No Fireworks

Baltimore-based Creditrust failed to impress investors yesterday with its delayed fourth quarter earnings report. In heavy trading Creditrust’s stock price fell about $2.00 per share to close at $8 per share. Last week the company said it would release its earnings report and report a favorable material corporate development. The news sent the stock from $7 to $10 per share. In July the stock peaked at $34 per share. For the fourth quarter, net earnings, prior to special charges, were $4.7 million versus net earnings of $6.3 million for the third quarter. Creditrust, a credit card collection firm, incurred three non-recurring special charges in the fourth quarter including $1,300,000 payable to a seller in connection with a reduction in a forward flow; $436,000 for legal and accounting costs associated with our financing activities; and $322,000 for legal and accounting fees related to the Form 8K investigation. In October a former management employee misdirected $500,000 in corporate funds by submitting an unauthorized check request and then seeking to redirect those funds through Creditrust’s collection payment stream. Creditrust also announced Monday it has entered into final negotiations, based upon an agreed upon term sheet, for $55 million in additional secured debt. The company says it has terminated all forward flow agreements or allowed them to expire and does not believe that there are any remaining purchase commitments. Creditrust says it anticipates purchasing opportunistically in the open market as the pricing has been more advantageous recently. For complete 4Q/99 and full-year 1999 financials visit CardData ([][1]).



Radicchio Adds 11

Eleven more members have joined Radicchio, the global industry initiative promoting security in wireless e-commerce: AU-SYSTEM, BROKAT Infosystems, CMG Finance, Graphium Danmark, Heyde, Netlife, Oberthur, Omnitel, Secunet, Swisskey and Tantau.

The members will elect the Radicchio Advisory Board at the second members’ meeting planned for 16 March in Munich. In the meantime, interim working groups of members are focusing on key issues, including: marketing of PKI; SIM cards/card technology; registration issues in worldwide PKI; the regulatory and legal environment for digital signatures and PKI; and best practices/showcases.

“With such a strong and diverse membership, Radicchio is already recognised as the mobile industry voice of PKI. Radicchio will definitely be the driving force for common PKI standards that make transactions over a mobile device secure,” said Stefan Engel-Flechsig, Sonera SmartTrust’s contact for Radicchio. “Our members recognise that the industry has to work together to reap the full rewards from the mobile commerce revolution.”

Promoting PKI based security

Launched in September 1999 with Sonera SmartTrust, Gemplus and EDS (Electronic Data Systems) as initial members, and with the support of Ericsson, Radicchio was created to enable a dynamic global market for secure wireless e-commerce. As a consortium of the industry’s leading wireless e-commerce companies, Radicchio will persuade international organisations and government bodies of the importance of supporting security in global mobile e-commerce and of taking into account the growth potential of mobile e-commerce when drafting new legislation.

Worldwide co-operation and leadership

Radicchio is well on its way to becoming the worldwide industry voice and authority for PKI enabled secure wireless e-commerce. The members include certification authorities, mobile operators, systems integrators, device manufacturers, software companies, financial institutions, smart card manufacturers and telecom infrastructure companies.

Radicchio continues to recruit members to support this global initiative. Companies and organisations interested in membership should visit Radicchio’s website at [][1].

Members’ Information

New members


“AU-SYSTEM has a long experience of helping clients pioneer secure Internet and mobile solutions for banking and stock-trading. We see the Radicchio initiative as a key enabler for secure wireless Internet solutions and an important step towards unified electronic commerce from all kinds of devices,” said Anders Cedervall, Executive Vice President of AU-SYSTEM.

Anders Cedervall, Executive Vice President

BROKAT Infosystems AG [][2]

CMG Finance B.V.

“CMG is amongst others providing Wireless Banking ICT-services in the Financial Arena. The industry initiative Radicchio adds to CMG’s vision that common PKI standards are a necessity to make Wireless Commerce successful,” says Rob Blans, Sector Director CMG Finance. “We are very pleased to become a member of Radicchio and look forward to working with other members towards a secure wireless Internet environment.”

Helen Hosman, Corporate Communications Manager

Graphium Danmark

“Graphium Danmark are looking forward to joining the international forum for securing mobile wireless e-commerce together with the global industry leaders,” said Thomas Knudss0n, Vice President of Graphium Danmark.

Thomas Knudsson, Vice President

Heyde AG

“For us, membership of Radicchio enables early access to all future trends in this area,” said Matthias Sohler, Member of the Management Board.

Joachim Fleing, Investor Relations

Netlife AG

“We’re proud that Netlife – a global provider of e-business solutions for e-brokerage, Internet payment and mobile commerce – can count itself among the selected “initial members” of Radicchio,” said Claus Muller, CEO and Chairman of Netlife AG. “With our solutions for mobile handsets, we’ll make a decisive contribution to wireless e-commerce and to the success of Radicchio”.

Andrea von Buchholtz, Public Relations Manager


“Oberthur is strongly committed to open standards and believes Radicchio is essential to the advancement and global acceptance of wireless e-commerce,” said Product Manager for Wireless Applications Guido Mangiagalli. “Along with other Radicchio members, we look forward to developing and maintaining the highest e-commerce standards and real interoperability to ensure the most universal and secure environment,”

Guido Mangiagalli, Wireless Applications Product Manager

Omnitel Pronto Italia S.p.A.

“The GSM phone has become part of our everyday life, particularly in Italy, and we are proud to be part of this change. Omnitel’s results are achieved by giving the highest possible level of attention to our customer’s needs.” said Valerio Zingarelli, Chief Technical Officer. “The incredible success of GSM in Italy is driving Omnitel towards further enhancing its services, with mobile phones playing a fundamental role in accessing e-services (such as stock trading, ticketing and mobile banking). Security is a critical issue in developing these services. Omnitel believes that the Radicchio initiative is an opportunity for the industry to accelerate the issue of European standards and to create interoperable trusted PKI infrastructures.”

Franco Angelini, Manager of Value Added Services of Network Department

Secunet AG

“Electronic business needs support for strong authentication and privacy. This is even more true for wireless commerce. Security infrastructures are the ideal candidate to establish the trust required by consumers, suppliers and service providers” says Michael Gehrke, Member of the Board of Management Sales at Secunet, “As the market leader for security services in Germany committed to vendor neutral consultancy and customized security solutions, we are looking forward to participating in the Radicchio initiative promoting these ideas.”

Matthias Besch, Manager E-Commerce


“We at Swisskey are convinced that Radicchio is the organization to drive wireless secure applications with digital certificates. We see traditional smartcards as a good technical solution to handle digital certificates but the lack of PC integration will make the deployment very slow and expensive. Mobile phones represent the perfect alternative to avoid this bottle neck and will soon become the real personal security device enabling safe and successful e-business.”,” said Christian Graber CEO of Swisskey.

Christian Graber, CEO


“The unprecedented volume of wireless transactions will define new requirements for the secure transmission of data between users and enterprises. TANTAU’s Wireless Internet Platform offers this security and enables an enterprise to take full advantage of high volume transactions without sacrificing scalability or a direct link to the customer,” said John Sims, president and CEO of TANTAU Software, Inc. “TANTAU has joined Radicchio because we are committed to providing vital security technology to enterprises for high-volume m-commerce applications.”

John Sims, President and CEO

Existing members

724 Solutions Across Wireless AB Baltimore Technologies Certicom CYLINK Corporation Diversinet Corp. EDS Entrust Technologies Ericsson Gemplus Geoworks Corporation Giesecke & Devrient Gray Cell Inc. iD2 Technologies Infineon Technologies InterClear Service

Ltd Lucent Technologies MasterCard International Minick AG – part of the Distefora information movement Mitsui & Co., Ltd mobile solutions AG Mobile Telephone Networks – MTN NTT DATA Corporation Inc. Saraide Schlumberger Setec Siemens AG Sonera SmartTrust Synamic Limited TC TrustCenter Texas Instruments VeriSign, Inc. Virgin Mobile Visa International Vodafone AirTouch



Pep Boys Card

Automotive aftermarket retail and service chain, Pep Boys, has launched a private label credit card with GE Card Services. Under terms of the GE deal, Pep Boys will join the ‘CarCareOne’ network which will expand its cardholder base by hundreds of thousands, and increases card acceptance from 662 locations to more than 5,000 nationwide, ‘CarCareOne’ network participants. Pep Boys is also offering 10% off a customer’s first charge when customers apply for and use the card, now through March 31. The card features 90-days same-as-cash on all purchases over $150 with a minimum monthly payment required; 25 day interest free grace period on all purchases under $150; and emergency roadside assistance services that covers jump starts, towing (up to 25 miles), tire change (with an inflated spare), fluid replacement, and lock-out service. The company will heavily promote application and use of the card at its stores through traditional marketing and sales promotion techniques, plus a five-week employee incentive program that rewards employees every time they process 10 approved applications.


Signio Licenses BSAFE

RSA Security Inc. announced that Signio, Inc., a leading provider of secure, scalable, Internet payment services, has licensed RSA BSAFE Crypto-C and RSA BSAFE SSL-C software for its Payflow Pro secure payment processing services. RSA Security’s technology is embedded across the Payflow platform in order to encrypt all of the data that is processed from any merchant site through Signio’s service, providing businesses with an added layer of security and authenticity in processing e-commerce transactions.

By licensing RSA BSAFE Crypto-C and RSA BSAFE SSL-C software, Signio offers merchants a robust, seamless payment processing solution to meet their online transaction needs. Signio’s Payflow Pro solution is designed to give merchants a cost-effective Internet payment option that includes consolidated payment services for credit cards, debit cards and Internet checks for a flat monthly fee. Automatic clearinghouse transactions are also available. Unlike other HTTP based payment solutions, Signio maintains the data during the entire process to help mitigate risks and promote trouble free transactions.

“RSA Security technology is a key enabling technology for our Payflow Pro solution as e-commerce retailers have come to rely on us for our security, performance and scalability,” said Philippe Courtot, CEO and chairman of Signio, Inc. “We are pleased to be working with RSA Security, the leader in encryption technologies, to provide our merchants added assurance that their online transactions are protected by the highest level of security.”

“We are pleased to be working with Signio to provide the underlying security for online payment processing,” said Scott Schnell, senior vice president of marketing at RSA Security. “There is no greater benefit to merchants than having trust in knowing that all transactions conducted online are protected and secure. The strength of our combined solution is unmatched in the industry and can help e-commerce continue to grow at a record pace.”


RSA BSAFE Crypto-C software is one of the world’s best-selling cryptography engines and provides software developers with multiple algorithms and modules for adding encryption and authentication features to applications. RSA BSAFE Crypto-C software includes modules for popular security encryption techniques, such as RSA(TM), DES, RC2(R), RC4(R), RC5(TM) and Elliptic Curve Cryptography (ECC), and is also designed to support digital signatures and certificates.

The RSA BSAFE SSL-C product gives developers everywhere a comprehensive set of fully supported security components for building SSL v2 and v3 compliant applications. RSA BSAFE SSL-C allows developers to market and deploy these applications with trusted RSA strong encryption outside the U.S.

About Signio

Signio, Inc. delivers a highly scalable and reliable Internet payment platform to help businesses profit from the rapidly expanding e-commerce market. With its revolutionary flat-fee monthly pricing model and growing menu of services, Signio brings affordability and convenience to the process of selling online. Signio provides seamless connectivity across the Internet, from e-commerce applications to all major back-end payment processors and quickly enables companies to authorize, process, and manage multiple payment types (including credit cards and electronic checks), multi-currency options and different payment schemes. Signio is headquartered in Redwood Shores, CA. Signio announced on December 20, 1999, that it will be acquired by VeriSign, Inc., the leading provider of Internet trust services. For more information about Signio, visit

About RSA Security Inc.

RSA Security Inc., The Most Trusted Name in e-Security(TM), helps organizations build secure, trusted foundations for e-business through its RSA SecurID(R) two-factor authentication, RSA BSAFE(R) encryption and RSA Keon(TM) public key management systems. With nearly a half billion RSA BSAFE-enabled applications in use worldwide, more than six million RSA SecurID users and almost 20 years of industry experience, RSA Security has the proven leadership and innovative technology to address the changing security needs of e-business and bring trust to the new, online economy. RSA Security can be reached at


Counterfeit Cop Deal

ConSyGen announced an agreement with Cardservice International to market ConSyGen’s counterfeit detection device to Cardservice’s new and existing merchants. The “Counterfeit Cop” is able to detect counterfeit identification documents, credit cards, currency, traveler’s checks and other types of items used for monetary exchange, giving merchants an added method of protection against fraud. Cardservice International will utilize the sales expertise of its DS-MAX offices to present this product to businesses along with its other transaction processing equipment and services.

The Counterfeit Cop is a strong adjunct to Cardservice International’s credit and ATM/debit card processing, check guarantee, purchasing card and electronic commerce services. Cardservice will order a minimum of 20,000 Counterfeit Cop units, which will be offered to the company’s merchant base of more than 170,000. The product will retail to merchants for $199.

“The benefit of the Counterfeit Cop to merchants is twofold: It is a great value because it is so inexpensive, and it is an excellent way to reduce the risk of fraud at the point of sale,” said John Burtzloff, senior vice president of Cardservice International’s Sales Group.

Jason Genet, ConSyGen’s chief operating officer expressed excitement about the agreement and stated “Cardservice International represents a powerful sales channel. We are very enthusiastic about the partnership.”

About Cardservice International: Cardservice International, Inc., is a global leader in providing real-time secure credit card transactions to merchants. Cardservice offers merchants a cost-effective service tailored to their businesses, enabling them to provide credit card processing over the Internet as well as to the traditional marketplace. The company’s LinkPoint Secure Payment Gateway(SM) utilizes state-of-the-art Secure Sockets Layer technology and is easily scalable to any size business. The gateway is designed to communicate in real time with a business’ core data-processing system to allow online transactions to be posted immediately. The gateway also delivers a full range of capabilities, including sales, returns, authorizations, online check processing and comprehensive real-time reports for easy Web management.

More than 170,000 merchants have contracted with Cardservice International. Of those, 50,000 are actively using Cardservice and/or the LinkPoint Secure Payment Gateway as their Internet solution. For more information about Cardservice International, go to

Cardservice International, Inc We enable merchants to accept credit card payments over the Internet.

ConSyGen’s business is customer-driven, technology-influenced and service-oriented, coupled with world-class software development. In order to achieve the core company goals, various business units have the responsibility for developing cohesive missions, quantifiable objectives and comprehensive strategies. These business units include E-Commerce, Knowledge Mining, Internet Services, and Business Products.


Sub-Prime ISP VISA

Secured and sub-prime VISA specialist, First National Bank in Brookings, SD, has entered into a card issuing agreement with Carlsbad, CA-based Shanecy, CASA and CanadaFirst. Under the agreement FNB Brookings will serve as the VISA licensed bank and will be paid a monthly fee by CASA, an Internet Service Provider, for the issuance of each card. CASA’s sister company, Shanecy, will administer the card for CASA. CASA will retain all of the recurring revenue from the card, including all fees, finance charges or other income. CASA says it intends to offer the VISA card as part of a package to provide ISP service to moderate income households. CASA will pre-bill the ISP service charges to the card. CanadaFirst is owned by Thesseus, a major shareholder of Shanecy, and primarily focuses on VISA accounts. Shanecy is in the process of changing its name to Inc.ubator Capital and specializes in marketing financial products to the sub-prime market.


Feb CardWatch

With ‘Platinum Card’ marketing flooding the market, MBNA has retreated to promoting its ‘Gold MasterCard’ and First USA is promoting a re-priced ‘Titanium VISA’ according to February’s marketing intelligence gathered by CardWatch ([][1]). Capital One continued this month to hammer away with its ‘Young Adults VISA’ card for students under 18 years of age, and American Express continues to flood the small business market with its first-year-free ‘Small Business Gold Card’. In the sub-prime market, Direct Merchants hit mailboxes this month with a secured card solicitation offering a 500% credit line for a $99 deposit and Capital One countered with a solicitation for a $500 credit limit for a $49 deposit. Meanwhile Discover revived its 2.9% intro rate offer for its ‘Platinum Discover’ card this month. CardWatch monitors direct mail, print ads, online, radio and TV ads pertaining to credit card marketing.



COF Stock Repurchase

Capital One Financial Corporation announced that its Board of Directors has approved the repurchase of up to 10,000,000 shares of the Company’s common stock over the next two years. This is in addition to the 2,250,000 shares remaining under the Company’s repurchase programs approved in July 1997 and August 1998. Any repurchased shares will be used for general corporate purposes, including mitigating the impact of shares issued through dividend reinvestments, associate stock purchases and option programs.

Headquartered in Falls Church, Virginia, Capital One Financial Corporation ([][1]) is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products. Capital One’s subsidiaries collectively had 23.7 million accounts and $20.2 billion in managed loans outstanding as of December 31, 1999, and are among the largest providers of MasterCard and Visa credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 500 Index. For the second consecutive year, Fortune magazine named Capital One to its list of the “Best Places to Work in the US” and one of the most admired consumer credit companies.



Horizon Card Contract

Toronto-based NBS Technologies announced Friday it has been awarded a million-dollar-plus first year contract for the ‘Employment Authorization Document Card Project’ by DATATRAC Information Services. Under contract to the U.S. Immigration and Naturalization Service, DATATRAC Information Services is the prime contractor responsible for producing the ‘Government Employment Authorization Cards’. The NBS ‘Horizon Card’ issuance solution incorporates the Dynetics ‘CMS 2300’ card mailing system to offer a fully integrated, multi-function, high speed, high security in-line card personalization and delivery system. The turnkey solution provides the ‘EAD’ card with color photos, fingerprints, signatures, encrypted 2-D barcodes as well as magnetic stripe encoding and the application of a Government issued security seal and holographic overlay. The personalized card is affixed to a carrier for the insertion of the finished card and letter into a mailer.


Blue Gas Card

CT-based announced Friday it is launching a ‘Priceline for Gasoline’ card whereby consumers will be able to name their own price for up to 50 gallons of gas per month. Starting May 20th, Priceline WebHouse Club, a licensed affiliate of, will offer the new service that is expected to save drivers 10 to 20 cents per gallon from most major oil companies. Over 100 national sponsors will contribute to Priceline WebHouse Club customers’ gas purchases in return for customers’ agreeing to try their products and services. The ‘Priceline for Gasoline’ card is free to any consumer by accessing All four million previous customers and all WebHouse Club members will automatically receive the blue colored gas card free in the mail. To bid, cardholders simply enter the ID number on the back of the priceline gas card and provide a major credit card or debit card account number. Cardholders then choose the grade of gas, the per-gallon price they want to pay, and the number of gallons desired (up to 50 gallons per household per month). If the bid is accepted, then priceline will charge the deal to the credit or debit card and notify the cardholder of the location of the local participating gas station. After each fill-up, Priceline WebHouse Club will automatically e-mail a receipt which also shows the number of prepaid gallons remaining. gas accounts may also be monitored online.