FDC Exec Shuffle

Pamela Patsley, former head of Paymentech, has been hired by First Data as EVP and also president of First Data Merchant Services. With Patsley’s addition, Eula Adams, who has headed First Data’s merchant processing business since 1998, will join David Bailis, in leading First Data Resources, the company’s domestic and international card issuing business. Adams will focus on sales, customer service and international expansion, while Bailis will continue to focus on improving internal operations and efficiency. Kimberly Patmore has been named EVP/CFO for First Data Corp. Patmore replaces Lee Adrean who announced he was leaving the company to become the CFO of Earthlink, Inc. The company also announced that Ric Duques, FDC chairman/CEO, will assume direct responsibility for First Data’s Internet initiatives, which had been managed by Adrean. Duques said that he will focus on accelerating the development of new Internet-based transaction processing and other payment services. Finally, FDC has hired Alan Silberstein as an executive vice president of First Data Corp. and also president of Western Union Financial Services.

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Clough Joins TSYS Board

Richard W. Ussery, Chairman of the Board and CEO of Total System Services, Inc., today announced the addition of Dr. G. Wayne Clough, President of the Georgia Institute of Technology, to the TSYS Board of Directors.

“We feel fortunate to be able to add someone of his stature to our Board,” said Ussery. “We believe that Dr. Clough’s outstanding initiatives in technological research will prove to be invaluable to TSYS.”

Dr. Clough became the tenth President of Georgia Tech in September 1994. He is the first alumnus to serve as president, having received his B.S. and M.S. in Civil Engineering from Georgia Tech in 1964 and 1965, and a Ph.D. in 1969 in Civil Engineering from the University of California, Berkeley. During his tenure as president, Georgia Tech served as the Olympic Village for the 1996 Centennial Olympics, and Tech’s second Capital Campaign was initiated, raising $500 million to date. Research expenditures have increased for five consecutive years from $212 million to $280 million, a required computer initiative for all students was implemented, and enrollments increased from 13,000 to 14,000. A state-wide Georgia Tech regional engineering program has been implemented and seven new buildings have been built, or are underway. Dr. Clough has been recognized for his teaching and research, including a total of seven national awards from the American Society of Civil Engineers. He is one of a handful of civil engineers to have been twice awarded Civil Engineering’s oldest recognition, the Norman Medal, in 1982 and in 1996. Clough’s current service activities include: Executive Committee of the National Council on Competitiveness, the Malcolm Baldrige National Quality Award Board of Directors, and Co-Chair of the Board for the Internet Policy Institute. He is a member of the Executive Committee of Central Atlanta Progress, the Board of Directors of the Metro Atlanta Chamber of Commerce and a Trustee of Georgia Research Alliance. He is listed among the 100 Most Influential People in Georgia by Georgia Trend magazine.

About TSYS

TSYS provides the electronic payment link between buyers and sellers. With more than 207.9 million accounts on file, TSYS makes it possible for 291 million consumers to use their credit, debit, commercial and retail cards any time, anywhere and through any medium or portal. Our sophisticated systems collect and retain more transaction detail data per account than any other company. We return that information to our clients in a meaningful way so they can better serve every customer and make wiser commerce decisions. Our services allow our clients to focus on building their brands while we focus on safety, security, ease and convenience. Based in Columbus, Ga., TSYS (www.totalsystem.com) is an 80.8-percent-owned subsidiary of Synovus Financial Corp. (www.synovus.com), No. 5 on FORTUNE magazine’s list of “The 100 Best Companies To Work For” in 2000.

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AssetExchange.com Opens DE Office

AssetExchange.com has opened an office in downtown Wilmington, Delaware, to provide easy access and personal service to East Coast financial institutions.

Senior Vice President John McMenamin, Jr., formerly an executive with MBNA, heads up the new office of the business-to-business Internet-based exchange for buying and selling credit card, commercial real estate and other loan portfolios.

“While anyone can join our network simply by registering online from anywhere in the world, a Delaware office puts us in close physical proximity to some of the country’s largest financial institutions,” says William C. Koo, AssetExchange.com CEO and co-founder. “This is particularly beneficial for members who wish to post a portfolio for sale, as we can work with them personally to present their deals most effectively for quick results.”

Registered members of the AssetExchange.com network anonymously share summary information and download confidential detailed data about portfolios sought or for sale. AssetExchange.com charges a commission at the time a transaction occurs. The lower costs of the Internet service mean a substantially lower commission fee than that of traditional brokers.

AssetExchange.com was founded in 1999 by Koo, formerly Vice President and Manager of Finance and Marketing at U.S. Bank, and Frank Selker, who has extensive professional experience in marketing and development of decision support software systems. The company’s initial funding came primarily from Net Value Holdings, an e-commerce incubator for Internet start ups. Since its launch last August, the company has grown rapidly as banks see the benefit of using the Internet channel to post or seek portfolios for sale.

For more information about AssetExchange.com, or to register for the on-line network, visit the company’s Web site, www.AssetExchange.com, or contact William Koo at 503/220-0007 or John McMenamin at 302/691-0123.

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Lockhart CEO Plans

H. Eugene (Gene) Lockhart, formerly of AT&T, is to join a private company sponsored by, among others, DLJ Merchant Banking Partners. Lockhart has been named Chief Executive Officer of this internet-centric business-to-consumer company. In addition to DLJ Merchant Banking Partners, backers for the company include other financial investors and a strategic corporate investor.

Lockhart, 50, most recently was President of AT&T’s $22 billion Consumer Services unit, which provides long distance, local and internet access services to about 65 million customers. AT&T Consumer Services achieved record growth of 19% in net income under his leadership in 1999. Prior to joining AT&T, Lockhart was President of BankAmerica Corporations’ Global Retail Bank. Before joining BankAmerica, he was President and CEO of MasterCard International.

Lockhart is on the Board of Directors of Nabisco Group Holdings, the First Republic Bank, IMS Health, Inc. and the Royal Academy of Art in London. He is also a Trustee of the Alumni Board of the University of Virginia, where he received both his M.B.A. and undergraduate degrees.

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Discover Shopping Center

While stadium branding has become commonplace, a new trend may emerge following a deal yesterday to name a shopping center complex after a credit card brand. Discover Financial Services and The Mills Corp.announced Wednesday they have teamed up to create the first-ever naming rights partnership in the shopping center industry. The property involved is Discover Mills, a 1.3 million square foot retail and entertainment center located in Gwinnett County, GA, 25 minutes north of downtown Atlanta. The new shopping and entertainment complex, formerly known as Sugarloaf Mills, will feature approximately 200 retailers. Yesterday’s deal is the culmination of a multi-year relationship, during which ‘Discover Card’ was recently named as the official credit card of The Mills properties. Under the terms of the 10-year, multi-million dollar partnership, ‘Discover Card’ will become the preferred payment method of Discover Mills, which is anticipating $400 million in annual retail sales. Discover will also have its own storefront within the mall and will also develop marketing programs, including special offers, in-mall promotions and ‘Cashback Bonus’ award promotions with selected merchants. Mills Corp. runs 21 retail centers and has six projects under construction.

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AmSouth Renews TSYS

Total System Services, Inc. announced a five-year extension to its processing agreement with AmSouth Bancorporation for credit card processing. TSYS has processed the AmSouth portfolio since 1993.

TSYS President Philip W. Tomlinson said, “As AmSouth continues to grow its portfolio, we are delighted to play a part in its continued successes. AmSouth’s renewal is a sign of the strength of our people, technology and vision, and we are committed to earning their business everyday.”

Beverly Anderson, Vice President, Bankcard Department, AmSouth, said, “This extension allows AmSouth to continue providing its customers with first- rate quality, value, and customer service. We are delighted to be associated with TSYS, a company that upholds the same high standards.”

With the acquisition of First American, AmSouth became the 19th largest bank holding company in the nation and has leading market positions in Tennessee, Florida, Alabama and Mississippi, and a presence in Georgia, Louisiana, Arkansas, Kentucky and Virginia. AmSouth also became a leader among regional banks in the Southeast in several key business segments, including small business, consumer and commercial lending; annuity sales; equipment leasing; mutual funds and managed trust assets.

About AmSouth

AmSouth Bancorporation and AmSouth Bank are headquartered in Birmingham, Al. The company and its subsidiaries provide a full line of traditional and nontraditional financial services including consumer and commercial banking, small business banking, mortgage loans, trust services and investment management.

About Total System Services, Inc.

TSYS provides the electronic payment link between buyers and sellers. With more than 207.9 million accounts on file, TSYS makes it possible for 291 million consumers to use their credit, debit, commercial and retail cards any time, anywhere and through any medium or portal. Our sophisticated systems collect and retain more transaction detail data per account than any other company. We return that information to our clients in a meaningful way so they can better serve every customer and make wiser commerce decisions. Our services allow our clients to focus on building their brands while we focus on safety, security, ease and convenience. Based in Columbus, Ga., TSYS ([http://www.totalsystem.com][1]) is an 80.8-percent-owned subsidiary of Synovus Financial Corp. (NYSE: SNV) ([http://www.synovus.com][2]), No. 5 on FORTUNE magazine’s list of “The 100 Best Companies To Work For” in 2000.

[1]: http://www.totalsystem.com/
[2]: http://www.synovus.com/

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Bank of the West Renews NOVA

NOVA Corporation announced that Bank of the West has renewed its marketing alliance with NOVA for seven additional years. The alliance provides Bank of the West with individualized attention and customized services for each of its business customers. NOVA will provide merchant services and support to the bank on both a local and national basis.

NOVA is the third-largest transaction processing company in the nation. Bank of the West, a subsidiary of $16.7 billion BancWest Corp., is California’s fourth-largest bank with operations extending to Washington, Oregon, Nevada and Idaho.

“Due to NOVA’s strong commitment to service and dedication to enhancing its product offerings the last six years, we have decided to move forward by continuing to grow with NOVA in a long-term relationship,” said Frank Bonetto, Bank of the West senior executive vice president. “Our seven-year commitment with NOVA means we will be able to deliver the best possible value and service to our customer base.”

“NOVA is the market leader in providing electronic payment processing to small- and medium-sized merchants,” said Edward Grzedzinski, NOVA chairman and chief executive officer. “A key driver of the growth of our business is the company’s commitment to partnering with financial institutions. We have had a mutually beneficial relationship for six years with Bank of the West, providing transaction-processing services exclusively to the bank’s customers.”

About NOVA Corporation

NOVA Corporation, headquartered in Atlanta, GA, manages and transports payment and other business information on behalf of retailers, community banks and regional financial institutions. NOVA specializes in providing integrated credit and debit card payment processing services, related software application products, and value-added services to more than 500,000 merchants in the U.S. NOVA merchant customers typically include small- to medium-sized merchants requiring a full spectrum of processing services. For more information, visit [www.novacorp.net][1].

About Bank of the West

Bank of the West was founded in 1874 and is California’s fourth-largest bank. Its headquarters is in San Francisco. It operates 162 branches – 118 in Northern and Central California, 30 in Oregon, nine in Washington state, three in Idaho and two in Nevada. For more information on Bank of the West, please visit [www.bankofthewest.com][2].

[1]: http://www.novacorp.net/
[2]: http://www.bankofthewest.com/

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App Fraud Fighter

Equifax and HNC Financial Solutions officially and jointly launched an application fraud risk predictor Wednesday. ‘Gemini Verify Score’ is designed to detect a high rate of identity deception during the application process, while reducing the cost and customer inconvenience of additional identity verifications. It is the only application fraud predictor in the U.S. that is neural network-developed, credit data-based and centrally distributed. The new scoring service leverages the neural network and fraud control expertise that HNC used to develop the widely adopted ‘Falcon’ fraud detection system. Branch Banking and Trust Company was a pilot user of the ‘Gemini Verify Score’. Equifax Canada successfully introduced a similar score, ‘Gemini Application Fraud Predictor’, in late 1998. Six institutions are currently using the Canadian score, with five others testing. Both firms said yesterday the new scoring service addresses the concerns of lenders who are nervous about taking applications over the Internet.

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Euronet 4Q/99

KS-based Euronet Services reported revenues of $41.5 million for 1999, an increase of 249% over 1998 revenues of $11.9 million. The operating loss was $26.8 million for 1999, up from a $22.6 million loss for 1998, while the net loss for 1999 was $30.9 million compared with a net loss of $28.4 million for 1998. The losses were in line with management’s expectations to build its European ATM network. As of Dec. 31, Euronet owned or operated a total of 2,283 ATMs, compared with 1,271 ATMs at the year-end 1998. Of the 2,283 ATMs, 69% are owned by Euronet as part of its proprietary network, and 31% are customer-owned and operated by Euronet under outsourcing agreements. Euronet owns or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, France, the U.K., and the U.S.

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ePicPortz

Hypercom unveiled the payment industry’s first suite of comprehensive security and gateways server software that enables browser-equipped card payment terminals to securely interface to the Internet and access a broad range of web based applications. ‘ePicPortz 1.0’ offers several modules including: ‘ePicReceipts’, ‘ePicWall’, ‘ePicCommerce’, ‘RealPay’, ‘ShopHostz’, ‘ePicPack’, and ‘ePicMail’. These software modules support Internet-based applications such as electronic receipt capture, e-commerce, e-commerce to Host gateway, hosted web stores, on-screen advertising and coupons, and e-mail. A critical component of ‘ePicPortz’ is a security proxy and routing server that works in conjunction with hardware security tokens in Hypercom’s ‘ePic ICE’ terminals to provide a high level of security that is resistant to hacker techniques. Hypercom ‘ePicPortz 1.0’ is being rolled out with several major banks, financial transaction processors and ISPs.

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New International Processor

First Ecom.com and the Bank of Bermuda announced the formation of First Ecommerce Data Services Limited , a new joint venture company that will provide a comprehensive suite of global credit card payment processing services to banks and their merchants — both online and brick and mortar.

Subject to the finalization of relevant regulatory approvals, First Ecom.com and Bank of Bermuda have created FEDS to provide banks and their merchants the FEDS Processing Solution, which includes online and batch transaction processing for Visa, MasterCard, credit and debit cards. The FEDS Processing Solution includes authorization, electronic data transmission for settlement, and full transaction reporting.

FEDS will grant banks the authority to give their merchants access to the FEDS Processing Solution, which provides a wide range of new services for researching, retrieving and archiving the data associated with the transactions processed on behalf of the banks and their merchants.

The Bank of Bermuda will provide the card processing systems, staff, data processing center and other supporting features, including formal authorization and licenses with regard to the processing of credit card transactions by holders of VISA and MasterCard credit cards.

“This is by far our most significant venture to-date,” said Gregory Pek, First Ecom.com president and CEO. “Creating this new joint venture demonstrates that both companies recognize the importance of working together to create a comprehensive, third-party processing solution for banks and their merchants all over the world. FEDS represents a unique payment processing outsourcing opportunity for banks, in that they can work freely with a non-bank, non-competing institution such as FEDS that offers multi-currency payment processing services and can get banks up and running in a matter of days.”

Pek added that FEDS overcomes many of the common hurdles facing banks in providing payment processing services to their merchants, including the extreme shortage of qualified technical personnel to build the systems, attracting industry-savvy business partners, increased operating costs for multinational corporations, and high costs associated with system development, maintenance and ongoing R&D. FEDS also addresses the risks associated with banks losing merchant business to competitor banks that have effective payment processing systems because FEDS provides a turnkey solution that can be quickly implemented with any banks existing systems.

“We’ve been working closely with First Ecom.com since earlier last year, and are very excited about what our new FEDS joint venture will mean, not only for our two companies, but for the vast number of banks and their merchants that understand the clear advantage of outsourcing payment processing,” said Alan Richardson, executive vice president, retail clients for the Bank of Bermuda Ltd. “Payment processing has always been the cornerstone of e-commerce and other types of credit card transactions, and we believe that FEDS will be regarded among the best solutions.”

About the Bank of Bermuda

Bank of Bermuda is an international financial institution that provides banking, trust, asset management, fund administration and global custody services to its corporate, private and retail clients. Founded in 1889, its global headquarters are in Bermuda, and it has offices or subsidiaries in the Cayman Islands, Cook Islands, Dublin, Guernsey, Hong Kong, Isle of Man, Jersey, Luxembourg, New York, New Zealand, and Singapore. It has representative offices in Bahrain and London.

About First Ecom.com

As a global leader in Internet transaction processing, First Ecom.com provides secure, easy-to-implement and low-cost online payment processing services to merchants and banks worldwide. Through strategic partnerships with Banks, ISPs, E-commerce system integrators and storefront solution providers, First Ecom will process credit card transactions made over the Internet in multiple currencies, either domestically or offshore in a tax-neutral jurisdiction. For more information, visit [http://www.firstecom.com][1].

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

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