Innoventry Lands Bass

InnoVentry Corp., a company developing the next generation of fee-based financial services and information access machines for the mass market by leveraging Internet and biometric technologies, announced the appointment of Tom Bass to the position of president and chief operating officer.

In this position, Bass will oversee the day-to-day operations of the organization along with sales and marketing.

Bass brings more than 26 years of experience in the banking and financial services industry. Most recently, he served as senior vice president of Washington Mutual where he oversaw the implementation and operations of the Integrion Home Banking project as well as the bank’s Web site. Prior to his experience at Washington Mutual, Bass was president and CEO of The Exchange System, the first system to allow multiple banks with identical ATMs to support fully integrated ATM transaction sets running coast-to-coast and across international borders.

“InnoVentry is maturing as a company. We’ve recently narrowed our focus to the retail market, and now we are ready for someone with Tom’s breadth of experience to help take the company to the next level as its president and COO,” said Frank Petro, Jr., chairman and CEO, InnoVentry. “Tom’s considerable knowledge of advanced ATM technologies will greatly benefit InnoVentry.”

About InnoVentry

Backed by the wholesale bank of Wells Fargo & Co. (NYSE:WFC) and by Cash America International, Inc. (NYSE:PWN), InnoVentry combines Internet and face-recognition technologies to bring advanced cash-management and information-access machines to market. InnoVentry distributes these machines under the RPM(TM) brand to leading retail-store networks across the nation. Since its launch in 1998, InnoVentry has enrolled more than 760,000 customers, cashed over two million checks and established relationships with many of the nation’s leading retailers. The company is based in San Francisco.


Alberta Gold

Canada’s Alberta Treasury Branches unveiled Wednesday the ‘Alberta Gold My Rewards MasterCard’. The new credit card loyalty program offers points for travel that can be redeemed anytime, anywhere, and with any airline. Cardholders will earn one point for every dollar charged and points will not expire. The new MasterCard carries an $89 annual fee and offers a 21 day grace period. Credit lines range from $5,000 to $50,000. The ‘Alberta Gold My Rewards MasterCard’ is one of four personal credit card offerings available from Alberta Treasury Branches. The other three cards include: ‘The Alberta MasterCard’; ‘The Alberta Advantedge MasterCard’; and ‘The Alberta Gold Cash Rebate MasterCard’. ATB has 144 branches and 131 agencies located throughout Alberta.


QSI & SafeDebit

QSI Payments, Inc., announced at the 2000 NYCE Electronic Delivery Conference that its Universal Payments Architecture is being adopted by Electronic Payment Exchange to provide SafeDebit transaction processing services.

Developed by NYCE Corporation, SafeDebit is the first convenient and portable way to make real-time PIN-secured purchases on the Internet with funds withdrawn directly from deposit accounts. It is also the only debit payment method that can be used with any standard PC with a CD-ROM drive; consumers do not have to install any special hardware. In essence, SafeDebit — which has a patent pending — works just like an ATM card for the Internet.

QSI Payments is the only provider of merchant payment processing software certified by NYCE Corp. that meets the SafeDebit specifications. Based on its Universal Payments Architecture, QSI Payments can enable financial institutions and payment processors to quickly deploy new payment types like NYCE’s SafeDebit.

EPX, a privately held commercial electronic payment underwriter and processing company, will become the first NYCE SafeDebit transaction processor for those Internet retailers that choose to accept SafeDebit cards for payment. With merchant processing in place, the opportunity is prime for NYCE’s 2,342 financial institution participants to begin issuing self-branded SafeDebit CD-ROM “cards” to their collective base of over 45 million consumers.

To complete a SafeDebit transaction, customers obtain a business card-sized CD-ROM from their financial institution. Once customers are ready to order a product from an e-tailer, they simply insert their SafeDebit card into a standard PC CD-ROM drive and select the SafeDebit payment option. To confirm their identity, the customers log in an electronic personal identification number (PIN), which is authenticated in real-time by the customer’s institution. The funds are authorized in real-time and drawn directly from the customer’s checking or savings account, without e-tailers ever capturing the customer’s private account number or PIN.

“NYCE is thrilled that EPX is installing QSI’s SafeDebit payment architecture,” said Paul Turgeon, senior vice president of NYCE’s Advanced Products Group. “This relationship sets the stage for all of NYCE’s financial institution participants to offer a new Internet payment channel to consumers that is designed to be highly secure, easy-to-use, and portable.”

“The QSI Universal Payments Architecture allows EPX to become the first SafeDebit transaction processor in the United States,” said Ray Moyer, CEO of EPX. “QSI Payments provides the only SafeDebit certified payments solution on the market today. This allows EPX to provide the best and most secure debit payment method to our large base of Internet merchants prior to the busy holiday buying season.”

“QSI Payments’ early investment in the development of the SafeDebit Payment Gateway is paying off,” said Stevan Berardo, president of QSI Payments North American operations. “Together with EPX and NYCE, QSI Payments is leading the revolution of providing secure payment solutions for the Internet economy.”

About QSI Payments, Inc.

QSI Payments is a global provider of e-payments infrastructure software and secure payments solutions. QSI Payments’ unique software enables financial institutions, enterprises, and their respective customers to transact e-payments in a secure and authenticated manner. The company developed the first smart card debit system in 1996 and has implemented electronic payment solutions across the globe in the United States, Asia, Australia and the United Kingdom. QSI Payments has received international recognition for its Universal Payment Architecture(TM). QSI Payments sets itself apart from the competition by addressing the industry’s needs for increased security, authentication, scalability and bank branding through its unique e-payments architecture that offers unlimited flexibility and absolute control. Visit QSI Payments on the Web at [][1].

About Electronic Payment Exchange (EPX)

Founded in 1979, EPX is a full-service ePayment processing company, which specializes in enabling online businesses to accept both credit card and electronic check transactions. Notable EPX milestones have included: implementation of the Nation’s first interchange ATMs, processing the first true Internet transaction, developing the first real-time transaction reporting website and creating the first merchant financial risk transfer processing guarantee for banks. EPX has a vast array of clients, from small businesses to Fortune 500 companies, such as DuPont, Verizon Wireless and USAir, and currently processes over $4 billion in Internet transactions a year.

About NYCE Corp.

Headquartered in Woodcliff Lake, N.J., NYCE Corp. is one of the largest electronic payments companies in the U.S. The NYCE Network provides financial institutions and retailers with shared network services for automated teller machines (ATMs), online debit, point-of-sale and electronics benefits transfer transactions. Currently, NYCE has 2,400 financial institution participants and services more than 47 million cardholders through 38,000 NYCE-branded ATMs and 224,000 point-of-sale retailer locations. The company processes nearly 83 million transactions each month. In addition, NYCE Corp. provides financial institutions with electronic funds transfer processing services that support ATM deployment and debit card issuance solutions. Innovations such as SafeDebit have established NYCE as a frontrunner in the payments industry. NYCE’s Web site address is [][2].

Universal Payment Architecture is a trademark of QSI Payments, Inc. SafeDebit and NYCE are trademarks of NYCE Corporation. EPX is a trademark of Electronic Payment Exchange.



NPC Promotes Sagar

National Processing Company, a leading provider of merchant credit card processing announced the promotion of Randy Sagar to senior vice president of Independent Sales. In his new role, Sagar will report to executive vice president Mark Pyke and will be responsible for all aspects of the indirect sales effort, affiliate sales programs and recruitment for the independent sales channel.

A seven-year NPC veteran, Sagar has played a strategic role in shaping the Company’s growth of the Independent Sales channel, contributing in the recruitment of a major portion of the participants. NPC executive vice president Mark Pyke said, “Randy has distinguished himself as a leader who has consistently produced superior results. His wealth of knowledge, industry expertise and reputation in the Independent community illustrates NPC’s commitment to the Independent Sales channel and putting the leadership in place to make certain our client needs are met.”

Prior to joining NPC, Randy was Regional Sales Director with Biz Associates of Los Angeles, California. He later joined Financial Alliance as Senior Sales Director with responsibility for recruitment and management of the Independent Sales programs. NPC acquired Financial Alliance in 1997.

About NPC

NPC is a leading provider of merchant credit card processing and corporate outsourcing solutions. NPC supports approximately 500,000 merchant locations, representing one out of every six Visa(R) and MasterCard(R) transactions processed nationally. Approximately 88 percent of the company is owned by National City Corporation (NYSE: NCC), a Cleveland based $85 billion financial holding company. Additional information regarding NPC can be obtained at [][1].



FDR Cutbacks

First Data Resources confirmed Wednesday it is eliminating 280 positions to streamline operations. This impacts 150 positions in Omaha and 130 positions in 10 other cities by consolidating functions, eliminating layers of management and aligning resources more efficiently. Meanwhile FDRLimited, FDR’s European subsidiary, announced it will eliminate about 725 positions over the next 6 to 12 months, enabling the company to better align resources with projected volumes and streamlining operations around the world. FDRLimited serves the needs of over 50 financial institutions, 450,000 merchant locations and approximately 25 million cardholders and has a presence in the United Kingdom, Germany and Spain. FDR says the cutbacks will strategically reposition the company in a way that promotes innovation and enables the company to be more competitive.


Burke Leaves Credit Store

The Credit Store, Inc. previously announced the resignation of Martin J. Burke, III as its Chairman and CEO. Mr. Burke’s resignation was the result of differences between Mr. Burke and the Board of Directors. This announcement is intended to clarify a press release of September 22, 2000.

The Credit Store, Inc. is a technology based financial services company that provides unsecured credit card products to consumers who may otherwise fail to qualify for a traditional unsecured bank credit card. The company reaches consumers by acquiring portfolios of non-performing consumer receivables and offering a new credit card to those consumers who agree to pay all or a portion of the outstanding amount due on their debt. The new card is issued with an initial balance and credit line equal to the agreed repayment amount. After appropriate seasoning, the company seeks to sell or securitize the credit card receivables generated by this business strategy.


American Online Bank

OR-based sub-prime credit card specialist, American Pacific Bank, introduced American Online Bank yesterday. Online Bank’s home banking system enables customers to view and download account histories, transfer funds, pay bills, track personal investments, apply for loans, credit cards, deposit accounts and reorder checks. American Pacific Bank was formed in 1979 as an Oregon state chartered bank and has grown from a small community bank to a nationwide provider of secured credit cards.


Datakey Cards Certified

Datakey, Inc., an international leader in smart card solutions for Public Key Infrastructure, announced that Digital Signature Trust Co. has selected Datakey’s Model 330 smart cards as meeting all of the requirements of the American Bankers Association’s TrustID certificate program.

The TrustID certificate program is a strategic initiative powered by Digital Signature Trust Co. that enables financial institutions to compete in the age of e-commerce. TrustID digital certificates are issued under the unique authority of the TrustID digital certificate policy, which is governed by the American Bankers Association. The policy serves to establish the highest level of online trust. As a TrustID program partner, Datakey offers its PKI smart cards to financial institutions and their partners and customers that require the highest level of security for digital credentials when conducting business over public and private networks.

“We selected Datakey for the TrustID Certificate Program because of our long-standing relationship with the company and its technology leadership, including the FIPS certification,” said Scott Lowry, president and CEO of Digital Signature Trust Co. “Because of the size and nature of their transactions, financial institutions require the highest level of security possible — and that’s what the TrustID certificate program and Datakey’s technology provide.”

A proven track record in the financial services industry

Founded in 1976, Datakey has a strong history of serving financial services organizations. To date, the company has provided its smart card solutions to more than 65 financial and banking institutions worldwide to help them secure online communications and transactions.

“Smart cards play a pivotal role in safeguarding online communications and business-to-business e-commerce — from strong user authentication to encrypting and digitally signing e-mail,” said Tim Russell, vice president and general manager of Datakey’s Information Security Solutions business unit. “We are honored to be part of the TrustID Certificate Program and look forward to continuing to serve the financial services community.”

Datakey smart cards: advanced protection for digital credentials

Datakey pioneered the first PKI cryptographic smart card used for digital signatures in the early 1990s. Today, Datakey’s smart cards are being used by worldwide organizations to secure their online communications and to provide strong user authentication to corporate networks, VPNs, intranets and extranets.

The company’s Model 330 smart card is the only 32K card to earn FIPS 140-1 Level 2 certification, an independent government validation that certifies the card’s cryptographic strength. The card also features 2048-bit public key encryption strength and an extensible operating system for true multi-application capability.

About Datakey, Inc.

Datakey, Inc. is a leading international provider of smart card solutions for PKI. Headquartered in Minneapolis, Minn., the company offers a family of smart card-based information security and digital signature products under the SignaSURE(R) umbrella. Using state-of-the-art cryptographic technology, these products fill growing market needs for secure, smart card-based user authentication and data privacy for business-to-business e-commerce. Datakey’s smart card-based information security products play an integral role in any PKI system by providing two-factor security — something that is owned (a smart card) and something that is known (a password).

Shares of Datakey’s common stock are traded on Nasdaq under the symbol DKEY. You can find more information on the Datakey Web site at [][1]. You can view all Datakey press releases on the Web site at [][2].

About Digital Signature Trust Co.

Digital Signature Trust (DST) is a subsidiary of Zions First National Bank (Nasdaq: ZION) and is the first licensed Certification Authority in the U.S. As an issuer of digital certificates that guarantee the identity of businesses and individuals online, DST understands that communicating securely in the digital age is about more than just technology, it is about trust. Trust and confidence can only be derived from the quality of the management practices, policies, and procedures that an organization puts in place around its technology. Because DST is a subsidiary of a national bank it is subject to regulatory oversight and other stringent internal and external auditing requirements that provide the foundation for a level of trust and assurance that is unequaled by its technology-based PKI competitors. It is this foundation that makes DST’s claim of creating the highest level of trust in the Internet truly creditable. For more information, visit [][3]



Convenience Usage

The number of American cardholders paying off credit card balances in-full each month continues to rise. Meanwhile average credit card debt per household is quickly approaching the $8,000 mark. According to CardData (, 44% of cardholders, based on mid-year data, pay off each month to avoid interest charges. This compares to 43% at year end 1999 and 29% at year end 1990. Meanwhile the average credit card balance per household, among households with at least one credit card, is $7,942 at mid-year. This compares to $7,564 for year end 1999 and $2,985 for year end 1990.


1990: 29% $2985
1991: 31% $3223
1992: 31% $3444
1993: 33% $3601
1994: 35% $4811
1995: 38% $5832
1996: 39% $6487
1997: 40% $6900
1998: 42% $7188
1999: 43% $7564
2000: 44% $7942

Convenience usage -% of bank credit cardholders (VISA,MC,Discover,AmEx) paying off balances in-full each month; Card Debt- outstanding balances for all credit cards including bank credit cards and private label credit cards, among U.S. households with at least one credit card.

Source: CardData ([][1])



LifeMinders Deal

First USA announced this morning a multi-million dollar partnership with LifeMinders, a provider of Web and wireless direct marketing infrastructure that uses a proprietary personalization platform. Under terms of the deal, LifeMinders will send targeted promotions of First USA’s card products to its more than 18 million members. This relationship is one of the first-ever multi-product packages to be co-marketed by the financial leader with another company. LifeMinders will send targeted offers for various First USA credit card products, including the ‘e.card Platinum VISA’, LifeMinders co-branded cards and a diverse array of partner cards. These personalized offers could represent hundreds of different cards with benefits specific to the needs and interests of each targeted member. As an example, LifeMinders members who are signed up for the LifeMinders Travel emails may be offered the ‘British Airways Platinum VISA’ card, allowing members to accumulate airline miles for travel benefits. Financial terms of the deal were not disclosed.


Big Mac ATMs

American consumers will soon be able to have their apple pie and cash access too. Diebold announced Tuesday it has teamed up with McDonald’s Corp. to place ATMs in various McDonald’s restaurants across the USA. The first 30 ‘D-Cash’ ATMs will be installed in corporate locations throughout Pennsylvania and West Virginia. McDonald’s franchise owners will have the opportunity to participate later in the program. Under terms of the agreement, Diebold will install and operate the ‘CashSource Plus 200P’ cash dispenser in McDonald’s locations. The ‘200P’ permits restaurant staff to load and recycle cash without accessing the chest of the unit by depositing money directly into the ATM by way of a bill acceptor. In return, McDonald’s will pay Diebold a monthly fee for the installation and maintenance of the ATMs. A portion of each transaction surcharge will be paid to the Ronald McDonald House in regional areas as specified by McDonald’s. McDonald’s has nearly 27,000 restaurants serving over 43 million people in 119 countries daily. Approximately 85% of McDonald’s U.S. restaurants are owned and operated by independent franchisees.