Life Insurance Secured Card

Default Proof Credit Card System Inc. (OTC BB:DPRS) will be looking forward to the market interest of the ATM’s manufacturers as well as the financial institutions in the banking industry for this revolutionary patent pending utility that will significantly reduce, if not totally eliminate the debit/credit cards issuing institutions’ delinquencies, charge-offs and paperwork. Regardless of the interest free feature, this debit/credit card will be very profitable to the issuing financial institutions.

The company has a patented RESOURCE(r) SYSTEM which is a default proof system providing individuals with a convenient method of obtaining lower cost, immediate access to instant credit — which is collateralized by the equity in cash values of their life insurance policies.

The consumer benefits, besides not paying interest charges, will be immeasurable.


VISA’s 007 Strategy

Secret Agent 007 speeds through a series of security clearances, but is denied his caviar when he attempts to pay by check. As the most recent star in Visa’s check card commercial series, James Bond finally meets his match at the Secret Service snack bar stand where he is asked for ID. Created by BBDO New York, the 60-second spot breaks nationally tonight during Monday Night Football on ABC-TV.

The James Bond spot follows the familiar Visa check card theme that depicts a celebrity having difficulty paying by check. “Despite having his ID confirmed through hi-tech voice, hand and eye scanners, James Bond faces a greater challenge when he attempts to pay by check without identification,” said Liz Silver, vice president, advertising, Visa U.S.A. “Unfortunately not everyone has a ‘Q’ to handle the details.”

“The humorous role celebrities play in this series reinforces our strategy to illustrate the ease of using a Visa check card,” said Silver. Other celebrities who have starred in the series include Shirley MacLaine, Bob Dole and Deion Sanders.

“We are really thrilled about our promotional alliance with Visa and particularly with the quality and style of the actual commercial. Humor is an important part of the James Bond phenomenon and this campaign really captures the attitude and sets up the new movie well,” said Karen Sortito, executive vice president of worldwide promotions and corporate sponsorships, MGM.

Taking a page from its sports and events portfolio, Visa is using an integrated marketing approach to promote its alliance with the new James Bond film, Tomorrow Never Dies. Beginning in December, Visa will introduce a print advertisement campaign geared toward Generation X that will run in publications including Rolling Stone, Entertainment Weekly and Cosmopolitan. The print advertisement will showcase the items found in James Bond’s wallet, including his passport and license to kill.

In addition to its advertising efforts, Visa is partnering with a number of member banks to run the “007 Sweepstakes” during the month of December. – The sweepstakes will award a trip for two to the premiere of Tomorrow Never Dies in Los Angeles next month. Furthermore, cardholders who make purchases with their Visa check card seven more times in December than they did in November will be awarded a Sam Goody/Music Land gift certificate for the newly released James Bond movie Golden Eye, or any other MGM/UA movie of their choice. This partnership marks the first major movie studio tie-in program for the payment system industry leader.

The 18th installment of the longest running film franchise in history, Tomorrow Never Dies stars Pierce Brosnan in his second outing as the legendary Agent 007. Jonathan Pryce stars as a dangerously powerful media mogul, with Teri Hatcher as his wife who has a secret past with James Bond, and Michelle Yeoh starring as a Chinese Agent who becomes a formidable ally to 007. The cast also features returning Bond veterans Desmond Llewelyn as ‘Q,’ Dame Judi Dench as ‘M’ and Samantha Bond as Miss Moneypenny. The movie releases December 19.

Since the check card’s introduction in 1979, the number of Visa check cardholders has soared from 917,000 to 50.4 million today. Visa projects that consumers will make a record 1.8 billion transactions with the Visa check card in 1997. By 2001, Visa estimates that debit cards will account for 10 percent, or 5.5 billion, of all consumer transactions in the United States.

As consumers’ acceptance of the Visa check card has soared, so has the number of issuers. More than 4,500 financial institutions now issue the Visa check card.

In an effort to provide consumers with the safest-possible payment products, Visa U.S.A. recently announced groundbreaking new cardholder protections, including a zero liability policy for Visa cardholders who report loss, theft or unauthorized use of their cards within two business days of discovery, and a maximum consumer liability cap of $50.

Visa is the preferred payment brand and the largest consumer payment system worldwide. It plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions, their cardholders, and the global economy. Visa is the only consumer payment system to facilitate $1 trillion worth of purchases of goods and services in a fiscal year. Visa’s nearly 600 million cards are accepted at more than 14 million worldwide locations, including 380,000 ATMs in the Visa/PLUS Global ATM Network. Visa’s Internet address is


Citibank’s Endorses T&E Software

Portable Software Corporation, the worldwide leader in travel and entertainment (T&E) expense management and makers of the Xpense Management Solution(TM) (XMS) — the leading client/server travel expense management software — today announced that it has been selected by Citibank Commercial Cards as a recommended provider of T&E expense management software to Citibank’s corporate card customers around the world. The combined services work to bring corporate customers the ability to reduce T&E costs, which typically represent a company’s third largest controllable cost.

Portable Software’s Xpense Management Solution is the first choice of Fortune 1000 and multinational companies for travel expense automation. XMS(TM) is an integrated enterprise-wide solution that dramatically reduces travel and entertainment costs by automating the entire expense management process — from expense report preparation, approval, and processing through systems integration and data analysis. With XMS, preparing expense reports is easier and business travelers are reimbursed faster. Accounting is more productive because expense reports are delivered on-line and automatically link to financial systems. With robust expense data easily accessible, management can analyze T&E spending and negotiate better vendor rates. Moreover, XMS seamlessly integrates with existing and future corporate charge cards and financial, travel, and operating systems.

Citibank, the leading provider of consumer credit cards worldwide, is also a top issuer of commercial cards to the corporate marketplace. Citibank Commercial Cards enables its customers to increase productivity while maximizing payment reengineering benefits. Citibank’s partnership approach with its clients provides unparalleled support from program implementation to full company-wide roll out and ensures corporate objectives are achieved. With this team approach, clients can also benefit from Citibank’s expertise in bankcards, cash management, technology and global service delivery.

“Citibank Commercial Cards works hard to offer our customers complementary tools to increase their corporate payment productivity,” explained Marlene Lieberman, a vice president with Citibank’s Commercial Card Services division. “We found XMS to be the most effective expense management solution in the market and believe that Portable Software provides the best match for further enabling our corporate customers to maximize payment reengineering benefits.”

“Both Portable Software and Citibank are committed to servicing customers with leading business solutions,” said Fred Ingham, Portable Software’s vice president of business development. “We are pleased that this leading corporate card issuer has chosen to extend its offerings with the leading T&E expense management solution.”

Citibank Commercial Cards has headquarters in New York and offices across the United States. With Citibank’s global reach, its commercial cards’ clients have worldwide options for corporate card issuance with detailed reporting.

Since 1993 Portable Software Corporation has been developing and marketing travel and entertainment automation software and services that serve the entire enterprise, from business travelers to corporate accounting departments. Its flagship product, the Xpense Management Solution (XMS), has been chosen by more Fortune 1000 and multinational companies for enterprise-wide T&E expense automation than any other travel expense solution. As the recognized worldwide leader in T&E expense automation, Portable Software has already automated travel expense management processes in over 250 companies around the world. Portable Software Corporation is headquartered in Redmond, WA, USA with offices in Boston, Hartford, New York, Newark, Philadelphia, Washington DC, Atlanta, Toronto, Detroit, Chicago, New Orleans, Minneapolis, Dallas, Los Angeles, San Francisco, Seattle, and London. For more information on Portable Software Corporation, contact the company at 14715 N.E. 95th Street, Redmond, WA 98052. Or call: 425/702-8808; or the toll-free number: 800/478-7411; or fax: 425/702-8828; or reach Portable Software Corporation via the World Wide Web at [][1] . Portable Software UK Limited, the European headquarters for Portable Software, can be reached by phoning: 44-171-329-2981.

Xpense Management Solution, XMS, and QuickXpense Enterprise are trademarks of Portable Software Corporation. All other company or product names are trademarks and/or registered trademarks of their respective owners.



Holiday Stress

A survey conducted for Intuit/Quicken by Roper Starch says three out of four Americans will experience financial stress this year paying holiday bills. The study projects Americans will spend $816 this year per adult or about $160 billion on holiday gifts, an increase of 7% over 1996. Intuit advises consumers to reduce stress by lowering their credit card interest rate via


New Debit Card Brochure

The National Consumers League has released a new consumer education brochure, “Debit Cards: Beyond Cash & Credit.” The brochure explains the pros and cons of debit cards.

“By the year 2000, it is expected that two-thirds of American households will have a debit card,” said NCL President Linda F. Golodner. “Educating consumers about how these cards work and how they are different from both automated teller machine (ATM) and credit cards is extremely important to avoid confusion.”

The brochure examines the differences between a debit card and a credit card; outlines what you should know about debit cards; includes seven tips for responsible use as well as common sense precautions. The brochure also includes the most up-to-date information on card protection in case of loss, theft or unauthorized use.

“Debit cards offer the consumer many conveniences. Nevertheless, consumers should remember that debit cards access money directly from their checking account,” according to Golodner. “Our brochure continues the League’s commitment to educating consumers about new trends in money management.”

Single copies are available free of cost by contacting the National Consumers League at 800-355-9NCL. Bulk copies are available at reduced rates by contacting Theresa Smith, publications coordinator, 202-835-3323.

The brochure was created by the National Consumers League with a grant from Visa U.S.A.

“Visa and its member banks are committed to consumer education, and to providing consumers with the most secure, convenient and accepted payment products in the marketplace. We are delighted to work with the National Consumers League to further educate consumers,” said Michael Beindorff, executive vice president, Marketing and Product Management, Visa U.S.A.

The National Consumers League, founded in 1899, is America’s pioneer consumer organization, NCL’s three-pronged approach of research, education and advocacy has made it an effective representative and source of information for consumers and workers. NCL is a private, nonprofit membership organization dedicated to representing consumers on issues of concerns.


VeriSmart & Visa

VeriFone, Inc., the leading global provider of secure electronic payment technology, today announced that the VeriSmart System, its flexible consumer smart card solution, will be included in the Visa International Partner Program for loading stored value cards from home.

“Visa International is working closely with VeriFone and we are delighted to add yet another option to our comprehensive smart card initiatives,” said Bernard Morvant, vice president, stored value products Visa International.

The VeriSmart System is a scaleable client/server technology that enables financial institutions, telecommunications companies and other service providers to implement a complete multi-application consumer smart card solution seamlessly, from processor to consumer. Once a consumer appliance connects to the server, the appliance automatically accesses the latest smart card applications, providing the flexibility for integrating future smart card capabilities into the existing architecture.

“The powerful combination of Visa’s smart card leadership, and VeriFone’s flexible VeriSmart System, will provide Visa member financial institutions with an innovative solution for next generation chip card applications,” said Thomas J. Kilcoyne, vice president and general manager, consumer systems division at VeriFone. “The VeriSmart System, with its open architecture, allows member banks to interface with a variety of consumer appliances and applications in order to quickly respond to changing service demands, evolving technologies and new market opportunities.”

The VeriSmart System allows consumers to load digital cash and other information to their cards from the privacy and security of their homes. The VeriSmart System is part of the smart card program in the Upper West Side of Manhattan, New York, where Visa USA, Citibank, Chase Manhattan Bank and MasterCard International, Inc., have joined forces to bring smart cards to consumers. Citibank is using the VeriSmart System in that program, providing VeriFone’s Personal ATM appliances to thousands of consumers for reloading Visa Cash onto smart cards in their home.

Company Backgrounds

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

Visa International, (), “the world’s best way to pay,” is the preferred payment brand and the largest consumer payment system worldwide. It plays a pivotal role in advancing new payment products and technologies to its 21,000 member financial institutions, their cardholders and the global economy. As the leader in emerging products, Visa has 70 chip programs underway worldwide with 21 million chip cards issued, including more than 7 million Visa Cash cards.

It is pioneering SET Secure Electronic Transaction programs in more than 25 countries for secure Internet commerce. Visa’s 600 million cards, generating over US$1 trillion in annual volume, are accepted at more than 14 million worldwide locations, including Visa’s nearly 370,000 ATMs in the Visa Global ATM Network.

The Visa Partner Program is designed to help its member financial institutions migrate to chip-based technologies and to take full advantage of opportunities in electronic commerce. It is pioneering SET Secure Electronic Transaction(TM) programs in more than 25 countries for secure Internet commerce.


NJ Hospital Private Label Card

The New Jersey Hospital Association and Health Charge of Skokie, Ill., announced the execution of an agreement to provide the Health Charge private label credit card program to hospitals and other healthcare providers. The private label credit card systems reduce costs through improved receivables management.

“We are pleased to offer this program to our members because it is a proven method of improving hospital cash flow,” said William D. Kennedy, vice president of the New Jersey Hospital Association’s Corporate Services. “This program will help healthcare providers better manage their business office and provides valuable assistance to patients with substantial medical bills.”

“Health Charge is delighted to have the opportunity to work with the New Jersey Hospital Association,” said Christopher Gillock, chief executive officer of the Health Charge Corporation. “Health Charge Corporation provides an easy-to-manage credit program at competitive rates to patients seeking to finance their deductibles, co- payments and uninsured medical expenses. Our program will help healthcare providers improve collections, consistent with favorable patient relations.”

The New Jersey Hospital Association, based in Princeton, is a trade group committed to helping its 115 member hospitals provide accessible, affordable and quality healthcare in their communities through advocacy, education, research and policy development. Health Charge Corporation, founded in 1979, is affiliated with HealthCare Financial Partners, Inc. The company provides private label credit card programs, consulting services and information systems to hospitals and other healthcare providers nationwide.


Blue Box Sweepstakes

Starting this Saturday all U.S. American Express cardholders will automatically be entered into a holiday sweepstakes offering nine grand prizes and 4,000 first prizes. ‘The American Express Blue Box Sweepstakes’ runs through Dec 31 and offers AmEx cardholders the chance to win several one-of-a-kind experiences including golf lessons from Tiger Woods’ father, a power lunch with CNBC anchors, a trip to a couture fashion show and tickets to all NBA finals. AmEx will also award other grand prizes including five million ‘Membership Rewards’ points and $50,000 in credit on an AmEx ‘Platinum Card’.


Euronet Up 49%

Euronet Services Inc., operator of the only independent automatic teller machine (ATM) network in Central Europe, announced today that it recorded third quarter revenues of $1,577,000. This compares with revenues of $378,000 for the third quarter of 1996 and $1,061,000 for the second quarter of 1997. Revenues for the third quarter increased 49% over the second quarter.

Consistent with its business plan, Euronet reported that its net loss for the third quarter was $1,521,000, or $0.09 per share. Euronet’s loss was $907,000, or $0.07 per share, for the third quarter of 1996. The increased loss results from expenses associated with the continued aggressive expansion of operations in existing and new markets.

Euronet also announced that cash withdrawal and other transactions by cardholders over its ATM network in Hungary, Poland and Germany reached 560,106 in September and 647,675 in October. These figures compare with 548,350 transactions in August. The transaction figures reported for September and October include, for the first time, a significant level of transactions acquired under Euronet’s outsourcing contract with Budapest Bank. Euronet is now “driving” 45 Budapest Bank ATMs under that contract, which includes a fixed monthly fee per ATMs and a correspondingly lower transaction fee than the Company’s other contracts with banks .

The number of ATMs in Euronet’s independent network (exclusive of Budapest Bank ATMs) has increased to 503 at September 30, 1997 and 534 at October 31, 1997, up from 375 as at of June 30, 1997 and 405 at July 31, 1997.Euronet’s last public report of network size on June, 30 1997

Established in 1994, Euronet operates the only independent, non- bank owned ATM network in Central Europe. Through agreements and relationships with local banks, international card issuers and ATM networks such as American Express, VISA, Plus, MasterCard, Europay and Cirrus, Euronet’s ATMs are able to process ATM transactions for holders of credit and debit cards issued by or bearing the logos of such banks and card issuing organizations. In addition, Euronet offers outsourced ATM management services to local banks that own proprietary ATMs.

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act and is subject to the safe harbor created by those sections. Euronet assumes no obligation to update the information contained in this press release. Euronet’s operating results can be adversely affected by a number of factors, including (i) the management of growth, (ii) changes in laws and regulations affecting Euronet’s business in the countries in which it operates, (iii) cancellation or re-negotiation of contracts on which the company is dependent, (iv) competition, and (v) the level of card growth in emerging markets, any of which could cause actual results to vary materially from current results or Euronet’s anticipated future results. Additional explanation of these risks, and other risks, are set forth from time to time in Euronet’s periodic reports filed with the U.S. Securities and Exchange Commission, including, but not limited to, Euronet’s registration Statement on Form S-1 and the prospectus dated March 6, 1997.

(In thousands, except per share data)

Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996

Revenue 1,577 378 3,433 638

Operating expenses
ATM operating costs (1,393) (410) (3,046) (941)
Other operating costs (2,010) (840) (5,034) (2,365)

Operating loss (1,826) (872) (4,647) (2,668)

Other income (expenses) 305 (29) 555 (106)

Loss before income taxes (1,521) (901) (4,092) (2,774)

Deferred income tax benefit – (6) 129 219

Net loss (1,521) (907) (3,963) (2,555)

Loss per common and common
equivalent shares
outstanding primary (0.09) (0.07) (0.24) (0.18)

Average common and common
equivalent shares
outstanding primary 17,222,997 13,838,078 16,626,719 13,838,078


Mondex Hong Kong

The largest full scale launch of Mondex took place this week in Hong Kong. HongkongBank and Hang Seng Bank Limited announced that all customers are now eligible for Mondex cards. Over 5,000 Hong Kong merchants have agreed to accept the card. The initial launch of the card was limited to two retail sites in Hong Kong nevertheless more than 40,000 cards were issued. Meanwhile Mondex says its Guelph, Ontario program has grown to more than 10,000 cardholders.


Losing Altitude

A least two major car rental firms are reconsidering dropping out of frequent flyer mileage award programs in the wake of the recently adopted 7.5% tax now levied on air miles purchased from airlines. Reed Travel Group’s ‘Travel Weekly’ reported this week that Hertz and Avis were already re-evaluating their participation in the programs before passage of the new tax. Hertz says it no longer makes sense to spend more than $100 million per year for bonus miles when the firm already provides substantial discounts to corporate customers. Avis also questioned the effectiveness of such programs due to the saturation of bonus miles programs awarded from all types of firms. ‘Travel Weekly’ suggests hotel chains, long- distance phone companies and credit card issuers are likewise reconsidering such programs.