POS Fraud

Star System Inc. and Card Alert Services Inc. played a major role in cracking one of the largest POS theft rings in the U.S. last week. The Los Angeles investigation has been underway for two years. The alleged members of the conspiracy obtained the ATM and credit-card numbers in two ways. First, suspects used employees at various financial institutions and merchants in the Greater Los Angeles area to fraudulently obtain ATM card numbers and the secret PINs from their customers when they made deposits, withdrawals or used their debit cards for purchases. The suspects also recruited employees to install hidden cameras by the cashier in several retail locations and hook up a computer device to the POS machines so they could capture both the PINs on video tape and the ATM account numbers on the computer device.

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Fast Latin Cards

DataCard Corporation introduced a self-service card issuance solution Monday which will allow retail banking consumers to acquire ATM, debit and stored-value cards by using simple touch-screen controls. The new self-service solution is designed specifically for the Latin American market. Key features will include simple touch-screen controls, full-color electronic message displays, highly reliable card personalization systems and rugged, yet attractive housings that can be customized to fit each bank’s branding and identity strategies. The card personalization component will offer graphics printing, magnetic stripe encoding and smart card personalization capabilities.

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PVS Canada

ProCard, Inc., announced yesterday it is offering a Canadian version of the company’s flagship commercial card management system, ProValue Services. A U.S. version of PVS is currently installed and operational in several Canadian organizations. The new release of PVS is intended to update the current version by replacing U.S. terminology with Canadian terminology and incorporating changes to accommodate governmental reporting needs specific to Canada. A Canadian tax module will be available later this year. ProCard also announced Monday that their Internet product, ‘PVS Net’, will be available in French Canadian language beginning in early April.

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DataCard to use SentriNET

DataCard Corporation Friday announced its intent to integrate SentriNET network authentication products from Mission Data Systems, Ltd. with its new line of security solutions for corporations, government agencies and other enterprises.

The announcement was made today at Novell’s Brainshare Conference, where Mission Data received the annual “Most Innovative Application Using Novell’s NDS” award. The SentriNET products use Novell Directory Services (NDS) and unique personal identifiers –such as finger and hand imaging–to authenticate users and control access to networks.

DataCard plans to incorporate the SentriNET products with its own line of identification and authentication technologies to create new security solutions that help enterprises protect physical and intellectual property.

“Our new solutions will provide corporations, government agencies and other enterprises with a security solution that bridges the gap between physical and data security,” said John Doyle, vice president of DataCard’s secure enterprise group.

“Our relationship with Mission Data provides us with an innovative and proven platform for this new line of enterprise security solutions,” Doyle said. “We’re very pleased to be working with Mission Data and we look forward to accomplishing great things with them.”

“The two companies offer perfectly complementary technologies, so it’s a natural relationship,” said John Dallaway, Mission Data’s managing director. “By combining our expertise in NDS with DataCard’s expertise in digital imaging, biometrics and smart cards, we can bring important new solutions to enterprise security–solutions the industry has needed for a long time.”

Mission Data Systems, Ltd. is a software house based in Kidderminster, England, which specializes in the development and integration of applications and software for corporate networks. Many of the company’s security solutions incorporate innovative biometrics technologies and applications.

DataCard Corporation, a privately held company based in Minneapolis, Minn., provides customers around the world with fully integrated solutions for a variety of financial, identification and healthcare applications. In addition to turnkey solutions, the company offers complete lines of transaction systems, digital photo ID systems and printers, and card personalization systems. ()

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iEC Conference to Attract 10,000

The fourth annual Internet & Electronic Commerce Conference & Exposition (iEC) will focus its 1998 event exclusively on electronic commerce solutions. Returning for its fourth year, the GartnerGroup leads iEC with its high-level conference focusing on strategies for senior-level executives and decision makers. For the first time, GartnerGroup will be joined by the National Computer Security Association (NCSA), covering security issues; Forbes magazine, focusing on electronic commerce initiatives for small businesses and entrepreneurs; and VISA presenting its EC product strategy in a day-long workshop. In addition, iEC will launch the first technical skills conference for MIS and IT managers responsible for EC implementation, produced by Advanstar, the event’s organizer.

With more than 200 exhibits and 80 conference sessions, iEC is the nation’s largest event dedicated to electronic commerce. iEC will be held at New York’s Jacob K. Javits Convention Center on April 27-29, 1998 and is expected to attract well over 10,000 technology decision makers from around the world.

“With electronic commerce growing as never before, companies are changing the focus of their marketing strategies. With all the Internet events in the market, there is a need for one that clearly addresses the question `How do I make money through this EC thing?’ iEC is totally committed to answering that question — and answering it at all levels of the enterprise,” comments Rich Westerfield, show director for Advanstar, producer of the iEC event.

“The four conference programs individually target the key functions essential to electronic commerce implementation: the corporate team that provides the site funding and strategy; the marketing executives who integrate the commerce strategy into their mix; the MIS professionals responsible for network and transaction security and for overseeing network infrastructure; and of course, the Web site developers who wrap it all together in a user-friendly interface,” added Westerfield.

Industry leaders and analysts will offer their predictions, statistics and forecasts for the world of electronic commerce through an educational platform that caters to all corporate executives involved with the decision making and implementation of EC solutions.

– A strategic conference, conducted by GartnerGroup, will target senior-level executives and their role in electronic commerce. Panel discussions and keynote speakers will offer real-world practical analysis and visionary insights on a solid array of topics to help corporate decision-makers. Tracks will include Industry Electronic Commerce Case Studies, EC Over the Internet, Interactive Marketing and Online Financial Services.

– The iEC technical conference is designed to present middle managers and technology implementors with the information they need to make informed, educated choices, when choosing software solutions, hardware, and applications. iEC’s technical conference brings accessible, timely and useful information for IT managers who are responsible for implementing electronic commerce strategy within their companies. Topics will include “Server Operating Environments – Technical Choices,” “Web Hosting: Providing E-Commerce Added Value to ISP Customers,” “Java in Internet Commerce,” “WebEnabling R/3 Applications,” and “Voice/Video Over IP Networks: Theory and Practice.” The technical conference will also offer case studies including insight from E*Trade, U.S. Office Products, Bally Gamemaker, and the Wall Street Journal Interactive.

– The National Computer Security Association (which will be known as the International Computer Security Association effective on January 1, 1998) is conducting a conference dedicated to computer security issues. This interactive conference is structured as a practical complement to both the technical and strategic conference and will address the types of due diligence and care required for corporations to ensure the proper steps are taken to protect information. Aimed at technical MIS managers and implementors, this educational program will inform corporations of the dangers that lurk in new technology and how to avoid security problems.

“We believe that a company needs to develop an Internet security strategy as one of the key elements in their electronic commerce initiative,” explained Dr. Mich Kabay, director of education for the NCSA. “The conference sessions that we will offer at iEC will outline all of the areas that executives need to be looking at when choosing security measures including applications, cryptography, site certification, vendors and product manufacturers.”

– Forbes magazine will offer the fourth program focusing on how-to sessions on the best methods of implementing electronic commerce strategy for small businesses and entrepreneurs.

– VISA will also be holding a day-long conference to present its electronic commerce product strategy. More information on this conference will be forthcoming.

All conference attendees will be invited to hear four high-profile keynote speakers, Halsey Minor, chairman and CEO of CNET: The Computer Network; Jim McCann, president of 1-800-FLOWERS, Inc.; David Boyles, vice president of Smart Cards and Interactive Services at American Express Co., Inc.; and Michael S. Dell, chairman and chief executive officer for Dell Computer Corporation, all of whom are prepared to offer their insight into how to make conducting business on the Internet more profitable.

In addition to the conference sessions, attendees to iEC will be able to see the technologies discussed in the seminars on the trade show floor with over 200 vendors including sponsors AT&T, GE Information Services, IBM, KPMG, Manugistics, Mastercard, Peat Marwick, and UUNET, which will offer all of the latest products and services in a range of exhibits, from hardware manufacturers, to software developers and business integrators that can customize real-life solutions.

GartnerGroup, Inc. is the world’s leading independent advisor to business professionals making information technology (IT) decisions. It provides research, analysis and advice on strategies for users, purchasers and vendors of IT products and services with more than 450 analysts in 75 locations worldwide. GartnerGroup provides its more than 8,300 clients organizations and over 30,000 clients around the world with timely, strategic advice on the application, management, measurement, market research and direction of IT, and training on IT. Additional information is available on the World Wide Web at

Expocon, a division of Advanstar Communications, is a major producer of both domestic and international trade and consumer expositions and conferences as well as publisher of related industry directories. Expocon events cover a variety of industries including printing, electronics, publishing, entertainment, medical/health, computer, merchandising, licensing and advertising. In addition to iEC, Expocon produces other leading IT events, including iEC B2B, On Demand, and On Demand West. For more information about iEC contact Kit Hamilton, director of marketing for Expocon, at 203/256-4700 ext. 112. Or visit our Web site at

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MBNA’s UK Card Bonds Rated

Chester Asset Receivables Dealings No. 5 Ltd.’s (CARD) 237.5 million British pound sterling class A asset-backed fixed-rate notes are rated ‘AAA’ by Fitch IBCA. In addition, the 12.75 million British pound sterling class B notes are rated ‘A+’. This is the first fixed-rate note issue from the UK Receivables Trust. The notes form part of the series UK98-1, which is the fifth securitization from the trust. The trust is composed of a pool of credit card receivables arising under MasterCard and Visa accounts owned and originated by MBNA International Bank Ltd., a wholly-owned subsidiary of MBNA America Bank, N.A. The issuer is a special purpose Cayman Islands company, whose primary purpose is to issue notes backed by its rights under the trust.

The ratings are based on the nature of the receivables, available credit enhancement, MBNA International’s underwriting and servicing capabilities and the legal structure. Credit enhancement totaling 11% is provided through 5% subordination of the class B certificates and a 6% cash collateral account.

To determine appropriate credit enhancement levels, Fitch IBCA formed very conservative projections of steady state portfolio yield, monthly payment rate and chargeoffs, and stressed them beyond worst-case levels. The fixed-rate structure resulted in total credit enhancement levels 3% less than the four previous CARDs transactions. Each class of this issue can withstand Fitch IBCA stress scenarios and still make full and timely payment to investors.

The transaction is structured with a revolving period, during which investors receive quarterly interest payments, followed by controlled accumulation. During controlled accumulation, investors still receive quarterly interest payments while principal is collected for distribution in one payment on the expected maturity date in March 2008. The series termination date is May 2010.

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UA Joins ClickRewards

United Airlines, the world’s largest air carrier, and Netcentives Inc., a leader in Internet promotion solutions, today announced that the airline’s frequent flyer program, Mileage Plus, will join the ClickRewards* Network. The partnership will offer Mileage Plus members a compelling new way to earn frequent flyer miles on the Internet.

ClickRewards is a powerful, new promotion network of leading Web sites and incentive suppliers, including airlines and hotels. Mileage Plus members will be able to earn ClickPoints, a digital currency redeemable for Mileage Plus miles, by making purchases from leading Web merchants, including 1-800-Flowers, Broderbund, CNET Direct’s BuyDirect.com Garden Escape, Inquisit, Music Boulevard, SkyMall, WebFlyer and others.

![][1] Consumers can also earn points on Yahoo! through participating ClickRewards’ sites in the Visa Shopping Guide by Yahoo! Each ClickPoint is redeemable for one Mileage Plus frequent flyer mile.

“The addition of United Mileage Plus to the ClickRewards’ network is a huge benefit for consumers,” said West Shell, president and CEO of Netcentives. “Consumers love frequent flyer miles. Now ClickRewards not only offers compelling ways to earn frequent flyer miles, but also offers the ability to redeem miles from the airlines consumers want most.”

“We have been looking for the right opportunity to expand our presence on the Web and offer unique ways for our members to earn additional miles,” said Michael V. Howe, Director of Marketing and Communications, United Airlines. “We’ve been impressed with Netcentives and the ClickRewards program. Adding ClickRewards as a new Mileage Plus partner gives our members the ability to earn miles even faster by shopping on all the Web sites in the ClickRewards Network.”

Under the terms of the agreement, Netcentives and its ClickRewards program will become the exclusive Internet points-based rewards partner in the United Airlines Mileage Plus program. Netcentives has similar exclusive relationships with six other top airlines.

For Mileage Plus members, or any other consumer interested in earning frequent flyer miles, becoming a ClickRewards member is easy. Consumers can become members by participating in any ClickRewards offer at participating merchants’ Web sites or by entering their name and e-mail address at .

For more information about ClickRewards, visit or call Netcentives at 415-538-1888.

About Netcentives, the Company

Netcentives has been on the leading edge of Internet marketing since it was founded in 1996. Based in San Francisco, California, the company specializes in providing online marketers with the effective, measurable promotional tools they need to increase revenue from Internet transactions and build customer loyalty. With its flagship product, ClickRewards(TM), Netcentives has become the first company to offer Internet merchants a proven method to drive consumer behavior. To learn more about Netcentives and the ClickRewards program, visit .

About United Airlines

As the largest air carrier in the world and the largest majority employee-owned company, United Airlines offers nearly 2,300 flights a day to 137 destinations in 29 countries and one U.S. territory. United’s Internet address is .

[1]: /graphic/clickrewards/clickrewards.gif

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ClaimCard

The ClaimCard, Inc. of Sunrise, FL announced Friday that T.J. Maxx and Marshalls have joined the ‘ClaimCard’ merchant network. ‘ClaimCard’ is a unique program designed to improve claim service after a homeowner suffers a loss covered by insurance. Insurance companies using ClaimCard technologies can coordinate a hotel room, fairly and accurately value the destroyed property, disburse claim benefits much quicker than writing a check, and eliminate the necessity for a homeowner to go out-of-pocket after the loss. The company said Friday that homeowner claims last year exceeded $20 billion with the content claims segment accounting for $5 billion of the total. The company has also recently developed the ‘ClaimCard MasterCard’.

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ECHOLink

Electronic Clearing House Inc. introduced ‘ECHOLink’ service Friday, a secure Internet-based transaction and statement presentment service that enables ECHO’s base of merchants to use the power of the Internet to not only review and download their daily credit card transactions from ECHO, but also to easily access historical information based on a date or a particular customer. The ‘ECHOLink’ program allows unlimited retrieval of detailed transaction data for a set monthly access fee that is based upon the size of the merchant transaction file.

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Financial Ed Day

Today has been dubbed “American’s Need Financial Education Day” by the Securities and Exchange Commission. The event is part of the SEC’s week-long “Facts on Saving and Investing Campaign.” American Express Financial Advisors jumped on the bandwagon this morning encouraging consumers to be realistic when it comes to savings and to “pass a personal finance budget amendment that prioritizes high interest debts, while incorporating all minimum payments”.

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DataCard Supports PAYMENT PRO

DataCard Corporation announced that its DataCard LAN and DataCard 80 series transaction terminals will support the new line of LAN-based POS solutions from First Data Merchant Services Corporation, a subsidiary of First Data Corporation.

The PAYMENT PRO solution from FDMS allows restaurant, lodging and retail merchants to authorize and settle credit card transactions accurately and efficiently.

A key selling point for PAYMENT PRO is the option to eliminate a backroom PC that functions as a server for most multi-terminal POS configurations.

“Our peer-to-peer LAN eliminates the need for a PC-based server,” said John Mamalakis, senior vice president for DataCard’s financial systems group. “This shared transaction database allows clerks, cashiers and waiters to initiate a transaction at one terminal on the network and close it out at any other terminal on the network.”

“The DataCard LAN also allows merchants to settle transaction activity for the entire network at one terminal,” Mamalakis added. “That makes settlement faster, easier and more accurate for merchants in multi-terminal environments.”

In the PAYMENT PRO configuration, the DataCard(R) 780 transaction terminal serves as a host for the entire network. This allows merchants to save money and simplify their operations by routing transactions through a single phone line.

“All authorizations are channeled through the server,” said Tom Kettell, vice president of marketing for DataCard’s financial systems group. “It’s a much faster and simpler approach.”

Another benefit of the PAYMENT PRO solution is a feature known as “host parameters.” This feature allows software changes to be sent directly from a host computer to the merchant’s terminals.

“Typically, merchants have to take their terminals off-line and send them into a central location when it’s time for software upgrades,” Kettell said. “But with PAYMENT PRO, the merchant receives many software upgrades over a phone line. It’s much less disruptive and much more cost-effective.”

The DataCard(R) 780 and 485 transaction terminals offer convenient two-line displays, easy-to-use function keys and plenty of memory.

“The PAYMENT PRO solution, together with DataCard’s expertise, allows us to provide our clients with the most advanced POS LAN solution for the mid-sized lodging, restaurant and retail markets,” said Ian Drysdale, vice president of terminal product development for FDMS.

“Our LAN also provides merchants with room for growth,” Kettell added. “They can create networks with as many as 31 terminals with our LAN product. So, it’s a good, safe investment for the future.”

First Data Merchant Services is a leading provider of one-source merchant transaction and information processing services, as well as electronic commerce and business-to-business purchasing services over the Internet. ()

DataCard Corporation, a privately held company based in Minneapolis, Minn., provides customers around the world with fully integrated solutions for a variety of financial, identification and healthcare applications. In addition to turnkey solutions, the company offers complete lines of digital photo ID systems and printers, card personalization systems and transaction systems. ()

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It’s Official

First Union signed a definitive merger agreement Friday with The Money Store Inc. to create the nation’s number one coast-to-coast provider of home equity loans. The combined company will also be the nation’s top provider of SBA loans and the number three provider of student loans. However as reported last week in CardFlash First Union is pulling in the reins on its national credit card business.

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