VISA – BART Donation

This week Visa U.S.A. announced that it is donating $25,000 to Project 180, an organization committed to empowering and turning around the lives of the homeless.

The program includes shelter, job training, rehabilitative services and permanent supportive housing, through a promotion to raise awareness of the Bay Area Rapid Transit District’s (BART) acceptance of Visa cards to purchase BART and BART Plus tickets.

From July 1 through September 30, every time a BART or BART Plus ticket is purchased from one of BART’s special Charge-A-Ticket (CAT) machines, Visa U.S.A. will make a donation to Project 180. Through this promotion Visa is guaranteeing a minimum donation of $25,000 to Project 180.

“This promotion is the perfect opportunity to raise BART patron’s awareness that they can now use their Visa cards to purchase their BART and BART Plus tickets, while also supporting Project 180, and organization that helps homeless people help themselves,” said Walt Conway, vice president, market development and acceptance.

Each year Project 180 helps more than 7,000 homeless people turn their lives around. For many living on the streets, the change begins with the very basics: a safe place to sleep at Project 180’s two San Francisco shelters, a hot shower, a change of clothes and two hot meals a day. The real difference is made when a shelter client works one-on-one with his or her case manager to address the core reasons that led to a life on the streets.

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’s nearly 600 million cards are accepted at more than 14 million worldwide locations, including over 355,000 ATMs in the Visa Global ATM Network. Visa’s Internet address is [www.visa.com.][1]

Through shelter, job training, adult education, rehabilitative services, counseling and permanent supportive housing, Project 180 helps homeless people move from living on the streets to getting back on their feet. To find out how to make a contribution of time or money to Project 180, call 415/863-3893.

[1]: http://www.visa.com

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Postbank – CORONA ATM Monitoring

Management Data today announced that Postbank NV – part of the Dutch financial group ING – is implementing MD’s CORONA reconciliation solution at its head office in the Netherlands. CORONA will be used to reconcile the exchange of documents, as well as for cash management and for monitoring cash receipts to the automated teller machine (ATM) network. The system is scheduled to go live on September 15, 1997.

Over three million transactions are processed by Postbank on a daily basis. Two thirds of these are carried out electronically, partly through the national network of 2,200 post offices and 1,200 ATMs. The rest are made up of hand- written payment orders.

The Postbank ATM machines are supplied with cash from two sources: the Dutch National Bank and the post office tills. CORONA will enable Postbank to accurately monitor the receipt of cash from both suppliers by marking each payment with a technical ATM number. This number, together with the value date and amount will then be used to reconcile the amounts received from each supplier.

By automating the reconciliation process for bank to ATM transactions, Postbank will be able to reduce labour costs and to eliminate the transportation and archiving costs involved in processing hand-written reconciliation forms. CORONA will also greatly reduce the risk of human error – a risk, which up to now was a very tangible one given the fact that some 65,000 forms, recording each ATM receipt, had to be processed by the bank each year. All forms underwent three checks, with some checks inevitably resulting in reading or writing errors. CORONA will eliminate the need for such forms since the data is input automatically.

Commenting on the decision to implement CORONA, Jan Joore, Manager at Postbank – who was responsible for implementing CORONA within another division of the ING Group a few years ago – says: “While CORONA is normally used for the reconciliation of bank to bank transactions, we felt it would also make sense to implement CORONA for reconciling bank to ATM transactions. The potential to make huge cost savings encouraged us to look into this option in detail. The project is proving worthwhile. We expect to recoup our investment in CORONA within a month of the system going live.”

At Postbank, CORONA MVS is being implemented on an IBM mainframe, although Joore says that the bank will be looking at a client/server version of CORONA in the near future.

“This is the first time CORONA is being used to reconcile bank to ATM transactions,” explains Susanne Bachmann, Business Line Manager for Reconciliation Solutions at Management Data. “The success of this joint project between MD and Postbank clearly shows the versatility of the CORONA solution.”

Background

Management Data (MD) ranks among the leading international suppliers of banking solutions and also offers consulting and software project services for financial institutions. Founded in 1971 as a subsidiary of Creditanstalt, MD is today affiliated with the largest Austrian banking group, the Bank Austria/Creditanstalt group.

With a customer base of about 700 installations in over 70 countries worldwide, MD’s banking software solutions are well-established in the global banking community. Its products include CORONA, the world’s most widely used computerised account reconciliation system, COMFORT for the automated matching of bank and broker deal confirmations and ARES for the automated reconciliation of securities messages.

Today the company has subsidiaries in place in the UK, Germany, France, Switzerland, Benelux, Hungary, Poland, the Czech Republic, Singapore, China, and most recently Spain. It also has a significant distributor network throughout the world.

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Fleet Card Provider Expands

Ceridian Corporation (NYSE: CEN) announced today that it has completed the acquisition of International Automated Energy Systems, Inc. (IAES), a Naples, Fla., fleet management company providing services that enable businesses to pay for fuel for their commercial vehicles, and control and manage their ongoing fleet expenses. In February 1996, Ceridian purchased a 19.9 percent interest in IAES; now it owns 100 percent of the fleet management company. Terms were not disclosed.

IAES had been a member of the Barron Collier Companies, a family owned organization with interests in real estate and development, agriculture, and oil and gas exploration. Through an alliance with VISA, IAES provides the only fleet card operating in the market that has the national brand recognition and universal acceptance of a major purchasing card. Its revenue in 1996 totaled approximately $1.9 million.

Ceridian’s Comdata subsidiary is a leading provider of fueling services for the long-haul trucking market and its Comchek(R) card is the primary fuel card used at the 8,000 truck stops where most fuel for over-the-road trucking is sold. IAES’s VISA(R) Fleet card is a complementary product that enables light and medium-duty fleets that are primarily operating in local markets to provide authorized drivers with the convenience of obtaining fuel at over 190,000 convenience stores and service stations where retail VISA cards are accepted.

Like the Comchek card, the VISA Fleet card captures transaction data, including vehicle odometer readings and the driver’s Personal Identification Number (PIN), as well as the merchant name, location and transaction amount. The information is provided to the customer in a detailed monthly report, and controls may be placed on individual cards within each account to restrict transactions according to the wishes of each fleet customer.

“The local fueling market is a strategic and important extension of Comdata’s business,” said Tony Holcombe, president and chief executive officer of Comdata. “IAES’s VISA Fleet card is an excellent point of entry into a market which, measured in terms of fueling transactions, exceeds Comdata’s traditional long-haul base. IAES’s local fuel management product is the only active product in the market that has the combined benefits of broad merchant acceptance, cashier recognition and the ability to capitalize on a general purpose business card while fulfilling the control and data-gathering requirements for fuel purchases.”

“This is a very exciting time for IAES, since we feel that Comdata’s strong market position in the long-haul segment is the perfect complement to IAES’s focus on the local fueling market,” said C.J. Hueston, president of IAES. “Our goal has always been to focus on a single-source solution for the fleet market. To be the best provider, an organization must address all market needs, not develop one at the expense of the other. We believe our current and future customers will benefit from the addition of new products and services that this exciting relationship will bring,” she said.

Comdata [(http://www.comdata.com)][1] provides funds transfer, fuel purchase, cash advance, and permit services, as well as fuel optimization and routing software, for the trucking industry; point-of-sale and data collection services for the truck stop industry; cash advance, cash access, and database marketing services for the gaming industry; and long-distance telecommunications services for the transportation and gaming industries.

Comdata is part of Ceridian Corporation [(http://www.ceridian.com)][2], a leading information services and defense electronics company that serves the human resources, electronic media, transportation, gaming and government markets. Its information services segment includes Comdata; a group of human resources businesses, including Ceridian Employer Services, a leading payroll processor; and several marketing information businesses, including the Arbitron Company. Its defense business is Computing Devices International.

IAES Fact Sheet

Description IAES is a fleet management company that provides a
fleet management system to the local fueling market
for fuel and other vehicle-related purchases and
services.

IAES administers this system through two products:
the VISA(R) Fleet card — an alliance with VISA — and
the proprietary IAES card. IAES has an established
distribution network of over 190,000 convenience
stores and service stations.

Customers IAES serves more than 4,000 local fleets across North
America, including corporate, commercial,
government and utility trucks and cars.

IAES has processing agreements with major oil
companies, including Amoco, Exxon, Shell, BP, Citgo,
and Marathon.

Revenue Approximately $1.9 million in 1996.

Employees
and Locations 48 employees work at the company’s headquarters
in Naples, Fla., and at a second location in Orlando.

Year of Origin IAES was founded in 1979.

Ceridian’s Businesses

Ceridian Corporation is an information services and defense electronics company that helps customers improve their productivity and competitive position.

Information Services for the Transportation and Gaming Industries

Comdata provides funds transfer, fuel purchase, cash advance and permit services, as well as fleet optimization and routing software, for the transportation industry, and funds transfer and other services for the gaming industry.

Information Services for the Human Resources Market

Ceridian Employer Services provides human resources management systems, outsourced payroll and tax filing services, self-service workflow solutions, and in-house payroll and benefits software.

Centre-file provides payroll and human resources products and services to customers in the UK.

MiniData provides payroll and related services to small businesses in the U.S.

Resumix provides advanced human skills management software and services that enable customers to electronically process resumes, build employee and applicant databases, and identify qualified candidates for hire, promotion and reassignment.

FLX Corporation is a leading developer of high-performance software for human resources, recruiting and benefits management.

Usertech helps companies implement new business systems by providing comprehensive user support programs; it also provides expert systems that enable employers to address employee and retiree questions about benefits, payroll, and human resources policies and programs.

Ceridian Performance Partners provides a broad array of work-life, employee assistance, wellness, training, and management services.

EAS Technologies provides advanced time, attendance and workforce management solutions.

Washington Consulting Services & Technologies is a provider of human resources software applications, consulting and seminar services, primarily to the government market.

Information Services for the Electronic Media Industry

Arbitron is a media information firm that provides ratings and other services to broadcasters, cable systems, advertisers and agencies.

Defense Electronics

Computing Devices International provides mission-critical electronics, software, systems integration and information management for defense, government agencies and commercial customers in selected markets.

[1]: http://www.comdata.com
[2]: http://www.ceridian.com

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Bankruptcy Pain

Card issuers continue to be dogged by personal bankruptcies as the percentage of gross chargeoffs, according to the latest issue of Bankcard Barometer. This year, a record number, between 1.2 and 1.3 million personal bankruptcies, are expected to be filed. Bankruptcy reform has been a hot issue as Congress is expected to act on various proposals in October. This morning the Bankruptcy Issues Council is holding a special news conference at the National Press Bldg in Washington.

BANKRUPTCY (% Gross Charge-Offs)
Aug 96: 36.9% Dec 96: 41.1% Apr 97: 41.1%
Sep 96: 38.8% Jan 97: 40.9% May 97: 42.4%
Oct 96: 39.7% Feb 97: 40.9% Jun 97: 41.7%
Nov 96: 40.3% Mar 97: 40.8% Jul 97: 41.9%
Source: CardData and Bankcard Barometer

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Cap One For Sale?

Rumors that Capital One is being pursued gained strength Thursday on Wall Street as its stock price jumped 3 3/4 to close at 40 1/8 on trading volume of more than two million shares. Cap One’s stock price has been on a roller coaster this week after soaring Tuesday, diving Wednesday and climbing again yesterday. NationsBank, First Union, Mellon and Chase have been cited as possible suitors with NationsBank surfacing as the most likely candidate. Informed sources in Richmond, VA confirmed Thursday that a due diligence effort is underway. At mid-year Cap One held $12.3 billion in receivables, 9.3 million accounts and year-to-date volume of $6 billion according to CardData. Last week Cap One announced it signed up its ten millionth cardholder.

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Chase Buys Bell Atlantic VISA

A new Bell Atlantic credit card will be issued next year as a result of the agreement announced Thursday between Bell Atlantic and Chase Manhattan Bank. The announcement follows last week’s merger between Bell Atlantic and NYNEX. Chase, which already issues the NYNEX credit card, purchased the Bell Atlantic Visa portfolio from First Omni Bank. Chase will combine the two portfolios and issue a credit card bearing the new Bell Atlantic logo. The Bell Atlantic Visa was introduced in October 1995 and has grown to more than 500,000 customers and $355 million in receivables. R. K. Hammer served as transaction advisor to First Omni.

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People’s TJX VISA

People’s Bank kicked-off a back-to-school promotion for its ‘TJX’ VISA card yesterday. Each time consumers use the TJX VISA Card at off-price retailers, T.J. Maxx or Marshalls, they will receive a reward equal to five percent of their purchases. The no-fee card carries a 6.9% six month intro rate and a 15.9% fixed long-term rate. T. J. Maxx currently operates more than 575 stores in 47 states. Marshalls has more than 450 stores spanning 37 states and Puerto Rico

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Soloist Poised for Growth

That’s right, the Soloist is a technological breakthrough that allows merchants to accept your Credit Card anywhere, even in a tree. This Credit Card Terminal is the first handheld, battery powered terminal available today. The Soloist verifies the customers Credit Card using CDPD (Cellular Digital Packet Data) the latest digital cellular provided by companies like Ameritech, Bell Atlantic, AT&T, and GTE Mobile.

The Soloist can perform a wireless transaction in as little as 3 seconds and it does it at a lower cost than traditional dial-up terminals. “We’re excited to be able to offer our point-of-sale customers a handheld unit for their wireless data credit card transactions,” said Bob Hunsberger, staff director of wireless data applications for Bell Atlantic.

This breakthrough technology will allow pizza delivery, taxis, bus services, cruise ships, home delivery companies and limousines the chance to accept credit cards and verify checks. “You can even accept credit cards right at the table in a restaurant,” said Charles Busch III, VP of Symphony Inc. You might not need to accept credit cards in a tree — but if you wanted to — now you can.

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Proffitt’s Restructured Card Bond

Department store retailer Proffitt’s, Inc. (NYSE: PFT) today announced the completion of a restructuring of its private label credit card accounts receivable securitization.

Under the restructured arrangement, the recently formed Proffitt’s Credit Card Master Trust issued a total of $200 million in Series 1997-2 five-year asset backed securities supported by credit card receivables originated at the Company’s Proffitt’s, McRae’s, Herberger’s, and Parisian Divisions. The securities were issued in two classes: $180 million in AAA/Aaa rated Class A Certificates priced at 99.587% with a coupon of 6.50% and $20 million in A/A1 rated Class B Certificates priced at 99.642% with a coupon of 6.69%. The Class A Certificates were underwritten by NationsBanc Capital Markets, Inc., BancAmerica Securities, Inc., and J.P. Morgan & Co. The Class B Certificates were underwritten by NationsBanc Capital Markets, Inc. Proceeds of the Series 1997-2 Certificates were used to repay outstanding borrowings and to terminate the Company’s previous securitization arrangement with an asset-backed commercial paper conduit.

Concurrent with the issuance of the Series 1997-2 Certificates, Proffitt’s Credit Card Master Trust issued $125 million in Series 1997-1 Variable Funding Certificates. The Variable Funding Certificates will provide the Master Trust with borrowing capacity based on commercial paper rates for seasonal and expansion-related growth in the underlying receivables portfolio. Co-purchasers of the Variable Funding Certificate were Enterprise Funding Corporation and Receivables Capital Corporation.

Proffitt’s, Inc. Executive Vice President and Chief Financial Officer, Douglas E. Coltharp, commented, “We are extremely pleased by the attractive terms which we were able to realize in the securitization market. The favorable advance rates and interest rates are both indicative of the quality in the underlying receivables portfolio. The restructuring of the accounts receivable facility, together with our recently completed issuance of Senior Notes and the increase and amendment of our Revolving Credit Facility, completes the implementation of a comprehensive capital structure strategy. This strategy, which was initiated in the spring of this year, was intended to provide Proffitt’s with greater operating flexibility by reducing the level of secured indebtedness, increasing the percentage of fixed vs. floating rate obligations, and lengthening the duration of our financing commitments.”

Proffitt’s, Inc. operates 176 stores in twenty-four states under the names of Proffitt’s, McRae’s, Younkers, Parisian, and Herberger’s. The Company’s annual revenues exceed $2.3 billion.

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