The CEPS Group (Europay International, Visa Espana/SERMEPA, Visa International and ZKA) announced last week that specifications to enable the world’s electronic purse programs to work together will be published on 30 December. The development of the Common Electronic Purse Specifications (CEPS) is a major step forward in creating an open, global standard for the electronic purse and will help to further the growth of smart cards world- wide.

The CEPS Group involved in the development of the Specifications will make them available to security labs for review. Once the evaluation period is complete on January 31, 1999, a final version of the Specifications will be made public. As most of the electronic purse developments are taking place in Europe, input from European institutions, including ECBS (European Committee for Banking Standards), has been instrumental in establishing the Specifications. Consequently, it is anticipated that the first programs to migrate will be in Europe where the introduction of the euro is an additional driver behind the need for a common standard. Once implemented, CEPS will enable cardholders to use their electronic purse cards both at home and abroad.

Organisations from 22 countries, representing more than 90 per cent of the world’s electronic purse cards have agreed to implement the CEPS standard. These include Visa International, Visa Espana/SERMEPA, ZKA, Europay International, Proton World International, SSB in Italy, NETS in Singapore, the Swedish banks supporting the ‘Cash’ purse scheme, and Europay Austria. Groupement des Cartes Bancaires is also committed to this initiative and to becoming an active member of the CEPS Group.

CEPS defines the requirements needed by an organisation to implement a globally interoperable electronic purse program. It requires compatibility with the EMV Specifications for chip cards and defines the card application, the card-to- terminal interface, the terminal application for point-of-sale and load transactions, data elements and recommended message formats for transaction processing. It also provides functional requirements for the various electronic purse scheme participants and uses public key cryptography for enhanced security.

The effort to create a common standard for the electronic purse has gained considerable momentum since the public announcement in June that the world’s largest purse operators had created a working group to develop industry- wide, open specifications. CEPS is the realisation of these efforts.


DOJ Timetable

Judge Barbara S. Jones of U.S. District Court in Manhattan decided Friday to delay the Department of Justice’s antitrust lawsuit against VISA and MasterCard for an additional three and half months. The original date was set for Oct. 29, 1999 by Judge Milton Pollack. Pollack recused himself from the proceedings due to a conflict of interest. The new trial date will be Feb 8, 2000. Another hearing has been scheduled for Jan. 21 to discuss matters pertaining to document production.


Taxi Pay

MasterCard International says it will introduce a new service in Japan which will enable taxi fares to be paid through online portable terminals mounted inside taxis. This is the first time a service of this kind will be available in Japan. MasterCard pioneered this type of payment system in Australia five years ago and has extended programs in Taiwan, Singapore and Korea. Prior to MasterCard’s launch of this system, terminals inside taxis were not connected online enabling invalid credit cards to be used. As a result, other credit card companies in Japan have been forced to terminate their business dealings with taxi companies.The new MasterCard system enables the card data to be sent through an online portable terminal to MasterCard’s Japan Network Services Co. Ltd. Anzen Taxi, a participant in the test project with a fleet of 670 cards, will be the first company in Japan to operate taxis equipped with online portable terminals.



The nation’s largest check cashing chain, ACE Cash Express announced Thursday it will begin selling Travelers Express money orders throughout its company-owned stores before the end of this year. The new money orders, supplied by Viad Corp.’s Travelers Express Company, will be printed under the ACE private label. Historically, ACE used the cash from money order sales as its primary source of working capital. Now, however, ACE has picked up a $110 million revolving line of credit to support cash needs. Wells Fargo Bank acted as the lead agent and Chase Bank of Texas acted as the co-agent for the bank financing. ACE has a network of 839 stores comprising 739 company-owned stores and 100 franchised stores in 29 states.



EDS announced Thursday that its ‘Spectrum Commercial Card’ processing system is Year 2000-ready. The ‘Spectrum’ system processes transactions for a sizable number of commercial banks and private label institutions. EDS ‘Spectrum Commercial Card Processing’ offers commercial banks and businesses corporate purchasing and fleet card processing services, including extensive capabilities in authorization, billing and reporting. Nearly nine months of Year 2000 assessment, remediation and testing concluded this fall, with more than two million lines of computer code in the system deemed Year 2000-ready.


NDC 16th 30%+ Q’

National Data Corporation reported that its second quarter results for the period ending November 30 continued a long term trend of significant growth.

The second quarter was the sixteenth straight quarter in which operating income growth exceeded 30%.  For the period, the company posted growth of 100% in operating income, 123% in net income and 105% in earnings per share on revenue growth of 33%.

Revenue in the period grew from $144.3 million to $191.5 million, a $.750 billion annualized rate.  Operating income increased from $14.9 million to $29.7 million, net income from $7.1 to $15.7 million, producing an earnings per share growth from $.22 to $.45.

Revenue for the first half of the fiscal year increased 31% from $292.2 million to $383.2 million.  Operating income grew 65% from $36.7 to $60.6 million; net income increased 72% from $18.7 to $32.1 million and earnings per share grew 59% from $0.58 to $0.92.  Operating margins grew from 12.5% to 15.8%.

Earnings before interest, taxes, depreciation and amortization for the first half was at a $176 million annualized level.  This is the equivalent of $5.03 per share.

Robert A. Yellowlees, NDC chairman and chief executive officer said, “Quarter after quarter, for the last five years, our people have demonstrated their capacity to produce consistent, predictable growth.

“Over this same five year period, we have executed a systematic plan that has resulted in NDC Health Information Services becoming the world’s largest multisegment health information services company.  Our broad based provider segment presence, combined with the breadth of our EDI network based information services, is unique.

“During this time, we have built an end to end set of offerings and diverse distribution channels, converting our credit card authorization business to a leader in end to end value added electronic commerce solutions.     “We have a proven record in managing EDI network based value added information businesses.

“We also have strong earnings capability, high recurring revenue, a diverse customer base and product line, as well as strong cash flow.  These characteristics will continue to yield positive results for our shareholders.”

National Data Corporation is a leading provider of health information services and electronic commerce solutions that add value to its customers’ operations.

This document may contain forward-looking statements concerning the Company’s operations, current and future performance and financial condition. These items involve risks and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, development difficulties, the ability to consummate and integrate acquisitions, and other risks detailed in the Company’s SEC filings.  The Company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

                          NATIONAL DATA CORPORATION
                        CONDENSED STATEMENTS OF INCOME
                     (In Thousands Except Per Share Data)

                                           Second Quarter
                                 11/30/98                11/30/97
    Health Information Services $ 112,441                $ 72,499
    Electronic Commerce:
     Integrated Payment Systems    46,083                  38,742
     Global Payment Systems        40,795                  39,835
     Intercompany Revenue          (7,797)                (6,751)
                                   79,081                  71,826
                                  191,522                 144,325

    Cost of Service                98,852                  73,785
    Sales, General
     & Administrative Expenses     62,970                  55,670

                                  161,822                 129,455

    Operating Income               29,700                  14,870

    Interest and Other Income         844                     456
    Interest and Other Expense     (3,929)                (3,040)
    Minority Interest                (817)                  (607)
                                   (3,902)                (3,191)

    Income Before Income Taxes     25,798                  11,679
    Provision for Income Taxes     10,061                   4,617

    Net Income                    $15,737                  $7,062

    Basic earnings per share        $0.47                   $0.23

    Diluted earnings per share      $0.45                   $0.22

                          NATIONAL DATA CORPORATION
                        CONDENSED STATEMENTS OF INCOME
                     (In Thousands Except Per Share Data)

                                 11/30/98                11/30/97
    Health Information Services $ 221,837               $ 147,801
    Electronic Commerce:
     Integrated Payment Systems    94,490                  77,572
     Global Payment Systems        82,255                  80,195
     Intercompany Revenue         (15,378)               (13,339)
                                  161,367                 144,428
                                  383,204                 292,229

    Cost of Service               199,227                 148,838
    Sales, General
     & Administrative Expenses    123,371                 106,722
                                  322,598                 255,560

    Operating Income               60,606                  36,669

    Interest and Other Income       1,418                     940
    Interest and Other Expense     (7,655)                (6,069)
    Minority Interest              (1,812)                (1,308)
                                   (8,049)                (6,437)

    Income Before Income Taxes     52,557                  30,232
    Provision for Income Taxes     20,497                  11,580

    Net Income                    $32,060                 $18,652

    Basic earnings per share        $0.95                   $0.61

    Diluted earnings per share      $0.92                   $0.58

                          NATIONAL DATA CORPORATION
                           CONDENSED BALANCE SHEETS

                                (In Thousands)

                             November 30, 1998         May 31, 1998

     Cash                          $7,848                  $3,241
     Trade Accounts Receivable    151,590                 146,664
     Inventory                      6,393                   5,253
     Other Current Assets          23,315                  16,968
       Total Current Assets       189,146                 172,126

     Property, Plant & Equipment   92,385                  74,234
     Intangibles and Goodwill     431,620                 458,223
     Other Assets                  43,377                  26,632

    Total Assets                 $756,528                $731,215

     Current Liabilities         $120,202                $111,097
     Line of Credit Payable        67,000                  75,000
     Long Term Debt               149,497                 155,477
     Other Long Term Liabilities   31,165                  22,703

    Total Liabilities             367,864                 364,277

    Minority Interest              19,762                  19,003

    STOCKHOLDER’S EQUITY          368,902                 347,935

    Total Liabilities
     and Stockholders’ Equity    $756,528                $731,215


Credit Store Card Bonds

The Credit Store Inc. said Thursday that it has completed its second securitization of performing credit card receivables.

The transaction involved the sale of approximately $7.8 million in seasoned, fully-performing, credit card receivables to TSC Funding II Inc., a wholly-owned qualified special-purpose corporation which was established for this transaction. TSC Funding II Inc. has been funded in part through a $5 million, 39 month term loan from Miller & Schroeder Investments Corporation of Minneapolis. The Credit Store will continue to service the credit-card receivables sold to TSC Funding II.

In October 1998, The Credit Store completed a similar securitization of approximately $6.2 million in fully-performing credit card receivables. This transaction was also financed by Miller & Schroeder Investments Corporation of Minneapolis.

Martin J. Burke III, chairman and chief executive officer commented: “This transaction demonstrates there is a developing market for our performing credit card receivables. We are especially encouraged that The Credit Store was able to complete its first two securitizations under very difficult market conditions for asset-backed securities. Few specialty finance companies have been successful in securitizing their receivables during the past several months.”

The Credit Store Inc. is a nationwide financial services company engaged in the acquisition and collection of non-performing consumer receivables and the origination and servicing of credit cards. The company acquires portfolios of non-performing consumer debt at substantial discounts, and then uses its direct marketing expertise to contact and negotiate settlements with consumers, most of the time placing settlement on new unsecured credit cards offered through The Credit Store.


CU I-Super Branch

NAFCU Services Corp. Thursday announced that it has added First Data Direct Banking’s fully functional Internet branching services to its CUWEBS (Credit Union Web Enabled Business Solutions) program.

Called the I-Super Branch, this new CUWEBS offering combines Web site services with online branching and bill payments, making it the program’s most technologically advanced online financial services offering.

This new online branching and bill paying component is being provided by CUWEBS through a relationship with First Data Direct Banking, one of the nation’s top providers of outsourced Internet services for financial institutions. With CUWEBS’ I-Super Branch program, NAFCU members and all credit unions can take advantage of First Data Direct Banking’s popular NetPrecision product at significant discounts.

The addition of I-Super Branch to CUWEBS creates four distinct program levels from which credit unions can choose. This allows credit unions seeking a simple, low-cost Web presence to upgrade to more sophisticated levels of Internet activity as their business needs change.

I-Brochure allows the credit union to “get its feet wet” by providing an online brochure as well as an opportunity for members and potential members to send e-mail communications to the credit union. I-Interactive builds upon the I-Brochure by offering online applications, calculators and check ordering. I-Branch offers credit unions with online branching capabilities, while I-Super Branch includes online branching with bill payment.

NSC’s CUWEBS program assists credit unions in creating and growing their use of the World Wide Web to deliver and promote member services. Credit unions can also take advantage of value-added CUWEBS programs such as CUWEBS Member ISP (Internet access for members), CUWEBS Rebate Program (monthly hosting fee rebates), and CUWEBS Marketing for Success (off-the-shelf marketing materials).

“We’re very excited about this opportunity to join the NAFCU program,” said Randy Kahn, president of First Data Direct Banking. “Online branches are a natural extension of the ‘communities of interest’ that make credit unions and the Internet such a potent combination.”

“First Data Direct Banking was selected to provide our high-end Internet service following a rigorous evaluation of the company, its products and services,” said Steven K. Joiner, president of NAFCU Services Corp. A significant factor in the decision was First Data Direct Banking’s ongoing commitment to the security of its Internet services, Joiner said.

In May, the company became the first financial services provider to earn Web Host Compliant certification from the International Computer Security Association, an independent agency that audits and verifies network security.

About NAFCU Services Corp.

NAFCU Services, subsidiary of the National Association of Federal Credit Unions (NAFCU) conducts in-depth research and works with the nation’s leading suppliers to develop and market value-added products and services for credit unions.

CUWEBS was designed only after a significant market research effort solicited input from credit unions of all sizes across the country. “The program was designed by and for credit unions,” Joiner explained.

All NSC products and services are available to all credit unions, both NAFCU members and non-members. NAFCU members often enjoy additional benefits and substantial discounts on products and services provided through NSC.

About First Data Direct Banking

First Data Direct Banking builds and hosts customized Internet financial service solutions for financial institutions of all sizes.

Using the NetSpeed process, financial institutions can have fully functional, branded Web sites up and running in just 30 business days with the NetPrecision system.

Los Angeles-based First Data Direct Banking ties leading-edge online financial services partnerships and template, custom-built or existing Web sites into transaction processing provided by electronic payments processing leader First Data Corp. Direct Banking can be found on the World Wide Web at [][1].

Atlanta-based First Data Corp. (NYSE:FDC) is a global leader in payment systems, electronic commerce and information management products and services. First Data and its principal operating units process the information that allows millions of consumers to pay for goods and services by credit, debit or smart card at the point of sale or over the Internet; by check or wire money.

For further information about First Data, visit the company on the Internet at [][2].

Contact Linda Hagopian at CUWEBS at 800/610-2177 to learn more about this new offering from NAFCU Services Corp.



Thinner SET

San Jose-based Trintech introduced ‘PayWare NetPOS’ yesterday, providing four degrees of security, ranging from SSL to hybrid SSL/SET to Certless SET and end-to-end SET. With “Certless” SET, consumers are given a virtual wallet that is downloadable from an issuer, portal or ISP’s Web site. The wallet is “thinner” than a regular SET wallet since it does not include a SET digital certificate issued by a third party. In the case of “Certless” SET, the wallet generates a SET message that is sent to the merchant as a SET transaction. It includes an encrypted personal identifier that the merchant cannot decode as in the case of full SET. This is more secure than the previous combinations because the consumer is assured the merchants are not only SET-certified, but the wallet confirms that the merchants are legitimate. End-to-end SET includes a consumer digital certificate in the process and is designed for purchasing environments where security is paramount. Unlike competing SET wallets, the Trintech version is up to four times thinner due to the superior compression techniques incorporated in its development.


Atevo Travel for Discover

Atevo Travel () and Discover Card () announced the addition of Atevo Travel’s top-notch products and services to Discover ShopCenter, the successful Internet shopping gateway.

Discover Cardmembers have easy access to all of Atevo Travel’s robust reservations services, which include airlines, hotels, rental cars, and complete vacation and cruise packages. They also have convenient access to Atevo Travel’s award-winning destination information, feature and news articles, maps, photos, community forums, and more.

Plus, now through Dec. 31, 1998, Discover Cardmembers receive extra savings whenever they purchase an Atevo Travel vacation or cruise package totaling at least $500 before taxes. Specifically, Cardmembers receive:

—   A $25 discount on a vacation package or cruise totaling $500 to $999 per booking before taxes.

—   A $50 discount on a vacation package or cruise totaling $1,000 to $1,999 per booking before taxes.

—   A $100 discount on a vacation package or cruise totaling more than $2,000 per booking before taxes.

Certain restrictions apply.

“For shoppers dreading holiday crowds and traffic, Atevo Travel’s special savings offer on Discover ShopCenter comes at the ideal time,” observed Hyun Shin, president and CEO of Atevo, Inc. “With over 600 vacation packages and over 100 cruises to choose from, all in the convenience of one’s home or office, shoppers are bound to find the right gift for the holidays and beyond.”

“Discover ShopCenter provides our Cardmembers with a convenient way to obtain meaningful product discounts online from some of their favorite retailers,” said Joe Bonefas, vice president of technology products, Discover Financial Services, NOVUS Services, Inc. “In research we conducted earlier this year, Cardmembers told us that discounts are important to them. Discover ShopCenter responds to their requests, and brings added value to our relationship with Cardmembers.”

The Atevo Travel page on Discover ShopCenter can be found at .

About Atevo, Inc.

Atevo, Inc. was founded in 1996 as a full-service online travel company dedicated to delivering to consumers a complete, user-friendly travel solution that integrates content, community, and commerce. Atevo Travel, the company’s Web site (, was recognized as a “Best of the Web” travel site by PC Magazine and as the Editor’s Choice for a general travel resource by U.S. News and World Report Online.

The site offers easy-to-use online travel reservations and comprehensive practical travel information, including original, changing travel articles. In addition, it fosters positive participation of travelers through innovative features such as Your Travel Page, a free personal travel page, and Travelers’ Exchange, an extensive set of message boards.