NEWS

Visa Projects Growth in Business Spending

Commercial spending by American businesses and government entities will continue to expand by an estimated 3.6% next year, according to the latest Visa U.S.A. Commercial Consumption Expenditure (CCE) index. Visa's index estimates that business spending will reach $14.5 trillion by the end of the year, up 4.4% or $577 billion from 2003. Visa economists project 3.6% growth in 2005 to nearly $15 trillion, with business spending steadily increasing through 2010, when it's expected to reach nearly $18 trillion. A team of Visa research and economic experts created Visa's CCE index earlier this year. Methodology for the CCE index draws on government data in methods similar to the Personal Consumption Expenditure (PCE) index that annually monitors consumer-related spending.

Women-owned Businesses Growing

Women-owned businesses in the top 50 metropolitan statistical areas (MSAs) play a critical role in driving the economic health of the U.S. economy, according to a recent study from Wells Fargo & Co. and the Center for Women's Business Research. According to the study, "Women-owned Businesses in 2004: Trends in the Top 50 Metropolitan Areas," women-owned businesses in these key markets grew by 30% from 1997 - 2004, com-pared to a 10% growth rate for all firms during the same period. The five MSAs with the fastest growth rates for 50% or more women-owned businesses are Salt Lake City/Ogden, Phoenix/Mesa, Las Vegas, Raleigh-Durham/Chapel Hill, N.C. and Charlotte/Gastonia/Rock Hill, N.C.

ANNOUNCEMENTS

Acquiring Solutions Offers Risk Management

The Merchant Mechanix division of Acquiring Solutions, LLC, a credit card advisory and processing company, now offers a risk management and chargeback reduction consulting service to help Internet and MOTO merchants minimize fraud. Merchant Mechanix analyzes a business's credit card processing usage and educates merchants on credit card compliance and possible penalties for violations. It offers individualized fraud control and chargeback management plans and fraud-screening software.

CardSystems Secures $9.3 Million

Payment processor CardSystems secured $9.3 million in a private placement funding. The company will use the funds to continue expanding its payment processing and merchant acquiring services in support of its ISO and bank clients.

EMG Opens Dallas Office

Eliot Management Group (EMG) recently opened its 15th office located in Dallas and will launch its Lone Star Division. The Lone Star Division covers Texas, Oklahoma and parts of Louisiana. EMG began negotiation for office space near downtown Dallas that will serve as the sales hub for the Dallas area market and operate as the center for the division. This facility will house 16 sales, support and management staff.

Christian Schreiber will open the Dallas market as the Local Manager, and Anthony Norrie will relocate from EMG's Salt Lake City corporate offices to manage the newly formed division. This facility will augment EMG's presence in Fort Worth and provide area merchants with a secondary branch from which to receive service.

TransFirst Reports Growth

TransFirst, a provider of transaction processing services and payment enabling technologies, plans to double its office space to 73,000 square feet and hire personnel in every category, from entry level to senior account management. TransFirst is the 12th largest transaction processor in the United States.

North American Bancard Opens Headquarters in Troy, Mich.

North American Bancard (NAB) recently opened its new corporate headquarters in Troy, Mich. The facility will serve as home to more than 100 employees. The company processes more than $2 billion in transactions annually. NAB currently provides payment solutions for more than 20,000 merchants and adds an average of 1,500 new clients every month. Due to this growth, NAB expects to add an additional 100 employees at the Troy headquarters within the next 12 months.

Plug'n Pay Completes RAMP Review

Plug & Pay Technologies, Inc., completed the MasterCard RAMP (Risk Assessment Management Program) review. With the successful completion of the RAMP review, its Plug'n Pay solution is in compliance with the operating guidelines established by MasterCard for e-commerce security; it's also compliant with the MasterCard standards for the Loss Control Program for merchant acquiring.

TrustCommerce Completes 2nd Year of CISP Compliance

TrustCommerce, an IP-based payments solutions provider, completed validation of its second year of compliance with Visa's Cardholder Information Security Program (CISP) requirements. Visa's CISP establishes a set of 12 industry-wide requirements designed to protect sensitive information from being compromised.

PARTNERSHIPS

Aconite and Welcome Team Up

International smart card solutions provider, Aconite, and Welcome formed a strategic partnership. Welcome provides smart card software that enhances payment transactions with real-time POS features such as welcome gifts, targeted samples and loyalty points. The partnership will enable Aconite and Welcome to deliver value-added payment solutions to banks, financial institutions and merchants worldwide.

MicroPortal Available on Ingenico Terminals; 710 Certified by UBC

Atrana Solutions extended access to its PAYWAVE network by enabling its MicroPortal technology on Ingenico's Elite 510, 710 and 712 multi-app POS terminals. MicroPortal is a thin-client software engine that enables multiple applications to function as a single system. MicroPortal is a "portal" to the PAYWAVE network that offers a portfolio of services including gift card support, prepaid bankcard loading and age verification. Atrana entered into an agreement with Ingenico to resell terminals preloaded with MicroPortal. Ingenico customers with an installed base of terminals require only a single software download to add MicroPortal to terminals already in the field.

United Bank Card, Inc. (UBC) also certified the Ingenico Elite 710 terminal for credit, debit and EBT acceptance. UBC is a payment and transaction processor serving businesses nationwide, handling merchant accounts for more than 15,000 merchant locations and processing in excess of $1.5 billion annually. Also certified with the Elite 710 is the i3010, a PIN pad that connects to the Elite 710 and other Ingenico terminals, as well as other manufacturers' devices.

DuoCash, iBill Form Agreement

DuoCash, Inc. and Internet Billing Co., Inc. (iBill) formed a joint marketing agreement that allows iBill's online merchants to accept prepaid phone cards as an alternative to credit cards. DuoCash owns and operates a payment network that enables consumers to use the stored dollar value on their prepaid long distance telephone cards to make purchases on the Internet. The agreement provides iBill exclusive use of the DuoCash network to the online entertainment market and Master Merchant status in all markets.

First Data, Bank of America Extend Agreement

First Data Corp. and Bank of America (BofA) signed a letter of intent to provide new and expanded services. BofA will extend its agreement with the STAR Debit and ATM Network, one of the suite of services within the First Data Debit Services portfolio. Under the agreement, the STAR Network will begin to process PIN-secured debit transactions for a portion of BofA's portfolio. In addition, a majority of BofA ATMs will continue to participate in the STAR Network. BofA will extend its contract with First Data Voice Services for Interactive Voice Response and live agent card activation services for its credit and debit card portfolios. TASQ Technologies, Inc., a subsidiary of First Data, will supply POS equipment and supplies for BofA's merchant acquiring business. BofA will also extend its current contract with Primary Payment Systems (PPS), a part of the First Data family, to provide risk management solutions.

Foresight and VECTORsgi Automate Transaction Processing

Foresight Corp., a provider of transaction processing automation for the healthcare industry, and VECTORsgi, a provider of financial transaction applications, partnered to deliver technology solutions to banks. Under the terms of the alliance, VECTORsgi will provide its banking customers versions of its VECTOR E-Payments Solution software for electronic payment file translation, processing and settlement. The solution will include the high-speed validation and business activity monitoring functions of Foresight's InStream and Transaction Insight solutions. Healthcare payers and providers use this technology to validate patient claims, remittance advices and other transactions. Additional capabilities include the automated generation of instant alerts triggered by errors and other predefined criteria.

Huntington Selects TNS

The Huntington National Bank selected Transaction Network Services, Inc. (TNS) to provide managed ATM network connectivity. Under the multi-year agreement, Huntington National Bank will use TNS TransXpress Secure to support its ATM portfolio. TransXpress Secure is a fully managed, "always-on" networking solution that provides a secure path between the ATM and the host processor via the Internet. TNS manages the entire network solution, including ordering the local telecommunications service, scheduling the installation of the service at the ATM locations and providing ongoing network management.

Hypercom Teams with SiVault

Hypercom Corp. and SiVault Systems, Inc. partnered to improve the authentication and fulfillment of medical prescriptions. The companies will combine Hypercom's Optimum L4100 multi-application signature capture card payment terminal and SiVault Systems' prescription authentication and remote storage service software suite.

KeyCorp, University Bank Form Agreement

University Bank of Ann Arbor, Mich., signed an agreement with Cleveland-based KeyCorp to provide its customers with surcharge-free access to Key's network of more than 549 ATMS in Michigan, Indiana and Ohio. Through Key's agent bank program, banks, credit unions and other financial services companies provide their customers surcharge-free or surcharge-reduced access to Key's ATM network. Institutions can access Key's nearly 2,200 ATMs nationwide.

Lynk Allies with SDCR Business Systems and ATM USA

Lynk Systems, Inc. formed a strategic alliance with privately held SDCR Business Systems. SDCR provides POS solutions for independent and multi-unit operators in the foodservice, hospitality, retail and grocery industries. SDCR is a reseller of Radiant Systems' Aloha POS solutions. Combined with Lynk's electronic payment processing, Aloha POS software provides transaction processing, while eliminating the expense of separate restaurant management equipment and payment terminals. SDCR joins the OneLynk Alliance, Lynk's value-added reseller program.

Lynk also formed an exclusive, long-term processing agreement with ATM USA, LLC, an independent owner and operator of more than 1,400 ATMs. Under the terms of the agreement, ATM USA will rely on Lynk's services, including transaction processing, comprehensive ATM monitoring, Web-based reporting and terminal management.

MasterCard Pilots PayPass in Canada

People's Trust Company and Mint Technology Corp. will begin issuing and supporting MasterCard PayPass- enabled cards in Canada for use over the next year as part of a program pilot. PayPass is a contactless payment option using radio frequency (RF) technology. To make purchases, consumers tap or wave their PayPass card on a specially equipped merchant terminal, eliminating the need to swipe a card through a reader. Mint will incorporate MasterCard PayPass RF capabilities into its product and service set.

Pay By Touch and Discover Partner

Pay By Touch, a free consumer payment service that allows shoppers to pay for purchases using a finger scan, entered into an alliance with Discover Financial Services. The companies expect the partnership to increase daily usage of Discover Cards at the POS and drive adoption of Pay By Touch. To enroll, shoppers scan their finger, enter a search code, swipe rewards and/or payment cards and add their checking account information. The data create a personal Pay By Touch wallet, which is stored at secure IBM data centers. Piggly Wiggly stores throughout South Carolina have implemented Pay By Touch.

TeleCheck Selected by La Petite Academy

La Petite Academy, Inc., a privately held childcare company, rolled out TeleCheck's PayIt service, an account receivable conversion solution. The PayIt service enables more than 600 La Petite Academy locations to convert checks into electronic transactions and process one-time payments through the automated clearinghouse (ACH).

ACQUISITIONS

iPayment, Inc. Acquires Transaction Solutions

iPayment, Inc., a provider of credit and debit card-based payment processing services to more than 100,000 small U.S. merchants, acquired Transaction Solutions, an ISO with a portfolio of approximately 4,000 small merchants and annual charge volume of approximately $500 million. iPayment expects the transaction to provide earnings of approximately three cents per share.

Q Comm Completes Acquisition of POSA Tech Accounts

Q Comm International, Inc., a provider of prepaid transaction processing and electronic POS distribution solutions, acquired approximately 330 of its Qxpress merchant accounts from POSA Tech, Inc., a Q Comm distributor. Q Comm will immediately step into the management role on the accounts, including working directly with the retail locations. Q Comm will retain the commissions previously paid to POSA Tech for managing the accounts. Under the terms of the agreement, POSA Tech received $200,000 in cash at closing and will receive an additional $50,000 in cash payable in increments of $12,500 over four quarters. One year after closing, POSA Tech will receive shares of restricted Q Comm common stock with a value of $50,000 based on the value at closing.

SunTrust, National Commerce Financial Merger Approved

The shareholders of SunTrust Banks, Inc. and National Commerce Financial Corp. (NCF) approved the merger of the two companies. NCF is a sales and marketing organization that delivers financial and consulting services through a national network of banking and non-banking affiliates. NCF operates almost 500 branches. The companies expect to complete the merger in early October 2004. The Federal Reserve also approved the merger.

APPOINTMENTS

Solveras Payment Systems Names Bomar CFO

Robert O. Bomar joined Solveras Payment Systems as the company's Chief Financial Officer. Bomar brings 17 years' experience in managing technology-based companies. Prior to joining Solveras he served as Executive Vice President and Chief Financial Officer at Medibuy, an Internet-based supply chain company. His experience also includes 10 years with Price Waterhouse, predominantly serving clients in the payment-processing sector.

MasterCard Names Dunbar President, Global Technology and Operations

MasterCard International appointed W. Roy Dunbar President, Global Technology and Operations. Dunbar joins MasterCard from Eli Lilly, where he served for 14 years. Since January 2004, he served as President of Eli Lilly's Intercontinental Region. Previously, he was Vice President of Information Technology and Chief Information Officer. In 2003, "Information Week" named him Chief Information Officer of the Year. Dunbar succeeds Jerry McElhatton, who will retire from MasterCard at the end of the year.

Hendershot Appointed to Lakeland Bancorp Board

Janeth C. Hendershot was appointed to Lakeland Bancorp's Board of Directors. Hendershot is a Senior Vice President at Munich-American Risk Partners and held various positions at numerous insurance organizations. Hendershot is a Director of Newton Trust Co., a subsidiary of Lakeland Bancorp and a past Director of Newton Financial Corp.

Lewis Joins OneBridge

Card processing company OneBridge appointed Spencer Lewis to the position of Vice President of Sales. Lewis' responsibilities include the development and management of sales objectives. In addition, Lewis serves on the organization's leadership team, reporting directly to OneBridge President, Kim Graham Lee. Lewis joins OneBridge with more than 18 years of experience providing EFT solutions to financial institutions. For 14 years, ACI Worldwide, Inc. employed him in a variety of sales and management capacities. As President/Country Manager of ACI's Brazilian outfit, he helped establish operations and build a local sales presence within the country.

Bottom Lines

• The average consumer plans to spend $43.57 on Halloween merchandise this year, and $14.83 of that will be spent on candy, according to the National Retail Federation's (NRF) "2004 Halloween Consumer Intentions and Actions Survey," conducted by BIGresearch.
• Albertson's, Inc. acquired Bristol Farms, a Southern California gourmet- and specialty-food retailer. All 11 Bristol Farms stores will continue to operate under the Bristol Farms name.
• Athletic retailer The Finish Line, Inc. will use Retail Decisions' (ReD) risk management service for its e-commerce transactions.
• JoS. A. Bank Clothiers, Inc. plans to open 40 new stores in the second half of fiscal 2004.