NEWS

Many Consumers Still Count on Float

Nearly 25% of consumers write checks to pay bills before they deposit sufficient funds in their accounts, according to consumer research by ESP Consulting. Aware that there is typically a delay of several days for mailing and processing, these consumers take advantage of "float."

Contrary to popular assumptions, "check floaters" are not only young and low-income customers, the research indicated. In fact, some of the best banking customers use this practice, at least occasionally.

Community Banks Optimistic about 2005

The future looks bright for community banking, according to Grant Thornton's Twelfth Annual Survey of Community Bank Executives. Seven out of 10 community bankers said they have an optimistic or somewhat optimistic outlook for the business of community banking in 2005. More than two-thirds share that sentiment about the general economic outlook in 2005, according to the survey.

ATM Industry Fact Sheet Released

Tremont Capital Group released its "2005 ATM Industry Fact Sheet," which summarizes both the history and current state of the ATM industry. Among the findings, Tremont estimated that 394,500 ATMs are currently deployed within the United States and that non-bank ISOs operate approximately 49% of them.

Tremont predicted that rapid consolidation will likely continue in the near-term until consolidators acquire the nation's remaining viable small to mid-sized ATM portfolios. Download the report from the Web site at www.tremontcapitalgroup.com .

ANNOUNCEMENTS

ACH Direct Certified With Vital Processing Services

ACH Direct finalized certification of its Payments Gateway platform with Vital Processing Services. Vital certified ACH Direct's Payments Gateway for processing retail, direct marketing, e-commerce, purchase card and recurring transaction types.

Certegy Serves Supermarkets

Certegy Inc. signed an agreement to provide its Pathways check authorization and collection services to BI-LO and Bruno's food retail chains. BI-LO and Bruno's operate more than 400 supermarkets in the southeastern United States. Using the Pathways solution, retailers use the up-front check authorization services but assume the risk for fraudulent checks.

CO-OP Network Launches Credit Union Marketing Program

CO-OP Network introduced an online service enabling member credit unions to customize and purchase marketing materials.

Available online on the CO-OP Network Extranet, the Credit Union Marketing Program is designed to educate cardholders to recognize the CO-OP Network logo, which promotes surcharge-free ATM access nationwide. Credit unions can choose from customizable materials including posters, brochures and tent cards.

JUSTCHEX Offers Real-time Check and ACH Verification

JUSTCHEX LLC now delivers real-time check and Automated Clearing House (ACH) verification to clients in the telecom and medical billing business sectors. Clients can verify checks before accepting them without leaving the POS applications that they use for processing various forms of payment. Clients can implement this service free of charge and pay on a per-use basis. This service is intended for any business that accepts check or ACH payments.

LaGarde Achieves CISP Validation

LaGarde's StoreFront e-commerce platform recently achieved validation with Visa's Cardholder Information Security Program (CISP) payment application best practices. StoreFront powers nearly 50,000 Web stores in 70 countries.

GASA Restructures Global ATM Crime Database

The Global ATM Security Alliance (GASA) recently launched its newly structured and simplified global crime data management system, Cognito. The system includes more than 2,000 incidents that occurred in 2004 and divides them into nine global ATM crime categories. The system provides search criteria for standardized, anonymous and generic crime, and for specific global crime.

Lipman Receives $7 Million in Orders

Lipman Electronic Engineering Ltd. received orders totaling $7 million from banks and other customers in the Turkish market. The company expects to fill the orders for its NURIT 8320 landline and NURIT 8010 wireless terminals during Q1 2005.

Payment Data Systems Files Patent Documents

Payment Data Systems Inc. filed for patent protection for technology that enables the industry's first bill payment capability using a debit card. The technology allows cardholders to access electronic balances using Secure Cash Network stored value debit or ATM cards to pay bills. Because it doesn't need to be linked to a checking or savings account, the technology can be used in solutions for "unbanked" consumers. Payment Data Systems issued Secure Cash Network a perpetual license to use the technology as part of an initial roll-out. However, other providers of debit or stored value cards and networks can also license the technology.

POSDATA Certified by Hypercom

Hypercom Corp. certified POSDATA Inc. as an authorized repair service facility. The company has repair facilities in Los Angeles, Louisville, Ky. and Gig Harbor, Wash., where it provides repair, refurbishment, deployment and encryption services.

SVPCO Provides Check Clearing to Former UNYCHA Clients

SVPCO-Check Services, a business unit of The Clearing House Payments Co., now provides check collection and settlement services to financial institutions that were previously served by the Upstate New York Clearing House Association (UNYCHA). The Clearing House provided settlement services for UNYCHA institutions under a processing contract. With the additional volume from UNYCHA, SVPCO will now process more than 3.4 billion checks annually with a value of $5 trillion.

SCM Reader Certified by MasterCard

MasterCard International certified SCM Microsystems Inc.'s e20 personal smart card reader for financial applications. The e20 reader tested successfully against the MasterCard OneSMART Chip Authentication Program's (CAP) 2004 specifications and was the first such device to achieve this milestone. The approval makes it possible for card issuers to use SCM's mobile reader with the MasterCard authentication program.

PARTNERSHIPS

Cardservice Releases Semtek's Mobile Swipe Solution

Cardservice International now offers Semtek Innovative Solutions Corp.'s Mobile Swipe solution to retail merchants through its network of sales agents nationwide. Cardservice equips mobile businesses with Semtek's turnkey Mobile Swipe mobile commerce system to enable retail merchants to accept credit card payments wirelessly via their cellular phones from mobile or remote sales locations.

Chockstone, New Edge Networks Team to Provide Gift Card Programs

New Edge Networks reached an agreement with Chockstone Inc. allowing the national gift and loyalty card provider to extend broadband networking capability and electronic card-based programs to multi-unit restaurant chains. The agreement enables restaurateurs to introduce electronic gift and loyalty card programs that offer real-time promotions at the POS. Chockstone and New Edge Networks reached this agreement through their involvement in the Retail Broadband Alliance, a forum promoting migration to broadband among retailers, restaurateurs and other merchants.

Comerxia Chooses E4X

Global e-commerce solution provider Comerxia implemented E4X Inc.'s solutions to help merchants increase international sales by displaying prices in their global shoppers' currencies. Comerxia clients are now able to offer global consumers the ability to shop and pay in their local currencies, knowing exactly what the final charge will be. At the same time, E4X guarantees the amount merchants receive in their preferred currency, eliminating foreign exchange fluctuation risks.

Commerce Bank Selects RDM

Commerce Bank partnered with RDM Corp. to introduce an end-to-end check electronification platform that encompasses accounts receivable check (ARC) and Check 21 functionality. As Commerce Bank signs on customers to its check electronification solution, the transactions will be processed through RDM's Image & Transaction Management System (ITMS).

ITMS enables the capture, processing and routing of all check items through ACH, Check 21 and image exchange processing endpoints.

Datastrip Selects Shera Technology

Shera Technology Co. Ltd., an American-run electronic manufacturing service provider in China, announced an agreement to provide manufacturing services to Datastrip Group Inc. for its DSVII family of Biometric Smart Card Terminals. Datastrip is a provider of personal identification and verification technology, including software, hardware and biometric verification devices.

Ernex, Moneris and Siva Form Alliance

Ernex, a division of Moneris Solutions, and Moneris USA formed a strategic alliance with SIVA Corp., a provider of next generation restaurant applications. SIVA integrates Ernex's loyalty and gift card functionality and Moneris USA's credit and debit interface into a POS application and other external devices that SIVA has incorporated into a turnkey solution. Components include an Ingenico wireless terminal and a self-service guest kiosk. SIVA, Ernex and Moneris USA will co-market the solution specifically to the restaurant industry.

Givex and Casio Integrate Gift Card Services

Gift and loyalty card processor Givex integrated its gift card transaction processing services with Casio's TE-7000, TE-8500 and QT-2100 POS systems.

HCS Selects RBS Lynk

Payment processor RBS Lynk signed Hospitality Control Solutions (HCS) as the newest member of OneLynk Alliance, RBS Lynk's value-added reseller program. As part of the OneLynk Alliance, HCS will offer RBS Lynk's payment processing services to customers including The Heartbreak Hotel and Dollywood.

Ruesch Partners With CardSystems

Ruesch International Inc. entered into an agreement with CardSystems Solutions to offer credit card payment processing services to its clients. Ruesch clients will now be able to leverage a single-source provider for all credit card processing needs by using CardSystems' credit card processing solutions, including traditional terminals, e-payment systems and integrated applications.

Speedpass Renews With First Data

Speedpass Network, a venture of ExxonMobil Corp., renewed its relationship with First Data Corp. for customer processing services. First Data will continue to provide the behind-the-scenes database processing that gives Speedpass Network customers flexibility to manage their accounts. First Data will also provide Speedpass Network with Web hosting services.

Touch-n-Buy to Deploy IPP Services

Touch-n-Buy allied with IPP of America Inc., an alternative financial services company that provides consumer bill payment services. The alliance enables merchants to become a destination as a bill payment location, generating foot traffic for increased revenues from the sale of prepaid products and commissions from the payment.

TPI Software Integrates With QuickBooks

TPI Software LLC's new SmartPayments software plug-in now integrates data with Intuit's QuickBooks software products including QuickBooks Pro, Premier editions and QuickBooks Enterprise Solutions.

Harland Makes Equity Investment in Mitek Systems

Mitek Systems Inc. recently entered into agreements for John H. Harland Co. to purchase up to 2,142,856 shares of Mitek's stock. Harland previously announced a partnership with Mitek to develop self-authenticating checks for preventing check fraud involving the forgery of the maker's signature. This solution incorporates Mitek's image processing, data encoding, encryption and validation software, and allows Harland to validate the authenticity of the maker's signature and the physical check document.

PDS Delivers Products to Telecommunications Industry

Payment Data Systems (PDS) signed a multi-year agreement with NII Communications Ltd., a provider of integrated telecommunications products and services for small businesses. This is the first entry for PDS into the telecommunications industry. The anticipated initial transactional value of the agreement is approximately $12 million per year.

TNB Wins Three More Credit Unions

TNB Card Services won the credit card processing business of three West Coast credit unions. The new processing clients are United Health Services Credit Union of Spokane, Wash.; GaPac Employees Federal Credit Union of Bellingham, Wash., and Horizon Credit Union of Fresno, Calif.

VECTORsgi Solutions to Automate Check Image Exchange

Thirteen major U.S. financial institutions selected VECTORsgi's VECTOR Image Exchange Solution to help them implement check image exchange. They include ABN-AMRO; Bank of America; Fifth Third Bank; First Citizens Bank; First Horizon National Corp.; Frost National Bank; Harris Bank; National City Corp.; Navy Federal Credit Union,; Popular Inc.; U.S. Bank; UMB Bank; and Union Bank of California.

ACQUISITIONS

Comdata Closes Tranvia Acquisition

Electronic payment transactions provider Comdata Corp. closed its acquisition of Tranvia Inc., a merchant processor for credit, debit, pre-paid and e-commerce activities. Tranvia is now a wholly owned subsidiary of Comdata.

Tranvia serves merchants nationwide and is a direct provider of processing services to financial institutions, ISOs and companies offering stored value payment products for educational institutions.

US Bank to Acquire Aviation Service

US Bank agreed to purchase the aviation business of Multi Service, provider of credit card services for the aviation and trucking industries. Approximately 100 Multi Service employees will become employees of the bank as part of the acquisition.

Together with US Bank Voyager Fleet Systems' capabilities, the bank now has the capacity to service fleets of any size, including automobiles, trucks and non-commercial aircraft.

TransAKT Corp. Purchases TrilliumPC Network Solutions

TransAKT Corp. entered into an agreement to purchase TrilliumPC Network Solutions Inc. Trillium specializes in providing computer and network services to small and medium-size businesses.

The company plans to open a Trillium location in Calgary, Alberta, which will also serve as TransAKT's global head office.

APPOINTMENTS

Acies Appoints Beauchamp

Acies Corp., an electronic payment, transaction processing, and electronic banking services provider to small- and medium-size businesses, appointed Marc Beauchamp its Director of Business Development. Beauchamp has more than 17 years' experience in sales, training and marketing; he is also an author, columnist and consultant to the merchant services and transaction processing industry.

In the last three years, Beauchamp has provided consulting and training for more than 2,000 bankcard sales representatives. He is also the founder of Performance Training Systems.

Blue Bamboo Expands Global Efforts, Names Director

POS terminal provider Blue Bamboo recently opened an office in London to focus on markets in Europe, the Middle East and Africa (EMEA) and appointed Ken Hansen Managing Director of the EMEA region.

Hansen, a veteran of the POS terminal industry, will oversee the regional distribution channel operation, and establish strategic alliances for the company.

He brings more than 30 years of experience serving in executive positions at Silvergum, GemWare, VeriFone Inc. and Ericsson. The EMEA office will serve as the hub for regional distributors.

Heatherington Named RewardsNOW Chairman

Loyalty program provider RewardsNOW named Gary Heatherington Chairman of the Board. Heatherington spent seven years as an executive with MasterCard and 18 years with major banks and trust companies. He most recently served as Chief Executive Officer at Cyota Inc.

Prior to that, he was President and CEO of Bank One Canada, and held executive positions at National Trust Co. and Bank of Montreal. The company plans to broaden its focus from debit and credit card programs to multi-service soltuions.

Focus Display Solutions Appoints Hawk, Weber

Focus Display Solutions Inc. named Bryan Hawk Chief Operating Officer and Harold Weber Director of Technical Support. Hawk brings 12 years of experience as Director of Engineering. Weber has 21 years' experience in military contracts and procurement.

Stone Joins COCARD

Merchant acquirer COCARD hired Harvey Stone to spearhead its national recruiting and growth objectives. Stone will recruit members and organizations to participate in COCARD's first-of-its-kind, owner-operated MLP/ISO. Stone has 14 years' experience in the payments industry.

Bottom Lines

• The Pantry Inc. will acquire D & D Oil Co. Inc., which operates 53 convenience stores under the Cowboys name, the National Association of Convenience Stores reported. Located in Alabama, Georgia and Mississippi, the stores offer BP- and Cowboys-branded gasoline.
• Clothing retailer Urban Outfitters Inc., which reported a 72% increase in profit in Q4 2004, plans to open 32 new stores in 2006 under its three brands.
• Following Kmart's merger with Sears, Roebuck and Co., Kmart said it plans to use the Sears brand on 400 of its current Kmart stores. The discount retailer will call the stores Sears Essential.