eConnect will announce this morning an agreement to supply 1,000 free ‘eCashPads’ to Kanakaris Communications. eConnect also announced this week it has structured a licensing arrangement with PalmPilot to enable first-ever wireless hand-held Internet terminal transactions. The eConnect ‘eCashPad’ simply attaches to the consumer’s computer keyboard, enabling Kanakaris customers to download entertainment programs with a card swiped “bank eyes only” cash ATM card and PIN payment or a credit card payment, whereby Kanakaris Communications never sees the credit card data nor is the credit card stored at the KKRS Web site. eConnect says it expects to distribute 100,000 ‘eCashPads’ to major Internet business sites. The PalmPilot deal is part of a joint venture deal with FL-based Pilot Island Publishing’s ‘PocketPay’ solution. EConnect’s has been a high-flying stock this week.Details
MasterCard said Thursday that the public sector and recurring payments represent huge growth opportunities for payments cards in the next few years. Out of annual Federal and State tax payments of almost $450 billion, today only one percent is paid using payment cards. Similarly, only five percent of the $37 billion Americans spend at the Post Office each year is paid using payment cards, and two percent of the $14 billion collected by Motor Vehicle offices around the country. Utility bills, cable TV, insurance, Internet service providers, and newspaper delivery are areas where recurring payments are now popular. On-line services now account for 80 percent of recurring payments. MasterCard’s research shows that 56 percent of current credit card users would consider recurring payments for other bills. Nineteen percent of those not participating in recurring payments would at least consider a trial using their credit card.Details
QSI Payments launched the ‘SafeDebit’ credit card issuance system, which allows consumers to securely pay for purchases on the Internet with funds withdrawn directly from their checking or savings accounts. The development of the ‘SafeDebit’ system is the result of a strategic partnership with NYCE Corp. By relying on a CD-ROM card and an electronic personal identification number, ‘SafeDebit’ enables secure purchase transactions anytime, anywhere from any PC that has Internet access and a mini-disk capable CD-ROM drive. Upon virtual checkout, consumers insert their ‘SafeDebit’ cards into the computer’s CD-ROM drive and enter the e-PIN provided by their financial institutions.Details
Datakey, Inc. and CyberTrust announced they will provide their information security technologies to the Department of Defense for its ‘Commercial PKI Security Assessment Pilot’. The one-year pilot program, which will be implemented by General Dynamics Communication Systems, is designed to help the DoD evaluate the feasibility of having commercial organizations provide high-assurance (Class 4) digital certificates to the DoD and other government agencies. Datakey smart cards form an important component of the DoD pilot because Class-4 certificates must be stored on cryptographic hardware tokens such as smart cards. A private key, the private portion of a user’s digital credentials, is generated and permanently stored on the Datakey smart card, and all encryption using the private key is performed on the card so the key is never available for someone to steal or copy.Details
MerchantOnline.com Inc. announced today it has agreed to acquire 90.1% of Phoenix-based Innovonics Inc. in exchange for five million shares of MerchantOnline.com common stock. Innovonics invented, developed and manufactures the ‘PC Pay’ card-swiping device that plugs into personal computers. The ‘PC Pay’ device, which accepts ATM, debit, credit and smart cards, incorporates a patented encryption technology. The patented technology used in the PC Pay device is unique in the world of eCommerce, in that sensitive information is encrypted within the secure device, about the size of a PC mouse, before entering the potentially vulnerable PC.Details
IVI Checkmate Corp. announced the release of ‘e-Signia, a comprehensive image capture and retrieval solution that significantly reduces operating expenses associated with handling and retrieving credit card receipts. ‘e-Signia’ assist retailers in reducing the expenses, penalties and losses that result from credit card chargebacks. ‘e-Signia’ is now available and is being sold through IVI Checkmate’s direct salesforce and their value-added reseller network to supermarket, department store, mass merchandise, discount store and specialty retail chains throughout North America.Details
NextCard and E-Commerce Exchange yesterday announced a reciprocal marketing agreement to reach the 40,000 NextCard Affiliates and 30,000 E-Commerce Exchange Merchants and Affiliates. Under the terms of the agreement, NextCard will offer merchant accounts to its Affiliates and customers. In addition, ECX will offer their merchant customers and extensive network of Affiliates the opportunity to apply for and re-sell the NextCard Internet VISA.Details
Authorize.Net and Planet Payment have launched a joint venture to provide end-to-end payment solutions for online merchants located outside of the U.S. and U.S.-based merchants who wish to implement a non-U.S. or multi-currency Internet payment solution. The venture will be marketed under the ‘Planet Payment’ brand, and will be powered by Authorize.Net. The ‘Planet Payment Gateway’ and Planet Payment’s Internet payment solutions will allow online merchants everywhere the ability to accept credit card payments in more than 140 currencies. The gateway is scheduled to be available in early April. Authorize.Net currently provides payment solutions for more than 65,000 online merchants.Details
Dublin, Ireland-based CardBASE Technologies announced the closing this week of additional investment in the company of US$7.7m. This latest fundraising values the company at approximately US$46m. The main shareholders now include founder and CEO, Aonghus Geraghty, ICC, Denis O’Brien, JAFCO, Gemplus, Enterprise Ireland, members of the management team and a number of private investors.Details
PaylinX Corporation, the recognized leader in payment solutions for Internet businesses, call centers and large enterprises, introduced EnterpriZ Gateway, a payment solution especially architected for companies providing application and transaction services to merchants and other companies.
Today’s announcement coincided with the annual meeting of the Electronic Transactions Association, an international trade association representing businesses that provide transaction processing products and services to merchants.
“The business of payments is booming,” states John J. (Jack) McDonnell, chairman and CEO of the three-year-old software company. “In the past year, PaylinX has made huge gains in market share with large-volume merchants. Now we’re ready to help companies provide credit card and other payment services to organizations that want to outsource their payment needs.”
EnterpriZ Gateway is a multi-merchant version of the enterprise payment server that PaylinX introduced in 1996, called EnterpriZ Engine.
“We’ve eyed the ISP, CSP and ASP market for a few months,” says McDonnell. “We talked to service providers wanting to integrate payment services into existing product suites. We talked to merchants with smaller transaction volumes. We talked to merchants with large volumes who want to outsource. We quickly realized that PaylinX has much to offer to aggregators.”
“Large or small, every company wants to provide excellent customer service,” McDonnell explains. “So many of EnterpriZ Gateway’s capabilities are borrowed from EnterpriZ Engine’s secure, reliable payment processing platform.”
McDonnell continues, “This includes fast, real-time processing of payments needing authorization, such as credit card purchases; handling multiple payment forms such as credit cards, electronic checks and procurement cards; a single, integrated enterprise-wide solution for payments originating from multiple channels, whether over the Internet, through call centers and IVR systems, through the point-of-sale and self-service kiosks; a secure, scalable and reliable payment processing platform.”
Still, multi-merchant environments have unique requirements, McDonnell explains further. For example, he says, “EnterpriZ Gateway uses our proprietary Payment Pipe(TM) technology to connect to multiple processors / merchant banks from a single server so that one merchant can use Merchant Bank A and another Merchant Bank B. EnterpriZ Gateway also stores transaction information in a database with ‘firewalls’ so that one merchant can’t access another merchant’s data. It also offers Web reporting so information distribution is simplified.”
“We’re committed to delivering a robust, scalable solution suitable for multi-merchant environments in EnterpriZ Gateway,” McDonnell concludes. “This means delivering the right technology, the right features and the right services.”
PaylinX Corporation is the recognized leader in payment solutions for Internet businesses, call centers and large enterprises. In 1996, PaylinX pioneered a new approach to enterprise-wide payment processing, a payment server. The PaylinX payment server, called EnterpriZ Engine, is a robust transaction processing platform that operates behind the scenes to authorize and settle credit card and other payment transactions in real-time through built-in connections with third-party processors and merchant banks, all in seamless integration with legacy front-end, customer relationship and financial management systems. The fully scalable PaylinX payment solution enables organizations to accept and process payment transactions across multiple channels – Web storefronts, call centers, interactive voice response (IVR) systems, in-store point-of-sale systems and kiosks – all through a single, uniform payment architecture. PaylinX may be reached at (314) 692-0929 or [www.paylinx.com].
Drexler Technology Corporation announced it has received a $1.2 million purchase order originated by the U.S. Department of Defense for hundreds of LaserCard reader/writer drives plus associated Company-written system software compatible with Microsoft Corporation’s network-oriented Windows NT. The hardware/software upgrade program begins in April and is scheduled for completion in August 2000.
“The commercial significance of this program is not only in boosting the installed base of Drexler’s latest model LaserCard drives and software, but also in the dollar value of follow-on orders for optical memory cards for this DoD application over subsequent years,” commented Drexler’s president, Richard M. Haddock. Drexler’s LaserCard optical memory cards are the digital data-storage media utilized in the DoD application, called the Automated Manifest System.
Company-written system software is provided with the LaserCard drives to create subsystems compatible with a Microsoft network-oriented Windows NT operating system. The Company’s system software, known as a Windows NT device driver, interfaces the reader/writer drive to a personal computer so that the LaserCard data system can write, read, delete, and update data on the LaserCard in much the same way as magnetic floppy disks and hard drives are used. The Windows NT device driver architecture is related to the Company’s U.S. patent 5,029,125 entitled, “Method of Reading and Writing Files on Nonerasable Storage Media.”
Headquartered in Mountain View, Drexler Technology Corporation is the world’s leading manufacturer of credit-card sized optical memory cards that store up to 4 megabytes of data, and hybrid smart cards that store 1 megabyte of data. Drexler’s wholly owned subsidiary, LaserCard Systems Corporation, manufactures reader/writer drives used with optical memory cards and develops and markets LaserCard optical memory card systems and related software. The Company has been issued over 50 U.S. patents related to optical memory cards, systems, and optical storage media plus a total of about 70 foreign counterpart patents granted in a dozen countries.Details
Nestor, Inc. today announced that the Royal Bank of Canada has licensed Nestor’s PRISM 5.0 case management and workflow system to respond more effectively to high-risk transactions and minimize fraud-related charge-backs. Introduced in December, PRISM 5.0 is a Windows NT-based client/server application that brings comprehensive fraud operations management to the desktop.
“Royal Bank is continually seeking ways to optimize and enhance our risk management operations, and to protect our credit card customers from the threat of fraud,” said Robert Fodor, risk manager fraud prevention and control at Royal Bank. “PRISM’s comprehensive and customizable case management and workflow queuing system offers a level of fraud management and control that is unmatched in the industry,” Fodor added.
PRISM 5.0’s case management system enables fraud analysts to analyze and block suspicious accounts, record cardholder correspondence, forward fraud alerts to other reviewers, and take other proactive steps to prevent fraud. With PRISM 5.0’s flexible workflow system, fraud managers can define levels of priority, direct fraud alerts to specific investigators based on pre-defined criteria, and generate detailed reports on fraud detection performance, queue utilization efficiency, and the effectiveness of fraud analysts in pursuing fraud cases.
Additionally, PRISM’s open software framework will enable Royal Bank to enhance fraud-control efficiency by interfacing their fraud operations to the bank’s card authorization system and other external applications. This open software design will also allow Royal Bank to customize PRISM’s fraud control “action buttons” to meet their unique processing needs.
“We’ve installed PRISM for our clients around the world, and have learned that, while card issuers share a common goal of detecting and preventing fraudulent transactions, each organization employs unique methods to achieve this goal,” said Sushmito Ghosh, Nestor’s executive vice president. “With PRISM 5.0’s redesigned core software architecture, we’re able to provide Royal Bank with a truly flexible and modular software platform that gives them the power to configure the system to best meet their specific fraud-control requirements.”
About Royal Bank
Royal Bank of Canada (RY) is a diversified global financial services group and a leading provider of personal and commercial banking, investment and trust services, insurance, corporate and investment banking, on-line banking and transaction-based services including custody. The group’s main business units include Royal Bank, RBC Dominion Securities, Royal Investment Services, RBC Insurance and Global Integrated Solutions. The group has 50,000 employees who serve 10 million personal, business and public sector customers in 30 countries. For more information, visit Royal bank’s web site at [www.royalbank.com]
Nestor, Inc. is a leading provider of intelligent decision-support solutions for the financial services and e-commerce industries. Nestor’s client/server products incorporate innovative pattern-recognition technologies ideally suited for data-intensive, mission-critical decision applications in real-time environments. The company’s products provide predictive fraud detection and case management for e-commerce fraud, credit, debit, retail and commercial card fraud, as well as merchant fraud and customer relationship management. Nestor products are sold direct and by selected partners worldwide. Through its affiliate, Nestor Traffic Systems, Inc., the company also applies its technologies to a suite of video-based intelligent transportation systems that promote enhanced traffic management and improved safety.