Be Prepared: Smart POS Planning

The Financial Services Industry Source for Education, Inspiration and Actionable Advice

October 8, 2001 Issue 01:10:01 Be Prepared: Smart POS Planning Inside This Issue: question compelling, particularly s we noted in our third when the business has multiple ter- quarter GSQ, Visa has Features minal types and even manufacturers announced that three to in use. Some Merchants Pass on Visa’s four issuers will deploy Latest Price Hike A 70 million smart cards in the U.S. by by Patricia A. Murphy ...... 9 While I certainly would not say that IrFM Messaging Standard 2005. While this does not mean that my August/September trip was a Ready to Test the Waters smart cards are finally going to be as by H.R. Damon González Jr ...... 21 working vacation, I did travel for the common a household item as a first time with no travelers checks toothbrush, it will be something that and almost no U.S. cash, testing my Company Profiles ISOs can really get their teeth into ability to travel extensively on plas- POS Portal ...... 27 from a terminal sales Miva ...... 31 point of view. Europe is far News While I have been ahead of the U.S. Banking Software Developer Enters as skeptical as any- Conversion Game...... 13 in smart card Under-a-Buck Wonder...... 14 one about both the processing Givex To Release Gift Card time it will take for Software Application ...... 16 smart cards to be John Marshall Leaves Hypercom, seen in any signifi- Joins Blackstone ...... 17 cant number in the New Products U.S. and about their relevance in a Calling All Customer Service Agents ..39 Pairing Up to Empower Merchants ....39 single-currency It Keeps Going and Going and … .....41 U.S. market, my recent vacation has Inspiration made me reconsid- Do This, Don’t Do That ...... 49 er. Let’s Shake Hands on It ...... 49 Wait for the Beep ...... 50 I just completed Departments five weeks traveling through Jordan, Sicily, Italy, Austria, Forum...... 6 tic and use my ATM card as a pri- Switzerland and France and found FYISOs ...... 43 mary payment vehicle. Perhaps it Datebook...... 50 hundreds and hundreds of smart card was this little test that caused me to Resource Guide...... 51 terminals in use. While this is not pay even more attention than usual surprising with Europe so much to equipment and to discuss with ahead of the U.S. on this point, I people wherever I traveled their Notable Quote: found the equipment’s ability to strong belief in chip cards. move back and forth between swiped and chip cards completely The news from Wal-Mart seamless and Schlumberger equip- As a starting place, let’s see if and other merchants that ment much revered by retail estab- we can answer the most obvi- lishments in numerous countries. they no longer will accept ous question: What real Interlink cards could create Needless to say, perhaps, I pay atten- advantages should merchants a wave of defections. tion to equipment wherever I shop expect from smart cards? and regularly ask questions about Story on Page 9 how it works, if the employees like using it and, if a business owner is With Visa, MasterCard and Amex willing to talk, why they choose the actively promoting usage of smart equipment they have. I find this last cards, it makes good sense to begin Visualize a Wireless World

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© 2001 MIST Inc. All rights reserved. Page 3 preparing for chip cards to become a part of day-to-day Range of terminals for different environments business operations in the bricks-and-mortar retail world – and in your life as a sales professional in this industry. SchlumbergerSema has more than 10 years of experience Smart cards have two major advantages for retailers. One in smart card-based POS terminals and a worldwide advantage is enhanced security associated with the smart installed base of an estimated 700,000 units. Based on this card’s encryption and firewalling capabilities. While cred- experience, it has designed its state-of-the-art, highly reli- it card fraud is not a major issue for North American able and versatile MagIC line of POS terminals. retailers, increased online transmission of confidential customer data and the growing use of Web-based account- There are three types of MagIC terminals, all built on the ing and maintenance processes makes secure network same open platform. All MagIC POS terminals are smart access a necessity. card ready and ergonomically designed with a small foot- print and fast, quiet printers. They are compliant with ISO The second advantage is the capability to quickly and eas- Standard 7816.2, fully approved (level I and level 2) for ily download exciting new loyalty programs and other EMV standards and can handle both synchronous and innovative applications directly onto a smart card or a asynchronous protocols. State-of-the-art hardware- and smart card-ready POS terminal. Here the smart card’s software-based firewalling protects data against access by inherent security comes into play again, protecting the unauthorized users and ensures that data from different integrity of the applications and ensuring that unautho- applications is never shared unless they are specifically rized information is not shared between the many different designed to do so. types of applications that reside on the card or terminal. Multiple-application capabilities allow merchants to With several clear advantages and a major push from card implement a variety of value-added smart card applica- issuers, it’s inevitable that smart cards will begin being tions – such as gift cards, loyalty, age verification, check seen by retailers in the near future. So what is the most reading and e-purse – whenever they desire. The MagIC cost-effective way to transition to this new technology? Management System even enables remote terminal initial-

Here is one choice that might help a lot of ISOs who wish to get a jump on this learning curve.

SchlumbergerSema, which has pioneered smart card- based technologies for more than 20 years, has been focusing its resources on creating a cost-effective, seamless POS solution that enables North American retailers to painlessly move to smart card transactions. According to Paul Beverly, Vice President of the company’s Transaction Systems business in North America, all it takes is a little “MagIC” – the SchlumbergerSema acronym for its Magnetic Stripe/Integrated Circuit POS solution.

“SchlumbergerSema understands the issues associated with the slow but inevitable transition to smart cards and has created a range of simple-to-use, easily upgradeable electronic payment terminals that combine magnetic stripe and smart card technology, software applications development and computerized tools for infrastructure management,” Beverly said.

“The EMV-certified MagIC system combines the two technologies in open-platform POS terminals that support a full range of operating systems, including Visa Open, MULTOS and Proton. This approach enables retailers to rapidly and cost-effectively ramp up for the introduction of smart cards while utilizing today’s existing magnetic stripe technology.” Page 4 ization, remote application down- tle counter space and can process Remote management loads/updates and remote mainte- multiple cards per bill with online optimizes terminal nance. computation of outstanding amounts. performance. It supports up to three “SIM-size” SAMs to enable acceptance of a vari- But I am not going to be able ety of e-purse programs. The SchlumbergerSema MagIC to think about smart card ter- Management System (MMS) is an minals until my processor The MagIC 9000 comes in several operating and application manage- does! different models. The radio-frequen- ment system that enables remote ini- cy (RF) version is a completely tialization of MagIC terminals, portable unit equipped with a power- remote downloading/updating of While this may well be the case for ful radio link that allows online applications and remote mainte- many readers of The Green Sheet, transactions within an ideal radius of nance. MMS, which operates in an perhaps the following information 100 meters and offline transactions open Windows NT environment with will help you make some arguments at any distance. The infrared version a powerful Oracle database, provides and increase the sales and processing is portable and allows for single- all the functions necessary for man- stream: transaction capability near the base aging a broad terminal base in com- or complete offline transaction capa- pliance with EMV standards. • The MagIC 6000 POS terminal is a bility at any distance. dedicated, all-in-one, multitasking Remote software download enables EFT dial-up terminal that can be The corded version provides a semi- supervision of all applications run by used on a variety of processing net- portable solution with an integrated the terminals. Remote initialization works. Its effortless paper loading PIN pad in the handset that is con- provides flexibility through terminal allows the cashier to just drop the nected to the base station via a cord. activation and convenient installa- roll into the machine and close the The MagIC 9000 Mobitex terminal tion of applications. Remote mainte- cover, and the MagIC 6000 automat- is designed for home delivery or nance provides up-to-the-minute ically positions the roll for the next other mobile applications, can oper- supervision and optimization of ter- transaction. It features a large backlit ate independently via the Cingular minal performance. display capable of four lines of text Interactive network and completes and has a software-adjusted contrast transactions in an average of seven The firewall concept implemented in and backlighting feature. It can be seconds or less. the terminals is extended to the upgraded with additional memory as MMS for an accurate management well as four plug-in “SIM-size” • The MagIC 1800 Multilane PIN of independent applications. Security secure application modules (SAMs). pad is ready for easy connection to features are supplied with the MMS an Electronic Cash Register (ECR) for access control, terminal and MagIC 6000 terminals are optionally or PC for implementation in a wide MMS authentication, and file trans- equipped to communicate at baud range of retail and banking applica- fer sealed or ciphered or in the clear. rates from 9600/14400 bps. This out- tions. It delivers market-leading per- standing speed allows merchants and formance in transaction simplicity According to Beverly, the transaction acquirers to substantially and processing speed, and its com- SchlumbergerSema POS offering reduce operation costs when down- pact format is tailored to the provides a win-win solution for the loading applications, updating hot demands of a busy multilane retail North American market. card lists or uploading transactions. environment. There is no doubt that smart cards • The MagIC 9000 portable, mobile The Magic 1800 offers full multi- are going to become widely used for POS terminal takes the transaction application support, enabling pro- all types of transactions in North directly to the customers – at their cessing of smart or magnetic stripe America. The key for retailers is to restaurant table, at their door for cards combining basic debit/credit select open, standards-based POS home delivery or at a temporary site functions with value-added applica- equipment that accepts both magnet- like a street fair or sporting event. tions. Optional support for one full- ic stripe cards and smart cards and The MagIC 9000 fits easily into the size smart card reader and up to four that can be easily upgraded for future hand, integrates a quiet and fast 10- “SIM-size” SAM cards adds to the revenue-building applications as lines-per-second thermal printer into terminal’s operational flexibility. they become available. the handheld unit, has a compact docking station that takes up very lit-

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Puerto Rico Processing ASKING FOR THE SALE... Publisher: The Green Sheet, Inc. 1-800-757-4441 Do you have any information on pro- Fax: 1-707-586-4747 cessing in Puerto Rico? Are there any Email: [email protected] individuals who could sponsor me to sign 6145 State Farm Drive, accounts there as well? Rohnert Park, CA 94928 Sincerely, Editor in Chief: Paul H. Green Estaban [email protected]

VP/General Manager: Julie O’Ryan-Dempsey Dear Estaban: [email protected]

Managing Editor: Rick Vacek Have you tried Payment Resources [email protected] International? PRI, established in 1998, provides merchant services for all busi- Advertising: Alex Horvath ness categories and accepting all busi- [email protected] ness types, both domestic and offshore. It offers services for hard-to-place, high- Layout/Graphics: Troy Vera small merchants. The study included 38 chargeback-generating merchants and acquirers and ISOs, 19 of which are Staff Writers: Lisa Dowling is able to offer impeccable service at ranked among the top 50 U.S. acquirers. Stan Greiwe prices well below industry norms. Five of the fees were included in a 1999 First Annapolis study. Do you have any Production: Hudson Printing Company PRI merchants processed more than 66 information on that study? million transactions in 2000 and will Web Site: www.greensheet.com more than double that number in 2001. Sincerely yours, Its services include credit card and debit Tony Morrison Subscription Price: $425 per year (24 issues) U.S. & card processing with online statements, Canada, $575 Foreign, $125 per year for ACH services via terminal, PC software Independent Sales Organizations (ISOs), agents, and Dear Tony: bankcard service providers in the financial services and online Internet access, a gift and industry. Visit www.greensheet.com to subscribe reward card program and an extensive The Green Sheet has several references online. offering of e-commerce solutions. to your inquiry. To obtain copies of those articles, access our Web site at Any questions regarding information contained in The PRI will deliver the services, manage the www.greensheet.com and click on the Green Sheet should be directed to the Editor in Chief at technological networks, process the (800) 757-4441. The Green Sheet is a semi-monthly publi- “Publications” button. Then click on cation. Editorial opinions and recommendations are solely transactions and provide customer serv- “Issue Archives” and, in the search box, those of the Editor in Chief. ice and technical support to end-users. type in the words “First Annapolis.” The In publishing The Green Sheet, neither the authors nor the You can phone PRI at its headquarters publisher are engaged in rendering legal, accounting, or articles you are requesting are listed other professional services. If legal advice or other expert in Newport Beach, Calif., 949-729- there. Try searching these issues: assistance is required, the services of a competent profes- 1400 or 888-829-3539, or visit sional should be sought. The Resource Guide is paid classi- www.paymentresource.com. fied advertising. The Green Sheet is not responsible for, and • October 1995, issue 2 (95:10:02): does not recommend or endorse any product or service. “Bankcard Margins are Declining?” Advertisers and advertising agencies agree to indemnify Good Selling, • June 1997, issue 2 (97:06:02): “Who and hold the publisher harmless from any claims, damage, The Green Sheet Staff or expense resulting from printing or publishing of any Controls Merchant Bankcard Acceptance advertisement. in the U.S.?” Copyright © The Green Sheet, Inc., 2001. • June 1999, issue 2 (99:06:02): “The All rights reserved. Acquiring Survey End of Pooling and its Effect on the Merchant Business.” A Green Sheet article reported that First • March 2000, issue 2 (00:03:02): Annapolis recently completed a study of “Sales and Sales Management at the fees that acquirers charge regional and Average Acquirer.” Page 7

• September 2000, issue 1 (00:09:01): “Internet Discount Rate Greater Than For complete information on PSiGate, 3%.” access Green Sheet issue 01:05:02, • August 2001, issue 2 (01:08:02): published in May 2001, issue 2, or visit “First Annapolis Acquiring Survey its Web site at www.psigate.com. Reveals Price Convergence.” In Canada, the ISO community is net- Additionally, you could try contacting worked through InterAct, and all Michael Lill from First Annapolis at 410- Canadian financial institutions are Advanced Payment Services ...... 14 865-8801 or Michael.lill@firstannapo- members. Precidia Technologies is now Bridgeview Payment Solutions...... 10 lis.com, or visit www.1st-annapolis.com. branching out to the U.S. market, where Certified Merchant Services...... 54 there isn’t an established network. For Concord EFS ...... 22 Good Selling, information on Precidia, access Green CrossCheck ...... 8 The Green Sheet Staff Sheet issue 01:06:01, from June 2001. Datacap...... 17 e-Commerce Exchange ...... 12 For banks that deal with Canadian mer- Electronic Exchange Systems ...... 23 Canadian Processing chants, you might try contacting: Electronic Payment Systems ...... 48 Electronic Processing Inc...... 44 Can you please tell me which issues of • Arvic Services at www.arvic.com. Financial Technologies Inc ...... 46 The Green Sheet contain info about pro- Arvic began as an Alberta search First American Payment Systems ...... 20 cessing in Canada? Which banks deal house in 1982, gained the expertise of First Merchants Bancard Services...... 37 with Canadian merchants? a registered trademark agent in 1983 General Credit Forms...... 24 and made these two commodities into Global eTelecom...... 16 Thanks, one of Western Canada’s largest firms GO Software...... 26 Ray of corporate paralegals and trademark Horizon Group...... 56 agents. Hypercom ...... 18 Dear Ray: • Aero HOST Web Systems at www.aerohost.com. Aero Host Systems Ingenico...... 36 There are only five financial institutions automatically processes credit card IRN/Partner America ...... 34 in Canada as opposed to thousands in transactions directly over the Internet Lipman USA...... 15 the United States. PSiGate, the Toronto- through its Merchant Account system. It Meramak Bankcard ...... 19 based merchant-services provider, has also provides a secure database log Merchant Data Systems...... 30 assembled empowering solutions for an report of approvals/declines and other Merchant First Bank Card...... 13 easy and seamless interface to new transaction details. Merchant Services Inc...... 40 online commerce enterprises. PsiGate • InternetSecure Inc. at Merchants’ Choice Card Services...... 33 partners with the Bank of Nova Scotia www.internetsecure.com. InternetSecure Merchants Leasing Systems...... 28 for Visa, the Bank of Montreal for Inc. was founded in 1995 to develop a MIST ...... 2 MasterCard and has a direct relation- secure, online, real-time credit card pro- Network 1 Financial ...... 45 ship with American Express. cessing system for Internet merchants. North American Bancard ...... 5 The solution was to be easy to imple- NOVA ...... 47 PSiGate’s Transaction Module payment ment, require no capital investment by Resource Leasing Corporation ...... 25 module allows the customer to receive the merchant and be able to provide Retriever...... 38 virtually instant notification that a trans- merchant status. This system has been Secure Payment Systems...... 29 action has been processed because it approved by Canadian and United TASQ Technology ...... 55 communicates with Canadian card States banks for use by merchants Tasq.com...... 32 processors in real time. This merchant throughout the world. Tech Leasing...... 42 solution is supported by SSL transaction Teertronics...... 11 protocol and allows transactions to be Good Selling, Transaction Payment Systems...... 35 processed via the Internet. Multiple The Green Sheet Staff United Merchant Services...... 3 transactions can be processed at the same time. Send your Questions, Comments and Feedback to us today! 6145 State Farm Drive • Rohnert Park, CA 94928 or [email protected]

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Some Merchants Pass on Visa’s Latest Price Hike

By Patricia A. Murphy, The Takoma Group

he decision by Visa a few and American Express. In addition to Interlink operates independently of months back to hike the this litigation, DOJ has also opened Visa credit card programs. Debit interchange rates on an investigation into Visa and cards with both the Visa and T Interlink debit cards is MasterCard debit card policies. Interlink logos will be treated as prompting some retailers to give offline, signature-based debit cards Interlink the old heave-ho. While the Meanwhile, retail giant Wal-Mart with no option for cash back. Debit defectors include some big names in leads a group representing up to 4 cards with logos representing region- retailing, the shakeout isn’t likely to million Visa- and MasterCard- al EFT networks (such as NYCE, result in many cards being turned accepting merchants in a legal chal- Pulse and Star) will continue to be away by merchants. lenge to the Visa and MasterCard accepted. rules that require retailers accepting Wal-Mart, for example, figures that one type of Visa- or MasterCard- In addition to Wal-Mart, at least two fewer than 10 percent of its debit branded card to accept all cards that other retail chains have said they will payments are routed through are so branded. In other words, any stop accepting Interlink cards begin- Interlink, the online (PIN-based) retailer accepting credit cards with ning in October: RaceTrac debit network Visa operates. the Visa logo is obliged to also Petroleum Inc., which operates more Nevertheless, the retailers’ actions accept all Visa debit cards. than 500 gas stations around the should be cause for concern, espe- country, and Publix Super Markets cially when viewed against the back- The retailers’ lawsuit also takes issue Inc., which operates more than 670 drop of antitrust litigation involving with the interchange fees for Visa- supermarkets throughout the both Visa and its bankcard competi- and MasterCard-branded offline Southeast. tor, MasterCard. debit cards. Offline debit cards, also known as “check cards,” resemble Publix was one of the first grocery The U.S. Department of Justice credit cards in all but one important chains in the U.S. to accept debit (DOJ) is suing the two associations, way: Check card transactions effect cards, back in the 1980s. But like challenging the so-called “duality debits against demand deposit Wal-Mart, Publix says the new inter- rule,” which permits financial insti- accounts (DDAs). In other words, change rates make Interlink too tutions to issue and acquire both the transactions seemingly function expensive. MasterCard- and Visa-branded cred- as electronic checks. it cards. DOJ also has taken issue Credit card transactions trigger with association rules prohibiting Wal-Mart and the other retailers giv- extensions of credit, which makes member banks from issuing compet- ing Interlink the boot don’t run afoul them riskier, experts agree, than deb- ing card brands, such as Discover of the “honor-all-cards” rule because its against funds on deposit. Wal- A league of our own.

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Mart and other retailers want the bankcard associations to take this fact into consideration and cut interchange rates The greatest beneficiaries of the increases in interchange for check cards relative to the rates for credit cards. And fees will be the banks that issue debit cards to customers. they’ve hired Lloyd Constantine to present their case. Bank of America, which boasts more consumer DDAs than any other bank in the country, has made it clear it Constantine heads up Constantine & Partners, a small likes the Interlink approach to pricing. In August, BofA New York firm specializing in antitrust law. Before start- switched its debit card processing workload from Star to ing the firm, Constantine was chief of the antitrust division Visa. at the New York State Attorney General’s office, where he also did battle against Visa and MasterCard – and won. (It’s worth noting that Interlink originally was created by BofA, which sold the network to Visa in the early 1990s, In the late 1980s, a task force of state attorneys general led and that Visa’s genesis is also with BofA, as by Constantine sued Visa and MasterCard, alleging a BankAmericard.) jointly planned online national POS debit card system (dubbed Entrée) would stifle competition, in violation of And what about the merchants? While merchants have antitrust laws. The associations ultimately settled that law- been held captive to interchange and the Visa/MasterCard suit by pulling the plug on Entrée. honor-all-cards dictum for decades, the news from Wal- Mart and other merchants that they no longer will accept This time, the stakes are higher. What has come to be Interlink cards could create a wave of defections. known as the “Wal-Mart suit” seeks damages that could total as much as $50 billion, according to some sources, At this point, it’s not entirely clear what the outcome will and the right of retailers to refuse Visa- and MasterCard- be, except, perhaps, to further weaken the utility of branded debit cards. Interlink as a payment card. And, of course, it’s a safe bet that the lawyers at Constantine & Partners and the Justice The suit is in limbo, awaiting a decision by the U.S. Court Department will be monitoring price changes and the mar- of Appeals for the Second Circuit in New York, which is ketplace ramifications. considering a Visa-MasterCard appeal of the class-action status granted the case.

If the class-action status is upheld, Constantine and his staff will need to contact every merchant that accepts MasterCard and Visa cards (about 4 million) and offer each the opportunity to sign on or opt out of the lawsuit. They should have plenty of time, though; indications are that the Wal-Mart case might not go to trial until a decision has been handed down in the DOJ suit.

DOJ’s case was presented in the summer of 2000 in U.S. District Court for the Southern District of New York (New York City), as was the Visa/MasterCard defense. In October 2000, the presiding judge abruptly canceled plans to hear closing arguments from the two camps and has remained mum on the case since.

In the meantime, online debit costs continue to inch up. Within a month of Visa’s announcement that it was raising interchange fees on Interlink transactions, Concord EFS raised its interchange rates. Concord operates three large ATM/POS networks under the Star brand name.

The new Concord interchange fees, which take effect Jan. 1, 2002, top out at 34 cents per transaction for most merchants; grocers will pay a flat fee of 19 cents a transaction. The new interchange fees for Interlink max out at 45 cents per transaction for most merchants; grocers pay 22 cents for each Interlink transaction processed.

Page 13

with our Carreker-Gartner research project, and this acqui- Banking Software Developer sition is one of the ways we are helping banks answer that Enters Conversion Game question.” At stake for banks is an enormous source of their revenue. The U.S. payment market size is about $200 billion, and banks own about half. Payments account for an average of 42 percent of the operating income of the top 25 bank holding companies and as high as 75 percent of the payment leaders, according to a study by the Federal Reserve Bank of New York.

In the U.S. today, fully two-thirds of payments are in the form of checks. Check volumes have continued to grow in absolute numbers and will continue to grow for the next three to five years, even while they are being rapidly migrated to electronic forms.

To manage the migration profitably and efficiently, banks need a single-source provider with in-depth expertise and technology solutions across the payment system landscape. Carreker’s track record indicates that he will make a difference.

f you don’t know who Denny Carreker is or have John Marshall Leaves never heard of his company, it means that you have never been a U.S. banker. Between consulting serv- I ices and software development, Denny has helped hundreds of banks in the U.S. improve their businesses.

Well, now he plans to do the same thing for their check migration to electronics.

Carreker’s acquisition of Check Solutions, the highly regarded payment technology infrastructure company, is the latest Carreker move to be the preeminent provider of payment technology to the financial services industry.

Check Solutions has a 20-year history of high-quality banking relationships, including half of the top 100 banks in the U.S. The acquisition brings Carreker 250 employees based in Memphis, Tenn., and Charlotte, N.C. It also brings 75 technology applications in five major areas: Capture, Archive, Image, Back Office and Customer Services Online.

Joe Rowell, Check Solutions founder and president, becomes president of the Check Solutions Group within Carreker’s Global Technology Solutions.

Mike Hansen, Executive Vice President, Managing Director of Global Technology Solutions, says, “Clients tell us one of their biggest challenges is: How do we maintain our hold over payments while we migrate from paper to electronics? That’s the central question we’re answering Page 14

“The number of Visa smart cards tional vision and concentrate on han- Under-a-Buck being issued by banks worldwide has dling Visa’s credit and debit applica- been increasing significantly. tions. Wonder However, there are still many banks that would like to issue smart cards Being developed in partnership with ust awhile back, chip-based but are concerned about the cost IBM, the new smart card is part of a credit or debit cards would compared to traditional magnetic major Visa program to reduce the cost $5 or more, and issuers stripe cards. cost of issuing smart cards and will often cited the price as a be the first in a family of low-cost J “While the cost of multi-application products from STMicroelectronics. major obstacle to converting from 50-cent magnetic stripe cards. Who smart cards has been reduced signif- could blame them? icantly in recent months, we have The new card will be manufactured also wanted to reduce the cost of by ORGA Kartensysteme GmbH, simple, single-application cards. although other manufacturers are Those days are over. negotiating with Visa to join the pro- “This new card product does just gram. Visa International and STMicro- that. It will allow Visa member electronics have launched a new banks to enter the market at a low Maurizio Felici, General Manager, smart card that will cost less than one cost and to benefit from the Smart Card division, STMicroelec- U.S. dollar. The companies believe increased security and functionality tronics, said: “We believe that this the new card will accelerate the provided by chip technology.” will help banks to migrate to appro- migration to chip and encourage oth- priate smart card solutions according ers in the payment-services market- Contrary to its $2.89 counterpart, to their local and specific needs.” place to follow suit. which possesses 16K of EEPROM1 to support such applications as loyal- Gaylon Howe, Executive Vice ty programs, the under-a-buck won- 1 Electrically erasable programmable read- President, Consumer Product der smart card will narrow its opera- only memory. Platforms at Visa International, said: FreedomFreedom of of Choice Choice The amazing new wireless Lipman Nurit® 8000 lets you do business any way... anywhere.

Lipman USA gives you freedom of choice – and freedom of movement – to do business your way. Now, our new Nurit® 8000 wireless POS terminal sets you free to go anywhere there's a sale.

It's the world's smallest and most powerful hand held POS terminal from the world leader in wireless transaction solutions. The Nurit 8000 is the size of a postcard. Tuck it into a pocket, and open all kinds of new opportunities for your business.

The Nurit 8000 is yet another innovation from Lipman USA, where everything we do is designed to give you freedom of choice... freedom of movement...freedom to be the best.

See the amazing Lipman Nurit 8000 in action at ETA Midyear 2001, booth309.

Visit us on the web at www.lipmanusa.com. Or call 1.800.454.7626.

TM Page 16

transactions without having to pur- natural extension of our gift certifi- Givex To chase gift card processing hardware cate management technology. It’s an devices or go through a software innovative product that gives our Release Gift integration. customers an additional way to con- Card Software duct real-time gift card transactions, and we believe providing this kind of Application “The goal of this software is to elim- flexibility is integral to our cus- inate the need of hardware terminals tomers’ overall success.” he holidays are coming that process gift cards,” Mike early for merchants look- French, Givex’s Vice President of ing for a new stand-alone Network Solutions, said in a state- Givex offers a variety of fully inte- gift card software ment. “Some of grated and standalone hardware T our customers solutions for conducting real-time application: Givex Corp. is releasing its application at don’t want hard- gift card, frequent user card, e-gift the 2001 Foodservice ware devices or certificate and points programs. The Technology Exposition on don’t want to wait Givex system is the first gift certifi- Oct. 22-24 in Dallas. for a fully integrat- cate technology to provide mer- ed solution, and chants with a secure real-time solu- this product suits their needs. tion that seamlessly integrates with The application will run independ- Additionally, by eliminating hard- existing (POS) devices and the ently of other software while con- ware there are a number of cost-sav- Internet. ducting real-time gift card transac- ing benefits, it’s easy for employees tions directly through a merchant’s to use and the installation is fast.” point-of-sale (POS) system. This The company has offices in Chicago, will enable merchants with existing San Diego, Toronto and Nassau, POS systems that lack gift card capa- Don Gray, the company’s President Bahamas. For more information, bilities to conduct real-time gift card and CEO, said, “This application is a visit www.givex.com. Page 17

John Marshall Leaves happy to be a part of the Blackstone team.” Blackstone rapidly has become one of the country’s largest Hypercom, Joins providers of prepaid telecommunications products and Blackstone services with more than 300,000 retail locations nationwide. Established and headquartered in Miami since 1995, lackstone Communications, one of the nation’s Blackstone is privately owned and managed by a team of leading electronic providers of prepaid telecom- executives experienced in payment processing, network- munications products and services, has named ing, information services, oil and gas, and prepaid B John Marshall to its newly created position of telecommunications. President of Blackstone’s Prepaid Systems Group, a wholly owned subsidiary. Blackstone has developed ongoing distribution relationships with such internationally recog- nized companies as AT&T, Marshall, who has more than 25 years VoiceStream, Americatel, Cingular, of experience in the electronic payment Embratel, Hypercom, Qwest and industry, most recently was Senior Vice Universal Savings Bank. President, Office of the President, for Hypercom Corp. In his new position, Marshall will be responsible for the With the formation of the Prepaid Systems Group, overall direction, coordination and evaluation of the Blackstone is successfully merging two industries, prepaid Prepaid Systems Group, including the day-to-day opera- telecommunications and electronic transactions, into one tions, sales and marketing and long-term strategic plan- terminal to the benefit of merchants across the United ning. States.

“The opportunity that Blackstone has to quickly bring two The Blackstone POS terminal, utilizing the Hypercom ICE large but separate industries together (prepaid calling 5500, is revolutionizing the electronic transaction industry cards and credit cards) and better serve the merchant is a by integrating the processing of all major credit cards once-in-a-lifetime opportunity,” Marshall said. “I am very

Datacap

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(MasterCard, Visa, American Express, Discover Card and Officer, added, “For the last several months, I have been Diners Club), ATM/bank cards and EBT (electronic bene- trying to entice John to join Blackstone. I am thrilled to fits transfer) with the sale of prepaid cellular and prepaid have him on board and look forward to announcing our calling cards into one, easy-to-use POS terminal. major successes in the coming weeks.”

Blackstone will provide Special Services Inc. with its proprietary software for the sale of prepaid products and serv- In the 14 years that Marshall was at Hypercom, demand ices, including prepaid cellular and calling cards, before for Hypercom’s terminals surpassed one million units. the end of the year. Pilot programs are expected to be com- Hypercom today maintains an installed base of more than pleted by November 2001. 4 million terminals in more than 100 countries that conduct more than 10 billion transactions annually. Hypercom “The argument for re-equipping the independent and the is the number one supplier of point-of-sale equipment convenience-store locations with an easy-to-use payment worldwide and has the largest installed base in Latin device that is 100 percent paid for by the sales of prepaid America and the Asia/Pacific region. products (calling cards, cellular and home phone service) is absolutely essential in today’s competitive marketplace,” Marshall said. Before working at Hypercom, Marshall was Vice President, Sales and Marketing, for six years at Austnet Gene Pounds, Senior Vice President of Sales for Special and EFTel, which specialize in EFT switching and POS Service Systems, concurred, saying, “It’s high time that terminals in Australia. Marshall also was the VP/Sales and the credit card terminal become a revenue-producing Marketing for five years at Data Terminal device rather than the money drain it has traditionally Systems/National Semiconductor, Australia, which been. Now, by combining these two powerful applications, focused on hotel/restaurant inventory control, POS sys- convenience-store operators can now actually make tems, front-end scanning and in-store supermarkets, and money with their credit card terminals.” was the VP/Sales and Marketing, Senior Sales for IBM, EDP and Eagle Technologies, Canada and New Zealand Luis Arias, Blackstone’s President and Chief Executive (manager, service bureau operations).

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IrFM Messaging Standard Ready to Test the Waters

By H.R. Damon González Jr., Dover Court Consulting

This is the third in a series of articles that review the concept, creation, evolution and potential future of a project to standardize an important component of payment initiation systems. This segment of the story covers early demos of IrFM as well as some of the market trials planned for domestic and international sites.

From Idea to Reality

n the last article we covered some of the history behind the formation of the Infrared Financial Messaging (IrFM) standard development project. I ar d

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to create a protocol to standardize the way payments are es

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made when they are transacted over a wireless connection. a n infr re i

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decided early on to lay out a number of operating princi- n

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a ples that would govern both the project scope and its a development plan. Since much had already been done in the world of e-commerce (electronic) and m-commerce (mobile) payment On top of that list of principles – and very nearly a first solutions, it was believed that consumers, merchants and priority – was the group’s commitment to produce proto- banks alike would have fewer wrenching changes to man- types and proofs-of-concept as soon as it possibly could. age as they make the transition from physical payment The view was that this approach assured a quick path to instruments to digital equivalents. valuable assessments of feasibility, degree of implementation difficulty and market acceptance. In keeping with the bias for quick results, very little time passed before the first proof of concept was completed and The main idea was to avoid years of design work trying to made public. produce the perfect protocol in favor of something that worked “straight out of the chute.” Results did not need to be perfect or, for that matter, all-encompassing. It merely Proof of Concept had to be something that worked in the case of a consumer making payment to a “bricks-and-mortar” merchant would suffice for a start (accordingly, the first prototype closely Owing to Infrared Data Association’s successful infrared resembled the aftermath of a catfight in an electronic parts communications specification, literally millions – 200 mil- factory). lion at last count – of handheld computers, personal data assistants, cameras, printers and laptop computers have To begin, the team selected the existing “plastic card” been able to send documents, pictures, business cards and form of payment as a basis for most of the original proto- sundry other things back and forth by simply “pointing col design work. Even the proposed market trials were to and shooting.” be based on the card form of payment. CrossCheck, Inc., a leading player in the IrFM project,

Page 23 built on the existing infrastructure to IrFM project members were well team. The wallet itself is actually develop the first working model of a into plans to expand on software loaded into the user’s PDA. financial transaction between con- CrossCheck’s test. Several teams of sumer and merchant. member companies, merchants and In practice, a consumer standing near banks set out to produce market trials an infrared-enabled POS terminal at Assembling a package including a that would test card-based payment the checkout stand with his or her standard point-of-sale (POS) device, initiation and settlement in a real PDA effects payment by beaming a an infrared adapter, a personal data world setting. digital credit card to the terminal. In assistant (PDA) and software com- the next few seconds, the POS termi- ponents developed in-house, the nal sends an authorization request, company executed a live check guar- Market Trials receives approval, records the sale antee transaction. and produces a receipt that gets sent • in2M Payment Trials: in2M Inc., back to the consumer’s PDA. The Emulating exactly the kind of headquartered in Salt Lake City, is transaction ends with an issued process that it manages daily building its market trials around the receipt (technically a transaction throughout the United States and credit card authorization and settle- record stored in the PDA). Canada, CrossCheck used its live ment system, consumers using per- production system for the tests, as sonal data assistants and test mer- Except for the fact that it is now reported in the Aug. 7, 2000 issue chants equipped with infrared accomplished with an electronic vir- (00:08:01) of The Green Sheet. adapters connected to in-store POS tual credit card, this kind of transac- terminals. tion is every bit like its predecessor This simple but powerful prototype in the plastic world. The “card” con- demonstrated unquestionably that a An in2M-style transaction is predi- forms to existing credit card data for- consumer handheld device could be cated on an electronic wallet holding mat standards. It is held in a wallet, used to generate a completely digital, one or more digital credit cards albeit an electronic wallet. The POS wireless financial transaction from placed there by, or on behalf of, a terminal sees exactly what it is used beginning to end. Within months, bank that is a member of the trial to seeing. Authorization and settle-

Page 25 ment, including receipts and state- be installed on a buyer’s mobile have been. ment transaction detail, remain the phone along with a digital version of same as before – for both buyer and a credit card. It is interesting to note The most distinguishing feature of merchant. here that while the consumer’s bank, ZOOP is that by using the mobile as always, issues a digital credit card, phone it is possible to disable the However, one major thing is differ- a cellular service provider can be financial function of the phone when ent: No paper is used to make the used to get it wirelessly inserted in it is stolen or lost. payment. the mobile phone’s electronic wallet. Once the digital credit card is insert- Incidentally, Harex IT already has In2M plans to field-test its payment ed in the mobile phone, the buyer is developed versions of this payment system model in the second quarter ready to make wireless payments. system that will make it possible to of 2002. pay not only merchants selling con- In the simplest version of a ZOOP sumer goods but also to pay for • Harex IT “ZOOP” System: transaction, the payment starts by bridge fares, highway tolls, vending Working in Korea, Harex IT has beaming credit card data to a special machines and airline tickets – to designed a prototype system that device comprised of an infrared name just a few options. ZOOP’s may be the most ambitious of the adapter and simulacrum of a credit first commercial appearance is market trials. It has targeted no less card that the merchant inserts into scheduled for the end of this year or than the city of Seoul and Singapore the store’s POS terminal “swipe” at the beginning of next year, with as the proving ground for a wireless slot. Then, following the same full national rollout in Korea in time (infrared) payment system. In addi- process as a plastic card swipe, the for the 2002 World Cup soccer tion to its broader scope, Harex IT terminal polls an authorization net- games in Japan and Korea. also is basing its methodology on work for transaction approval. The mobile phones as the consumer purchase is completed with a paper • C-SAM and Global eTelecom device. receipt for the consumer and a high- (GeT): These two companies are er balance on the credit card. The unique among the market trial devel- A piece of software, commonly merchant’s account is credited in the opers in that they are building a known as an electronic wallet, will same fashion as it normally would “checking system” based model. In

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So, what are you waiting for? RLC EQUIPMENT SALES 397 Herndon Parkway, Suite 5 Call 1-877-RLC-FAST Today. Herndon, VA 20170 • www.res-lease.com Page 26 their plans, the consumer will be When the transaction is completed, standing invitation to all stakehold- equipped with a Windows CE type the consumer will have an electronic ers to join its ranks in the task to handheld computer, and the mer- entry in a digital checkbook, a build a universally workable set of chant will be using a POS terminal receipt from the merchant and a standards. Lest anyone think they and check reader connected to an detailed line-item entry in a bank have no place in creating detailed infrared adapter (also known as a statement. Live trials are scheduled specifications, remember that a pro- dongle). for later in 2001. tocol can be successful only if it accommodates the practical and In a typical transaction, a consumer environmental needs of its proposed will activate an electronic checkbook Participation beneficiaries. in his or her handheld computer. As in the physical world, the con- Thus far in this series of stories about This means that consumers (meaning sumer’s bank will have previously IrFM, we’ve taken a survey of key individuals AND businesses), mer- supplied a set of “checks,” the big aspects of the project’s evolution chants (also individuals and busi- difference being that these checks from an idea in a white paper to the nesses), legal/regulatory bodies and are now electronic and reside in the beginnings of field tests with real global payment infrastructures can, client’s handheld computer. users of the proposed standards and and should, work hand-in-hand to associated components. The concept assure the operational aspects are With a few strokes of a stylus, a behind this work is compelling. It is represented in this evolving stan- buyer’s digital check will be com- nothing short of creating a world- dard. It is not too late. pleted and beamed to the merchant wide all-electronic, wireless pay- installation. On the merchant side, ment capability – a vision that any- In many respects, the work is just the digital check will be received and one will be able to pay for anything, beginning, and the need will contin- routed through the POS device to from anywhere in the world they ue to evolve well past the first intro- GeT for processing and forwarding might be. duction of the IrFM wireless pay- on to a clearing and settlement net- ments standard. Cat herders are espe- work. The IrFM project team has issued a cially welcome. Page 27

POS Portal Power for Smaller ISOs maller ISO shops love to maintain customer relationships Portal get an extra piece of the even after the merchant agreement is revenue pie, and it’s being signed, and it provides a storefront served by POS Portal. that ISOs set up when they establish POS Portal S their pricing and customer base. Via POSBuy, sizable residuals are paid By leveraging browser-based tech- out on all supplies, accessories and ISO contact: nology that brings value to the entire miscellaneous equipment purchases point-of-sale transaction supply Audrey Blackmon made by new, existing and non-pro- chain, POS Portal empowers small Phone: 916-563-7845 cessing merchants. E-mail: [email protected] and midsize ISOs to create incre- mental-revenue residual streams All supply and equipment requests from existing and future customer are transacted through POSBuy, Company address: bases. 4350 Raley Boulevard, Suite 100 including credit card payment processing for orders as well as imple- Sacramento, Calif. 95838 POS Portal opened in April 2000 in mentation of delivery. POS Portal Sacramento, Calif., and in that short Phone: 916-563-0111 does it all, and ISOs reap the benefit. Fax: 916-563-0112 time it has set up an infrastructure of Internet portals intended to send Web site: www.posportal.com The key to the program is its Web merchants to ISO-branded, Web- site, www.posbuy.com, and the based storefronts for transactional accompanying toll-free order desk. ISO benefits: supply needs. The idea was simple: As merchants log in or call to order, • Extra revenue for smaller shops enable ISOs to set up a supply store the POSBuy engine presents mer- • Supply store without all the costs of without all the costs and expense of chant pricing previously established carrying inventory carrying inventory and deploying by the ISO, calculates freight and delivery. The fruition of that idea is • No special software necessary sales tax, tracks orders and sends POS Portal’s latest and hottest prod- • Always accessible confirmation e-mails upon order uct, POSBuy. • Certain types of sales referred receipt and shipment. back to ISO Standard revenue streams are creat- The e-mails are ISO-branded even ed by ISOs signing up merchants though POSBuy originates them. and selling paper to processors for Merchants are specifically asked for transactions with the processor get- their ISO affiliation when ordering ting the benefit of supply orders, because POS Portal does not direct cable lines, etc. ISOs weren’t being market to an agent’s customer base. given the opportunity to resell to The merchant experience, whether their customer-base services, such as on the Web or via the call center, recurring terminal supplies (printer provides the merchant a positive, paper, toner, ink, etc.) – anything technologically advanced reflection that merchants use on an ongoing of the ISO. basis to facilitate electronic payments. POSBuy provides that oppor- Setting up POSBuy takes a matter of tunity. minutes and is free for ISOs. No special software is necessary, nor is any POSBuy is designed to help agents Page 28 special downloading required. The 2001), POSBuy attracted more than chase transaction – designating ISO applies for and receives an 40 independent bankcard resellers, where, when and how it will be administrator login at www.pos- many of whom are using the technol- shipped – and send an e-mail with all buy.com that allows the ISO to ogy to penetrate new accounts. the embedded tracking details back review direct costs from POS Portal, to the customer? If not, POS Portal manage merchant-level pricing, “From the early adopters of wants to be your new partner. determine what items can be ordered POSBuy, there are now four to five by merchants and view real-time we’re sending several hundreds dol- That new partnership has obvious residuals. lars a month to just for supply-order and not-so-obvious advantages. One residuals,” says Buzz Stryker, not-so-obvious advantage is the fact POS Portal ships terminal stickers to President and founder of POS Portal. that POS Portal works closely with the ISOs, who distribute them to “Using our product has led them to ISOs to ensure that certain types of every merchant they service as well new processing relationships with sales are referred back to the agent. as those they meet. Printed promi- merchants they had targeted, espe- If a merchant wants to purchase a nently on the sticker is the ISO’s cially those merchants who didn’t new terminal, POS Portal checks to login and company name along with want to change processors. Our see if the ISO has a setup store for POSBuy’s toll-free number and Web product makes the ISO look very new equipment. If not, POS Portal address. Merchants purchase goods technologically savvy. We make apprises the ISO of the potential sale. on their credit card from POS Portal ISOs look as big and powerful as Now that’s a partner. through the Web site or call center, Amazon.” and POS Portal remits residuals from “We can fill all types of orders,” says those sales to the ISO on a monthly Ask yourself: Does your organiza- Stryker. “We ship complete lines of basis. tion have the ability to take an order, consumable supplies, everything quote what freight costs will be, under the sun from 1,500 different The popularity of this program is offer a choice of shippers, do the line items of POS terminal supplies evidenced by the fact that in its first authorization while the customer to everything that makes them four weeks on the market (in March stays on the line, complete the pur- work.” Page 29

POS Portal’s long established net- Just how much money can POS merchants. POS Portal also boasts work of equipment contacts through- Portal make for ISOs? ISO gets their comprehensive, in-house technology out the community substantiates spread over the POSBuy rate, minus – nothing is outsourced. All POS Stryker’s claim. POS Portal honors the fixed rate of 5 percent of the Portal products and services have all manufacturers’ warranties, for retail amount to cover most of the been developed, provided and main- both new and refurbished equipment. processing costs incurred by POS tained internally. POS Portal even sells direct to ISOs Portal. The standard residual is the who prefer their own resell program buy rate, net the 5 percent retail POS Portal’s long-term plan is to for merchants and maintain their amount. build on its staff and services to own inventory base. attract investors. It sees itself at the All well and good, but what happens top of the innovation chain. In fact, “There is no similar product from when the POSBuy Web site is inac- one of those innovative services is anyone else,” says Stryker. “We want cessible? “We went live 1 1/2 years POS Portal’s Auction Service. to provide ISOs with the most inno- ago and have never gone down,” Addressing another channel – name- vative tools that they haven’t had Stryker says. And, of course, when ly, distributors – it allows POS Portal before. We love to work with small all else fails, one can use the tele- to broker out large quantities of used and midsize ISOs. They are unique phone. Seriously, though, POS Portal equipment. It’s an industry eBay, in the type of business they provide systems are operated in highly marketing excess and/or obsolete and have needs the larger ones don’t redundant, third-party-server envi- inventories. have. We love their personality. ronments. POS Portal maintains both Their business is closely related to primary and backup systems with POS Portal has 24 employees, and its their family. They are their compa- detail. top tier of management has 36 years nies. They represent themselves, and of collective equipment-distribution we can provide them with extra It takes its customer service just as experience in the ISO channel. One income. We enjoy helping people seriously, even assigning reps to deal of its top vice presidents is newly make money.” exclusively with ISOs and providing recruited industry notable Audrey a complete separate support desk for Blackmon, VP ISO Channel Sales.

Page 31

Building a Better E-commerce Site

SOs everywhere are clamor- from the premise that anyone who knows their business and under- Miva Corp. ing for e-commerce solutions that not only answer all their stands a browser can build their own I merchant needs but also make Web site. money. From a humble html script- ISO contact: However, for those professionals Zoltan Szabadi ing-based beginning to a reposition- ing around a more lucrative e-com- who missed Computer 101, Miva Phone: 858-490-2570, ext. 162 merce environment, one company also offers a base of hundreds of E-mail: [email protected] has clearly emerged from the pack to developers that provide specialized provide unparalleled software, tech- services for those less technically Company address: nology and services. Its name is inclined merchants. Miva does the 5060 Sante Fe Street Miva – inspired from a book of best of both worlds. San Diego, CA 92109 Egyptian hieroglyphics. Phone: 858-490-2570 How exactly does Miva do it? Fax: 858-731-4200 With a name easy to pronounce and Consider its unique products and services. Web site: www.miva.com no significant meaningful reference to the e-commerce marketplace, Miva is defined by the vision of its Miva Merchant makes building and ISO benefits: co-founders, Joe Austin, President/ managing consumer and e-business • Instant merchant storefronts CEO, and Troy McCasland, catalogs as easy as point, click and • Referral fee on every account Executive Vice President. From its fill in the blanks. Its browser-based • Free 30-day trial period inception in 1996, they devoted long management lets merchants control • Host is tailored to merchant’s needs hours to engineering and re-engi- all aspects of their storefront, from product maintenance to category • Comprehensive e-commerce package neering, configuring and creating. The results: Miva Merchant, Miva management to order and credit card Now, Miva 4.0, Miva 3.0, Miva processing. Order, Miva Empresa, Miva Commerce Server, Miva Script and Miva Now is the storefront network Miva Mia. providing instant online access for merchants and significantly reducing “We looked at the marketplace and the time and upfront costs associated knew we could build it better,” with building an e-commerce site. It Austin says. also offers ISOs a risk-free way to increase sales of their merchant serv- And so they have. ices.

Miva was designed from the ground ISOs can attract new merchants with up to specifically meet the needs of a compelling message: “Build your small- to medium-size merchants, store now, start selling immediately the core focus of the company. A – first 30 days free!” New merchants storefront-development management connecting to Miva Now can register system enabling anyone to build a and begin building their storefront in robust e-commerce suite using noth- less than five minutes. ing more than a browser, Miva works Tasq.com

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After 30 days, upon merchant favor- storefront for immediate transac- Miva Now is the shell that wraps able evaluation, the new merchant tions. In return, the merchants get 30 around Miva’s star attraction – Miva and the completed storefront are days of e-commerce transactions at 4.0. automatically transferred to a Miva no cost. hosting partner, and the ISO is paid a Miva Merchant 4.0 is the hot, $100 referral fee. In addition to the After the free 30-day trial period, upgraded software that runs on the ISO referral revenue opportunity, the with a click of a button the entire Miva Now network. Allowing mer- system enhances the marketing storefront transparently transfers to chants to go online while providing efforts of ISOs by reducing customer one of Miva’s hosting partners. account management, catalog man- acquisition costs and accelerating Merchants then pay a monthly host agement, merchandising order ful- online transaction processing fee at a very competitive rate. Miva fillment and reporting tools, Miva tags all merchants going into its sys- 4.0’s new features include affiliate For ISOs to make Miva a value- tem with specific hosting partners on program capability (a special tool added feature in their merchant-serv- a round-robin basis. providing for the merchants them- ices packages, they must have a Web selves to create their own affiliate site. For those ISOs who do not have “While the hosts are comparable, programs by linking other businesses Web sites, Miva gladly will refer any each one is slightly different, so we to the merchant’s storefront), inven- ISO to a qualified Web designer. strive to make the best match,” tory tracking, simple administration Austin says. “For example, if an interfacing through easy-to-use wiz- With a Web site, an ISO establishes ISO’s merchant is card service-ori- ards, attribute templates and instant an affiliate code with Miva by going ented, we would not associate that site traffic and sales statistics track- to Miva’s site and filling out an merchant with a host other than one ing – especially valuable to mer- application. Miva gives the ISO a that supports card service. We care- chants who have that need to know code to drop into his or her Web site. fully pre-select a host for each mer- now. ISOs can then go to each of their chant.” merchants, have them fill out a form Miva 4.0 also integrates the leading online and, within seconds, set up a Customizing merchant storefronts, payment-processing services,

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Page 35 including Card Services, VeriSign, put up another selling location – an “We own 95 percent of the small and Paradata, CSI Linkpoint and e-commerce storefront. Miva Now is midsize business-hosting market,” AuthorizeNet. Miva Merchant 4.0 is the sales tool for ISOs to get a piece says Austin. “We don’t see anyone distributed with Miva Empresa, the of that 3 million online merchant else doing this today. Miva is the engine that enables Web servers to market. dominant player by a long shot. Even run Miva applications on a variety of our competitors identify us as num- platforms, including BSDi, Cobalt As for Miva 4.0, there are two ways ber one. If you ask our competitors RaQ, Cobalt Qube2, DECUNIX, to acquire the Miva Merchant soft- who is the one to beat, they all say FreeBSD, Linux libc, Windows NT / ware. If a merchant already has a us.” 2000, SCO, SGI IRIX and Sun server, the retail price to drop in Solaris. Miva 4.0 is $595. Of course, the According to Austin, “If you were to more economic avenue for the mer- take the top 40 hosting companies, According to Miva, small business is chant is to come in through Miva grading them by number of booming, and many of these new Now via an ISO, build a storefront domains/customers, 36 of those ventures are establishing an online using Miva software and transfer to a companies are using Miva (and) 30 presence only. Miva estimates that host in 30 days. use Miva exclusively. In terms of the number of small merchants on percentage of hosts, if you were to the Internet will increase 40 percent Miva Now is free to merchants take Miva’s total number of hosts, by the year 2004, to almost 3 million because the host pays the licensing we have the single largest collection online merchants. fee. The only cost to the merchant is of hosts – 4,000 hosting companies. a monthly host fee, after 30 days. For Of those, 800 hosting companies use Once merchants go online, they have merchants already using Miva 3.0, Miva software.” Miva has 60,000 a real incentive to use their credit there is a $129 upgrade fee to 4.0. users. card account. Miva Now is a sales tool for ISOs to help sell merchant Austin says his company is in a class Can anyone take advantage of Miva accounts and also pick up a residual by itself, literally. Now? “No,” says Austin. “We have a account by enabling merchants to restriction. In our license agreement

800.999.8674 tpayment.com

Page 37

software, our customers and our “We are reaching out to ISOs to “We have been working with partners. Miva’s partner programs ISOs since the beginning,” incorporate technology, payment help them form partnerships to Austin says. “We are reach- gateways, complementary marketing better enable their merchants. ing out to ISOs to help them services builders, merchant service form partnerships to better providers, consulting partners, Web We view ISOs as very much a enable their merchants. We site builders and training partners.” peer to our other partnerships.” view ISOs as very much a Headquartered in San Diego, Miva peer to our other partner- has 40 employees after its first inter- Joe Austin, President/CEO ships. It is very exciting for Miva Corp. national expansion, to Germany in us to be speaking directly to December 2000. Miva also is work- the ISO organizations. Miva ing on next-generation products we state that we will not service any is a very customer-service-centric geared toward the service industry – site that offers products, service or organization. We like ISOs because restaurants, beauty shops, etc. information that is objectionable, they touch the customer directly. illegal, offensive or expresses Their size doesn’t matter. What mat- “This industry needs specialized hatred.” ters is that they are a quality organi- software,” Austin says. “We have zation that gives their customers the new marketing software to better Miva won’t offer support for soft- same service as we do.” market their storefronts. We have ware these merchants have pur- Miva’s goal is to have every ISO new development tools that will help chased. “We reserve the right to who has a Web site in the market- developers and consultants build bet- refuse any merchant,” Austin says. place become a supporter and suppli- ter merchant storefronts … and ulti- “We will report an illegal site that er. mately better relationships.” comes into our tech-support center.” “We can handle it,” Austin says. “We For more information, visit What Miva is most proud of is its are very, very good at this. We mon- www.miva.com. longstanding relationship with ISOs. itor our systems 24/7, supporting our

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to current information without frus- and may be programmed for more Calling All trating delays or item confusion advanced applications, such as time while reducing the need for manual and attendance, manager help/call Customer price checking by in-store personnel, button and area store locator. The Service Agents thus making shopping a more satis- MicroKiosk also will work with fying experience. And as every good existing installations of Symbol PCK ISO knows, happy customers are 9100s and their applications. t a time when customer repeat customers. service seems to be in cri- “The MicroKiosk is like having an sis mode, one company is Other benefits include revenue-gen- automated electronic assistant in the looking at alternative solu- erating electronic merchandising by aisles: Retailers can expect greater A scrolling advertising and “on sale in-store productivity and efficiency tions. Symbol Technologies Inc., winner of the National Medal of now” messages across the display with personnel attending to mer- Technology and a leading provider for shoppers to easily see. In addi- chandise, displays and store manage- of mobile data-transaction, in-store personnel can ment, while customers can experi- tion systems, has intro- immediately access infor- ence the immediate gratification of duced the new Symbol mation such as inventory getting the information they need MicroKiosk MK 1000, status, item locations and when they want it,” said Brian an automated self-service other information con- Viscount, Vice President, Scanner price verification and tained in the store main- Product Marketing, Symbol electronic merchandising frame. Symbol even offers Technologies. terminal. replaceable placard space for additional stationary For more information, visit advertising and in-store www.symbol.com. Suitable for virtually any messaging. retail environment, the MicroKiosk MK 1000 is The MicroKiosk features a way to get prompt and accurate the latest rotating omni-directional Pairing Up to customer service when floor repre- laser bar code scanning technology, sentatives are helping other cus- 32-bit Motorola microprocessor, Empower tomers or can’t be found. What a international language support and Merchants concept – customer service without choice of host connectivity options, having to hunt down someone to pro- including Spectrum24 11 Mbps vide the service! wireless LAN and hard-wired fully integrated retail ful- Ethernet support. Customers simply present an item fillment suite, including for price verification to the point-of-sale, e-com- Four programmable function keys merce, catalogue, store MicroKiosk’s integrated bar-code provide for additional customer- A scanner and the MicroKiosk lists the and head-office functionality, is the service interaction options, such as latest offering from two of the pay- most up-to-date information, includ- item location, stock check, in-store ing product description, price, recent ment-processing industry’s promi- messaging, frequent shopper status nent players. price adjustments and special pro- and seasonal/clearance promotional motions, if applicable. The fixed- messaging. mount terminal can be placed in Informix Software, the wholly remote locations and in store aisles. The MicroKiosk is software-pro- owned subsidiary of Informix Corp., grammable through Symbol’s wire- and Apropos Retail Management The functionality philosophy is sim- less network management system Systems, a leading provider of fully ple: Customers benefit from access integrated software systems for mid-

Page 41 size chain retailers and e-tailers, ers high-performance database sys- recently announced the release and “The power of Apropos technology tems in markets including retail, rollout of the Apropos Ascent suite coupled with Informix Software’s financial services, government, of products. powerful database technology gives health care, manufacturing, media a competitive advantage to all of our and publishing, and telecommunica- Powered by Informix Software’s customers,” said Kent McNall, tions. Informix Dynamic Server (IDS), President of Apropos. “Informix Apropos Ascent provides a compre- Software and Apropos are able to For more information, visit their hensive suite of services for retailers streamline the needs of retailers, giv- Web sites, www.aproposretail.com wanting a single, integrated fulfill- ing them options that were not avail- and www.informix.com. ment solution. In the past, retailers able before.” have built independent fulfill- Founded in ment systems for 1989, Apropos It Keeps Going store POS, cata- Retail logue and e- Management and Going commerce solu- Systems has and … tions that have functioned separately become a leading supplier of from one another, creating silos of advanced technology retail software retail functionality rather than a fully and system solutions to the growing SOs had better start stocking integrated retail system. The lack of market of small to midsize chains, up on those energizer batter- integration created inconsistencies in from five to 250 store locations. ies. A mobile POS system that pricing and inventory tracking. Apropos provides complete software is battery powered has hit the systems for growing chain retailers I marketplace. “Apropos has been able to leverage who want to be more profitable and the customizable and extensible fea- productive. tures of Informix Dynamic Server to Wincor Nixdorf, Inc., a provider of give their customers a distinct Apropos is a suite of retail applica- IT products and solutions to the retail advantage over the competition,” tions built on the advanced SQL and banking industries, recently said Brian Staff, Vice President of database environment. Apropos pro- introduced the BEETLE/Mobile Marketing at Informix Software. vides a complete, one-stop solution POS system, which delivers extend- “With the help of Informix Software, from POS to back office to e-com- ed battery life and serves multiple Apropos Ascent unifies what tradi- merce to accounting and data ware- functions in retail stores. It incorpo- tionally has been a three-pronged housing. rates a standard BEETLE system approach to retail fulfillment.” with DC power supply mounted on a Informix Software is a provider of cart and is powered by a standard 12- With the extensibility and scalability database-management systems for volt gel cell battery, delivering up of IDS, Ascent is able to provide data warehousing, transaction pro- to17 hours of continuous operation. services in credit card billing, ship- cessing and e-business applications. The Mobile POS seamlessly con- ping, receiving, purchasing and With more than 100,000 customers nects to retail store networks using order tracking. worldwide, Informix Software deliv- standard wireless LAN components Page 42 from Symbol Technologies. and on-site support. Worldwide, “The Mobile POS is a versatile sys- Wincor Nixdorf is the third-largest Wincor Nixdorf’s BEETLE family tem that can meet a wide range of provider of POS systems and auto- of POS systems addresses the com- needs in a retail store,” said Jeff mated teller machines, with more plete spectrum of customer touch Soisson, Vice President, Wincor than 500,000 systems installed. points in the retail store environ- Nixdorf Retail Solutions Group. ment. With solutions that encompass “For example, Mobile POS systems Its stable of solutions includes: thin-client POS terminals, lean- and can be deployed as additional cash thick-client POS systems, kiosks, registers in high-traffic areas on • Point-of-sale (POS) systems lottery terminals and mobile POS weekends, allowing a retailer to • POS peripherals devices, the BEETLE family is a bring the store to the customers and • POS applications comprehensive POS product line. greatly increase checkout times. • In-store kiosks/self-service merchandising An open design supporting common- “The Mobile POS can also be con- • Back office hardware ality of components across the entire figured to perform crucial back- • Store automation design, integra- BEETLE family substantially sim- office functions such as inventory tion and project management servic- plifies software deployment and and merchandise management. No es hardware maintenance, keeping other portable POS system offers this • On-site, advanced exchange and costs down and productivity high. combination of flexibility, function- depot maintenance services More than just PCs, BEETLE sys- ality and long battery life.” tems are rugged and designed to Wincor Nixdorf operates in 40 coun- withstand the rigors of retail envi- Wincor Nixdorf is one of the fastest- tries and has more than 3,600 ronments. All systems include stan- growing providers of IT products employees. Its corporate headquar- dard retail interfaces, accept a wide and solutions for the retail and bank- ters are in Germany, and its North range of peripherals and are compli- ing industries. Wincor Nixdorf’s American headquarters are in Austin, ant with established retail software offerings include hardware, applica- Texas. For more information, visit standards. tion software, professional services www.wincor-nixdorf.com/usa. Page 43

Global Payments Awards oped using biometrics for processing Hypercom electronic financial transactions. Indivos’ service allows consumers to Global Payments Inc, a provider of access their bank and debit accounts. electronic processing services, has Customer services – such as online awarded Hypercom Corp. an debit, offline debit and credit without unprecedented 18-month contract for requiring the user to directly use or as many as 7,500 of Hypercom’s ICE possess plastic cards, paper checks, card payment terminals. This agree- key fobs or passwords that can easi- ment is the direct result of the esca- ly be lost, stolen or damaged – also lating demand for multifunction, provide merchants with reduced risk touch screen-based card payment ter- and lower costs in handling cash and minals. Under the terms of the agree- checks. ment, Global Payments will deploy Hypercom’s ICE terminals, including For any transaction processed as an the new ICE 5700 with its integrated electronic credit or debit, the Indivos motorized check reader, to thousands technology provides a user, whether of merchants in the United States an individual or a business, with the through its direct, financial institution ability to pay for goods and services and Independent Sales Organization either at the retail point-of-sale (ISOs) channels. (POS), at an automated teller machine (ATM) or over the Internet Hypercom’s ePOS-infocommerce ICE 5700 device mag- using only the security of fingerprint authentication. netically reads the MICR line on a check and supports Indivos’ patented capability provides a method and device dial-up to Global Payments Check Services for fast verifi- for tokenless authorization of an electronic payment cation against negative files or check guarantee via posi- between a service provider and a consumer using an elec- tive online authorizations. The ICE 5700 offers all of the tronic third-party indicator. operational features of Hypercom’s popular ICE 5500 as well as the integrated motorized check reader, which sup- $5 Chips by 2003 ports a variety of MICR formats with high reading accura- Cambridge Silicon Radio, the world’s leading manufactur- cy. er of Bluetooth chips for short-distance wireless networks, will have chips on sale for less than $5 by 2003. It also is Wachovia, Bank One Call It Quits working on a single chip that will combine the world’s two main short-distance wireless networks, Bluetooth and Wachovia Corp. and Bank One Corp. will end their agent WiFi (also known as 802.11b). When chips are ordered in banking relationship in early October. Bank One agrees to large quantities, Cambridge currently sells them at sell back to Wachovia approximately $1.3 billion of con- between $8 and $10, which limits usage to expensive elec- sumer credit card receivables of customers who presently tronic products. The industry anticipates that if the price have a Wachovia retail banking relationship. Under terms drops below $5 a chip, Bluetooth will be used in most of the agreement, Wachovia will pay Bank One a $350 devices. million termination fee as well as reimburse Bank One for the premium paid for the repurchased receivables and con- Four years after its public launch, Bluetooth technology is version costs related to the repurchase. The termination is finally making inroads in the electronics industry. This not expected to impact Wachovia’s earnings. autumn it debuts in products such as mobile phones, printers, portable PCs and video cameras from dozens of man- Both the premium, as well as the termination fee, will ufacturers. These devices have a radio chip in them, one reduce Bank One’s purchase price for the remaining port- square centimeter in size and two millimeters thick, which folio, and therefore the earnings impact will be realized replaces cables by creating a secure radio connection. over time. Bank One still expects the primary Wachovia More than 2,000 companies have adopted the open portfolio to add approximately $100 million after tax to its Bluetooth-standard. Cambridge provides the chips for 2002 earnings, as previously announced. about 50 percent of all Bluetooth-enabled products currently on sale. Indivos Wins Patent Acquisitions Indivos, formerly known as VeriStar Corp., has been awarded U.S. Patent No. 6,269,348 for technology devel- Hewlett-Packard and Compaq Computer Corp.

Page 45 announced a definitive agreement to merge, creating a First American Payment Systems L.P. and Accelerated new $87 billion global company. The combined entity, Card Company Inc. have entered into a three-year credit which will retain the HP name, will offer the industry’s card processing agreement. The total value of the acquisi- most complete set of products and services and will carry tion is valued at more than $1 billion in processing vol- forward both companies’ commitment to open systems ume. Accelerated Card Company (ACC) has been in the and architectures. The combination of these two giants process of searching for a strategic business partnership will create a workforce of 150,000, making the new entity for the last few years. Its track record of providing pre- about the size of IBM with products not only in the per- dictable results, quality of services and flexibility were the sonal computer business but also in computer servers, major factors in the merger. First American Payment, printers and high-tech services. founded in 1990, provides services for more than 25,000 merchants and operates more than 280 ATMs nationally. Certegy Check Services Inc, a subsidiary of Certegy Inc. Accelerated has been an ISO/MSP since 1992 and special- (formally Equifax Check Solutions), completed the acqui- izes in MOTO, direct marketing, e-commerce and B2B sition of Accu-Chek Inc. for $25 million in cash. Accu- merchants. Chek is a leading provider of third-party check collection services, generating approximately $9 million in annual ActivCard, provider of smart card and digital identity revenue. Certegy Check Services is the premier provider provisioning products and technology, has acquired of check risk management, authorization and loss preven- Authentic8 International, a privately held, Australian- tion services to retailers, supermarkets, e-commerce, gam- based company offering technology and services required ing and check-cashing establishments worldwide. Accu- for banks and service operators to deliver managed digital Chek, founded in 1989, primarily provides third-party identity solutions. Under the terms of the agreement, check collection services to national retailers and licenses ActivCard has purchased all outstanding shares and stock its system to those who wish to maintain collection opera- options of Authentic8 for $15 million. As a result of the tions in-house through its Private Label program. Certegy acquisition, ActivCard expects to be able to offer large Inc. provides credit, debit and merchant card processing, telecommunication and Internet service operators a digital e-banking, check risk management and check-cashing identity solution, which will enable it to deliver managed services to financial institutions and merchants worldwide. Internet authentication services.

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will utilize Global eTelecom’s new proprietary, customiz- MBNA America Bank N.A. has acquired Fidelity Trust able, XML-based, electronic check processing technology. Co.’s consumer credit card portfolio. MBNA is opening a Central Mutual, rated A+ Superior by A.M. Best, is the Mid-Atlantic headquarters in Hunt Valley and, because of parent company of the Central Insurance Companies. the merger, would pick up about 300,000 accounts and Central Mutual was incorporated in 1876 and serves cus- $450 million in assets. The deal was expected to close in tomers in 15 states. It will utilize a complete custom serv- September, with the transfer of accounts in October. ice package of Global eTelecom’s electronic check payment products. Global Investment Financial Group Inc is acquiring all rights, title and interest in an integrated Web-based rev- Merchant Services Inc. (MSI) has formed an alliance enue transaction system from Netgenetix Media Inc. for with Thales e-Transactions (formerly Dassualt AT of $150,000 payable through the issuance of 1.5 million com- America). This new partnership will allow MSI to offer mon shares of Global Investment stock. This integrated the Talento Payment terminal to all MSI offices nation- system, with an unlimited user capacity, will feature online wide. MSI has been trained and certified to set up, deploy subscriptions, credit card processing, alternative payment and support the payment terminals. methods, billing and bank reconciliation. It also will provide customer support, automated e-mail notification sys- E-Commerce Exchange (ECX) has entered a cross-pro- tem and online statement review. The system is integral to motional partnership with Filings Inc., which provides Global’s commitment to penetrate the North American incorporation services to small-business owners. The com- market as an Internet Service Provider. panies will cross-link their Web sites to provide customer information about the other’s services.

Alliances Paytrust online bill-management services and Spectrum Global eTelecom announced that Central Mutual EBP, LLC, a bank consortium that facilitates the Insurance Company has chosen the company to provide exchange of electronic bills and payments, have formed a its electronic check processing services. Central Mutual strategic alliance whereby Paytrust will join Spectrum as a

Financial Technologies Inc

New Neg Supplied Page 47 consumer service provider (CSP) partner. With this served as Director of Applications Development and alliance, Paytrust will certify its CSP platform to Business Operations for the e-Solutions division of Spectrum’s payment and presentment network, providing Affiliated Computer Services (ACS). His background Spectrum member banks the ability to offer their cus- includes application and database experience on multiple tomers a complete, consumer-focused online bill-manage- platforms, implementation and rollout of enterprise sys- ment solution and allowing Paytrust to receive electronic tems, and expertise in project management, consulting and bills and issue electronic payments via the Spectrum net- account management for such companies as Texas work. Instruments, Bank One, JCPenney, Williams Communications and American Electric Power. Federal Liaison Services Inc. (FLS) and BankServ recently announced a partnership to provide Web-enabled Sharon K. Davis has been named Director, Business automated clearing house (ACH) payment capabilities to Development for Finance Company Services (FCS), a the nation’s employers. The partnership will allow U.S. division of Textron Financial, which works with the small businesses to make efficient and secure payroll tax pay- to midsize independent lending community. In her new ments directly to government agencies through the position, Davis will be responsible for developing new BankServ ACH network, headquartered in San Francisco. client relationships and for ongoing portfolio management. She also will seek to cultivate relationships with venture capitalists, investment bankers and others in the Promotions & Appointments capital marketplace. Before joining FCS, Davis was a Steven L. Sweeney has been named Vice President of commercial lender at Fifth Third Bank in Columbus, Ohio, Development at Federal Liaison Services Inc. Sweeney, a where she specialized in serving clients with annual rev- 14-year veteran of IT management and consulting, will be enues of $10 million to $75 million. Previously, she responsible for the development and management of Web- worked as a Vice President, Commercial Lending of based product development, conversion of client/server Wheeling National Bank, where she successfully under- solutions to the Web platform, new IT business develop- wrote and managed a $7 million portfolio of small-busi- ment and personnel management. Sweeney most recently ness relationships.

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ting your prospect finish complet- confidence and sales. Do This, Don’t ing what they are saying before • Talk Turkey. Now’s not the time to you start speaking. hover around the final step. You’ve Do That • DO keep your focus on what is had numerous discussions, answered being said during the presenta- all questions and created a package he sounds of summer are tion. tailor-made for your merchant. behind us. Time to take • DON’T think about how you’re You’ve established trust. Zero in on off the tanning lotion and going to respond while the exactly what you can deliver, how don the more professional prospect is still talking to you. beneficial it will be, when it will start T • DO take a proactive approach to and why your prospect can’t afford mode of dress. While you’re packing up the beach chairs and barbeques, your established clients by con- not to seal the deal with you. Ask for take a moment to refresh your selling tacting each customer monthly the order! sense. The following are small just to say hello. • Encourage. Your prospect needs reminders to stimulate new sales: • DON’T forget that by being proac- your assistance in making the smart tive instead of reactive, you’ll decision. Help them see their need hear about an issue before it for your services. Convince them • DO think about the “why” behind becomes a problem. you have the solution to that need, at “what” you are selling. • DO remember you can’t be all the right price. And, finally, show • DON’T sell it if you haven’t found things to all merchants. them they need you right now! a good “why.” • DON’T try to be. • Make it Easy. The less the • DO make your presentation as long prospect has to work, the more as it needs to provide enough inclined he or she will be to sign on information. the dotted line. Provide all the paper- • DON’T let your presentation get Let’s Shake work. Include all rates, dates, special boring. terms, etc. Provide your contact • DO use a prospect’s knowledge of Hands on It numbers for anytime of the day or other products and services to night. Don’t forget to provide a sce- form comparisons. nario – paint a dramatic and detailed • DON’T forget to show the contrast hat successful sales professional doesn’t picture of what will happen the and how your solution is not only moment your services kick in. Make different but better. know that closings begin with the initial it easy for your prospect to visualize • DO use analogies to explain and W doing business with you. simplify complex selling points. contact? But do you know how to get from initial meeting to closing? • Maintain Focus. A successful clos- • DON’T forget your audience must ing is more than just making the sale. be familiar with what you are While it may be the natural conclu- sion to a well-presented and scripted It is about meeting the need. Stay talking about for your analogies consistent throughout the process to work. pitch, closing a sale can be riddled with anxiety, uncertainty and angst. with an approach geared toward • DO use empathy to understand a ongoing solutions and support, not prospect’s objection. Consider the following before you ask for your next signature: just racking up contracts. • DON’T ignore the fact that empa- • Recognize the Signs. You’re head- thy requires understanding the ing down the victory lap if you hear merchant’s situation, feelings and • Adjust Your Attitude. What are your prospect ask questions about motives. your emotions saying to your price, installation time, guarantees. • DO remember that empathetic or prospect? Emotions can jeopardize a Are they making positive statements active listening requires you to sale if they exhibit nervousness or about your products? Are they talk- maintain a receptive posture with dread. A prospect may read that as ing about what they could do with direct eye contact. lack of confidence, even dishonesty. your products? Has the communica- • DON’T forget to be patient by let- A positive persona promotes self- Page 50

tion climate relaxed? You can see the checkered flag! • Shut Up and Listen. The more your prospect talks, the more control you’ll have over the closing. Let them talk themselves right into that sale. Remember, God gave us two ears but only one mouth for a reason. • Follow Through. A closing is simply the last, logical line to cross in a carefully coordinated sequence of events. Maintain professionalism, honesty and realism throughout 28th Annual Computer Security the entire sales process from the first day to today, and your closing will slide smoothly into place. Conference & Exhibition

Highlights: Setting the industry standard for 28 years, this event is the largest and most comprehensive in the industry. The program features more than 130 sessions focusing on Wait for the Beep Internet/intranet/extranet security, VPNs, PKI/cryptography, NT security, WWW, network intrusions and countermeasures, distributed denial-of-service attacks, response teams, and s there anything more frustrating than gearing up to management and awareness issues. make that sales call, dialing the number and getting When: Oct. 29-31, 2001 the dreaded voice mail? An ISO’s time is money, and Where: Marriott Wardman Park, Washington, D.C. rather than waste those few minutes leaving a message Registration Fees: For CSI members, one-day pre-seminar, $345; I two-day pre-seminar, $745; conference, $1,095; two-day that won’t result in revenue, consider the following before post-seminar, $745; three-day post-seminar, $1,345. For non- you place that next pitch over the phone. members, one-day pre-seminar, $395; two-day pre-seminar, $895; conference, $1,295; two-day post-seminar, $895; three-day post-seminar, $1,495. • Be clear about your immediate message goal. All you How to Sign Up: Phone Patrice Rapalus at 415-947-6370, e-mail want is a return call. Don’t try to pitch your products, detail [email protected] or visit www.gosci.com. your services or close the sale in 10 seconds. You just want to advance the ball down the field, not score a touchdown. Developing Innovative • Do your homework before you call. What do you know Smart Card Schemes Conference about the person you’re calling? Is this individual the decision-maker or just a conduit to the decision-maker? Dig Highlights: Following the recent developments in the international before you dial. smart card industry, SMi has identified the need to provide a forum where the latest opportunities and critical issues will be • Make a connection. Find a bridge to the person you’re addressed. This includes the resulting Smart Card Charter calling. Drop a name of a mutual acquaintance, an organiza- (SCC), focusing on further development and deployment tion you’re both members of, perhaps the school your kids plans. The conference also will discuss new generation smart attend. Personalize your phone message. cards and international efforts on standardization. This event • Be brief. Epic soliloquies are Shakespeare’s specialty, not will bring together the key public- and private-sector organizations in the UK and the EU who are leading the develop- the successful salesperson. ment of the smart card market. This is your opportunity to dis- • Be upbeat. Attention goes where energy flows. But be sure cover the commercial and financial dynamics of the smart not to be obsequious or attention quickly will turn to annoy- card industry from experts involved in existing projects. ance. What’s more, this event is an ideal forum for networking with • Be concise. Your caller will be more likely to get back to industry peers and leaders. When: Nov. 19-20,2001 you if he or she knows the conversation will be confined to Where: The Hatton, London. a clear-cut topic. Ask just one specific question. Once you’ve Registration Fees: Delegate fee 1099 pounds (excluding VAT); got them on the line, then you can branch out. save 100 pounds when booking conference and workshop • Speak slowly. Leave your return phone number slowly and together. Conference proceedings audiotape and documenta- clearly. Just think of how many messages you’ve had to tion, 500 pounds; documentation only, 300 pounds. How To Sign Up: Phone +44 (0) 207 827 6000, fax +44 (0) 207 replay to catch the number. And even more obvious – make 827 6001. Web site, www.smi-online.co.uk/conferences. sure you leave the right number! • Offer return options. In addition to a phone number, leave your e-mail address. E-mails can be easier, less threatening and more conducive to creating a positive exchange not lim- ited to 30 seconds or less. Good Selling!

Paul H. Green Page 51

The Resource Guide has Cross Country Bank DEBIT TRANSACTION RLC Equipment Sales grown to accommodate (302) 326-4200 x29112 PROCESSING (877) 752-3278 increased interest! First American Pymt Sys Schlumberger Sema (888) 603-0978 CashLane (800) 732-6868 x202 To add your company to First Bank of Beverly Hills (800) 325-2862 TASQ Technology our expanding listing, (800) 515-1616 x5429 (800) 827-8297 call Alex Horvath at First Western Bank Teertronics, Inc. 800-757-4441 today. EFT-ACH SETTLEMENT (800) 966-4392 x1500 SERVICES (800) 856-2030 Humboldt Bank Merchant Thales e-Transactions, Inc. ATM/SCRIP ISOS Services/ATM 1st American Payment Proc. (888) 726-3900 LOOKING FOR (877) 635-3570 (480) 785-2262 Universal ATM Network AGENTS Imperial Bank Network 1 Financial, Inc. (800) 274-5965 (800) 790-2670 (800) 261-0240 VeriFone Finance, Inc. ATM Merchant Systems National Processing Co. (800) 694-0269 (888) 878-8166 (800) 672-1964 x 7655 EQUIPMENT Vital Merchant Services ATM SYSTEMS, CORP. Retriever Payment Systems (800) 348-1700 (800) 417-3201 (800) 376-3399 Assoc. Terminal Mgmt (ATM) Grp Cash Resources, Inc. (877) 286-4768 FREE ELECTRONIC (800) 214-1840 ATM Group CA$HWAVE / E*TRADE ATM CHECK DRAFTING CHECK RECOVERY SERVICES (877) 286-4768 (888) 227-4350 Automated Transaction Tech. Chexcollect.com Data Capture Systems, Inc. CFI Group (888) 454-1210 (631) 691-0666 (800) 888-1431 (888) FON-CHEX BancNet Electronic Cash Systems, Inc. (713) 629-0906 Checks by Phone/By Web HIGH RISK MERCHANT (888) 327-2864 CardWare International (561) 998-9020 PLACEMENT EPX (740) 522-2150 (302) 326-0700 CDE Services CHECK GUARANTEE/ Merchanthawk.com E-Z Cash ATM (800) 858-5016 VERIFICATION (888) 870-7623 (888) 823-9286 Electronic Payment Systems LLC Financial Technologies, Inc. CrossCheck, Inc. (800) 863-5995 (800) 523-2104 ISO RELATIONSHIPS (800) 654-2365 General Credit Forms, Inc. NationalLink AVAILABLE E-Chex (800) 325-1158 (800) 363-9835 (877) 474-8924 Global Payments BioPay Biometric Pymt Svcs Phoenix Cardnet Electronic Payment Systems LLC (800) 229-3698 (866) 324-6729 (305) 338-9316 (800) 863-5995 The Horizon Group, Inc. The Brennes-Jones Group, Inc. Samsar ATM Co. EZCheck (888) 265-2220 (972) 720-1198 (800) 811-3342 (800) 549-1220 Hypercom Certified Merchant Services Universal ATM Network Global Payments (800) Hypercom (877) 309-1099 (800) 274-5965 (800) 638-4600 x888 Ingenico Express Merchant Proc. Sol. Secur-Chex (770) 594-6000 (800) 999-5189 x 7966 BANKS LOOKING (888) 603-0978 Lipman USA, Inc. First American Payment Systems FOR ISOS/MSPS (516) 484-9898 (888) 603-0978 MLT &Assoc., Inc. Plastic Refurb Global eTelecom, Inc. Bridgeview Payment Solutions CONSULTING AND (775) 358-2922 ADVISORY SERVICES (850) 650-8506 A Wholly Owned Subsidiary of National Processing Company Global Payments Bridgeview Bank and Trust First Annapolis Consulting, Inc. (800) 672-1964 x 4383 (800) 801-9552 (888) DO APPLY (410) 855-8500 POS Portal, Inc. National Bankcard Systems Chase Merchant Services (866) 276-7289 (888) 898-8416 (800) 622-2626 x86016 Page 52

Network 1 Financial, Inc. Advanced Payment Services National Processing Co. LEASING (800) 261-0240 (800) 414-4286 (800) 672-1964 x7655 PARTNER-AMERICA.COM American Credit Card Proc.Corp. Nationwide Creditcard Center Allied Leasing Corp. (800) 366-1388 (800) 310-3812 (800) 910-2265 (877) 71-LEASE Payment Resources Int’l. Approval Payment Solutions, Inc. Netcom Data Southern Corp. American P.O.S. Leasing Corp. (888) 835-1777 (888) 311-7248 (800) 875-6680 (800) 349-6516 Retriever Bankcard BankCard USA North American Bankcard Barclay Square Leasing (888) 651-0800 (800)589-8200 x101 (888) 229-5229 (866) 396-BSLI TermNet Merchant Services The Brennes-Jones Group, Inc. Preferred Card Services Bond Corporation (800) 344-8472 x 108 (972) 720-1198 (800) 656-0077 (888) 222-0348 Total Merchant Services Business Center USA/Money Tree Inc. Retriever Payment Systems Electronic Payment Systems LLC (888) 84-TOTAL x14 (800) 582-2502 (800) 376-3399 (800) 863-5995 World Gift Card Business Payment Systems Signature Card Services First Leasing Corp. (888) 404-7446 (877) 700-7947 x 242 (888) 334-2284 (888) 748-7100 Certified Merchant Services SmartOne Payment Systems Golden Eagle Leasing, Inc. (800) WE LEASE ISOS/BANKS (877) 309-1099 (888) 408-SOPS Concord EFS, Inc. Streamline Processing Integrated Leasing Corp. PURCHASING ATM (800) 398-9701 PORTFOLIOS (800) 778-4804 x 66382 (800) 845-1069 Cornerstone Payment Systems TermNet Merchant Services LADCO Leasing Midwest Bancard Corporation (866) 277-7589 (800) 344-8472 x 108 (800) 678-8666 (888) 272-4325 CPS Group, inc. Total Merchant Services Leasecomm Corp. Southwest Financial Services, Inc. (800) 933-0064 (888)-84-TOTAL x14 (800) 424-2499 (800) 841-0090 Cynergy Data Transaction Payment Systems MERCHANTS LEASING SYSTEMS (800) 933-0064 x 5710 (800) 999-8674 x309 (877) 642-7649 E-Commerce Exchange United Merchant Services Merimac Leasing ISOS/BANKS (888) 603-0978 PURCHASING (800) 748-6318 (800) 260-3388 x202 ECS Cards U.S. Merchant Systems Northern Leasing Systems, Inc. MERCHANT (800) 683-5433 x 8500 PORTFOLIOS (800) 755-4-ECS x222 (800) 438-7570 #1 Electronic Merchant Systems Xenex Merchant Services Premier Capital Group, Inc. 1st Merchants Bankcard (FMBS) (800) 726-2117 (888) 918-4409 (800) 730-6431 (800) 477-0173 Electronic Payment Systems LLC TASQ Technology Certified Merchant Services (800) 863-5995 (800) 827-8297 ISP/E-COMMERCE Tech Leasing International (800) 732-1099 #0 Electronic Processing, Inc. PROVIDERS Concord EFS, Inc. (800) 669-7228 (800) 414-7654 x 3004 (800) 778-4804 x 66382 EPX eCommerce Tools, Inc. Cross Country Bank (302) 326-0700 (800) 875-8275 LOYALTY CARDS (302) 326-4200 x29112 First American Payment Systems Multiplex Media Corp. Network 1 Financial (888) 603-0978 (800) 383-3953 x4321 POS Payment Systems (800) 903-8819 Innovative Merchant Tasq.com (718) 548-4630 TransFirst Holding, Inc. Solutions (800) 827-8297 Tipsdirectory.com (972) 249-0037 (800) 397-0707 (888) 564-6847 x5456 IRN PAYMENT SYSTEMS LEADS GENERATORS (800) 366-1388 ISOS LOOKING FOR U.S. MERCHANT Lynk Systems, Inc. AGENTS Alpine Group Inc. ACCOUNTS FOR (866) 828-5965 (888) 223-4119 CANADIANS 1st Merchants Bankcard Merchant Payment Systems California List Management (FMBS) (877) 290-1975 (866) LISTS 4 U PayNet Merchant Services, Inc. (800) 477-0173 Merchant Services, Inc. Telstar (888) 855-8644 Advanced Merchant Serv.ives (AMS) (800) CARDSWIPE (800) 383-7853 (888) 355-VISA (8472) Merchants’ Choice Card Services (800) 478-9367 Page 53

NON-U.S. MERCHANT REAL-TIME CHECK/ ACCOUNTS CREDIT CARD PROCESSING PSiGate Payment Services (877) 374-9444 1st American Payment Proc. (480) 785-2262 POS CHECK Data Processors Int’l. (DPI) CONVERSION (888) 541-9800 E-Commerce Exchange CrossCheck, Inc. (800) 748-6318 (800) 654-2365 eProcessingNetwork.Com EZCheck (800) 971-0997 (800) 549-1220 Netbilling Services ElectroCheck (661) 252-2456 (877) 509-9399 ProPay USA-FaxPay Global eTelecom, Inc. (888) 486-4701 (850) 650-8506 Signio, Inc. Nationwide Check Services (888) 847-2747 (800) 910-2265 SITE SURVEYS POS SUPPLIES Property Resource Network Inc. CardWare International (800) 676-1422 (740) 522-2150 General Credit Forms, Inc. SOFTWARE (800) 325-1158 ALTERNATIVE Global Payments (800) 229-3698 GO Software, Inc. TASQ Technology (800) 725-9264 (800 827-8297 Valdez Paper Products SUPPORT DESK FOR (970) 689-1655 POS TERMINALS & PC Vital Merchant Services SOFTWARE (800) 348-1700 CardWare International PROCESSORS (740) 522-2150 LOOKING FOR ISOS Global Payments (336) 760-8120 x1218 First Data Merchant Services TASQ Technology (402) 222-8570 (800) 827-8297 Global Payments Vital Merchant Services (800) 801-9552 (800) 686-1999 Lynk Systems, Inc. (866) 828-5965 VIDEO PRODUCTION National Processing Company (800) 672-1964 x7655 Roaring Mouse Productions (707) 794-9699

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 indemnify and hold the publisher harmless from any claims, damage, or expense resulting from printing or publishing of any advertisement. Paid Advertisement The Program for NOW and the FUTURE “The Innovators of Electronic Transaction Processing”

Since its inception in 1991, Certified Merchant Services has grown to become one of the largest companies in the electronic transaction processing industry. This is in large part because of the ISO’s and Independent Agents who have submitted business through the years. To show our appreciation to all the ISO’s and Independent Agents, CMS is pleased to present the following: NO RISK NO LIABILITY NO GUARANTEEDINCOME TO CMS THE UNBEATABLE CMS PROGRAMS vs OTHER PROGRAMS LOW RISK RETAIL OTHER OTHER OTHER CMS 1-9 CMS 10-19 CMS 20+ Program A Program B Program C Buy Rate 1.49 1.49 1.49 1.4966 1.4966 1.49 Trans Fee 0.099 0.0950.089 0.10 0.16 0.25 Application Fee 0 0 0 0 0 0 Statement Fee $5.45 $4.95 $4.95 $5.50 $7.50 $7.50 Minimum $0 100 % above $10.00 $0 100 % above $10.00 Mid Qual .40% of 1.20% .45% of 1.20% 1.69% + .10 .30% of 1.39% Non Qual .40% of 1.50% .40% of 1.50% 1.69% + .10 .30% of 1.39% Debit 0.24 0.23 0.22 0.28 0.250.30 Amex $25$25$25$25$25$25 24 times 25 times 26 times Residual buyback per agent agreement HIGH RISK RETAIL MERCHANT CATEGORY B OR C CMS 1-9 CMS 10-19 CMS 20+ Program A Program B Program C Buy Rate 1.49 1.49 1.49 1.56 1.56 1.56 Trans Fee 0.099 0.0950.089 0.25 0.25 0.25 Application Fee 0 0 0 0 0 $25 Statement Fee $5.45 $4.95 $4.95 $3.50 of $12 $3.50 of $12 $10 Minimum $25 100 % above $15 $25 100% above $15 $25 Mid Qual .40% of 1.20% .45% of 1.20% 1.69% + .10 .30% of 1.39% Non Qual .40% of 1.50% .40% of 1.50% 1.69% + .10 .30% of 1.39% Debit 0.24 0.23 0.22 0.28 0.25 0.30 Amex $25$25$25 $25 $25$25 24 times 25 times 26 times Residual buyback per agent agreement MOTO -- E-commerce CMS 1-9 CMS 10-19 CMS 20+ Program A Program B Program C Buy Rate 1.99 1.99 1.99 2.252.252.29 Trans Fee 0.19 0.18 0.17 0.30 0.30 0.30 Application Fee 0 0 0 0 0 $25 Statement Fee $5.45 $4.95 $4.95 $3.50 of $12 $3.50 of $12 $10 Minimum $25 100 % above $15 $25 100% above $15 $25 Non Qual .40% of 1.50% .40% of 1.50% .15% of 1.39% .30 of 1.39% Amex $25$25$25$25$25$25 24 times 25 times 26 times Residual buyback per agent agreement Check Conversion LEASING PROGRAMS Online Application with Guarantee CMS OTHER Realtime Status Reports 0.0288 0.0295$49 = 1701 vs 1661 = $40 more Universal+ no Application1st & last 0.0314 0.0315 $49 = 1560 vs 1555 = $5 more + no 1st & last Wireless Solutions Guaranteed Lease 0.0394 0.0399 $49 = 1243 vs 1228 = $15 more + no 1st & last Electronic Giftcards Faxed applications www.electrogiftcards.com CALL NOW 877-309-1099! www.electro-check.com

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