Card Patent

A Fort Lauderdale, FL attorney has been issued a patent that allows for real time point of purchase allocation of expenditures, on a single credit card account. Under the patent, each credit card will have either a built in keypad and display or slip into a pocket sized device for entry of a billing code prior to an expenditure. The code may be an account number or name. When the card is swiped, the code is transmitted along with the customary charge information to the credit card issuer for processing. The credit card statement will break down all expenditures and any attendant finance charges based on the codes. The breakdown of expenditures and finance charges will also permit the substitution of one credit card for the typical wallet full carried by consumers for personal, business and other special purposes. A second patent application has been filed covering every conceivable device that could be utilized to input billing codes at the time of purchase, including a personal computer for Internet transactions.


Virtual Korean VISA

Trintech Group announced that Korea Exchange Bank Credit Service, Korea’s largest Visa card issuer, is launching the first virtual credit card payment solution in Asia-Pacific, utilizing Trintech’s PayWare eIssuer (formerly known as PayGate NetIssuer) technology.

KEBCS plans to roll out the eIssuer technology across the country in the coming months. Trintech’s eIssuer solution allows the company to authorize and distribute secure virtual credit cards to their 5.4 million cardholder base, expanding KEBCS’s brand presence on the Internet, while reducing the fraud associated with eCommerce transactions.

Trintech’s PayWare eIssuer provides consumers with a convenient and secure “drag and drop” payment mechanism for Internet transactions, with the potential to link to a host of e-banking services. PayWare eIssuer can allow issuers to increase card transaction volume, create and extend relationships with cardholders and improve brand reach.

“We are delighted to take the lead in the Korean market with the launch of the region’s first virtual credit card offering,” says Sang-Chul Kim, President of Korea Exchange Bank Credit Service. “The eIssuer payment technology provided by Trintech leads the industry in terms of ease of use and flexibility. We believe the Trintech solution provides a distinct advantage over the existing method of payment by combining credit, debit and prepaid capabilities in one package, as well as identifying the user during each transaction.”

“Asia-Pacific is playing a leading role in the deployment of leading-edge Internet technology,” says John McGuire, Chief Executive Officer of Trintech. “KEBCS is providing its customers with a Web-centric payment tool that cuts down on the tedious business of filling out multiple payment forms, while reducing the fraud associated with misuse of credit card information when shopping on the Internet.”

About Korea Exchange Bank Credit Service

Korea Exchange Bank Credit Service Co., Ltd. (KEBCS), first principal member of Visa and first Issuer in Korea, was established as a fully independent credit card company in 1988, when it separated from KEB to specialize in the credit card business. To keep pace with Korea’s booming economic growth in the ’90s, the company has expanded and has diversified its business activities by developing a wide range of innovative products and services, built up a strong customer base, and established an extensive branch network.

Today KEBCS has 5.4 million cardholders and 820,000 merchant relationships. KEBCS can be contacted in South Korea at 935-34 Pangbae-dong Seoco-ku Seoul 137-716 (Tel 82-2-524-8000), and reached on the Web at [][1].

A Joint venture with Olympus Capital as American direct investment group, was successfully established in December 1999. Olympus Capital invested approximately $90 million in KEBCS.

About Trintech

Founded in 1987, Trintech Group PLC is a leading provider of secure electronic payment solutions for card-based transactions in the physical world and over the Internet. The company offers a complete range of payment software products for credit, debit, commercial and procurement card applications, as well as being a world leader in the deployment of payment solutions for Internet commerce that are fully SSL and SET(tm) compliant.

Trintech’s range of scalable open systems architecture solutions for UNIX(R) and Windows NT(tm) platforms covers consumer, merchant and financial institution requirements for physical payments and the emerging world of electronic commerce.

Trintech can be contacted in the U.S. at 2755 Campus Drive, San Mateo, CA 94003 (Tel: 650/227-7000) and in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel: 353-1-207-4000). Trintech can be reached on the Web at [][2].



eBanker USA Buys HK Portfolio

eVision USA.Com, Inc. , an integrated online solutions provider, announces that its subsidiary, eBanker, Inc. (eBanker, [][1]) has acquired a $9.2 million portfolio of credit card accounts receivable (approximate book value as of December 31, 1999) from MBf Card International Limited of Hong Kong, for a total consideration of approximately $7.7 million.

The portfolio, as of December 31, 1999, consisted of 92% of current accounts receivable and 8% of 1 to 30 days past due accounts receivable. The portfolio, which has been in operations for over 6 years, has approximately 17,000 cardholders.

Under the terms of the agreement, 60% of the total consideration, or approximately $4.6 million, was paid at the time of closing of the agreement, with the balance of approximately $3.1 million due six months after closing, subject to adjustments based on a review of the portfolio as of January 31, 2000.

“With the signing of this agreement, eBanker has made a further strategic move into the credit and lending market. At the same time, we believe this agreement provides eBanker with the opportunity to earn a substantial return on its investment, as we are purchasing the portfolio of receivables at a total consideration well below its par value,” stated Fai H. Chan, Chairman and Chief Executive Officer of eVision.

eBanker is an online financial services corporation with the mission of identifying and serving high-margin, financial market niches. eBanker is a 37% owned consolidated subsidiary of eVision.

eVision’s consolidated subsidiaries and significant equity investments operate within five distinct divisions: eFinance, eServices, eCommunications, eInformation and eMedical.



Real-Time VISA Balances

Pennsylvania State Employees Credit Union announced an enhancement to its VISA credit card program that allows payment transactions to be immediately reflected on accounts.

With the implementation of “Auth Plus,” all credit card transactions are routed online through PSECU’s VISA processing center, First Data Resources of Omaha, and then immediately to PSECU for authorization. Generally, most financial institutions use a database that is 24-48 hours old for authorizations.

PSECU President Greg Smith provided an example. “Let’s assume that you’re a member of PSECU on vacation in Florida. At dinner, you realize that you haven’t made your VISA payment for the month and your dinner purchase will likely be denied. You excuse yourself from the table, find a nearby pay phone, call PSECU’s 7 by 24 hour, toll-free electronic phone system and make your payment. With the real-time update, your credit limit is replenished by the time you give the waiter your card.”

Members using online banking to make a VISA payment will also enjoy the same real-time update to their VISA card credit limits.

Earlier this year PSECU announced on-line paid check images, e-Statements and free Internet service. PSECU is Pennsylvania’s largest credit union with assets of $1.4 billion and more than 270,000 members.


NextCard – Paytrust

NextCard announced Tuesday an alliance with to provide NextCard cardholders with the option to receive, review, pay and organize all of their bills online. Under terms of the agreement, and NextCard will collaborate to develop the ‘NextCard Bill Center’ specifically for NextCard users at Using its patent-pending bill management technology, the Paytrust service is compatible with any biller and any bank, and can accommodate both paper and electronic bills to deliver complete, consumer-focused EBPP. With the Paytrust service, NextCard cardholders will be able to view and pay all of their bills online. The agreement also includes a strategic equity investment by NextCard in


Smart Canadians

The number of smart cards in circulation in Canada is expected to exceed 35 million cards by 2004, according to a report released yesterday by Ontario-based Technology Surveys International. The number of chip-cards issued in Canada in 1999 was in excess of 4.5 million units. Almost 85% of that was accounted for by smart cards issued by the telecommunications sector, encompassing cards for both payphone and GSM applications. The report says total investment into chip-card systems in Canada is expected to exceed $500 million over the next five years. This includes investment into chip-cards, terminals, software and professional services. VISA Canada recently gave the green light to its members for smart VISA cards.


ATM/Debit Card Usage

FL-based Star Systems released a survey of 8,486 financial account holders in 21 states served by the ‘STAR Network’. The report shows that in the 30 days prior to the survey, ATM/debit cardholders used their cards an average of 16.8 times, or about four times a week. Eighty-five percent of cardholders surveyed said they used their card at least once during the previous 30 days and 84% said they used the card for a POS transaction during that time. POS transactions accounted for nearly half of monthly usage as cardholders reported an average of 7.9 POS transactions in the previous 30 days, or about two such transactions every week. Half of those polled preferred the PIN-based transaction, while 31% prefer the signature-based transaction. Fifty percent of those who prefer the PIN-based transaction cited fraud protection as their major reason. Asked about other electronic services they’d like to try, a significant number of consumers indicated they would be more likely to use a personal computer for home banking services if the services were authorized by a PIN. More than two-thirds of those polled said a PIN code for home banking was “very important” and another 15 percent called it “fairly” or “somewhat” important.


Wireless MIST Solution

MIST Inc., a division of NBS Technologies Inc. announces the formation of a comprehensive solution to allow retailers to provide secure credit and debit transaction services to their customers with the convenience of a fully-integrated mobile, wireless terminal. The versatility of MIST’s relationship with GTE Wireless, Atomic Software and POS Systems gives retailers the ability to process transactions at non-traditional points-of-sale.

“Our alliance with GTE Wireless, Atomic Software and POS Systems has created the most comprehensive, end-to-end solution in the wireless transaction processing marketplace,” says Charles Lee, President and CEO of MIST Inc. “With actual successful implementations of this program under our belt, our proven track record demonstrates to retailers and service providers the security, flexibility and benefits of incorporating our wireless solution into their businesses.”

Comprehensive Solution for the Wireless Marketplace

The solution brings the advanced MIST Freedom wireless terminal together with select industry vendors to create a premier service offering for the marketplace. Backed by the GTE Wireless data network, the MIST Freedom terminals are bundled with Atomic Software to provide fast, reliable connections to a wide range of credit and debit processors. POS Systems serves as the professional services arm of the solution, offering complete support services from initial installation throughout the implementation, including on-line and help desk support.

“We are extremely proud to join in this teaming of industry leaders by bringing the highest level of service to the program,” remarks Ken McDonald, President of POS Systems. “Customer satisfaction is the collective goal of this partnership, and we have established an infrastructure to effectively manage the delivery of all levels of support for this wireless solution, from application project management to day-to-day support.”

Wireless Solution Successfully Implemented at GTE Events

MIST successfully demonstrated their MIST Freedom wireless solution at two recent GTE sponsored events, the Houston Rodeo and the GTE Seniors Golf Classic. At both events, MIST Freedom terminals were utilized to process credit transactions at remote merchandise and food locations, giving the event managers the flexibility to accept non-cash payments at even the smallest kiosk.

“The successes we have had with the MIST Freedom solution at recent events reinforces the strength of our business relationship and the reality of today being able to offer next-generation network and transaction services to customers anywhere,” states Ed Huelsman, Manager, Data Services for GTE Wireless. “Together with MIST, Atomic Software and POS Systems, we look forward to more successful implementations of this powerful, comprehensive solution.”

“As the secure gateway from the wireless terminals to the service processors, our software complements the advanced technology of the MIST Freedom solution the established wireless network of GTE Wireless and the superb professional services offered by POS Systems,” said Thomas McCole, President of Atomic Software. “By connecting the MIST Freedom wireless terminal to the leading credit and check service processors, we have created a solution with limitless possibilities for customers and with incredible potential for widespread market growth.”

About MIST

MIST designs, manufactures and distributes wired and wireless POS transaction terminals and related software including payment and transaction gateways from its facilities in Montreal and Mississauga. The company has an installed base of over 500,000 terminals and its customers include a number of Canadian and international chartered banks and financial institutions. MIST is a division of NBS Technologies.

NBS Technologies Inc. designs, manufactures and markets an integrated line of card, card issuance, identification and transaction systems, products, services and software. NBS serves a wide range of international customers, including financial institutions, retailers, telecommunication companies, government agencies and healthcare organizations. The Company operates manufacturing facilities in North America and distributes its products worldwide through sales offices in North America and the United Kingdom and an international dealer network.

About GTE

With 1998 revenues of more than $25 billion, GTE is a leading telecommunications provider with one of the industry’s broadest arrays of products and services. In the United States, GTE provides local service in 28 states and wireless service in 18 states, as well as nationwide long-distance, directory, and internetworking services ranging from dial-up Internet access for residential and small-business consumers to Web-based applications for Fortune 500 companies. Outside the United States, the company serves customers on five continents. Additional information about GTE can be obtained at [][1].

About Atomic Software

Atomic Software is a venture-funded company that provides a secure payment gateway service for wireless and Internet merchants including retailers, mail/phone order companies, Web merchants, and restaurants. The e-comPort is certified by the nation’s leading payment processors and by thousands of banks. For more information, visit our Web-site at [][2] or call Walter Murphy at 678/942-2600.

About POS Systems

POS Systems Company, Inc. (POS Systems) headquartered in Phoenix, Arizona, has been providing point-of-sale terminal management services since 1982 to financial institutions, ISO/MSP’s, sales agents, C-stores, private label lenders and large corporate customers. POS Systems is known for its flexibility and consistent quality of service in sales, rental and leasing point-of-sale equipment, bundled with deployment, merchant training, 24-by-7 help desk and repair. POS Systems supports upwards of 200 terminal applications on all major networks and is a registered equipment service organization (ESO) with Interlink for PIN encryption. On-line order entry, status review and reporting of customers’ database and merchant activities through its proprietary system, POWERTRAK(SM), complements the services provided to POS Systems’ customers. For more information, contact Dale Bogue or Ray Rockwell at 800/699-5090 or visit our Web site at [][3].



Atomic Card Pipeline

Atomic Software announces the availability of a payment pipeline designed to provide seamless integration between Microsoft’s Site Server Commerce Edition and Atomic’s iAuthorizer payment service. The pipeline is a component selected to complete an on-line real time credit card payment for e-commerce sites and is available for download from Microsoft MSDN or from Atomic as part of its API Developers kit. ([][1])

E-commerce sites developed using Site Server can add real time transaction processing by linking the site’s order form to Atomic’s iAuthorizer payment portal. The pipeline component formats the information needed by payment processors to complete a credit card transaction. iAuthorizer is certified on all major payment networks for credit card transactions and is in the forefront of supporting purchase card transactions on the Internet. Purchase cards are used increasingly in business to business transactions on the Internet. Atomic’s iAuthorizer service supports level 2 and level 3, on selective financial processors.

“The availability of the pipeline greatly expands the marketability of our service and allows users to work with a premier provider in the Internet space.” notes Walter Murphy VP of Business Development for Atomic. “By working with Microsoft, we can make a site developer’s life a little less stressful.”

Atomic Software will exhibit at Spring Internet World, April 5 – 7, (booth 5045) and at Microsoft’s Pavilion at Spring Networld + Interop 2000, May 9 – 11.

The Payment Pipeline is added to the API Developer’s kit for the iAuthorizer payment service. The kit provides scripts for CGI, HTML, Java, Perl, ColdFusion. Atomic Software is a member of the Microsoft ISV program and publisher of the popular Authorizer transaction software, which runs under Windows 95/98 and NT and is available through thousands of banks and financial processors. Atomic also markets wireless transaction processing through its eComPort service from wireless transaction terminals manufactured by IVI/Checkmate, MIST, Tillsmith and Dassault AT.



Sears Commercial Cards

Sears, Roebuck and Company selected Bank One yesterday as the sole commercial credit card issuer for purchasing, business travel and fleet management expenses. By mid-2000, Sears will convert approximately 30,000 cards from multiple providers to Bank One’s ‘MasterCard’. Bank One says the Sears commercial card program will be one of the largest one-card implementations ever in the US. Unlike VISA, MasterCard has adopted a one-card for its commercial programs. Bank One introduced MasterCard commercial cards in 1992 to serve the treasury management needs of commercial and government organizations.


Debit Card Surge

Off-line debit card volume surged 37% last year, nearly four times the growth in credit card volume. However the increase in the number of off-line VISA and MasterCard debit cards issued has slowed from 25% between 1997 and 1998, to 15% last year. According to CardData ([][1]), debit card dollar volume has doubled over the past twenty-four months from $110.5 billion to $218.8 billion. ‘VISA Check’ continues to dominate the signature-based debit card market with an 84% share, based on dollar volume, and a 73% share, based on cards issued. ‘MasterMoney’ has consistently held a 16% marketshare for the past three years.

Dollar Volume 99 98 97
VISA $183.8b $134.7b $ 93.7b
MasterCard $ 35.0b $ 25.0b $ 16.8b
$218.8b $159.7b $ 110.5b

Number of Cards Issued 99 98 97
VISA 84.5m 73.8m 58.0m
MasterCard 30.5 26.6 22.1m
115.0m 100.4m 80.1m

Source: CardData (