ccording to NACHA - The Electronic Payments Association, more than 4.2 billion direct deposit payments occurred in 2004, a 5.3% jump from the prior year. Direct payments also increased. NACHA reported that 3 billion direct payments occurred in 2004, a 6.7% increase from 2003.

TowerGroup Debuts European Research Service

MasterCard International-owned research and consulting firm TowerGroup recently launched a European-wide research and advisory service focused on the banking and payments arena. The new European Banking & Payments research service will include European universal banking and payments, securities and investments.

ANNOUNCEMENTS

AmbironTrustWave Is the Name of Merged Company

The combined entity formed through the merger of Ambiron LLC and TrustWave Corp. will be known as "AmbironTrustWave." The company will launch a new Web site and other corporate collateral to reflect the brand.

Baumgartner Named ETA Member of the Year

The Electronic Transactions Association (ETA) selected Jim Baumgartner, President and Chief Executive Officer of Moneris Solutions, as ETA's Member of the Year. ETA presents the award to a current member who embodies the spirit of ETA by demonstrating exemplary leadership skills while contributing time, effort and ideas that have resulted in significant contributions to the success of the association.

CyberSource Launches Security Compliance Service

CyberSource Corp., a provider of electronic payment and risk management solutions, recently launched the CyberSource PCI Compliance Service, an assessment and readiness program for e-commerce merchants seeking full compliance with Visa U.S.A. and MasterCard's Payment Card Industry Data Security Standard (PCI). CyberSource designed the service to help merchants meet the June 30, 2005 compliance deadline.

Cynergy Named on List of Fast Growing Companies

Cynergy Data ranked 69 on the "2005 Inner City 100," the Initiative for a Competitive Inner City's (ICIC) and Inc. magazine's list of the fastest growing inner city companies in America. Cynergy Data is the only credit card processor to make the list. ICIC and Inc. culled this year's list from more than 4,500 nominations in 150 cities.

Hypercom, Planet Payment Receive "Class-A" Approval

Planet Group Inc.'s Planet Payment's dynamic currency conversion (DCC) application for the Hypercom Corp. T7Plus terminal received Class-A approval from Vital Processing Services. The Hypercom T7Plus with Planet Payment's DCC application gives international cardholders the option to complete purchases in their home currency at U.S. merchant locations.

Secondary Collections Benefits transmodus.net Resellers

JUSTCHEX LLC now offers a service through its resellers that automates the collection of non-NSF (stop payment, closed account, forgery, etc.) checks. The service tracks checks that do not qualify for electronic processing through the ACH network; it also automatically initiates system-driven calls and collections letters.

Merchants are paid 100% of the recovered face value and 100% of the state fee minus a monthly fee for access, $0.75 per letter and $0.10 per call. The Web site transmodus.net provides an on-demand solutions platform that delivers verification, electronic recovery and secondary collections.

Elliott McEntee Honored

The Western Payments Alliance (WesPay) recognized Elliott McEntee, NACHA's President and CEO, for his payments industry leadership. McEntee received the Russell Fenwick Award for Outstanding Leadership to the Payments Industry. Fenwick was the first Chair of both WesPay and NACHA before his death.

PARTNERSHIPS

Bancard Processing Systems and Two Touch POS Partner

Bancard Processing Systems signed a contract to provide merchant services for Two Touch POS systems. Two Touch POS is based out of Ohio.

BillMax Allies With e-onlinedata

BillMax announced an alliance with Internet merchant account provider e-onlinedata. BillMax selected e-onlinedata as its preferred provider of real time credit card processing.

Global Payments Inc. Wins Wynn

The newest Las Vegas resort, Wynn Las Vegas, selected Global Payments Inc.'s Gaming Division's VIP LightSpeed suite of products for check cashing transactions. Under the agreement, Global Payments will provide patron and electronic check cashing services delivered through VIP LightSpeed, while also establishing VIP Preferred card accounts.

ITI and FSV Join Forces to Offer Stored-value Solutions

Information Technology Inc. (ITI), a subsidiary of Fiserv Inc., and FSV Payment Systems Inc. (FSV) teamed to offer FSV's PAYCHECK PLUS! PDQ, a stored-value payroll card solution, and FLEXGIFT, a turnkey gift card program for consumer and commercial banking customers.

Institutions that offer the PDQ program to their business customers enable them to install an e-payroll solution using payroll debit cards that employees can use immediately.

Federated Stores to Accept Discover

As the result of a new agreement, shoppers at Federated Department Stores Inc.'s 450 Macy's and Bloomingdale's stores can now pay with Discover Financial Services' Discover Network cards. The agreement follows the company's recent acquisition of PULSE EFT Association and the partnership with GE Consumer Finance in offering two new credit cards.

Keycorp and Thales Sign Agreement

Keycorp Limited and Thales signed a distribution agreement that defines the terms and conditions under which Thales will supply its products exclusively to Keycorp for distribution and installation in its target markets, mainly in Australia, New Zealand, Canada and parts of Asia. The distribution agreement's objective is to position Thales and Keycorp among the top three in the global payments market.

Banks Expand Use of National Settlement Platform in Midwest

Members of the Milwaukee Clearing House Association (MCHA) converted to The National Clearing House's (NCHA) National Settlement System. This move increases operational efficiencies by taking MCHA from a manual facsimile-based settlement process, requiring the daily support and processing by a volunteer member bank, to an automated Web-based settlement process managed daily by NCHA.

Payment Data Systems Fulfills 50,000 Order

Payment Data Systems Inc. recently received an order from Credit Payment Services Inc. for an additional 50,000 debit cards for distribution to its national consumer base. The functionality of the offering provides an immediate funding of loans rather than the customary delays associated with the automated clearing house (ACH) credit process.

RDM Selects Mitek Systems

RDM Corp. signed an original equipment manufacturer agreement with Mitek Systems Inc. for Mitek's Check 21 distributed data capture and recognition suite of software. RDM plans to incorporate Mitek's QuickStrokes Premier Banking Edition, QuickFX, and ImageScore into RDM's Image & Transaction Management System solution for corporate distributed check electronification.

Temple University to Add USA Technologies' Service

Temple University is installing USA Technologies' e-Suds computerized laundry service in 40 laundry rooms this summer. The service allows students to go online to check the availability of washers and dryers. Students use their Blackboard Transaction System cards to activate and pay for the service, and receive e-mail on their personal computers or cell phones when the laundry is complete.

ACQUISITIONS

CheckFree Acquires Accurate Software

CheckFree Corp. acquired Accurate Software, a United Kingdom-based provider of reconciliation, exception management and workflow solutions.

Accurate will become part of CheckFree's software division. CheckFree purchased all of the outstanding shares of Accurate for approximately $56 million in cash.

Whittle Transaction Group Acquired by Planet Payment

Planet Payment acquired the assets of Whittle Transaction Group, a payment technology developer. Paul Whittle, founder of Whittle Transaction Group, joined Planet Payment as Senior Vice President.

He will manage Planet Technology Services Inc. The acquisition will enable Planet Payment to facilitate the implementation and distribution of DCC processing capabilities in POS terminal devices, including the Planet Payment Hypercom T7Plus DCC application developed by Whittle Transaction Group.

APPOINTMENTS

RBS Lynk Names Vice President

Lori Breitzke joined RBS Lynk's Prepaid Products division as Vice President. Breitzke has more than 15 years' experience in the financial payments industry with terminal and software manufacturers including VeriFone Inc., First Data Corp., Envoy, MicroBilt and most recently Ingenico Corp.

As Vice President of Prepaid Products, Breitzke will develop and leverage RBS Lynk's payment processing experience to provide innovative stored-value card products to banks, community financial institutions, businesses, retailers and consumers.

CO-OP Network Names Three Vice Presidents

CO-OP Network promoted three executive staff members: Kathy Herziger to Vice President Product Development; Carol Kosaka to Vice President Systems and Support; and Connie Trudgeon to Vice President Operations.

Herziger, who has prior experience in product management and more than 20 years in the payments industry, is responsible for overall EFT product strategy and execution for the network.

Kosaka joined CO-OP Network in 1997 after working for several years on the CO-OP Network account team at eFunds Corp. She continues to oversee all network-related technology platforms.

Trudgeon, with more than 20 years of financial industry experience, oversees multiple operational areas, manages the CO-OP Network Rules and Regulations and chairs the CO-OP Network Operations Advisory Committee.

Pay By Touch Names Three New Board Members

Pay By Touch recently announced the addition of three members to its Board of Directors: Jack Penrod, Arthur J. Petrie and Roy Speer. Penrod began his investment career in 1983 with Penrod's Beach Club in Ft. Lauderdale, Fla.

He has since expanded the spring break hot spot with additional properties. Penrod has also expanded Nikki Beach with locations in France, the West Indies, Italy, Spain, Mexico and Brazil.

Petrie brings more than 45 years of real estate development and investment experience to the Board. He is Chairman of Petrie Development Co. and General Manager of Asset Development Services LLC. He served on the Board of Directors of Smart Card of America.

Speer spent 10 years as the Founder, Chairman and CEO of Home Shopping Network. Prior to joining Home Shopping Network, Speer spent seven years working with the Florida Attorney General as Special Assistant Attorney General.

AmEx Appoints Squeri as EVP, CIO

American Express Co. (AmEx) appointed Stephen Squeri to Executive Vice President, Chief Information Officer. Squeri formerly served as President of AmEx's Global Commercial Card group.

Squeri joined AmEx as a Manager in Travelers Cheque Group (TCG) in 1985 and subsequently held increasingly senior roles in TCG, Worldwide Marketing and Establishment Services. The company named him President of the Global Commercial Card group in January of 2002.

Bottom Lines

• VeriSign Payment Services released e-commerce data that shows Mother's Day-related purchases (made between April 25 and May 8, 2005) accounted for $4.4 billion in online sales, a 24% increase over the same period last year.
• Massive retailer Wal-Mart Stores Inc. is attempting to improve its public image amid an embezzling scandal involving one of its top executives. Among the activities: its first open-house for journalists held in April and plans to offer higher quality products.
• Over the next 18 months, Best Buy Co. Inc. plans to build its first stores in China, as well as open 20 - 50 Geek Squad locations. In addition to selling tech products, the Geek Squad stores will offer rapid-response technology support.