NEWS

NACHA Project on Hold

The next phase of NACHA's Project ACTION ("NACHA's Project is a Dubious Action Plan," The Green Sheet, Dec. 9, 2002, issue 02:12:01) is on hold. A statement released by NACHA declared that, although many financial institutions and their customers support the ACTION concept, the NACHA Board believes that because of the current business investment climate, "ACTION will not receive the investment necessary to proceed at this time."

Although the ACTION concept and business plan remain available to the banking industry, NACHA's Board instructed the Proof of Concept plan to be placed on hold and says it looks forward to continuing the project "when market conditions warrant moving forward."

Q3 Preliminary GDP Estimates Higher

According to preliminary estimates released by the U.S. Department of Commerce's Bureau of Economic Analysis, Gross Domestic Product (GDP) expanded at an annual rate of 4% in the third quarter 2002, revised from a 3.1% growth rate originally reported in advance estimates in October. The preliminary GDP number is based on more complete data available for the advance estimates. The major contributors to the increase in GDP in Q3 were personal-consumption expenditures, government spending, equipment and software, private inventory investment and exports.

NPC, Kentucky Bank Sued

Victoria's Secret Stores Inc., Express LLC, Limited Stores Inc. and several other retailers affiliated with Columbus-based Limited Brands Inc. are suing National Processing Co. (NPC) and National City Bank of Kentucky, Columbus Business First reported. The retailers allege NPC and National City Bank have been withholding $1.6 million in October sales receipts and that the two companies also had withheld $15.5 million in September credit card proceeds because some of Limited Brands' divisions had begun using processing services of NPC's competitors.

Limited Brands said the withholdings caused it to overdraft accounts and issue bad checks. Although the $15.5 million has been returned to Limited Brands, the lawsuit claims $1.6 million in October receipts still have not been released. The lawsuit seeks to retrieve the $1.6 million, compensatory damages in excess of $25,000, punitive damages, indemnification for any liability or expenses, interest and attorney fees.

ANNOUNCEMENTS

CheckFree Executive Leaving

CheckFree Corp., an electronic bill payment company, announced that President and Chief Operating Officer Peter Sinisgalli is leaving the company on Jan. 31, 2003. The Atlanta-based company does not plan to replace Sinisgalli, who joined CheckFree in 1996. "I needed a new challenge," Sinisgalli told the Atlanta Journal-Constitution, adding that he is in the market for a job in the Atlanta area. CheckFree said it plans to adopt a new management structure in which heads of each of its divisions report directly to the Chairman and Chief Executive, Pete Kight.

WesPay Warns of False Claims

The Western Payments Alliance (WesPay) announced in a statement that it has "no connection whatsoever" with an entity, allegedly based in London, calling itself the Financial Clearing House (www.financialhouse.org) and claiming to be a founder of WesPay. WesPay says it is not a member of Financial Clearing House and has not been involved in any transactions with the organization. In addition, information about WesPay was posted on the entity's Web site without WesPay's permission.

WesPay says it has notified U.S. and U.K. authorities about the fraudulent claim and is asking its 1,000 members to proceed with extreme caution if approached by Financial Clearing House, which has been linked to financial crimes in Africa and Australia. Anyone with knowledge about Financial Clearing House should contact WesPay at 415-433-1230.

ALLIANCES

Heartland Expands with Triumph

Heartland Payment Systems, Inc. announced it has expanded its processing partnership with Triumph Hospitality, prestigious hotel properties in New York City resulting from a four-hotel merger in April 2002. Heartland will provide credit card processing and value-added services for all four of Triumph's hotel properties and two of its restaurants. Previously, Heartland provided processing services to three of Triumph's hotels.

Certegy Wins e-Commerce Network

Certegy Inc. will provide electronic check and ACH warranty services through its PayNet platform to Ritz Interactive, Inc., an e-commerce network that includes sites such as RitzCamera.com, Boatersworld.com and RitzPIX.com. Certegy has been providing check authorization and risk management services for more than 1,200 "brick and mortar" Ritz Camera Centers and Wolf Camera locations nationwide since 1997.

First Data Expands in Canada

Beginning in the first quarter 2003, First Data Corp. will expand its relationship with Home Trust Co., a wholly owned subsidiary of Home Capital Group Inc., providing processing, risk management, and sales and marketing expertise through its Canadian subsidiary, CardSolve International Inc. Home Trust is a federally regulated trust company offering deposit, mortgage lending, retail credit and credit card services. First Data and Home First originally partnered in 2000, when First Data began providing processing services for Home Trust's Visa credit card issuing business.

ACQUISITION

Certegy Acquiring Netzee

Certegy Inc. announced an agreement to acquire Atlanta-based Netzee, Inc. and all of its assets, including Internet- and telephone-based products, for $10.4 million in cash. Netzee provides financial institutions with full-service Internet banking, bill payment, cash management and Internet commerce services. The public company was founded in 1999 as a subsidiary of The InterCept Group, Inc. The transaction requires Netzee shareholder approval and is expected to close by mid-January 2003. The transaction will liquidate and dissolve Netzee.

APPOINTMENTS

Humboldt Appoints Board Member

Humboldt Bancorp has appointed Steven R. Mills to the company's Board of Directors. Mills is a Senior Partner with Douglas Curtis & Allyn LLP, a mergers and acquisitions firm in Sacramento, Calif. He also serves on the St. Ignatius School Board and previously has been on the Boards of the Leland Stanford Mansion Foundation, the Access Capital/Sacramento Valley Forum, and the American Red Cross. Mills joined Humboldt's Board on Nov. 23, 2002.

Global Payments Elects Wilkins to Board

Global Payments Inc. announced the election of Gerald J. Wilkins to its Board of Directors. Wilkins is Executive Vice President and Chief Financial Officer of AFC Enterprises, Inc., which owns, operates, and franchises nearly 4,000 restaurants, bakeries and cafes in more than 30 countries worldwide. AFC's brands include Popeyes Chicken & Biscuits, Church's Chicken, Cinnabon, Seattle's Best Coffee, and Torrefazione Italian Coffee.

Wilkins also serves on the Board of Directors of AFC Enterprises. Before joining AFC Enterprises in 1995, Wilkins was Vice President of International Business Planning at KFC International.

From 1985 to 1993, he served in various financial management positions with General Electric. He also was employed by Peat, Marwick, Mitchell as a Certified Public Accountant.

Concord Promotes 2 to President

Concord EFS, Inc. promoted Bond R. Isaacson to President, Financial Services and Christopher S. Reckert to President, Payment Services. Isaacson joined Concord as Executive Vice President in September 2002. Reckert joined Concord in 1995 and previously served as Senior Vice President and Chief Marketing Officer at Concord.

Concord also announced that Dan M. Palmer, Chairman and outgoing Chief Executive Officer, will assume the role of Chief Strategic and Financial Planning Officer in May 2003 when Concord President Edward A. Labry III succeeds Palmer as CEO.