News

Hypercom on the Rise in China

Hypercom Corp. is further expanding its global reach. The company announced it won a multimillion-dollar contract with China UnionPay, a Shanghai, China-based national payment network jointly established in March 2002 by several Chinese financial institutions. China UnionPay connects large banks and payments systems in China's major cities.

To build up the payment network, Hypercom initially will supply network equipment to transmit data between China UnionPay and other banks and card payment terminals in 100 of China's largest markets. China UnionPay's goal is to connect all payment systems throughout China by 2005.

Internet Casinos Prepare for PayPal

Internet casinos are responding to eBay's announcement that once it completes the PayPal acquisition, eBay no longer will allow PayPal to process any transactions for online gambling. PayPal provides a method of payment accepted at 85% of online casinos. According to a recent news story from OnlineCasinoNews.com, online casinos are already adding alternative payment methods to their sites.

InterCasino, an online casino mentioned in the article, says it will continue to accept credit card payments and wire transfers, but it has also introduced entirely new payment solutions such as 900pay and Electronic Checking Processing (ECP).

900pay charges payment directly to a gambler's phone bill, eliminating the need for credit card payments, and ECP allows gamblers to make up to $2,000 in deposits weekly, directly from their bank accounts. ECP is similar to paying by check, except the transaction is processed immediately and a PIN replaces the signature.

It will be interesting to hear the reaction of New York State Attorney General Eliot Spitzer, an outspoken opponent of online gambling.

Announcements

CrossCheck Will Educate USC

Rohnert Park, Calif.-based CrossCheck, Inc. is participating in a program to bring wireless payments to the University of Southern California (USC). CrossCheck will contribute its payments knowledge and technology to the project. Harex InfoTech, Inc., the company that launched ZOOP Universal Mobile Payments Service, a proximity payment system for "mobile wallets" based on infrared technology, also will be a sponsor.

The program will allow USC's students and faculty to make payments at infrared-enabled point-of-sale sites using the combined technology of a Handspring PDA equipped with Horex's ZOOP payment application, Cingular wireless service and a Virtual Visa card issued by the USC Federal Credit Union. USC's bookstore will be the first merchant on campus to use this program.

Another Bank Steers to Visa Pilot Program

Electronic Clearing House, Inc. (ECHO), the third-party processor for Visa's point-of-sale check services program, announced it has added Columbia Banking System, Inc. to the list of financial institutions participating in Visa U.S.A's pilot POS program. Checks from Columbia Bank will be routed through ECHO's automated clearing house (ACH) processing system.

Visa's POS program allows merchants to receive online authorization for paper checks immediately by converting them into electronic transactions. The checks are then accepted when verified against member bank accounts. With this program in place, merchants can reduce the cost of processing paper checks and prevent acceptance of checks backed by insufficient funds.

Partnerships

Hypercom and JCB Promote Smart Cards

Two companies with similar customers and acquirer and processor relationships have partnered to promote smart card technology. Hypercom Corp. recently announced that JCB International certified Hypercom's EMV kernel for Hypercom ICE card payment terminals for use with JCB's brand of J/Smart credit cards.

The EMV (Europay/MasterCard/Visa) kernel is a software module Hypercom created to speed up industry adoption of EMV solutions by supporting a range of different hardware models, hosts and languages. The EMV kernel is certified for use with all of Hypercom's ICE terminals, such as the ICE 5500, 4000, 6500 and 6000 models.

The Hypercom certification is the first JCB has made outside of Japan and is also its first global certification. The companies will jointly promote J/Smart cards and J/Smart card-enabled Hypercom terminals not only in the U.S. and Europe, but also in Brazil, Costa Rica, Taiwan, Malaysia and Korea.

E-Commerce Solution

iBill has partnered with Yaga, Inc. to provide online merchants with an efficient way to charge customers for content, thereby generating a source of revenue from their Web sites. With this collaborative e-commerce solution, merchants will have access to profitability reports, conversion statistics, popular download information and 24/7 multi-lingual customer support. Merchants using iBill's payment processing services also will benefit from Yaga's payment and accounting applications and services, such as digital rights management and content access control.

Bioscrypt Securing Safes

Many companies handling large sums of money want more control over who accesses their safes and at what times. NKL Safes, a member of Fire King International Security Group, has selected to use Bioscrypt Inc.'s fingerprint biometrics technology to control access to its safes for all cash management markets. Users of NKL's safes include companies such as McDonald's, Starbucks, Kaiser Permanente and Yum! Brands (Pizza Hut, KFC, Taco Bell, etc.). NKL Safes will integrate Bioscrypt's MV1200 OEM module into its AuditLok XLV system, which provides cash/user/event reports to a central database, validates money and dispenses coins. The safes also can interface with point-of-sale terminals and ATMs.

NPC Wins the Big Cheese

National Processing Co. (NPC) and CEC Entertainment, Inc. signed a multiyear credit card processing agreement. CEC Entertainment is the owner of Chuck E. Cheese's Restaurants. NPC will provide authorization and settlement services for all credit and debit card transactions accepted at 367 company-owned Chuck E. Cheese's Restaurants.

NPC also announced it has partnered with Valutec Card Solutions to offer an electronic loyalty and gift card program targeted for the regional merchant segment.

Faster Connectivity

ThruComm Inc. and PayPoint Electronic Systems Inc., a leading PIN-based debit processor recently acquired by First Data Corp., have signed a channel partnership agreement where PayPoint will offer ThruComm's Integrator service to its merchant customers nationwide. The two companies are currently deploying the service to more than 130 petroleum, specialty retail and restaurant locations, including ARCO petroleum stations. Tests are also in progress at two leading national Quick Service Restaurant locations.

Thrucomm's Integrator service delivers fast POS transactions and offers merchants multiple connections through one phone line. It works with merchants' existing stand-alone or integrated POS systems as well as back-office devices, providing a connection at or below the cost of dial-up without requiring upgrades in hardware or software.

ECHO Resounds with Entertainment Retailer

Electronic Clearing House, Inc. (ECHO) will provide check management services to Hastings Entertainment, Inc., a multimedia entertainment retailer with more than 144 stores in operation. ECHO entered into the agreement through its relationship with Cincinnati-based Provident Bank. Some of the services provided by ECHO will include check authorization at the point-of-sale, automated check re-presentment, consolidated returns and electronic check imaging.

AAA Chooses Payment Processor

AAA, the largest federation of motor and travel clubs in North America, has chosen CyberSource to be its electronic payment processor. The CyberSource payment solution, which enables real-time payments via credit and debit card and/or electronic check, can be used by all 80 AAA clubs to process payments accepted over the Internet or via call center for registration, membership renewal and service payments.

CrossCheck Services Replace Layaway

Grand Discount Furniture, a major furniture retailer in Virginia that has been in business for more than 50 years, will use CrossCheck's check guarantee services at its eight locations. The retailer plans to implement CrossCheck's multiple check premium, a service that replaces traditional layaway by allowing merchants to accept between two to four checks from a single check writer and deposit them over a period of time. Merchants can complete a sale of merchandise quickly while having the peace of mind that the payment is guaranteed.

CrossCheck also has developed a special check guarantee program for National Wood Flooring franchises that includes special pricing, stop payment, multiple check, premium approval and COD.

@pos Teams with VAR, Targets Pharmacies

@pos and Innovation Associates, Inc., a provider of automated prescription-dispensing solutions to pharmacies, announced a partnership whereby Innovation Associates will be a value-added reseller (VAR) of @pos' signature capture iPOS 3100 terminal. As part of the VAR agreement, Innovation Associates' PharmASSIST Symphony software will be integrated with the terminal. Innovation Associates also will resell the terminals to chain and independent pharmacy retailers.

Appointments

Concord Plans CEO Change

Concord EFS President Edward A. Labry III will succeed Chairman and CEO Dan M. Palmer as CEO in May 2003. As part of the succession plan, Labry will hold both titles of President and CEO. Palmer, who founded EFS in 1982, will continue as Chairman of Concord's board of directors, a member of the executive management group and as Chairman of EFS National Bank.

WRG Adds National Sales Manager

WRG Services, a full-service partner that provides total ATM management solutions to businesses in the U.S. and Canada, announced that Ray Papale has joined WRG as Manager of National Sales and New Business Development. Papale formerly worked at Lipman USA Inc., where he was National Manager of ATM Sales, also handling ISO accounts on the point-of-sale side.

ABANCO Appoints Sales Executives

Robert E. Cochran has accepted the position of Senior Vice President of Sales at ABANCO International LLC. Cochran previously served as President of Independent Merchant Services (IMS). Dan Lewis has joined ABANCO as Senior Vice President/Sales, and Tony Ashe is the new Senior Vice President/Marketing. ABANCO International is a registered ISO of EFS National Bank.

Gemplus Appoints New CEO

Gemplus International SA announced the appointment of Alex Mandl to Chief Executive Officer. Mandl's background includes serving as Chairman and CEO of Teligent Inc. from 1996 through to 2001. From 1991 to 1996, Mandl worked at AT&T, becoming President and Chief Operating Officer. Before joining AT&T, he spent four years as President and CEO of Sea-Land Services, Inc. Mandl currently serves as a director on a number of corporate and not-for-profit boards, including those of Dell Computers and Pfizer.

ECHO Announces New COO/CIO

Electronic Clearing House, Inc. (ECHO) announced the appointment of Alex J. Seltzer as Chief Operating Officer and Chief Information Officer. Seltzer previously has served as the CIO of Online Resources Corporation for 11 years and most recently has consulted clients such as the U.S. National Security Agency and several large corporations. He also has 14 years' experience in systems design, telecommunications and strategic consulting.