Political Payments

Senator John McCain has raised more than $2 million in presidential campaign funds via online credit card contributions. Former Democratic Senator Bill Bradley raised about $1.6 million from Web site credit card contributions. CyberCash is providing the payment processing technology for McCain, Bradley and dozens of other candidates with CyberCash’s ‘CashRegister’ service. Aristotle, a company that provides candidates with Web fundraising tools, is using ‘CashRegister’ to power payments for more than 150 candidates in local, state and federal elections. The CashRegister payment processing service provides customers with real time, online authorization and settlement of transactions. CashRegister allows online merchants and candidates to accept payments at Web sites and securely process these payments through a financial institution and credit card processor. Wachovia Bank, recommended CyberCash to Aristotle. CyberCash has 20,000 merchant customers.


Bad Boys Card

Biometric smart cards are being introduced in Europe to fight patrons who create problems in nightclubs. Belgium/US-based Keyware Technologies announced this morning it is partnering with Interstrat, a strategic systems integrator, to embed its biometric technology into smart cards that will be used by 15 nightclubs in the Netherlands. Patrons of each nightclub will receive a biometric membership card. The club-goers will go through a short enrollment process to put their face and finger bio prints onto the membership card. Each time a patron attends a club, his or her physical characteristics will automatically be verified against the bio print information on the smart card and the nightclub database. When a person is found to have caused trouble, nightclub management will flag that person in the database and not allow him or her access. The biometric technology on the card ensures that the troublemaker will not be able to forge an identity and regain access to a club where he or she has caused trouble. Keyware says violence and illegal drug use in nightclubs is a disturbing trend in Europe and the U.S. which smart cards can manage. Both firms also plan to distribute the system in other sport and entertainment-based franchises. The smart cards can also be used for marketing purposes such as distributing disco-dollars or points to members.


E-Pass Hits Palm

VA-based E-Pass Technologies filed a federal lawsuit against 3COM yesterday, alleging patent infringement by 3Com’s ‘Palm Pilot’ over the storage of account numbers such as credit cards. According to the company, 3Com’s popular ‘Palm Pilot’ electronic organizers infringe on its 1994 E-Pass patent for a multifunction, credit card-sized computer that allows users to securely store a multitude of account numbers, PIN codes, access information and other data from multiple credit cards, check cards, identification cards and similar personal documents. 3Com is spinning-off Palm in a $736 million IPO this Thursday.


My-Points MasterCard

NextCard and MyPoints.com have teamed up to roll-out the ‘MyPoints MasterCard’. Yesterday’s agreement also includes a multi-year alliance for MyPoints.com to be the preferred rewards provider for NextCard and its co-branded credit card partners. The ‘MyPoints MasterCard’, powered by NextCard, will be offered to the six-plus million members of the ‘MyPoints’ loyalty program and is scheduled to be available in the second quarter. The new MasterCard offers one point earned for each dollar spent on the card. Points earned on the card are aggregated with points earned through by filling out surveys, reading and responding to targeted email, visiting Web sites, shopping online, and more.



Fair, Isaac revealed Monday the development of a Web-based solution that harnesses the company’s gold standard analytics and decisioning technology to offer instant credit to consumers. ‘LiquidCredit’ instantly evaluates applicant risk; returns suggested credit decisions based on product-matching analytics and the grantor’s strategy; and, for brokers, matches scored applicants to various credit grantors’ lending criteria, presenting applicants with a variety of credit options. The new FI solution offers a Web-based decision engine, credit reporting agency interface, associated transaction management tools, and the ability for businesses to design their own decision criteria and strategies. ‘LiquidCredit’ can also create a common platform for B2B and B2C credit origination. It facilitates seamless interaction between e-marketplaces and e-tailers who initiate credit-driven transactions, and sources of financing like banks, finance and leasing companies. The company plans to have the product generally available beginning May 17.


SUM Hits 283 Members

Century Bank announced that it has joined SUM, a selective surcharging program managed by the NYCE Network. As a SUM program member, Century Bank joins forces with other financial institutions who agree to pool designated automated teller machines and allow all other program members’ customers to use them surcharge-free. Surcharges are convenience fees that some financial institutions charge non-customers for ATM use.

When asked why Century joined the SUM Program now, Marshall M. Sloane, Chairman and Founder, elaborated that “we have many customers with ATM cards and although we are currently in the process of expanding our ATM network, our customers need access to their money without a secondary fee being assessed. The Program has proven to be very successful and we wanted to be a part of the success.”

The SUM Program, began as a Massachusetts pilot, and is available to all NYCE Network participants in 15 states and the Commonwealth of Puerto Rico. Currently, there are 283 participating financial institutions with over 1,900 ATMs. This total includes 243 Massachusetts Banks and Credit Unions with 1648 ATMs.

The SUM name and service mark logos were developed to help consumers readily identify participating ATMs. Consumers can also obtain information about participating SUM financial institutions and designated ATM locations by visiting the SUM web site at [www.sum-atm.com][1].

Century Bank and Trust Company, a subsidiary of Century Bancorp, Inc., is a state chartered, full-service commercial bank. Century Bank operates sixteen full-service branches in the Greater Boston area and offers a full range of Commercial, Consumer, Cash Management and Investment products.

Headquartered in Woodcliff Lake, New Jersey, the NYCE Corporation provides financial institutions and retailers with processing services that support automated teller machines (ATMs), point-of-sale (POS) and electronic benefits transfer (EBT) transactions. In addition, NYCE provides financial institutions with electronic funds transfer processing services that support ATM terminal deployment, debit card issuance, and home banking/bill payment solutions. NYCE’s web site address is [www.nyce.net][2].

Century Bank is a member of the FDIC and an Equal Opportunity Lender.

[1]: http://www.sum-atm.com/
[2]: http://www.nyce.net/


Gemplus & Nextel

Gemplus Corporation and Nextel Communications, Inc. announced a multi-year agreement under which Gemplus will provide smart card-based Subscriber Identity Modules that will enable Nextel to offer international roaming service using dual mode GSM900/iDEN mobile phones.

SIM cards are widely used internationally by mobile phone services to secure access to the communications services, store network information in the phone, and manage personalized subscriber data and applications. Nextel will utilize Gemplus SIM cards to provide its customers with a dual-mode phone that can access iDEN (integrated Digital Enhanced Network) 800 MHz in North and South America and GSM (Global System for Mobile Communications) 900 MHz-based networks that are prevalent in, Europe, Africa, Oceania and Asia.

“International roaming capabilities are a crucial requirement for today’s business travelers seeking greater mobility to operate in the global economy. By working with Gemplus to integrate smart card technology, Nextel plans to begin offering its worldwide service during 2000 with one phone, one number, worldwide,” said Mark Schweitzer, vice president marketing, Nextel Communications.

Since 1988, Gemplus has provided over 250 wireless operators with SIM cards, services and software. Initially specified as part of the GSM international telecommunications standard, SIM technology today is used to customize mobile phones utilizing various telecommunications standards including PCS, satellite, and others.

“This represents a tremendous commitment by a U.S. mobile network services provider to adopt SIM technology and expand its reach to accommodate the needs of international travelers,” said Jean Louis Carrara, director Telecom Marketing for Gemplus Americas. “Smart cards are at the heart of much of the world’s mobile telecommunications services, providing not only secure network access and roaming, but also the ability to provide secure value-added services. New applications are being developed rapidly to utilize SIM cards to enable wireless Internet browsing, mobile commerce and banking applications. We are pleased to have been selected by Nextel Communications to help them benefit from this value-adding technology.”

Gemplus has a record of innovations in the mobile phone market, including products and technologies such as the development environment GemXplore CASE, the remote SIM management platform, GemXplore Suite and Java Card(TM) SIMs.

About Nextel

Nextel Communications Inc., headquartered in Reston, Va. is a leading provider of fully integrated wireless communications and has built the largest guaranteed all-digital wireless network in the United States that covers thousands of communities across the United States. Nextel and Nextel Partners Inc. currently serve 94 of the top 100 U.S. markets. The Nextel National Network offers a fully integrated wireless communications tool with digital cellular, text/numeric paging and Nextel Direct Connect(R) — a digital two-way radio feature. In addition, through Nextel International Inc., Nextel has wireless operations and investments in Canada, Mexico, Argentina, Brazil, the Philippines, Peru, Japan and Shanghai, China. Please visit our web page at [http://www.nextel.com][1].

About Gemplus

Gemplus S.A. ([www.gemplus.com][2]) is the world’s leading provider of plastic and smart card-based solutions with 37% market share (by units sold, source: Dataquest 1998). Gemplus sells magnetic stripe cards, memory and microprocessor-based smart cards, smart contactless cards, electronic tags and smart objects. The company designs and markets software, development tools and readers. Gemplus also provides consulting, training and personalization services to deliver the industry’s most comprehensive and flexible card-based solutions to its developers, distributors, partners and customers.

With sales of approximately $US800 million in 1999, Gemplus employs more than 5,600 people in 14 manufacturing facilities, 7 R&D centers and more than 40 sales and marketing offices located in more than 30 countries around the world. Founded in 1988, Gemplus has successfully implemented portable and secure smart card-based solutions to simplify applications such as public and wireless communications, financial transactions, loyalty, transportation, education, healthcare, identity, physical access control, pay TV, electronic commerce, Internet security, logical access control and information technology. For more information: [www.gemplus.com][3].

[1]: http://www.nextel.com/
[2]: http://www.gemplus.com/
[3]: http://www.gemplus.com/


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 ([www.carddata.com][1]).

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


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 [www.radicchio.org][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 [www.brokat.com][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 Redknee.com Inc. Saraide Schlumberger Setec Siemens AG Sonera SmartTrust Synamic Limited TC TrustCenter Texas Instruments VeriSign, Inc. Virgin Mobile Visa International Vodafone AirTouch

[1]: http://www.radicchio.org/
[2]: http://www.brokat.com/


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 http://www.signio.com.

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 http://www.rsasecurity.com.