Smart Card 101

The Smart Card Forum, a multi-industry organization working to accelerate the widespread acceptance of smart card technology, announced yesterday that it will hold its latest course designed to introduce business leaders to the basics of smart card technology and business applications in conjunction with its 6th Annual Meeting next month at San Francisco.  The theme of this year’s event is: Accelerating the Marketplace: Competition, Collaboration and Consumer Confidence.

The Smart Card Forum Educational Institute is set for September 8th.  It is designed for newcomers to the smart card industry, who will come away from the course with the ability to:

* describe the basics of smart card technology

* explain the business case for smart cards

* understand current consumer and merchant demand and issues related to smart card applications

* describe characteristics of today’s marketplace that illustrate the importance of smart card use

* recognize and discuss issues surrounding security, fraud and privacy

Experts who are currently working in the industry will lead the course.

September 9th

This will be the first day of the annual meeting, on which the Forum will share top-line results of its comprehensive research study on consumer perceptions of smart cards and their use.  Also on tap, former VeriFone CEO Hatim Tyabji will deliver a keynote speech, offering his unique insight and analysis as a smart card industry insider.  Not to mention 30-year Hewlett Packard veteran Charles H. House, who will provide his award-winning perspective on technological innovation within a business environment.

September 10th (SmartNet ’98)

This one-day symposium on smart card use in the cyberworld aims to open new doors to the possibilities and considerations for smart card networks.  It will examine the adoption of smart cards over the Internet and offer case studies representing varying industry perspectives.

    WHERE:       Fairmont Hotel, San Francisco
    WHEN:        September 9-10th 1998
    MEDIA INFO:  Megan McDonnell: 203-325-8772, No. 14;
                 mmcdonnell@environics-usa.com

The Smart Card Forum (http://www.smartcardforum.org) is a multi-industry organization of 200 members working to accelerate the widespread acceptance of multiple application smart card technology by bringing together, in an open forum, leading users and technologists from both the public and private sectors.

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Smart Card Interoperability

The Global Chipcard Alliance announced Thursday its ‘Netuser Identifier Module’ project, a collaborative effort by the GCA member organizations to design a single application that will enable smart card terminals worldwide to identify and grant access to foreign application providers. Essentially, the NIM will enable a consumer’s smart card data to be identified at local terminals worldwide.  When a local terminal does not initially recognize a smart card from a different provider, it will ask for the NIM application. After querying the NIM, the network will contact the home application provider, which will then link the smart card’s application information back to the user.   As a result, interoperability can be realized for multiple applications, including those that may not be present in the terminal itself. Using the international telephony network as a model, the GCA will shape interoperability agreements by creating a worldwide network for smart card data transport or a smart card dialtone that allows universal access throughout the network.

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Paymentech Certifies SoftPay

VeriFone, Inc., the leading global provider of secure electronic payment solutions Wednesday announced that Paymentech, Inc. has certified VeriFone’s SoftPay credit, debit and check authorization software for use in retail and restaurant environments.

The SoftPay software allows Paymentech to quickly and cost-effectively develop custom payment applications for merchants using VeriFone’s OMNI terminals, including the OMNIPak and OMNI 470 solutions.

![][1]     The SoftPay software, together with the OMNIPak and OMNI 470 terminals, offers unique features that save merchants’ time, money and counterspace. The OMNIPak II is a bundled, modular solution that combines the OMNI 396, PrintPak 350 — the industry’s fastest thermal printer — and the SoftPay software application into a compact unit to create an integrated point-of-sale solution. For restaurant and retail customers who want to offer debit transactions as a payment option, Paymentech has selected VeriFone’s OMNI 470, the industry’s only integrated solution that combines a PINpad, terminal and printer in one comprehensive unit.

“We are pleased to add VeriFone’s OMNIPak and SoftPay solutions to Paymentech’s product line,” said Laura Rogers, group manager of product management at Paymentech. “VeriFone’s OMNIPak product with its open system architecture allows us to easily make future enhancements to effectively meet the changing needs of our industry.”

“Paymentech, a leading processor in the industry, sets the standard for application certification and can now offer SoftPay software to its bank and ISO customers,” said Greg Rhine, vice president, North American Financial Retail Systems and Software Organization for VeriFone. “SoftPay software offers a modular approach to payment application development, letting our customers provide the payment options such as debit and credit cards today, and giving them the flexibility to offer smart cards or other payment choices in the future.”

Paymentech, Inc., founded in 1985, provides full-service electronic payment solutions for direct merchant clients as well as third-party transaction processing. Paymentech also offers complete commercial card payment and information programs to businesses and other entities. Paymentech is the third largest processor of bankcard transactions and a leading issuer of commercial cards in the United States.

VeriFone, Inc. ([www.verifone.com][2]), is a wholly owned subsidiary of Hewlett-Packard Company and the leading global provider of secure electronic payment solutions for financial institutions, merchants and consumers. VeriFone has shipped more than six million payment systems used in over 100 countries.

[1]: /graphic/paymentech/paymentech.gif
[2]: http://www.verifone.com

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UTG to Target Swiss Cardholders

UTG Communications International Inc. announced Wednesday that its Swiss subsidiary, Starfon Telecom Services AG is developing a credit card based phone card and has reached an agreement with a major Swiss credit card operator.

Upon completion of the project, Starfon could provide various telecommunication services to up to 1.5 million credit card holders in Switzerland at a substantial discount to prevailing long distance and to international rates.  At a later stage, the Company intends to add value-added products such as voice mail, fax mail, speed dial, conference call calling, special and news services.

Starfon expects to be able to provide services to a limited number of credit card holders during the second half of this year.  Starfon plans to outsource the marketing of these telecom services to an independent specialised agency.  Upon completion of the development stage of this project, the Company intends to communicate detailed information in a press conference.

In order to perform these credit card based telecommunications services, Starfon is investing approximately CHF 1 million in new equipment, including new switches, in Switzerland.

UTG Communications International Inc. (UTGC) is a European switched based reseller, offering national and international long distance service to businesses and residential customers as well as selling wholesale to other carriers.

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Chinese Smart Cards

Schlumberger has been selected by the People’s Bank of China to provide training and equipment to establish the ‘Certification Center’ for China’s new smart payment card project. This nationwide program will provide debit and electronic purse payment services. The ‘Center’, which will open later this month, will be responsible for testing the cards and terminals supplied by participants in the program. In addition to Schlumberger, Gemplus, Bull and Giesecke & Devrient, VISA and several Chinese suppliers are already involved in the program, and the release of prototype cards and terminals is underway. Schlumberger said Wednesday it hopes to be the first supplier to offer commercial cards and terminals for testing, following the recent release of its ‘Qianflex’ product range.

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Marriott Contract

Chase Merchant Services, a joint venture between Chase Manhattan and First Data Merchant Services announced Wednesday an agreement to process VISA and MasterCard sales for Marriott International. Under the multi-year agreement, Chase Merchant Services will provide transaction authorization and processing services, settlement and funding services for Marriott International’s hotel brands throughout the United States. Marriott International has more than 1,700 operating units in the U.S..

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Student Advantage Card

AT&T and Student Advantage rolled-out a new product yesterday that integrates the benefits and value of the ‘CALL ATT Calling Card’ and the ‘Student Advantage Membership Card’. The new ‘AT&T Student Advantage Card’ offers discounts of 10%-50% from more than 20,000 business locations across the country, AT&T’s ‘One Rate College Plan’, a rate of 20 cents per minute on qualifying calling card calls in the U.S., and access to special discounts on the ‘Student Advantage Network’. Last year AT&T offered its college student customers free, annual membership in the ‘Student Advantage Savings Program’. The ‘AT&T Student Advantage Card’ is being introduced through a host of on- and off-campus programs at more than 400 schools nationwide.

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Siemens 16-bit Cryptocontroller

The Security and Chip Card IC business unit of Siemens Microelectronics Inc.announced Wednesday that it has begun volume shipments of the industry’s first 16-bit cryptocontroller for smart card applications.

The chip — the SLE66CX160S, which is the first device in the 66 family of controllers — enables development of a range of high-security applications for mobile communications, banking, healthcare, pay TV and access control.

“The Siemens SLE66CX160S is a cryptocontroller featuring what is currently the largest memory capacity in chip card controllers on an extremely small chip surface of less than 20 mm2,” said Joerg Borchert, vice president of SMI’s Security and Chip Card IC business unit in Santa Clara, Calif.

The device features memory capacities of up to 32 Kbytes of EEPROM, 32 Kbytes of ROM and 1.2 Kbytes of RAM, which allows multi-application-compatible operating systems to be implemented on a single chip. According to Borchert: “The chip provides a platform for the launch of genuine multi-application cards.

“Its processing power and flexibility will allow several service providers to offer their services on the same chip card.”

The new 66 family, which is based on a CPU developed specifically for chip cards, is six times faster than a standard 8051 controller. The family’s controllers have a number of greatly enhanced security features and are the only controllers on the market today to support calculation of elliptical curves.

The 66 family can process RSA algorithms with key lengths of up to 1024 bits in less than 900 ms. Memory encryption also guarantees the secrecy of data stored in EEPROM, ROM and RAM. A random number generator fully implemented in the hardware generates true random numbers thanks to its analog structure.

Other high-performance peripherals in the 66 family include a 16-bit timer, a CRC module and interrupt logic to support processing of real time applications.

The SLE66CX160S controllers feature extremely low power consumption, very high memory capacity and significantly better performance and security attributes. Siemens guarantees that every device in the 66 controller family is compatible with the previous 44 controller family, which currently plays a prominent role worldwide in virtually every relevant chip card project.

The Siemens 66CX160S is available now. The average price per 100 parts is $4.25 per chip, or $4.80 per chip on module. For more information and project pricing, call 408/492-3213, or visit SMI’s website at: [http://www.smi.siemens.com/ICs/card][1].

About Siemens

Siemens Microelectronics, Inc. (SMI), based in Cupertino, Calif., develops and manufactures semiconductors, optoelectronics and passive components for the communications, automotive and computer peripherals industries.

SMI offers one of the broadest product portfolios in the microelectronics industry, and is a market leader in communications ICs, smart power products, embedded DRAM technology and custom optoelectronics. A subsidiary of Siemens Corporation, based in New York, SMI is affiliated with Siemens AG Semiconductor Group and Passive Components Group, Munich, Germany.

[1]: http://www.smi.siemens.com/ics/card

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30/30′ Signs One-Per-Week

Financial service innovators have been signing up for First Data Direct Banking’s NetPrecision Home Banking and Card Services at a rate of more than one per week since the company’s groundbreaking “30/30” product was introduced in February, company President Randy Kahn said Wednesday.

The provider of Internet financial service solutions recently signed its 38th client since launching its NetPrecision service.

“The pace at which we’re bringing new customers online has accelerated as banks, savings and loans, credit unions and brokerages have come to recognize that their customers want home banking,” Kahn said. “We’re gratified that so many have chosen First Data Direct Banking as their single-source vendor for those services.”

In addition to building transactional Web sites for banks, First Data Direct Banking develops Internet solutions for credit card providers and brokerages.

Among First Data Direct Banking’s clients are NextCard, the First True Internet VISA, whose site was recently recognized by Online Banking Report as the best financial services Web site; Alliance Capital, which recently announced plans for its innovative e-commerce solution; and Amarillo National Bank, recently ranked as one of the nation’s top 20 Internet banking sites.

All enjoy the high-quality transaction-processing capabilities and industry-leading security offered on the NetPrecision platform.

First Data Direct Banking’s recently trademarked NetSpeed implementation system has also played a role in the company’s successes. NetSpeed streamlines and simplifies the complex tasks required to integrate secure, reliable banking transactions with a bank’s data to complete a fully transactional Web site in just 30 business days.

About First Data Direct Banking

First Data Direct Banking builds and hosts financial service World Wide Web sites for all sizes of financial institutions. Using its existing service as a template, financial institutions can have fully functional, branded Web sites up and running in just 30 business days with the NetPrecision system.

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 [www.netprecision.com][1].

Hackensack, N.J.-based First Data Corp. 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, or by check or wire money.

For more information about First Data, visit the company on the Internet at [www.firstdatacorp.com][2].

[1]: http://www.netprecision.com
[2]: http://www.firstdatacorp.com

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Reliable Software to Test Smart Cards

Reliable Software Technologies (RST), the leading software assurance technology vendor, announced yesterday that Visa International, the world’s leading card payment network and brand, has selected the firm to provide security assessment, analysis, and testing of Visa e-commerce systems based on smart cards.

Visa’s leadership in the adoption of smart card technology, which provides considerable conveniences to consumers, is evidenced by the fact that more than 22 million smart cards have been issued by Visa’s member banks worldwide. A smart card looks like a credit card in appearance, but has a microprocessor embedded into its plastic. Smart cards can be used for multiple purposes, including payment functions such as credit and debit, electronic wallets to store monetary value, security identification, loyalty applications, or storage of information such as medical records and insurance data.

“Visa is fully committed to fostering development of a secure electronic commerce marketplace,” said Dr. Ken Ayer, Visa Chip Card Security Manager. “We chose RST as one of our partners in developing smart card security technologies to help us take e-commerce to the next level. RST’s significant experience with Java and e-commerce security will be invaluable as Visa advances its Java-based Open Platform smart card architecture.”

For these projects, RST will analyze design specifications, develop threat models, and perform risk assessment of smart cards. The company will then provide security testing and assurance services for smart card products based on identified risks. Smart card security will be enhanced and assured as a result of RST’s work.

“We are pleased to have been chosen by Visa for their smart card security projects,” said Gary McGraw, Ph.D., RST vice president and co-author of the book “Java Security: Hostile Applets, Holes and Antidotes.” “Visa is playing a major role in electronic commerce. Our mutual contributions will help make it as easy and safe for merchants and consumers to conduct business in the virtual world, as it is in the physical world.”

Recently, RST’s work has focused on Java Card 2.0, one of the industry’s most advanced smart card systems. A Java Card is a smart card that is able to interpret Java byte code, similar to the way Java-enabled browsers can. Java Card is a pared-down version of Java based on a subset of the Java API, plus certain special-purpose card commands. Visa is playing a leading role in development of Java-based smart cards through its Open Platform initiative.

Visa is also actively developing standards for e-commerce such as the Secure Electronic Transaction (SET) protocol. By utilizing a combination of encryption, digital certificates and digital signatures, SET will become an integral part of the way millions of consumers transact commerce safely and securely over the Internet.

About Reliable Software Technologies

Founded in 1991, RST researches, develops and markets software assurance technologies designed to help software development organizations deliver the highest quality products. RST invents tools and techniques in testing, reliability, safety and security for the entire lifecycle of critical software applications. Learn more about RST on the Web at .

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CheckMate – Phar-Mor Deal

IVI Checkmate Corp. announced Wednesday an order from Phar-Mor for approximately $500,000 dollars worth of eN-Crypt 2100 interactive payment terminals. The units will be placed in 1,938 lanes of the 106 Phar-Mor Super Drug stores. IVI Checkmate worked in partnership with Plourde and Kyrus to provide the solutions required by Phar-Mor.

Kerry Angelo, Director of Store Operations at Phar-Mor states, “The eN- Crypt 2100 will allow Phar-Mor customers to use the convenience of their ATM debit card at our check-outs. Using the eN- Crypt 2100 positions Phar-Mor to migrate to new payment methods as our customers needs dictate.” Kerry Angelo added, “The reliability IVI Checkmate builds into their products, their immense debit experience, and ability to work with our other in-store partners, Plourde and Kyrus, were instrumental in making the decision to choose the eN-Crypt 2100.”

Greg Lewis, President & COO of IVI Checkmate’s U.S. Operations states, “Phar-Mor looked to IVI Checkmate because of our strength in debit and multi-lane retail. IVI Checkmate is the market leader in multi-lane retail with installations in over 70 of the top 100 retailers in the U.S. We also impressed Phar-Mor with our expertise in integration and knowledge of the overall payment process.”

IVI Checkmate is the first company to perfect `customer interaction at the point of transaction’. IVI Checkmate’s customer-activated terminals and software solutions increase retail checkout productivity in a cost efficient manner. With innovative payment technologies, applications, and systems integration services, IVI Checkmate offers solutions for check, credit, debit, EBT, and smart card transaction processing together with electronic advertising, electronic couponing, and loyalty programs.

International Verifact Inc. of Toronto, Canada, and Checkmate Electronics, Inc. of Roswell, Georgia, united to form IVI Checkmate Corp., the third largest electronic payment solutions provider in North America. IVI Checkmate is a full-service solutions provider in the U.S., Canada, and Latin America. IVI Checkmate serves the retail, financial, hospitality, banking healthcare and transportation industries. With offices in the U.S. and Canada as well as established strategic alliances and worldwide partnerships, IVI Checkmate is well positioned to deliver leading products and global technologies to our customers.

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Hologram Growth Solid

Holographic Dimensions, Inc. announced yesterday that demand for the company’s products continue to expand consistent with industry expectations. According to Holography News, the industry is growing at a rate in excess of 30% annually. The Company’s sales of holographic labels and hot stamping foils for the period ended June 30, 1998, have increased 57% from the previous year.

The Company continues to enter new markets and is currently represented with active sales accounts in Mexico, Columbia, Brazil, Guatemala, Ecuador, Peru, Argentina, Venezuela, Panama, Uruguay, Canada, Germany, Poland, Russia, Turkey and South Africa. The Company continues to seek quality representation in all global markets.

According to Kevin G. Brown, President & CEO, “The Eastern European and Latin American markets have provided the Company with the highest growth rates as more counterfeit products enter these markets and holography has been proven to be the best option in the prevention of counterfeiting. In order to maximize market opportunities the Company has created three new in-house sales positions and is actively expanding the scope of its international sales operations.”

In response to increased worldwide demand for security hologram labels, the Company is purchasing a new high-speed label die cutting and conversion machine. According to Erik Anderson, Operations Manager, “This new piece of machinery could not have come at a better time. Our bottleneck in production is in the die cutting conversion department. Currently our production capacity for security hologram labels is approximately 15,000,000 units per month. The new machine will increase our capacity to more than 30,000,000 converted labels per month. We can also double that capacity by adding another production shift.”

Mr. Brown continued “Notwithstanding this significant expansion of production capacity, the Company is planning to further expand the scope of its operations via strategic acquisitions and partnerships. The Company has entered into new relationships that should increase sales by as much as 25 times during 1999. To facilitate expansion and shareholder relations the Company is auditing its financial statements with the objective of becoming a fully reporting company.”

Holographic Dimensions, Inc. is a vertically integrated manufacturer of holographic imagery. The Company’s products are incorporated into a variety of security products including, but not limited to, credit cards, negotiable documents, event tickets, transit passes, and consumer products for marketing. The Company’s customers include Merck, Lilly, NASA, The Coca Cola Company, Hoescht, and Ameritech amongst many others.

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