VOLUME EIGHT / ISSUE ONE / SUMMER 2005 An information resource for electronic payments brought to you by eFunds VAULT Corporation

eFunds acquires WildCard Systems to deliver integrated debit and prepaid solution 3

eFunds acquires ClearCommerce Corporation to address card-not- present fraud 5

Remote Control at the ATM — eFunds partners with NCR, Trusted Security Solutions and TEKchand 6

COCC improves back-office efficiency with DataNavigator 10

eFunds “Card-in-a-Box” prepaid solution 11

CONNEX Open Enterprise (OE) New Release — Enterprise View 12

eFunds delivers international processing with Société Générale and India Switch Company 14

IST/Switch 7.5 — Now Available 22

CUSC benefits from integrated software and processing solution 23 For customers, it’s all about making V O L U M E 8 / I S S U E 1 / S U M M E R 2 0 0 5 every transaction more valuable In my last editorial, I spoke about some of the long-term invest- VAULT ments eFundsSM is making in upcoming solutions like CONNEX An information resource for electronic payments Open Enterprise™ (OE), the next generation component architecture brought to you by eFunds Corporation that will support eFunds’ enterprise level payment processing and risk management solutions. PUBLISHERS To drive our solutions delivery strategy across our key Finan- Rahul Gupta & Kay Nichols cial Services and Retail markets, we have turned to exceptional MANAGING EDITOR marketing leadership focused on the needs of our customers and Keith Briscoe how they invest in technology to generate new revenue, further PROOFREADING reduce operating costs and get quickly to market. Kay Nichols, our Keith Briscoe, Sarah Hawley, Jennifer Boyle new senior vice president of strategy and marketing, is finding that the industry is migrating steadily away from one-off product CONTRIBUTORS Jennifer Boyle, Sarah Hawley, Keith Briscoe, investments to a more long-term, solution-oriented focus that leverages the benefits of a flexible, Karen Williams, Kim Halmekangas, Keith Roberts, end-to-end payment component architecture. Paul F. Walsh, Rahul Gupta, Rob Myhre, For many of our customers, the move toward a complete solution won’t happen over Jack Benton, Kathleen Flanagan, John Yusko, Chairman’s night, yet more and more we are seeing interest in near- to long-term solutions like an “inte- Tony Manship, Heidi Woller, Tony Ipsarides grated payments hub” — solutions that bring together complementary payment processing, DESIGN AND LAYOUT risk management and fraud prevention components under a single, integrated architecture. Shaw Street Productions While the concept sounds almost like science fiction in the payments industry, in reality it’s already happening in the eFunds global community. eFunds Offices Take a look at our recently announced solution with Société Générale Group (p.21), based eFunds Corporation Headquarters Gainey Center II, Suite 300 in France. eFunds has recently won a contract to provide complete card processing services 8501 North Scottsdale Road for the international retail banking subsidiaries of the bank, which is one of the largest finan- Scottsdale, Arizona 85253 cial services groups in the Euro zone. Telephone: 480 629 7700 or 1-888-9eFunds Fax: 480 629 7701 This deal is noteworthy for many reasons. As another example of eFunds’ foray into interna- eFunds International Head Office tional processing, it represents our commitment to being a global, customer-centric solutions Aegon House, Daresbury Business Park provider. In addition, eFunds is ideally positioned to offer the bank the end-to-end foundation for Daresbury, CHS WA4 4HS United Kingdom an integrated payments hub. Through both our rich history in debit processing and the open Telephone: 44 (0)1928 791791 platform expertise offered through our acquisition of Oasis’ IST product line, eFunds will be able Fax: 44 (0) 1928 718 177 to offer each of the bank’s subsidiaries full third-party processing services right across the trans- eFunds Canada Corporation action lifecycle, including ATM management, merchant acquiring, back-office services and card 20 York Mills Road, 4th Floor, Box 700 management. Lastly, the eFunds solution will now enable the bank to realize efficiencies from Toronto, Ontario M2P 2C2 Canada processing on a common platform. All tolled, it’s a powerful story that demonstrates not only the Telephone: 416 228 8000 validity of eFunds’ vision, but our ability to deliver that vision to customers through solutions Fax: 416 228 8881 that really do make every transaction more valuable. eFunds International, South East Asia Operations eFunds International (India) Pvt Ltd. In addition to delivering major customer projects and building out our OE family of solutions, 3rd Floor Fairmont, eFunds continues to extend its value proposition through strategic acquisitions that are helping us Hiranandani Business Park, Powai. accelerate delivery to the marketplace. To augment the introduction of Open Enterprise as the Mumbai - 400076 India underlying solution architecture for both payments and risk/fraud management, we have been Tel: +91 022 56684307 actively completing our solutions delivery capability right across the transaction lifecycle, in our key Fax: +91 022 56684310 “pay before” (prepaid/stored value), “pay now” (debit) and “pay later (credit) segments. eFunds International, Asia Pacific Operations Suite 1, Level 5 Earlier this year, we acquired ClearCommerce Corporation (p.5), which has given us an imme- 100 Walker Street diate foothold in card-not-present/Internet fraud management space. This is a natural extension of North Sydney our risk management business that extends our fraud management solutions across both the NSW 2060 account and transaction lifecycles. In July, we also completed our acquisition of WildCard Systems Australia Telephone: +61 (0) 2 9954 9533 (p.3), the industry’s leading provider of prepaid and stored value solutions for financial institu- Fax: +61 (0) 2 9954 9620 tions and retailers. This acquisition builds naturally on our previous partnership with WildCard, eFunds Corporation, Latin America Operations and offers the industry an integrated debit and prepaid solution. With the prepaid market segment 2400 North Commerce Pkwy poised to grow by more than 20 per cent over the next five years (Mercator Advisory Group), the Suite 306 Weston, FL 33326 combination of eFunds and WildCard will serve to further extend our overall payment value USA proposition and offer our customers access to a market tested and proven prepaid solution. Telephone: 954 384 7894 Now, more than ever, eFunds is focused on you, our customers. This issue of Vault goes a Fax: 954 384 8046 long way to demonstrating what we have to offer today, what we're building for tomorrow, and WEB SITES the customers that are already making every transaction more valuable through successful www.efunds.com www.oasis-technology.com eFunds implementations. www.clearcommerce.com www.penleyinc.com www.wildcardsystems.com www.indiaswitch.com

Sincerely, © 2005 eFunds Corporation. All rights reserved. This document is intended only for the use of eFunds Corporation customers in connection with the products and services eFunds Corporation has authorized. Any other use is not authorized. eFundsSM is a trademark of eFunds Corporation. All other marks are the property of their Paul F. Walsh respective owners. eFunds has used commercially reason- Chairman and Chief Executive Officer able efforts to ensure that the information contained in this document is accurate and complete. eFunds shall eFunds Corporation have no other obligation with respect to any inaccuracy or incompleteness of information contained in this docu- This publication may contain forward-looking statements that are based on expectations, estimates, projections and assump- ment. eFunds does not represent, warrant or guarantee tions of eFunds Corporation and various other parties quoted. Words such as “expects,” “anticipates,” “plans,” “believes,” that the information in this document is accurate or com- “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking state- plete. eFunds provides the information in this document ments, which include but are not limited to projections of revenues, earnings, segment performance, and growth. Forward- “AS IS” and without warranty of any kind. ALL EXPRESSED looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, AND IMPLIED WARRANTIES, INCLUDING BUT NOT as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which LIMITED TO THE IMPLIED WARRANTIES OF MER- are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-look- CHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ing statements due to a variety of factors. All forward-looking statements speak only as of the date of this publication or AND ARE HEREBY DISCLAIMED BY EFUNDS. Unless other- such earlier date identified for republished information. All subsequent written and oral forward-looking statements attribut- wise expressly agreed in writing by eFunds, in no event able to eFunds Corporation, its affiliates or any person acting on the their behalf are qualified by the cautionary statements will eFunds be liable for any damages, whether direct, in this paragraph. eFunds Corporation does not undertake any obligation to update or publicly release any revisions to indirect, special and consequential or otherwise, arising 2 forward-looking statements to reflect events, circumstances or changes in expectations after the date of this publication. out of use of the information contained in this document. eFunds Corporation announces acquisition of WildCard Systems Acquisition creates leading market position in high-growth prepaid segment

With prepaid card spending of $160 proposition. As the industry moves from billion in 2004 and a projected market paper to electronic payments, there is opportunity of more than $1 trillion over growing demand for innovative solutions, According to Mercator Advisory the next decade, prepaid applications such as stored value systems, especially in Group, the prepaid market is present financial institutions with a financial services where eFunds already estimated to grow by more than 20 high-growth, innovative alternative to serves more than 9,000 clients across percent over the next five years, traditional debit and credit programs. 80 countries. making it one of the fastest growing payment segments. They not only offer an enhanced value WildCard primarily focuses on proposition to cardholders — who find open or “branded” prepaid products them more secure than cash and more by leveraging the payment networks convenient than checks — but also give together to deliver an integrated debit of Visa®, MasterCard® and Discover®. and prepaid solution. financial institutions another tool to The WildCard approach provides an advance the payment process and intro- effective solution to increase financial “We are excited to welcome WildCard duce new revenue-generating products institutions’ offerings through rapid, low- to team eFunds — this is a natural fit,” to their consumer and business clients. cost deployment. The cards address the said Paul Walsh, chairman and chief needs of a number of segments, either executive officer of eFunds. where cash or paper dominate or where “The complementary nature of debit credit and debit cards have made little and prepaid brings a powerful value WildCard Systems proposition to the financial institutions at a glance impact. The applications include payroll, government benefit, gift card and served by our companies.” • WildCard Systems is a global multipurpose, general-spending card “Our combined companies bring the solutions leader in turnkey products. WildCard’s solutions provide agility and responsiveness of WildCard host-based prepaid cards and an entry into a wide range of hard-to- with eFunds’ significant financial custom stored-value products. reach niches, from those without a institution franchise, financial stability, • WildCard Systems is certified by transactional bank account to teens technological scalability and worldwide Visa®, MasterCard® and and students. resources,” said Larence Park, CEO Discover® as an endpoint on The acquisition comes on the heels and co-founder of WildCard Systems. “Our integrated debit and prepaid their networks, and is of a successful partnership between the offering moves customers closer to a authorized to be an issuing two companies announced in November single ‘payment hub,’ streamlining the processor for cards bearing 2004. Since that announcement, two tier one financial institution deals were management of their consumer accounts. Visa, Electron®, Interlink®, closed under eFunds’ existing alliance Customers can now come to one trusted PLUS®, MasterCard, Maestro®, with MasterCard International. The part- provider for a full suite of debit and Cirrus® and Discover/NOVUS nership validated the market demand for prepaid solutions.” V payment marks. prepaid payment products, and has • Founded in 1997 proven the companies’ ability to work • Based in Sunrise, Florida • www.wildcardsystems.com The enhanced value proposition offered by prepaid applications includes: Realizing the benefit of this • New Product Opportunities and Income Streams — prepaid applications present an growing market for its customers and opportunity for issuers to develop and introduce new products with the potential to the enhancement to its current offerings, generate incremental revenue streams. These applications offer a better alternative eFunds announced the signing of a definitive agreement in early June to to deliver traditional products/services that can attract new accounts and build acquire WildCard Systems, a leader in relationships within hard to reach niches, such as the unbanked and teens/students. prepaid and stored value solutions for • Cost Reduction — electronic processing typically costs a fraction of paper processing. financial institutions and retailers • Greater Control — the ability to establish controls that govern when and where a around the world. WildCard Systems card may be used, along with a spending cap, offers institutions precise offers an array of commercial and management, reconciliation, auditing and disbursements. consumer stored-value products made • Less Risk/Fraud — with proper controls and use of appropriate risk mitigation available to end-users through banks tools, electronic processing can reduce the risk inherent in paper-based systems, and commercial clients. minimizing fraud losses. The addition of WildCard’s prepaid • Improved Customer Experience — prepaid applications provide a safer, more and stored value expertise to eFunds’ debit convenient option for customers and offer faster access to funds. processing capabilities provides a comple- mentary extension of the current value

3 There's a big WildCard in eFunds' future How strategic acquisitions are accelerating eFunds' customer-facing solutions As a leading provider of transaction processing they will provide our current customer base of debit-prepaid solution is ideal. To achieve this, and debit account risk management solutions, 9,000 financial institutions with a wider range we are working actively with WildCard to eFunds is focused on building an end-to-end of integrated solutions that are secure, flexible, ensure we can meet the immediate demand for solution across the account management and proven and reliable. turnkey, “card-in-a-box” solutions (p.11), while transaction processing lifecycles. Our vision for providing the long-term stored value processing complete, customer-driven solutions goes well The future of fraud capability within Open Enterprise. beyond our historical expertise in the debit reduction is clear space. Moving forward, we are focused on In the case of ClearCommerce and the ever Planning for the future expanding the value chain to include compre- increasing incidence of card-not-present transac- In all cases, however, our ongoing integration hensive solutions for new growth areas like tion fraud, our customers now have the option strategy is also helping us to achieve our goal stored value and debit/credit fraud manage- to choose from a single provider that combines of a seamless payment processing and risk ment. For eFunds, the integration of prepaid industry-leading check authorization solutions, management world, where account opening within our matrix of customer-focused solutions including SCANSM, with a comprehensive fraud and servicing, credit/debit/prepaid transaction provides a natural complement to our existing solution for CNP transactions. When you com- processing and fraud management are integrat- debit/credit processing and software capabilities. bine the analytic capabilities of ClearCommerce's ed through an open, flexible architecture. In For any solutions company focused on FraudDetect™ database and eFunds' leading this respect, all of our acquisitions are helping meeting customer needs, striking the right DebitBureau® database, our customers will also us to accelerate future market delivery. Yet have immediate access to some of the richest balance between building in-house developed customers can also choose to take advantage of data in the industry, covering a wider spectrum existing solutions today — all with the peace of solutions and acquiring new technology to of account and transaction fraud. mind that they will ultimately integrate with meet market demand is key. eFunds continues New value in store our next generation solution components to to make significant investments in its core help reduce migration risk. products and services, such as our integrated Explosive growth in the pre-paid/stored value For eFunds customers, the value of acqui- CONNEX Open Enterprise™ payments and risk market — which is currently estimated to grow sitions is about leveraging immediate management platform. Equally important, to more than $1 trillion in the next decade - time-to-market, cost reduction and revenue we're also making strategic decisions to has had a tremendous effect on financial insti- tutions at every market tier. Prepaid solutions generation advantages, while creating long- acquire technology and proven expertise that are considered an ideal method for tapping into term, synergistic benefits that will drive the helps us build out our total value proposition. the “unbanked” (those who don't hold a trans- future of your business. When these parallel strategies work in hand in actional bank account), growing card product hand, the result is a company — and an over- revenues, providing increased convenience, all solution delivery capability — that is far driving electronic payment adoption, and Sincerely, greater than the sum of its parts. enhancing security. As a result, most financial Two recent acquisitions, ClearCommerce institutions are looking to prepaid as a key opportunity to access a larger segment of the and WildCard Systems, are helping eFunds market and increase customer retention. expand its integrated risk/fraud management Rahul Gupta, and payment solutions across the entire With new debit card growth now outpacing Senior Vice President, Payment Account Solutions account and transaction lifecycle. Ultimately, credit card growth, the timing for a combined eFunds Corporation

eFunds processing services poised for domestic and international growth From the point of transaction to back-office suite — is, in fact, the foundation for a wide ACH, for example, continues to see healthy management, eFunds provides organizations range of the services we offer through eFunds year-over-year volume increases, with check with proven, reliable solutions for transaction data centers in the U.S. As we continue to replacement applications (eCheck) fueling processing across the entire payment lifecycle. increase our global processing footprint with double and triple-digit growth. ARC leads the Whether customer needs involve ATM driving, deals like Société Générale and acquisitions pack of eCheck applications with more than multi-channel acquiring, real-time authoriza- like India Switch Company, we’re building the 324M transactions, representing 338 per cent tion, card management, or advanced payment infrastructure that will ultimately help us to growth (4th quarter 2003 to 4th quarter 2004; fraud prevention, we offer a single-source deliver an even wider range of customer- NACHA). Debit growth also continues to accel- connection to robust payment management focused processing solutions to broader erate, with Visa® predicting that volume in 2005 services and software that increase revenue, domestic and international markets. will finally surpass checks for the first time. reduce costs, improve time to market and Key market drivers at home and abroad And the killer application? Stored Value has enhance customer service. emerged as a now standard payment product In the U.S. we continue to see cost optimiza- To meet the growing domestic and interna- for most financial institutions, with growth tion as a key driver in the selection of tional demand for eFunds solutions, we expected at greater than 20 per cent through processing services. Though the landscape continue to make robust investments in both 2010 and a total market opportunity estimated itself continues to be dominated by a smaller our core software and processing businesses. at $1.3 trillion (Mercator Advisory Group). number of large players as a result of acquisi- At eFunds, the software we develop and take To meet the needs of this changing pay- tion activity, transaction volumes continue to to market internationally — including the ments landscape, financial institutions and grow, in some cases at an explosive pace. entire CONNEX Open Enterprise™ payment Continued on page 24

4 eFunds Corporation acquires ClearCommerce Corporation Acquisition broadens eFunds fraud and risk solutions to card-not-present channels As electronic commerce continues its rapid growth, many retailers have seen a corresponding increase ClearCommerce’s comprehensive risk eFunds’ industry leading fraud in the amount of fraud. On-line credit card fraud, management solution enables online and ID theft solutions which commonly involves identification theft, retailers to: SM now represents nearly half of total credit card fraud. • Optimize fraud detection and protect • eFunds’ SCAN check verification solution As a result, businesses selling on-line are challenged against fraud attacks with a powerful supports approximately 71,000 merchant to protect customers’ critical payment information arsenal of screening technologies locations across the U.S., helping retailers — as well as their own revenue and profits — from minimize check payment risk at the point increasingly sophisticated fraud schemes. • Increase efficiency of order processing through fully automated screening and of sale. eFunds has recognized this growing need. order review tools • eFunds is the creator of DebitBureau®, As part of its mission to provide enhanced value for • Maximize legitimate sales and customer North America’s largest debit database, consumer financial accounts, eFunds has taken the satisfaction by accurately detecting which now holds more than three billion next step toward helping its FI and retail customers consumer records received from financial, fight fraud and identity theft with the acquisition fraudulent orders retail and government sources. of ClearCommerce Corporation, an industry leading • Easily adapt to business growth with an • More than 88,000 financial services provider of robust and proven fraud prevention and open, flexible decision platform payment processing solutions for card-not-present • Maximize Return on Investment through company locations use eFunds’ SM (CNP) transactions. flexible, cost effective deployment options ChexSystems services to minimize fraud and mitigate risk during the account opening process. ClearCommerce at a glance solution suite provides an unrivaled, single-source • ClearCommerce FraudShield™ provides offering for integrated transaction processing and order-centric fraud detection built on a • ClearCommerce software and systems are risk management across multiple channels (point- proprietary model of more than 40 million used by 80,000 businesses worldwide of-sale, eCommerce, catalog) and payment types. card-not-present transactions. • Customers include Adobe®, “The acquisition is another step in the execu- Apple Computer®, Barclay’s® and Staples® tion of our long-term strategic plan,” said Paul • Founded in 1995 Walsh, chairman and chief executive officer of Combining the best • Based in Austin, Texas eFunds. “Our combined solutions will help of fraud databases • www.clearcommerce.com customers take an integrated, enterprise-wide The rich combination of analytics from both the view of their transaction processing and fraud eFunds DebitBureau and ClearCommerce FraudDe- management systems that will help control costs, tect databases will create an unrivaled source of Comprehensive fraud increase transaction revenue and strengthen online and offline information that will serve as detection technologies customer loyalty. Customers can now come to the foundation for the company’s next generation one trusted provider for a full suite of fraud of fraud prevention tools — while helping to build ClearCommerce’s fraud prevention solution prevention and payment processing solutions to integrates a comprehensive and powerful arsenal a sustainable competitive advantage. eFunds will take advantage of the growing trend towards leverage the ClearCommerce platform with eFunds’ of fraud detection technologies, including electronic payments.” sophisticated order screening rules, rule weighting, risk and payment engines to accelerate the merchant configurable velocity checks, neural The expanded offering provides the distinctive delivery of new product offerings under the CONNEX network risk scoring, interna- ability to manage the growing threat Open Enterprise™ suite, providing a powerful tional IP address location, of identity and payment fraud more foundation for building high-value customer and automated order review effectively and completely, helping to solutions. These new offerings will provide best-in- assistant. It provides a highly protect against losses. With analytics class data, analytics and decision support tools reliable, scalable, and feature- from both the ClearCommerce for managing fraud and risk to create one of the rich solution, enabling FraudDetect™ database and most comprehensive, adaptive and predictive merchants and service the eFunds DebitBureau® fraud prevention platforms in the industry. providers to reduce the risks database, customers will have “We are excited to welcome ClearCommerce and costs of fraud, increase a comprehensive perspective to eFunds,” said Walsh.“The complementary revenue and improve the prof- on fraud detection. nature of their technology and skill set with our itability of their CNP sales “Both companies core capabilities will further extend our unique channels. have deep domain expertise value proposition to the world’s largest retailers The acquisition broadens eFunds’ lead- in payments and risk man- and financial institutions for flexible, end-to-end ing suite of risk management and agement, enabling us to create payment and fraud solutions.” V electronic payment solutions with a com- best-in-class solutions,” said prehensive payment and fraud solution for Robert J. Lynch, president and CEO CNP transactions. It also expands the of ClearCommerce.“Combining our respective company’s market footprint in the retail strengths will give our customers comprehen- sector with more than 140 new customers sive and predictive fraud prevention in seven countries. The union of eFunds’ industry- techniques, as well as an integrated payment leading check authorization and risk management solution for both card-not-present and point-of- solutions, including SCAN™, with ClearCommerce’s sale transactions.”

5 Remote Control — ATM support gets easier with migration to remote management technologies eFunds partners with NCR, TEKchand and Trusted Security Solutions to enable remote ATM Management

For financial institutions, ISOs and off- consumers opt for convenient “cash-back” In response to this growing market premise deployers, the cost of managing options at the point of sale — a move that need, most of the major ATM manufactur- ATM networks continues to rise, while further erodes the revenue streams from ers and supporting ATM technology profit margins continue to be an ongoing merchant-based off-premise ATM locations. providers — including eFunds — have challenge. For many, the ATM market has While the cost to manage ATM networks focused on delivering new solutions that become heavily saturated, further com- varies greatly from financial institutions help financial institutions and ISOs better pounding the issue of declining (highest costs) to ISOs (lowest costs), the manage their ATM networks. What are we transactions — and therefore revenue — pressure to optimize service and mainte- focusing on? Three eFunds partners — per ATM location. And while ATMs contin- nance processes has increased across the NCR, TEKchand and Trusted Security ue to mature in terms of functionality and entire industry. With declining ATM rev- Solutions — are adding value to the transaction capability, the majority of enues impacting virtually all players, “remote servicing” arena, and in all cases cardholders still use ATMs for simple cash reducing ATM management cost structures the solutions are now available to eFunds withdrawals. This, too, has been affected has now become a priority. EFT customers. by the increasing influence of debit, as

1. Remote ATM Error 2. Remote Graphics Upload 3. Remote ATM Detection and Dispatching & ATM Screen Marketing Key Management Automation

Solution Solution Solution The Self-Service Diagnostic Gateway A98-R Remote Re-keying Solution (SSDG) ATMRewards What it Does What it Does What it Does • Automatically creates and distributes • Web-based ATM content • Automates the receipt of native ATM ATM master keys error codes development, management and delivery system • Eliminates manual on-site key loading • Enables more intelligent dispatch of and reduces key management costs personnel and eliminates preventable • Enables real-time content changes service calls and one-to-one targeted marketing continued on page 6 continued on page 8 continued on page 9 NCR’s high availability ATM service environment: 1. the Self-service Diagnostic Gateway

For financial and retail automated teller and all of the manual intervention, areas of a manual process that could only be con- machine (ATM) owners, minimizing opportunity include the time it takes to ducted on-site at the ATM. Within the ATM, downtime is key to reaching higher levels dispatch the service team, respond to the thousands of error status codes exist for the of customer satisfaction and increased call and repair the fault on-site. Identifying ATMs hardware and software that are trig- profitability. After all, ATMs are more than the correct details associated with the fault gered when an error condition occurs. Codes just cash dispensers — they are one the prior to service team dispatch will greatly are written to an error log inside the ATM so most frequent and influential touch points impact the response provided and time that the service technician, upon arrival, can for banks with their customers. Keeping spent on-site. quickly diagnose and resolve the fault. these units operating near 100 percent of Challenges with automating a To speed the time it required for a their potential uptime is measured in hun- semi-manual, arduous process technician to manually determine the error, dreds of thousands of dollars annually. the process was automated to allow all error Previously, identifying an ATM error was With the various breakpoints in an ATM codes associated with the fault to be sent 6 NCR Corporation at a glance • NCR is a leading global technology company helping businesses build stronger relationships with their customers. NCR’s ATMs, retail systems, data warehouses and IT services provide solutions that maximize the value of customer interactions and help organizations create a stronger competitive position. • Based in Dayton, Ohio • 28,500 employees • NYSE: NCR • www.NCR.com

The SSDG system takes native codes received from all ATMs on the host or switch and translates them to directly from the ATM to the host or switch com- the management system. The native code is then analyzed by the SSDG where an intelligent dispatch is made, recommending the appropriate skill set for the service request. puter to aid with service dispatching decisions. However, the thousands of codes received became into NCR’s High Availability Service Environment. daunting to track. As a result, the predominant Diagnostics are performed and a recommended practice was to dilute the detailed native status NCR’s Self Service Diagnostic Gateway action is provided to NCR’s Dispatch Service codes into more generic fault messages. In most technology provides more intelligent Center. The fault is then analyzed based on the cases, roughly 1,900 detailed native codes were operation to minimize ATM downtime by details of the native status code and an intelligent reduced to 50 to 100. This type of generic informa- reducing ATM response times, enabling dispatch can be created that recommends the tion being passed to the service provider caused faster repair times and reducing appropriate skill set for the service request. If a confusion and slow service resulting in: personnel cost — ultimately improving part is required to resolve the fault, the technician the customer’s bottom line. • Inaccurate service teams being dispatched will know the part needed before arriving on site, effectively minimizing the downtime associated • Incorrect skills dispatched (first line vs. second with the fault. line maintenance) — a problem continually plaguing ATM owners, With the SSDG in place, the minimum impact • Wrong part, impacting first visit resolutions vendors and service providers. on ATM uptime has risen by one percent — even and repeat failures Simplifying the remote error higher in most cases. Although this may not • Out of scope service calls (cash or supply out process to reduce ATM downtime sound significant, in larger channels a one percent and lost communications) NCR® and eFunds addressed this problem by gain can equate to millions saved in servicing time • ATM in service when technician arrives on-site implementing the High Availability strategy to and costs. Based on 24 hour availability, one percent of increased ATM availability results in 3.6 • Service Level Agreements not maintained automate the process of receiving error codes and reduce the frustrations of controllable ATM days or roughly 86 hours, of additional up-time • Decreased ATM availability resulting in downtime. The bedrock of the strategy is the per ATM per year. unhappy customers implementation of NCR’s unique Self Service “The foundation of the approach to High For example, when an ATM ran out of cash, the Diagnostic Gateway (SSDG), which ensures Availability is NCR’s in-depth knowledge of how native code notified the host that Cassette #2 was the right details regarding the ATM fault are to read, interpret and react to message strings out of cash. When the host translated the code into communicated to: produced by all ATMs. In the past, this important a generic message it said “Dispenser Failure.” If • Make certain proper service and skills are information was trapped or lost by the network’s “Dispenser Failure” always meant “Cash Out,” this assigned to the dispatch host computer,” said Tony Ipsarides, director, would not pose a problem and could be quickly product management, eFunds Corporation. “By resolved by the branch or with cash in transit. • Provide the recommended service action for working with us to access this information, However, “Dispenser Failure” could also mean the repair NCR’s SSDG solution delivers unparalleled “Jammed Bills” and first line service would be • Identify all required parts to resolve the fault insight into the status of our customers’ ATM required. Likewise, “Dispenser Failure” could also prior to arriving at the ATM networks. The result is faster, more efficient mean a fatal error occurred on the control board • Proactively review service calls to eliminate support for customer ATM channels and signifi- and required a part and second line maintenance. preventable calls cant improvement in total ATM availability.” As witnessed in the example, trying to SSDG is a process with imbedded technology eFunds has partnered with NCR to offer the determine what skills to send to a call steadily that allows the host environment to pass the SSDG solution, providing measurably-enhanced contributed to the decline in total ATM availability native status codes of an ATM fault electronically first line and second line support. V

Native Status Code: 5670-0100:ATM123: Cash Handler-Csst 2 Cash Out Host Computer For more information, contact your eFunds account Generic Status Code: ATM123: Dispenser Failure — Low Side representative today

7 TEKchand and eFunds provide FIs with an automated, real-time message delivery system for their ATM channel

2. ATMRewards platform provides easy, remote marketing channel for ATMs With today’s fast-paced lifestyles, more consumers are utilizing remote banking tools, making ATMs an important touch point for FIs. However, many FIs are not fully utilizing this channel to market to their current and potential customer base due to: • Cumbersome, manual processes for simple changes (such as screen changes) • Limited marketing space for products and services • Inability to track or monitor marketing campaigns • Long lead times required for IT resources to schedule changes and operations to • For ATM operations — ATMRewards is a implement the changes convenient Web-based system for set-up, monitoring, auditing and ATM configuration • Advanced marketing features requiring costly file management functions investment in next generation ATMs • For marketers — ATMRewards offers a simple, reservation-based system accessible via the Intranet for ATM advertising Gain valuable time TEKchand LLC at a glance • For business managers — ATMRewards and cost reductions • ATM software and solutions provider provides a cost-effective solution that is easy Prior to now, the ATM screen change process • Offices in Chicago and Delhi, India to set-up and does not require hardware, has been a manual, ATM operations function • 11 employees software or network changes at the ATM requiring lead time. It can now be a marketing • Founded in 1999 to provide a cost Dynamic, targeted marketing function enabling real-time changes. With effective, switch-based solution for usability as a core focus, non-IT users are able to enabling content and new services The ATMRewards platform provides interactive design, model and promote content instantly. marketing capabilities that allow FIs to change on multi-vendor ATMs, without ATM content via the Web in real-time. The The ATMRewards flexible, platform requiring the cumbersome and solution not only enables traditional ATM adver- independent architecture does not require costly expensive process of overhauling tising, such as general information on products ATM hardware, software or network upgrades. ATM hardware or software. and services, but also extends the capability to The system supports multi-vendor ATMs, • www.tekchand.com targeted offers, coupons and polls based on including OS/2 State-Screen ATMs that may desired demographics. And, with the ability to represent a large portion of a FIs ATM portfolio. collect a customer’s data at the ATM, the result This solution adds high value in comparison to can be a highly personalized customer interaction the current costly multi-vendor/multi-platform With TEKchand’s ATMRewards there is now mix of delivering the same content. an available solution that automates many of through individually preset language, fast cash ATMRewards also improves operational the manual processes associated with ATM and receipt preferences. efficiencies by reducing the number of ATM Load marketing. ATMRewards provides a comprehen- By utilizing dynamic content tags, files and by automating the manual process of sive, web-based ATM content development, ATMRewards enables personalized marketing changing ATM configurations. By providing management and delivery system. The application such as instant credit approvals, mortgage and convenient access to the system and remote file interfaces directly with CONNEX™ and auto financing rates and other timely offers. The distribution capabilities, ATMRewards eliminates IST®/Switch to enable real-time content changes content tags, which can be set to automatically the need for local ATM site visits, which can and “one-to-one” targeted marketing. It also update, can be included on the screen or receipt quickly add up at $300-500 per ATM visit. interfaces directly to ATMs with TCP/IP to enable as an image, text or audio file. They can be linked multi-media content (graphics, audio files, etc.) to data feeds, decision making engines or card- “The ATMRewards solution provides great distribution. Beyond simple ATM screen changes, holder databases for updated, targeted one-to-one value to FIs by extending their CRM strategy the application supports targeted coupons, advertising. This allows messaging to be targeted directly to the ATM channel through the ability interactive customer polls and queries, automated based on card number, location, transaction type, to distribute timely, multi-media marketing marketing messages, personalization and more. time of day or a number of other factors. messages targeted directly to potential and current customers,” said Rajeev Bahri, managing The platform automates the process of Once a new initiative is launched, FIs can director of TEKchand. “This greatly expands ATM screen and receipt changes for marketing easily evaluate the success of their ATM campaign. the potential touch points for this largely messages, addressing the needs of each The ATMRewards event logs enable real-time underutilized marketing channel.” stakeholder in the ATM advertising process: campaign monitoring and statistical analysis. V

8 ATMRewards: Before & After

Automated Process — Task Manual Process — without ATMRewards with ATMRewards

Marketing department requests screen change and ATM operations Change static ATM screen content for key makes the change to the ATM Load file, manually sending a screens (Welcome, Wait, Thank You, Out of mini-load to reload the ATM Service) Delivery Timeframe: a few hours to one week (depending on operations availability) Marketing department, operations or other authorized business unit makes Add message on receipt header or trailer Same as static screen changes above change directly via the Web, selecting and targeting ATMs and timing, then activates the changes in real-time. Change dynamic content on ATM screen or Not possible without major development on ATM host receipt for CRM and one-to-one marketing Delivery Timeframe: six months Delivery Timeframe: immediate — the system communicates directly Not possible without developing a new load file with the ATM host for content Provide a coupon transaction Delivery Timeframe: one to two months changes and Directly with the ATM via an ATM agent for graphic file Not possible without major development on ATM host distribution. Capture ATM user feedback Delivery Timeframe: six to 10 months

Download graphic files and deploy No remote solution multi-media content on ATM screens

3. eFunds and Trusted Security Solutions team to provide remote ATM re-keying for NCR and Diebold machines

With Triple DES as an impetus, along with the technology, offers eFunds’ software and thought of future regulatory and technical processing customers a complete, proven updates, financial institutions are taking a hard solution for key management of legacy look at their long-term ATM strategy to best and remote ATMs. position themselves for upcoming changes. The Remote Re-Key solution utilizes the One of the ways eFunds and Trusted Security TSS A98-R technology to automatically create Solutions (TSS) are helping FIs with this strategy and distribute ATM master keys, eliminating is through a simplified ATM key management manual on-site key loading and reducing manage- browser. Trusted Security Solutions’ XML interface solution that enables remote generation or keys ment costs. New or existing eFunds customers is used to communicate with the driver over a and audit log maintenance. The Remote Re-Key can easily implement the Remote Re-Key solution TCP/IP link. This approach confines modifications solution, developed to interface with TSS’ A98-R since all cryptography and protocol management to the ATM device driver and eliminates any need is performed by the A98-R technology that inter- to change the host security module or terminal faces with eFunds’ CONNEX™ software platform. driving application software. All the public key Currently NCR and Diebold machines are sup- cryptography, message formatting, database access ported, though ATMs from any manufacturer can and user interface programming is provided in the benefit from the management flexibility and A98 module. efficiencies. “With CONNEX and the A98 working How Remote Re-Key works together, the customer has the most efficient key management solution available for both Trusted Security Solutions The A98-R delivers random master keys in full legacy and Remote Key enabled ready ATMs,” at a glance compliance with ANSI standards and with said Bill Hammel, managing director, global network mandates for Triple-DES and unique keys • Formed in 1998 by Abraham & Associates, software, eFunds Corporation. “It provides a per ATM. The remote re-key process requires the Inc. and J.S. Walker & Company, Inc. good value for customers in need of significant A98 to be authenticated by the ATM. In this step, for the purpose of bringing unique flexibility and failsafe security features.” V either the signed A98 public key or its certificate is security solutions to the transaction sent from the A98 to the ATM. Once verified, the processing industry. ATM will send its EPP public key to the A98. • Flagship product — the“A98 Initial ATM The A98 stores the EPP data and then generates Benefits of Remote Re-Key Key Establishment System" designed a new DES key, encrypts it with the EPP’s public • Automatically creates and distributes ATM for institutions that manage the key, prepares the required message format, and master keys: cryptographic keys for ATMs. The A98™ sends this new master key to the ATM. When the o Eliminates manual on-site key loading system incorporates patented technology EPP responds that it successfully loaded the key, o Reduces key management costs for establishing initial ATM keys in a A98 sends a cryptogram of this new key to the o Conforms to ANSI security standards host for loading into the terminal database. manner that is compliant with all known • Implements NCR and Diebold protocols applicable industry standards and network Remote keying without the • Provides the most efficient and complete operating rules, including the Triple-DES hassle of multiple upgrades solution for both legacy and Remote Key requirement and RSA cryptography. A98-R enables a new key to be sent to the ATM ready ATMs through its incorporation into • www.trustedsecurity.com via an integrated eHelpDesk module, which the existing A98 platform authorized personnel can access through a secure 9 COCC implements DataNavigator on Windows for comprehensive back-office data management

eFunds continues to offer value-added products DataNavigator benefits for that help FIs improve their performance COCC & its customers COCC, headquartered in Avon, CT, is a shrinking margins — dictates that our • Improved back-office management mutually-owned third party core and EFT customers must access and analyze back- operations for FIs processor serving financial institutions office data, but must do it in a way that • User-friendly, web-based transaction throughout the Northeastern portion of the is as quick and easy as possible in order research solution that allows for United States. to cut costs and improve efficiency,” self-service queries. To help expand its business footprint, said Rahul Gupta, senior vice president, • More comprehensive reporting and COCC has implemented the most advanced Payment Account Solutions, eFunds querying capabilities to COCC FI/CU Corporation. “Making sense of the data technologies and supported them with customers management labyrinth, and providing innovative service strategies. This combination • Easy to use self-service querying near-real time information, can help financial of advanced technology and deep support • Web-based for easy access and usage plays an important part in COCC’s value institutions improve customer service, • Self-service query capabilities mean proposition. reduce staff training times, and manage transaction data.” reduced volume of inquiries and “Bankers aren’t technologists, but they Previously, COCC’s customers were able customer service calls to COCC understand the compelling business case • COCC customer service that technology can provide and continual- to access a legacy environment to query representatives can be more ly look to technology innovations that can back-office data such as settlement histories responsive to incoming customer save them time and money,” said Steve and transactions. The process was time Kayser, senior vice president of marketing at intensive and often increased the number inquiries on transaction activity COCC. “We’ve structured our company to of calls placed to COCC’s customer support • Integrates all ATM management make a banker’s business more functional line, consuming valuable time and capital. functions into a single, easy-to-use and convenient by way of technology.” New technology gave COCC the opportunity management console for maximum to improve the process. COCC evaluated utility and efficiency In order to do so, COCC has partnered options and chose a solution that was with some of the best-known technology suitable for both its customers and itself by the sheer number of alternatives on the providers in the business to service over as a processor. 135 community bank and credit union market, and face increasing pressure to customers. Through these partnerships, Choosing a trusted, better leverage their technology invest- COCC now offers its customers a variety single vendor of choice ments. DataNavigator is a comprehensive of services ranging from account processing For 10 years COCC has relied on eFunds’ data management system that has helped and electronic banking to CRM and CONNEX™ software to drive all electronic us improve functionality at the desktop so data mining. banking functions for its customers. To our banking customers have greater con- capitalize on “single-vendor” efficiencies, it trol over their back-office data.” COCC at a glance made sense that COCC would again turn to COCC is currently implementing its long-time partner to discuss possibilities DataNavigator on Windows in its data Headquartered: Avon, CT for managing the back office. eFunds’ center, and anticipates a complete roll-out Founded: 1967 DataNavigator® on Windows® software — by late summer 2005. Expected results Annual Revenue: $43 million the back-office cornerstone of the compa- to the financial institutions and credit Business Model: COCC is one of the ny’s flexible, next-generation CONNEX unions include: fastest-growing data processing Open Enterprise™ payment architecture — companies in the United States and the • Superior customer service through enables consolidated real-time EFT data expedited information delivery only mutually-owned data processor management and customer support. This dedicated to financial institutions. combination of features proved to be the • More comprehensive reporting and Clients: 135 right fit for COCC. querying capabilities Client Assets: $26 billion Furthermore, DataNavigator’s unique • Web-based access throughout the client combination of capabilities — transaction branch network Recognizing the need for research, reporting, exception item reporting, • Decreased calls to COCC customer integrated back-office device management and settlement — met service line due to self service management COCC’s efficiency requirements. Since capabilities information is accessible from a single web- Because COCC focuses on improving the • Time and cost savings due to improved based access point, operations personnel functionality and convenience processes that financial institutions need, can use one tool to analyze a variety of data it understands the value that single-point points. In addition, the access to real-time “For a decade, eFunds has added value to access to back-office data provides. data means that COCC’s customers have our customers’ businesses,” said Richard. Handling settlement, consolidation and uninterrupted 24 x 7 access to their transac- “The addition of DataNavigator as a tech- management of transaction data from tion data for better reporting and improved nology tool to serve our FI customers will a centralized location not only improves operational monitoring. help us reach our goal of providing rich, efficiency, but also reduces costs and transaction-based information and the better leverages back-office data for the “It was essential to us that the solution convenient, self-service tools needed benefit of customers. we chose was both powerful and easy to to fully leverage back-office data.” use,” said Cecile Richard, Technical V “The current banking environment — Product Manager. “Bankers are challenged with increasing regulatory compliance and

10 eFunds Pre-paid SolutionsCard in a Box Get Started with eFunds right out of the box Are your customers demanding easy-to-use gift card solutions? What eFunds does for you

If you’re a small to medium-sized financial institution or credit union, • We take care of all prepaid program administration, you need a simple, cost-effective prepaid solution that you can including set-up, sponsorship and issuing deliver to your customers today. You need a turnkey program that • We take care of all cardholder customer service helps you focus on your customers — not manage complex card issuing, • We take care of all payment processing processing and administration services.

With eFunds’ “Card in a Box”, you can enter the market quickly and easily, with a minimal up-front investment and ready access to all the tools you need to market prepaid products in the branch.

Getting Started A few, simple choices Getting your eFunds Card in a Box solution up and running is easy — here’s all we need to get you started: • Your settlement account for card loads • Your logo for your branded institution card products • Your choice of plastics • Your IP address for in-branch card activation

The benefits

• Low, one-time start-up fee • One price for the life of the card – no additional fees or charges after initial purchase • Low risk — minimal financial investment, minimal training requirements • Faster time to market • You set your own card re-sale price – control your own revenue stream • No administration and program management headaches

Readyto take the next step?

Visit www.efunds.com/cardinabox For more information: Call us at 1-888-9eFunds, ext. 3 Contact your eFunds account representative for more information

© 2005 eFunds Corporation. All Rights Reserved New CONNEX Open Enterprise Introduction

A better view of your payments enterprise

New CONNEX OE Enterprise √ View™ consolidates transaction Accessing Enterprise View data, makes back-office From a security perspective, users must log on to Enterprise View, and each view pack is secured through the use of a security profile. The profile will control what view packs more cost-effective the user has access to. In addition, data maintained within the system is secured. This In today’s electronic payment processing helps to ensure that users with a certain set of access privileges are restricted to specific environment, financial institutions and view packs. processors typically run multiple in-house and third-party vendor applications to man- Dashboard Refresh age their issuing/acquiring businesses, monitor their ATM fleet, and track their Dashboard information can be refreshed manually or automatically. Automatic refresh settlement positions across the networks. can be set through user preferences — this includes turning automatic refresh on or off, as well as the time interval for automatic refresh.

Enterprise View Benefits: The Main “View Packs” Enterprise View ships with three standard view packs: ATM Status, Acquirer/Issuer • Easy-to-use interface Activity, and Settlement Positions. • Connects multiple transaction data systems and repositories • ATM Status — Displays a graphical representation of how many ATMs are currently • Leverages power of DataNavigator open, closed, closed for maintenance, or wounded. and CONNEX OE • Acquirer/Issuer Activity — Displays the average transaction per second rate for the • Provides at-a-glance health of last hour of processing, along with the current day’s transaction count and approval entire payment processing operation rate for on us/at us, us at foreign, and foreign at us activity (through the time of the • Reduces back-office management last refresh). expenses and resources • Flexible user profiles and access • Settlement Position — Shows the previous day’s settled financial activity along with the current settlement position (through the time of the last refresh). controls Get a new view on your enterprise — contact eFunds today

For back-office operators, there is an For more information on CONNEX OE Enterprise View, contact your eFunds account ongoing challenge to collect management representative, or email us at [email protected]. level transaction data within a single, user- friendly application that connects seamlessly to multiple data repositories and systems. For years, eFunds software and processing cus- tomers have leveraged DataNavigator to take advantage of powerful transaction analysis and settlement features. Now, with OE Enterprise View, customers take their back- Upcoming Events office management to a new level. For a look at upcoming products and services, please visit eFunds at the following Enterprise View leverages multiple industry events. transaction data sources to collect and Conference/Tradeshow Date Location display key management level payment processing information through a highly ATM & Debit Forum Sept. 25 — 27, 2005 Sheraton Bal Harbour interactive, easy-to-use “dashboard”. Enter- Bal Harbour, FL prises can choose from pre-defined ITUG: The International Oct. 23 — 27, 2005 San Jose Convention Center packages of summarize data — called HP NonStop Users Group San Jose, CA “view packs” — that represent segments of the overall payments enterprise. BAI Retail Delivery Nov. 15 — 18, 2005 Orange County Convention Center Initially, Enterprise View will ship with Orlando, FL three view packs: ATM Status, Acquirer/Issuer Activity, and Settlement Positions. As additional view packs become available, they will be shipped for inclusion (and integration) with Enterprise View. View packs rely on prerequisite data sources — if these data sources are unavailable, the view pack is disabled. V

12 Main Enterprise View Interface ATM Status

On the left hand side of the dashboard, a drill-down button for each of the view This view pack provides a list of the ATMs this user has authorization to view. packs appears. This is a scrollable list of available view packs. Below the list of Information provided for each ATM includes: buttons is a ’summary’ button, which will always bring the user to this initial • The Device ID display. The right hand pane (labeled Summary) shows a high level summary for each of the view packs. View pack summaries will be shown for the view pack • Current status of the device (open, closed, closed for maintenance, buttons displayed in the navigation pane. or wounded) • Date/time of the last transaction from this device • Current cash balance in the ATM • Approval rate (current day from midnight through the time of the last refresh) The list of ATMs can be sorted by clicking on any column heading — in ascend- ing or descending order. In addition, if the user clicks on an individual device, additional information is displayed in the lower pane. This information includes the device address and the last ten status messages from the device.

Acquirer/Issuer Activity Settlement Position

The Acquirer/Issuer Activity view pack displays four types of acquirer/issuer The Settlement Position view pack displays a list of each network that the activity: transaction totals (amounts), transaction counts, surcharge amounts, organization participates in, displaying the network ID, total transaction and surcharge fee amounts. Activity information can be displayed for today amount, total transaction count, plus the total adjustment amount and count (hourly), for the current month (daily), for the current quarter (weekly), or for for each network (today and yesterday). In addition, a pie chart on the right the current year (monthly). In addition, for each of these periods the previous hand side of the pane displays this same information graphically. period can be displayed (yesterday, last month, last quarter, or last year).

13 eFunds’ IST/Switch enables Bank of Punjab to deliver new services and expand customer base

Bank of Punjab Limited, a new generation, technology-driven private sector bank, has Bank of Punjab Firsts positioned itself on the core of new banking solutions by proving innovative financial • One of the first banks in India to services across a variety of delivery chan- focus on retail banking nels including branches, Internet, ATM, ogy standards to its customers. Additionally, • The first bank in North India to POS, kiosk, mobile devices, e-mail and the bank was able to provide many value- install a state-of-the-art ATM call centers. The bank offers a spectrum added services to its customers, enabled by payment gateway, enabling online of retail and corporate banking services IST/Switch’s short “decision to deployment” transactions and has 136 offices and more than 800,000 lifecycle. Some of the innovative services • The first bank to introduce customers serviced by a team of 2,000 that the bank introduced through IST/Switch “faxbanking” and “telebanking” dedicated executives. include the VISA gift card, POS through for its customers Today, Bank of Punjab has a network CDMA technology and co-branded cards. • The first bank to offer extended of 228 ATMs at on-site branches as well as Setting the stage for banking hours for its customers offsite locations and more than 10,000 future innovation point-of-sale POS) terminals at merchant • The first among peer banks to set Leveraging the IST/Switch implementation, establishments. The bank has undergone up a residential fully equipped Bank of Punjab also launched a series of strategic partnerships with MasterCard® and training institute innovative payment solutions. By utilizing Visa® for debit and credit card acquiring on the Electronic Bill Presentment and Payment its ATM and POS machines, along with the (EBPP) system, bank customers are now issuance of a Maestro® debit card branded right combination of payment technology able to pay utility bills such as insurance as “eBank.” and delivery excellence. eFunds and HMA premiums, telephone bills, water bills and brought those qualities together seam- Bank of Punjab selects electricity bills through the bank’s online lessly, helping us to both retain current IST/Switch to enable banking service. Customers can also view customers and capture new market expanded growth full bill details and make immediate or opportunities.” future payments. “When searching for solutions, one of the “We believe we are a step ahead of distinct advantages for Bank of Punjab was In addition to the Internet, customers technology in the retail banking space, with IST/Switch’s flexibility to meet the bank’s future are also able to pay bills through bank IST/Switch as our switching infrastructure,” delivery channel needs. IST’s open platform ATMs. The bank has even expanded its said Mr. Sharma, managing director, Bank design helped the bank integrate various back- mission to provide world class banking of Punjab. “IST’s open solution architecture end systems, while its integrated multi-channel services by leveraging technology and has provided us with the necessary flexibil- architecture provided BOP with a consolidated eBanking through a new “mobile wallet” ity, power and reliability to meet our ever customer view for better decision-support concept — a solution allowing bank cus- growing business demands.” systems,” said Mr. S.V. tomers to make and receive V Krishnamurthi, senior merchant payments through vice president of their mobile phone. global sales and With a wealth marketing, HMA of new technology STARware, distributor services, Bank of HMA STARware — IST/Switch of IST solutions. “This Punjab is sure to was tested when the continue its rapid Customers in India bank decided to growth. eFunds’ • IDBI Bank change its hardware IST/Switch is well • Bank of India platform midway positioned to support • Jammu & Kashmir Bank through the highly the bank along its • ING — Vysya Bank customized switch path by providing a scalable, • Syndicate Bank implementation. The scalability also flexible solution that helps bring • Bank of Punjab enabled the bank to plan for the new services to market faster • South Indian Bank future introduction of new technol- and more effectively. ogy solutions, such as smart cards.” • Bank of Rajasthan “With the expertise of HMA STAR- • Development Credit Bank Ltd. Following the implementation, ware and eFunds, we are now in a • Dutch-Bangla Bank Ltd. the bank successfully migrated to position to drive positive changes for • India Switch Company the Triple DES standard in compli- our banking customers,” said Mr. Tejbir ance with MasterCard’s mandate to all Singh, executive director, Bank of Punjab. • Bharat Overseas Bank [ASP] member banks, further showcasing eFunds’ “To continue our commitment to cus- • Bank of Bahrain & Kuwait [ASP] commitment to providing the latest technol- tomer service, it was essential to have the

14 eFunds further strengthens international processing capabilities with acquisition of India Switch Company Acquisition from HMA Group will accelerate evolution of the Indian banking industry

In April 2005, eFunds announced that, though its subsidiary, eFunds International India Pvt. Limited, it was set to acquire “This acquisition is a significant step in the the business interests of India Switch Company (ISC) from execution of our long term strategic plan for Funds’ HMA Group. India business.” The agreement, which carries an initial cash purchase price of $17.5 million (US), is for the current ATM managed -Atul Kunwar, managing director, eFunds, India services and payment processing interests of ISC. eFunds’ acquisition of ISC will further help promote a cashless pay- ments infrastructure and better align India with the global “As a recognized market leader in ATM management financial services market. and electronic payments, eFunds will undoubtedly play a “This acquisition is a significant step in the execution of key role in the accelerated evolution of the Indian banking our long term strategic plan for eFunds’ India business,” industry,” said Harish Murthi, chairman of HMA Group. said Atul Kunwar, managing director, eFunds, India. “It will “The existing ISC customers will now have the opportunity leverage the global payments expertise eFunds has accumu- to access best-in-class solutions that will contribute posi- lated in products, platforms and service delivery to bring tively to building the expanding payments infrastructure in competitive and innovative solutions to the maturing Indian India. HMA Group itself will continue to focus on develop- financial services industry.” ing businesses in other banking automation areas.” Prior to the acquisition, eFunds and ISC had already forged an existing relationship. For several years, ISC had HMA Group Companies used eFunds IST/Switch software to drive its two shared interchange networks, CashTree and BANCS. IST/Switch is • India Switch Company (acquired by eFunds) built on an open architecture and provides a multi-channel, • HMA Data Systems Pvt. Ltd. multi-delivery gateway for customers like ISC and Bank of • HMA STARware (an eFunds distributor/partner) Punjab (see article at left). The acquisition not only provides eFunds an additional customer base, it further opens the growing domestic pay- ISC is one of three third party EFT processors in India, ments market in India and demonstrates the company’s focusing specifically on retail delivery channels. The compa- commitment to conducting business in India. eFunds currently ny introduced India’s first Shared Payment Network System operates service centers and employs over 4,500 associates in (SPNS) for premier banking institutions like Bank of India. Mumbai, Chennai and Gurgaon. In fact, Bank of India utilized ISC’s Total Retail Infrastruc- V ture Management Services (TRIMS) — a pioneering concept for third party EFT processing of retail delivery channels — for ATM network sharing and banking via mobile phone connectivity.

Current ISC Services • TRIMS (Total Retail Infrastructure Management Services), which provides complete outsourced ATM deployment and management to banks in 20 Indian cities • CashTree and BANCS, two shared interchange networks that operate eFunds IST payments software.

15 eFunds partners with GFG Group to provide an innovative testing and simulation solution for FIs

Software enables simplified Examples of FINsim’s testing desktop solution for capabilities include: GFG Group at a Glance previously difficult and time • New ATM states and screens • Established in 1990 as a consuming EFT/POS, ATM and • Changes to management software consulting partnership switch testing • Visa and MasterCard certification • Grew with increasing focus on With the many changes facing a FIs EFT the development and support of • EMV compliance networks — standards compliance, deploy- payment solutions ment of new financial service solutions, • Bilateral links • 47 full-time staff, all payments and hardware and software upgrades — • Network management and industry specialists development and testing departments are financial transactions • Offices in New Zealand, strained to create the many different sce- • Hardware failures and error conditions Philippines, and Australia narios required to accurately test across servicing dynamic, rapidly- multiple machines, devices and platforms. • Automated stress tests and detailed statistical reporting evolving industries To assist with this complex process, • Assignments and technical • Capacity planning eFunds has partnered with GFG Group, product support in over 40 a highly specialized international pay- • Cryptographic processing for PIN world markets ment solutions company, to distribute encryption, message authentication, • Accredited by World Bank GFG:FINsim. FINsim is an ATM, POS and dynamic key exchange, Triple DES and • www.gfg-group.com interchange link simulator that reduces the Remote Key Initialization through RSA time for ATM network development, main- Leading Australian Bank tenance and certification by providing The results of the switch to FINsim desktop emulation of a transaction envi- realizes error reductions and were impressive. By employing the ability ronment. FINsim eliminates the need to increased reliability to design repeatable scripts tailored to purchase test devices or create physical test One of Australia’s leading financial institu- individual device requirements and capa- cards specifically for development, cuts tions employed FINsim to replace an bilities, the bank was able to improve their time to market and improves the quality existing system in their test and pre-pro- transactional testing capabilities. This of new releases. duction test environments. The previous increased the scope of the bank’s test cases system ran six transaction types across 20 and devices tested within a practical time devices using 30 cards. frame, also improving the reliability of With the FINsim software in place, the results from the tests. bank realized several changes in their test In addition to increased testing capacity environment. When running regression and reliability of results, the bank saw scripts, the bank increased the number of additional benefits in the following areas: scripts and ran them on more than 100 • Security key loads — By running different devices using 100 different card repeated tests on a device, the bank types, with the largest script executing was able to identify a defect in the 1,700 transactions. These volumes and system. The tests showed that certain types of configurations were not possible POS devices were changing their with their previous solution. security for every transaction instead of In the bank’s pre-production test envi- every 256 transactions. Although no ronment, similar devices and transaction impact to the customer existed, types were employed, but the transactions increased CPU and telecommunication Improved testing scenarios were also weighted in proportion to actual charges were incurred because of the through one simple desktop production numbers. The scripts generated defect. FINsim was able to repeatedly application around one million transactions each and prove the problem existed, which ran for many hours allowing a realistic enabled the necessary data to be Regardless of how a FI’s EFT network is loading of the system similar to those collected to develop a fix for the defect. set up, FINsim can simulate any of the found in production. system’s major components. It can support concurrent testing of multiple devices with different hardware configuration and proto- GFG:FINsim incorporates three simulator types for cols (TCP/IP, X.25 and SNA). This enables efficient, cost-effective development and testing. all devices to be tested without the expense of purchasing each device version ATM Devices EFT Switch Devices POS Devices or variation, as well as saves the time NCR, NDC, ISO 8583 & AS2805 Generic devices based required to reconfigure devices, change NDC+, APTRA Visa (Base I and SMS) on Hypercom terminal parameters and reload data between tests. Diebold 911, 912 MasterCard (Banknet) IBM 473x

16 Reduce ACH Costs, Take Control eFundsSM ACHPS

• Non-bank card creation — Due to lack of availability to non-bank generated cards, testing was previously limited to just a few banks and card types. FINsim’s ability to create non-bank generated cards enabled transaction testing Is your ACH business growing? from seldom to never tested issuers, increasing the reliability of their tests. • Other bank interchange links — FINsim Are you ready to meet the challenge? allowed the bank to perform regression testing without the dependency for external links to be in operation. s a financial institution, you recognize that ACH processing presents both opportunities • New card prefix creation and testing — One A of the bank’s projects involved testing the and challenges. You can build new revenue streams, attract new customers and enter new routing rules of more than 100 new card markets to expand your business. At the same time, you need a cost-effective solution that prefixes. Rather than physically calculating acceptable card numbers, the prefixes were helps you stay on top of escalating volumes, new NACHA rules, security and technology entered into the script generator that created a upgrades, risk concerns and regulatory requirements. What do you choose? An expensive listing of usable prefixes where manual testing could be performed and test transactions could in-house solution with heavy capital investment, or an outsourced solution that makes you be run on every card in demand. This process saved the bank the time it would have taken to give up control and flexibility? manually calculate the numbers and increased the reliability of the new card prefixes. With eFunds, you have a superior choice that opens up a whole new Discover how eFunds can help world of ACH possibilities. eFunds you reduce the cost and risk of ACH processing: ACHPS gives you all the control of an in-house operation, but with an 1 Register today to access the archived version of the ACHPS Webcast with Wells Fargo and advanced, high-speed, continuous City National Bank flow architecture. You stay in control. Need a closer look at how ACHPS is helping We handle the processing. No more financial institutions today? Register for workflow bottlenecks. No more wor- eFunds’ ACHPS Webcast at www.efunds.com/achps rying about whether you can keep up Using FINsim, the bank also tested the impact with demand. Plus, eFunds ACHPS 2 Contact eFunds Today of Triple DES and EMV against their CONNEX gives you all the risk features and Contact eFunds to get started with ACHPS. code, as well as completed standard regression Web: www.eFunds.com/achps tests on all their new software releases. FINsim security controls you need in an ACH Email: [email protected] allowed the bank to simulate the testing of EMV system for peace of mind. four months prior to the delivery of the physical Telephone: 1-888-9eFunds, ext. 3 EFT/POS devices — speeding their deployment time for the new devices. The solution is simple. eFunds for The Triple DES tests proved to deliver similar ACH — and everything EFT. positive results for the bank, allowing them to test the new CONNEX command to deploy Triple DES encryption across multiple ATMs through the FINsim clone functionality — something that was not possible using previous conventional ATM tests. The project was so successful that the bank has completely reorganized their delivery and testing methodology within the ATM and POS CONNEX systems. V

© 2005 eFunds Corporation. All Rights Reserved 17 Improving the back office — Outsourcing the right processes at the right time eFunds Global Outsourcing Solutions offer a range of options that span multiple business processes Outsourcing, as many businesses know, has moved from a perceived “risky” option for Is outsourcing for you? If you can answer lowering costs to a well-established, necessary Key industry trends: YES to any of the following questions, you means to improve process efficiency, customer should contact an eFunds Global Outsourcing • One-third of the world’s FIs are satisfaction and remain competitive. The choice representative to discuss outsourcing options. either near-shoring or offshoring to review outsourcing as a viable option is (Celent, 2004) further reinforced by business challenges like • Do you have well documented • Increased defaults on credit card increased competition, lower margins, balances and checks are leading to compliance and regulatory mandates, and training and procedures for your general business uncertainty. business processes? the need for collection services for • Do you a have high volume of exception all industries processes? • Teleco trends include bundling of eFunds Outsourcing • Can your process activities be services, an increase in wireless by the numbers: easily unbundled? data traffic and use of cable by • Are your technology platforms disparate voice customers (TIA, 2004) • 4,500+ associates and not well integrated? • Over 120 distinct business processes • Are your transactions repetitive • Over 100 million back office and standard? What to outsource and when transactions / year The evidence to outsource is compelling: • 40 million live calls / year Call eFunds GOS at 888-9eFunds ext.4 lower costs, improved quality, and streamlined • 13 global facilities business processes. But, businesses must • Nine service centers worldwide intelligently face the challenge of identifying eFunds to help financial institutions, retailers the right processes to outsource in order and telecommunications companies meet their to deliver the maximum benefit in an Universally, renewed focus on risk business goals. appropriate timeframe. management, corporate governance and capital In order to facilitate better transaction For the most part, measuring one allocation means companies continue to look account management, eFunds Global outsourcing process candidate to another has to outsourcing as a way to increase their overall Outsourcing offers flexible services tailored been highly subjective guesswork. Many times return on investment while continuing to focus to meet the specific needs of our customers. the decision is made by committee, which, on their core competencies. Industry analyst We improve or re-engineer business processes while democratic, is not the best way to ensure Gartner Group expects the business process such as data application, marketing activities, a successful initiative that delivers the desired outsourcing (BPO) industry to be a $77 billion transaction processing, account analytics, billing results. Other times, senior management assigns dollar industry in North America by the end of services and retention strategies for businesses the task to an individual who must research the 2005, and suggests it will continue to grow at around the world. business in order to make an assessment. a five-year CAGR of nine percent. There is no The problem with this approach is that if the doubt about it — the BPO industry is making an eFunds outsourcing initiatives also stream- company has not outsourced previously, no indelible impact on global business, especially lines transactions and payment processing single business unit wants to be the first and for the financial services market. services for customers, such as reconciliation and merchant acquiring chargebacks. will shy away from pursuing an initiative. By employing an outsourcing strategy with Businesses have a much better success Global Outsourcing Solutions eFunds, our customers improve process turn rate if they approach the decision of what around times and efficiency. at a glance and when to outsource as a process itself, eFunds outsourcing staff is well trained rather than a single event. Walking through a • 3rd largest BPO provider and familiar with the entire client relationship well-defined methodology not only saves time • World’s largest ATM outsourcing provider process; we are able to provide quick and effec- and money, but also promotes program buy-in • Vertical expertise: FI, Retail and Telco tive receivables management for our customers. and ultimate success. And, since eFunds has over 30 years domain eFunds Process Readiness Index (PRI) expertise in the outsourcing industry and years Whether your outsourcing objectives are to Adding more value to of experience within our target markets, we are reduce costs, improve quality or dramatically every transaction able to add additional value by understanding transform existing processes, eFunds Global At eFunds, our mission is to make every how to think like you think. We understand Outsourcing can help determine an appropriate transaction more valuable for our customers. your industry and your business, helping us outsourcing strategy. To help drive the internal Through risk management, global outsourcing analyze the drivers motivating financial services. business analysis process, eFunds has and electronic payments initiatives, eFunds Through our outsourcing processes and domain developed Process Assessment and Analysis helps customers improve margins, increase expertise, we are able to share new information tools that identify those processes that are ripe customer satisfaction, and streamline processes. about your customers and provide intelligence for outsourcing. And outsourcing programs are a key way for to you that will help you win, keep and serve your clients.

18 eFunds partners with Fair Isaac to enhance debit transaction fraud detection

Implementation of Falcon 5.1 solution will deliver high-volume, high-speed fraud detection at point of sale

continuing to deliver the highest level of fraud Falcon 5.1 is a good fit for eFunds customers protection. We’re implementing Falcon 5.1 to who have expressed a strong interest in a help us address these needs,” said Rob Myhre, fraud solution that accurately scales with vice president of EFT processing at eFunds. their increasing transaction volumes and New Falcon 5.1 features that will assist provides more flexible rules capabilities. eFunds in meeting the fraud needs of its processing customers include: In order to further combat the rising risk of • An updated Application Program Interface debit fraud, eFunds is deploying Fair Isaac’s (API) for custom designed features Falcon™ Fraud Manager 5.1 solution in its data • Rules Editor which eliminates the number processing centers. and length of rules eFunds’ implementation of the Falcon 5.1 • New reporting technology for quick solution will be the first for Fair Isaac and is and easy data analysis and productivity designed to help eFunds processing customers monitoring quickly identify fraudulent activities and take immediate measures to stop them. • Redesigned case management system that lets users streamline case handling The security of consumer account This process, called the Process Readiness Index, and decisioning and process more cases information has long been a core pillar of analyzes and ranks five key areas including strategic per hour. eFunds’ corporate value proposition. With the drivers, operational impacts, transition readiness, increase of fraudulent activities — especially • Highly flexible architecture that will technology environment and automation/re- identity theft, which was noted in a 2004 ABA easily integrate with future fraud engineering. It also requires management-level Deposit Account Fraud Survey as the leading analytic technologies. involvement and a set level of communication threat against the industry — becoming more between eFunds and its customer to ensure prevalent, eFunds is committed to taking action processes are properly explained and evaluated. to reduce the incidence of fraud loss for its How does Falcon 5.1 Identify From this analysis, clients are provided with a processing customers. Fraudulent Activities? roadmap of those processes that are ready to be eFunds’ ongoing efforts to provide reliable, • Sophisticated neural network models outsourced and those that are not well suited at advanced processing solutions that help the present time for third party assistance. • Patented account profiling technologies financial institutions efficiently automate • Flexible, user definable intelligent rules By examining your business and working in con- payment transactions and fraud prevention • Case management to analyze payment junction with your staff, eFunds is able to act as a is what led the company to expand its relation- card transactions for subtle signs trusted partner, making recommendations that work ship with Fair Isaac and plan to deploy Falcon of fraud for you and match with your corporate culture. V 5.1. In particular, customers had to be able to respond to changing fraud patterns faster and take advantage of more flexible rules writing capabilities. “The fraud environment is constantly changing and Falcon’s adaptability to those eFunds FI domain “Our customers have expressed a strong changes ensures that it will continue to deliver expertise includes: interest in a solution that accurately scales great value to processors and card issuers with their increasing transaction volumes and • Retail banking around the world,” said Sonja Schindeler, vice provides more flexible rules capabilities, while • Card operations president of Fraud Solutions at Fair Isaac. • ATM operations Implementing Falcon 5.1 into eFunds’ • Receivables management Fair Isaac at a glance: payment processing data centers makes • Mortgage services perfect sense for FIs using eFunds payment • Investments and brokerage • NYSE: FIC processing services. By integrating core debit card processing with the industry’s leading • Teleco services including: Wireless, ISP, • Founded: 1956 fraud detection technology, customers can Local, Long-distance • Falcon Fraud Manager protects 85% have greater confidence to meet increased • Retail back-office of US credit card transactions • Fair Isaac FICO scores are the most transaction volumes in the future and significantly reduce financial losses due used credit bureau scores in the world to fraud. • The top 10 US card issuers use FI fraud V detection If you have questions about eFunds outsourcing • www.fairisaac.com services, please contact a representative at 1-888-9eFunds ext. 4.

19 eFunds Newswire eFunds Completes Acquisition software to manage its next generation ments and holdback arrangements. An addi- of Business Interests of India shared branching network. eFunds and tional payment may be made approximately Switch Company CUSC will continue to work together to one year following the closing if the business enhance the IST/Switch transaction achieves certain revenue objectives during Mumbai, India, June 20, 2005 — eFunds processing solution, while ensuring that period. The maximum amount payable Corporation today announced that it has ongoing business continuity through eFunds in respect of this earn-out is $2.5 million. completed the acquisition of current ATM processing services. managed services and payments processing eFunds Reports Fourth-Quarter interests of the India Switch Company. eFunds Corporation Reports and Full-Year 2004 Results First Quarter 2005 Results “The acquisition will leverage the SCOTTSDALE, Ariz., Feb 23, 2005 — eFunds global payments expertise eFunds has SCOTTSDALE, Ariz., May 4 — eFunds Corporation today reported its financial accumulated in products, platforms and Corporation today reported first quarter net results for the fourth quarter and full-year service delivery to bring competitive and revenue of $114.2 million. This amount ended Dec. 31, 2004. innovative solutions to the maturing Indian represents an 8% improvement over the net For the fourth quarter of 2004, the Company financial services industry,” said Atul Kun- revenues of $105.7 million reported by the reported net income of $11.3 million, or war, managing director, eFunds India. Company’s core operating segments during $0.22 per diluted share, compared with net the first quarter of 2004. Overall, revenues income of $10.1 million, or $0.21 per diluted eFunds Corporation to Acquire declined by 19% from the $140.9 million WildCard Systems, Inc. share, in the fourth quarter of 2003. Operat- reported for the first quarter of 2004 as a ing income was $16.4 million, or 12.6 SCOTTSDALE, Ariz., June 9, 2005 — percent of net revenue, eFunds Corporation today announced compared to operating income of that it has signed a definitive agree- $13.0 million, or 9.6 percent of net ment to acquire WildCard Systems, revenue, reported in the fourth quarter Inc., a privately-held provider of of 2003. Net revenue decreased prepaid and stored value solutions to $4.9 million to $130.5 million in the financial institutions, retailers and fourth quarter of 2004, compared to other payment issuers. net revenue of $135.4 million reported The two companies signed a in the fourth quarter of 2003. This distribution agreement in November decrease was principally due to the of 2004 and have since signed two sale of the Company’s ATM portfolio tier one financial institution deals in November 2004. under eFunds’ existing alliance with Full-Year 2004 MasterCard International. The part- nership has also validated the market For the year ended Dec. 31, 2004, net demand for prepaid payment products, and result of the sale of the Company’s ATM income increased to $40.8 million, or $0.83 has proven the Companies’ ability to work deployment business in November 2004. per diluted share, compared to net income together to deliver an integrated debit and Operating income increased to $16.8 of $28.9 million, or $0.61 per diluted share, prepaid solution. million, or 15% of net revenue, as compared reported in 2003. Reported operating income increased $19.8 million to $58.5 million, or “We are excited to welcome WildCard to operating income of $14.0 million, or 10% of net revenue, reported in the first 10.6 percent of net revenue in 2004, as to team eFunds — this is a natural fit,” compared to operating income of $38.7 said Paul Walsh, chairman and chief execu- quarter of 2004. First quarter net income was $13.2 million, or $0.26 per diluted million, or 7.3 percent of net revenue, tive officer of eFunds. “The complementary reported in 2003. nature of debit and prepaid brings a pow- share, compared to net income of $9.4 erful value proposition to the financial million, or $0.19 per diluted share, reported eFunds recorded net revenue of $552.1 institution, retail and other issuer markets for the same quarter in 2004. million for the year ended Dec. 31, 2004, served by both companies. This acquisition The Company also announced that it compared to net revenue of $532.1 million is an important step in the execution of has completed its $100 million share repur- recorded in 2003. eFunds’ strategic plan to build breadth into chase program. The Company bought back eFunds Corporation to Acquire our electronic payments offering.” approximately 4.6 million shares pursuant to ClearCommerce Corporation this initiative. Credit Union Service SCOTTSDALE, AZ, Jan. 12, 2005 — eFunds Corporation Selects eFunds eFunds to Acquire Corporation announced that it has signed DataNavigator Software for Business Interests of a definitive agreement to acquire Back-Office Processing India Switch Company ClearCommerce Corporation, a privately- held provider of fraud prevention and SCOTTSDALE, AZ, May 16, 2005 — eFunds MUMBAI, India, April 5, 2005 — eFunds payment processing solutions for ‘card-not- Corporation today announced that Credit International India Pvt. Limited, a subsidiary present’ (CNP) transactions, including online Union Service Corporation (CUSC) has of eFunds Corporation today announced that and mail order/telephone order (MOTO) selected DataNavigator(R) for Windows(R), it has signed a definitive agreement to sales. The initial purchase price of approxi- eFunds’ open platform back-office manage- acquire the current ATM managed services mately $19.4 million will be paid in cash at ment solution, for use at more than 630 and payments processing interests of India closing, which is expected to occur in the member credit union locations. Switch Company from HMA, a privately-held group of companies with experience of first quarter of 2005 subject to the satisfac- CUSC has also renewed its eFunds providing end-to-end solutions for debit tion of customary closing conditions. shared branching and gateway processing services to the Indian retail banking sector. The ClearCommerce acquisition will agreement for an additional three years, and The initial cash purchase price is $17.5 strengthen eFunds’ POS and online transac- currently licenses eFunds’ IST(R)/Switch million, subject to working capital adjust- tion processing capabilities and add a ‘CNP’ 20 fraud prevention solution to its retail and financial service offerings. It will also expand the Company’s International Update market footprint in the retail sector with more than 140 new customers in seven countries. The com- bined entities will provide customers with a comprehensive perspective on fraud detection, based on data from both ClearCommerce’s eFunds to provide card processing services for Société Générale Group FraudDetect(TM) database and eFunds’ DebitBureau(R) database. eFunds has won a contract to provide The eFunds solution makes use of many eFunds’ acquisition of ClearCommerce was complete card processing services for the components used in the company’s own finalized on January 31, 2005. international retail banking subsidiaries of data centres in the US, for example, the back United States Postal Service Selects Société Générale, one of the largest financial office services provided by DataNavigator®. eFunds’ EFT Software Solution services groups in the euro zone. It also integrates to components of the bank’s eFunds will apply its 30-year history of own existing payments infrastructure. In SCOTTSDALE, AZ, Nov. 17, 2004 — eFunds US debit transaction processing knowledge, addition, eFunds will deploy other software Corporation announced that the United States in addition to proven, open platform, products, such as IST/MAS and IST/Clearing, Postal Service (USPS) has selected eFunds’ open international credit card acquiring expertise, to handle merchant acquiring activities. systems electronic payments software for use at to provide an integrated payments hub “The integrated payments hub is a great more than 33,000 locations and 70,000 point-of- solution for Société Générale. Each of the example of how eFunds can combine its core sale (POS) devices nationwide. bank’s subsidiaries will be offered full competencies in payments and outsourcing The eFunds solutions, which are key third-party processing services across the to solve real business problems for large components of the company’s CONNEX Open transaction lifecycle, including ATM financial services organizations around the Enterprise next-generation payments platform, management, merchant acquiring, back world,” commented Kathleen Flanagan, will support postal customers’ ongoing purchases office services and card management. senior vice president, eFunds International. of USPS products and services with either a credit The bank, which serves more than 17 “In the US, eFunds’ software supports over or debit card, regardless of whether they purchase million retail customers worldwide, will 80% of domestic payments traffic and this, products/services at a post office branch location benefit from faster speed to market for our first European processing deal, is another through a POS device, at a self-serve kiosk or via new products and services, as well as the step towards establishing our processing the Internet. efficiencies resulting from processing on a business globally.” eFunds Announces CONNEX Open common platform. Enterprise for the Financial Services Industry Switching on in India Internationally, risk management is on SCOTTSDALE, AZ, Nov. 16, 2004 — eFunds everyone’s agenda as consumer concern grows In line with CEO Paul Walsh’s stated objective Corporation announced plans to introduce a over the integrity of personal account informa- of growing the international business, in April next-generation version of its CONNEX™ EFT tion and the security of cardholder-not-present we announced that eFunds would purchase software platform. transactions. Globally, banks know they have a the business interests of India Switch Compa- CONNEX Open Enterprise™ (CONNEX OE) will significant problem with fraud and they need to ny (ISC), an organisation with considerable be an integrated suite of solutions for payment be proactively putting measures in place to experience of providing solutions to the delivery, back-office operations, authorization protect the merchants and consumers who domestic Indian banking market. ISC provides services and card management — all based on a transact business through them. In the UK, end-to-end solutions for ATM Managed Ser- shared, flexible, integrated solution delivery 66 per cent of consumers refuse to make online vices, as well as operating two payment framework. CONNEX OE will support all existing transactions for fear of credit card fraud, accord- switches. This acquisition demonstrates payment channels, devices and types, and will ing to a survey conducted by ClearCommerce. eFunds’ commitment to growing India as a provide a flexible foundation that promotes the Who can blame consumers for their reluctance market, as well as using its skills to support rapid introduction of new payment services at every when, according to the Association for Payment Business Process Outsourcing activities for point in the payment transaction lifecycle. Clearing Services, credit card fraud in the UK clients in the US and UK. It also completes topped £500m in 2004, up 20 per cent from the eFunds and WildCard Deliver another step in establishing a global process- previous year. Meanwhile in Australia, credit Combined Stored Value Solution ing model for electronic payments. card skimming is an AUD100m per year crime, SCOTTSDALE, AZ, Nov. 16, 2004 — eFunds Turning the spotlight on card crime according to the latest issue of ePaynews.com. Corporation announced a partnership with News that a well-known TV star had fallen The addition of the ClearCommerce solution WildCard Systems, a market leader in the delivery victim to bank account fraud perpetrated by set to our portfolio will allow the eFunds Inter- of stored value/prepaid card solutions, to combine a UK-based call centre employee was the latest national team to help our customers address eFunds’ EFT debit product suite with WildCard’s story to bring the mushrooming fraud problem more of the issues around fraud management. industry-leading stored value/prepaid card back into the public eye. Not long afterwards, Banks have been preoccupied with the roll-out capabilities to offer a single source for both EFT Scottish police arrested 28 people in connection of chip and PIN at point of sale in some coun- and stored value processing capabilities. Through with a £2m fraud that affected 100 individual tries, but are now realising that if that initiative the partnership, customers are able to leverage bank accounts. So, from the perspective of the is successful it may well drive more fraudsters the combined EFT and stored value solutions in International team, Q1 2005 was perfect timing online. The criminals are usually one step ahead a single system from eFunds, providing a single for eFunds to acquire ClearCommerce, a of the game, but already the phone calls are point of settlement and reporting that will support leading risk management company whose telling us there’s more demand among merchant virtually any type of stored value program. V offerings complement our existing payment acquirers and retailers for our comprehensive processing solutions. risk solutions. V

21 IST/Switch Release 7.5 – Now Available New version of IST includes Software Development Kit (SDK) and key functional enhancements On April 1, 2005, eFunds officially launched the Configuration Services newest version of its open platform payment switching solution — IST/Switch 7.5. Configuration Services is a powerful, yet easy to use IST/Switch 7.5 Enhancements configuration tool. Configuration Services lets you If you are interested in upgrading to IST 7.5, ATM focus on what is really important — the business please contact your eFunds account manager for • Support for Bunch Notes Acceptor (BNA) — The logic of your application. more information. If you are a current IST customer ATM Subsystem now supports BNA for both NCR or partner, you can access the complete 7.5 Release Configuration Services is a client-server and Diebold. These devices allow customers to Notes on the eFunds Customer and Partner web application that consolidates configuration data from deposit notes in bunches which are indivually sites. Please refer to the end of this article for regis- different sources to generate a unique configuration tration and access instructions. setup. The services also allow product administra- authenticated. If you hold a current software support or tors to upgrade and product developers to extend • Support for RSA initial key download — Native maintenance agreement, you may also request the the configuration setup. Support is provided for both Diebold and NCR 7.5 upgrade through our standard software release Initial Encryption Key Downloads. Public Key The GUI client is the front-end environment created notification form, also found on the Client and Part- Cryptography is used to remotely load crypto- ner web sites. to interface with the configuration server. The GUI client allows users to view, update, and save the user grahic keys into the ATM, reducing the need for Major highlights of IST/Switch 7.5 include: setting configuration repository, while the Configuration service personnel to provide field support. Software Development Kit (SDK) Server handles the repository of configuration parame- • Support for electronic journal upload — In order to provide IST customers with more ters. It manages the configuration repository, handles Provides the ability to upload the Electronic flexibility to customize their implementations GUI client requests, manages user sessions, and com- Journal on the ATM to the server for further with minimal risk, eFunds has recently introduced municates with the Entitlement and Authentication analyisis by operations personnel. the IST/Switch Software Development Kit (SDK). Subsystems to ensure security. eFunds has created a number of business modules Compliance that group logical IST/Switch processing functions • Support for Visa 9620 messages and message types together. Currently available • Support for Visa CISP/AISP business modules include: • Support for EMV 2000 • DCS SDK — Debit/Credit Subsystem functionality • POS enhancement for MasterCard proximity • ISTAuth SDK — Transaction authorization cards functionality • Support for Bancnet updates: MasterCard • TSF SDK — Data transfer functionality Electronic Acceptance Indicator, On Behalf Services • Europay authorization: MasterCard Electronic SDK Benefits Acceptance Indicator, Chip to Magnetic Stripe • Customizable — IST/Switch can be customized Conversion Indicator, AVS Service on many levels — the SDK gives users the IST Configuration GUI — The IST Configuration GUI Additional Features option of extending or replacing application provides convenient, flexible screens that enable operators • AMEX Authorization Interface business logic. The SDK provides to generate a unique configuration setup. • IST/POS integration with CONNEX™ a deeper level of customization flexibility, • RSA support for the PKI security server complementing other means of customization, Balancing & Reconciliation • Re-implemented Balancing and Reconciliation including configuration/database attributes and Balancing and Reconciliation is the process of for DCS callback functions. accumulating transaction totals and synchronizing balances between different systems. • Enhanced voice authorization • Object oriented — Flexible business objects • Support for Processor Business Day are superior to conventional program-based The Balancing and Reconciliation Subsystem of approaches, providing reusable and extensible IST/Switch accumulates balances for an institution and reconciles them when an event for cutover and components, and abstract design and robust transaction, device, and institution (acquirer, reconciliation is initiated. This event is configured in issuer or both). applications. the subsystem. The reconciliation process involves • Backward compatible — Maintains retrieving the data and sending it back to the net- To access the Release Notification Forms and compatibility with previous versions of IST work formatter. The network formatter then formats IST/Switch 7.5 Release Notes, please visit the through the reuse of existing functions — the messages and routes them accordingly. applicable eFunds IST Client or Partner Web site preservation of formatting, device driver and Transactions are generated and introduced to the shown below: network formatting interfaces. system from several entry points like ATM, POS, or Client Web URL: • Flexible — Distinction between message networks. Each transaction accumulates separate www.oasis-technology.com/clientweb buckets for different amounts that are present in the header and body enables the framework to Partner Web URL: transaction. Multiple accumulated records may occur process any type of financial or non-financial www.oasis-technology.com/channelweb per institution and per transaction. message, such as gift card, loyalty, and account updates. Totals are accumulated and segregated from the transaction information based on the type of V

22 Integrated software/processing solution means business benefits and flexibility for CUSC Building on an established relationship, CUSC introduces DataNavigator on Windows for back office data management Financial institutions (FIs) wrestle with challenging growth strategy issues on a day-to- day basis. Decreasing revenues, shrinking eFunds and CUSC at a glance DataNavigator on Windows margins and increasing costs mean that back- eFunds Products/Services: • A comprehensive software solution that office functions — customer service, exception • DataNavigator® on Windows® enables real-time EFT data management item processing and transaction reporting — • IST®/Switch and customer support. are top priority concerns for the typical FI. • EFT Processing • Helps customers gain better control over Rising costs are being driven by a information coming from their ATM and variety of factors: Benefits of Integrated POS locations • Continued reliance on multiple, Software/Processing Solution: disparate or legacy payment systems • Scalable CUSC Results • Inefficient, labor intensive back- • Single-source with DataNavigator office operations • Provides CUSC members better, faster, on Windows • Increased need for fraud analysis more cost-effective solution to their back • Increased responsiveness to customer and compliance reporting office operations and transaction service inquiries According to a 2004 McKinsey & Company processing needs • Enhanced exception item processingΩ report, the share of back-office costs is almost • No end-of-day settlement bottlenecks 50 percent of total payment costs. Financial About CUSC • Tools to enable members to research and institutions, and often credit unions in • Headquarters: Duluth, GA report on their customer transactions particular, must pay close attention to methods • 630 member credit unions across • More efficient use of CUSC staff, which to reduce these ever-increasing costs. United States can now focus on new revenue streams The CUSC Need • 40 million transactions / year Credit Union Service Corporation (CUSC) is • Mission: To enable credit unions to The CUSC integration marks the first the largest shared branch network in the United provide their members with transaction Windows implementation of eFunds’ States, with over 630 member credit unions services at multiple locations DataNavigator back-office software for an eFunds across the country. Its mission is to enable credit • www.cusc.net IST/Switch customer. “This demonstrates our unions to provide members with transaction commitment to delivering true open solutions services at multiple locations. Quite literally, that work together seamlessly with our process- through its network, a participating member In order to improve efficiencies related to ing services,” said Rahul Gupta, senior vice credit union can offer its customers access to settlement and exception processing, CUSC president, Payment Account Solutions eFunds 630 different locations. recently selected eFunds’ DataNavigator® Corporation. for Windows® open platform back-office In order to service member credit unions in Rewards for CUSC Members such an innovative manner, CUSC continually management solution for use at more than strives to improve efficiencies and streamline 630 member credit union locations. With Each component of the eFunds/CUSC solution its operations. CUSC management identified DataNavigator, CUSC permits its member — DataNavigator, IST/Switch software and EFT one particular enhancement opportunity — credit unions to enter their own settlement processing — are key components of the eFunds’ streamlining the flow of back- and exception data into the CUSC CONNEX Open Enterprise™ next generation office data and they way back-end system. CUSC can now payments platform. Using DataNavigator on member credit unions were manage EFT data in real time, Windows for the back office, CUSC can: submitting adjustments. avoiding end-of-day batch • Increase responsiveness to customer bottlenecks for settlement When a member credit union service inquiries and report processing. had an adjustment, it would fax • Enhance exception item processing or relay that adjustment to DataNavigator was • Provide additional tools that enable credit union CUSC, where employees would designed to work for members to research and report on their manually enter the data into its FIs running their own customer transactions back office system. This manual processing software or process was not only labor outsourcing to a third • Provide greater control, quicker settlement and intensive and potentially error prone, but party provider. Since exception processing to member credit unions also held up settlement to the member. CUSC already had such a long- • Reallocate staff from manual data entry work to standing, trusted processing Once a decision was made to streamline focus on new revenue streams history with eFunds, it made sense this process, it made sense that CUSC And since CUSC also runs its shared branch- to implement an integrated software and would turn to its trusted partner, eFunds, ing network through a flexible combination of processing solution. CUSC president and for a solution. eFunds software and processing services, it can CEO, Carroll Beach said that his company’s avoid costly system and vendor conversions as CUSC and eFunds Corporation approach, “combines the best of eFunds’ back- business needs expand in the future. For over 12 years, eFunds has provided shared office and transaction switching software with V branching and gateway processing services its world-class processing services for a flexible, to CUSC. Additionally, in 2003, CUSC began scalable single-source solution that provides using eFunds’ IST®/Switch software in order CUSC members a better, faster, more cost- to manage its unique, next generation shared effective solution to their back office operations branching network. and transaction needs.”

23 eady nancial Credit Card Credit Acquiring Merchant are we rollouts, specific product Beyond look we customers, our eFunds you, For Stored Value/Prepaid Stored institutions for turnkey, market r market institutions for turnkey, will continue to We programs. prepaid focus on the integration issuing, value stored of WildCard’s management and program processing global to further support our expertise customer base. the implementation of new Through of and the integration customer projects in acquiring products card our IST credit full will provide we our data centers, services — rolled processing card credit and to the international market, out first subsequently to the U.S. merchant the strong leveraging Further IST®/MAS and acquiring solutions, our will expand IST®/Clearing, we services to include full support processing activities including acquiring for merchant qualification, merchant transaction pricing, fee billing, and settlement. Our acquisition of WildCard has given us has given Our acquisition of WildCard value into the stored an immediate entry demand from is strong and there market, of 9,000 fi our franchise leverage our advanced debit card manage- debit card our advanced leverage Overall, products. and gateway ment tools level service to processing this will lead spectrum of spanning a wider enhancements lifecycle. processing the transaction also investing in more forward looking prod- forward in more also investing uct planning and enhanced communication Ongoing enhancements to to our customers. including more our customer touch points, will services, user-friendly web convenient, value also be a continuing focus to add more and encourage to the customer experience self-service support. flexible can take you how you to showing forward services and of these new advantage enhancements in the coming months. The big three — highlights of our our of — highlights The big three plan product 18-month rolling Falcon® enhancements like In addition to key debit card signature 5.1 to manage PIN and usage to drive Miles” and “Dream fraud, focusing on are we and customer retention, customer to meet strong initiatives key three demand: Sincerely, Myhre Rob Products Processing Vice President, Corporation eFunds To meet the parallel demands of existing meet the parallel To support our international processing To Internationally, we continue to see U.S. continue we Internationally, Continued from page 4 from Continued At eFunds, the growth of our business is the growth eFunds, At invest As we customer. for every good news that will infrastructure in the processing compre- more ultimately help us to deliver in the solutions to customers hensive we’re sectors, Financial Services and Retail set of servic- robust making an increasingly customers. our existing to all of es available our focus business, and new customers support delivery, customer on key remains atten- — particularly strong and execution and management tion to service levels as the launch of our — as well reporting business. international processing of our many leveraging are launch, we capabilities, processing debit card existing in expertise coupled with our IST® software acquiring and merchant card the credit enable us These enhancements will space. card/mer- the same set of credit to deliver chant acquiring services to our U.S. data eFunds using the same core customers, our customers’ that drives center expertise In addition, our interna- debit businesses. will also be able to tional customers eFunds’ investment in the processing eFunds’ investment — international and beyond business processors, particularly in the Tier I category, particularly in the Tier processors, their to streamline ways looking for are the to accommodate infrastructure payments as well types, payment new of introduction an Within increases. volume as significant would solution, this processing end-to-end for debit, credit support include integrated FIs enabling products, card value and stored increase internal infrastructure, to streamline their over- reduce and back-office efficiency processing. all cost of transaction ongoing through getting in the game players stronger even creating acquisition activity, like markets key dynamics in competitive of EMV in rollout the EU. With the coming management and fraud regions, several top-of-mind, priority items that security are in smart driving significant investment are management and fraud infrastructure card Société deals like With eFunds solutions. also seeing increased are we Générale, appetite in the Tier I space for comprehen- for solutions that include processing sive acquir- lines — merchant multiple product and debit — combined with ing, credit supporting back-office services.

eFunds Canada Corporation 20 York Mills Road, 4th Floor, Box 700 Toronto, Ontario, Canada M2P 2C2 4604571 www.efunds.com