UPS MasterCard Update

AmericasMart.com, the business-to-business website for the exhibitors and buyers of AmericasMart Atlanta, has expanded the buying potential of AmericasMart exhibitors and buyers through an exclusive partnership with UPS Capital Corp., the financial services arm of UPS. Together, AmericasMart.com and UPS Capital are co-branding a hybrid private label credit line “The AmericasMart.com Account” that will offer buyers quick and easy purchasing options and provide exhibitors with financial savings.

AmericasMart.com and UPS Capital made the announcement at a media briefing to coincide with the beginning of AmericasMart Atlanta July Market.

AmericasMart Atlanta is the nation’s largest wholesale market offering specialty gift, home furnishings, area rug and apparel products. The wholesale market with more than forty years experience, AmericasMart Atlanta annually serves more than 5,000 exhibitors and 200,000 retail buyers from 72 countries. AmericasMart.com is an independent trading exchange created to enable transactions between buyers and vendors.

Helping to facilitate the actual transaction between buyer and exhibitor marks a first for AmericasMart Atlanta and UPS Capital, and adds extra value to AmericasMart.com’s e-commerce solutions. This new financial option, which offers an unsecured, revolving line of credit and includes a credit card, enables exhibitors who honor this account to obtain immediate transaction authorizations based on the status of buyers’ accounts.

“Manufacturers and buys worldwide recognize AmericasMart Atlanta as the global industry leader with four decades of experience. But, experience is at its best when it serves as the foundation for launching the future. Today, AmericasMart exhibitors and retailers are assured that they can conduct e-commerce facilitated through the financial options made possible by the partnership with UPS Capital,” said John C. Portman, Jr., chairman of AMC, Inc., parent company of AmericasMart and AmericasMart.com

AmericasMart.com chief executive officer, Joe Farrugia added, “By offering The AmericasMart.com Account, AmericasMart.com and UPS Capital can establish the rates and fees exhibitors will pay to conduct transactions. We plan to offer a lower rate than exhibitors normally pay. This will help all of our customers, especially small businesses, who will appreciate the financial benefits the line of credit offers.”

AmericasMart.com and UPS Capital further extend their credit capabilities to buyers and exhibitors alike by offering a MasterCard(TM) business credit card, which can be used at the more than 17 million locations worldwide where MasterCard(TM) is accepted. The credit card option provides AmericasMart.com customers with an economical way to add functionality to their purchasing processes. AmericasMart.com buyers and exhibitors will have the option of offering their employees separate credit cards with individual lines of credit. AmericasMart.com and UPS Capital will add functionality to the card by making a number of Internet tools available such as expense reports for employee cardholders, transaction tracking and management reporting. Additional features will be made available.

“The benefits of our program have universal application. We believe it adds value to any company seeking a more efficient and convenient way to run its business,” said Bob Bernabucci, president, UPS Capital. “We are pleased to join with AmericasMart.com to offer a unique program that helps small businesses, many of whom have been UPS customers for decades.”

AmericasMart.com ([www.americasmart.com][1]) is an independent online global marketplace providing e-commerce and informational services for exhibitors (wholesalers, manufacturers and sales representatives) and buyers (retailers) of AmericasMart, home of the nation’s largest gift, home furnishings, area rug and apparel markets. In addition to the electronic showrooms that are segmented into nine product categories for user convenience, AmericasMart.com provides services such as online order placement, market research, industry news and market travel for buyers and exhibitors during and between markets and trade shows, adding e-commerce efficiency, convenience and reach.

UPS Capital Corporation is a wholly owned subsidiary of UPS (NYSE: UPS). Its mission is to provide a comprehensive menu of integrated financial products and services that enable companies to grow their business. UPS Capital’s growing product portfolio is designed to deliver a one-stop solution to the capital needs of any enterprise. UPS Capital also offers the following products: Next Day Leasing, C.O.D. Enhanced Services, Distribution Finance, and Global Trade Finance. Founded in 1998, UPS Capital is based in Atlanta, Ga., and resides on the Web at [www.upscapital.com][2].

[1]: http://www.americasmart.com
[2]: http://www.upscapital.com

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Taste Card

The dining card has gone international. Transmedia Asia Pacific and Transmedia Europe introduced this morning the ‘Taste Card’ in the UK. The announcement follows the decision to terminate, by mutual consent, the companies’ license agreements with Miami-based Transmedia Network, Inc. In December, Transmedia Asia Pacific and Transmedia Europe agreed to merge. Under the new UK program, members receive a transactional card and access to a complete online directory of participating restaurants. The ‘Taste Card’ offers savings up to 25% on dining expenses. The card is linked to a designated credit card including AmEx, VISA, MasterCard or Delta and is presented for bill payment. The member’s credit card statement shows the net amount paid after the discount is applied but does not include VAT or tip. The firm plans to add online reservations, wireless applications and reviews, by year’s end to its Web site. Transmedia Network, issuer of the ‘Dining A La Card’, has 2.7 million members and more than 10,000 participating restaurants throughout the USA. Two weeks ago America West Airlines and Transmedia Network joined up to create ‘FlightFund Dining’ for America West’s frequent flyer members.

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Proton LBV

Proton World announced that it has signed an Original Equipment Manufacturer Agreement with Keyware Technologies, the world’s leading provider of biometric solutions for cardholder authentication and identification.

Proton World and Keyware Technologies are already established technology partners. The two companies introduced their proof-of-concept integration of the Proton e-purse and Keyware’s Layered Biometric Verification at the Smart Card 2000 trade show in London in February 2000, where it won the Advanced Card Award for the Best New Security Product.

Under the terms of the OEM agreement, the collaboration between the two companies is extended and strengthened: Proton World will offer an optional biometrics component, using the Keyware LBV system as an “add-on” to other applications in its end-to-end smart card solutions and gains the right to license its use by third parties.

The new component will include a Fingerprint Verification Module, developed by Keyware Technologies, that will read fingerprints, compare them with bio prints strored on the Proton card and then send encrypted data to the Proton terminal. The necessary terminal software development will be done by Proton World and the interface between the module and the terminal will be designed and developed by a joint Proton World/Keyware Technologies development team.

The two companies will create and implement a joint world-wide marketing plan, including current Proton World licensees.

Dr. Armand Linkens, managing director and CEO of Proton World, said “The security of Proton solutions is admired around the world and we will keep our position as the market leader in this domain. Biometrics is the next-generation technique, which will replace PIN codes whilst remaining user-friendly. This Agreement allows us to respond immediately to requests we have already received from our licensees in developing countries and also to offer a range of security options to new customers, according to their individual requirements.”

Mr. Francis Declerq, president and CEO of Keyware Technologies, said “The combination of biometric technology and smart cards produces obvious synergies. Bioprints, such as voice, fingerprint or face, can be easily stored on a smart card for a variety of security purposes. Keyware is excited to name Proton World as our newest customer. Together, Proton World and Keyware will make smart card technology more and more secure.”

About Proton World

PROTON WORLD was created by major smart card players (American Express, Banksys, ERG, Interpay and Visa International) to give a boost to common smart card and electronic purses standards. Proton World is a high-technology company, which delivers global smart card solutions world-wide. It continues the development and licensing of Proton smart card applications, which have already been chosen by 20 countries. The Proton technology is the most broadly implemented in national roll-outs and is the most actively used world-wide: the Proton-based smart card schemes have together performed more than 166 million e-purse transactions since they have been introduced. It also has the largest acceptance base, with more than 280,000 terminals installed world-wide.

Multiple applications are available today using Proton (for example electronic commerce, access controls, loyalty schemes, calling cards, university campus cards, etc.). Proton World supports a variety of technologies and specifications to deliver open, interoperable and global smart card solutions. It is implementing the Common Electronic Purse Specifications (CEPS) to ensure interoperability of electronic purse schemes world-wide.

About Keyware Technologies

Founded in 1996, Keyware Technologies is a pioneer in the field of biometrics, the technology of verifying an individual’s identity by means of personal characteristics such as voice, face and fingerprints. Co-headquartered in Belgium and Woburn, Mass., Keyware is the world’s leading provider of intelligent biometric solutions for real world business applications. The solutions optimise security and convenience for physical locations, e-commerce, network and telecommunications applications. Keyware’s award-winning technology is sold globally through an extended network of OEMs, system integrators and VARs.

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MBNA Quantum

Perfect Plastic Printing has shipped its first order of Quantum Translucent Visa and MasterCard to MBNA America Bank, the world’s largest independent credit card lender.

PPP translucent (patent pending) card use technology, rather than opaqueness to allow the translucent card to operate in ATM and POS equipment around the world.

The MBNA Quantum card is the first translucent Visa and MasterCard issued in the world and sets a new standard in card issuance and technology.

For more information, contact Ted Liberlowski at (630) 584-1600.

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BancorpSouth/FDR Deal

First Data Resources, a subsidiary of electronic payments leader First Data Corp. announced it has signed a five-year agreement with BancorpSouth to provide both online and offline processing for 100,000 debit cards and network gateway services for 40,000 ATM cards.

First Data’s industry-leading Integrated Debit Services solution offers a full range of debit processing services, including signature-based offline processing, PIN-based online processing, ATM processing and stored value card processing.

BancorpSouth, based in Tupelo, Miss., offers a debit card with the MasterCard brand.

“First Data’s complete solution provides everything we need to manage, grow and protect our debit card portfolio,” said Michael Lindsey, first vice president and manager of alternative delivery services, BancorpSouth.

First Data provides offline, online and ATM processing for more than 56 million debit cards issued by more than 500 financial institutions.  As of March 31, First Data processed over 322 million off-line debit card transactions — a 47 percent increase in the number of transactions handled during the same period for the previous year.  As the industry leader in debit processing, First Data offers a full range of online debit processing services and is currently leveraging the strength of its offline processing system to create the most comprehensive, integrated deposit-access solution for its clients.  First Data processed more than 1.16 billion off-line debit card transactions in 1999.

“First Data is committed to developing services that reduce our clients’ overall debit card processing costs while helping them effectively manage their cardholder relationships.   By integrating online services and tools into our debit processing system, First Data delivers a complex debit solution,” said Douglas McNary, who leads First Data’s Integrated Debit Services organization.  “We are pleased to partner with BancorpSouth and look forward to working with BancorpSouth to achieve the goals for their portfolio.”

About BancorpSouth

Headquartered in Tupelo, Miss., BancorpSouth is a financial services company with $5.8 billion in assets operating 167 banking and mortgage locations and 170 ATMs in 87 Mississippi, Tennessee and Alabama communities. The Company also provides investment services through its subsidiary, BancorpSouth Investment Services Inc. and insurance services through BancorpSouth Insurance Services.  BancorpSouth’s common stock is traded on the New York Stock Exchange under the symbol BXS.

About First Data

Atlanta-based First Data Corp. (NYSE: FDC) helps move the world’s money. As the leader in electronic commerce and payment services, First Data serves more than two million merchant locations, 1,400 card issuers and millions of consumers, making it easier, faster and more secure for people and businesses to buy goods and services using virtually any form of payment.  With more than 30,000 employees worldwide, the company provides credit, debit and stored-value card issuing and merchant transaction processing services; Internet commerce solutions; money transfers and money orders; and check processing and verification services throughout the United States, United Kingdom, Australia, Mexico, Spain and Germany.  In addition, its Western Union(R) network includes approximately 86,000 agent locations with operations in 178 countries and territories.  For more information, please visit the company’s web site at [http://www.firstdatacorp.com][1] .

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

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Cybermoola Footaction

San Francisco-based Cybermoola has inked a deal to offer its prepaid cards in the Dallas-area stores of Footaction USA. The program allows consumers to shop online with cash. Select Footaction stores now sell ‘Cybermoola’ cards, which can be bought with cash and then used to shop at Web stores, including Footaction.com. A consumer purchasing ‘Cybermoola’ at a brick-and-mortar location enters the card’s unique serial number at Cybermoola’s Web site, and uses an online account to shop at any site accepting ‘Cybermoola’ as a payment option. Footaction USA operates 551 primarily mall-based stores in 43 states.

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Orion/TVS Merger

Orion Technologies, Inc. announced the closing of the acquisition, by merger, of Transaction Verification Systems, Inc. of Falls Church, Virginia.  TVS, now in its twentieth year of operations, produces and markets transaction monitoring systems to retailers.  TVS is the leading provider of these products to the convenience store and quick service restaurant markets in North America.

The stock-based acquisition of TVS by Orion, valued in excess of $1,000,000, expands TVS’ marketing ability to all of the US retail market and, through Orion’s presence in Europe, to the European markets.  In addition, Orion provides technology and telecommunications capabilities to TVS for a greatly expanded product line.  TVS is meeting those objectives via their next-generation digital recording systems with remote access.

“As the leader in register interface technology, TVS now has the expanded presence in the world marketplace to grow very rapidly,” stated Robert Stocker, President of Orion’s TVS subsidiary.  “With Orion’s broad suite of telecommunications capabilities, we redefine the application of text inserters from being simply security devices to having the entire system become a full retail management tool.”

About Transaction Verification Systems, Inc.

Founded in 1981, TVS has developed and marketed register interface technology products to record retail point-of-sale transactions on in-store videotape and enable remote monitoring of such transactions over telephone lines.  The company’s hardware records register transactions in real time and its software provides a customizable management tool for analyzing employee and customer activities and other point-of-sale anomalies.

About Orion Technologies, Inc.

Orion is concentrating on Internet and telecommunications-based technologies and services for e-commerce and related business.  It is currently engaged in electronic point of sale terminal rentals and the electronic processing of debit and credit card transactions over such terminals in Europe.

Electronic point of sale processing is the technology used by retailers to facilitate payment by credit or debit cards, bank customer cards (ATM), and chip cards (cash cards) with POS terminals.  The use of these terminals, widely used by retailers in the United States and the United Kingdom, is growing very rapidly in Germany and other parts of Europe where Orion has operations.

The management of Orion is also pursuing related acquisitions.

Statements made in this press release that are not historical or current facts are “forward looking statements” made pursuant to the safe harbor provisions of federal securities laws.  Forward looking statements represent management’s best judgment as to what may occur in the future, but are subject to certain risks and uncertainties that could cause actual results and events to differ materially from those presently anticipated or projected.

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Multos v.5

Philips Semiconductors announced that Australia’s Keycorp will port its ‘MULTOS Version 5′ OS to Philips’ ‘MIFARE PROX’ dual interface smart card controller range. In a related announcement, Keycorp also announced an alliance with Cubic Transportation Systems to deliver integrated payment solutions across Australia’s transit and financial services markets. ‘MULTOS .5’, combined with the ‘MIFARE PROX’ smart card controller range, supports both contactless and contact interface operations, allowing contactless transport ticketing applications, as well as existing contact banking solutions. Keycorp’s ‘MULTOS v.5’ operating software includes the ‘MULTOS v.4’ standard and adds optional features such as the provision of a contactless interface for transport applications; support for GSM SIM applications; and Elliptic Curve Cryptography for mobile commerce applications. The combined KeyCorp/Philips solution will be generally available early 2001. In the Keycorp/Cubic deal, the Sydney Integrated Ticketing System will link the region’s rail, bus and ferry services to a common contactless smart card. Similarly in Brisbane, an integrated ticketing initiative is in progress which would include smart card based ticketing for rail, bus and ferry operators, as well as extensions into regional parking facilities.

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FTC Settlement

The FTC yesterday reached two settlements with defendants who used bulk e-mail, or spam, to claim they could help consumers get new credit histories by obtaining new identification numbers through a practice known as file segregation. One defendant will pay an $11,000 civil penalty. The settlements of the “Operation New ID – Bad IDea” sweep are with A. James Black, d/b/a AJB Publishing, and David Story d/b/a Network Publications.

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TPII in Russia

IFS International, Inc. announced that the Savings Bank of The Russian Federation, the largest Russian banking corporation, has licensed IFS’ TPII product for two of its primary regions. The two licenses will manage the SBRF’s network of Automatic Teller Machines and Point of Sale terminals in the St. Petersburg and the Head Office regions around Moscow and is being viewed as a pilot for a national roll-out throughout the Russian Federation.

The Banking Production Centre (BPC), IFS’ authorized distributor in the Russian Federation, is serving as the prime contractor on the project, overseeing the installation and certification of the system. The first of the two systems, operating on Hewlett Packard hardware and driving a network of devices accepting Visa and Europay cards, will be operational within the next few weeks.

Anatoly Loginov, Executive Director of BPC commented, “During the last two years SBRF has enjoyed significant growth in its international payment cards business, particularly in the geographic regions of the Russian Federation where the financial crisis of August 1998 devastated local processors and displaced thousands of cardholders from collapsed local banks onto the solid shores of the State Savings Bank of the Russian Federation. SBRF decided to install TPII in their head-office in order to handle a rapidly increasing number of regional transactions and manage their country-wide ATM network. This decision was based on their long-term experience with TPII at the largest card operation of Moscow Savings Bank who have been using TPII since 1996. A second new TPII license for the regional processing center in St. Petersburg signals that the long awaited rollout of TPII based solutions in regional SBRF banks has finally started. This significant contract is a major endorsement and testimony to the invariable adherence to the chosen principles of cooperation between BPC and IFS in Russia.”

Simon Theobald, President and CEO of IFS International, stated, “The dominant position of the Savings Bank of the Russian Federation in the Russian Payment cards market has been achieved through continued investment in appropriate technology. In beginning this rollout of TPII systems throughout the regional centers of SBRF, the bank has demonstrated that they intend to continue to lead the massive growth in payment cards throughout the country. We are now looking forward to co-operating further with SBRF, adding multi-application chip and magnetic stripe card issuance functionality through our TP-CMS product line.”

IFS International, Inc. and Network Controls International, Inc. are subsidiaries of IFS International Holdings, Inc. which has headquarters in the USA and subsidiary offices in the USA, UK, Singapore, Australia and Germany.

IFS International, Inc. develops, markets and supports software products for the electronic financial market. IFS International’s TPII and TP-CMS products provide support for ATMs, Point of Sale devices, network switches, smart cards and card management. IFS International’s subsidiary, Global Insight Group, is a supplier of strategic business and technical implementation support services to the Retail Finance Industry.

NCI, Inc. develops innovative retail delivery applications like NCI Business Centre(tm), which combines network centric and browser based technologies in “One Application” to automate all delivery channels such as branch teller, platform service, call center, internet banking and customer relationship management.

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Fee Income

The fee income component of the bank credit card revenue stream continues to grow on a percentage basis. According to new data released this morning by CA-based R.K. Hammer, fee income now represents 25% of total bank credit card income. CardData (www.carddata.com) also released new figures this week that shows interest income topped $21 billion last year.

FEE INCOME/TOTAL INCOME (Bank Total vs. Credit Card)
2000: 48%/25% 1997: 38%/21%
1999: 45%/24% 1996: 36%/19%
1998: 41%/23% 1995: 35%/18%
Source: R.K. Hammer Investment Bankers

CARD FEE INCOME CARD INT INCOME
1999: $21.4B (+13.0%) 1999: $60.2B (+4.0%)
1998: $18.9B (+28.0%) 1998: $58.1B (+9.4%)
1997: $14.8B (+48.0%) 1997: $53.1B (+1.5%)
1996: $10.0B (+20.5%) 1996: $52.3B (+23.9%)
1995: $ 8.3B (+13.7%) 1995: $42.2B (+21.3%)
Source: CardData (www.carddata.com)

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Tidel 2Q ATM Record

Tidel Technologies, Inc. announced a new quarterly record for ATM shipments with 3,419 units shipped during the three-month period ended June 30, 2000 — a 77% increase from the 1,937 units shipped in the same quarter of 1999 and a 12% increase from the 3,055 units shipped in the previous quarter ended March 31, 2000. For the first nine months of fiscal 2000, the company shipped 8,687 ATMs, a 101% increase from the 4,319 units shipped in the same period a year ago.

James T. Rash, Chairman and CEO, said, “We are very pleased that the pace of our business continues to be at record levels. We expect this momentum to carry forward into the next quarter.”

Full financial results for the quarter ended June 30, 2000 will be released on or about July 26, 2000.

Tidel is a Texas-based manufacturer of automated teller machines and cash security equipment. The company pioneered the dial-up ATM in 1992 and was recently selected by BusinessWeek as one of its Top 100 Hot Growth Companies for 2000. Tidel’s common stock is traded on the Nasdaq Stock Market(R) under the symbol “ATMS”.

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