NEWS

Because of an increase in consumers' use of debit cards as a payment method, Canadian retailers such as Sears Canada Inc., Wal-Mart, The Bay and Zellers have stopped accepting checks (or "cheques" as they are called in Canada) over the past five years. Most recently, Loblaw Companies. Ltd., Canada's largest food distributor, announced it no longer will accept personal checks at its 72 Ontario stores at the end of January 2003.

According to a story in Canada's National Post, a spokesman for Loblaw said that checks used for payment in their stores have declined to less than 2%; 10 years ago, checks represented about 25% of payment. Interac Association, which oversees Canada's direct debit payment system, reported that, in 1997, 7% of shoppers paid for goods with a check, but by 2001 that figure had fallen to just 2%.

In addition, the Canadian Payments Association reported that check use is dropping by 2% to 3% annually. "Cheque" writers should not be too alarmed, however; many retailers and supermarkets in Canada still take checks and have no plans to stop accepting them anytime soon.

Wal-Mart Offering Discount Financial Services

Wal-Mart announced plans to offer basic financial services to its U.S. customers such as money orders, wire transfers and check cashing services. These types of services do not require ownership of a bank, which the retail giant has attempted twice in the last three years but was blocked because of changes in state and federal legislation.

Wal-Mart will provide the services by renting out space in many of its stores to local banks, the Financial Times Limited reported. Competitors such as First Data's Western Union and the U.S. Postal Service beware: Wal-Mart plans to offer payroll check cashing at a flat $3 charge up to a certain value (compared with rivals' 3-6% commission rate) as well as charge $0.46 for money orders (compared to an average $1 charge at the post office).

The chain plans to expand from its current count of 3,400 stores across the U.S. to 5,000 stores in five years, according to a recent article in Time Magazine. "Our long-term strategy is to be where we're not," said Lee Scott, Wal-Mart's President and CEO.

Bring on the Biometrics

American consumers are ready for biometric transactions, according to results from a survey conducted by SEARCH, a national consortium of criminal justice agencies, the U.S. Department of Justice's Bureau of Justice Statistics, and Privacy and American Business (P&AB). Although most consumers have little experience using this type of technology, the survey of more than 1,000 people indicates consumers approve using biometrics in the following areas:

• Verifying the identity of customers making credit card purchases (85%).
• Withdrawing funds from an ATM (78%).
• Accessing sensitive files, such as medical or financial (77%).
• Conducting background checks (76%).
• Screening persons banned from gambling or professional card counters in casinos (56%).

A majority of those surveyed believe that privacy safeguards also need to be established by the federal government and adopted voluntarily by companies using biometrics in to gain consumers' trust.

Consumer Credit Declines

The Federal Reserve said consumer credit declined $2.2 billion in November 2002 from $1724.1 trillion the previous month. This was the first drop in more than four years and the largest decline in 11 years. Consumer credit is a tally of debt assumed by U.S. consumers from purchasing a good or a service other than a home mortgage.

Dell Making Cash Registers

Dell Computer Corp. announced plans to develop PC-based cash registers in addition to specialized software, services and equipment for linking a store's checkout system to a retailer's corporate information systems. The point-of-sale technology will include a Dell Optiflex desktop computer and a flat-panel screen. Prices for the high-tech cash registers will start at $1,794. Dell is partnering with Retek Inc., AutoGas, GERS Retail Systems and MSS Global to develop the systems. A pilot program is already in place at fashion retailer The Wet Seal, Inc.'s 588 stores.

ANNOUNCEMENTS

Schlumberger Making a Difference

Schlumberger's SEED program (Schlumberger Excellence in Educational Development), started in 1998 as a non-profit foundation and run by Schlumberger employees and their families, reaches 82 schools and 133,000 children in 24 countries. Driven by the goal to build a worldwide learning community, SEED connects students in developing countries to the Internet, including a multilingual online science center, and organizes collaborative projects between school children around the world. The program offers students opportunities made possible through access to learning and new technologies.

EPX Changes Name to InterCept

Electronic Payment Exchange, Inc. (EPX), a merchant transaction processor, has changed its name to InterCept Payment Solutions, Inc. The company said the reason for the name change is to gain stronger brand recognition with its parent company InterCept, Inc. InterCept acquired EPX in May 2002.

PARTNERSHIPS

Credit card processor Cynergy Data announced it will offer Secure Payment Systems, Inc.'s gift card processing services to merchants through its independent sales offices.

TeleCheck Wins Limited

First Data subsidiary TeleCheck Services, Inc., will provide its check verification services to Limited Brands, Inc., which operates 4,574 specialty stores through Victoria's Secret, Bath & Body Works, Express, Structure, Limited Stores, White Barn Candle Co. and Henri Bendel.

Hypercom Is Good Fit for Shoe Company

Genesco Inc., a retailer of footwear, is implementing Hypercom Corp.'s ICE card payment technology and terminals in more than 975 U.S. retail locations. Genesco's stores include Journeys, Journeys Kidz, Jarman, Underground Station and Johnston & Murphy. Hypercom said it expects all stores to have the technology by midyear 2003.

Ingenico Products Go Green

Data services and computer systems provider CCITRIAD's Hardlines and Lumber Group in Livermore, Calif., has integrated Ingenico's eN-Touch 1000 touch screen and signature capture terminal and the eN-Crypt 2100 payment terminal with point-of-sale solutions for the hardlines and lumber, retail agribusiness, and lawn and garden industries.

MPS and Datasym Partner

Mercury Payment Systems, LLC, a credit and debit card merchant service provider focused on the retail and restaurant industries, has partnered with Datasym, Inc., an Ontario, Canada-based provider of single-source point-of-sale software and hardware with more than 150,000 installations in North America. Datasym will actively promote Mercury Payment's two- to three-second payment-processing services to both new and existing retail customers. So what's in it for Datasym? Mercury Payment Systems says it shares a percentage of all merchant transaction revenue with developers and dealers.

ACQUISITIONS

eONE Global, LP, a subsidiary of First Data Corp., acquired BillingZone, LLC from PNC Bank, National Association and Perot Systems Corp. BillingZone is a provider of electronic invoices and payment services. eONE Global says its goal is to change manual and paper transactions that occur between trading partners to electronic and paperless transactions by offering an electronic invoice and payment solution.

Verus Acquires Another

Continuing with plans to create a leading payment-processing firm by consolidating other processors, Verus Financial Management, Inc. has purchased a second company: Alpharetta, Ga., based-Cornerstone Payment Systems, a credit card processing firm. Network 1 Financial, a credit card and automated clearinghouse processor, was Verus' first acquisition. Verus said all Cornerstone management and staff will remain with the company.

Concord Sets Sights on Credit Union 24

Concord EFS, Inc. said it has signed a non-binding letter of intent with Credit Union 24, Inc. to acquire the Credit Union 24 Network, an ATM and point-of-sale network based in Tallahassee, Fla. The Credit Union 24 Network connects 400 credit unions through 7,200 ATMs and 7 million cardholders in 35 states. Concord EFS said it expects a definitive agreement in the first quarter of 2003, and closing of the deal will depend on final shareholder approval.

APPOINTMENTS

InterCept, Inc. has added John M. Perry to its executive team as CEO of InterCept Merchant Services. Before joining InterCept, Perry was Chairman and CEO of Spectrum EBP, LLC, an electronic bill presentment and payment company acquired by Metavante in August 2002. From 1996 to 2000, Perry worked for NOVA Information Systems, serving two years as its President and Chief Operating Officer preceded by two years as Executive Vice President of Sales and Marketing. Perry also spent four years with First Data Corp. and has worked at Wells Fargo Bank and Visa USA.

Devitt Goes to Cisco

Payment-processing veteran George E. Devitt has been appointed Director of Marketing at Cisco Systems, Inc. supporting the firm's Enterprise Sales Organization in North America. Devitt previously held the positions of General Manager for CardSwipe.net, LLC and Senior Vice President and Chief Marketing Officer of Hypercom Corp. He has served in senior sales and marketing positions at VeriFone, Inc., Hewlett-Packard Company and IBM Corp.

Ingram Promoted to CFO

Global eTelecom's Board of Directors has promoted Douglas T. Ingram, Jr., CPA to Chief Financial Officer from Chief Accounting Officer. Before joining Global eTelecom, Ingram was Senior Accountant at Wilson, Price, Barranco, Billingsley and Blankenship in Montgomery, Ala. Gregory S. Oswalt, who served as Chief Financial Officer since the corporation's inception until Ingram's appointment, will remain Secretary and Treasurer, positions he also has held the last few years.