PC Smart Card

Schlumberger announces a breakthrough in on-line security – the first smart card that simply plugs into a personal computer. Called Cryptoflex e-gate, it removes the major barrier to the use of smart cards with personal computers by providing a direct connection between the card and the computer via the USB port. Cryptoflex e-gate provides the low-cost, simple to deploy security organisations need to protect sensitive information, control network access and facilitate Internet-based e-commerce.

Smart cards are almost universally accepted as the ideal means of providing the security required for making payments, placing orders and exchanging confidential information over networks and the Internet. Until now, however, the cost and logistics of integrating smart cards into PCs have held back adoption of this technology on the scale required for e-commerce to realise its predicted potential.

Cryptoflex e-gate simply plugs into the USB (universal serial bus) port supplied as standard on today’s personal computers, to give business users and consumers complete on-line security. It is estimated that over half the personal computers in the world will be USB-capable by the end of 2001: the development of Cryptoflex e-gate means that PC manufacturers can now integrate smart card security to deliver cost-effective ‘e-commerce ready’ personal computer systems.

“Commercial and financial organisations worldwide are planning and implementing innovative Internet services – but to take real advantage of the on-line future, consumers and business users must have total confidence in Internet security,” said J©r´me Sion, Schlumberger Product Manager. “With Cryptoflex e-gate, we’ve developed a simpler and more cost-effective route for high-level security.”

“By exploiting the speed and ease of integration of USB, Schlumberger is accelerating the acceptance of smart cards as the secure e-commerce solution of choice,” said Philippe Goetschel, Microsoft Director Smart Cards. “Combined with the flexibility and strength of Microsoft’s Windows for Smart Card OS, the Cryptoflex e-gate now makes the ‘e-commerce ready’ personal computer system a practical reality.”

At the heart of Cryptoflex e-gate is a specially-designed chip which incorporates the interface electronics normally resident in a traditional smart card reader. This enables the card to connect directly with the USB, without the need for a card reader or a separate power supply. Instead, it uses a simple connector, which dramatically reduces costs – rewriting the business case for smart cards as the network security technology of choice.

Schlumberger is offering Cryptoflex e-gate in two formats. The standard ISO version is a versatile smart card that enhances user convenience giving consumers a single key to a host of smart services. When used with a personal computer to provide secure access to Internet services, for example, the user simply puts this card into the connector, and the system recognises it as a peripheral in the same way as it recognises a mouse or other USB device. Plus the same card can also be used in traditional smart card terminals.

Cryptoflex e-gate is also available as a small format card within a token that plugs directly into the USB port. Low cost and simple to deploy, it is ideal for organisations seeking a secure and controllable computing infrastructure for large numbers of personal computer users.

Each version takes the convenience and ease of use associated with smart cards to new levels. Both are hot-pluggable, so users can connect Cryptoflex e-gate when required, while the computer is running, without the need to re-boot; both are self-powered, eliminating the need for additional cabling or power connections; and both use the high speed USB communications protocol.

The essence of smart card-based security for computers and networks is the fact that the private keys that are used to generate digital signatures that authenticate transactions, like orders and payments, are stored securely on the card and not exposed to hackers on a computer’s hard drive. The card’s owner retains full control over the card and its contents.

As the latest member of the groundbreaking Cryptoflex family, Cryptoflex e-gate offers exceptionally high levels of security (DES, triple DES and RSA cryptographic capabilities) even by smart card standards, including a unique on-card key generation facility and an RSA 1024 bit public key.

Cryptoflex e-gate also takes full advantage of the faster communication speed offered by USB. This is particularly valuable for the growing number of smart card applications where the card needs to hold extensive amounts of data, giving card operators across banking, health and loyalty sectors the opportunity to deliver secure one-to-one services over the Internet.

The ‘e-gate’ feature has the potential to be applied to other card applications, giving card operators opportunities to bring to market more quickly new services over the Internet. Schlumberger has proposed to include USB protocol for the USIM cards to be used in third generation wireless telephony systems which are currently being standardised and set to progressively replace current GSM systems from 2001. With the continuing trend for multi-application functionality on GSM cards and the increasing capacity needed to store information such as phone books, USB offers the communications speed to meet the high expectations of mobile phone users.

The Cryptoflex e-gate card will be available in mid-2000.

Cryptoflex and Cryptoflex e-gate are trade marks of Schlumberger.

About Schlumberger

Schlumberger is the leading provider of smart card-based solutions worldwide. Drawing on 20 years’ experience in pioneering smart card innovations, Schlumberger is continuing to evolve the next generation of smart cards, parking terminals, ticketing machines, payphones, banking terminals, servers, software, applications and systems integration that will play a key role in the 21st century’s digital age. Additional information is available at http://www.slb.com/smartcards.

Schlumberger Test & Transactions provides smart card-based solutions; semiconductor equipment and services; and corporate IP and network solutions to customers throughout the world. It is a business unit of Schlumberger Limited, an $11.8 billion global technology services company.

Schlumberger Test & Transactions, 50 avenue Jean Jaures, F-92542 Montrouge, France Web: www.slb.com/smartcards/

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AmEx CostCo Cards

American Express is expanding its current Costco relationship with a card issuing agreement. AmEx and membership warehouse king Costco, rolled-out ‘The American Express Platinum Cash Rebate Card’ and the ‘Corporate Card for Small Business’ yesterday. The new cards, offered exclusively to Costco members, will also serve as Costco membership cards. Wednesday’s announcement is the second phase of a relationship which began in August when American Express card acceptance was introduced at Costco warehouse clubs. Since then, Costco shoppers have racked up 1.5 million transactions. The ‘Platinum Cash Rebate Card’ offers a cash rebate of up to 2% based on all purchases with no limit. The rebate scale is: 0.25% for spending between $0-$2,000, 0.5% for spending between $2001-$3,000 and 1.5% for purchases in excess of $5,000. An additional 0.5% will be given for purchases during billing periods when the account is carrying a balance. The ‘Platinum’ version also features no-annual-fee and a go-to APR of prime +8.49%. The ‘Corporate Card for Small Business’ features quarterly management reports, discounts from AmEx partners and no-annual-fee with a paid Costco membership.

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Mobile E-commerce Agreement

Two giants have come together to accelerate the emerging frontier of payments via mobile phones. Yesterday at Cartes ’99, Ericsson and VISA International, announced they have formed a partnership to develop mobile e-commerce and drive open standards for payment transactions over wireless networks. Ericsson and VISA will cooperate on providing a variety of payment solutions leveraging open standards such as the WAP, SET and EMV protocols to address different market requirements. One area of cooperation is the development of a payment solution for mobile e-commerce using Ericsson’s ‘Bluetooth’ enabled wireless wallet. The wireless wallet, which can serve as a conventional wallet for bills and coins, contains multiple smart card readers. A smart card inserted into the wallet can communicate with a ‘Bluetooth’ enabled mobile terminal. The mobile phone can be used for Internet shopping using the smart card in the wallet for payment. ‘Bluetooth’ is a short range radio frequency protocol that allows devices to interact remotely.

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Peregrine’s ICS/Fraud

Peregrine Systems Ltd. announces the launch of ICS/Fraud with the first release already live at Company Barclaycard, Europe?s leading issuer of Visa corporate charge cards. ICS/Fraud is designed to cut the cost of fraud for issuers of credit and debit cards. The product automates the processing of fraudulent transactions on cardholder accounts, with outstanding results for payment card issuers in terms of cost savings, increases in productivity and fraud control. It is the latest addition to Peregrine?s range of exception management solutions for the card payments industry.

ICS/Fraud is unique in that it meets a specific requirement in the market that previously had not been directly tackled by any other software supplier. With this product, Peregrine Systems is entering a new niche as Gary Ramsay, software development manager says, ?We see many of our customers running very successful fraud prevention programmes, nevertheless, a percentage of transactions will still slip through the net. It seems though, that managing and minimising financial losses after fraudulent transactions have occurred, remains outside the focus of existing products. Our specialisation in exception management led us to recognise this gap in the market.?

Peregrine worked in close collaboration with staff at Company Barclaycard to build a clear understanding of user needs. Ramsay continues, ?We did not want to release the product before it had gone through the ultimate testing procedure its first implementation. We have strong working relationships with our customers and that is what gave us the opportunity to get the product right before making it available across the board.?

Speaking about the project, Dave Sanders, Centre Manager at Company Barclaycard said, ?ICS/Fraud has created a much easier working environment for the team at Company Barclaycard, while increasing the control we have over fraud. The implementation means we can minimise our customers? fraud concerns and continue to offer them an efficient service.?

ICS/Fraud is a client/server application, built around workflow and case management capabilities. Based on previous account activity and system settings, the application categorises suspect payments on blocked cardholder accounts as fraudulent or genuine and processes them appropriately.

Customers benefit from a higher fraud recovery rate as ICS/Fraud reduces write-offs, and helps to expose fraud with flexible reporting capabilities. It delivers enhanced customer care and improves cash management, contributing to the bottom line. Integration with Peregrine?s ICS (Issuer Chargeback System) or other chargeback systems means that all fraud cases in ICS/Fraud with chargeback rights are set up automatically, maximising fraud recovery while minimising the cost of processing.

ICS/Fraud is available directly from Peregrine Systems and from its partners. It runs on a number of platforms and can be easily integrated with several card management systems.

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Proton Wins Sesames

It was announced in Paris at the leading European smart card show ?Cartes ?99?, that the 1999 Sesames Award for the Best New Application in the Banking Sector has been won by Proton World and Gemplus, for the CEPS-based Proton e-purse.

CEPS, the Common Electronic Purse Specifications, provide for the interoperability of electronic purse schemes worldwide and are supported by organisations representing over 90 per cent of all current electronic purse cards. In line with its strategy to be at the forefront of technological evolution in the smart card industry, Proton World declared immediately upon the official release of CEPS in March 1999 its intention to support and implement CEPS in the Proton technology and to be the first to offer CEPS-based solutions to the market.

The Proton CEPS-based e-purse demonstration application was developed by Gemplus and Proton World and has been ported onto the GemProtonCEPS card. The demonstration uses Banksys? C-ZAM/Smash multi-application terminals and two demonstration systems: a ?domestic? system denominated in euros and an ?international? system denominated in US dollars. The e-purses have two currency ?slots? and are loaded via the Internet or a mobile phone. Visitors to the Cartes 99 exhibition in Paris can see the winning application demonstrated at the stands of Proton World (D88), Europay (E20) and Visa International (H48).

This development is important because it is the first demonstration of a CEPS-based transaction using two smart card schemes. It paves the way for global interoperability between e-purse smart cards.

Armand Linkens, Managing Director of Proton World, said ? I am delighted that the hard work of the joint Proton World-Gemplus CEPS development team has been recognised by this award. Having taken the first step, we will ensure that the product is made commercially available as soon as possible so that internationally- accepted e-purse smart cards can become a reality.?

Marc Lassus, Chairman of Gemplus Associates International, said ? Proton World and Gemplus share a common vision and an excellent spirit of partnership on a day-to-day basis. I am proud that this spirit has resulted in a development, whose innovative value has been recognised by the Sesames Award, and which has set the standard for the rest of the industry to follow.?

The Sesames Awards, now in their fourth year, are recognised as the world?s leading smart card innovation awards that each year single out the smart card industry?s most innovative products. The Awards jury is composed of international specialist journalists and market experts.

This is the second time that the Proton technology has received a Sesames Award. In 1996, the Best New Banking Application Award was won by Banksys for the Belgian Proton domestic applications.

Last year Proton World?s shareholder ERG Group won the Best Transport Application Award for its Octopus smart card ticketing system in Hong Kong. ERG Group and Proton World are working together to combine e-purse and contactless mass transit applications.

Notes for Editors

GEMPLUS S.C.A. is the world?s leading provider of plastic and smart card-based solutions with a 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 personalisation services to deliver the industry?s most comprehensive and flexible card-based solutions to its developers, distributors, partners and customers. With sales of over US $ 648 million in 1998, Gemplus employs more than 4,300 people in 10 manufacturing facilities, 5 R & D centres and 41 sales and marketing offices, located in 27 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.

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FastStart for VISA

ACI Worldwide announces the launch of FastStart for Visa, a smart card program designed to help Visa members quickly and easily introduce Visa Smart Credit and Visa Smart Debit with minimum impact on existing systems and processes. The program includes software, a package of integration services, project management and training to facilitate the smooth integration of smart card programs with existing magnetic stripe systems.

FastStart for Visa will streamline the migration of a financial institution’s host system and back-end processing to accommodate smart card technology as easily and inexpensively as possible. The program was developed specifically to help Visa member banks adopt smart card technology without a major systems redesign. To help encourage the migration to chip, ACI has established a special pricing formula for Visa members that helps reduce the investment required to introduce a smart card program.

“For the first time, Visa members will have everything they need to process and manage a complete Visa smart card program,” said Gaylon Howe, senior vice president, Consumer Product Platforms at Visa International. “Our members have been telling us that one of the hardest parts of migrating to chip is changing host systems and back-end processing. I’m delighted that, with ACI, there is now an easy and cost effective solution that supports all international standards and the Open Platform. Through our work with ACI, we have secured substantial cost savings for our members that I am sure will help stimulate greater smart card growth.”

To create FastStart, ACI researched the business and technical requirements Visa member banks must address when launching and maintaining smart card programs. The research discovered that smart card programs must be flexible and adaptable to keep pace with demands for effective security and convenience, both in brick-and-mortar environments and the Internet.

FastStart for Visa addresses these requirements with a program that enables Visa member banks to adopt smart card technology without major systems redesign or unacceptable technical risk.

“Like Visa, our customers have been telling us they want to enjoy the benefits of smart card programs–but that implementing them can be difficult,” said David Russell, president and CEO of ACI Worldwide. “FastStart helps to remove uncertainties. Through our work with Visa, and our experience helping financial institutions add chip technology to their existing systems, we’ve created a program that will help Visa member banks adopt smart card technology with confidence.”

FastStart for Visa software and services will comprise elements of ACI’s BASE24(R) and MONAD(TM) product families–ACI’s proven electronic payments and smart card management products–and consulting expertise from ACI’s international smart card division. ACI’s involvement in the smart card market includes work with financial institutions in the UK that are adopting universal chip based schemes (UKIS), and with financial institutions in the Netherlands that have issued millions of smart cards (Chipper and ChipKnip) controlled by ACI software products.

About ACI Worldwide

ACI Worldwide (Nasdaq: TSAI) is helping customers change the way the world works with Transaction Smoothware(TM) designed to improve the way we live, work and shop. Every minute of every day, financial institutions, retailers and networking industries rely on ACI software and services to smoothly move money and information. As a leading international provider of software for electronic commerce and electronic payments, ACI maintains operations in the Americas, Europe/Middle East/Africa and Asia/Pacific. More than 2,300 customers in 79 countries use ACI distributed solutions. Visit ACI Worldwide on the Internet at [www.aciworldwide.com][1].

About Visa International

As the “World’s Best Way to Pay,” Visa is the world’s leading payment brand and the largest payment system worldwide with more volume than all other major payment cards combined. Visa plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions and their cardholders. Visa has more than 80 smart card programs in 35 countries and on the Internet, with 23 million Visa chip cards, including 8 million Visa Cash cards. Visa is pioneering SET Secure Electronic Transaction(TM) programs to enable and advance Internet commerce. There are over 880 million Visa, Visa Electron, Interlink, PLUS and Visa Cash cards, which generate more than US$1.4 trillion in annual volume. Visa-branded cards are accepted at over 18 million worldwide locations, including at more than 530,000 ATMs in the Visa Global ATM Network. Visa’s Internet address is [www.visa.com][2].

[1]: http://www.aciworldwide.com/
[2]: http://www.visa.com/

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Gemplus Korea

Mondex Korea has selected Gemplus as a strategic partner to supply multi-application cards on the Multos platform and to provide consulting services. Gemplus has also taken an equity stake in Mondex Korea. Implementation has begun on three major smart card projects, with a roll out in 2000 of nearly 400,000 multi-application Gemplus cards on the Multos platform, Mondex purse and a range of other applications such as debit and credit application, loyalty programs, ID and access. Among these projects, one will take place in Hanyang University, where Multos cards with a Mondex purse and a GemClub-based loyalty program will be issued for students. Another project will take place at COEX, a major convention & exhibition centre in Seoul with the issuing of Multos contact and contactless cards, including several applications : Mondex purse, MasterCard credit, Maestro debit, employee identity and public transportation. Gemplus joins existing shareholders: MasterCard Korea, Kookmin Bank, Korea Credit Communication, Amdahl Corp., KDB Capital and TeraSource Venture Capital.

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M&I Offer VISA Biz Chk Card

M&I Data Services, a leading provider of electronic funds delivery solutions, Wednesday announced that it now offers the Visa Business Check Card.

The Visa Business Check Card provides the financial institution with the ability to increase revenues, expand relationships with small business customers, and reduce expenses by minimizing deposit and check processing costs. It can also increase customer loyalty, while attracting new customers. The Visa Business Check Card can be added to a financial institution’s existing debit card program or implemented as a new program.

“This new program allows small business customers to separate personal and business spending, and to track business spending through monthly checking account statements,” says Frank D’Angelo, senior vice president and general manager of the EFD Services division. “It’s more convenient than carrying a business checkbook.”

“Debit cards offer financial institutions an additional method of meeting their small-business customers’ need for convenient access to funds, while providing small businesses with a ‘pay-now’ alternative to cash and checks,” says Mike Souza, Visa U.S.A. vice president of small-business products and services. “Varied enhancements, such as airline rewards, emergency services, and hotel burglary and lost luggage insurance, are offered at the issuer’s discretion and can help distinguish a financial institution’s product in the marketplace.”

Visa is the preferred payment brand and the largest consumer payment system worldwide. It plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions, their cardholders, and the global economy. Visa is the only consumer payment system to facilitate $1 trillion worth of purchases of goods and services in a fiscal year. Visa’s 660 million cards are accepted at more than 14 million worldwide locations, including 370,000 ATMs in the Visa/PLUS global ATM network. The company Web site is [http://www.visa.com][1].

Headquartered in Milwaukee, M&I Data Services is a division of Marshall & Ilsley Corporation (NYSE: MI), a $23.6 billion holding company. M&I Data Services provides leading-edge technology solutions to the financial services industry, offering consulting, software, and processing solutions for financial institutions worldwide.

The Electronic Funds Delivery (EFD) Services division of M&I Data Services provides transaction routing, switching, and authorization services for the electronics funds transfer industry. It supports all major makes and models of ATMs and provides ATM and debit card processing. EFD also performs network gateway services, and has network interfaces to all of the major regional and national ATM and point-of-sale (POS) networks. The EFD Services division provides complete cardholder services, merchant services, credit approval, and portfolio risk management, and offers a neural-network fraud management solution and comprehensive card personalization services.

For more information, visit the M&I Data Services Web site at [http://www.midata.com][2].

[1]: http://www.visa.com/
[2]: http://www.midata.com/

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Plugging In

The number of people in U.S. households who went online in October increased by 2.8 million people, marking a 4.3% increase from September, according to data released Tuesday by Nielsen/NetRatings. Active Internet users grew to 67.8 million in October from 65.0 million people in September. Among top advertisers for October: NextCard and Wingspan. NextCard ads logged 181 million ad impressions and a market reach of 23.7%. Wingspan ads logged 143 million impressions and a 24.1% market reach. The top banner ad viewed in October was Capital One’s ‘VISA Platinum’ with a market reach of 8.0%. The eBay/First USA ad for the ‘eBay VISA’ ranked seventh for the month with a market reach of 5.9%.

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1ClickCharge Hires Teer

1ClickCharge, the pioneering single-click Internet payments service and a majority-owned operating company of CMGI, Inc., Tuesday announced the appointment of Wendy A. Teer as Vice President of Product Services and the promotion of Scott Samios to Vice President of Partner Development. Teer will be responsible for Product Management and Customer Support Services, which includes implementation services, account holder services, merchant support services, and compliance for bankcard and regulatory issues. Samios, formerly Business Development Director, joined 1ClickCharge in January 1999 to build a base of beta merchants and develop marketing alliances for the 1ClickCharge payment service. In his new role, Samios is charged with expanding distribution of 1ClickCharge’s services through co-marketing alliances and relationships with strategic partners, including managing OEM bundling, portal, and CMGI network relationships. CMGI is the world’s largest and most diverse network of Internet companies.

Teer brings a seasoned background to 1ClickCharge, with nine years of experience at MasterCard International and Global Payment Systems working in the bankcard, electronic payment and point-of-sale industries. Most recently, as Vice President Delivery at MasterCard Global Services, Teer managed a project to enhance the database that houses Global Service program instructions for MasterCard member institutions. The project included a complete re-design of the Graphic User Interface (GUI), simplification of set-up and change functions, and the addition of many new features and functions. In addition, she participated in the design and implementation of a Voice Response Unit (VRU) application to service domestic and international customer calls in four languages. Teer’s previous positions at MasterCard and Global Payment Systems included a variety of point-of-sale product management roles, where she played an integral role in developing core product lines. Prior to MasterCard, Teer was Point-of-Sale Project Manager at Deluxe Data Systems/GTE EFT Services and held various management positions at Bank One in Indianapolis, Indiana. She holds a B.S. in Psychology from Ball State University in Muncie, Indiana.

“Wendy’s tremendous skills in the electronic payment industries will prove invaluable as we roll out the 1ClickCharge Internet payment service,” said Heidi R. Goff, President and CEO of 1ClickCharge. “We will count on her to effectively manage our first service as well as all future products and services.”

Over the past 10 years, Samios has focused on growing early-stage startups. He founded and sold two retail ventures, built AirMedia.com’s business development and distribution programs and led EarthWeb’s consulting division, generating a majority of the company’s pre-IPO revenues. Samios earned a B.A. from the University of Richmond, Virginia.

“Scott is a proven relationship builder,” said Brian Smiga, Senior Vice President of Marketing and Business Development at 1ClickCharge. “He will ensure that the right critical mass of partnerships are in place for the successful market launch of the 1ClickCharge payment service.”

About 1ClickCharge(TM)

1ClickCharge’s web payment service, scheduled to launch in the first quarter of 2000, makes credit cards perform like cash on the Internet. With its patented authentication technology, 1ClickCharge gives consumers the ability to easily purchase web content on a pay-per-use basis in small dollar amounts. Because 1ClickCharge is 100% outsourced, merchants will quickly realize profits without the technical hassles typically associated with setting up their own Internet payment service. 1ClickCharge’s mission is to lead the industry in single-click Internet payments under $20, a market space it calls Convenience e-Commerce(TM), beginning with the web content and information needs of business executives, IT professionals and online investors. The company is led by Heidi R. Goff, President and CEO, a 20-year senior management veteran of MasterCard, GlobalPay, ADP and IBM; and Brian Smiga, SVP of Marketing and Business Development, formerly co-founder of software companies Actioneer.com and DaytoDay. 1ClickCharge is a service of 1ClickBrands, LLC, a majority-owned operating company of CMGI, Inc. (Nasdaq: CMGI). Visit the company’s Web site at [www.1clickcharge.com][1].

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

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Email Payments

Silicon Valley-based Confinity launched ‘PayPal.com’ yesterday. The new Web-based servic enables consumers to transfer money via email, Palm organizers, cell phones, pagers and other web-enabled devices. After registering online for the free service, consumers enter the recipient’s email address and a dollar amount. The money is debited from payor’s credit card or bank account, and credited to the recipient. If the recipient is not yet a PayPal user, he or she simply registers on the PayPal.com site after receiving an email notification, and is immediately credited with the amount in the new account. Funds may be withdrawn at any time by electronic transfer to a bank account or a personal check from PayPal.com. Users may also opt to transfer the money on to others. The company says its web-based solution allows customers to own the access points to the payments system through their PCs, cellular phones, and handheld devices, and potentially eliminating bank fees.

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