and to support multiple application use of smart cards

— Enhanced memory configuration with up to 64 K EEPROM, 128 K ROM and 5 K RAM

— Low power consumption (required in mobile applications)

— USB interface, enabling easy access to smart card data and applications from personal computers

— Fast and flexible Cyclic Redundancy Code (CRC) Calculation Unit to support high security data integrity

— Comprehensive security features including an enhanced on-chip hardware firewall which provides separation and integrity of data and applications, a true random number generator , a high-speed triple DES coprocessor, and a FameX public key cryptography co-processor

Philips Semiconductors SmartXA 2nd generation is part of an extended family concept, offering a complete product range to address the different requirements of future smart card applications. With the advent of new, even more advanced silicon process technologies like 0.18 um and below, Philips Semiconductors as a recognized technology leader will be able to implement new smart card IC architectures efficiently. A direct result is that, to broaden its smart card IC portfolio further to an extended 8-, 16- and 32-bit concept, Philips Semiconductors is also working on new 32-bit architectures, in parallel to the design of its next silicon process technology based on CMOS 0.18 um.

About Philips Semiconductors

Philips Semiconductors, which has annual revenues of approximately US$5 billion, designs and manufactures semiconductors and silicon systems platforms. Philips Semiconductors is spearheading the emerging field of systems on silicon solutions with the innovative Nexperia(TM) platform and VLSI Velocity(TM) tool set. The company’s Sea-of-IP design methodology allows plug and play intellectual property blocks for easily customizable products. The company is a leader in communications, consumer, PC peripherals and automotive semiconductors, which are key applications for convergence in end-user products. Philips Semiconductors is headquartered in Eindhoven, The Netherlands, and has operations throughout the world. For more information: [http://www.philips.semiconductors.com][1].

[1]: http://www.philips.semiconductors.com/

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Phone Debits

NACHA has given the green light for consumer electronic payments by telephone. The Electronic Payments Association has approved an amendment to the NACHA Operating Rules, effective March 16, 2001, that permits consumers to authorize over the telephone electronic debits to their accounts to pay for goods or services. Operating rules for the ACH Network currently require debit authorizations to be in writing, and signed or similarly authenticated. While useful for recurring bill payments for mortgages, insurance premiums, utilities and other recurring payments, a written authorization can be cumbersome for one-time, non-recurring payments. Under the new rules, verbal authorizations take the place of written authorizations for these non-recurring payments. The authorization is either tape-recorded or a written confirmation notice is sent to the consumer. A separate authorization is required for each debit transaction, the originating company is required to keep a record of the authorization for two years, and consumers have the right to challenge debits they believe to be unauthorized. Significantly, the rules specifically prohibit companies that are cold-calling consumers from using this payment method for any resulting sales.

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Gemplus Acquires Celo

Celo Communications, a global provider of PKI solutions for digital signatures, access control and network communications, announced that they are being acquired by Gemplus, the world’s number one provider of smart card based solutions for security, wireless and e-business applications. Celo and Gemplus will combine forces to speed up the development of integrated PKI and smart card solutions for the IT security market. These solutions include applications in smart card based computing security and in electronic commerce, targeting customers in financial and insurance institutions, telecommunications, government, and business-to-business corporations.

The Celo product suite, CeloCom, is fully based on open security standards and offers open platform solutions that easily integrate with legacy systems. Gemplus worldwide smart card issuing capabilities in combination with Celo’s application integration capabilities for PKI solutions reflects Gemplus’ strategic intent to evolve as a customer oriented provider of integrated access and transaction solutions. Gemplus has acquired full ownership of Celo.

“Celo’s sharp expertise in open PKI platforms combined with Gemplus’ global portfolio of clients in the wireless and banking sectors will help accelerate the deployment of this key technology,” said Gilles Michel, Gemplus’ Senior VP, Manager Director of Strategy, Merger & Acquisitions. “Celo will be an important expansion of Gemplus’ PKI solutions suite, enabling full transaction security from the smart card all the way to the legacy system.”

“We’re very pleased and excited to join forces with a world leading company like Gemplus, for a united effort to better address the need for open PKI based smart card solutions,” said Sven Hammar, CEO of Celo Communications. “Celo will now have access to the Gemplus worldwide sales and partner organization enabling enhanced access to the marketplace, making this acquisition a logical step in the ongoing consolidation of the PKI market.”

Both Celo and Gemplus have strong partnerships among key PKI vendors and initiatives within the industry (including Baltimore, RSA, Xcert, Valicert, VeriSign, Digital Signature Trust, GlobalSign, WiseKey, and Identrus), systems integrators (HP, IBM) and other technology providers (Microsoft). All will greatly benefit from this new value-added proposition based on fully PKI enabled smart card solutions.

About Gemplus

Gemplus is the world’s number one provider of smart card based solutions for security, wireless and e-business applications. Offering consulting services, design, software, hardware, personalization and full implementation, Gemplus works with its customers around the world to deliver comprehensive, integrated and tailor-made smart card based systems. The Group’s customers use Gemplus memory and microprocessor smart cards, smart contactless cards, electronic tags, smart objects and magnetic stripe cards to simplify and secure a wide range of applications. From Web based and mobile commerce to financial transactions, loyalty, transportation, education healthcare, identity, pay TV and physical and logical access control, Gemplus provides intelligent end-to-end solutions that bring security, convenience and ease-of-use to millions of people worldwide. Founded in 1988, Gemplus had sales of over 767 millions of Euro ($US 817 millions) in 1999, and employs almost 6,300 people in 17 manufacturing facilities, 7 R&D centers and 44 sales and marketing offices located in more than 37 countries. For more information visit [www.gemplus.com][1].

About Celo

Celo Communications is a global provider of security solutions based on public-key infrastructure (PKI) technology, the industry standard for conducting secure Internet transactions. Celo has outstanding experience within Internet security and possesses strong expertise in the fields of digital signature technology, PKI based access control and network security. Celo’s security solutions are fully based on open security standards and integrate easily with legacy systems, providing important time-to-market advantages for its customers. Celo Communications has customers all over the world, including major European and US banks, credit card companies, insurance companies, government organizations, military networks, online gambling companies and Internet service providers.

Celo has strategic partnerships with Baltimore Technologies, Digital Signature Trust, RSA Security, Securify, VeriSign, WiseKey and Xcert, to name few. Incorporated in October 1997, Celo Communications has offices in the U.S., Ireland, Sweden, the Netherlands and Germany. For more information, visit [www.celocom.com][2].

[1]: http://www.gemplus.com/
[2]: http://www.celocom.com/

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Unbanked & Uncarded

Though hard to believe in today’s technologically-advanced society, many consumers — approximately 15 percent of U.S. households — do not own a checking account. Why not? How do these consumers cash their checks or pay their bills?

These questions and more are addressed in the latest issue of Economic Quarterly, a publication produced by the Federal Reserve Bank of Richmond. In their article entitled “Means of Payment, the Unbanked, and EFT ’99,” Fed economists Edward S. Prescott and Daniel D. Tatar, uncover the reasons that many low-income individuals forego checking account ownership. Cost is the primary factor. Rather than paying account fees, many cash their checks for free at banks and grocery stores and pay bills with cash or low-cost money orders. Surprisingly, few regularly use costly check-cashing outlets.

The Economic Quarterly is a free publication containing economic analysis pertinent to Federal Reserve monetary and banking policy. For copies or more information, contact the Federal Reserve Bank of Richmond’s Public Affairs office at 804-697-8108 or visit their Web site at [http://www.rich.frb.org][1].

Federal Reserve Bank of Richmond news releases can be found at [http://www.rich.frb.org][2].

[1]: http://www.rich.frb.org/
[2]: http://www.rich.frb.org/

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eCredible

CA-based CrediView introduced the first online anti-fraud solution to provide e-merchants with a 100% guarantee against chargebacks. With CrediView’s ‘eCredible Guaranteed’ service, an e-merchant pays a negotiated per transaction fee depending on the merchant’s volume and history. On a monthly basis, CrediView reimburses e-merchants for any chargebacks arising from fraudulent transactions that were authorized using the ‘eCredible Guaranteed’ service. The ‘eCredible Guard’ service is provided on a per transaction or fixed monthly fee, providing the merchant with a calculated risk score but without a guarantee. The merchant then has to decide whether or not to accept or reject the transaction based on its own risk tolerance. CrediView says independent tests shows the ‘eCredible Guard’ service has a fraud detection accuracy rate of about 90%. CrediView’s ‘eCredible’ patterns transactions, not people, and does not rely on personal histories and account information to precisely pinpoint fraud. ‘eCredible’ utilizes CrediView’s proprietary transaction patterning technology to analyze online transaction patterns consistent with fraud, rather than a purchaser’s personal information from credit card databases, to accurately determine fraud risk without sacrificing customer privacy.

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3Q Portfolio Results

Bank credit card portfolio financials are beginning to stream into CardData and generally show an uptick in receivables during the third quarter. UT-based First Security reported 3Q/00 receivables of $232,570,024, up slightly from 2Q/00. However, First Security’s active accounts declined slightly to 125,400. Meanwhile, MS-based TrustMark National Bank reported $61,696,149 in receivables among 54,202 active accounts. LA-based Whitney National Bank reported $23,417,842 in receivables and 17,726 active accounts. The 3Q/00 CardData ([www.carddata.com][1]) portfolio survey will cover approximately 350 of the largest US issuers, representing 98% of the market.

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

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LiquidCredit Deal

Fair, Isaac and Company, Inc. announced that direct online automotive provider CarsDirect.com has signed a multi-year agreement to incorporate Fair, Isaac’s LiquidCredit broker engine into its technology platform. CarsDirect.com will leverage LiquidCredit’s decision technology to instantly evaluate customers’ applications for financing and match those scored applications with lending partner criteria — presenting the right financing options to on-line customers within just seconds.

“Using LiquidCredit will not only help us pre-qualify more auto shoppers for the appropriate financing package more quickly, it will also help us turn these shoppers into buyers by offering them real-time purchasing power,” said Gene Schutt, CEO of CarsDirect.com’s CD1 Financial.com unit. “Only LiquidCredit offered us the combination of technologies we need for real-time access to the best credit origination decisions.”

Forrester Research estimates that by 2005 the number of U.S. households that will buy cars online will reach 1.1 million households spending a total of $33 billion in car sales.

“CarsDirect.com is a great example of how Fair, Isaac’s decision technology can boost leading and emerging e-businesses,” said Raffi Kassarjian, General Manager of Fair, Isaac’s LiquidCredit business unit. “LiquidCredit delivers the infrastructure and intelligence that optimizes CarsDirect.com’s Web-based automotive financing application process.”

LiquidCredit offers a Web-based decision engine, credit reporting agency interface, associated transaction management tools and the ability for businesses to design their own decision criteria and strategies, all delivered through a Web-centric service. The result is the right credit offer to the right customer at the right time.

Using the speed and cost savings of the netsourced (ASP) model, LiquidCredit provides clients with Fair, Isaac’s “gold standard” analytics and decision technology. In addition to LiquidCredit broker engine, Fair, Isaac also offers two other versions of LiquidCredit: decision engine for e-tailers and financial service providers with a Web presence, and application engine for financial service providers.

About Fair, Isaac

Fair, Isaac is a global provider of customer analytics and decision technology. Widely recognized for its pioneering work in credit scoring, Fair, Isaac revolutionized the way lending decisions are made. Today the company helps clients in multiple industries increase the value of customer relationships. Fair, Isaac has made the Forbes list of the top 200 U.S. small companies seven times in the last eight years, and was named by InformationWeek as one of the top 50 application service providers. Headquartered in San Rafael, California, Fair, Isaac has 20 offices worldwide.

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NPC Signs Safeway

National Processing Company announced the signing of a multi-year agreement to provide authorization and settlement services for Safeway Inc., one of the largest food and drug retailers in North America.

“We are delighted that Safeway, a preeminent retailer and market leader, has entrusted its business to NPC and we look forward to a long and mutually beneficial relationship,” said Thomas A. Wimsett president and chief executive officer. “Safeway has established itself as an industry leader by staying focused on providing excellent customer service, superior quality and convenient locations.”

About Safeway

Safeway Inc. (NYSE: SWY) is a Fortune 50 company and one of the largest food and drug retailers in North America based on sales. The company operates 1,680 stores in the United States and Canada and has annualized sales exceeding $31 billion. Additional information regarding Safeway, Inc. can be obtained at [http://www.safeway.com][1] .

About NPC

NPC is a leading provider of merchant credit card processing. An 87 percent owned subsidiary of National City Corporation (NYSE: NCC) ( [http://www.national-city.com][2] ), a Cleveland based $85 billion financial holding company, NPC supports approximately 500,000 merchant locations, representing one out of every six Visa(R) and MasterCard(R) transactions processed nationally. NPC’s card processing solutions offer superior levels of service and performance. NPC assists merchants to compete and provide high-quality service to their customers through our world-class people, technology and service. Additional information regarding NPC can be obtained at [http://www.npc.net][3] .

[1]: http://www.safeway.com/
[2]: http://www.national-city.com/
[3]: http://www.npc.net/

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Intuit PayPal

E-finance leader Intuit Inc. and X.com Corporation ([www.x.com][1]), the largest provider of Web-based payment services, today announced a five- year agreement which makes X.com the exclusive provider of Internet-based payment services for selected U.S. Intuit products. Under the agreement, customers using selected Intuit small business and personal finance products will be able to use X.com’s leading Internet-based payment service PayPal. In addition, Intuit’s products will be the exclusive small business and personal financial management products on the X.com Web site.

Intuit and X.com expect to inaugurate Internet-based payment capabilities in Intuit products within the next several months. X.com services will augment Intuit’s existing online banking and related bill payment functionality and services, which are not affected by this agreement. Additional terms of the agreement and details of how X.com Internet-based payment services will be used in Intuit’s products are not being disclosed.

“Teaming with Intuit will allow X.com to provide its Internet payment solution to potentially millions of new customers — people who have already come to rely on Intuit for the best financial features and services available,” said Reid Hoffman, X.com’s senior vice president for business development. “Given Intuit’s success in helping people and businesses apply the power of modern technology to everyday financial activities, we look forward to broad adoption of our Internet-based payment service for both Internet-based and non-Internet-based transactions.”

X.com’s Internet-based payment service uses the speed and efficiency of the Internet to enable instant and secure transmissions for online payments — person-to-person, consumer-to-business, and business-to-business. “As a pioneer in Internet-based payments, X.com shares Intuit’s vision of using the Internet to revolutionize how people and small businesses manage their financial lives,” said Raymond Stern, Intuit’s senior vice president of corporate strategy and marketing. “Combining the efforts of these two industry leaders offers exciting opportunities to deliver on this vision — making online financial transactions easier, faster and more ubiquitous.”

About Intuit

Intuit Inc. is the leader in e-finance, including financial software and Web-based financial services for consumers and small businesses. Intuit develops and markets QuickBooks(R), the most popular small business accounting software; Quicken(R), the leading personal finance software; and TurboTax(R), the best-selling tax preparation software.

An innovator in delivering Web-based financial tools, Intuit is the leading provider of online tax preparation and filing and online mortgages. Intuit is also breaking new ground as a leader in online bill presentment and payment, and in the delivery of its QuickBooks Internet Gateway platform of connected e-services for small businesses.

Intuit’s Quicken.com(TM) Web site ([http://www.quicken.com][2]) is a leading financial site, offering a comprehensive set of financial news, information and tools, including insurance, mortgage, investment and tax preparation services. Intuit’s products and services enable individuals, small businesses and financial professionals to better manage their financial lives and businesses.

About X.com

X.com provides PayPal, which provides instant and secure online payment transmissions, integrated with consumer and business financial services. With a customer base of nearly 4 million, X.com is the world’s first and largest Web-based payment network, and the #1 financial site on the Internet, according to PC Data Online (Sept. 30, 2000). X.com’s PayPal is the preferred payment service for online auctions and online community and group Web sites. X.com’s PayPal service, free to consumers, can be used from PCs or Web-enabled mobile phones. Founded in March 1999 by Elon Musk, X.com is a privately held company headquartered in Palo Alto, California. X.com was recently named one of the 50 Most Important Private Companies in the World by Red Herring, one of the Top 25 New Companies by Fortune Small Business, and a Forbes Favorite Website in the magazine’s latest “Best of the Web” issue.

[1]: http://www.x.com/
[2]: http://www.quicken.com/

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Gold ChexCard

Dallas-based iDial Networks announced this morning it plans to launch the ‘iDial Gold ChexCard’ on November 1st. The rechargeable, secured POS/ATM debit/credit card will be targeted at unbanked Americans. It will also offer a full range of financial services as well as prepaid telecommunications services through iDial Networks and membership into a wide range of prepaid consumer discount buying programs including pharmacy, vision, dental, legal and travel. The ‘iDial Gold ChexCard’ will be sold through conventional retailers such as check cashing stores, online businesses, and niche markets and will be available immediately, over-the-counter, to the consumer with no pre-approval process, no application form or fee and no waiting period.

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Wireless Marketing

SkyGo, Inc. said yesterday that VISA U.S.A. will join the SkyGo wireless marketing and mobile commerce study. During the test, SkyGo will monitor qualified consumer participants in Boulder, CO, who will be using Internet-enabled phones issued by the company. For four months, SkyGo will deliver various types of ad campaigns, including rewards, discounts and purchasing opportunities from VISA and other SkyGo partners. VISA cardholders will be offered special coupons and discounts, redeemable via a one-click purchase or at a participating store or restaurant. SkyGo will provide performance feedback to VISA and other participating partners during the course of the trial. VISA says it will use the feedback to work with member financial institutions to develop future mobile commerce solutions.

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Hanft MC GC

MasterCard International announced that Noah J. Hanft has been named General Counsel and Corporate Secretary, effective January 1, 2001.

He will succeed Robert Norton, 58, who has decided to retire at year-end, after a long and successful legal career including more than 15 years at MasterCard.

Robert W. Selander, President and CEO, said “Since joining MasterCard in 1985, Bob Norton developed a legal function that provides the highest levels of service to internal customers and members around the world. Simply put, he has created one of the finest Corporate Law departments in the industry.”

Noah Hanft, 47, who is now Senior Vice President and Deputy General Counsel, joined MasterCard in 1993. He is responsible for providing legal support to MasterCard’s regional operations, leading MasterCard’s efforts on various litigation matters, and counseling senior management on issues ranging from advertising and marketing to antitrust and intellectual property. As General Counsel and Corporate Secretary, he will assume responsibility for the full range of MasterCard’s global legal issues.

“We are fortunate that Noah’s extensive experience at MasterCard, his grasp of the complex legal and regulatory issues confronting the industry, and his longstanding relationship with Bob Norton, will allow for a smooth transition. I know MasterCard’s tradition of excellence will be maintained,” Mr. Selander said.

Prior to joining MasterCard, Mr. Hanft was Senior Vice President and Assistant General Counsel at AT&T Universal Card Services, where he managed the legal issues associated with AT&T’s start-up credit card program. This innovative program was the first no-fee-for-life card in America, and was credited with revolutionizing the marketing of credit cards.

He was previously associated with the intellectual property law firm of Ladas & Parry in New York, and began his career as a trial attorney in the criminal defense division of the Legal Aid Society.

Mr. Hanft earned a J.D. degree from Brooklyn Law School, an L.L.M. degree from New York University School of Law in Trade Regulations, and a B.A. degree from the American University School of Government and Public Administration.

About MasterCard International

MasterCard International has the most comprehensive portfolio of payment brands in the world. More than 1 billion MasterCard(R), Cirrus(R) and Maestro(R) logos are present on credit, charge and debit cards in circulation today. An association comprised of 22,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is the leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. With more than 18 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. In 1999, gross dollar volume exceeded US$727 billion. MasterCard can be reached through its World Wide Web site at [http://www.mastercard.com][1].

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

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