VISA Invests in CyberSource

CyberSource Corporation announced yesterday that Visa International has made a significant equity investment in CyberSource in order to help foster a more profitable online commerce environment for member banks and their Internet merchants.  A leading provider of electronic commerce solutions, CyberSource designs, develops and markets CyberSource on-demand commerce applications, a portfolio of solutions ranging from secure online payment, a highly accurate fraud screening application and secure digital delivery.

“CyberSource’s product line, the satisfaction of its customers, and the strength of its management team are all areas that we reviewed during our investment process,” said Todd Chaffee, Executive Vice President, Corporate Development and Alliances, Visa International.  “This investment will enhance our collaborative activities focused on delivering more powerful and profitable e-commerce solutions to Visa member banks and their customers.”

In addition to the equity investment, the two companies have begun exchanging data and expertise.  Future coordinated activities aimed at enhancing the viability of online shopping for Visa member banks and their merchants are currently in the planning stage.

“CyberSource has worked closely with Visa over the last few months, and we are pleased to be recognized as a strategic partner in Visa’s endeavors to make the Internet a safer, easier place to do business,” said Bill McKiernan, President and CEO of CyberSource.  “There are many areas where we can work together, from shielding Web merchants and their banks from Internet credit card fraud to implementing more robust payment capabilities to help merchants come online faster and less expensively.”

About CyberSource on-demand commerce applications

CyberSource on-demand commerce applications enable businesses to securely sell products and services via the Internet, worldwide.  Using CyberSource on-demand commerce applications, businesses automate operations and gain the benefits of outsourcing complex Internet commerce infrastructures, without giving up flexibility and control.  Using messaging software installed on a commerce server (or URL link from a web page to a secure order page hosted at CyberSource) businesses remotely access any or all CyberSource on-demand commerce applications, including:

* CyberSource GeoPay; high-performance global payment processing gateway

* CyberSource IVS; Internet fraud screen

* CyberSource GlobalTax; real-time sales & VAT tax calculation

* CyberSource TerritoryManager export compliance and distribution control

* CyberSource NOTIFY; secure fulfillment messaging — EDI and e-mail

* CyberSource SmartCert; secure digital delivery

CyberSource also offers the following services:

* CyberSource Global Rights Registry Services, for digital property management and digital warehousing

* CyberSource Professional Services, for E-commerce implementation

About CyberSource

CyberSource is a global provider of on-demand commerce applications and digital rights management services that enable Internet merchants to securely conduct business online in real time.  Global, on-demand commerce applications include a high performance payment gateway, Internet fraud screen, real-time export compliance and territory management, fulfillment messaging and digital delivery applications; as well as rights management services for digital property.  Leading web merchants use CyberSource on-demand commerce applications to securely transact from hundreds to tens-of-thousands of orders per month, representing over $250 million dollars of Internet commerce. CyberSource’s customers include Adobe, Autodesk,,, Cahners, Compaq, IBM/Lotus, K-Tel, Liquid Audio, Microsoft, Netscape, Network Associates, Pantone, Playboy, Qualcomm, Surplus Direct, Symantec, and T. Rowe Price.  Founded in 1994, CyberSource is a privately-held company headquartered in San Jose, California and maintains offices in the United States and Europe, along with a network of virtual data centers around the globe to service local markets.

For more information visit .

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Small Screen

Bull announced Tuesday it is upgrading its range of small cash dispensers, inaugurated with the successful ‘Minicash’, to its newest offer, ‘TwinCash’. With a built-in PC Pentium, ‘TwinCash’ can accommodate applications requiring a large memory capacity, such as graphics and color animations, while at the same time reducing running and maintenance costs. It also features a 10″ LCD color screen, wide keyboard, LED indicators for customer guidance, and ease of access for the disabled. It is also the smallest dispenser on the world market with a footprint of 0.2 sq. m (2.15 sq. ft.), ideally suited for cramped environments, whether in bank branches or other customer contact locations, and in a stand-alone island of automation or through-the-wall configuration. The dispenser also is delivered standard with two note cassettes (240 mm capacity).



VISA International announced Monday that the ‘VISA Open Platform’ is to be used as a basis for specifications which will enable smart cards to be loaded with applications via GSM mobile phones. VISA says it will work with the ‘Special Mobile Group’ of the European Telecommunications Standards Institute (ETSI) to propose a new standard for application loading and key management on a Java Card-based SIM. VISA expects to submit a proposal for ratification by SMG9 to recognize the ‘VISA Open Platform’ as a standard to be adopted for Java Card-based SIMs.  Once approved, a section of the ‘VISA Open Platform’ relative to the activities of a SIM card would become the standard for all Java Card SIMs.  It is projected that in the year 2000, GSM will have over 200 million subscribers.


GemClub-Memo Card

Gemplus introduced ‘GemClub-Memo’ Monday, a high-performance card aimed at the loyalty market. The new card is the first memory card to support the industry standard T=0 communication protocol. Using T=0, ‘GemClub-Memo’ eliminates the need for developing specific drivers for each terminal that accepts cards. Card issuers can implement loyalty and other retail programs seamlessly.The card also features two distinct counters on its chip, allowing two applications to run on the card, independently and secure of each other, or interactively. With 2kb of storage, card issuers can store more cardholder information on the chip.



Motorola’s Worldwide Smartcard Solutions Division unveiled its new ‘M-Smart’ world of platform solutions enabling organizations to quickly deploy and build value-added smart card applications in areas such as financial, telecom (SIM cards and toolkits), transit, campus/access, government ID and healthcare. The integrated platforms include cards, card operating systems, readers and application development workbenches. The platforms are designed for maximum flexibility to permit multiple electronic purse schemes and to allow for customization and development of multiple programming languages.The three new card platforms include: 1. The ‘M-Smart Mercury Platform’ , an ASIC-based solution optimized for application providers that need a basic platform for building fast, secure and reliable application solutions in areas such as access control/campus, government ID, transit and basic retail. 2. The ‘M-Smart Venus Platform’, a diverse microprocessor-based  platform that is ideal for building multi-application solutions with advanced memory and processing capabilities. 3. The ‘M-Smart Jupiter Platform’, a powerful 32-bit RISC processor-based platform allowing for dynamic application download, robust security, significant memory and maximum flexibility in building value-added smart card solutions.


Cryptoflex 8K Card

Schlumberger released ‘Cryptoflex 8K’, a new high-security smart card yesterday, offering ultra-fast public key cryptography combined with an expanded memory capacity for additional applications.The card is designed for secure access to a company’s network, as well as the means to secure e-mail and web communications over open networks via digital signatures and certificates. The ‘Cryptoflex 8K’ smart card offers hardware-based mathematical capabilities which are capable of executing a 1024-bit key length RSA signature in under half a second. The card’s 8K of user-programmable memory also provides ample space for a user’s digital credentials — such as pairs of keys and digital certificates — for network single-sign-on, and one or more optional functions, such as building access or electronic-purse payment for campus facilities.


Cable&Wireless Phone Cards

Cable & Wireless released the latest prepaid phone calling cards yesterday which include the following:

Que Pasa-Magellan Communications Promotional Magellan Communications, a Florida-based company, issued 500 20-minute phone cards in May to promote Orlando’s Hispanic Magazine Que Pasa. The front of the card features the cover of a recent issue of Que Pasa, picturing famous U.S. boxer Oscar del la Hoya. The cards are made of 30 mil styrene and card instructions are available in both Spanish and English. The card features include: information services, voice, fax mail, conference calling, speed dial, message delivery and auto expiration. They are also rechargeable.

Sister Cities Promotional ![][1] This colorful phone card was designed for Sister Cities, an international association that helps to promote cultural exchange between the U.S. and various international countries. The card, illustrating the Greater Miami skyline and palm trees, was given away to all the attendees of their international conference held in Miami July 28 to August 1. This is a limited edition card, and 2000 3-minute cards were issued. The cards are made of 30 mil PVCand offers custom voice prompt instructions in both English and Spanish.

bueno Talk Time Retail ![][2] In June, Caliente Designs produced a retail phone card product for sale to their distributors, such as Affiliated Foods and a variety of others. A total of 1000 cards were produced in $5.00 and $10.00 denominations. On the face of these eye catching cards is Caliente’s signature logo of red hot peppers with a flame highlighting the denomination. It is printed on 30 mil PVC material. Voice prompt instructions are in both English and Spanish.

Union Tools-Razor-Back Promotional ![][3] Union Tools Corporation produced a phone card which was giveaway at a trade show in July to all show attendees. Union Tools was promoting their Razor-Back Professional Tools With An Attitude series and the 1999 Razor-Back Sweepstakes. A total of 3500 cards were produced, in 10-minute and 30-minute denominations. This limited edition card printed on 30 mil PVC and includes custom voice prompts. It bears the Razor-Back brand name on the front of the card in bold red letters with dark gray boot prints on a gray background.

SmartCall-Partners in Education Fundraising ![][4] SmartCall issued this phone card in August as part of a fundraising campaign whose proceeds would go to benefit the Philiadelphia library system. There were 1000 cards issued, in $5.00 and $10.00 denominations. The card doubles as a doubles as a discount card for places of interest in the Philadelphia area and is sold at all library branches.

Arch-The Personal Paging Company Promotional ![][5] Arch Communications, one of the largest providers of paging and comunications services, has over 200 locations nationwide. In July, Arch issued these 2000 30-minute phone cards to their paging customers when they renewed their paging services. The phone card has an orange background with the Arch logo and is printed on 30-mil digital styrene.

U.S. West/Dex Promotional U.S. West Comm and Dex (“Your Directory Expert”) combined their advertising efforts with a custom prepaid card in a campaign to promote their services. They issued 5400 10-minute phone cards in June. The card has large black type that reads “Welcome Home” and their logo is over a background of yellow faded to white The card is printed on 20 mil digital styrene.

NextLink Promotional ![][6] NextLink is a telephone company primarily offering local and long distance service. Based out of Oakbrook, Illinois, NextLink targets small to midsize businesses. The company issued 1500 15-minute phone cards to promote customer retention. It includes custom voice prompts and system features such as: information services, conference calling and voice/fax mail to name a few. On the front of the card is a large white slanted “X” over a purple, orange and black background. It is printed on 30 mil digital styrene.

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CheckFree Goes One-To-One

BroadVision, Inc., the leading worldwide supplier of one-to-one Internet business applications for relationship management across the extended enterprise in personalized Internet banking solutions, Monday announced that the BroadVision One-To-One Financial application will provide financial institutions with the ability to connect directly to Atlanta-based CheckFree’s electronic bill payment and remittance processing engine.  This will allow banks to provide seamless processing of electronically initiated bills and payments for their customers.

BroadVision One-To-One Financial Version 4 is a comprehensive Internet banking and bill payment solution integrated with extensive marketing personalization and one-to-one relationship management capabilities.

Using specifications provided by CheckFree, the nation’s leader in electronic payment processing, BroadVision developed One-To-One Financial to enable banking servers built by BroadVision to have a direct connection to CheckFree’s payment processing network.  Once available, financial institutions will establish a payment processing agreement with CheckFree to take advantage of this functionality.

“Electronic bill presentment and payment is the driving force behind the rapid growth of Internet banking,” said Samir Mehta, senior product manager at BroadVision, Inc.  “By enabling our product to work in conjunction with CheckFree, we’re helping financial institutions offer their customers the services they are demanding.”

“BroadVision’s One-To-One Financial services product enables financial institutions to strengthen their relationships with their customers,” said Matt Lewis, senior vice president of Electronic Commerce Product Management for CheckFree.  “Access to CheckFree’s high-quality, low-cost processing infrastructure is an important component to any electronic banking and payment offering, and today BroadVision is joining the ranks of providers with that access.”

About CheckFree

Founded in 1981, CheckFree (), the operating subsidiary of CheckFree Holdings, Inc., is the leading provider of electronic commerce services, software and related products for more than 2.4 million consumers, 1,000 businesses and 850 financial institutions.  CheckFree designs, develops and markets services that enable its customers to make electronic payments and collections, automate paper-based recurring financial transactions and conduct secure transactions on the Internet.

About BroadVision

BroadVision, Inc. is the leading worldwide supplier of one-to-one Internet business applications for relationship management across the extended enterprise.  BroadVision’s end-to-end solutions enable companies to rapidly deploy and cost-effectively operate secure, scalable, personalized, and flexible electronic business and knowledge management applications for the financial services, retail, distribution, high technology, telecommunications, and travel industries.  The company’s entire product line has experienced exceptional growth and increasing acceptance by Global 2000 businesses with over 200 customers including Cisco, American Airlines, Nortel/BayNetworks, Credit Suisse, Development Bank of Singapore, Fingerhut, Hewlett-Packard, IBM, Liberty Financial, META Group, RS Components, Standard Chartered Bank, Silicon Valley Bank, Solectron, Thomas Cook and Visa USA.  BroadVision is headquartered in Redwood City, Calif. and maintains an extensive network of subsidiaries and licensed resellers in North and South America, Europe, Australia and Asia.  The company can be reached at 650-261-5100 or at .


AmEx 3Q

American Express reported record third quarter net income of $574 million yesterday, up from $524 million in the same period a year ago. Travel Related Services reported record quarterly net income of $362 million, up 17% from $310 million in the third quarter a year ago. TRS’ net revenues increased 8% from the prior year, reflecting higher billed business in the U.S. and internationally ($56.7 billion), as well as growth in U.S. card loans ($15.4 billion) and higher travel commissions and fees. The improvement in billed business was the result of a greater number of cards outstanding (44.1 million) and higher spending per basic cardholder ($1704), which reflects the benefits of rewards programs and expanded merchant coverage.  This increase came despite the slowdown in many international markets and general tightening by corporations of travel and entertainment expenses. Third quarter net chargeoffs declined to 3.8% from 4.1% one year ago. Delinquency (30+ day) also dropped to 3.2% from 3.6% last year. U.S. card volume was $41.5 billion for the third quarter. For complete 3Q/98 financials and historicals for American Express visit CardData ([][1]).



TransAct Slips 15%

TransAct Technologies Incorporated, a leading producer of transaction-based printers, said today that revenue for the third quarter ended September 26, 1998 was $13.6 million, down 15% from $16.0 million for the third quarter last year.

Operating income decreased to $954,000 from $2,564,000 recorded in the third quarter a year ago. For the three months ended September 26, 1998, net income declined to $533,000, or $.09 per share, from $1,582,000, or $.23 per share, for the third quarter of 1997.

Revenue for the nine months ended September 26, 1998 was $39.4 million, down 14% from $45.6 million in the same period a year ago. Operating income in the first nine months of 1998 was $2,441,000 compared to $6,591,000 in 1997. Net income for the first nine months of 1998 was $1,398,000,or $.22 per share, compared to $4,029,000, or $.58 per share in 1997.

Richard L. Cote, TransAct’s Executive Vice President and Chief Financial Officer, said that “the recently-concluded three months continued the trend of the past few quarters–strong results in our point of sale (POS) market, specifically on the international side of our business, offset by continuing soft results in our other three markets. Regarding the international POS market, we are particularly pleased with the growth in shipments into Europe and Latin America through our Oki relationship.”

Mr. Cote continued, “The reasons behind the lower revenue in our gaming and lottery, kiosk and financial services markets vary by market. As previously noted, customer-driven requirements resulted in a reduction in our sales of on-line lottery printers in the third quarter this year from last year’s unusually high level in the same quarter, and the uncertainty in South Carolina surrounding the future of video poker continues to hamper our gaming and lottery revenue. The continuing slowdown in orders for our printers used in automated teller machines (ATMs) has hurt revenue in our financial services business. And, finally, kiosk printer demand, which is based on project initiatives in several companies, has been similarly soft, although the number of outstanding proposals is higher than ever.”

“We continue to invest to expand our product lines. We are monitoring expenses very carefully and sustaining our R & D outlays. We our encouraged by prospects for our new products, which emphasize POS applications and are scheduled for introduction next year.”

“Despite softness in several of our markets,” Mr. Cote concluded, “our globalization and product development efforts position the Company to fully participate in the markets we serve over the long term and we believe demand will recover.”

TransAct designs, develops, manufactures and markets transaction-based printers and related products under the ITHACA and MAGNETEC brand names. The Company’s printers are used to provide transaction records such as receipts, tickets, coupons, register journals and other documents. TransAct serves four vertical markets: point of sale, gaming and lottery, kiosk and financial services. The Company sells its products directly to end users, original equipment manufacturers, value-added resellers and selected distributors. Please visit TransAct’s website located at to receive more information about the Company’s products and selected financial data.


Household 3Q

Household International reported $318 million in net income for third-quarter compared with $264.7 million for the third quarter of 1997. In figures released to CardData, Household reported $15,904,227,000 in 3Q receivables, down significantly from the $17,169,077,000 reported in the second quarter. During the third quarter, Household sold a $500 million VISA/MC portfolio related to its previously discontinued Ameritech cobranding program.The company sold this particular portfolio because it believed it would not meet hurdle rates in the increasingly competitive market for undifferentiated credit cards. CardData also shows total Household bank credit card accounts declined about one million during the third quarter, from 16,950,000 accounts to 15,987,000 accounts. The overall, annualized managed net chargeoff ratio for the third quarter was 4.33%, compared to 4.26% in the prior quarter.  The managed net chargeoff ratio was 3.98% in the year-ago quarter.  At September 30, the managed delinquency ratio (60-plus days) was 4.96%, compared to 4.65% in the prior quarter and 4.47% a year ago. For complete 3Q/98 financials and historicals for Household visit CardData ([][1]).



VISA & Travelocity

SABRE Group’s online travel booking Website, ‘Travelocity’, and VISA signed agreements Monday to form a marketing alliance to leverage the growing online travel market. Under terms of yesterday’s agreement, ‘Travelocity’ will designate VISA as its preferred payment card, and receive prominent branding and banner advertising throughout the Website. VISA will also be the exclusive sponsor of Travelocity’s ‘Virtually There Personal Destination Guide’, a new site feature that gives online bookers a personalized overview of attractions, restaurants and weather for their travel destination. To kickoff the partnership, VISA and Travelocity have introduced VISA’s “Win Your Trip” promotion, which runs through October 31. Travelocity provides reservations capabilities for more than 420 airlines, representing 95% of all airline seats sold, more than 40,000 hotels, and more than 50 car rental companies.