NEWS

AmEx Approves Financial Advisors Spin-Off

The Board of Directors of American Express Co. (AmEx) approved the spin-off of its financial advisors business through the distribution of 100% of the shares of its subsidiary, Ameriprise Financial Inc. (formerly American Express Financial Corp.).

Following the distribution, Ameriprise will be an independent, publicly traded company. Ameriprise's common stock has been authorized for listing on the New York Stock Exchange and is expected to trade under the symbol AMP.

TowerGroup Presents Data on Phishing

MasterCard International-owned TowerGroup believes less than 1% of fraud losses in the ATM and POS channels come from phishing-based fraud. Phishing refers to soliciting customer information through the Internet for the purpose of fraud.

TowerGroup estimates that one out of every 15,600 ATM and POS debit transactions is fraudulent, and almost all of these originate from stolen cards and card skimming.

TowerGroup believes that withdrawal and debit purchase limits on retail accounts helped to restrict total ATM and POS fraud losses to not more than $990 million in the United States in 2004.

ANNOUNCEMENTS

CheckFree Honored for Best Practices

CheckFree Corp. received the 2005 Best Practices Award for Business Intelligence Stewardship and Data Quality from The Data Warehousing Institute. The award honors companies that have demonstrated excellence in developing, deploying and maintaining business intelligence and data warehousing applications.

Evisions Seeks ISO Partnership

EduCard LLC, a division of Evisions Inc., seeks an ISO with a strong presence in Arkansas. Evisions' has installed its proprietary software application at more than 800 higher educational institutions across the United States. EduCard systems convert paper checks to an electronic transfer and load funds directly onto a student stored-value Visa-branded card. Evisions seeks an ISO that has field agents in Arkansas to promote a reward-based program for merchants to offer discounts to university cardholders.

EPI Extends Healthcare Benefits to ISOs

Electronic Payments Inc. (EPI) will offer a monthly stipend to help ISOs, their families and staffs pay for health insurance. EPI will pay up to 100% of the premium, up to $307. According to the National Coalition on Healthcare, the average cost of health insurance in 2004 was $307 per month.

To participate in EPI's Health Insurance Program, an ISO/MLS must be an active EPI office with 30 deals in their portfolio and produce 10 deals per month. EPI has agreed to pay for an unlimited number of reps, ISOs, and their family members.

To insure others, ISOs simply need to double the numbers. ISOs may choose any insurance carrier and coverage. ISOs that can't achieve the monthly minimum may contact EPI Chief Executive Officer Michael Nardy to discuss their needs.

NetBank Offers Free Services to VAPs

NetBank Payment Systems Inc. (NPS) is offering a comprehensive benefits package, including free banking services and discounted personal and business loans, for qualified Value Added Partners (VAPs).

The NPS benefits package includes banking services such as discounted auto loans, no minimum-balance fee on checking accounts, free personalized checks and free financial planning services.

Peppercoin Secures $8 Million in Funding

Peppercoin secured $8 million in funding. The financing round includes previous investor Pod Holding and a large Boston-based institutional investment advisor; several private individuals returned to participate in the round as well. Peppercoin also announced that it named Mark Friedman President and CEO.

Pricing Benchmark Study Accepting Participants

Strategic Management Partners is accepting new subscribers for the 2005 edition of its Pricing Benchmark Study. The annual study compares the processing pricing from all the major third-party processing companies. Participants contribute pricing and volume data on key, front-end authorization and back-end settlement line items.

The study uses a double-blind format so that all respondents' replies are confidential. Each subscriber will receive a report that shows the consolidated responses for both the front-end and back-end pricing data elements. The cost to subscribe is $5,000.

TNS Inc. Files for Public Offering

TNS Inc. filed a Registration Statement with the Securities and Exchange Commission for a proposed public offering of 7 million shares of common stock. TNS expects to offer 1 million shares, and selling stockholders expect to offer 6 million shares.

TransAct Technologies Receives Patent

TransAct Technologies Inc. was awarded U.S. patent no. 6,931,456 for its standard configurable Universal Serial Bus (USB) device identifier. The technology covered by the patent enables a printer to be interchanged with another printer from the same printer model line, without requiring reinstallation of the device driver or reconfiguration of the communication port by the host driver.

Transmodus Opens New Office

Transmodus' Oklahoma area business partners opened an office in Oklahoma City. The office will focus on business development, applications consulting and project management for clients in the region. The management team will work to expand local client and strategic partner relationships.

VeriFone Wins Leadership Award

VeriFone recently won the Frost & Sullivan 2005 Product Line Strategy Leadership Award in recognition of its innovative payment transaction solutions and value-added services at the POS.

Frost & Sullivan said VeriFone has delivered innovative and user-friendly products including Vx Solutions and the Omni 7000 family of multilane solutions.

PARTNERSHIPS

Cardtronics Forms Agreement With Chase

Chase will brand 246 Cardtronics Inc. ATMs in stores in New York City, Long Island, Westchester, N.Y. and in New Jersey. Under the branding agreement, Chase customers will have surcharge-free access to Cardtronics ATMs in 246 Duane Reade locations in the New York area. This is the second major branding agreement that Chase has completed with Cardtronics; the first included ATMs in 215 ExxonMobil Corp. stores in Texas.

CyberSource Offers PayPal in the United Kingdom

PayPal (Europe) Ltd. signed an agreement with CyberSource Corp.'s United Kingdom subsidiary, CyberSource Ltd. that enables CyberSource merchants in the United Kingdom to offer PayPal as an online payment method. CyberSource merchants in the United States have had this capability since 2003. PayPal has nearly 79 million accounts worldwide.

EProcessing Network Certified With NOVA

EProcessing Network LLC certified its transaction processing software with NOVA Information Systems Inc. using the NOVA viaConex platform. EProcessing Network is certified to process swiped and keyed credit card transactions, PIN debit, e-commerce with 3D Secure and MasterCard's Universal Cardholder Authentication Field and recurring transactions, including address and cardholder verification through NOVA.

EFMARK and Greater Iowa Credit Union Expand Agreement

Greater Iowa Credit Union (GICU) selected EFMARK Premium Armored to provide cash management services for 400 ATMs. In 2004, EFMARK began service to 200 GICU ATMs in Iowa. The current agreement brings the total to 400 ATMs throughout Iowa, Illinois and Missouri. EFMARK is currently recruiting for its team in Des Moines, with a focus on ATM technicians for its armored cash services business.

First Data Expands Agreement With BBVA Bancomer

First Data Corp. renewed its payment processing agreement with BBVA Bancomer. First Data will support BBVA Bancomer's retail business in Mexico and will provide payment processing services to Finanzia USA, a BBVA subsidiary. First Data has provided credit card processing services to BBVA Bancomer since 1994.

Global Payments and HealthCard Systems Renew Agreement

HealthCard Systems LLC extended its long-term relationship with Global Payments Inc. by signing a new multiyear agreement. Global Payments will provide HealthCard Systems with front and back-end transaction processing services including terminal-based and Web-based authorization for all major credit and debit cards, as well as settlement accounting, risk management and technical support.

Missoula Federal Credit Union Joins CO-OP

Montana's Missoula Federal Credit Union (MFCU) signed an agreement to become the first CO-OP Network member credit union in the "Big Sky State."

By partnering with CO-OP Network, MFCU will supply its 39,000 members with access to 20,000 surcharge-free CO-OP Network ATMs nationwide. CO-OP Network will also process all of the credit union's EFT transactions.

ISOs Choose RBS Lynk

RBS Lynk recently added eight new ISO clients. Advanced ATM Systems Inc.; ATM Cash Dispensers Inc.; ATM Cash Now; ATM Source Inc.; B&B Financial Services LLC; Express Teller Services LLC; More Than Cash Inc.; and Network ATM LLC selected RBS Lynk as their long-term ATM processing partner.

Three Banks Join The Clearing House

UBS, City National Bank and First-Citizens Bank & Trust Co. have become owners of The Clearing House Payments Co. LLC. The addition of three new owner banks is the first expansion of the company since its reorganization in July 2004. Including these new banks, there are now 22 owners of The Clearing House.

ECommLink and TransFirst Form Alliance

ECommLink entered into a service agreement with TransFirst. Under the agreement, TransFirst will provide processing for online merchant accounts. ECommLink's enterprise payment platform permits stored-value loading and disbursement options via a wireless device, ATM or computer.

Visa and ID Analytics Partner

Visa U.S.A. and ID Analytics Inc. partnered to help financial institutions better identify and stop fraudulent debit and credit card applications. Visa will provide its members a customized version of ID Analytics ID Score, a risk assessment score that determines the likelihood of whether applicants are whom they claim to be.

ACQUISITIONS

Cardtronics Purchases ATM Portfolio

Cardtronics Inc. recently acquired the ATM business of NEO Concepts Inc., a Chicago-based ISO. The portfolio includes more than 360 ATMs located primarily in BP Amoco stores and an additional 50 ATMs in independent merchant locations

First Data to Purchase Citi Merchant Services Unit

First Data signed a merchant services alliance agreement with Citibank. First Data will purchase Citibank's current U.S.-based Citi Merchant Services unit, which provides card processing services to approximately 15,000 merchant locations, and manage that business in an alliance with Citibank. First Data will provide payment-processing services, account management support and sales and management personnel.

Pipeline Data to Acquire AIRCHARGE

Pipeline Data Inc. executed an agreement to acquire World Products Inc. d.b.a. "AIRCHARGE." AIRCHARGE is the first company to deploy a cellular phone-based solution for mobile merchants to accept credit cards at the POS. Pipeline will acquire AIRCHARGE for $200,000 in cash, $525,000 in the form of a promissory note and 900,000 shares of Pipeline Data common stock. Pipeline will retain AIRCHARGE's senior management team of Rich Hoffman and Bob Wallace.

TNB Card Services Buys Credit Card Programs

TNB Card Services purchased the credit card portfolios of four credit unions in three states and will operate those card programs through its agent issuer organization. Selling their portfolios were Great Plains Federal Credit Union, SourceOne Federal Credit Union, Hereford Texas Federal Credit Union and Thiokol Ordnance Federal Credit Union.

APPOINTMENTS

CyberSource Adds Cruickshank to Board

CyberSource Corp. appointed Scott Cruickshank to its Board of Directors. Cruickshank is President and Chief Operating Officer of Qsent. Prior to Qsent, Cruickshank served as Chief Marketing officer at Paymentech LP. He was also Senior Vice President of First Data Merchant Services and a Managing Partner of Bank One Payment Services.

Diebold CFO Resigns; Interim CFO Named

Gregory T. Geswein, Senior Vice President and Chief Financial Officer of Diebold Inc. resigned to become CFO of The Reynolds and Reynolds Co. Kevin J. Krakora, Vice President and Corporate Controller, was named interim CFO until a successor is identified. Krakora was Senior Vice President and CFO at TelTek Inc. prior to joining Diebold in 2001.

UBC Hires National Sales Trainer

United Bank Card Inc. (UBC) hired Lincoln Kokaram to train its national sales force of independent agents. Kokaram has worked as a sales trainer and manager for First Data and Heartland Payment Systems and also served as Assistant Vice President of Sales with Retriever Payment Systems. UBC will offer Kokaram's services to all of its ISOs and will hold seminars nationwide.

KeyPoint Announces Management Team

Management and technology consulting firm KeyPoint LLC recently appointed its management team of Mike Love, Ken Maliga and Jeremy Drzal. All three joined KeyPoint from ReD Consulting. Love was Managing Director for ReD Consulting. Prior to that he was CEO of PaySolv Inc. Maliga was Managing Principal for Technology Consulting Services and European operations for ReD Consulting. Prior to that he was President of PaySolv Inc. Drzal was Principal Consultant and Executive Vice President for Sales and Marketing for ReD Consulting. Prior to that he held various management positions at Axalto (formerly SchlumbergerSema).

Equifax Names Smith CEO and Chairman-Elect

Equifax Inc. named Richard F. Smith CEO and Chairman-elect, succeeding Thomas F. Chapman, who is retiring from the company. Smith joins the company after 22 years with General Electric Co. Most recently, he was COO of GE Insurance Solutions. Smith led all business units for GE Insurance Solutions, including property and casualty reinsurance, commercial lines insurance and life and health reinsurance.

APS Appoints Director of Business Development

Advanced Payment Services (APS) appointed Mark Stoss to National Director of Business Development. Since 1991, Stoss served as the Regional Sales Director for CMS/Citicorp Payment Services Inc.

In his current position at APS, his responsibilities will include the recruitment and direction of the ISO channel as well as new business development.

BOTTOM LINES

• On Sept. 1, Seven-Eleven Japan Co., Japan's largest convenience store operator, offered cash for $1.2 billion worth of stock in order to buy out sister company 7-Eleven Inc. The Japanese company already owns 72.7% of its U.S. counterpart; its offer is for the remaining 27.3%.
• The Oil Price Information Service (OPIS) predicted that gas will rise to $4 per gallon on average in the near future because of Hurricane Katrina. Two integral pipelines supplying gas in the Eastern United States were shut down because of the storm.
• In a deal worth $11.9 billion, Federated Department Stores acquired May Department Stores Co. With the acquisition, Federated now has more than 1,000 stores.