CMSI Promotion

Credit Management Solutions, Inc., a leading provider of credit decisioning technology to automate and speed the processing of consumer and business loans, announced Friday, following its Board of Directors meeting, that its president Peter M. Leger has been promoted to chief executive officer.

Mr. Leger, 48, had been serving as CMSI’s president and chief operating officer since he was appointed to that role early in the fourth quarter of last year when he joined CMSI from Automatic Data Processing. At ADP, one of the nation’s leading information services and technology companies, Mr. Leger was president of the Dealer Services Group, ADP’s third largest division.

At the time Mr. Leger joined CMSI last fall, James R. DeFrancesco (founder of CMSI and chairman and CEO to date) said “… we have added world-class leadership and talent to our management team. Peter Leger has a demonstrated track record of success in managing high revenue growth businesses in a Fortune 100 global environment, while improving operational efficiencies, expanding into new geographical markets and increasing profitability for those entities.”

“During the past two quarters Mr. Leger has refocused the Company and intensified our efforts to return to profitability. We have the utmost confidence in his ability to lead a successful turnaround of this business. Our recent financial results combined with several major new strategic alliances and partnerships reflect the effectiveness of his leadership,” Mr. DeFrancesco said today.

“CMSI had already invested substantial resources over the past two years in developing leading-edge products and services, both for existing customers as well as new markets including E-Commerce and Internet Commerce,” Mr. Leger said. “Now, over a short period of time our team has built considerable new momentum and refined CMSI’s strategic focus to concentrate on those higher return activities for the Company. Further, the rapid growth and acceptance of the Internet is enabling us to roll out a variety of next-generation products that are tangible evidence of our leadership as innovators of online credit automation and financing solutions.”

For the quarter ended March 31, 1999, CMSI total revenue was $6.1 million vs. $4.2 million in the comparable period of 1998 and $5.3 million in the fourth quarter of 1998. Losses for the first quarter of 1999 were $(0.6) million, or $(0.08) basic and diluted loss per share, compared to a loss of $(1.4) million, or $(0.18) basic and diluted loss per share in the first quarter of 1998 and a loss of $(3.8) million or $(0.50) basic and diluted loss per share in the fourth quarter of 1998.

Mr. Leger further commented, “On behalf of the CMSI’s employees, Board of Directors and shareholders, I wish to thank Mr. DeFrancesco for his business vision and efforts which have laid the foundation for CMSI’s success and strong reputation in today’s marketplace.” Mr. DeFrancesco will continue to serve as chairman of CMSI’s Board of Directors and will continue to be active in certain strategic initiatives. Mr. Leger has been a CMSI director since December, 1996.

About CMSI

Since it was founded in 1987, CMSI’s credit automation and loan marketing technology services and software have been the choice of the world’s largest and most demanding lending institutions. Building on its leadership, the company is rapidly becoming a premier provider of Internet-based online lending and leasing technology. CMSI licenses credit decisioning and other automation systems and services for consumer and business credit. CMSI also offers a portfolio of products through service bureau alliances that are provided by its alliance partners on a per-transaction fee basis. The Company’s e-commerce and Internet commerce products and services are built around its patented CreditConnection(R) technology, which links credit originators such as automobile dealers and borrowers with an extensive network of leading prime and non-prime lenders.


Card Head To Lead People’s

The Board of Directors of CT-based People’s Bank named John Klein as the new president of People’s Bank yesterday. Klein will also become CEO on Oct. 1, 1999, and chairman Jan. 1, 2000. He was the head of the bank’s national and international credit card division. Klein will succeed the retiring David Carson. Klein has been with People’s for 28 years. He started out as a management trainee and in 1977, after graduating from law school, he established the bank’s Legal department, and, in 1984, was named general counsel. Klein was named SVP of Consumer Banking, which included credit cards, in 1990. Credit Card Services was made a separate division of the bank in 1996. People’s said yesterday that under John’s leadership, its credit card business grew nearly ten-fold since 1991, from $414 million to nearly $4 billion in receivables.


HyperSecur names President

HyperSecur Corporation announced yesterday that its wholly owned subsidiary, HyperSecur Corporation (Canada), has appointed Mr. Jean Dore as President.

In 1995, Mr. Dore, formerly the mayor of Montreal from 1986 to 1994, assumed the management of a consortium which was comprised of Hitachi Data Systems, Montreal, Canada, Bell Canada, Mouvement Desjardins (largest credit union organization in Canada), and M.U.C.T.C. (Montreal Urban Community Transit Corporation). The consortium oversaw smart card applications including the development of a common E-purse.

A year later he directed another consortium based in Montreal. Called “Omnipuce,” this consortium was comprised of Cubic Transportation Systems (world’s largest Automatic Fare Collection company based in San Diego, California), National Bank of Canada, Mouvement Desjardins and SNC-Lavalin, Canada’s largest engineering firm. Omnipuce proposed the first privately financed Automatic Fare Collection System linked to the banking electronic payment industry and using contactless smart cards as fare media.

Mr. Dore received a Bachelor in Arts from the University of Montreal in 1964, studied political science at McGill University and obtained a License in Legal Letters (L.L.L.) from the University of Montreal in 1976. Last week HYURA acquired HyperSecur (Canada) that represented that its major asset is the HyperProximity chip. The hyper proximity technology was introduced last week at the STMicroelectronics, Inc. booth at the CardTech/SecurTech Conference held in Chicago. The technology will be implemented in the ST16HF52 contactless smart card from STMicroelectronics. The chip is a duel proximity level contactless solution based on ISO 14443 Type B. Mr. Dore said: “We believe that HyperProximity technology will set the pace for a new generation of smart cards. Using the ST16HF52 allows us to introduce in the third quarter 1999 the first HyperProximity contactless solution capable of adding a completely new level of security. The ruggedness, reliability and versatility of these cards represent an extremely competitive alternative to contact technology. The cards will address the means of access and authentication in security, PC, financial, commercial, institutional, governmental and transportation applications.”

He added, “We intend to get the HyperProximity contactless technology certified as an alternative to all contact card applications including debit, credit, E-purse and PC/SC specifications.”

HyperSecur Corporation plans to exploit the technology with strategic partnerships to develop the hardware and software necessary to market the new technology to card manufacturers, system integrators and end users. The final product will be a new contactless chip and smart card based operating system supporting an innovative security structure.



CT-based MemberWorks Inc. has acquired Comp-U-Card Canada Group from Canadian Tire Acceptance Limited. The Canadian credit card enhancement services company offers leisure travel services, direct-to-home merchandising, loyalty programs, loyalty program management, credit card registry and protection. MemberWorks says Comp-U-Card Canada is a key part of its strategy to expand MemberWorks’ presence outside of the U.S.


Presto PhoneE

Destia Communications and Freeserve Thursday announced the release of ‘Presto Phone’, the first e-commerce telephony service in the United Kingdom. The ‘Presto Phone’ is a pre-paid, code-access telephone account that features real time call record viewing that allows members to access their call details and confirmation of their account, which they can use immediately. This is part of Destia Communications telecommunication services which include calling card and pre-paid card services.



EIS International announced yesterday that it will preview its ‘Call Processing System’ next week at the CTI Spring Expo. ‘CPS’ utilizes a new credit card authorization process which allows the processing of a customers credit card while remaining on the line with the customer. This is made possible through the integration of ICVERIFY software from CyberCash. This new feature also streamlines record administration by reducing the number of calls incorrectly marked as sales because of card rejection. With ‘Instant Credit Card Authorization’, the agent can mark the record as a no sale, request an additional credit card to complete the sale, or verify the customer-provided credit-card information during the call session, eliminating the need to update the record at a later time.


VHS Network To Enter US

VHS Network announced yesterday that according to recent reports, a group of payment companies, including Visa, are working to create a standard specification for smart card readers. The readers will allow customers to use smart cards for electronic commerce and Internet banking services across Europe. According to the research company Datamonitor, Europe leads the world in smart card spending with almost $1 billion expected to be spent on new projects in 1999. More than 80% of the smart card market, which looks set to exceed $3.5 billion by 2002 is centered in Europe.

“Even though Europe is far ahead of the United States, we believe that once major companies learn about the benefits of smart card technology, the U.S. will catch up with Europe very quickly,” says Elwin Cathcart, president of VHS Network. VHS Network Inc. recently entered into a major agreement with Groupmark Canada Ltd., to exclusively license its SmartCARD(TM) technology in the U.S.

According to Cathcart, increase in Internet usage will fuel the rapid expansion of SmartCARD(TM) technology in the U.S. “Banks and other major financial institutions have a growing concern over the vulnerability of the magnetic strip cards to fraud. With the growing use of card transactions over the Internet, the concern becomes even greater. SmartCARD technology effectively eliminates most of these safety fears, making it the ideal method of payment for Internet transactions. And since the Internet market penetration in the U.S. is much higher than in Europe, it should be just a matter of time before the SmartCARDmarket will explode in the U.S.,” Cathcart explains.

But SmartCARD technology is not just for the Internet. SmartCARDs store up to 8,000 characters of valuable information, vs. 125 characters in a typical magnetic charge card, making them an ideal choice for retail loyalty card programs and charge and debit cards. SmartCARD(TM) can also act as a preloaded electronic purse.

Many grocery and convenience stores already have loyalty programs in place. Cardholders get additional savings when they purchase certain advertised items. SmartCARDs can take these programs one step further. Because of the huge amount of information that can be stored in your card — and not in the retailer’s information system — your card is practically a portable database.

“The retailer can offer instant point of sale special promotions on high-margin merchandise or instant rewards or gifts based on your past consumption patterns. They can use the system to increase both the average order size as well as the total amount of monthly spending. Stores are able to attract more repeat business, and even decrease the importance of advertising low prices to attract customers. In fact, with SmartCARD(TM)-based loyalty programs, retailers can do individualized marketing within the store without ever posting sale prices on store windows or walls. This makes it harder for the competition to know what and how much the store is discounting,” explains Cathcart.

But it is not just the industry that benefits from VHS Network’s SmartCARD technology either. “Loyal customers will benefit by getting additional discounts on the items that they have a track record of being interested in. Consumers own their consumption profile. That can be a powerful tool,” says Cathcart.

Because the information is accessed instantly and further data is collected without linking to a network, SmartCARD is also extremely cost-efficient. The retailer can load updates on the central database just once a day.

However, SmartCARD may not be for everyone, at least in the beginning. As with all new technologies, a certain demographic segment typically adapts the technology in its early stages. “SmartCARD technology seems to appeal most to 25-50 year olds, who already have high expectations of advanced technology to simplify their lives. From both VHS Network’s and our client companies’ perspective, this doesn’t matter. That demographic segment includes approximately 50% of the population and the majority of the purchasing power,” Cathcart says.

In Europe, credit card associations and banks are promoting smart cards as a convenient and safe method of payment. “It really is a win-win situation for everyone involved. Even though merchants will have to buy a card reader that may cost $50-$400, they are relieved of the safety risk of handling cash. Banks like the system, because they can issue cards to people with a less than perfect credit records. And customers can manage their credit better and don’t have to fumble for change for small purchases that normally couldn’t be charges,” points out Cathcart.

VHS Network is one of the emerging players in the SmartCARD market. Groupmark Canada, the licensor of SmartCARD technology, has been a leading Canadian loyalty marketing firm for over 25 years. Groupmark was the first company in North America to offer a service totally dedicated to the implementation, marketing and management of the SmartCARD.

Details board of directors yesterday announced the appointment of Alex W. “Pete” Hart to its Board of Directors. Hart, former Chief Executive Officer of MasterCard International and Advanta Corporation, adds e-commerce and financial services expertise to the board of directors. is the world’s first branded network of 2,500 vertical community portals, providing Net users quick and easy access to the best content, community, and shopping available online.

“We are extremely fortunate to have Pete Hart join our board of directors,” said Vincent J. Schiavone, founder and chief executive officer of “With over 30 years of management, financial services, and emerging technology experience, Pete is an invaluable resource as establishes the next-generation of Internet portals.”

Hart served as chief executive officer of Advanta Corporation, a diversified financial services company, from 1994 to 1997. Prior to joining Advanta, he was president and chief executive officer of MasterCard International, and a member of the board of directors for Europay International.

Before joining MasterCard, Hart spent ten years with First Interstate Bancorp. In 1978, he joined as president and chief executive officer of First Interstate Services Company, a system-wide technology and operations subsidiary. In 1981, he was named executive vice president, responsible for consumer banking and operations. He also became the founding chairman of the board of the CIRRUS System, a global network of shared automated teller machines. Hart is currently a member of the advisory board of the Internet Capital Group.

“There is a simple brilliance to the network,” said Alex W. “Pete” Hart. “I look forward to helping the company further develop its easy- to-use approach to the best information, products and services on the Internet.”

About redefines Internet search through its branded network of over 2,500 vertical community portals, offering an enhanced Net experience through direct access to the best content, interaction and commerce available online. Each site is branded with the number “4” and the topic, creating easy-to-remember names, such as,,, and

Free of charge, the network delivers the brands and services users expect to find on the first page of results, neatly organized under useful headings. Further, each portal provides online community built around users common interests. has formed alliances with some of the leading content providers and directories on the Internet. By partnering with other content providers and distributors of information, is able to reach an international community of millions, and still cater to each individual’s most specific needs. The company has a strategic partnership with Safeguard Scientifics and a technology partnership with Inktomi. The company also has business alliances with Reuters, AccuWeather, and InfoSpace. is headquartered near Philadelphia in Wayne, PA and has offices in Los Angeles, CA.


Lucky Strike

Bingo and Gaming International announced Thursday that the Los Angeles Superior Court has ruled that the ‘Lucky Strike’ machines are not gambling devices. The machines, which resemble the one-armed bandits sell pre-paid phone cards. At the same time of purchase, the machines enter the customer in a promotional sweepstakes which offers cash prizes from $1 to $1,000. What makes this legal is the fact that no purchase is necessary to play and the odds of winning are posted on the side of the machine. Look for the ‘Lucky Strike’ pre-paid phone card vending machines to start appearing by the years end.


VISA Hosts

VISA International will host the first-ever international Government Payment Card Conference for international, federal and state government agencies. Representatives from the U.S. and the UK will discuss the various aspects of implementing and running Government Purchasing and Travel & Entertainment Card programs, similar to the U.S. Government Services Administration’s ‘Smart Pay Program’. A ‘Government Payment Card’ is a payment card in which there are no revolving interest payments. The ‘VISA Travel’ card provides government agencies with a method of payment for employees’ travel needs while limiting ATM access and setting total spending limits.



Electronic Identification, announced yesterday a new ID card technology called ‘e*PICS’. The card combines radio frequency technology and biometric identification to identify the user without the use of passwords and PIN numbers. A digital profile of the individual is created by capturing a digital fingerprint, photograph and personal details. This information is then burned into a chip on the card. The information is then extracted from the card via radio frequency which checks the validity against the network information.



Ukraine’s ‘PrivatBank’ announced Wednesday that Hypercom will provide end-to-end solutions for their precessing network. The agreement includes 30 ‘Integrated Enterprise Networking’ nodes and more than 1000 ‘T7P’ POS terminals. One Hypercom ‘IEN 6000’ network controller will be installed at the bank’s central computer centre in Dnepropetrovsk, Ukraine with smaller IEN 2500 models to be installed at 16 major regional bank branches throughout the Ukraine.