San Fran Ban

San Franciscans voted this week to approve ‘Proposition F’, the initiative to ban ATM surcharges, by an overwhelming majority. The action makes San Francisco the nation’s third city to adopt an ATM fee ban, following Santa Monica and San Diego. The San Francisco ban was driven in part by the United Steel Workers of America and its beef with Wells Fargo. The USWA says it will help run similar campaigns across California until Wells Fargo stops lending money to Oregon Steel for their alleged illegal union busting activity. Meanwhile the CO-OP ATM Network said last night it does not believe that the ATM surcharge ban rulings in cities like San Diego and Santa Monica, nor the vote to ban ATM surcharging in San Francisco, will hold up against national banks or federal credit unions’ chartering structures. Indeed the California Bankers Association filed a federal lawsuit yesterday seeking to preserve its federal regulatory oversight which pre-empt local regulations. The CBA also requested a TRO to block the ATM fee bans.

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Euronet 3Q/99

Euronet Services Inc. announced record revenues of $11.8 million during the third quarter of 1999. The operating loss was $5.6 million for the quarter, a 19% decrease from the previous quarter.

The Company has shown consistent improvement in its results over the past three quarters. The operating loss and negative EBITDA have both decreased for the last three consecutive quarters, and negative EBITDA reached an all-time low of $3.1 million in the third quarter. Apart from costs associated with the redeployment of ATMs in the third quarter, direct costs of the ATM network operations would also have decreased over the last three quarters. Salaries and benefit expenses fell for the first time from the second to third quarters.

Michael Brown, Euronet’s Chairman and CEO, said, “We are very pleased with this quarter’s results. We believe reaching EBITDA positive for the ATM network during the fourth quarter is attainable based on the decrease in ATM operating costs and growth in ATM usage we are seeing. In Poland in particular, the monthly number of transactions on our ATMs has more than doubled since the beginning of the year. In the U.K., the size of our network increased from 46 to 109 ATMs during the quarter, and we now have over 130 off-premise convenience ATMs — more than any other independent deployer in the country.”

Software revenues for the third quarter totalled $4.8 million, or 41% of total revenues. Mr. Brown commented, “As we expected, we are seeing slower software sales in the third and fourth quarter of this year due to the lead-up to the year 2000. However, we have successfully widened and quickened our software delivery channel, which should enhance this division’s performance once sales pick up again in the new year.”

As of September 30, Euronet owned and/or operated a total of 1,817 ATMs, compared with 1,644 ATMs at the end of the second quarter. 82% of the ATMs are owned by Euronet as part of its proprietary network, and 18% are bank-owned ATMs operated by Euronet under outsourcing agreements. Euronet owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, France, the U.K., and the U.S.

Established in 1994, Euronet Services Inc. is a leading provider of electronic financial solutions and transaction processing services. Euronet operates a network of over 1,800 ATMs in Europe and the U.S., and provides an integrated software suite for electronic payment and transaction delivery systems compatible with the IBM AS/400 computer. With offices in eight countries on two continents, Euronet offers ATM network development and participation, outsourced management solutions, comprehensive software solutions, and professional and consulting services to retail banks and companies in more than 70 countries around the world.

For more information on Euronet’s financials visit CardData ([www.carddata.com][1]).

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

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Wireless ATM Locator

MasterCard and CA-based NeoPoint have teamed up to offer an ATM locator via NeoPoint’s smartphones. The service uses the location-based, wireless portal technology offered by myAladdin.com. MyAladdin.com is an information service that integrates wireless devices with the Internet, designed to add intelligence to raw data services. The service also utilizes GPS capabilities. The MasterCard ATM locator service, for MasterCard, Maestro and Cirrus brands, is available on MasterCard’s website and will now be accessible to mobile users through NeoPoint smartphones as well as other wireless handsets, portable digital assistants, and pagers.

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Dominican Republic AmEx Cards

Banco del Progreso and American Express today announced the launch of three Banco del Progreso American Express charge and credit cards in the Dominican Republic. The new Cards – Personal and Gold charge cards and a credit card – are denominated in the Dominican pesos, issued by Banco del Progrso and accepted on the American Express global merchant network. Cardmembers will enjoy Emergency Card Replacement and Travel Assistance at 1,700 American Express Travel Services Offices in 130 countries worldwide.

“Banco del Progrso has always provided Dominican customers with the highest level of banking services and customer convenience,” said Pedro Castillo, CEO of Banco del Progreso. “These new Cards with American Express will significantly broaden our card portfolio and enable us to offer products targeted at each major segment of the Dominican market. We are very proud to be introducing the American Express Card since it is a product that adheres so closely to our tradition of excellence in quality that we offer our customers.”

“This alliance with Banco del Progreso reinforces the expansion of our global network strategy in Latin America and Caribbean and allows us to successfully build our market share in the region,” said Jim Li, president of American Express Global Network Services. “We have established very productive parnerships with a select group of institutions around the world. These partners offer a whole range of American Express Cards to their customers, and we have every confidence that we will repeat the success of these relationships with Banco del Progreso.”

The Bando del Progreso American Express Cards feature a wide variety of benefits, including:

* 24 hour-a-day, 7 day-a-week customer services and emergency Card replacement;

* Acceptance by American Express global merchant network;

* Services at more than 1,700 American Express Travel Services locations in more than 130 countries; * Travel Accident Insurance.

In addition, all Cardmembers will benefit from American Express Emergency Assistance and Gold and Personal will have automatic collision damage waiver (CDW) car rental insurance (in the USA). Gold Cardmembers will also enjoy American Express Concierge Service and Special Events.

While continuing to grow its proprietary card business, American Express has been aggressively pursuing its strategy of opening its merchant network and its card product portfolio to other card issuers around the world. In the last few years it has developed 54 such partnerships arrangements in nearly 60 countries.

Banco del Progreso, founded in 1974, is one of the largest financial institutions in the Dominican Republic. It has 23 offices in 15 cities in the Dominican Republic, and one of the most extensive ATM networks in the country, all of which provide services to major financial and tourist centers.

American Express Company is a diversified worldwide travel, financial and network services provider founded in 1850. The company operates through three main subsidiaries: American Express Travel Related Services Co., Inc., American Express Financial Advisors and American Express Bank. It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking.

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Debit Card Phenomenon

VISA said yesterday that its ‘VISA Check Card’ has been the fastest growing product in VISA’s history and has re-shaped consumer behavior in regards to money management. To quantify consumer attitudes toward new and emerging payment technology, ‘VISA Check Card’ sponsored a recently completed Gallup survey of 1,252 American debit cardholders who have used their card in the past three months. Since obtaining a debit card, 58 percent of cardholders report that they are writing checks less frequently for payment, and 40 percent are using cash less frequently to make purchases. Cardholders overwhelmingly site convenience (31 percent) and ease-of-use (19 percent) as the top benefits of using debit cards over cash and checks. Additionally, nearly a quarter (24 percent) of debit cardholders always prefer to use debit over checks in payment situations, while 15 percent of cardholders always prefer debit to making purchases with cash.

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Fast Growing Triton

For the third consecutive year, Triton of Long Beach, Mississippi has been named one of the fastest growing companies in the U.S. by Inc. magazine. In its annual ranking of the Inc. 500, the publication ranked Triton #94 of 500 on the publication’s guide to the fastest growing private companies in America, up from #123 in 1998. Triton ranked #30 in its first year on the list in 1997.

“A repeat performance is no small feat, considering that the Inc. 500 measures percentage revenue growth,” said Mike Hopman, staff writer for Inc. magazine. “Every year a business records blistering growth, it becomes more difficult for it to repeat its performance the following year.”

Triton’s president, Ernest L. Burdette, credits much of the company’s third-time appearance on the list to the international initiative launched by Triton last year to bring off-site ATMs to convenient consumer locations around the world. The strategy, specifically targeting Canada and Latin America, boosted export sales from $1 million in 1997 to $12 million in 1998, far exceeding the company’s goals and fueling overall growth in 1998 of approximately 35 percent.

“Making the Inc. 500 list two times was a tremendous honor; making it three years running is extraordinary,” said Dr. Burdette. “If I had to pinpoint the reasons for Triton’s success, I would say that we truly listen to our customers and deliver what they want in terms of product features, support services and pricing. That’s been key in our anticipating and understanding the off-premise ATM marketplace. It’s guided our success in strategically identifying new markets as well as developing new approaches for existing concepts.”

In the same week that the Inc. 500 rankings were released, Triton was also named the third fastest-growing company in Mississippi as part of The Mississippi Business Journal’s “Fast 40” ranking. The list of the 40 fastest growing privately owned companies in the state is sponsored by Brunini, Grantham, Grower & Hewes law firm, GodwinGroup, KPMG Peat Marwick and the Mississippi Business Journal. Winners were ranked based on revenue growth over a three-year period.

About Triton

As the leading provider of cash-dispensing ATMs for off-premise locations, Triton is committed to redefining and leading the retail market for cash delivery systems. Triton is the third largest manufacturer of ATMs and ATM management software in the U.S. and has more than 35,000 locations worldwide. The company is headquartered in Long Beach, Mississippi. For more information, visit the Triton website at [http://www.tritonatm.com][1].

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

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Paymentech & SoftCart

Mercantec Inc., a leading provider of Internet commerce software products and services, and Paymentech, the merchant processing solution for Bank One, have teamed up to make implementing credit card processing easier for businesses selling goods and services over the Internet. The online payment processing leaders will help commerce service providers deploying Mercantec’s industry leading SoftCart e-commerce software to offer simple and instant credit card processing set-up.

The Mercantec and Paymentech solution allows small-to medium-sized merchants to establish a merchant account ID online and configure the SoftCart storefront for Internet credit card processing. Merchants link directly from SoftCart to the payment application via Mercantec’s Merchant Connection Web site to apply for their merchant ID. The remaining configuration and setup happens automatically and requires no involvement from the merchant or their CSP.

The joint e-commerce solution greatly reduces the time it takes for merchants to open up shop. In addition, the only effort required by the merchant is executed from within the Mercantec store management environment, which is part of SoftCart.

“Until now, each individual business went to separate vendors in order to secure credit card services,” said Andrew Parker, Mercantec president and CEO. “Through this system, we bring the bank to the merchant with one click. It is part of our larger goal to make it very easy to do business over the Web. We’re happy that Paymentech, as Bank One’s merchant processing solution, shares our vision and commitment to e-commerce.”

“This will be a prosperous combination because together we make it easier for merchants to get paid,” said Pamela H. Patsley, CEO and president of Paymentech. “Mercantec is the e-commerce software leader, as evident by their strong network of service providers.”

Mercantec SoftCart is already the leading e-commerce software delivered through ISPs and Web hosting providers. SoftCart has been endorsed by many of the world’s leading Internet commerce service providers (CSPs), including EarthLink, MindSpring, Interliant (Sage Networks) and Verio, and is deployed by thousands of merchants. SoftCart 5.0 is a robust, easy-to-use electronic commerce solution that offers Internet Service Providers maximum performance and security, making it easier than ever for them to deliver and support the electronic commerce demands of their merchants.

The solution is available at the Mercantec Merchant Connection Web site. Merchant Connection is an added value service for merchants of Mercantec’s service provider customers who are using the SoftCart. The Web site will provide merchants with unprecedented, immediate and comprehensive access to e-commerce resources, services offerings and add-on products to make their online business a success.

“This solution fits well into our overall vision of Perpetual Commerce,” Parker said. “We believe the future of e-commerce among these smaller businesses is dependent on our ability as a provider of software and services to make establishing that business as easy as possible for the merchant. This solution is a step in the process to deliver on that vision.”

About Paymentech

Paymentech ([http://www.paymentech.com][1]), founded in 1985, delivers premier electronic payment solutions for merchant acquiring, point-of-sale transaction processing and commercial card programs. Jointly owned by Bank One and First Data Corporation, the company is the nation’s second largest processor of bankcard transactions, a leader in Internet payments, and the merchant processing solution for Bank One. Paymentech processes approximately 2.5 billion bankcard transactions annually with $75 billion in credit card sales volume.

About Mercantec, Inc.

Established in 1995, Mercantec, Inc. is a leading provider of software products and services that enable Internet commerce. Mercantec distributes complete e-commerce solutions through leveraged channels to small to medium sized businesses. Among those channels are service providers, financial organizations, and Internet content providers. Mercantec’s service provider channel is more than 160 strong and includes some of the industry’s leaders, such as Verio/Hiway Earthlink, MindSpring and Interliant (Sage Networks). Among those in the financial channel are American Express and DataPro Software. For additional company or product information, visit the Mercantec Web site, [http://www.mercantec.com][2].

[1]: http://www.paymentech.com/
[2]: http://www.mercantec.com/

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Smile VISA Gets Smart

Smile, the UK’s first full-service Internet bank, has chosen Schlumberger to lead its charge into smart cards. Smile, from Co-operative Bank, said this morning it will use Schlumberger to supply all the smart cards for the new ‘Smile VISA Gold’ and ‘VISA Classic’ credit cards, and the Smile debit card. Internet-based credit cards and smart credit cards in this UK has drawn intense competition. In September Prudential launched the Egg credit card and last month, Household launched the Marbles credit card. Co-operative bank did not reveal yesterday what applications it will run on card chip.

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Bonds via Cards

The U.S. Treasury Department yesterday conducted the first purchase of a U.S. savings bond over the Internet using a MasterCard. The online transaction involved the use of the SET protocol. The new service is the result of a private sector-government partnership that includes MasterCard, Mellon Financial Services, IBM, and the U.S. Treasury Department. The government is using the new credit card option to enable Americans to buy the ‘Series I Inflation-Indexed Savings Bonds’. ‘I-Bonds’ are adjusted to ensure a real rate of return over and above inflation. The Treasury Department says transactions will be authorized instantaneously and the savings bonds should be delivered to the recipient in about a week. The payment gateway, which serves as the interface between the Internet and MasterCard’s authorizing network, was developed by IBM and is owned and operated by MasterCard on behalf of Mellon Financial Services and other MasterCard members worldwide.

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Phone Card Stickers

Cable & Wireless Global Card Services unveiled a unique way to transform a business card into a powerful marketing tool. The new ‘TeleStamp’ is a prepaid phone card in a peel and stick format. C&W says the new ‘TeleStamp’ is a prepaid phone card on a label, and can be used by a wide variety of business customers, including real estate agents, CPAs and attorneys, who typically distribute a large number of business cards.

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ICE in Philippines

Equitable Bank’s Philippines operations will deploy 1,400 Hypercom Corporation ICE 5000 touch-screen card payment terminals at merchant sites throughout the Philippines before year’s end. The deployment will enable Equitable Bank Philippines to significantly increase the number of transactions it processes.

“The deployment of Hypercom’s ICE 5000 terminals demonstrates our absolute commitment to provide Philippine merchants with the most technically-advanced, easy-to-use and value-packed card payment systems available,” said Mr. Tony Conway, office of the president, Equitable Bank Philippines. “That represents a win-win for Equitable, our merchants and their customers.”

Hypercom’s ICE 5000 is a powerful, multi-function touch-screen terminal incorporating a high-speed thermal printer, paper cutter, and Hypercom FastPOS(TM) 9600 bits per second (bps) modem technology that completes transactions in under six seconds. Hypercom’s ICE 5000 provides a highly interactive and intuitive user interface that allows the support of complex transactions with minimum user training. When used in concert with Hypercom(R) Ascendent(TM) software, the ICE 5000 also supports electronic receipt capture, storage and retrieval, and on-line advertising.

“Sophisticated financial institutions and merchants worldwide today more than ever recognize the need to add value and flexibility at the point-of-sale, and Hypercom’s ICE 5000 allows them to do just that,” said Mr. Jeremy Su, president, Hypercom Asia-Pacific. “We are pleased to help Equitable Bank provide its merchants with state-of-the-art electronic payment solutions.”

Equitable Card Network (ECN) is the leading card issuer, merchant acquirer, and third party processor in the Philippines. With over 500,000 VISA(R) and MasterCard(R) cards issued, ECN holds over 50% of the entire branded cardholder base nationwide. As the largest merchant acquirer, it continues to provide world class service and support to over 22,000 merchants all over the country. And as the largest third party service processor, it provides a complete processing solution for 22 other card issuing banks, numerous co-branded card partners and a variety of private label products.

Hypercom Corporation (NYSE:HYC) is the single-source global provider of end-to-end electronic payment solutions, including card payment systems, peripherals, network products, software and e-commerce payment solutions that add value at the point-of-sale for consumers, merchants and acquirers.

Headquartered in Phoenix, Arizona, Hypercom markets its products in more than 70 countries through a global network of affiliates and offices in Argentina, Australia, Brazil, Chile, China, Germany, Hong Kong, Hungary, Japan, Mexico, Russia, Singapore, Sweden, the United Kingdom and Venezuela. Hypercom’s Internet address is [www.hypercom.com][1].

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

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