irst Data Corp. said it wants more time to get antitrust clearance to buy Concord EFS, Inc. Following talks with the U.S. Department of Justice, FDC said it will withdraw its original April 10, 2003 filing seeking antitrust approval and re-file the form with the DOJ and the Federal Trade Commission regarding its pending merger under the Hart-Scott-Rodino Antitrust Improvements Act. The re-filing will allow the Department's antitrust division more time to review the proposed merger; it also starts a new 30-day regulatory review period that would have expired on May 12. First Data plans to buy Concord for approximately $8 billion.

Visa Sued for Patent Infringement

Visa USA Inc. and Visa International are being sued by two technology partners, starpay.com, LLC and VIMachine, Inc. The companies claim that Visa's payer service - VPAS, or "Verified by Visa" - infringes on their patented technology involving the process of authenticating credit card account holders in online transactions.

starpay and VIMachine also claim that they shared information about patented technology with Visa through face-to-face meetings, telephone calls, e-mails and in regular correspondence and that Visa then stole the information from them by filing a patent application for a solution based on that information. The complaint against Visa was filed May 8, 2003 in the U.S. District Court for the Northern District of Texas.

Countdown to Section 326

The U.S. Treasury Department issued final regulations for implementing Section 326 of the USA Patriot Act. Section 326 requires that financial institutions establish minimum procedures for identifying and verifying customers who open new accounts in order to guard against money laundering and the financing of terrorism. The rules affect more than 30,000 U.S. financial institutions, which must be compliant with Section 326 by October 1, 2003.

U.S. Bills to Get Color

The U.S. Treasury Department and the Federal Reserve System unveiled a new design and updated security features for the $20 bill. The new bill will be harder to fake and easier to check because it's the first time since the 1905-Series that U.S. currency will include background colors other than black and green. The new Series-2004 currency designs will be introduced into circulation in late 2003 and will start with the $20 bill.

ANNOUNCEMENTS

EPN Offers ACH through Internet

The Electronic Payments Network (EPN) now offers financial institutions of all sizes the ability to transmit and receive ACH transactions via EPN's new high-speed Internet connection. Arizona FCU (Phoenix, Ariz.), TruWest CU (Scottsdale, Ariz.), First National Bank of Jeffersonville (N.Y.), EastBank (Minneapolis) and Fort Lee (N.J.) Federal Savings Bank are some of EPN's customers using this new service. EPN's Internet connection is secure and uses the latest encryption and authentication technology. Customers load Windows-based software called the Personal Computer ACH Interactive Management System (PCAIMS) on their PCs and connect to EPN through the Internet.

Help Wanted at ViVOtech

Santa Clara, Calif.-based start-up ViVOtech, Inc. is looking for a Senior Vice President, Sales. If you are interested in learning more about this position and the company, contact Gerald Hukee, Human Resources Manager for ViVOtech, at 408-248-7001, ext.130 or visit www.vivotech.com.

Yaga Opens UK Office

Yaga, Inc. announced the opening of a new office in London to provide sales support for publishers in Europe who need commerce and merchandizing technology for their Web sites. Andrew Grant will head the new office.

Global Payments Certifies ACH Direct

ACH Direct, Inc.'s Payments Gateway platform received certification from Global Payments Inc. for processing credit cards, debit cards and checks. Traditional retail, mail order, service industry and Web-based merchants all can use the Payments Gateway platform.

PARTNERSHIPS

Fiserv and SVPCo to Share Check Images

Customers of Fiserv, Inc. and SVPCo will be able to exchange and settle check images through the SVPCo network. The two companies have partnered to establish an integrated system "connection" that will allow participating financial institutions to electronically exchange check data and images among their client financial institutions.

Fiserv provides outsourced item-processing services for 1,700 clients through a network of 48 check-processing centers with imaging capabilities. SVPCo provides electronic payment services such as ECP, ACH and imaging. SVPCo's vision is to have an industry-wide exchange of check images.

Dresdner Bank Renews with FDC

Dresdner Bank AG signed a five-year processing agreement with First Data Corp., renewing its four-year relationship with FDC. First Data will continue to deliver credit card processing for Dresdner Bank's customers in Germany.

New Gift Card POS Solution

Gift card and loyalty processor Givex USA Corp. and touch-screen point-of-sale software provider RPOWER Restaurant POS announced plans to integrate their products to create a POS system for the hospitality industry. The companies expect the new solution to be available summer 2003. It will be marketed directly by RPOWER's dealers. In addition, Posera, Inc. integrated its 2003 Maitre'D software with Givex's frequent diner points processing services.

Global eTelecom Signs Two for ECC

DestinBank...The Financial Centre will provide Electronic Check Conversion to its customers and a network of banks across the U.S. by licensing in-house Global eTelecom, Inc.'s proprietary electronic check conversion technology. Global eTelecom's check services are licensed under U.S. Patents 5,484,988; 6,164,528; 6,283,366; and 6,354,491 from LML Payment Systems Corp.

Global eTelecom also renewed a two-year agreement with Cynergy Data and will continue to provide processing and support for Cynergy's Electronic Check Conversion program.

China's Largest Bank Picks Hypercom

Hypercom Corp. said it expects multimillion-dollar orders for thousands of its Hypercom ICE 5500Plus and ICE 5700Plus card payment terminals to come out of its partnership with Industrial and Commercial Bank of China (ICBC). ICBC plans to offer Hypercom's terminals to merchants in China. Hypercom will be ICBC's preferred equipment provider for the second year in a row.

Moneris to Process for Intrawest Resorts

Moneris Solutions Corp. will process Visa and MasterCard and debit card payments at all of Intrawest Corp.'s Canadian properties. Intrawest is a developer of village-style resorts and has multiple points that accept credit and debit card payments, such as hotels, restaurants, stores, equipment rental, lift ticket and greens fees payments.

NPC, Payerpath Team Up

As part of a multiyear co-marketing agreement with National Processing Co., LLC, Payerpath, Inc. will market NPC's HealthePay service (formerly known as AcceleratedPay) to its payer partners. Payerpath is a provider of financial transaction solutions over the Internet for the health care industry.

Smart Cards Hit the Midwest

First National Bank Omaha, a division of First National of Nebraska, will issue 100,000 Visa smart cards from Oberthur Card Systems to its customers over the next two years. One service the bank will offer through the smart cards is FileIT, a "convenience storage" application that allows cardholders to securely store personal data such as birthdays, a social security number or frequent flyer details in their card's memory.

MERGERS/ACQUISITIONS

Two Clearing Houses to Merge

Two of the oldest clearing houses in the U.S., - The Clearing House and The Chicago Clearing House, announced plans to merge. The organizations were formed separately in the mid-19th century - before the Federal Reserve - to facilitate the exchange of payments. Today, both are owned by banks and both clear and settle checks.

The Clearing House, through the National Check Exchange, processes $7.8 billion daily for its 35 participants in the Northeast. The Chicago Clearing House provides check clearing and settlement services totaling more than $2.5 billion daily for seven member banks and 400 affiliates throughout Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin.

Paymentech Adds 15,000 Merchants

Payment processor Paymentech Canada acquired Citibank Canada's MasterCard merchant portfolio (excluding Citi Global relationships) of 15,000 merchants. In October 2002, Paymentech Canada acquired Scotiabank's Visa portfolio. The combination of these merchant portfolios will allow Paymentech to provide consolidated billing and settlement to Canadian merchants.

PRE Expands in Puerto Rico Market Share

PRE Solutions, Inc. acquired Innovative Solutions, Inc., one of its largest competitors in Puerto Rico. PRE Solutions said that with the acquisition, it now has more than 50% of the prepaid market share on the islands. PRE Solutions' prepaid products and services such as wireless, long distance, home telephone, Internet and MasterCard branded-cards are provided in all 78 municipalities of Puerto Rico and United States the Virgin Islands.

TSYS Adds Enhancement

TSYS acquired Enhancement Services Corp. (ESC), provider of loyalty and gift card programs. ESC will operate as a wholly owned subsidiary of TSYS, and ESC's President and CEO, Steven Wilson, will continue to manage day-to-day operations. APPOINTMENTS

Lynk Hires VP for MSP Sales Team

Lynk Systems, Inc. announced the appointment of Tom Della Badia to Vice President of its newly formed MSP Sales Channel. Before joining Lynk, Della Badia served 3 1/2 years as Regional Vice President for NOVA Information Systems' New York Regional Distribution Center.

Visa Hires Brand Expert

Visa International appointed John Elkins head of Global Brand and Marketing. Elkins is founder and former CEO of Interpublic Group's FutureBrand, a global brand consulting firm with clients such as Bank of America, UPS, Microsoft, Telefonica, British Airways and Samsung. Elkins previously served as CEO of the Naisbitt Group.

eFunds Snags Industry Veteran

Eric S. Bleicher joined eFunds Corp. as Vice President of National Sales for eFund's EFT solutions business line. Bleicher has 24 years of experience in the financial services industry. Before joining eFunds, Bleicher was Vice President of ISO Business Development for NYCE Corp. He also has served as Vice President and General Manager of US Processing/First Data Resources and has held positions with M&I Data Services and A.O. Smith Data Systems.

PPI Lands Bankcard Exec

Payment Processing, Inc. (PPI) hired Lisa J. Brzezicki as Vice President, Strategic Business Development. Brzezicki has 20 years of card industry experience in areas such as business development, marketing and sales. She most recently served as Vice President, New Markets for MasterCard International. Brzezicki also held various management positions for 11 years at American Express.

MagTek's Hart Named President/CEO

Annmarie D. "Mimi" Hart was named Chairman, President and CEO of MagTek, Inc. Hart has been associated with MagTek for more than 28 years, most recently serving as a Director since 1999 and as a strategic advisor to MagTek's executive management team. She began her career at the company in 1975 as a Sales Executive. Hart succeeds Thomas McGeary, who passed away in December 2002.

Catuity Elects New Chairman

Duncan P.F. Mount, a major Catuity Inc. shareholder and a non-executive board member, was elected to serve as Chairman of Catuity's Board of Directors. The company changed the role of Chairman to be a Nonexecutive Chairman; and as part of this transition, David L. MacSmith voluntarily stepped down as Chairman.

The Catuity Board now consists of five directors, with one executive director and four independent non-executive directors.

JCB Promotes Omoto

JCB International, the largest card issuer and acquirer in Japan, promoted Masahiro Omoto to Executive Vice President and General Manager of the Advanced Technologies Department. Omoto had served 16 years of his 18-year career with JCB in the International Department. Most recently, he has been responsible for smart card migration outside of Japan, including product launches and pilots in Taiwan, the U.S., U.K. and Switzerland.

Capital One Recruits New CFO

Gary L. Perlin will serve as Capital One Financial Corp.'s New Executive Vice President and CFO, effective July 1, 2003. Perlin replaces David M. Willey, who resigned in March after receiving a Wells notice from the SEC.

Perlin currently is CFO and a Senior Vice President of the World Bank in Washington, where he has served for 13 years. Before joining the World Bank, he worked at the Federal National Mortgage Association (Fannie Mae) for more than 11 years.

Cynergy Data Appoints VP Sales

Cynergy Data hired Donald Saunders as Vice President of Sales, overseeing the national recruitment efforts of Independent Sales Organizations and sales agents. Saunders has more than 10 years of bankcard industry experience. Saunders previously served as Vice President of Sales for Electronic Data Resources.

Spectrum Adds VP Business Development

Spectrum Merchant Services, a division of Spectrum Business Solutions LLC, appointed Pamela Smith as Vice President of Business Development. Smith has 15 years' of industry and banking experience. She most recently served as Director, Business Development/Western Region for Paymentech Processing Services. She also was the AVP Bankcard Manager and Business Development Officer at Bank of the Cascades in Oregon, overseeing both the issuing and acquiring program.

BOTTOM LINES

• Kmart emerged from 15 months of bankruptcy protection as the newly named Kmart Holding Corp. It is a smaller company than before (down to 1,500 stores from 2,100) and has new management.
• Major retailers such as Wal-Mart, Target, J.C. Penney and Sears, Roebuck and Co. missed their sales targets for April 2003, blaming chilly temperatures.
• CBL & Associates Properties, Inc. opened Cobblestone Village in St. Augustine, Fla., a 261,110 square-foot community shopping center.
• Chain Store Guide (CSG) re-released its Database of Retail Locations, which it updates three times a year with information on merchant location, modeled weekly sales volume and square footage. The database allows companies to access businesses across the U.S by industry class or choose stores by market definition, state and zip code. For more information, visit www.csgis.com.
• Grocery distributor Roundy's Inc. will buy 31 Rainbow Foods stores from bankrupt Fleming Cos., Inc. for $42.5 million plus inventory.