Announcements

NACHA Adds New Member
Cherry Hill, N.J.-based Commerce Bank, with more than $14 billion in assets and 200 branches, has joined NACHA, raising the association's membership to 35 - 21 payments associations and 14 financial institutions, including American Express Centurion Bank, Bank of America, Bank One, BB&T Corporation, Capital One, Citibank, FleetBoston Financial, J.P. Morgan Chase, Mellon, National City, U.S. Bank, Wachovia and Wells Fargo. NACHA's financial institution members originated more than 61% of commercial automated clearing house transactions during 2001.

First Data Reports 2nd-quarter Gain
First Data Corp. credits its Western Union Payment Service division for a 22 % increase in its overall second-quarter net income. First Data reported net income of $298.6 million, or 39 cents a share, compared with $245.4 million, or 31 cents a share, the previous year. According to First Data, revenue for its Western Union segment rose 17% to $780 million because of expanded product offerings, increasing demand for money transfers and improved expense management.

CheckFree Added to FORTUNE e-50 Index
CheckFree Corp. has been added to the FORTUNE e-50 Index. Developed by editors of FORTUNE magazine, the FORTUNE Index Committee selects 50 companies the magazine believes best represent the Internet economy in the e-companies, Internet communications, Internet hardware and Internet software and services. CheckFree replaced Corning Inc. on the e-50 Index.

Companies are removed from the Index if, during a 25-consecutive-trading-day period, a company's closing share price falls below $5, daily trading volume is less than 100,000 shares or total market capitalization is less than $100 million.

First EMV Transaction in Mexico
VeriFone, Inc. and Mexico City-based bank BBVA Bancomer believe they have conducted Mexico's first Europay/MasterCard/Visa (EMV) transaction. EMV is a global, smart card payment standard developed by the three payment processors. BBVA Bancomer used VeriFone's Omni 3750 terminal in the transaction, which was conducted at La Casa del Fumador in Mexico City. BBVA Bancomer hopes to reduce fraud and eliminate card skimming at the point-of-sale by using EMV smart cards.

ATMsafe Improves Web site
ATMsafe announced it has made updates and improvements to its Web site, including the addition of an online proposal request form. ATMsafe is a type of insurance that covers the amount of cash lost and any medical expenses resulting from injuries suffered if the customer is robbed at an ATM. The service also adds a new source of revenue for ATM owners or lessors at each transaction.

Many of ATMsafe's clients are in Latin American countries, where safety concerns while using ATMs are very real. For more information, go to the ATMsafe Web site, www.atmsafe.com.

Partnerships

Clarke American to Use eFunds' Background Checks
ChexSystems, Inc., a wholly owned subsidiary of eFunds Corp., has partnered with Clarke American Checks, Inc. to fight fraud and account abuse. The agreement between the companies provides 4,000 Clarke American-associated financial institutions with Web-based access to eFunds' ChexSystems background checking, account-verification and risk-management services for new account applicants. Clarke American provides checks and check-related services, contact-center services and direct-response marketing solutions to the financial services industry.

PayPal Adds Shipping Option
In June 2002, PayPal partnered with UPS to provide shipping functionality within its Web site so users would no longer have to arrange for shipment of an item as a separate transaction. For those customers wanting to use the U.S. Postal Service for shipping instead, PayPal is partnering with Stamps.com.

As part of a fully integrated agreement with Stamps.com, PayPal will provide its users with the ability to buy and print USPS-approved postage online from their PayPal account. PayPal sellers will be able to calculate the amount of postage required and, similar to the UPS option, print a shipping label pre-populated with the recipient's information.

PayPal plans to make the Stamps.com shipping functionality available in time for the 2002 holiday season.

PayPal, crediting increases in total payment volume, reported that its 2002 second-quarter earnings rose $5 million from the first quarter to $53.8 million, an increase of 173% from the $19.7 million in revenue in the second quarter 2001. PayPal also reported net income of $529,000 for the second quarter 2002.

USA Payments Employs TNS' Services
Seeking a more cost-effective solution, USA Payment Systems, an ATM, POS, debit and credit card processing company, selected Transaction Network Services' solutions to transport payment card authorizations from ATMs in the United Kingdom and from debit card-enabled slot machines in U.S. casinos.

Mobile Processing Solution
Motorola, Inc. and Creditel, a provider of wireless payment transaction products, partnered to create a portable transaction-processing solution for mobile merchants. Motorola is certifying Creditel's PowerSwipe phone accessory device for use with Motorola iDEN mobile handsets. The PowerSwipe attaches directly to the handset, allowing merchants such as pizza deliverers and taxi drivers to securely process credit cards and check payments in the field. Motorola and Creditel plan a full-scale commercial launch of the solution in late 2002 after testing it in select U.S. markets.

Global Payments Partners with Sears
Global Payments Inc. will be the payment processor for a new program Sears National Bank, a wholly owned subsidiary of Sears, Roebuck and Co., is developing with other merchants. As part of the program, a group of select merchants such as airlines, hotels, restaurants, gas stations, supermarkets and entertainment companies will accept Sears' private label card.

Global Payments will provide processing services for Sears and acquirers of the merchants who accept the Sears cards. In addition, Global Payments will work with existing processors of those companies partnering with Sears in order to implement the program. Global Payments recently reported its Fiscal 2002 earnings. For the fiscal year, revenue increased 32% from $350.3 million the prior year to $462.8 million.

CrossCheck Has Three New Partners
CrossCheck, Inc. will provide check guarantee services to Club Monaco and PowerSports, Inc. Club Monaco, a subsidiary of Polo Ralph Lauren, is an international retailer of casual apparel and accessories. PowerSports, Inc. is a nationwide retail chain that sells a variety of all-terrain vehicles, personal watercraft and motorcycles. Club Monaco will use CrossCheck's services at its 23 U.S. locations, and PowerSports will use CrossCheck at its 15 locations. Also, Payment Resource International (PRI) will market CrossCheck's check guarantee services for checks accepted at the point-of-sale as part of its merchant payment offerings. PRI provides credit card processing and POS leasing services to retailers.

Trintech Wins Consolidated Restaurants
Dallas-based Consolidated Restaurant Operations (CRO), which owns, operates and franchises more than 140 restaurants across the U.S., such as The Spaghetti Warehouse, El Chico, Good Eats, Cantina Laredo, Casa Rosa, and Lucky's, has selected Trintech Group's ReconNET 6.1 to manage its reconciliation and deposit verifications. Trintech provides electronic payment infrastructure solutions. CRO will use ReconNET for handling its cash, check and credit card transactions as well as use it in its purchasing department to match contracted prices with actual invoice level detail.

The Bailey Group Employing Lynk Services
Lynk Systems, Inc. will provide full-service ATM transaction processing to The Bailey Group, a full-service ATM organization specializing in ATM placements. Lynk will supply transaction processing, daily settlement, Internet reporting and customer and technical report services. Customers using Lynk-supported ATMs will be able to withdraw money, check account balances and transfer funds between checking and savings accounts.

InteliData Solution Coming to Credit Unions
Mid-Atlantic Corporate Federal Credit Union is implementing InteliData Technologies Corp.'s EBPP biller-to-consumer electronic and bill payment solution, called InteliWorks, to 200 of its 1,100 credit unions. InteliWorks aggregates consumer bills from multiple presentment networks, allowing consumers to view bills from one site.

Diners Club Expands ATM Reach with Cirrus
Diners Club International cardholders with activated ATM PINs soon will be able to access MasterCard International's Cirrus network and get cash using their Diners Club cards. As one of the largest ATM networks in the world, the Cirrus network spans 790,000 ATM locations in more than 100 countries.

CheckFree Broadens Customer Relationships
CheckFree Corp. has signed a multiyear contract with Wells Fargo & Co. to provide online banking, e-billing and payment processing services as part of Wells Fargo's new online bill pay service. CheckFree has provided services to Wells Fargo since 1996.

Huntington National Bank selected CheckFree to handle the reconciliation process for its Positive Pay services offerings. Huntington National Bank is a subsidiary of Huntington Bancshares Inc., a $25 billion regional bank holding company based in Columbus, Ohio. CheckFree has provided services for Huntington for more than 12 years. The CheckFree solution Huntington plans to use, ARP/SMS, reconciles checks and deposits and reports electronic activity.

Appointments

eFunds Names Interim CFO
eFunds Corp. has named Thomas S. Liston interim Chief Financial Officer, replacing Paul Bristow. Liston's background includes a variety of senior finance and chief financial officer positions in the retail sector, and he most recently served as interim Chief Financial Officer for PETsMART, Inc. eFunds' Chairman and CEO, Gus Blanchard, plans to retire at the end of 2002, and the company is searching for a replacement. Liston will continue to serve as interim Chief Financial Officer until after the appointment of a new CEO.

New Senior Vice President at Sterling
Tampa, Fla.-based Sterling Payment Technologies, an electronic payment processing company, has appointed Sean Riley Senior Vice President and Operations Officer. Riley has more than 26 years of experience in the payment industry. In his most recent position, Riley served as Group Manager in the Third Party division of Paymentech, managing account relationships and ISO sales for more than eight years.

Diebold Creates New Position
Diebold, Inc. has named William E. Rosenberg Vice President of Corporate Development, a newly created position. Most recently, Rosenberg served as Senior Vice President of Finance, Strategic Planning and Mergers and Acquisitions for Creative Management Services, Inc. in St. Louis. He also served more than 16 years in various financial and strategic planning positions at Emerson Electric Co., also in St. Louis.

Acquisitions

First Data Acquiring BP's PayPoint
Expanding its presence in the petroleum/convenience store and grocery store markets, First Data Corp. announced plans to acquire PayPoint Electronic Payment Systems from BP plc. BP is the global brand formed by the combination of the former British Petroleum, Amoco, ARCO and Burmah Castrol. PayPoint was created in 1984 to process PIN-based card payments at gasoline islands for ARCO, which later was bought out by BP. PayPoint also has contracts with Albertson's, Costco, Trader Joe's and McDonald's.

Verus Embarks on Consolidation Campaign
Verus Financial Management, Inc. has plans to create a leading payment processing firm by consolidating other processors. Network 1 Financial, a credit card and automated clearing house processor, is Verus' first acquisition. Under terms of the acquisition, Network 1 will become a wholly owned subsidiary of Verus. Verus is funded mostly by FTVentures, a venture capital firm focused on the global financial services industry that manages more than $623 million in total capital.

Intercept Acquires Two Processing Centers
Intercept, Inc. has acquired Affiliated Computer Services, Inc.'s (ACS) item- and remittance-processing and statement-rendering division. Intercept purchased $7.5 million of ACS assets, including two locations in Woodbury and Utica, N.Y. The addition of these locations brings Intercept's total of item-processing centers to 27 coast to coast, with six centers located in New Jersey, New York and Massachusetts.

MasterCard, Europay Merger Completed
MasterCard International recently completed the merger with its longstanding strategic ally in Europe, Europay International. MasterCard's Europe region will continue to be based in Waterloo, Belgium.