New I-Fraud Fighter

UT-based Digital Courier Technologies unveiled a new service this morning to provide key fraud detection data in real-time to help merchants intervene, in many cases, before fraud occurs. DCTI’s Web-based service features advanced fraud control through DCTI’s real-time authorization request and card activity tracking. The new service protects merchants against such Internet fraud schemes as “cramming”, when hackers flood credit card companies with authorization requests. DCTI’s tracking tool monitors the velocity or number of requests on a merchant account and instantly alerts the merchant when unusual levels of activity are detected, proactively halting the fraud before it occurs. In addition, DCTI’s card activity tracking analyzes purchasing history for unusual patterns to help warn merchants against possible identity fraud. The new service also offers other premium functionality for e-merchants such as tiered-levels of security and reconciliation reports.

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Mag-Tek ISO

Mag-Tek, an internationally known card reader and check reader manufacturer since 1972, recently achieved ISO 9001 status, the most comprehensive of the five ISO 9000 certifications.

First developed in 1987 by the International Standards Organization (ISO), ISO 9000 is a series of quality standards which outline the requirements for Quality Management Systems. It is an internationally accepted system of rating Quality Management and Quality Assurance.

ISO 9001 standard represents superior manufacturing and design practices, and establishes guidelines for organizations whose operations range from design and development, to production, installation and servicing. ISO 9001 helps companies consistently deliver products and services that meet customer quality requirements.

“ISO 9001 certification will increase overall efficiency, assist in on-time delivery of products and allow us to exceed customer expectations,” said Mag-Tek CEO Tom McGeary. “This important certification insures that we provide our customers with the greatest product value possible.”

ISO 9001 compliance is a voluntary practice, and includes a family of standard requirements that businesses must meet relative to their particular industry. Mag-Tek’s certification is the initial step of an ongoing commitment to quality.

Mag-Tek, Inc. ([www.magtek.com][1]) manufacturers an ever-expanding line of magnetic stripe and smart card readers, encoders, motorized readers and MICR check readers for financial institutions, retailers and OEMs. Mag-Tek also offers comprehensive solutions for card issuance, customer selected PINs and ATM card activation. Mag-Tek has headquarters in Carson, CA with sales offices throughout the United States, Europe and Asia, along with international distribution networks in over 40 countries.

Mag-Tek technology is used in millions of financial and point-of-sale (POS) transactions utilizing debit cards, credit cards and checks; at banks and other financial businesses, retail checkouts, automated gas pumps, kiosks, pay phones and airplane seat phones throughout the world. For more information on Mag-Tek and Mag-Tek products, call 888/624-8350 or visit [www.magtek.com][2].

[1]: http://www.magtek.com/
[2]: http://www.magtek.com/

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Trial Feedback

Americans apparently believe that VISA and MasterCard do not compete against each other and are divided over whether or not the credit card industry is intensely competitive. According to a online poll launched last week by CardWeb.com, most Americans would overwhelmingly choose VISA over any other card and most believe it does not make any difference whether or not an AmEx card was issued by a bank. The data are based on responses by 308 visitors received as of this morning. CardWeb.com averages between 10,000 and 15,000 visitors per day with about 80% of the traffic coming from consumers. Robert B. McKinley, CEO of CardWeb.com, Inc. says the low response is indicative of the public yawn over the VISA/MasterCard antitrust trial. The perception among consumers is this is a big guy fight with little to offer consumers.

CardWeb.com’s Online Poll – Government’s Credit Card Lawsuit

In your opinion, is the credit card industry intensely competitive? YES 47% NO 45%

Do you believe VISA and MasterCard compete against each other? NO 60% YES 33%

If you had to choose between a VISA credit card and MasterCard credit card then which one would you choose? VISA 44% MC 17%

Would it make any difference if you could obtain an American Express or Discover credit card from a bank rather than directly from American Express or Discover? NO 52% YES 35%

If your bank offered you the same interest rate, annual fee and benefits on a VISA, MasterCard. Discover and American Express card, which one would you choose? VISA 37% MC 13% DIS 10% AMEX 18%

note: balance of responses to each question were “unsure”

Source: CardWeb.com, Inc

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Top Banners

Providian topped the list of the most viewed credit card banner ads for the week of June 12-18. Providian’s ‘Aria’ bank credit cards reached 6.5% of at-home Web viewers and 9.4% of at-work surfers. Providian’s ‘GetSmart’ online credit card/loan comparison service ranked #5 among at-home surfers and #6 among at-work viewers. The data are based on Nielsen/NetRatings weekly Internet audience measurement service.

Top Banners Viewed At-Home
Advertiser Reach % Creative

1. Aria 6.5 Instant Approval — Instant Savings — 0% Intro APR
2. NextCard 4.8 New Internet Visa — 8 breakthrough advantages
3. NextCard 4.7 How about a 9.9% fixed APR from NextCard
4. AmeriDebt 4.4 Danger! Bill Problems? We Can Help You Save $!
5. GetSmart 4.4 Find a mortgage. On your terms.

Top Ad Banners Viewed At-Work
Advertiser Reach % Creative
1. Aria 9.4 Instant Approval — Instant Savings — 0% Intro APR
2. NextCard 7.3 New Internet Visa — 8 breakthrough advantages
3. NextCard 7.0 How about a 9.9% fixed APR from NextCard
6. GetSmart 6.3 Find a mortgage. On your terms.
9. AmeriDebt 6.1 Danger! Bill Problems? We Can Help You Save $!

Source: Nielsen/NetRatings

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New WAP Transaction System

Network Commerce Inc., a leading provider of technology infrastructure, services, and networks for businesses, merchants, Internet sites, and wireless networks conducting commerce online, announced the launch and immediate availability of the Network Commerce Wireless Transaction Processing system.

As one of the industry’s first WAP-enabled (Wireless Application Protocol) systems for small businesses and individuals combining both transaction processing and fraud protection, the Network Commerce Wireless Transaction Processing system extends the company’s ePayment and eFraud commerce services to WAP-enabled phones and devices.

“This service opens up new possibilities for mobile merchants, since transaction processing is less limited by location and time,” said Dwayne Walker, chairman and chief executive officer of Network Commerce Inc. “Small businesses and mobile merchants now have the ability to fraud score and accept card payments via the Internet through cell phones and other wireless devices.”

Through the Network Commerce Wireless Transaction Processing system, mobile merchants can now process credit and charge card payments in real time using wireless organizers, cell phones, and other WAP-enabled devices. Users may also continue to transact from their workstations through the transaction processing gateway.

Millions of mobile merchants and mobile service providers in the United States can benefit from the ability to process credit and charge card transactions and detect fraud at the point of sale. According to Jupiter Communications, the number of global wireless Internet users is expected to reach one billion in 2003, up from 300 million in 1999.

“We now offer a seamless cross-platform payment and billing solution,” Walker said. “Small businesses and mobile merchants will enjoy the mobility, immediacy and security of our wireless transaction system, and will benefit from offering their customers integrated wireless fraud and payment processing solutions.”

The Network Commerce Wireless Transaction Processing system is comprised of the wireless ePayment and eFraud services. Merchants can use ePayment to authorize, capture, settle, and credit sales to their account in real time. eFraud enables merchants to detect fraud using a sophisticated neural network combined with a powerful rules engine. For more information on the Network Commerce Wireless Transaction Processing system visit http://wireless.networkcommerce.com/transaction.html.

About Network Commerce Inc.

Network Commerce Inc. ([http://www.networkcommerce.com][1]) is a leading provider of technology infrastructure, services and commerce networks for Internet sites, wireless networks, businesses and merchants. Network Commerce’s core commerce infrastructure technology, services and commerce applications are known as the Network Commerce CommerceSuite. Built on the CommerceSuite are the Network Commerce Business Network and the Network Commerce Consumer Network. The Network Commerce Consumer Network is comprised of ShopNow.com ([http://www.shopnow.com][2]), a leading shopping network and directory featuring over 60,000 merchants; BottomDollar.com ([http://www.bottomdollar.com][3]), a comparison shopping network; and SpeedyClick.com ([http://www.speedyclick.com][4]), a leading commerce-enabled entertainment community; and over 23,000 affiliate sites. The Network Commerce Business Network is comprised of b2bNow.com ([http://www.b2bnow.com][5]), a business-to-business marketplace and directory featuring over 610,000 businesses in 260 international markets; FreeMerchant.com ([http://www.freemerchant.com][6]), a business and merchant store builder with over 80,000 hosted businesses; and Ubarter.com ([http://www.ubarter.com][7]), a business-to-business barter exchange. Network Commerce Inc.’s eBusiness Services division provides consulting, custom commerce solutions, and integrated marketing services. Network Commerce Inc. has over 600 employees and is headquartered in Seattle with offices in California and Georgia.

[1]: http://www.networkcommerce.com/
[2]: http://www.shopnow.com/
[3]: http://www.bottomdollar.com/
[4]: http://www.speedyclick.com/
[5]: http://www.b2bnow.com/
[6]: http://www.freemerchant.com/
[7]: http://www.ubarter.com/

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AmEx Gameplan

According to documents admitted into evidence Friday, American Express assembled a report two years ago to show the impact if VISA and MasterCard’s policies were modified to permit members to issue competitors’ cards. AmEx projected it would have realistically signed up nearly nine million cardholders through two dozen bank partners over a three year period. However the AmEx estimates ran from 6 million cards and 15 partners to 21 million cards through 50 partners over the same period of time. Another top secret AmEx document was admitted into evidence Friday entitled “Trench Warfare: A Battle Plan vs Citibank, First USA and VISA”. FULL STORY:

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Putney at PaySys

I PaySys International Inc., a global leader in financial transaction processing applications, announced that Steven M. Putney will lead the company’s newly formed Commercial Payment Systems division, which is developing Internet-enabled products and processing services that facilitate business-to-business billing and payment processing on an international scale.

Putney, who joined the company recently as executive vice president, will direct the new division’s efforts that will focus initially on banks, financial institutions and companies who serve the commercial credit card and B2B billing and payment markets.

“Steve Putney adds a deep understanding of the commercial payment system industry and its underlying technology,” said Stephen B. Grubb, chief executive officer. “His experience in product development and leveraging technology to improve the payment system will be key to the growth of PaySys.”

The first application to come out of the new division is a commercial payment system that provides real-time, Internet-based payment and transaction level data management in multiple languages and currencies. No single existing payment system combines all of these attributes into one package.

The product will handle both bankcard and private label transaction processes such as new accounts, account authorizations, posting and billing, credit and exceptions management, customer service, user management, security and financial transaction detail data management — all in real-time. Its complex hierarchies and modular design allow PaySys to customize the system to meet the exact needs of each of its customers.

“The convergence of worldwide banking, payments and commerce is driving the demand for real-time, B2B Internet transactions across multiple countries, languages and currencies,” said Grubb. “We have leveraged our two decades of payment processing experience to develop a real-time, web-enabled, highly scalable software platform that meets these needs.”

“The new products and services are based on a number of important technological breakthroughs,” said Putney. “The first is the ability to provide complex real-time transaction processing, 24 hours a day, seven days a week in any language or currency. Additional breakthroughs are the flexibility and scalability of the architecture which allow customers an unlimited level of control of their applications and the ability to make instant changes to the system in one place, that filter throughout the rest of the application, reducing time and maintenance costs.”

Prior to joining PaySys, Putney held multiple positions at U.S. Bank. He most recently was president of the Corporate Payment Systems division, the world’s largest provider of Visa travel and purchase cards. He was responsible for the development of all sales and marketing strategies for the corporate travel and purchasing card programs. Divisional sales grew from $30 million to $8 billion during his tenure of leadership.

Previously, Putney was executive vice president of electronic commerce at Electronic Data Systems, where he focused on consumer and commercial card processing platforms, ATM networks, EDI and home banking applications. Putney began his career in the commercial payment industry as an assistant vice president at Citicorp.

Putney is a regular speaker on the payment systems industry and is an active member of the Treasury Management Association. He also served on the Commercial Card Advisory Boards for Visa U.S.A. and Visa International. Putney holds a bachelor’s degree from the University of Houston.

About PaySys

PaySys International, Inc. is an established global leader in financial transaction processing applications, offering web-enabled transaction processing solutions. With industry-leading products such as VisionPLUS, CardPac and VISION21, and its latest Commercial Payment System, PaySys has clients in over 35 countries and on 6 continents. Headquartered in Atlanta, GA, PaySys has offices in the United States, England, Ireland, Singapore, China, Costa Rica and Australia. For more information, call PaySys at +1.770.564.8000, or visit the company’s web site at [http://www.paysys.com][1].

PaySys, VisionPLUS and TRAMS are registered trademarks of PaySys International, Inc. CardPac and VISION21 are trademarks of PaySys International, Inc. Other brands used in this document may be unregistered trademarks of PaySys International, Inc. or trademarks of their respective owners and should be treated as such. No investigation has been made of the registration status of any brand used.

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

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Smart Fun Cards

Smart cards on carnival midways is gathering momentum. WA-based The Pathways Group is expanding it smart card agreement with Funtastic Traveling Shows. The new agreement calls for Pathways to supply Funtastic with 14,000 additional smart cards, up to 75 additional terminals, and the necessary support services for the hardware and software. It is expected that visitors to the various Funtastic carnival sites will use the ‘Fun Card’ developed by Pathways to perform 300,000 transactions per month during the height of the season in July and August and to perform 60,000 transactions per month in the other months during the summer and fall seasons. With the launch of the Pathways’ midway smart card system last October in San Francisco, Funtastic became the first carnival in the USA to use smart card technology.

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VirtualBank Opens

VirtualBank, a technology-based financial services company focused on innovative technology and customer service, announced its official launch and its first three affinity partners.

Designed to meet the needs of the technology-savvy professional, VirtualBank offers the convenience of banking on-line, plus a class of personalized, competent service unprecedented in banking today. Consumers can apply for VirtualBank’s full suite of deposit and lending products, account aggregation, bill payment and financial advisory services through a proprietary technical platform that is uninhibited by the product-centered bureaucracy and legacy systems of traditional banks.

Affinity Partnerships

In addition to offering banking services to consumers from its own site — www.VirtualBank.com — VirtualBank announced the industry’s first online banking model that targets knowledge workers within innovative companies. Today VirtualBank introduced its first affinity partners — EMC Corporation, Textron Financial Corporation and The Association of Compaq Employees.

“Technology professionals are the perfect customers for VirtualBank. They are the most discerning users of the Internet, attracted to companies with innovative technology and likely to appreciate and utilize VirtualBank’s value-added services. We feel that by developing products and services that meet the needs of the most sophisticated users of the Internet, our platform will appeal to everyone,” said Rory Brown, Chairman and CEO of VirtualBank.

VirtualBank is poised to implement its first affinity partnership with EMC Corporation, the world leader in information storage systems and a member of the Fortune e-50 index of companies leading the new economy. A co-branded affinity site — EMCVirtualBank — will reside on the EMC Intranet and provide the full suite of banking and financial services for over 18,000 EMC employees.

“We purposefully selected EMC as our launch partner because of its cutting-edge approach to business and forward-thinking leadership team,” said Courtney McCashland, Executive Vice President of Marketing and People Strategy at VirtualBank. “I’ve worked with top HR executives at more than thirty high-profile companies over the last few years. We believe EMC provides an ideal model as our pioneer partner to provide this service to its employees. EMC is a trendsetter that values its employees.”

“In this competitive job market, employee satisfaction and retention are key areas of focus. Our partnership with VirtualBank allows us to offer our employees an innovative, time-saving benefit that reinforces our commitment to our employees,” said Jack Mollen, Senior Vice President of Human Resources at EMC.

Textron Financial Corporation, a subsidiary of Textron Inc., and Compaq Corporation, a Fortune Global 100 company and the largest supplier of computing systems in the world, will also offer VirtualBank’s services to their employees.

“I am pleased to announce that Textron Financial is entering into this exciting pilot program for our organization, for its success may lead to a much larger affinity relationship with Textron Inc.,” remarked John D. Butler, Executive Vice President Administration and Chief Human Resources Officer at Textron Inc. “This new benefit for Textron Financial’s employees further demonstrates our commitment to bringing the power of the Internet into our employees’ professional and personal lives.”

Service Offerings

VirtualBank uses its unique technology platform to allow customers to complete one application for the rest of their lives. VirtualBank’s technology enables customers to open additional accounts without reentering basic information. The Bank’s low cost structure allows it to offer better rates than traditional banks.

— Deposit Accounts — VirtualBank offers a complete array of deposit accounts, including Checking, Savings, Money Market, CDs and IRAs.

— Loans — VirtualBank offers a full array of consumer lending products, including credit cards, automobile loans, home mortgage loans, home equity loans and lines of credit and personal loans.

— VirtualView — VirtualBank’s VirtualView service provides customers with one-stop access to their personal accounts, including investments, bank and credit card statements, bills, reward programs and e-mail communications, saving them the time and hassle of logging into multiple sites.

— Financial Advisory Services — Each customer is assigned a Relationship Manager who has a complete picture of the customer’s finances and is available for individualized consultations. Sophisticated online planning tools also empower customers to make better financial decisions.

— Bill Payment & Presentment – VirtualBank is the first software installation of the new Checkfree “E-Bill” software which is the next generation of Electronic Payment Technology.

VirtualBank customers can withdraw cash at any of the 531,000 automatic teller machines nationwide displaying the PLUS logo.

VirtualBank’s Technology

VirtualBank’s banking system, which is based on EMC’s industry-leading enterprise storage systems and software for the management, sharing and protection of its information, operates on Microsoft Windows 2000, which enables seamless communication between applications and easy consolidation of information on an Internet-compatible platform. VirtualBank was featured in Microsoft’s “Voice of the Customer” campaign as one of four companies that are changing the way business is done, and was major partner in Microsoft’s Windows 2000 launch in February.

“Keeping all of our deposit and lending functions in-house on a completely integrated system built for the Internet allows VirtualBank to offer a level of convenience and customer service you just can’t achieve with legacy systems,” said Bill Decker, President of VirtualBank. “Controlling our technology also enables us to innovate quickly to enhance the customer experience.”

About VirtualBank

VirtualBank, a privately-held financial institution based in North Palm Beach, Florida, was founded in April 1999 to leverage the Internet to fundamentally change the way people bank. Utilizing the Internet, Windows 2000 and its core technology, VirtualBank provides consumers highly personalized financial services through a single point-of-contact for all financial transactions. More information about the company can be obtained by visiting its Web site at [http://www.virtualbank.com][1].

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

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Pathways Coupons

The Pathways Group has signed a contract with Nietech Corp. to provide transaction processing for an electronic retail coupon program. The CommunityCoupon.com program currently operates a paper-based coupon program with 200 merchants that benefits non-profit organizations in Sonoma County, CA. The electronic coupon program will feature a new magnetic stripe card to be distributed free-of-charge to community-minded consumers by the non-profit organizations. With the POS terminals located at participating local businesses, the consumer uses the card, the number of the card is read, and the merchant enters the amount of the purchase. Under the agreement, Pathways will provide CommunityCoupon.com with a proprietary network for recording card activity and transmitting a report of the daily activity back to the CommunityCoupon.com host network. In addition, Pathways will run a nightly settlement application, which will handle transfer of funds between merchant accounts and CommunityCoupon.com’s bank account. CommunityCoupon.com will then disperse the funds to the designated non-profit agencies.

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PocketCard Partnerships

ProScout.com, the industry’s best known professional scouting organization, ModelingChannel.com, a modeling webzine that provides insightful industry information, and ActingChannel.com, an online resource for aspiring and professional actors, Thursday announced an affiliation with PocketCard Inc., [www.pocketcard.com][1], the creator of a sponsored teen Visa debit card.

PocketCard provides a high-tech Visa debit card for families and businesses that allows supervised purchasing power for teens and employees. Parents or employers instantly transfer funds to the PocketCard directly from their bank account via the Web or any touchtone phone. Spending can be monitored at www.pocketcard.com and through instant email alerts.

ProScout.com, ModelingChannel.com and ActingChannel.com are among the Internet brands of Entertainment Industry Services Inc. (EISI), an established entertainment company.

ProScout.com, ModelingChannel.com, and ActingChannel.com will receive commission for each visitor to their sites that enroll for a PocketCard via a link from ProScout.com, ModelingChannel.com, and/or ActingChannel.com.

Affiliate programs offer commissions to web sites that link online users to a particular e-commerce site and generate sales.

According to a recent survey by Zandl Group, 38 percent of teenage Internet users access the Web more than once a day. Thirty-one percent of teens with Internet access purchased a product from an online shopping site. Seventy-eight percent of teen’s purchases are paid for using a parent’s credit card.

“Along with PocketCard, we can begin to teach teens responsible ways of spending by giving them the independence and distinction of having their own Visa cards, but at the same time giving them controlled budgets for their purchases,” said Greg Hartman, chief executive officer, Entertainment Industry Services Inc.

About PocketCard Inc.

PocketCard is a parent-sponsored Visa spending card that allows teens freedom to shop anywhere Visa is accepted — online or off. A parent or other adult sponsor must enroll at www.pocketcard.com to link a checking or other bank account with the Visa PocketCard account.

The teen can only spend the amount of money that is in their PocketCard account. Any attempt to spend more is denied at the point of purchase. Funds can be instantly transferred and monitored via the web or touchtone phone, and the sponsor can receive an instant e-mail update with each purchase.

Incorporated in July 1998 and issuing cards since June 1999, PocketCard Inc. invented the financial service product known as sponsored payment cards: special purchasing cards for financial dependants with instant funding, reporting and control.

Enabling that unique service is a patent-pending technology platform that allows the instant transfer of money and information — anytime, anyplace — in both the online and offline worlds. PocketCard’s business model reaches families, businesses and individuals with its innovative e-finance and relationship marketing services.

PocketCard works with leading card issuers, processors, retailers, media and others to deliver these applications.

About ProScout

ProScout, a wholly owned subsidiary of Entertainment Industry Services Inc. (EISI), an established entertainment company, is recognized by model and talent agencies as the worldwide leader for the professional and aspiring entertainment community.

ProScout’s next live event is TalentFest2000(TM) Phoenix, June 30-July 2, 2000, a weekend of information, insight, and big-time connections. Headquartered in Scottsdale, ProScout also has offices in Beverly Hills, Calif., and New York City. For more information visit www.proscout.com or call 480/425-3663.

About ModelingChannel.com

A modeling webzine that provides insightful industry information such as agency profiles, tips on how to be discovered, and behind-the-scenes features on some of today’s hottest rising stars. ModelingChannel.com has supplied original content for various web communities and websites, such as AOL and Fashion Live.

About ActingChannel.com

An online resource for aspiring and professional actors, the site offers agency news, a free web page and email account, and other valuable tips, tools and information for actors.

About Entertainment Industry Services Inc. (EISI)

EISI is a Delaware corporation formed in January 2000. The company operates primarily in four business segments within the live event and electronic media (TV, Radio and Internet) industries.

EISI is positioned to capitalize on the growing teen and young adult demographic buying power and its desire to be “in the know” and live with what is currently cool. The company has offices in Scottsdale and Beverly Hills.

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

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