Support That'sRight on the Money

It was 1921, a year after A m e r i c a nwomen had won the right to vote.While there was celebration andhope that a new viewpoint was

about to be heard, not all was joyful on thefeminine financial horizon, particularly inbanking. A c ross all major financial institu-tions, women were employed in staff posi-tions, working as tellers and bookkeepers.They deposited funds. They countedfunds. Some women even were managersand officers, but they weren't allowed tore p resent their respective employers atbusiness functions. They were not allowedto walk on the loan platform or evena c ross the main lobby of the bank.

In February of that same year, a group ofintelligent and outspoken New York Citywomen bankers got together to discusshow they could empower each other to getpast the prejudice and succeed in theirmale-dominated field. That first meetingof those six pioneering women, all re c e n t-ly appointed as officers of their re s p e c t i v ebanks, led to others. Aseed was planted. Avision was nurtured. An organization wasformed.

On May 9, 1921, a formal resolution wasadopted stating that the main purpose ofthe organization was to "encourage mutu-al helpfulness and cooperation among itsmembers with the end in view of makingthemselves increasingly valuable to theinstitutions with which they are asso-ciated" and "to help not only its mem-bers, but other women wishing to

FeaturesThe Case for Unambiguous

Disclosures in Merchant ContractsBy Patti Murphy ........................24

White Paper:Benefits of Electronic

Receipt CaptureBy Eric Thomson ........................30

Company ProfilesSecure Payment Systems ................39Information Exchange ....................45USA ePay ....................................49

NewsEureka! Strike Gold with New

GSQ Search Engine ....................6Government Tightens Credit

Card Issuing Restrictions ............18Payment Industry Leaders

Urge Adoption of Encryption Standard ..................22

Online Sales Really Clicked in 2nd Quarter ..........................28

By Cracky – How Do I Get into THIS Piggy Bank? ................42

New ProductsAn ATM with Safety in Mind ..........53A Revolution in Secure,

Online Shopping ......................53

InspirationWhen Opportunity Knocks ............63Clothes Make the Man ...

and Woman ..............................63

DepartmentsForum ............................................5FYISOs..........................................57Datebook ......................................64Resource Guide ............................66

September 9, 2002Issue 02:09:01

See FWI on Page 8

It's time for banks and other acquiring organizations to startwriting contracts in plain, readable English! It's anybody's guessas to who invented the fine-print contract, but payments compa-nies seem to have elevated the process to an art form.

See Story on Page 24

Why are Ingenico transaction terminalspopping up like spring flowers...

e v e r y w h e r e ?

It’s by DESIGN

I nge n ico tra ns a c t ion terminals are popping up all over the count r y s ide. Ease of use, secure tra ns a c t ion a u t ho r i z a t ion and investme nt pro t e c t ion are part of our de s ig n .

I nge n ico’s Elite line of tra ns a c t ion terminals share a patented and proven sof t w a re de v e l o p me nt enviro n me ntcalled Un ic a p tT M. This universal applic a t ion de v e l o p me nt tool allows the sof t w a re developer to levera ge on Un ic a p tp a y me nt applic a t ion thro u g hout the ent i re line of Elite termina l s. The benefits are: faster time - t o - ma r ket, lowercost of support, better customer servic e, and simplified sales and operator tra i n i ng. An added benefit of Un icapt isthat it enables you to run several applic a t io ns on a single Elite termina l .

T he Elite 712 EFT terminal solves the me rc h a nt’s issues of customr PIN entry privacy and count e r - s p a c e.I nstead of of f e r i ng a cumbersome swivel base, the Elite 712 is tethe red to its commu n ic a t io ns base for re l iable andsafe c u s t o mer activated tra ns a c t io ns. It is simple to use, secure, and perfo r ms credit, debit and EBT tra ns a c t io ns. TheElite 712 is also EMVco Levels I & II approved for future smart card uses. All of these de s ign features combine togive the me rc h a nt a re l ia b l e, easy to use and compact payme nt solution that is spring i ng up everywhe re.

C o ntact your local reseller or Inge n ico toda y.U . S . 1-800-252-1140 - www. i n g e n i c o - u s. c o mC a n a d a 1-800-295-8491 - www. i n g e n i c o - c a . c o m

Elite 712EFT T E R M I N A L

Advanced Payment $ervices ..........60AmericaOne Payment Systems. .......9AMPS Wireless Data ....................15Barclay Square Leasing...................8Bridgeview Payment Solutions .......27BUDGET Terminals & Repair..........16Cardservice International ..............52CardWare International ................50Certified Merchant Services...........62CoCard Marketing Group .............61Comstar Interactive .......................13Concord EFS. ...............................31Cornerstone Payment Systems .......59Creditdiscovery ............................53CrossCheck. .................................33Cynergy Data...............................65Electronic Data Resources ............19Electronic Exchange Systems .........48Electronic Payment Systems ...........51EZCheck ......................................18Fifth Third Bank ............................35Financial Technologies, Inc............34First American Payment Systems ....25First Data Merchant Services- MD..41Frontline Processing ......................63General Credit Forms ...................38Global eTelecom...........................47

GO Software ...............................28Golden Eagle Leasing ...................43Horizon Group.............................72Hypercom ....................................29Infinite Peripherals .......................20Ingenico.........................................2IRN/Partner America ....................23JR's P.O.S. Depot..........................12Lipman USA.................................67Merchant Services Inc. ..................69MSI (NJ) ......................................17North American Bancard ................7NOVA Information Systems...........42Online Data .................................56Petroleum Card Services ...............46POS Payment Systems...................26POS Portal ...................................54Retriever Payment Systems ............21Secure Pay...................................55Secure Payment Systems ...............32Tasq Technology ...........................71Tasq Technology II.........................44Teertronics....................................40United Merchant Services ..............22U.S. Alliance Merchant Services ....65VeriFone .................................36-37Vital Merchant Services.................11

INDEX TO ADVERTISERS:

Send Press Releases to: press@greensheet.com

Send your Questions, Comments and Feedback to:greensheet@greensheet.com

Issue 02:09:01 • September 9, 2002

• Neal Anderson-Payformance • Clinton Baller-PayNet Merchant Services • John Beebe-Global eTelecom • Stacy Bell-Advanced Payment Tech • Audrey Blackmon-POS Portal • Jason Burg e s s - A rtaban Solutions • Robert Carr- H e a rtland Payment Systems • Steve Christianson-TransPay Processing • Todd Davis-Nobel Electronic Transfer • Tom DellaBadia-NOVA Information Systems • Steve Eazell-Secure Payment Systems • Mike English-Ingenico • W. Ross Federg reen-CSRSI • Jon Frankel-Certified Merchant Services • Ed Fre e d m a n - Total Merchant Services • Patrick Gaines-LML Payment Systems • Alan Gitles-Landmark Merchant Solutions • Russ Goebel-Retriever • Tom Haleas-Bridgeview Payment Solutions • Larry Henry-L. Henry Enterprises • Holli Hobbs-Thales e-Transactions • Ginger Hollowell-Electronic Money • Jared Isaacman-United Bank Card • Robert H. Joyce-Alliance Payment Systems • Allen Kopelman-Nationwide Payment Systems • Lee Ladd-LADCO Leasing • Vaden Landers-Global Payments • Gary LaTulippe-Schmooze • Mitch Lau-Money Tree Serv i c e s• Joyce Leiser-Apriva • Dan Lewis-Electro-Check • Anthony Lucatuorto-First Data Merchant Services• Douglas Mack-Card Payment Systems • James Marchese-IRN Payment Systems • Paul Mart a u s - M a rtaus & Assoc.• Thomas McGarry - A M P S Wi reless Data • Craig Millington-Compass Bank • Patti Murphy-The Takoma Group • Steve Norell-US Merchant Services • Christopher O’Hara-Profitscentric • Bill Pittman-RichSolutions • Brian Rogers-PurchasingPower • Stuart Rosenbaum-U.S. Merchant Systems • Paul Sabella-Next Day Funding • Dave Siembieda-CrossCheck • Matthew Swinnert o n - M e rchant Services Direct • Jeff Thorness-ACH Direct • Scott Wa g n e r- H y p e rcom • Mike Weigel-Horizon Group

Page 5

Thanks fo r t he Memor ies

Dear Mr. Green, I am writing to inform you that, at age 70, I have retired and wouldfeel remiss if you were to continue spending money to send me TheGreen Sheet.

Thank you for many years of a most enjoyable and extremely help-ful publication – I must admit to plagiarizing many of your sales tips.Best wishes for many more healthy and productive years.

Yours truly,Marvin A. Cohen

Needs ISO/Sa le s Agen ts L is t

Do you know of any industry publication that would list allISO/agent sales offices?

David PetrySVP Sales

Electronic Data Resources

David:To the best of our knowledge, such a directory has not been pub-lished.

Our July 2002 issue of GSQ "Feet on the Street" was our mostrecent report on this sales channel. If you subscribe to The GreenSheet, you would have received the report along with the July 22issue.

Also, our GSQ is now available online at: www.greensheet.com/gsq/

Good Selling!The Green Sheet Staf f

C o n v e r t ing to ACH Tr a n s a c t i o n

We were discussing new ways to automate the proof-of-depositfunction, and a question was brought up: When a bank accepts acheck deposit, could the bank convert the check to an ACH transac-tion (given that the customer agrees)?

Any answers would be appreciated.Bill Robertson

Wausau Financial Systems

Bill:In order to get the most accurate answer to your inquiry, we went tothe Western Payments Alliance. The Green Sheet, Inc. is an associ-ate member of this association. Associate memberships are avail-able to ISOs. For more information on the Western PaymentsAlliance, please visit www.wespay.org.

Mike Gilchrist, Vice President, Member Services, Western PaymentsAlliance, says:

"If a check were to be mailed to a bank and received at either (1) alockbox location (i.e., mailed to a P.O. Box) or (2) delivered to abank "dropbox" located physically at the bank, such checks couldbe eligible for conversion to ACH debits, provided the provisions ofNACHA rules related to Accounts Receivable Entries (ARC format)are followed.

"Essentially, NACHA allows conversion of checks drawn on con-sumer bank accounts (no corporate checks at this time) to ACH deb-its if they are received in either of the aforementioned ways.Additionally, the rules require that a consumer is provided a noticeprior to the conversion that the check (either mailed or delivered) willbe converted to an electronic fund transfer.

"An example of notice could include signage at the point- of- sale orwritten disclosure at the time of the transaction, (Regulation EInterpretation, 205.3(b)(3), Authorization of one-time EFT initiatedusing MICR encoding on a check). The consumer does not need tosign a written authorization for this to take place.

"The most common scenario for this format's use today is by largeretail billers receiving high volumes of consumer checks in the mail.For other checks deposited by consumers either over the counter orthrough an ATM deposit, NACHA rules do not provide that thesemay be converted to ACH debits at this time.

"However, NACHA anticipates a pilot program becoming opera-tional during the third quarter of 2002 that would allow depositedand represented truncated check debit entries as a project ofNACHA's Electronic Check Council."

Good Selling!The Green Sheet Staf f

Dec larat i on of I ndependence

Whom do I contact to become a re g i s t e red ISO withVisa/MasterCard? How does one become an independent contrac-tor with a bank processor?

Kevin WilliamsonDayton Dynamics, Inc.

Kevin:Please visit our Web site and check out the Industry FAQs. These will

answer many of your questions. www.green-sheet.com/industryfaq.html.

Also, be sure to join the ISO Forum. This is anetworking space for sales professionals in ourindustry. www.greensheet.com/forum

Good Selling!The Green Sheet Staf f

Onl ine Ac cess

How can I get a subscription for the online ver-sion of The Green Sheet and GSQ? Can I alsohave access to the "Knowledge is Power" sec-tion of the Green Sheet Online?

Julian H. BuLehman BrothersEquity Research

Julian,No subscription is required to read The Green Sheet online. A freeregistration is required to read GSQ Online.

Knowledge is Power & the Preview Issue are available to subscribersto our print version. The subscription is FREE. Your user ID and pass-word will be sent to you automatically when you register at:www.greensheet.com/subscribe.cgi

Also, be sure to also register to read our GSQ Online. We now havethis publication available at no charge in PDF format, with in-depthreports on specific topics for the payment processing industry:www.greensheet.com/gsq/

Good Selling!The Green Sheet Staf f

How to Get 'Knowledge is Power '

What do I need to do to sign up for "Knowledge is Power?"

Donald Roberts

Donald,Please register for your free subscription to The Green Sheet. Theuser ID & password will be sent to you automatically upon registra-tion. www.greensheet.com/subscribe.cgi

Good Selling!The Green Sheet Staf f

Page 6

Have you been lookingfor information in allthe wrong places? Lookno further than Gre e n

Sheet Online( w w w. g reensheet.com), now betterthan ever, for all your financial serv-ices re s e a rch needs.

Along with searchable text issues ofThe Green Sheet that date to 1995and PDF versions from the mostc u r rent issue to a year ago, nowwhen you type in a query, you havethe option of searching past GSQsas well!

Every quarter, GSQ takes an in-depth look at complex topics thatconcern Green Sheet readers. Ournew and improved search enginegives you access to all the informa-tion covered in every issue of GSQavailable online.

S e a rch both The Green Sheet andGSQ for subjects that are key toyour re s e a rch with a variety of crite-ria to find the information you’relooking for. As an added bonus,t h e re are the direct link options tothe PDFs for each issue of both pub-l i c a t i o n s.

Eureka! Strike Gold with NewGSQ Search Engine

C a l l 1 - 8 0 0 - B A N C A R D E X T. 1 0 1 5

w w w. n a b a n c a rd . c o m

2 2 6 2 2 7 3

Get A $ 3 0 0 0 Signing Bonus f rom North American Bancard*

take up the sametype of work." TheN a t i o n a lAssociation of BankWomen was born.

Additional meet-ings were held over the next few months to discuss plans,p rograms and strategies of the organization. On Sept. 23,1921, the name of the organization was formally adoptedand a fiscal period was set. By August 1922, the fledglingassociation had grown to 59 members in 18 states. By theend of World War II, the membership numbered morethan one thousand.

Decades later, in 1989, the association changed its name toFinancial Women International (FWI) and expanded itsmission and vision to include women professionals fro mall segments of the financial services industry worldwide.

To d a y, the association has more than 2,000 members inevery financial services industry discipline. Membershipis composed of financial executives re p resenting all 50states, Bermuda, Canada, Mexico and Russia. More than

80 groups across the United States address national aswell as local industry issues. Membership is open to pro-fessionals from all sectors of the financial services indus-t r y, including commercial banks, savings and loan insti-tutions, credit unions, credit providers, consulting firms,p rocessors, acquirers andI S O s .

P retty much tracking whatis seen in the financialservices industry, member-ship is pre d o m i n a n t l yCaucasian with lowernumbers of A f r i c a n -Americans and Hispanics.Income usually fallsbetween $45,000 and$80,000. Between 70% and80% are married with chil-d ren. FWI has come a longway since its secularb e g i n n i n g s .

" F rom everything I haveread, it was more aboutsupport and how to keepwomen working, pro g ressing and helping each otherwith their daily jobs, setting up a networking kind ofthing versus going out and making public statements,"says Julie Cripe, President of FWI. "Our core is still help-ing one another. "

Cripe epitomizes that philosophy. In addition to being theP resident of this international organization, Cripe is alsothe President and COO of OmniBank, N.A. in Houston.She oversees more than 2,000 loans totaling more than$250 million for OmniBank. She also is responsible for thec reation and implementation of the bank's strategic planand serves as the bank's liaison to the community and anumber of government agencies.

In her spare time, Cripe is a guest lecturer for entre p re-neurship classes at the University of Houston, HoustonBaptist University and Texas Southern University. Shealso serves as Vice President of the Board of Directors ofthe Capital Certified Development Corporation, which isa d m i n i s t e red by the Department of Commerce. Cripeserved three years on the American Bankers A s s o c i a t i o n ' sCommunications Council and is the Banking Advisor forthe Texas Bankers Association.

With an MBA f rom the University of Houston and morethan 20 years of expertise in the banking world, Cripe is astellar example of how embracing education and oppor-tunity can make the diff e rence for a woman in financialservices. But it wasn't always that way.

"Back in the '20s, women didn't have access to the sameeducational programs, meetings and such, so there was a

Page 8

FW! from Page 1

Julie CripePresident, FWI

determination to obtain that infor-mation themselves," says Cripe."Under that guise, these women cre-ated an association for the sharing ofinformation. Information is power. "

Cripe says FWI's mission is simplyto help women in the financial serv-ices industry be successful in theirc a reers. Her definition of success:

"For some, it's a higher salary or atitle, for others it might be making aliving wage and still have time forf a m i l y. Everyone defines it diff e re n t-l y, and what we want to do is pro-vide the tools for each individual toassess that and be able to do it. Ifyou need a degree, we provide anavenue to do that. If you need tomake presentations, we offer educa-tional programs to help you practicemaking presentations, run a boardmeeting or create a marketing planf rom beginning to end."

To w a rd that mission statement ofsuccess through support, FWI off e r sa myriad of programs, including:

• Timely and relevant informationand knowledge.

• Ongoing encouragement, moralsupport and bolstered self-confi-dence.

• Career road maps, plans and goalsas well as career coaching and guid-ance.

• Professional, technical, and inter-personal skills and know-how.

• Financial savvy through soundfinancial advice, plans and habits.

• Convenient and readily availablere s o u rces at reasonable prices.

• Introductions to and re c o m m e n-dations by industry influencers andd e c i s i o n - m a k e r s .

" We have more than just a mission;we have a vision to be an associationof women helping one another ver-sus once a woman makes it, shedoesn't help others," says Cripe. "Weallow all our members to be joyfulfor each other's successes and tolearn from them. We reach out ahand and help the younger womencoming in who, frankly, may have as t ronger educational backgro u n dbut lack information about how tomanage people or run a depart-ment."

FWI's membership tends to bebetween ages 45 and 55 with anaverage of 15 years' experience infinancial services. The younger gen-eration, though, is making a stro n gimpact on FWI's mission.

"Our younger members bring newperspective on work," says Cripe."They keep us keyed into the workf o rce of today. Many of our curre n tmembers are loyal through andt h rough to their company where a sthe younger generation is coming inwith a diff e rent attitude. It's not bad,it's not good, it's simply that theydon't expect to work at a companyfor 25 years. They also don't expectthe company to take care of them forlife."

Cripe sees a great benefit in bringingyoung and old together. "Skills maybe diff e rent and you may changejobs, but you don't change the typeof problems you face," says Cripe." You still have a difficult time find-ing good workers, still have man-agers you may or may not get alongwith personally. You still may endup training your boss. The oldermembers bring that insight into theo rganization."

In addition to adjusted attitudes,Cripe sees other changes in thefemale work environment. "It's acombination of things; some of it has

to do with the types of jobs womennow hold," says Cripe. "There arem o re backroom operations, auditingand bookkeeping, which are incre d-ibly important but not viewed asi n c o m e - p roducing. Women are nowcoming in at the top, and they've notbeen there before. They're nowgoing in to the lending and manag-ing side of banking, meeting cus-tomers, getting out there. I think themovement will be quicker as educa-tion levels incre a s e . "

Guiding that movement is FWI'sB o a rd of Directors. In addition to itsP resident, Vice President, Tre a s u re rand Secre t a r y, the Board has aMembership Chair, a FoundationChair and four directors at large. A l lpositions are elected except for theFoundation Chair and MembershipC h a i r, both appointed by the sittingP resident. The Board consists ofmembers who meet quarterly in per-son and more often by teleconfer-ence and weekly e-mail communica-t i o n .

The immediate past president servesas Nominating Chair. The pre c e d i n gpast president serves as PublicRelations Chair and stays on theB o a rd for two years. All other boardmembers serve for one year, fro mSept. 1 to Aug. 31.

The election process is intere s t i n gbut lengthy. A nominating meetingis held for next year's candidates.Members submit names for theelected offices. Three referral lettersand a tape answering questions ontheir vision and creative ideas forrevenue-generating are mandatoryfor each nominee. The sitting boardmembers serve as the nominatingcommittee. They select the candi-dates, and the whole membershipthen votes.

The Board strives to achieve goalsreflective and remaining true to

Page 1 0

"We have more than just a mission; we have a vision to be anassociation of women helping one another versus once awoman makes it, she doesn't help others."

– Julie Cripe, President

From POS equipment supplies and deployment to on-line order management, Vital

has what it takes to keep business moving. Our responsive support team can get your

merchants what they need, when they need it. To find out more about Vital Merchant

Services, call 800-348-1700.

V i t a l Merchant ServicesS M.An inventory of successful solutions.

C A PABILITIES INCLUDE:

• POS Equipment & Supplies

• Deployment

• Merchant Training

• Repair & Replacement

• Web-based Order Entry via Vi t a l S y n c

• Just-in-Time Inventory M a n a g e m e n t

Q U A L I T Y E Q U I P M E N T F R O M :

• VeriFone

• Hypercom

• Lipman

• Thales

• Ingenico

• RDM

• MagTe k

what they see in themarketplace. "Wetry to set up priori-ties and strategiesfor a given yearbased on the mar-ket," says Cripe. "In

2002, we emphasized membership. We wanted to see anet increase of 20% in new members and retention of 75%in current members. We've exceeded both goals."

The Board also wanted to create more visibility. It did soby establishing a road show that traveled across A m e r i c a ." We pre m i e red it in five cities," says Cripe. "It was aimedat new members and giving women a chance to see whatwe were all about. It was very well re c e i v e d . "

Another ambitious goal was to create a new FWIFoundation project. The FWI Foundation, in essence, isthe purveyor of all educational products for the org a n i z a-tion. Through the Foundation, the association pro v i d e sn u m e rous workshops, seminars and online educationalp rograms and products for groups and individuals tos t rengthen their leadership, management and care e r-development skills. Members also gain extensive experi-ence through volunteer leadership opportunities andtraining at the group, local, state and regional levels.

That new Foundation project was a half-day seminar con-ducted by Sally Helgesen, author of "Thriving in 24/7: SixStrategies for Taming the New World of Work." This wasanother example of FWI continually bringing appro p r i a t eauthors and guest lecturers to its membership as part ofits educational and life-improvement programs.

"At this particular seminar, each attendee assesses wherethey are and what their strengths are and how they canbring those strengths to the workplace and their life," saysCripe. "Many found their talents weren't matching theirjobs. Many felt this seminar gave them a re f reshing wayto go back to their jobs and utilize their talents in a betterw a y. This seminar was designed around individual workas well as women working with each other to use theirs t rengths in new way."

FWI relies on another area of the industry – corporatesponsorship – for added strength. Prudential Financials p o n s o red the FWI road show this year. Last year, confer-ence sponsors included Robert Half International as wellas banks that provided monetary and material support.

The Graduate School of Banking at the University ofWisconsin provides scholarships to FWI for its financialservices courses. Norwich University in Northfield, Vt.,o ffers a discount for FWI members for its online MBAp rogram. Various national business journals offer in-kindsponsorships as well. FWI is always on the lookout form o re.

"If anyone would like to be an FWI sponsor, please callus," says Cripe. "We came to the game of asking for spon-sorship very late in our 80-year history. In my opinion,our association is a great place for financial vendors, butso many are already locked into other trade associationsw h e re our members are the decision-makers on theirp roduct. It is an interesting phenomenon."

O b v i o u s l y, corporate acceptance plays a big part in FWI'scontinued success. FWI puts itself out for comment on aregular basis.

" We participate in industry trade shows," says Cripe." We've participated in American Bankers A s s o c i a t i o nc o n f e rences, Independent Bankers Association confer-ences. We are always well received. CEOs of financialinstitutions are impressed with our materials, especiallythe ones who never really knew what we were all about.It's been a great way to provide visibility and cement arelationship with someone who makes the decision tosupport our association. ...

" We repeatedly get recommendation letters from CEOsand presidents who say they've seen the diff e rence par-ticipating in FWI has made. We get letters from memberstelling us the reason they got their promotion wasbecause of a presentation they made – a presentation theywould never have been able to do without the training,support and education from FWI."

Page 1 2

©2002 Comstar Intera c t i ve Corp. All r ights reserve d , Comstar Intera c t i ve Corp and the graphic icon are service marks of Comstar Intera c t i ve Corp.* C ove rage provided in 93% of the urban business population.

N ow you can offer greater wireless POS functionalityat a lower price with CHARGE A N Yw h e re.™

I t ’s more than a wireless handheld that can complete credit card tra n s a c t i o n sv i rt u a l ly any w h e r e,* a nytime in a matter of seconds. CHARGE A N Yw h e r eT M

is a complete wireless payment processing solution. Its industry - s p e c i fi c,Web-based software is prepackaged and customizabl e. So your customerscan generate real time r e p o r ts and integrate info rmation with their existings y s t e m s . And with messaging and Internet e-mail capabilities, they can stay intouch even when t h e y ’re on the move. CHARGE A N Yw h e r eT M is alsop riced ri g h t , w h i c h m a kes it affo r d a ble to more of your customers .

You might say it’s the ultimate wireless POS device for taxis and limos,in-home service technicians, d e l i ve ry services and other businesses on the move.Call us today at 1-800-211-1256 x150 or visit w w w. c o m s t a r i n t e r a c t i ve. c o mto find out more about this real functional, real affordable solution!

(actual size)

Cripe says FWI has only one malem e m b e r, "but we certainly havequite a few who we consider friendsbut are not dues-paying members.They work closely with us via spon-sorships. They attend our confer-ences with their wives or co-work-ers. We frequently have men attendour programs, especially in smallercommunities where there are not alot of educational off e r i n g s . "

FWI utilizes all the talents of itsmembership in the public aff a i r sa rena, where it focuses on workforc eissues affecting women in the finan-cial services industry. Membershave participated in Wa s h i n g t o n"visits" to discuss issues of concernto working women with key legisla-tors and administration officials.

FWI re p resentatives have testifiedb e f o re Congressional committeesand proposed legislation. They'ves p e a rheaded letter-writing cam-paigns, assisted the Federal Reservein putting together consumer infor-mation on commercial credit andwritten a bro c h u re for theDepartment of Labor describingc a reers for women in banking.

One of the most outstanding andw e l l - received programs of FWI is itsannual conference. This year it isscheduled for Sept. 21-24 inPortland, Ore. The 2002 confere n c emarks the 80th anniversary of FWI(based on its fiscal calendar) and isexpected to be attended by hun-d reds of financial services execu-tives from around the world.

"Our goal for this convention will beto bring cutting-edge information toall who attend," says Cripe. "We ' l lbring educational products, sessionswith well-known authors and pro-vide a forum for all members tolearn from each other. It is truly anall-encompassing educational con-f e re n c e . "

Education doesn't start and endwith the annual conference. FWIo ffers online classes for business-related subjects throughout the year.FWI even offers its members anonline masters or underg r a d u a t ed e g ree program.

H o w e v e r, none of FWI's impre s s i v ep rograms would work without net-working. "It is extremely importantto this organization from the stand-point that we help each other withall job-related issues," says Cripe." We have a forum on our Web sitew h e re if you post a question, 20experts will get back to you. We giveeach other guidelines to success."

Those guidelines include a job bankas well as informal communications."Every member who's lost a job orbeen laid off goes to her fellowmembers first. Most of the time,she'll have found a job before shehas to go out to the marketplace tol o o k . "

This job bank network is especiallyvaluable at a time when merg e r sand acquisitions are spre a d i n gt h roughout the financial servicesindustry like a wildfire with seriousre p e rcussions. "So many of us havebeen greatly affected," says Cripe." Twenty years ago, banks were inthe tens of thousands. Now, thatnumber is down to below 6,000."

Consolidation also means a loss inmembership for FWI. "Each time abank is acquired or merged witha n o t h e r, we lose members," saysCripe. "For the most part, about 80%of our members rely on their re s p e c-tive companies to pay their mem-bership dues. In large and smallcommunities where there may betwo or three members for each con-solidating institution, if one of thembuys the other, they're not going toallow six executives from the samecompany to remain FWI members.U n f o r t u n a t e l y, management tendsto make those decisions withoutre s e a rching and finding out whatour association is all about."

Cripe sees another aspect of merg e r sand acquisitions that affects FWI:

With integration comes tighteningof time budgets as well as monetaryc o n s t r a i n t s .

"It is about time management," saysCripe. "Without sounding sexist,women do it to themselves. Somewomen feel if they can't be fullyengaged, they can't be a part of thep roject. We encourage everyone,even if they can no longer take aleadership role or attend re g u l a rmeetings, to continue to get feed-back from their peers, even if it's justvia the Internet."

Despite these challenges, Cripe citesmany significant bre a k t h roughs inrecent years at FWI.

"One of our biggest accomplish-ments is the partnership we haveformed with other associations andthe visibility we have gained in thei n d u s t r y," Cripe says. "We have ag reat deal of expertise. We lovinglyrefer to it as a 'brain trust.' Pre t t ymuch any kind of technical or glob-al matter you want to know about,t h e re is someone in our org a n i z a t i o nwho knows it. We are a powerfulg roup of women with great knowl-e d g e . "

Another monumental accomplish-ment, in Cripe's view, is the FWIFoundation's ongoing "Women A tThe Top" survey. "This survey hasgotten extraordinary press with tele-vision and newspapers quoting itoften," says Cripe. "We surveyed thetop 100 banks in the U.S. last year tosee how many women were in tops e n i o r-level management roles. Wefound one CEO, two CFOs and 11 %of senior managers were women.We then did the top 100 communitybanks, and the percentages were vir-tually the same."

FWI repeats the survey every year,and the management perc e n t a g eshowed an increase from 13% in1999 to 16% in 2001. FWI also lookedinto where women had the bestopportunities, smaller versus larg e r,national versus community.

The results are posted on its We bsite, www. f w i f o u n d a t i o n . o rg .

Page 1 4

The flip side of accom-plishments is mistakes.Cripe sees only one majorfaux pas by FWI.

" We waited too long to askfor corporate sponsorship

– telling our story as opposed to keeping our story underwraps," she says. "We weren't good about tooting ourown horn and highlighting the expertise we have. Wehave members who for years have run companies withintegrity and provided jobs and community service, butwe haven't done a good enough job about making itknown. We are doing it now, but it takes awhile. We arecompeting for time and dollars."

Getting their message out isn't the only challenge facingF W I .

"For the industry as a whole, the biggest challenge is com-petition and low markets because of low interest rates,"says Cripe. "For women, it's dealing with two issues at thesame time – work and family. Whether it be taking care ofelderly parents, husbands or children, keeping every-thing going is diff i c u l t .

" Women tend to be the point person for just about every-

thing. They wear multiple hats at their company and intheir family. They also do a lot of community service. Ourmembers are busy people trying to keep stress from ru i n-ing their health!"

In a male-dominated industry, relieving stress may be justone step toward breaking the glass ceiling.

"In any case, it all goes back to traditions long held andh a rd to break into," says Cripe. "Many women got into thebanking industry part-time. The hours were good andthey liked the work. Men were rolling off the MBA t r a c kand were immediately going into senior-level positions.That is changing, but we still have a lot of small bankst h roughout the country that just don't have many open-i n g s .

"The median age of CEOs today is late 50s/60s. Peoplea re working longer and staying put. There also are lots offamily-owned institutions with grandfathers and sonsstill running the shop. At least the percentage of womenin senior management in the financial services industryisn't less than in other industries."

Cripe says that women are "leading the pack forAmerica's small businesses," and FWI is "providing awide forum for community improvement and economicdevelopment. We are getting women in positions theyhave traditionally never been in."

She predicts that FWI will become an even bigger influ-ence in the financial services industry and will take a larg-er role in legislation that will affect not only FWI mem-bers and their jobs but the industry as a whole.

Eighty years ago, Mina Bru e re, Secretary and Chairmanof the first program committee for FWI, wro t e :

" A confident hope that we shall grow in strength, in dignity, inclarity of purpose, in service to the field and to the women whohave entered it, may be justified if the distance which the asso -ciation has covered in these short years since our small informalbeginning, be a measure of the future . "

Thanks to the dedication and effort of thousands ofwomen like Julie Cripe, FWI surely will continue to meas-u re its merit through strength, dignity and clarity of pur-pose.

Financial Women Intern a t i o n a l

200 North Glebe Road, Suite 820Arlington, VA 22203-3728Phone: 703-807-2007Fax: 703-807-0111w w w. f w i . o rg

Page 1 6

Federal regulators are tight-ening restrictions on cre d-it card lending in an eff o r tto reduce escalating con-

sumer debt and defaults. Off i c i a l sa re targeting loans made to the sub-prime, or those made to people withpoor credit histories and lower-income markets.

Guidelines established recently bythe Federal Financial InstitutionsExamination Council also willre q u i re credit card issuers to imple-ment better accounting practicesand to set aside sufficient funds tocover loans they’ve made. The newguidelines will go into effect Sept.23, 2002.

The council is an umbrella group offive financial institution re g u l a t o r s ;the new rules were developed whenthe members compared notes andsaw that several credit card compa-

nies were having the same types ofp roblems. The rules are intended toclean up inconsistent accountingmethods, curb giving credit to con-sumers who can’t pay it back ande n s u re that the credit card compa-nies have sufficient reserves to coverthose bad loans and the fees associ-ated with them.

A c c o rding to the Wall Street Journal,some analysts say the effort to slowthe growth of credit card lending tohigh-risk consumers could nega-tively impact the economy in theshort run by slowing consumerspending. While spending has beengood for the ailing U.S. economy,the rise in personal debt woulda ffect the economy adversely in thelong run.

Some estimates put sub-prime lend-ing at 37 percent of all credit cardloans, so slowdowns in lending tothis segment would impact spend-

Page 1 8

Guarantee? CheckConversion? Check

Easy? Check

The easy way to get Check Guarantee and Check Conversion services is from the companythat excels in both—EZCheck. When you partnerwith EZCheck, you’ll enjoy some of the bestadvantages in the industry.

• Lifetime residual income• $50 Bonus per sale• Faxed applications accepted• Merchant approvals and downloads

within 24 hours• Compatible with most equipment and

platforms • No hidden fees• No surprises (no kidding)

We’ve even made getting started easy. Just call 1-800-797-5302 ext. 303, 307, or 313. Oremail michaels@EZChk.com

© 2002 EZCheck Check Services. All rights reserved.

GovernmentTightensCredit CardIssuingRestrictions

ing by a large number of Americans.

Red flags went up when severalc redit card companies ran into tro u-ble in recent months. NextCard Inc.,P rovidian, retailer Spiegel Gro u pand Capitol One are among cardissuers lending to the sub-primem a r k e t .

C redit card companies will bere q u i red to better evaluate con-sumers for credit-worthiness. Forexample, better consideration willhave to be given to candidates forc redit who have histories of re p a y-ment problems, instead of the com-panies simply issuing new cards. A sit stands, a customer behind in pay-ments might be given a new cre d i tlimit, which increases the debtrather than forcing it to be paidd o w n .

The card companies also will haveto immediately account for portions

of loans they forgive and set asidecapital reserves for uncollectablefees and finance charges.

As the credit card industry grows, sodo the risks associated with it – forissuers and consumers alike. Thei n c reased federal scrutiny stemsf rom concerns that in order to main-tain revenue gains, some credit cardcompanies have expanded theiraccounts too quickly without consis-tent accounting or enough risk man-agement safeguards in place.

As a result, consumers are not onlyreceiving the highest volume of mail

solicitations for new cards in adecade, until recently they also wereb o m b a rded with offers on theInternet. The number of card solici-tations over that last decade gre wf rom one billion a year in 1991 toabout five billion in 2001.

The credit card default rate doubledto seven percent during that sameperiod, according to an analysis of37 card portfolios done by Standard& Poor’s Corp. One credit counsel-ing office has received 32 perc e n tm o re calls so far this year inquiringabout its services than for all of 2001.

Page 2 0

AT L A N TA • CHICAGO • DALLAS • LOS ANGELES • NEW YORK

M o b i l i t yThe PP-50MS Portable Thermal PrinterUse the PP-50MS to turn your PDA into a completeportable POS terminal solution offering the following features:

• Magnetic Card Reader (MCR)

• Internal rechargeable battery

• Compatible with popular PDA’s

• Easy paper loading

• Uses standard width paper (58mm)

• Intergration software support available

The PP-50MS is an economical & flexible alternative to traditional POS terminals.

*PDAnot included

800.278.7860 www.ipcprint.com sales@ipcprint.com

Credit card companies will be required to better evaluate consumers for credit-worthiness. For example, better consideration

will have to be given to candidates for credit who have histories of repayment problems, instead of the companies

simply issuing new cards.

Superpowers of the payments industry havejoined forces to fight the obvious bad guys –c redit card fraud and identity theft – but also aless obvious one – the lack of a global standard

for implementing Triple DES (3DES) encryption technol-ogy in their payment devices.

A consortium of industry leaders – ACI Wo r l d w i d e ,Diebold Inc., Thales e-Security and VeriFone, Inc. – haspublished a plan1 that encourages the financial industryto adopt a global 3DES standard to allow for easier inte-gration and operability between each element of an end-to-end electronic payment solution: from the host soft-w a re to host security modules, ATMs and POS terminals.

Many suppliers in the payments industry are still usingsingle DES systems, although many are starting to shift to3DES. Triple DES (3DES) is a data encryption standardalgorithm that encrypts input data three times. The 3DESencryption pro c e d u re is exactly the same as single DES,but since it is repeated three times, it becomes even hard-

er to crack an encrypted message, thereby raising thelevel of fraud protection for PIN-based debit transactionsinitiated at ATMs and POS terminals.

Authorities in the cryptography community believe sin-gle DES key management systems are vulnerable to hack-ing because of rapidly advancing technology. In otherw o rds, devices still operating with a single DES systemneed a security upgrade. And without any type of globals t a n d a rd in place, the payments industry consortiumbelieves, vendors will have to develop their own imple-mentations, placing an added burden on the integrationof diff e rent systems.

"The resolution of this issue is essential for the continuedi n t e roperability of the worldwide payments networks,"said Paul Meadowcroft, head of transaction security atThales e-Security. "Thales is fully committed to the devel-opment of an industry-wide solution and its implementa-tion within the Thales transaction-security pro d u c t s . "

The consortium is creating a global specification that canbe adopted by other companies to improve intero p e r a b i l-ity between all of their systems.

“ We believe that the result of our work will provide inter-operability and key protection our customers re q u i re fortheir 3DES implementations,” said Charles Linberg, CTOof ACI Wo r l d w i d e .

The consortium intends to work with leading card associ-ations, other vendors and industry-standards org a n i z a-tions in the United States and internationally to finalizeand adopt the specification for 3DES.

Even Visa and MasterCard are encouraging the imple-mentation of an end-to-end 3DES compliant solution,f rom the point of card acceptance to the issuer host.

H o w e v e r, even 3DES encryption may not be stro n genough to protect data for much longer. The DES algo-rithm itself is becoming obsolete and will eventually be inneed of replacement. The National Institute of Standard sand Technology (NIST) is holding a competition to devel-op the Advanced Encryption Standard (AES) as a re p l a c e-ment for DES. Triple DES has been endorsed by NIST as atemporary standard to be used until the AES is finished.

1To receive a copy of the consortium’s specification and submit com-

ments, go to http://www.aciworldwide.com/3des/

Page 2 2

Payment Industry Leaders UrgeAdoption of Encryption Standard

By Patti Murphy

I've written these words hereb e f o re, but they deserve to berepeated: Payments is a liti-gious business. In re c e n t

years, we've witnessed merc h a n t ssuing card associations over pricingand acceptance policies (read: Wa l -Mart, et al v. Visa and MasterCard ) ;government agencies taking on thec a rd associations for alleged viola-tions of antitrust laws (the U.S.Justice Department v. Visa andM a s t e r C a rd); and even internecinesquabbles, such as the lawsuit filedearlier this year by Visa against FirstData Corp. over a new transactionp rocessing scheme (Green Sheet,June 10, 2002, issue 02:06:01).

But one trend that hasn't been dis-cussed – and that certainly deservesthe attention of the industry – is thes c o u rge of lawsuits filed by mer-chants whose card-acceptance privi-leges have been terminated andbank accounts have been fro z e n ,most typically because of charg e-b a c k s .

T h e re's a lesson to be learned here ,and it seems to me that this lessonhas more to do with the adequacy ofcontract disclosures than anythingelse. Banks and merchant acquire r sneed to be more upfront about therights and liabilities of merc h a n t swho contract for card services.

Henry Polmer, a partner in theWashington, D.C., offices of PiperRudnick, agrees. "Banks are in thes t ronger position here," says Polmer,an attorney who has re p re s e n t e dn u m e rous banks and paymentso rganizations. "And, in their owns e l f - i n t e rests, they need to draft con-tracts that unambiguously addre s sthe circumstances in which they canf reeze accounts. Banks should neverput themselves in the positionw h e re each party's rights are notcrystal clear. "

Disputed Chargebacks

A case in point: First Data Merc h a n tServices, two banking companiesthat process payments through FirstData, and others are being sued by asmall New York company. Theowner of the company, known asOne Solution Corp., claims she wasput out of business when bankaccounts maintained by the compa-n y, as well as her personal checkingaccount, were frozen in response toa spate of disputed charg e b a c k s .

The case, filed by Beth Garnett andOne Solution Corp., is pending inthe Supreme Court for the State ofNew York, County of Nassau. (Thisis not the highest state court in NewYork, although the name might sug-gest that it is.) Defendants, in addi-tion to First Data, include Banc OnePOS Services Corp., Paymentech, JPM o rgan Chase Bank, A m e r i c a nE x p ress and Yahoo! (the Internetservices company). Garnett's father,Miles Garnett, a self-pro c l a i m e dexpert in accounting and securitiesl a w, is pressing the case on herbehalf. He's asking for an award ofdamages in excess of $60 million.

The particulars of the lawsuitinvolve an online store f ro n t(JoeMommaComputer) establishedin 1999 by Beth Garnett thro u g hYahoo to sell computer pro d u c t s .Yahoo had arrangements with BancOne and Paymentech to acquirec a rd transactions initiated thro u g hthe Yahoo Shopping Mall, of whichJoeMommaComputer was a part.

Garnett personally guaranteed a" c l i c k - t h rough" agreement withYahoo and the resulting merc h a n tservices agreement with Banc Oneand Paymentech, arranging fortransactions to be posted to OneSolution's account at ChaseManhattan Bank (now JP M o rg a nC h a s e ) .

By Internet standards, JoeMomma

Computer seemed to fare well.Garnett claims there were more than3,500 orders in 1999 alone and thatbetween early 1999 and early 2000the company had gross sales total-ing about $2 million.

Then, it seems, the issue of charg e-backs came to a nasty head. BancOne and Paymentech terminated thep rocessing arrangement withJoeMommaComputer and re q u e s t-ed that Chase "freeze" accountsmaintained by Garnett (both for her-self and One Solution).

Without access to credit card clear-ing systems, or to her bank accounts,Garnett claims One Solution andJoeMommaComputer were eff e c-tively put out of business.

Miles Garnett is livid and has vowedto pursue this case through everyavailable legal venue. The primarylegal assertion he has made is thatChase had no right freezing theaccounts of One Solution and BethGarnett, absent a court ord e r.F reezing the accounts without acourt ord e r, the suit alleges, was ab reach of contract and placed BancOne, Paymentech and Chase in vio-lation of the laws of the state of NewYo r k .

What the courts must now decide, itseems, is whether under the circ u m-stances of this case Chase bre a c h e dits contract with Garnett by fre e z i n gher account at the request of BancOne and Paymentech.

Allegations of Racketeeringand Fraud

But the legal mudslinging gets rich-er: Miles Garnett has raised thespecter of federal anti-racketeeringstatutes. And in filings with thecourt and in telephone interviews,he has suggested that First Data andits merchant-acquiring partners areplaying fast and loose with mer-chants' money.

Page 2 4

The Case for UnambiguousDisclosures in Merchant Contracts

The lure of a low price is powerful.

Painful, if it turns out to be a

hoax. Don’t be fo oled by UFO’s,

(Unidentified Fees & Offers!) Our

successful 12 year track record of

p r ov iding quality solut ions and

p r e d ic t able results for our

merchants, agents and ISO’s will

work for you as well.

The truth IS out there. You just

have to know where to find it! Call

today and allow us to give you all

the Earthly details.

In a telephone interview, Garnettconceded the racketeering charg e smay not stick. "But that doesn'tchange the facts," he said. In legalfilings and interviews he portrayedan industry of closely affiliated com-panies that engage in a "pattern" ofracketeering in order to rip offunsuspecting merchants.

He also raised questions about FirstData's accounting practices, sug-gesting that they "leave much to bed e s i red" and that he has had discus-sions about this with "authorities."

Aspokesman for First Data declinedto comment on the lawsuit filed byGarnett and One Solution. He didconcede this is not the first time FirstData has been sued by a disgru n t l e dm e rchant. It may, however, be thefirst time the company has beensued by a tenacious lawyer whoseems committed to slinging it outin court (on behalf of his daughter)until the bitter end.

Contracts Need To Be Clear

Could this all have been avoided? Ithink so, and I believe others whoa re involved in the card acquiringbusiness would agree.

It's time for banks and other acquir-ing organizations to start writingcontracts in plain, readable English!

It's anybody's guess as to whoinvented the fine-print contract, butpayments companies seem to haveelevated the process to an art form.Many of the folks who are openingm e rchant card accounts these daysa re individuals who have gro w naccustomed to the rights accord e dthem under U.S. consumer pro t e c-tion laws.

I'm not suggesting that the cardacquiring industry wrap itself in thelanguage of consumer pro t e c t i o nregulations, but acquirers do need tobe clear about what it is expected ofa person who opens a merchant card

a c c o u n t .

If a personal guarantee means thatthe person is actually personallyliable for everything that goest h rough that account (or goesw rong), it's incumbent upon thecompany writing the contract toexplain, clearly, what that means. Ifit means the person's personal bankaccounts can be frozen, their assetsseized, they need to understandthat. The result may be that in theend fewer contracts are signed, butit also should mean fewer trips tocourt to defend business practices.

And perhaps more important, itcould save this industry the agonyof federally mandated disclosure sand the government micro - m a n a g e-ment that accompanies such man-dates.

Patti Murphy is Contributing Editor of TheG reen Sheet and President of Ta k o m aG roup. She can be reached atpmurphy@takomagroup.com.

Page 2 6

710 Quail Ridge DriveWestmont, IL 60559630.321.0117www.bridgeviewbank.com

Your Bridge to Better Merchant Processing

Advantage Bridgeview.

Need a new game plan? Join the BridgeviewPayment Solutions teamand serve up big profitswith a proven winner in the merchant processing industry.

Bridgeview PaymentSolutions is one of thelargest and fastest growing bankcardprocessors in the U.S. Our net income split program will have youscoring big profits too.

Serve up a winner withBridgeview.

Bridgeview Payment Solutions is a wholly ownedsubsidiary of Bridgeview Bank and Trust.

In addition to a sizzling hous-ing market, there’s anothera rea of the U.S. economy alsogoing strong – online re t a i l

sales. In August 2002, the U.S.Department of Commerce posted itsU.S. Census Bureau quarterly re p o r tfor retail e-commerce sales.

The report shows that online re t a i lsales totaled $10.2 billion in the sec-ond quarter 2002, a 24% increase inspending over the same period lasty e a r.

The numbers seem to show thatevery day, more purchases are beingmade online – not just in the U.S. buta round the world. In June, eBayannounced it expects to bring in $1billion in revenue in 2002.

With Internet monsters like

Amazon.com, Buy.com and Barnes& Noble offering free shippingincentives, it’s hard to resist the lureand convenience of Internet shop-ping, especially with the holidayseason just around the corner –fourth-quarter numbers in the U.S.Census report consistently havebeen the strongest and have climbedevery year.

Keep in mind the report is notadjusted for holiday or seasonal dif-f e rences. If you compare numberson a yearly basis, they don’t seem aserratic as when you look at them byq u a r t e r.

Online retail still is only a smallpiece of the pie. Total retail sales forthe second quarter of 2002 were$825.5 billion. While online salesg rew 3.7%, overall retail sales gre w

11%. In fact, the e-commerce share oftotal retail sales actually declined inthe second quarter for the first timesince the same period last year,falling to 1.2 percent from 1.3 per-cent of sales seen in the first quarter.

The report is based on a survey of11,000 retailers whose sales areweighted and benchmarked to re p-resent the 2 million retail firms inoperation.

The $10.2 billion in e-commerc esales does not include airline andconcert ticket purchases, bro k e r a g eactivities and pornography – signifi-cant contributors to online sales.

The government began tracking e-c o m m e rce sales in the fourth quarterof 1999.

Page 2 8

Online Sales Really Clicked in 2nd Quarter

By Eric Thomson

El e c t ronic Receipt Capture (ERC) is one of thosenon-payment services made possible by thenew multi-application terminals that are beingreleased by major manufacturers like

H y p e rcom. From the merchant's perspective, ERC is anew service that can justify the upgrade to these Internet-enabled devices.

This White Paper describes the background conditionsthat caused Hypercom to make ERC available to itsclients, the technology components necessary to deliverthe service and graphical descriptions of how charg e b a c ktransactions can be streamlined. There is also a brief men-tion of the cost justification of ERC for both retailers andp ro c e s s o r s .

To better understand the reasoning behind Hyperc o m ' sERC offering, I conducted a phone interview with twomembers of Hypercom's executive management: O.B.Rawls, President, North America, and Paul Whittle, SVPand General Manager, epicServices. The remainder of thisWhite Paper review will summarize the document andthe highlights of Rawls' and Whittle's comments.

First, let me clarify how ERC works. This is a paperlesssystem that securely stores and retrieves electronic cardreceipts on demand, dramatically reducing bank charg e-back losses and the costs associated with merchants' stor-age and manual retrieval of paper card re c e i p t s .

It also frees store associates from having to track down aspecific receipt associated with a chargeback – a pro c e-d u re that retailers without ERC typically will not botherwith 70% of the time. Not responding to a charg e - o ff canbe a good business decision when the cost of re t r i e v a l

within the tight response deadlines is greater than whatthe transaction was worth.

With ERC at the point-of-sale, the card payment transac-tion is streamlined in the sense that it eliminates the needto tear off the two-part receipt, hand it with a pen to thec a rdholder for signature and get back the original slip.

Instead, after the card has been swiped on the terminaland purchase details forwarded from the POS, a displayof the card receipt is shown to the cardholder on the ter-minal screen. Below the receipt are instructions to pick upthe stylist pen and sign the screen receipt as authorizationfor this purc h a s e .

A few seconds later, after the transaction has beena p p roved, the terminal prints out a single-slip re c e i p tclearly showing the cardholder's digital signature. Thereceipt is torn off by the cardholder as a walk-away copy.An electronic version of the same signed receipt, withextensive transaction details (time, date, dollar value, ter-minal number, card number, authorization code, etc.), isdigitally sealed into a transaction re c o rd that is stored ata remote computer.

When a re c e i p t - retrieval message is sent out, the corre c tdigital receipt is located and can be routed back to theoriginal terminal or any authorized user. Once received, itcan be reprinted or e-mailed/faxed to the appro p r i a t ep a r t y.

Common reasons for chargebacks are listed in one of theother White Papers 1 re f e r red to at the end of this column:

• Never received the product or service.

• Billing mistake.

• Fraudulent charge to the cardholder's account.

• Do not remember making the purc h a s e .

• Part of an attempt to resolve a customer-service issue.

Page 3 0

Author: HypercomDate: 2000Size: 7 PagesRelevance rating: Medium-HighWeb address:http://www.hypercom.com/_Documents/_Whitepapers/ERC.pdf

Benefits of Electronic Receipt Capture

1See the "Issues and Elements of Credit Card Receipt and Signature Management"

White Paper by Ingenico.

• No signature on re c e i p t .

• Consumers who purposefully take advantage of a mer-chant's cost of defending charg e b a c k s .

The ROI on ERC for many retailers is quite simple. All am e rchant needs is 30 card transactions a day and an aver-age transaction valueof $50. The other twoassumptions are thatthe terminal will havea monthly lease costof $20, and for everythousand credit cardtransactions therewill be a charg e b a c k(see chart).

This simple analysis doesn't take into account the fraude x p o s u re associated with employees having access toc redit card numbers on receipt copies or the transporta-tion and storage costs involved in the archiving and han-dling of chargeback re q u e s t s .

If the merchant is considering Electronic CheckConversion, ERC is an even more compelling pro p o s i t i o n .R e m e m b e r, ECC is the form of funds transfer where theconsumer is given back the voided check at the end of thetransaction along with a signed receipt authorizing the

ACH debit on the consumer's checking account. Thereturn rate on checks is closer to 1.5% or almost 15 timesg reater than that experienced on credit card s .

The terminal functionality needed to deliver ERC adds upto a price point of about $600 – considerably more thanmost retailers are used to spending for payment termi-

nals. But as theanalysis abovedemonstrates, thisfunctionality can payfor itself.

A c c o rding to theH y p e rcom WhiteP a p e r, terminals inits ICE2 series that areable to provide ERC

have the following feature s :

• Large, full-color, graphics-capable touchscreens withs i g n a t u re - c a p t u re capabilities.

• High-speed modem for digital receipt upload andre t r i e v a l .

Page 3 2

CALL SECURE PAYMENT SYSTEMS!

That’s right…SPS has expanded its SUITE of Value AddedServices to make you more competitive and keep your merchants happy.

ANNOUNCING OUR ENHANCED GIFT CARD PROCESSING PROGRAM!

CH E C K O U T O U R LOW, CO M PE T I T I V E P R I C I N G O N:

◆ Check Guarantee Conversion or Imaging◆ Check Verification Paper Based Non-Imaging

● GIFT CARDS (Loyalty coming soon)● ACH/EFT SERVICES● CERTIFIED SCAN RESELLER

Looking for a Sweet Deal?

payment systemsThe Consumer Risk Management Expert sS M

To learn more, call Steve Eazell toll free at 866-300-3376 or visit our website at www.SecurePaymentSystems.com

Cost of Chargeback Loss

252 Days X 30 CC Trans. = 7560 / 7.5Chargebacks@ $50 = $375 X 70% abandonment rate = $262.50

Cost of Terminal

Net Return

{

{{

$20 a month X 12 = $240 terminal lease cost

22.50 or 109% ROI

2ICE Interactive Consumer Environment. For more detail on the Hypercom ICE termi-

nals and epicServices, see the Web page listed at the end of the column referred to as"ICE Family Brochure."

• Internet connectivity and browser software .

• Software on-board and behind the terminal to pro v i d ethe digital receipt upload, capture and retrieval, delivere din a fashion that is easy for new employees to quicklygrasp and operate.

• Built-in memory and processing capabilities to digitizean exact replica of sales receipts, including the card h o l d-er signature and data fields associated with the transac-tion for easy re t r i e v a l .

• Centralized server able to securely store and accuratelyretrieve receipts from or to any authorization locationa c ross the country.

• Fast, quiet graphics-capable thermal printer that canaccurately display one's signature in a recognizable man-n e r.

Excerpts from Hypercom Executive Interview

Some of the more important information from my inter-view with O.B. Rawls and Paul Whittle:

• Hypercom provides three technology-transfer optionsfor ERC: (1) provide client with technical specifications

for internal development; (2) license ECR server softwarefor application processing on the client's POS network; (3)contract for Hypercom epicServices to perform Internetserver processing of the ECR service on a per- t e r m i n a lbasis and/or per-transaction basis.

• ERC is a service that retailers readily understand. Itsappeal increases with the frequency of chargebacks andthe size of the average transaction value.

• Retailers operate on technology cycles. Most are begin-ning to recognize that the timing and need for a POS ter-minal upgrade is upon them. The Ta rget Stores announce-ment to upgrade its POS lanes to accept smart cards wasa major milestone for the industry.

• The multi-processing nature of the integrated ERC withthe payment transaction re p resents a complex transactionsequence. It's a combination of authorizing/completingthe funds transfer while also performing three functionsin the background: (1) capturing the various transactionidentifiers: time, date, terminal ID, value, card number,authorization number, etc.; (2) creating a digital re p re s e n-tation of the exact receipt displayed and printed for thec a rdholder; (3) building the digital signature and inte-grating these three components into a tamper- p ro o f ,s e c u re message that is forwarded and stored centrally for

Page 3 4

To find out how you can sell the FTI S a l e s M a n a g e rTM (pending), call today.

8 00.523.2104 e x t.2 1 7 6or visit our website at www. f t i . t o

FTI was named by Inc Magazine as one of the nation’s fastest growing, privately held companies in 2000 and 2001.

*Due to certain restrictions the FTI SalesManager™ is only available in certain mar kets. Call to see if it is a vailable in your area.

Finally, A Dependable Sales Manager That Can Increase Your Revenue

Introducing the New

Only available from FTI, the new FTI S a l e s M a n a g e rT M utilizes leading-edge ATM technology and is an all-in-one service solution which will:

• Provide you with multiple revenue streams

• Provide you with that needed competitive edge

• Tie into an ATM giving your merchant another reason to purchase an ATM or switch processors

The FTI S a l e s M a n a g e rT M is all your merchants need to provide check cashing, prepaid cellular, prepaid long distance and credit/debit card processing services.

There is an extraordinary amount ofchange and innovation driving thepayment industry today. The unique blendof payment and value-added applications israpidly transforming the point of sale intoa new "point of profit."

And VeriFone is leading the way.Welcome to the multi-app generation!

Only Verix can deliver the flexibility,p o w e r, security and manageability necessaryto attract new customers. Plus, newapplications strengthen your currentcustomer relationships and even generateadditional sources of revenue.

Contact VeriFone today to seewhat's so extraordinary about Ve r i xand the Omni 3750.

Page 3 7

Big brain. Small footprint.

The Omni® 3 7 50 delivers the power of a 32-bit processor in a compact all-in-one terminal that you canhand to your customers.

Handful of applications.Pocket full of money.

The Verix multi-application architecture supports payment and value-added applications thatwill open up a whole new world of

revenue opportunities.

Get a firm grip on your customers.

The bold design will attract atten-tion and new customers. A n dVe r i Fo n e ’s firm commitment to qual-ity will keep your customers happy for along time.

I n t roducing the Omni 3750 f u t u re re t r i e v a l .

• Concord has integrated the digital-signature capabilities on its STAR termi-nal to streamline the new client account-setup process, called A u t o m a t e dM e rchant A p p l i c a t i o n .

• Credit card usage for ERC is a valuable service for most retailers, and imagec a p t u re and retrieval will be even more important for retailers when theybegin converting checks to electronic transfers.

• ERC is one of the first of many new value-added services that retailers willbe seeing from new multi-application terminals like Hypercom's ICE series.O n - s c reen, streaming advertising during authorization wait time re p resents anew revenue stream for the re t a i l e r, as does putting coupons on a customer'sreceipt.

• Hypercom's re s e a rch has shown that in nearly 70% of the locations that havePOS terminals, there is no personal computer present. Internet capabilities onH y p e rcom's terminals mean that these retailers can begin exploiting e-mail toplace orders or confirm delivery of merchandise to consumers who have calledin orders. Internet access is becoming a competitive necessity for more andm o re re t a i l e r s .

• There are going to be an increasing number of non-payment applicationsbeing launched because of these multi-function terminals, which will not onlyc reate value for retailers but layers of new revenue streams for banks, pro c e s-sors and ISOs.

Web Sites for More Information on Electronic Receipt Capture

www.hypercom.com/_Documents/_Products/IceFamilybrochure.pdf H y p e rcom's explanation of its Web-based epicServices offering behind its ICE Web-enabled term i n a l s .

www.atpos.com/PDFDataSheets/Paymentswhitepaper112101.pdf Page 7 of this document contains a detailed ROI analysis on ERC for a large d e p a rtment store chain.

www.concordefs.com/retailers/top/univ_term_launch.htmC o n c o rd STAR terminal with ERC capability.

www.tax.state.ny.us/evta/guidelines_credit_chargebacks_2.htmState of New York guidelines for Vi s a / M a s t e r C a rd chargeback processing. Other links to American Express chargeback pro c e d u res can be found at this site.

www.ivicheckmate.com/PDF/smwp.pdfAnother terminal manufacturer's White Paper on ERC. It has more details on cost justification.

Eric Thomson is Executive Vice President of Profit Source Advisors. He can be reached atetprosc@attbi.com.

3See Web link at the end of the column describing how the STAR terminal incorporates ERC with other capabilities on

this multi-application terminal.

EVER WISH YOU COULD OFFER

THE BEST TERMINALS A N D THE BEST SERV I C E ?

WISH GRANTED.

We just made your job a whole lot easier.

T h a t ’s because GCF is now an authorized

reseller of Talento terminals. In fact, we’re

authorized to work on any warranty re p a i r s

for these terminals — at no cost to you or

your customer.

So now, when you want to offer your customers

the best terminals, supplies a n d s e rvice, you only

have to call one place — GCF.

It doesn’t get any easier than that.

General Credit Form s

WHERE FORMS FOLLOW FUNCTION

The Independent Source For Al l Your Merchant Needs.

For more information, cal l Te resa or Sandy at 1(888)GCF-NEWS or vis it w w w. g c f i n c . c o m

Alot has been going on overat Secure PaymentSystems (SPS) since welast wrote about them. SPS

has been doing some critical invest-ing and is making strides towardbeing a substantial player in theworld of value-added services.

Since we last wrote about SecurePayment Systems ("Starting OverCan Be Fun," 01:10:02 issue) and itsunique, single-source product off e r-ing of checks and gift cards, it wouldappear that it has been putting someserious points on the score b o a rd .

SPS now offers the largest suite ofterminals certified to provide a sin-gle source of check conversion andgift cards to peacefully coexist witha credit/debit application. It hascompleted its feature-rich gift cardand check conversion (with andwithout imaging) certifications onthe Nurit terminal family, includingthe 2085, 2085+, 3000, 3020 and soonto be released 3010, through itsframe relay hookup direct to U.S.Wi re l e s s / S y n a p s e .

" We are pleased that an importantservice provider like SPS has devel-oped such desirable value-addedservice offerings for our terminalplatform," said Jim Poulson,Executive Vice President of Sales forLipman USA.

A d d i t i o n a l l y, SPS has certified thesame applications on the ThalesTalento as a Vital-integrated applica-tion. That makes its applicationsavailable on the Lipman terminals,the Thales Talento and the Tr a n zl i n e .

Leaving no stone unturned, SPSa l ready is working on a 90-dayrelease for a new set of e-check andgift card certifications on the Ve r i x -based Omni 3300. No one else cansay that they offer both check con-version and gift cards on such awide array of terminal platforms.

Notwithstanding the above, anddemonstrating ongoing technicalinnovation, SPS also has developedits own proprietary set of Wi n d o w sPC programs designed specificallyas "plug and play" electronic checkconversion and gift card pro c e s s i n gmodules for retailers employingWindows-based PC point-of-sales y s t e m s .

Not only is SPS on the right track, insome cases it might be laying thetrack itself!

You may not be aware that FirstHawaiian Bank and its Merc h a n tServices Division was one of theoriginal NACHA pilots for off e r i n ge l e c t ronic check conversion dire c t l yto its merchant customers.

Well, as of this date, SPS is pleasedto announce that First HawaiianBank has converted its entire mer-chant electronic check conversionm e rchant portfolio over to SecurePayment Systems for all fro n t - e n dterminal driving, authorization pro-cessing and customer service, plusthe critical back-end daily ACH set-tlement and merc h a n t - f u n d i n gpieces that SPS is proving to be par-ticularly adept at performing.

And SPS is doing all of this withoutchanging its focus on providing out-

Secure PaymentSystems

ISO contact:Steve EazellDirector, National Sales and MarketingPhone: 866-300-3376Fax: 707-836-1979E-mail: seazell@securepaymentsystems.com

Company address:9750 Miramar Road, Suite 200San Diego, CA 92126Web site: www.securepaymentsystems.com

ISO benefits:• Integrated check conversion and gift card program • Low-cost gift card program processor (orders as few

as 10 cards)• No bankcard portfolio to compete with • $36,000 individual check limit (paper and electronic

conversion)• STAR CHEK provider for verification services• Supports check reader or imager• Merchant kept whole on check conversion with guar-

antee (merchant paid in 48 hours, stays paid)• Multiple terminal support for check services

(VeriFone, Hypercom, Ingenico, Thales,Nurit/Lipman – including wireless 3010)

• Standard 14-day claims payment (on paper checkguarantee)

• 30-claim submission window (no need to submitcheck after first presentment)

• 24/7/365 technical, consumer affairs and operatorcall center support

• Highest percentage of claims paid• No claim rejections for not writing miscellaneous

data on the check

It's about the Value-addedServices, Silly

Page 3 9

standing customer service, risk-management systems andsupport to merchants and sales agents. SPS notes, howev-e r, that the evolution of success has many facets.

For instance, SPS has signed an agreement for re a l - t i m eaccess to the STA R CHEK verification service to enhanceSPS' already sophisticated internal risk managementmodeling functions. For verification customers, SPS willmake this database access point available as a new plat-form option.

"Once again, this points to our ongoing commitment tos p read the playing field and offer a range of choices thatindividually or collectively make the most sense for ourcustomers and sales agents," says Steve Eazell, Dire c t o r,National Sales and Marketing, for SPS. "We are delightedto be able to provide this valuable enhancement to extendour suite of service offerings."

Lin Fellerman, Secure Payment Systems' founder, CEOand President, says, "Though we wanted to be able todeliver some exciting news about our expected participa-tion in a rather large program of national proportion, atthis stage we feel like we are several weeks early in beingable to talk about it without breaking confidentiality.

"Nevertheless, the mystery will be unveiled soon, and it is

going to be an honor for us to be able to fully showcaseour suite of services."

All of these enhancements have come in the last 11months. Last year marked the five-year anniversary ofS e c u re Payment Systems, and Fellerman believed that thecompany had reached a milestone and a critical point inits stage of development.

Fellerman would be the first to tell you that this was notas easy as he had envisioned. He linked his risk-manage-ment expertise together with unusual attention to cus-tomer service detail to build a portfolio that continues toexperience less than 6% annual attrition.

M o re o v e r, he has successfully created a solid sales forc ewith ISOs and acquirer relationships that he nurture dt h roughout the company's early growth curve. And whileFellerman has flying under the radar, Secure PaymentSystems continues to expand and grow at a 40% annualclip.

This little company has grown to be a force in the checkservices community and is creating a serious stir in thegift card realm as well.

"My take on merchant attrition is a little left of center," hesays. "I sense that my competitors believe and behave likeit is OK to lose customers, that they in fact expect to losec u s t o m e r s .

"It is that attitude that helps perpetuate what I believe tobe an industry average that probably hovers between 20and 24 percent annual erosion. And it is that thoughtp rocess that makes sales agents want to work with SPS."

He adds, "Quite simply, we practice what we preach, andthat philosophy has to resonate throughout the staff .Everyone simply has to want to save every account as if itis their last. Otherwise, it soon will be."

Fellerman decided that to move his vision down thetrack, Secure Payment Systems was going to be a majorplayer in the world of value-added services. He decidedto utilize the expansive capacity of SPS' transaction-pro-cessing capabilities by developing a unique and feature -rich stored-value gift card pro g r a m .

He also made a critical decision to write the code to allowplug-and-play integration with his proprietary electro n i ccheck conversion program. Now the gift card pro g r a mcould be included in every ECC terminal download andvice versa at the ISO's discre t i o n .

"And we're not stopping there," he said. "Another majorenhancement will be released at the end of the fourthq u a r t e r. "

Fellerman also realized that he needed to break into the

Page 4 0

spotlight of the merchant acquiringsales channel. He knew that he hadto find someone to help him dramat-ically expand the ISO segment of thebusiness and that he needed a savvy,industry veteran who knew theplayers and was respected by themas well.

He went after and captured SteveEazell, an experienced executive inthe payments industry who hadgenerated a great deal of success insimilar ventures, such asC rossCheck, eFunds and PayPoint,by building and helping to managethe growth of national ISO pro-grams.

Steve has helped Lin boost SPS'p resence in the merchant acquiringworld through advertising and acampaign aimed at contacting keyplayers in the industry.

Overall, the results associated withthese decisions are paying substan-tial dividends.

Page 4 2

Power your sales organization with the NOVA Ne t w o rk. Call 800-226-9332, ext. 1153 or 1158.

> Aggressive Buy Rates

> Transaction Fee Income> No Monthly Minimum > Mid/Non-Qualified Surcharge Income

> Statement Fee Income> No Liability /R i s k

> Unlimited Income Potential> Extensive Real-time Online Reporting

> Gift Card Program – buy rates on set-up fee, card fee, monthly fee, and transaction fee

> Equipment Purchase Program...and much more!

At tract the highest qu a l i ty merchants wh en you repre s ent your salesor ga n i z a ti on along with NOVA In form a ti on Sys tems – powered by the NOVA Net work ,ra ted #1 by Ma s ter Ca rd as the most rel i a ble pay-m ent processing net work in the indu s try ! N OVA’s state - of - t h e - a rtre s o u rces and gen erous revenue opportu n i ties make it easy for you tobuild an unlimited income stre a m . Ta ke a look at the ben efits that wecan of fer yo u .

Join the leader!

By Cracky – How Do I Get intoTHIS Piggy Bank?

ATM owners, beware. As the machines keep getting smaller andsmaller – great for locations where space is at a premium – theyalso get easier to steal. If what happened in Melbourne,Australia, recently is any indicator of how far some people will

go for a little extra cash, you might want to consider investing in somes t u rdy cable locks.

A c c o rding to a report on Yahoo! News a man forklifted an ATM during abusy rush hour directly from its location in a bustling shopping centerl o b b y.

Several people apparently were curious enough to ask him what he wasdoing; the man told them he was removing the ATM for servicing. Hewrapped it in black plastic and drove off – slowly – down the street in theforklift, which caused even more traffic congestion.

The man loaded his ill-gotten booty onto another vehicle and was able toescape. Melbourne police are still looking for him and are asking assis-tance from any motorists who may have been stuck in traffic behind theforklift.

The latest, greatest, and best solutions

to meet your specific needs.

Providing You...

(800) 827-8297 www.tasq.com www.thales-e-trans.com

For more information call:

Available from:

The relevance of JonathanFoster's work was made alittle too evident for hisliking on Sept. 11, 2001.

He looked out toward Manhattanf rom an office in New Jersey andwatched as the World Trade Centerexploded and crumbled.

His son worked for an investmentfirm whose offices were on the 93rdfloor of one of the Twin To w e r s .Sixty-five of the firm's employeesw e re among those who lost theirlives that day.

Foster's son was not one of them –he was attending an off-site meetingthat morning. Even knowing his sonwas not there didn't stop Fosterf rom marveling at the magnitude ofwhat he was watching.

"It sure brought it home for me," hesaid.

Foster has been in the business ofevaluating risks and identifyingweak spots in security systems for20 years. The 9/11 terrorist attacksw e re a horrible illustration of howbad security lapses can get.

F o r t u n a t e l y, though, the kinds ofrisk evaluation that Foster's compa-n y, Information Exchange, dealswith don't usually have the samedevastating consequences.

As Foster said, though, no matterhow large or small they are, busi-nesses take risks every day. He andpartner Peter Trombley help clientsdecide which risks are acceptableand which are not.

" We ' re evaluators. We evaluate andmake decisions on a company's cur-rent environment," Foster said. "Weevaluate practices, identify anddefine the changes in policies andp ro c e d u res that need to be made.

" We do gap analysis and then closethe gaps."

The ultimate goal is two-fold: tohelp companies be able to betterdefine gaps in their own systems,and to guide them toward industryand governmental compliance stan-d a rds, for which there is no room fore r ro r.

This is true whether it's a company'scomputer network or payment-pro-cessing systems.

Information is the gold standard intoday's global marketplace, so pro-tecting its information assets shouldbe a company's primary concern.Reliance on networks for businessand financial transactions, as well asfor communication, means that pre-venting down time for emerg e n c i e sof any kind is critical.

Conducting business on the We b ,undependable power supplies and,of course, terrorism have incre a s e dthe need for businesses to take care-ful measures to prevent loss of data,revenue and reputation. Businessesof all types need to have contin-gency plans in place for disasterrecovery and continuity.

R e c e n t l y, Foster and Trombley haveseen a definite spike in the intere s tgenerated by the services they off e rc l i e n t s .

InformationExchange, Inc.

ISO contact:Jonathan FosterPhone: 973-734-0822E-mail: jfoster@goinfox.com

Company address:62 Main StreetBox 173Madison, NJ 07940Phone: 973-734-0822Web site: www.goinfox.com

ISO benefits:• Security review allows ISOs to become compliant

Encryption Service Organizations for PINInjection of POS devices.

• Will work with you and your clients to achievecredit and debit card network compliancerequirements.

• Reduces risk of financial and reputation loss.• Creates safer networks for merchant and con-

sumer protection.• 35 years of combined experience in business

and technology security.

Evaluating the Situation toEliminate the Risk

Page 4 5

"At ETA in Orlando, we found security concerns were ahigher priority with many of the firms we met," saidTro m b l e y. "Permanent players will want to take steps toe n s u re their viability.

" To d a y, this includes not only establishing solid financialfoundation and sales efforts, but protecting their informa-tion assets and ensuring their ability to meet unexpectedbusiness interru p t i o n s . "

To g e t h e r, Foster and Trombley have 35 years' experiencein business and technology systems security.

Foster started Information Exchange in 1994 as a manage-ment consulting firm, assisting and advising clients' busi-ness operations and technology risks. He has a variedb a c k g round that includes commercial banking.

Trombley joined the firm three years ago, coming from ab a c k g round of management consulting primarily in thefinancial services industry.

They have clients throughout the U.S. – mostly financialinstitutions, such as banks, credit unions, credit and debita c q u i rers and ISOs. They made a conscious decision tokeep their firm small to be available and responsive totheir clients. Foster said their combined experience allows

them to provide superior service.

" T h e re are a few other firms that do what we do, but we'rethe best," he said. "With our backgrounds in business andt e c h n o l o g y, with our skill set, we're able to offer a prag-matic appro a c h .

" We ' re independent. When we go in to work with a client,we bring a fresh perspective. Very often the client is tooclose to the work and is not able to see what needs to bedone. Self-audits are usually not in a business' best inter-e s t s . "

The partners at Information Exchange use a sensiblea p p roach in helping their clients decide which risks areacceptable and which are not. The increasing need forsecurity in protecting information – from all types of per-sonal data to all levels of corporate re c o rds – has thefinancial services industry scrambling to develop stan-d a rds and systems on its own.

Information Exchange can make the process of re a c h i n gs t a n d a rdization, whether self-imposed or regulated bygovernment agencies, much simpler.

" T h e re is a growing concern in the financial servicesindustry about wanting to regulate themselves so thegovernment won't, like they did with banks," Tro m b l e ysaid. "The industry is saying we will tighten things upo u r s e l v e s . "

In the long run, any type of business will benefit from am o re secure system – or one that's more efficient andt h o rough. Information Exchange can set up stringenttechnology safeguards as well as offer suggestions fori m p roving workflow in everyday operations and pre p a r-ing for emergency situations when disasters happen.

Meeting due diligence re q u i rements and stre n g t h e n i n gthe ability to survive unexpected business interru p t i o n swill reduce financial risks and maintain the business'good re p u t a t i o n .

Foster and Trombley are certified to provide solutions tohelp their clients comply with industry security stan-d a rds as well as those imposed by the government. Theycan help certify equipment and networks by conductingANSI X9 and TG-3 security reviews for PIN injections;Visa Cardholder Information Security Program (CISP)security reviews; First Data PIN encryption reviews; andN A C H A compliance re v i e w s .

They also will help companies reach compliance re g u l a-tions of the Patriot Act, the Federal Financial InstitutionsExamination Council (FFIEC), the Gramm-Leach-BlileyAct (GLBA) and the Health Insurance Portability andAccountability Act (HIPAA).

In 2001, the STAR/MAC, NYCE and Pulse networks

Page 4 6

decided jointly to re q u i re independ-ent reviews of PIN security and KEYmanagement for firms handlingtheir own PIN injection into POSdevices or AT M s .

First Data Corp. has issued its ownguidelines for safely pro c e s s i n gPIN-based debit transactions; Vi s aalso has specified compliance re g u-lations for credit card transactionst h rough its CISP. MasterCardre q u i rements hold the acquire rresponsible for ensuring that down-s t ream clients have taken appro p r i-ate measures to secure data.

Information Exchange will conductreviews and help companies re a c hverification compliance for allre q u i rements. It is certified to com-plete the reviews and pre p a re there q u i red TG-3 report for the net-works, providing evidence of com-p l i a n c e .

When they work with ISOs, thesecurity gaps are checked at the

p rocessor end. Foster and Tro m b l e yreview the existing security pro c e s s-es in place. Clients will contact themto perform audits or suggesti m p rovements in areas like encryp-tion or network fire w a l l s .

"This is about protecting the con-s u m e r. We look at it from the pro c e s-sor's shop and see how they encrypttheir transaction information andhow old their pro c e d u res are , "Foster said.

" We follow the transaction all theway through the process and makereports and diagrams to illustrate."

For payment processing, thisincludes injecting encryption keysfor PIN pads before the terminalsa re installed to reduce the larg eamounts of fraud in PIN debit trans-actions. For networks, the solutionincludes installing fire w a l l s .

"It's a big risk to ignore safety issuesconcerning the Internet. When you

i g n o re your network security, yourun the risk of your data beingexposed to hackers – as well as toanyone connected to the Internet,"Foster said.

Foster and Trombley both will go forthe initial review in most cases, andthey usually work together in con-s t ructing a new set of safety nets.

With just the two of them, the clientsget the same players from start tof i n i s h .

Foster and Trombley have workedwith large consulting firms andpride themselves on the skills, expe-rience and personal attention they'reable to provide their clients.

They really get to know the clientsand the nature of the business top rovide the best security and risksolutions. Clients experience a mini-mum of staff downtime and mini-mum interruptions in workflow.

Page 4 8

It makes sense that a companyspecializing in providing anInternet gateway for business-es, getting its products and

services online and available all overthe world, was started by a manwho traveled halfway around theworld to get to the United States.

A c i rcuitous path led Alex Gore t s k yf rom Eastern Europe to SouthernCalifornia in the late 1970s. It tookalmost a year and stops in severalcountries. Goretsky was 12 years oldin 1977 when he and his parents leftUkraine, which was at that time partof the Soviet Union, bound for theU S A via Israel, Poland, Austria andI t a l y, where they spent six monthswaiting for their visas.

Even though Alex’s brother Benwasn’t even born until after the fam-ily had settled in Los Angeles, thetwo are now partners and co-CEOsof USA e P a y, the gateway portalp rovider that is one of several com-panies run by the brothers’ corpora-tion, GorCorp, Inc. Because of thevariety of services off e red by theother businesses within the corpora-tion, USA ePay customers benefitwhen they take advantage of shop-ping cart setup or Web-hosting serv-i c e s .

For merchants wondering how toget their products from factory tothe Internet and into the hands oftheir customers, USA ePay Gatewaymakes the road to getting merc h a n-dise into the customer’s hands astraight course, full speed ahead.

Alex’s background in finance ledhim to work in banking and themortgage industry. His career pathtook a diff e rent direction, and heended up working in the credit cardb u s i n e s s .

As co-CEOs, Goretsky and his bro t h-er work together in the companyheadquarters just off Wi l s h i reB o u l e v a rd. USAePay was formed in1998. Ben had just finished highschool and was set to begin as af reshman in college. Alex said hegave Ben a summer job that year:"He really picked things up quickly.He’s just graduated from Cal StateNorthridge with a degree in com-puter science and is now at the com-pany full-time."

With 14 full- and part-time staffmembers, USA ePay works withbusinesses of all types and sizes allover the country and with a networkof merchant service banks and ISOs,who assign merchant accounts.G o retsky said they’re actively look-ing for ISOs, MSPs and banks whowant to pitch their gateway product.

They get ISOs re f e r red to them on aregular basis by Humboldt Bank, hesaid. Registered ISOs get access toU S A ePay’s Reseller Center, thro u g hwhich they can track their USA e P a ym e rchant accounts and view re p o r t sand stats. New merchants are sub-mitted and processed quickly – newgateway accounts are approved thesame day. ISOs and their merc h a n t salso have access to aro u n d - t h e - c l o c ktechnical support.

USA ePay

ISO contacts:Alex GoretskyBen GoretskyPhone: 866-USA-EPAY (872-3729)E-mails: alex@usaepay.comben@usaepay.com

Company address:718 S. Sycamore Ave.Los Angeles, CA 90036Phone: 866-USA-EPAY (872-3729)Web site: www.usaepay.com

ISO benefits:• Pricing structure includes a low one-time set-up

fee, low monthly gateway fee and no hiddenpercentages or transaction fees.

• 24/7 tech support.• ECI-certified real-time card payment processing

gateway that can integrate with any shoppingcart or hosting company, and can be used byany type of business or merchant.

• Gateway works for any type or size of businessand enterprise.

• A complete library of scripts to download fromWeb site for compatibility.

• Gateway security based on keys for two-secondreplacements.

A Smooth Journey toE-commerce Success

Page 4 9

"The diff e rence in gateway providers lies in the feature sthat are included within the gateway," Goretsky said."Any part of the business we can possibly help them with,we will. The merchant has a product to sell. We don’t setup accounts or qualify them with banks. Which bank theyuse, what they sell, the number of transactions and thevolume of sales are irrelevant to us.

" We provide all the necessary e-commerce tools for ourm e rchants. We offer recurring billing – for example, for acompany who has a monthly billing cycle for a number ofregular customers or who adds customers fre q u e n t l y. Wegenerate account reports in easy-to-understand visualformats, like pie charts and graphs.

" We ’ re also very involved in helping develop their e-com-m e rce toolkits, either directly or through one of our third -party developers."

Supporting any type of business enterprise, the USA e P a yc a rd payment processing gateway offers each of its clientsthe latest in fraud-protection technology, a range of fre edeveloper toolkits and free 24-hour tech support.

The gateway’s simple functions, which are performed onthe "Virtual Terminal," let merchants run through sales,c redits, voids and pre- and post-authorizations clearly.

The "Quick Sale Form" function within the terminalenables transaction processing with details like saledescription, billing and shipping addresses and multiplee-mail receipts. All information is stored on the Vi r t u a lTerminal Database for easy re t r i e v a l .

The USA ePay Gateway portal is a leased-line direct con-nection to Visa and MasterCard processors. It is E-C o m m e rce Indicator (ECI) certified, which both cardbrands re q u i re.

"The verification needs to done through an ECI gateway,whether it’s an online merchant or a MO/TO merc h a n t .Our system looks for special e-indicators that the transac-tion came from the Internet," Goretsky said.

U S A ePay’s Gateway includes the greatest level of securi-ty and state-of-the-art fraud control. All transactions ru nt h rough the secure socket layer in real time.

"Fraud Stopper" allows merchants to block out question-able transactions and customers through an advanced,easy-to-use control panel with criteria like country,amount type, AVS and CVV2 response or IP/Host block-i n g .

M e rchants will appreciate USAePay’s complete re p o r t i n gcapabilities. The "Batch Manager" function lets merc h a n t sview complete sales details like Web site origin, customerbilling and sales associate information.

All reports and stats can be sorted on chronological infor-mation, are viewable onscreen in charts and graphs andcan be e-mailed or downloaded into formats like Excel,Access, Quicken or Quickbooks.

These features make conducting e-commerce simple forbusinesses, but there are benefits for ISOs in re c o m m e n d-ing the service to their accounts, too. Flat fees for startupand monthly gateway use are charged through the MSP."ISOs and MSPs have flexibility in setting the fees theyc h a rge their merchants for the USA ePay Gateway, "G o retsky said.

U S A ePay re q u i res a one-time initial set-up fee for mer-chants, based on the number of accounts the MSP sets upper month. "If the MSP does 10 merchant accounts or lessa month, the set-up fee is $99.95 for each account. For 25or more merchant accounts, that drops to $49.95. Themonthly gateway fee is $7.50 per account."

Simply put, USA ePay wants to be your gateway to suc-cessful e-commerce access. To w a rd that goal, its willing-ness to work with merchants and tailor a service with fea-t u res that will best suit their needs and goals sets it apartf rom the competition.

As Goretsky said, "We can be very flexible with what wep ro v i d e . "

Page 5 0

We're looking for people who are going places.You have the opportunity to either follow the leader... or be the leader. That's the Cardservice difference. We offer high approval rates, competitive residuals, sales support, and regional management supportto help train and grow your business. We also offer fraud and loss prevention, trade show co-op services, and Myagentoffice.com™

to track all your leads, sales and income plus winning merchant benefits such as Mymerchantoffice.com™.

Call today! (877) 203-6823

C a rd s e rvice, know where you’re going.

cardservice.com © 2002 Cardservice International, Inc.

We can tell you what’saround the bend.

We have been there. We know the way.

We can tell you what’saround the bend.

We have been there. We know the way.

Page 5 3

An ATM with Safetyin MindMBC1031 ATMMIDWEST BANCARD CORP.

Employees who must turn their backs to openan ATM to load cash, add printer paper or printreports often are vulnerable to ro b b e r y. TheATM door is wide open, exposing the cash

inside, and they can't see someone approaching.

Midwest Bancard Corporation, a Chicago-based ISO thatm a n u f a c t u res, sells and leases and deploys ATMs, off e r sa solution: the MBC1031 ATM (patent pending), an AT Mdesigned to install inside of a wall so that loading can bedone from the rear of the ATM, on the other side of thewall. Employees such as check cashing or gas stationattendants don't have to leave the safety of their enviro n-ment and expose themselves on the street or in the storewith their backs turned.

The ATM's rear door opens to a screen and a keypadinside where employees can print reports and review anye r ror messages. To add cash or change paper, the AT Mhas a re a r-loading slide-out cash cassette and a re a r- l o a d-ing slide-out printer.

The machine is stainless steal and compact – it measure s22.5 inches in height and 19.5 inches in width and has abuilt-in frame for installation in a small wall space.

The ATM also is available in a weatherproof model thatallows you to place ATMs through the exterior wall of as t o re or office building, creating a teller-less line for bankc a rd and EBT services.

C o n c o rd EFS, EFT LOGIX and Core Data have certifiedthe MBC1031. Midwest Bancard is seeking independentdistributors for its ATM hard w a re and optional pro c e s s-ing services.

Midwest Bancard Corp.

1512 N. Fremont, Suite 103Chicago, IL 606228 8 8 - 2 7 2 - 4 3 2 5w w w. m i d w e s t b a n c a rd . c o m

A Revolution in Secure,Online Shopping eBusiness Secure & GuaranteedONCALDERA CORP.

Say you've been doing some online shopping at aparticular merchant's Web site. You decide tomake a purchase, so you proceed to checkout top a y. Instead of choosing a regular credit card

like Visa or MasterCard as your method of payment,w h e re you'll be re q u i red to enter personal informationsuch as full name, billing address, account number andexpiration date, you select the EBSG option, the onew h e re you insert your credit card or ATM/debit card intoyour CD-ROM.

The only personal information you are re q u i red to enteris a PIN. The rest is sent to the merchant directly fro myour bank.

This new type of payment technology, calledeBusiness Secure & Guaranteed (EBSG), couldrevolutionize online payments. EBSG, a pro d-uct of Oncaldera Corp., allows online shoppersto make secure Internet credit or debit card pur-chases at any participating merchant's Web site,without sharing their personal financial informa-tion with online merchants. Shoppers initiate trans-actions through their own banks, which then deliv-er guaranteed payments to merc h a n t s .

Shoppers are consumers, government entities or cor-porations, and merchants are retail merchants, billers,government entities or corporations.

H e re's how it works:

The EBSG-backed card is designed to fit into a CD-ROM,but it also can be used as a credit or debit card for face-to-face transactions. The card has a magnetic stripe for swip-ing and is accepted at 16 million POS locations and680,000 ATMs worldwide.

You insert yourbank-issued card into theCD-ROM and enter your PIN. Aseparate, secure link is made betweenyou and your bank, instead of sending financialdata to the merchant. Transaction information such asdollar amount, remittance information and merc h a n taccount numbers are transmitted to your bank.

Using the secure link previously established, the bankauthenticates that it's really you, based on the PIN youe n t e red. The bank then verifies the account balance andinitiates a guaranteed payment authorization to the mer-chant. The transaction is complete in less than 30 seconds,about the same amount of time it takes to pay with a re g-ular credit card .

A c c o rding to Oncaldera, the EBSG technology is mores e c u re than using a regular credit card for online pur-chases. Data is encrypted and transmitted through twod i ff e rent connections, so the possibility of hacking isg reatly minimized. An added security benefit is that noneof your card information is transmitted to the merc h a n t .Instead, it is sent directly to your financial institution,t h e reby preventing any fraudulent or erroneous misuseof your financial data by the merc h a n t .

Oncaldera's technology is available for privatel a b e l i n g .

Oncaldera Corp.

15385 Oxnard Street, 2nd FloorLos Angeles, CA 914118 1 8 - 4 4 2 - 6 0 8 0w w w. o n c a l d e r a . c o m

Page 5 4

Oncaldera's Xmoola CD-ROM

Payment CardFront (l), Back (r)

eBay-PayPal Merger MovingAhead

e B a y's acquisition of P a y P a l has not closedyet, but it's one step closer. The waitingperiod under the Hart-Scott-RodinoA n t i t rust Improvements Act of 1976passed without a second request for infor-mation from the Department of Justice,which is a good sign for the companies.

H o w e v e r, there are still several obstacles too v e rcome before the deal can close. The companies facetwo lawsuits filed by investors seeking to block the merg-e r, eBay and PayPal stockholders still need to give theira p p roval, and other regulatory approvals also arere q u i red. In spite of all this, the companies are optimisticand expect the deal to officially close in the fourth quarterof 2002.

In other news, PayPal has agreed to stop processing pay-ments to online casinos made from customers in NewYork state by Sept. 1, 2002. The announcement was inresponse to the New York State Attorney General'sinquiry into payments made to online gambling mer-chants using PayPal's service.

PayPal says it has agreed to the terms voluntarily and isnot admitting to any violation of law. The company haso ff e red to pay penalties of $200,000 to the state to coverthe costs of the Attorney General's investigation and willalert law enforcement officials if it finds any customersengaged in illegal Internet activity. eBay pre v i o u s l yannounced that once the acquisition is complete, it wouldnot allow PayPal to process any transactions for onlineg a m b l i n g .

Stored-value Cards Gain Popularitywith Top Retailers

A recent USA Today article reported that since January2002, S t a r b u c k s has sold 5 million magnetic stripe store d -value Starbucks cards, worth $70 million. Starbucks card scan be reused and reloaded for values from $5 up to $500,for the really serious coffee drinkers. Retailers such asWal-Mart, Sears, Wa l g reens and Kinko's also have beenpushing some form of a stored-value or gift card .

Va l u e L i n k, a subsidiary of First Data Corp., is one of thel a rgest card manufacturers, making cards for re t a i l e r ssuch as A b e rc rombie & Fitch Co., Bed Bath & Beyond,Toys"R"Us, IKEA and Blockbuster. ValueLink says thes t o red-value card industry will top $32 billion this year.

Study on Barriersto B2B Electronic Payments

The New York Clearing House p u b l i s h e dthe results of its market re s e a rch study,conducted to determine specific barriers tothe adoption of electronic paymentp rocesses between businesses.

The study found five major barriers:

• Businesses dislike the lack of re m i t t a n c einformation that currently comes withp a y m e n t s .

• There is a perceived loss of check floatassociated with making electronic payments – businessesp refer to receive rather than send electronic payments.

• Businesses also dislike being debited by other compa-nies – they like to control the timing and amount of pay-m e n t s .

• There is a reluctance among businesses to give out theiraccount numbers for processing because of security con-c e r n s .

• There is a lack of functionality and integration of pay-ment systems with accounting systems.

The study targeted financial professionals in charge ofpayments in 155 companies and followed with nine focusg roups of executives and senior managers overseeingcompany finances and accounts payable/receivable. Yo ucan view a summary of the re s e a rch at www. n y c h . o rg .

Oklahoma Partners with VeriFone for EBT

In 1998, the state of Oklahoma learned through an auditthat many of its licensed child-care facilities had beenoverpaid government benefits. The state also found thatthe inundation of paperwork made it difficult to identifysuspected program violations, control fraud and monitorchild attendance at contracted facilities. The OklahomaDepartment of Human Services there f o re determined thatit needed an automated, electronic system for trackingand administering child-care benefits.

Ve r i F o n e and ACS State and Local Solutions have part-n e red to provide a Web-based point-of-service electro n i cbenefits transfer system to the state of Oklahoma to auto-mate the tracking of time and attendance for more than46,000 subsidized recipients in 4,500 child-care centersa c ross the state, increasing the speed and efficiency ofbenefits distribution.

The Oklahoma Department of Human Services expectsthe electronic benefits transfer (EBT) child-care system tobe implemented by March 2003. The system re c e n t l y

Page 5 7

received the 21st Century Achievement Aw a rd fro mComputerworld magazine for visionary use of informa-tion technology.

A Million Biometric Transactions

BioPay LLC announced that as of Aug. 4, 2002, one mil-lion financial transactions have been conducted and veri-fied using its Paycheck Secure biometric identificationt e c h n o l o g y. Using PayCheck Secure, merchants captureand store the electronic image of a customer's fingerprintand then re c o rd check transactions made by that person.Using BioPay, merchants are alerted to any negativetransaction history. For customers, no paper ID isre q u i red to cash a check; rather, merchants scan the cus-tomer's finger for ID verification. BioPay systems are inplace at more than 200 merchant locations in 22 states.

500 Million SIM Cards

G e m p l u s, provider of smart card-enabled solutions,announced that it has passed the 500 million mark interms of providing Subscriber Identity Module (SIM)c a rds. Since the standardization of Global System forMobile Communication in 1992, Gemplus has delivere d1.36 billion SIMs for the global telecom industry – that'sm o re than one in every three SIM card s .

Visa DPS Processes 11 Billion

Visa Debit Processing Services recently announced thatit has processed more than 11 billion transactions. Vi s aDPS, processor of PIN- and signature-based debit pro d-ucts, processes more than 1 billion debit transactionsevery 60 days. The company has been in operation for sixy e a r s .

CrossCheck Joins Industry Check Council

Rohnert Park, Calif.-based CrossCheck, Inc., p rovider ofcheck authorization technology and check guaranteeservices, is now a member of N A C H A’s Electronic CheckC o u n c i l.

N A C H A formed the Electronic Check Council to uniteindustry leaders so that together they may find solutionsto problems facing paper check processing systems suchas increasing costs and fraud.

The Council sets standards for the ACH Network andother payments systems, steers the development of newpayment applications and provides education and pilotson new technologies, including check conversion.C rossCheck markets several check conversion pro g r a m sas part of its check guarantee services.

N A C H A re p resents more than 12,000 financial institu-

tions through direct memberships and a network ofregional payments associations and 650 org a n i z a t i o n st h rough its industry councils.

Tranax Mini-Banks Released

Tranax Te c h n o l o g i e s announced the availability of allm o n o c h rome configurable versions of the Mini-Bank1500, with color monitor availability soon to follow. TheTranax Mini-Bank 1500, introduced in June 2002 and fea-t u red in the June 24, 2002 issue of The Green Sheet ("GoodThings Come in Small Packages," 02:06:02), is designed asa configurable platform for free-standing retail ATM loca-t i o n s .

Vital Adds Check Imaging

Vital Processing Services has added check-imaging func-tionality to its POS check service offering. Vital's POScheck service with imaging captures the entire checkimage and consumer identification information, such asname, address and telephone number. If there is an erro ror misread, Vital's software allows retrieval of the originalcheck image. Five of Vital's acquiring customers haveimplemented the company's POS check service solution.

In other news, TransFirst recently renewed its contractwith Vital. Vital has provided processing services toTransFirst since its inception in 1995 and will continue top rovide merchant processing services, such as authoriza-tion, capture, clearing and settlement of payment transac-t i o n s .

Debit Card Handheld Pilot Successful

Orion Commerce Group, a Tampa-Fla.-based softwaredevelopment firm and Hypercom value-added re s e l l e r( VAR), announced the completion of a successful 100-daybeta of its 900 MHz credit and debit processing handhelddevice software and the first installation, at a drive-t h rough dry cleaner service. The proprietary software isdesigned to run on Hypercom's ICE 4000 remote terminalwith the ICE 5500 base. The Green Sheet reported onOrion Commerce Group in its July 8, 2002 issue ("FloridaBuzzes about Skimming Sting, Advent of Tabletop POSTerminals," 02:07:01).

Certegy Wins 2 Major Retailers

C e r t e g y announced it has completed the rollout of itscheck-authorization services to the 243 stores of the S a k sDepartment Store Group, which includes Parisian,P ro ffitt's, McRae's, Younkers, Herberger's, Carson PirieScott, Bergner's and Boston Store. Certegy also will sup-ply check risk-management services to San Jose, Calif.-based Orchard Supply Hardware (OSH), a subsidiary ofSears, Roebuck & Co. OSH is a hard w a re and gard e n

Page 5 8

re t a i l e r, with 82 stores in California. Sears uses Certegy'scheck products at its retail and service store s .

Health Care Processor Hires Global Payments

Global Payments will provide transaction authorization,settlement processing, merchant accounting and risk-management services to HealthCard Systems, LLC, ac redit card processor for the health-care industry.H e a l t h C a rd Systems provides proprietary processing sys-tems compatible with most health-care software pro-g r a m s .

@pos Terminals Coming to Sport Chalet;Pharmacies, Too

@ p o s will provide Sport Chalet, a sporting goods re t a i l e rwith 26 stores throughout Southern California andNevada, with iPOS 3100 point-of-sale terminals for cre d i tand debit transactions, signature capture and Cro s s v u e ' sre c e i p t - retrieval services. Crossvue, a POS terminalp ro v i d e r, was acquired by @pos in September 2001.

@pos also announced that Opus Core Corp., developer ofs o f t w a re for pharmacies, will be a value-added re s e l l e r( VAR) of @pos' iPOS 3100 signature capture terminal.Opus Core is combining its SignatureRx software with@pos' terminal to provide pharmacies with a way to cap-t u re signatures and attach them to prescription re c o rds in

their pharmacy systems.

Using Opus' solution, a pharmacist will be able to distin-guish prescriptions that have been picked up from thosethat remain "in the bin." Opus Core's solution also willp rovide reporting capabilities on information such aspatient name, the date the prescription was filled, amountpaid, consultation and insurance-carrier information.

Global Payments Elects Denham to Board

Jill Denham has been elected to serve on G l o b a lPayments Inc.'s Board of Directors. Denham is SeniorExecutive Vice President, Retail Markets for the CanadianImperial Bank of Commerce (CIBC) and also is a memberof CIBC's Senior Executive team. She joined the bank in1983 and has served in several management positions incorporate finance and merchant banking in Canada andE u rope, including her previous position of Executive Vi c eP resident and Managing Director of cibc.com. Denhamsucceeds David Marshall, Vice Chairman of CIBC, who isstepping down from the board in line with his pre v i o u s l yannounced re t i re m e n t .

Page 6 0

Welcome Appoints Asia-Pacific CEO

We l c o m e, a smart card software pro v i d e r, announced thatit has named Alex Ta n CEO of Welcome's A s i a - P a c i f i cregion. Tan is a veteran in the payments industry. He hasfilled several executive-level positions with a number ofcompanies: Managing Director of M-Payment (m-com-m e rce enabler and m-marketing solutions company),Managing Director of Thyron Technologies in Asia Pacific(end-to-end payment solutions pro v i d e r, primarily onmobile commerce), Managing Director of A c t i v e C a rd inAsia Pacific and General Manager for Hypercom A s i a .His background also includes senior management posi-tions with MasterCard International, United OverseasBank, NETS and Visa International.

Hypercom Has New VP

Hypercom Corp. announced the appointment of E r i cD u p r a t to Vice President, Marketing and BusinessDevelopment for the company's Transaction SystemG roup (TSG). Mr. Duprat is an eight-year veteran of thee l e c t ronic payments industry. Before joining Hyperc o m ,Duprat held executive marketing positions withVeriFone, Inc., Schlumberger Technologies and Polaro i dCorp.'s electronic identification division.

Duprat will report to Jairo E. Gonzalez, President ofH y p e rcom TSG.

Changes at Alogent

Alogent Corp., a developer of payment transaction pro-cessing solutions for financial institutions, namedWilliam J. Gilmour CFO. Gilmour has more than 20years of financial experience and recently held the posi-tion of CFO for MAPICS Inc., an Enterprise Resourc ePlanning (ERP) software pro v i d e r. Before coming to theU.S., Gilmour held executive finance positions for severalCanadian-based companies.

Alogent also named Ian Culling Vice President ofP roduct Development and promoted Amar Ve r m a to Vi c eP resident of Product Management.

Culling previously held the position of Chief Te c h n o l o g yO fficer for Click Tactics Inc. He also was co-founder andV P of Engineering for Tango Networks Inc. and served asV P of Commerce Development at Clarus Corp.

Verma has been with Alogent since 1995, when the com-pany was founded. Before joining Alogent, Verma was ani t e m - p rocessing consultant for Unisys and the FederalReserve Bank. His background includes experience in theretail banking software industry. Verma also has served asa software consultant for Syntel.

Page 6 1

WhenOpportunityKnocks

"Luck is where preparationmeets opportunity."

That famousquote from leg-endary footballcoach Vi n c e

L o m b a rdi pretty muchsums up the game of sell-ing. How many times have

you kicked yourself for missing an opportunity? Did youmiss it because you weren't in the right place at the righttime? Did you miss it because of someone else's actions?The real truth: You missed it because you either didn'trecognize the opportunity or weren't pre p a red for it.

If your opportunity vision isn't as clear as you'd like, per-haps your definition of opportunity needs an adjustment.Do you see it as money falling off a truck as you cross as t reet? Or a merchant walking up to you and asking tobuy your services? Wake up and lose the fantasy. Sure ,those scenarios could happen, but they're not likely tohappen.

While there may be times when fortuitous circ u m s t a n c e snudge you toward a sales opportunity, nothing can helpyou recognize and take advantage of an opportunity likethe habit of preparing for one in advance.

In selling, you can't rely on luck. It really doesn't exist.What does exist is pre p a redness, if you make it so.

Do you know successful salespeople? People see themand say, "They're so lucky. Everything falls into place forthem." But they're successful because they're pre p a re d .

They planned for good fortune, anticipated it, learnedhow to recognize it and, most important, knew what todo when it did happen. They had a CLEAR image of howto succeed. They Communicated. They Listened. Theyw e re Efficient. They were Able. They were Re a d y.

When opportunity knocks, be pre p a red to answer. Fine-

tune your communication and listening skills. Incre a s eyour efficiency by maximizing both your time and youre fforts. Take part in ongoing education and training tobetter your abilities. And, above all, always be ready forthat opportunity.

Clothes Make the Man ...and Woman

Dress for success has become THE mantra forevery professional. This catchy phrase is notjust a basic tenet of Business 101. It's bandiedabout on Madison Avenue as well as on the

singles scene. Whether it be attire for a board room or abaseball field, without the proper uniform you've alre a d ylost the game. Looking successful projects the image that

Page 6 3

Vince Lombardi

Page 6 4

Smart Card Alliance Annual Conference

“Catalysts for Convergence”

Highlights: Moving to smart cards presents opportunities andchallenges for financial services firms, retail organizations andgovernment agencies. Policy decisions, standards and newinfrastructure implementations need to be examined and dis-cussed. As businesses and organizations look to smart cards toprovide new solutions for ID, authentication and risk manage-ment, applications and new technologies become more impor-tant. At the 10th Annual meeting of the Smart Card Alliance,hundreds of smart card industry leaders, government reps andcorporate executives will address these issues. Keynote speakersand presenters include industry and government experts lead-ing discussions on security issues, biometrics, technology andfinancial services issues such as global standards and retailapplications. The Education Institute offers additional coursesimmediately following the conference.

When: Oct. 7-10, 2002Where: Marriott Camelback Inn, Scottsdale, AZRegistration Fees: Register separately for the conference and

Educational Institute; fees vary by membership status and num-ber from your organization attending.

How to Sign Up: Visit www.smartcardalliance.org.Phone 800-556-6828.

Payments Symposium 2002

Highlights: The Payments Symposium, sponsored by the WesternPayments Alliance, is the West Coast resource for informationexchange and discussion of electronic payments, paymentsconvergence, fraud, risk management and other issues at theforefront of our industr y. This innovative forum blends twoevents into one: a high-level summit that brings together keyindustry players for a lively exchange of views and ideas, andan educational conference where you can fine-tune your plansand exchange information on technology, direction and chal-lenges in the payments industry. Symposium topics and coursesinclude: View from the Fed: The Payments Landscape;Corporate Trends in Payments, Cash Management, Payablesand Receivables; Spotlight on the Future of PaymentsTechnologies. Senior executives from WesPay member organi-zations; payments, cash managers and industry executives fromfinancial services; corporate and public sector cash managers;and technology and services providers to the payments industryshould plan to attend. A cocktail reception and gala dinneralso are planned.

When: Nov. 3-5, 2002Where: Sheraton Palace Hotel, San FranciscoRegistration Fees: $695 for symposium; $125 for additional

reception/dinner guests.How to Sign Up: Visit www.wespay.org. Phone 415-433-1230.

you are successful. Even more important, you'll feel suc-c e s s f u l .

For the sales professional, it takes on special meaning.M e rchants run the gamut from highly stylized to com-fortably casual. One account re q u i res a suit while theother calls for a polo shirt. Despite what the dress codecalls for, certain rules transcend all. Consider the follow-ing as you select your next outfit:

• Stand out for your ability, not your Armani. A re yourclothes making such a bold statement that peopleremember you for your outfit and not your assets?Customers buy from sales professionals with expertise,integrity and competence. If they can't get past yourw a rd robe, how will they see the value of your pro d u c tand services?

• Boring is just as bad as bold. Now is not the time toblend into the woodwork. Competition is fierce. We a r i n gclothes that make no statement really do. They're sayingt h e re's nothing special about you or your offerings. Findthe balance between hot trend and ho hum.

• Consistency is stylish. Hand in hand with "dress forsuccess" is the other foundation of financial fortune – youdon't get a second chance to make a first impre s s i o n .H o w e v e r, don't make the mistake in thinking that thesecond and subsequent meetings mean you can forg e tabout making that same impression. Consistency in youra t t i re tells your prospect they'll have consistency in yours e r v i c e .

• Birds of a feather. Sales is all about subconscious sig-nals. Merchants will gravitate toward a vendor whoresembles them, whether it be wit or ward robe. If you aredetermined to snag that car parts store account, drop thetie and don a workshirt.

• Follow the fashionable. We all have colleagues wea d m i re and respect. We all know the top sales pro f e s-sionals and, on more than one occasion, wish we could bem o re like them. Why not use their style as a guide? Yo u rrole model could be the perfect fashion model as well.

• It's all about accessorizing. Just as you are the masterof detail when it comes to contracts and sales calls,extend that mastery to your business appearance. Thesmall details will make the big diff e rence.

Good Selling!

Paul H. Green

Page 6 6

ATM/SCRIP ISOs LOOKING FOR AGENTS

Access AT M(866) 874-0384

Amicus/XtraCash ATM(888) 712-1600

ATM Merchant Systems(888) 878-8166

Cash Resources, Inc.(800) 214-1840

Data Capture Systems, Inc.(800) 888-1431

Electronic Cash Systems, Inc.(888) 327-2864

Financial Technologies, Inc.(800) 523-2104

NationalLink(800) 363-9835

Phoenix Cardnet(305) 338-9316

Samsar ATM Co.(800) 811-3342

BANKS LOOKING FOR ISOs/MSPs

Bridgeview Payment SolutionsA Wholly Owned Subsidiary ofBridgeview Bank and Tru s t

(888) DO APPLYChase Merchant Serv i c e s

(800) 622-2626 x86016Comerica Merchant Serv i c e s

(800) 790-2670First American Pymt Sys

(866) GO4 FA P SHumboldt Bank Merchant Serv i c e s

(877) 635-3570National Processing Co.

(800) 672-1964 x 7655Professional Payment Consultants

(402) 496-6381

Redwood Merchant Serv i c e s(800) 939-9942

Retriever Payment Systems (800) 376-3399

CHECK DRAFTING SERV I C E S

C F IG ro u p(888) FON-CHEX

Checks by Phone/By We b(561) 998-9020

CHECK GUARANTEE/V E R I F I C AT I O N

C rossCheck, Inc.(800) 654-2365

ElectCheck, Inc.(800) 863-5995

E Z C h e c k(800) 797-5302 x303

Global eTelecom, Inc. (GETI)(877) 454-3835

Global Payments (800) 638-4600 x888

S e c u r- C h e x(888) 603-0978

COMPLIANCE/PIN E N C RY P T I O N

I N F O R M AT I O N EXCHANGE, INC.(973) 734-0822

C O N S U LTING AND A D V I S O RY SERV I C E S

First Annapolis Consulting, Inc.(410) 855-8500

Integrity Bankcard Consultants, Inc.(800) 816-4224

Novida Consulting(402) 895-5142

DEBIT TRANSACTION P R O C E S S I N G

C a s h L a n e(800) 325-2862

Global Payments, Inc.(800) 801-9552

E F T-ACH SETTLEMENT S E RV I C E S

C h e c k g a t e w a y. c o m(480) 785-2262

Intercept Corporation(800) 378-3328

Network 1 Financial, Inc.(800) 261-0240

E Q U I P M E N T

Assoc. Te rminal Mgmt (ATM) Grp(877) 286-4768

Automated Transaction Te c h .(888) 454-1210

B A N C N E T(713) 629-0906

BUDGET Te rminals & R e p a i r(985) 649-2910

C a rd Wa re Intern a t i o n a l(740) 522-2150

C D ES e rv i c e s(800) 858-5016

E l e c t ronic Payment Systems LLC(800) 863-5995

General Credit Forms, Inc.(800) 325-1158

Global Payments (800) 229-3698

The Horizon Gro u p(888) 265-2220

H y p e rc o m(800) Hyperc o m

I n g e n i c o(800) 252-1140

Lipman USA, Inc.(516) 484-9898

M LT & Assoc., Inc. Plastic Refurb(775) 358-2922

National Processing Company(800) 672-1964 x 4383

P O SP o rtal, Inc.(866) 276-7289

S c h l u m b e rger Sema(800) 732-6868 x202

Te e rt ronics, Inc.(800) 856-2030

TA S Q Te c h n o l o g y(800) 827-8297

Thales e-Transactions, Inc.(888) 726-3900

Vital Merchant Serv i c e s(800) 348-1700

F R E E E L E C T R O N I CC H E C K R E C O V E RY

C H E X c o l l e c t . c o m(631) 691-0666

GIFT CARD PROGRAMS

S w i p e C a rd, Inc(702) 307-3700

FUNDING SOURCES

R e s o u rce Finance Company, LLC(866) 211-0114

I N S TANT MERCHANTA P P R O VA L S

C re d i t d i s c o v e ry, LLC(877) 789-4976 x8006

I S O R E L ATIONSHIPS AVA I L A B L E

BioPay Biometric Pymt Svcs(866) 324-6729

C e rtified Merchant Serv i c e s(877) 309-1099

C o C a rd Marketing Group, LLC(800) 882-1352

E x p ress Merchant Proc. Sol.(800) 999-5189 x 7966

First American Payment Systems(866) GO4 FA P S

Global eTelecom, Inc.. (GETI)(877) 454-3835

Global Payments(800) 801-9552

M e rchant Data Systems, Inc.(800) 249-6377

M S I - M e rc h a n tS e rvices, Inc.(800) 288-8472 x912

Network 1 Financial, Inc.(800) 261-0240

The Resource Guide has grown toaccommodate increased interest!

To add your company to our expanding listing,

call 800-757-4441 today.

DO BUSINESS BETT ER

OUR PROMOTIONS

DELIVER STELLAR RETURNSLipman promotions perform like a star and pay back huge returns! They can rocket your profits into orbit,

so put them to work for you.

Call today, visit us online or come see us at ETA, Booth 725. Ask about our frequent and flexible programs.

Check out how Lipman’s stellar promotions will help you… do business better.

1.8 00.4 54.76 2 6 • w ww.l i p m a n u sa.c o mA L SO, VISIT OUR

BOOTH AT ETA IN SEP-

T EMBER FOR YOUR

CH A NCE TO WIN A

SONY PLAY S TAT ION II !

Michael Grossman (left), Senior Vice President of Lipman, presents John Dorsey,President of Electronic Payment Systems with a rebate check at the Nort h E a s tAcquirers Association Summer Meeting in Mystic, Connecticut.

Page 6 8

P a rt n e r- A m e r i c a . c o m(800) 366-1388

Payment Resources Int’l.(888) 835-1777

Te rmNet Merchant Serv i c e s(800) 344-8472 x 108

Total Merchant Serv i c e s(888) 84-TOTAL x314

United Bank Card (UBC)(800) 201-0461

ISOS/BANKS PURCHASING ATM P O RT F O L I O S

Midwest Bancard Corporation(888) 272-4325

Momentum Cash Systems(800) 939-0914

ISOs/BANKS PURCHASINGMERCHANT PORT F O L I O S

1st Merchants Bancard (FMBS)(800) 477-0173

Chase Merchant Serv i c e s(800) 622-2626 x84134

C o n c o rd EFS, Inc.(800) 778-4804 x66382

M e rchant Data Systems, Inc.(800) 249-6377

M e rchant Services Incorporated(800) CARDSWIPE x7934

Network 1 Financial(800) 903-8819

Southwest Financial Services, Inc.(800) 841-0090

Transfirst Holdings, Inc.(972 249-0037

ISOs LOOKING FOR AGENTS

1st Merchants Bancard( F M B S )

(800) 477-0173Advanced Merchant Services (AMS)

(888) 355-VISA (8472)American Credit Card Proc.Corp.

(800) 310-3812A p p roval Payment Solutions, Inc.

(888) 311-7248B a n k C a rd USA

(800)589-8200 x101

C a rdReady International, Inc.(877) PAY R E A D Y

C e rtified Merchant Serv i c e s(877) 309-1099

Comerica Merchant Serv i c e s(800) 790-2670

C o n c o rd EFS, Inc.(800) 778-4804 x 66382

C o rnerstone Payment Systems(866) 277-7589

CPS Group, inc.(800) 933-0064

C y n e rgy Data(800) 933-0064 x 5710

E - C o m m e rce Exchange(800) 748-6318

E l e c t ronic Merchant Systems(800) 726-2117

E l e c t ronic Payment Systems LLC(800) 863-5995

EXS Electronic Exchange Sys.(888) 949-2021

Fifth Third Merchant Serv i c e s(800) 669-7228

First American Payment Systems(866) GO4 FA P S

F rontline Pro c e s s i n g(866) 651-3068 x133

Imperial Processing Gro u p(800) 790-2670

Innovative Merc h a n tS o l u t i o n s

(800) 397-0707I R N PAYMENT SYSTEMS

(800) 366-1388Lynk Systems, Inc.

(866) 828-5965M e rchant Data Systems, Inc.

(800) 249-6377M e rchant Services, Inc.

(800) CARDSWIPEMomentum Cash Systems

(800) 939-0914National Processing Co.

(800) 672-1964 x7655Nationwide Cre d i t c a rd Center

(800) 910-2265Netcom Data Southern Corp.

(800) 875-6680Online Data Corporation

(866) 222-2112

Retriever Payment Systems(800) 376-3399

S i g n a t u re Card Serv i c e s(888) 334-2284

Total Merchant Serv i c e s( 8 8 8 ) - 8 4 - T O TAL x314

Transaction Payment Systems(800) 999-8674 x309

United Merchant Serv i c e s(800) 260-3388 x202

Worldwide Merchant Serv i c e s(800) 847-2662

Xenex Merchant Serv i c e s(888) 918-4409

I S P / E - C O M M E R C EP R O V I D E R S

e C o m m e rce Tools, Inc.(800) 875-8275

Ta s q . c o m( 8 0 0 ) 8 2 7 - 8 2 9 7

L E A D S G E N E R AT O R S

C a l i f o rnia List Management(866) 4 LISTS 4 U

Te l s t a r(800) 383-7853

L E A S I N G

A-1 Leasing(888) 222-0348

Allied Leasing Corp.(877) 71-LEASE

American P.O.S. Leasing Corp.(800) 349-6516

B A R C L AY SQUARE LEASING, INC(866) 396-2754

E l e c t ronic Payment Systems LLC(800) 863-5995

First Leasing Corp.(888) 748-7100

G l o b a l Te c h(800) 414-7654 x 3002

Golden Eagle Leasing, Inc.(800) WE LEASE

Integrated Leasing Corp.(800) 398-9701

LADCO Leasing(800) 678-8666

Lease Finance Gro u pA Division of CIT

(888) 588-6213Leasecomm Corp.

(800) 515-5327M e rchants Leasing Systems

(877) 642-7649Merimac Capital

(888) 603-0978N o rt h e rn Leasing Systems, Inc.

(800) 683-5433 x 8500TA S Q Te c h n o l o g y

(800) 827-8297

U.S. MERCHANTACCOUNTS FOR C A N A D I A N S

PayNet Merchant Services, Inc.(888) 855-8644

NON-U.S. MERCHANTA C C O U N T S

PSiGate Payment Serv i c e s(877) 374-9444

POS CHECK CONVERSION

C rossCheck, Inc.(800) 654-2365

E - C h e x(877) 474-8924

E Z C h e c k(800) 797-5302 x303

E l e c t ro C h e c k(877) 509-9399

Global eTelecom, Inc.. (GETI)(877) 454-3835

Nationwide Check Serv i c e s(800) 910-2265

POS SUPPLIES

C a rd Wa re Intern a t i o n a l(740) 522-2150

General Credit Forms, Inc.(800) 325-1158

TA S Q Te c h n o l o g y(800) 827-8297

The Horizon Gro u p(888) 265-2220

Valdez Paper Pro d u c t s(970) 689-1655

With a…

• $2,500 Sign-On Bonus

• 9.5¢ Transaction Fee 100% above

• 1.519% Discount Rate 100% above

• 3 Hour Live Merchant Numbers (MSI’s Insta-App)

• .0295 Leasing Factor (No first & Last Av a i l a b l e )

… MSI has your numbers!

Become an MSI Power Agent To d a y !Call 1-800-CARDSWIPE ext. 7936 or visit www. g o t o m s i . c o m

Sign On. Cash In. Make More .Sign On. Cash In. Make More .

A bonus of

$2,5 0 0makes us a smart call!

A bonus of

$2,5 0 0makes us a smart call!

Once again, MSI tilts the scale in your favor with an unprecedented new off e r. Join our new

PowerAgent Program and earn more than ever before – starting with a $2,500 sign on bonus.

M S I ’s PowerAgent Program is packed with powerful agent incentives. MSI provides a caliber

of service and support, which is second to none!

So, partner with MSI today, the team that always excels in producing… bigger profits for you.

Merchant Services, I n c .

Page 7 0

The Resource Guide is paid classified advertising. The Green Sheet is not responsible for and does not recommend or endorse any product or service. Advertisers and advertising agencies agree to indemnifyand hold the publisher harmless from any claims, damage, or expense resulting from printing or publishing of any advertisement.

Vital Merchant Serv i c e s(800) 348-1700

PROCESSORS LOOKING FOR ISOs

First Data Merchant Serv i c e s(402) 222-8570

Global Payments(800) 801-9552

Lynk Systems, Inc.(866) 828-5965

National Processing Company(800) 672-1964 x7655

P O S Payment Systems(708) 548-4630

REAL-TIME CHECK/ CREDIT CARD PROCESSING

C h e c k g a t e w a y. c o m(480) 785-2262

E - C o m m e rce Exchange(800) 748-6318

e P ro c e s s i n g N e t w o r k . C o m(800) 971-0997

Online Data Corporation(866) 222-2112

P roPay USA-FaxPay(888) 486-4701

SITE SURV E Y S

P ro p e rty Resource Network Inc.(800) 676-1422

S O F T WARE ALT E R N AT I V E

G OS o f t w a re, Inc.(800) 725-9264

S U P P O RT DESK FOR POSTERMINALS & PC S O F T WA R E

C a rd Wa re Intern a t i o n a l(740) 522-2150

TA S Q Te c h n o l o g y(800) 827-8297

The Horizon Gro u p(888) 265-2220

Vital Merchant Serv i c e s(800) 348-1700

VIDEO PRODUCTION

Roaring Mouse Pro d u c t i o n s(707) 794-9699

WHOLESALE DISTRIBUTORS

Level2 Distribution(866) 4LEVEL2

WIRELESS SERV I C E S

U S Wi reless Data(800) 979-3282