CPA Payments Panorama 2005: Best Ever Special Feature - Issue 9 - September 30, 2005

CPA Payments Panorama 2005: Best Ever

Special Feature

St. John’s, Newfoundland – The Canadian Payments Association (CPA) annual Payments Panorama Conference, held in St. John’s, Newfoundland June 15-17, 2005 was the best CPA event ever. By all accounts, the attendees and speakers, numbering no less than a record 400, found the event to be rich with information and networking opportunities. The CPA has a draw like none other in the Canadian payments business.

Who’s Who of Canadian and US Payments

Event sponsors included, amongst 16 others: Bell Canada, CGI, MasterCard Canada, RBC Financial Group, Scotiabank and CIBC. The event was chaired by the good humored duo of Marnie Kinsley, Executive Managing Director, Cash Management, BMO Nesbitt Burns and Ken Morrison, President, FutureSolve and Retail Council of Canada. The list of speakers was, without a doubt, the best speaker list at any payments event in Canada in 2005 and included: Rick Waugh, President and CEO of Scotiabank, Fred Herr, Senior Vice-President, Retail Payments Product Office, Federal Reserve Bank of Atlanta, Mo Jansons, Director Industry Affairs and Interbank Operations, RBC Financial Group, Tony Ciciretto, Vice-President, Roger’s Business Solutions, Amar Matar, Vice-President Product Development, Moneris Solutions, Fred Harris, Senior Vice-President, Strategy and Business Development, Interac Association and Acxsys Corporation and Colleen Lindow, Director, Financial Services, PayPal, Inc.

Scotiabank Has Eye on Innovation

Waugh, President of Scotiabank, delivered the opening keynote address on “Reading the Signals – Payments in the New World”. Opening with references to Scotiabank’s long history in the Maritimes, Waugh emphasized the importance of not being complacent about the future. Government, industry and financial institutions need to collaborate in what is now a “flat world” in order to stimulate economic growth, Waugh said. He then went on to identify innovations that he thought were positive. Those innovations include:

· The new CPA Rule permitting online debit payments;

· Use of images in check clearing;

· Global commerce, with 45,000 Scotiabank employees worldwide and a highly active international banking practice.

Perhaps anticipating a question that was eventually posed on bank mergers in Canada, Waugh put emphasis on his view, that only the largest players will have capital to take advantage of economies of scale. He also said there was a need for regulation to keep up with business in the fast-developing payments markets in Canada and internationally. Finally, Waugh reminded the audience of the importance of KYC (know your customer), in these days of heightened concern over preventing the funding of terrorism and other illegal activity.

The greatest audience response to Waugh was when he was asked about bank mergers. His response was brief, emphasizing the need for finality on the issue.

Novelty in Canadian Consumer Protection

William Knight, Commissioner, Financial Consumer Agency of Canada (FCAC), was the luncheon keynote speaker on the first full day of the conference. Knight spoke about the newly created FCAC. The FCAC was established in 2001 by the federal government to strengthen oversight of consumer issues and expand consumer education in the financial sector.

Knight reminded the assembled brass of the Canadian payments industry, “that they need to keep the consumer in mind when implementing new services”. “The industry needs to look beyond its traditional stakeholders, to include consumers who are increasingly demanding a wide variety of services, information and real time online services,” said Knight.

The withholding of information, or mistaken or deceptive market practices, are inconsistent with the standards that the FCAC will expect of Canadian financial services providers going forward, Knight remarked. He also added that the perception of fairness can only enhance the strength of a brand, thereby creating a business incentive to be good to consumers.

On the topic of the credit card business, Knight said that Canadians have the right to know what interest rate they will have to pay on outstanding balances. Prior bank practices of bait and switch are not acceptable any more.

Micropayments: One Penny at a Time

One of the most interesting break-out sessions of the conference (for FT readers) was the one on Micropayments, delivered by Tony Ciciretto of Rogers and Amer Matar of Moneris. The dilemma for micropayments business models, is of course, how to make them profitable.

Ciciretto favored an aggregation model. Aggregators are payment providers who act as intermediaries between the payor and the payee. Gift and loyalty programs are good examples. Although not cited by Ciciretto, the Air Miles loyalty program was so successful in Canada that it has been used as a model to follow in other larger markets. Ciciretto observed that the optimal micropayments model would need to be a win-win proposition for the merchant and the consumer.

The engaging Matar reminded the audience that Moneris is the largest payment processor in Canada, handling 40% of all payments in Canada. In the near future, Matar foresees 20% per year growth in internet payments and 100% per year growth in mobile payments. Despite colossal failures in the low value payments (LVP) market, such as Mondex, LVPs will show robust growth for the foreseeable future. Matar cites the $1.25 million per day spent downloading iTunes as an example.

Exposing the degree to which Moneris is studying the payments market, Matar cited form factor preferences in the Canadian market. Men prefer credit, while women prefer debit. Individuals under 30 years of age prefer mobile payments while those between 35 and 40 prefer credit cards.

When asked by the FT about third party outside sales, Matar said that Moneris is not interested in outside sales, such as ISOs in the US format, because they are too aggressive and do not provide enough service. In contrast, Roger’s Ciciretto said that Rogers would like to enable outside sales.

Interac: The Friendly Monopoly

The conference featured a panel discussion on new payment providers in Canada. The panel included, Fred Harris, VP Business Development at Interac and Acxsys Corporation. Interact is the only debit network in Canada. Harris discussed at length the strength of the Canadian debit network as perhaps the most stable and secure in the world. Interac processes over one billion transactions per year, one third of which are at ATMs other than those at the branch of the cardholder.

Harris also discussed new cross-border debit services to help Canadian account holders in the US, as well as e-mail money transfers and the brand new Interac Online.

When asked by the FT about concerns over the monopolistic position of Interac in the Canadian debit market, Harris replied that Canadian consumers trust the brand and that there is power in the brand. He emphasized the importance of a consistent consumer experience under one brand.

The Screech

Conference participants were treated to a fine banquet of fresh Atlantic lobster accompanied by Newfoundland screech, spirits and musical entertainment. The attendees were much more diverse than the list of official CPA members, which are principally from financial institutions. Presence of non-FI parties, such as Bell Canada, Rogers, Telus and other smaller entities provide the evidence of the multiplication of non-bank payment services providers in Canada. The openness of the CPA at the conference indicates a sensitivity on the part of the CPA to the interests of FT readers, entrepreneurs in new non-bank Canadian payments businesses. Much credit goes to the CPA staff for organizing a great event that will benefit participants throughout the year.

Adam N. Atlas, Editor in Chief, atlas@frontiertimes.ca

Note from the Editor

The FT was delighted to be present to cover both of the principal Canadian summer payments conferences, namely, the CPA and ATMIA events. Feedback from participants at both events has been overwhelmingly positive, and we are deeply appreciative of that.

After a year and a half in publication, with approximately 3,000 readers, the FT now charges for listings in its industry directory as of September 2005. Entities listed in the directory have noticed a marked improvement in their internet search rankings.

The FT has added about 500 new subscribers since Issue 8, and we extend a warm welcome to all our readers.

Press releases, advertising and notable industry tid-bits are all welcome on these pages. We are read by everyone from the Bank of Canada to the CPA to Beanstream and everyone in between.

Finally, we wish to give a warm welcome to Kimberley Craig who joined us in July of 2005 as Director of Marketing. Ms. Craig will be reaching out to our readership to solicit input on improving our product. Please contact Ms. Craig at 514-667-7016 for all your FT advertising needs.

We wish all our readers an enjoyable and colourful

Canadian fall season.

Adam N. Atlas

Editor in Chief

atlas@frontiertimes.ca

News

Calypso Canada and INETCO Systems Connect Wireless ATMs

Montreal, August 10 05 – INETCO Systems Ltd., a provider of ATM and POS connectivity solutions, has announced the results of a recently conducted wireless ATM trial with Calypso Canada. INETCO’s Vista, a terminal adapter which provides a solution for connecting dial and leased line ATMs to IP and wireless networks, connected a Calypso leased line ATM to a wireless GPRS network. Providing wireless connectivity to leased line ATMs, which in this case are Datapac 3201 lines, will substantially lower communication costs. “The success of this trial paves the way to offer a wireless service for the thousands of Datapac 3201 enabled ATMs that are still deployed,” says Doug Epp, General Manager of Calypso Canada.

Open Solutions Opens POS IP Gateway

Glastonbury, Conn., Aug. 11 05 – Open Solutions Inc. (NASDAQ: OPEN), a provider of integrated enabling technologies for financial institutions, launched a POS IP Gateway through its Open Solutions Canada – Payment Solutions Group. The POS IP solution expands the company’s offering to deliver credit and debit transaction processing in the quick service and multi-lane environments for the Canadian marketplace. Open Solutions Canada runs Canada’s largest off-premise ATM network and is reputed as the largest processor of independent POS terminal transactions. The new POS IP Gateway is a service offering both wired and wireless IP connectivity in an end-to-end solution for Independent Sales Organizations (ISOs) and merchants.

Leveraging off high bandwidth DSL or cable connections, the IP Gateway provides the instant transaction response time that is in Quick Service Restaurants (QSRs) and multi-lane environments. “With credit and debit cards widely accepted across most retail segments, quick service restaurants have become a major growth market in POS terminal placements. Using the IP connection to access our networks for credit and debit authorizations translates into reduced processing times and lower transaction processing costs in this environment,” said Mike Kelso, president of Open Solutions’ Payment Solutions Group. He added, “Canadians are among some of the heaviest debit card users in the world and expect to use their credit and debit cards everywhere. Equipping our ISOs with this technology allows them to expand even further into the marketplace.”

CPA Issues New Cheque Specifications in Preparation for Cheque Imaging

See Previous FT Issue 6, “Check Imaging Eh? CPA Consultations…” Updated: July 05 /CPA/ – The Canadian

Payments Association (CPA) has published new updated specifications for Canadian cheques in preparation for the transition to image-based clearing. Under the new specifications, all cheques used by customers of financial institutions operating in Canada will require some changes. The new specifications, as outlined in the CPA Standard 006, Part A, are necessary to ensure that high-quality cheque images can be captured, for clearing purposes, for delivery to clients, and to enhance processing efficiency.

Prior to finalizing the specifications, the CPA invited comments from stakeholders on proposed changes and took into account the input received. The CPA and its member financial institutions have established a two-year transition period to ensure cheque printers, software providers and businesses that produce their own cheques have ample time to make the necessary changes. Thus, all Canadian business cheques should conform with the new specifications as outlined in CPA Standard 006, Part A by December 31, 2006.

As of April 2005 all cheque orders made through financial institutions or their respective suppliers are being fulfilled with “newformat” cheques. This approach will contribute to a smooth transition for consumers. See key changes to the cheque specifications: http://www.cdnpay.ca/

Optimal Group Second Quarter 2005 Results

See Previous FT Issue 8, “Optimal Aquires United Bank Card” Montreal, Quebec, August 8 05 – Optimal Group Inc. (NASDAQ:OPMR) has announced its financial results for the second quarter ending June 30, 2005. All references are to U.S. dollars. According to the press release, revenues for the second quarter ended June 30, 2005 were $40.6 million compared to $21.0 million in the second quarter ended June 30, 2004. Underlying earnings from continuing operations before income taxes and non-controlling interest were $8.7 million or $0.35 per diluted share for the second quarter ended June 30, 2005 compared to $0.7 million or $0.03 per share for the corresponding period of the prior year. Compared to the quarter ended March 31, 2005, underlying earnings from continuing operations before income taxes and non-controlling interest increased by $3.3 million or 61% from $5.4 million to $8.7 million.

Research In Motion Announces Security Enhanced, Bluetooth Enabled, Wearable Smart Card Reader

Waterloo, ON, June 28 05 – Research In Motion (RIM) (Nasdaq: RIMM; TSX: RIM) has announced the

BlackBerry® Smart Card Reader™, a lightweight, wearable smart card reader that enables controlled access to BlackBerry devices using Bluetooth technology and advanced AES-256 encryption.

The BlackBerry Smart Card Reader is a wearable peripheral that is FIPS 140-2 validated and can be used to comply with certain government or corporate security requirements by enabling twofactor authentication for BlackBerry devices and applications. The BlackBerry Smart Card Reader provides support for a variety of industry standard smart cards and also supports S/MIME which can be used in conjunction with the S/MIME Support Package v4.0 for BlackBerry.

Canadian Inventor Stars in American Express Ad Campaign

Toronto, July 7 05 /CNW/ – Amex Canada has included Mike Lazaridis – the highly respected Canadian behind the worldwide BlackBerry® phenomenon – in the one-of-a-kind line-up of fascinating individuals being featured in the company’s new global advertising campaign. Mr. Lazaridis joins actor Robert De Niro, television host Ellen DeGeneres and professional surfer Laird Hamilton to star in the campaign.

Featuring the tagline “My life. My card”, this is the company’s biggest brand campaign to launch in Canada in close to 10 years as part of its aggressive push to accelerate the growth of its business in the Canadian marketplace.

The campaign communicates the role the American Express Card plays in the lives of the extraordinary people showcased in the line-up. It also strengthens the appeal of American Express as the ultimate brand for consumers who live life to the fullest.

Mr. Lazaridis was chosen in part because of his phenomenal business and technology success, but also because he has used his success to pursue philanthropic and educational interests in his community.

Mike Lazaridis is President and Co-CEO of the 20-year-old company Research In Motion (RIM) based in Waterloo, Ontario and is the creative force behind the worldwide success of BlackBerry, which has transformed the way people communicate.

Mr. Lazaridis established an internationally acclaimed think-tank for scientists in his hometown of Waterloo, Ontario. He launched the Perimeter Institute for Theoretical Physics with a $100 million donation, which he describes as an investment in the future. The Institute draws top scientific minds from around the world to explore and extend theories of space, time and matter.

CGI appoints Michael Denham to lead Business Process Services

Montreal, QC, July 20 05 – CGI Group Inc. (CGI) (TSX: GIB.SV.A; NYSE: GIB), is pleased to announce the appointment of Mr. Michael Denham as president, Business Process Services (BPS) for CGI.

Michael Denham joins CGI from Bombardier where he spent four years as Senior Vice-President of Strategy reporting to the CEO. He was responsible for corporate strategy, mergers and acquisitions, global partnerships and information technology as corporate CIO. Prior to this position, Mr. Denham was a partner with McKinsey and Company, where he held key leadership roles working extensively in the United States and Europe.

Desjardins Strengthens ATM Security Measures

Levis, August 18 05 – According to a press release, Desjardins Group has doubled its efforts to further protect its members against fraud for deposits and withdrawals made at its ATMs using the Desjardins Access Card (debit card).

Desjardins claims to have lowered its breach threshold, however, potentially raising privacy issues, whereby users must enter their date of birth (day and month), on deposits of $300 to $1000 and on withdrawals of $300 to $500. This simple procedure is designed to make it possible to confirm the identity of the member and minimize financial losses linked to fraud from debit card cloning.

Desjardins goes on to remind members that there are ways they can help reduce the risks of debit card cloning. For example, they should never let the card out of their sight when carrying out a transaction. Members should also always take care to protect their personal identification number (PIN) and never give it out to anyone. Choosing the right PIN is also important.

Ironically, the release goes on to warn: “Card users should avoid using their date of birth, phone number, address or any other number combination that fraud artists could easily find.”

GFI Signs 3-year Partnership Agreement with Desjardins to Introduce Smart Cards

Montreal, July 18 05 – /CNW Telbec/ – GFI Solutions has announced that it has signed an agreement with Desjardins Group, the prominent cooperative financial institution, to ensure the evolution of its integrated electronic payment solution and to oversee the implementation of updated versions for major retailers. This contract, which is renewable for three years, is valued at several million dollars, and defines the terms of a close collaboration between GFI Solutions Inc. and Desjardins for the purpose of carrying out the migration from magnetic card systems to smart cards, in accordance with the new EMV (Europay, MasterCard, Visa) international standard.

A growing industry sector in Europe, EMV is now gathering momentum in the North American banking industry, and the GFI’s EMV Business Practice team will be intimately involved with this project, which will entail significant modifications to the Desjardins integrated payment solution (SPID) at all levels: development, deployment, certification, and operations.

Desjardins Group and CGI Offer Canadian Credit Unions Technology Solutions and Services

Montreal, June 15 05 – /CNW Telbec/ – Canadian credit unions will now have access to an all inclusive portfolio of technology solutions, financial products and services, thus providing the industry with a wider range of options. This offering is being provided through a strategic alliance between Desjardins Group, the largest integrated cooperative financial group in Canada, and CGI Group Inc. (TSX: GIB.SV.A; NYSE: GIB), one of the largest independent information technology firms in the world. Canada’s network of cooperative financial institutions represents more than 10 million members and over $167 billion in assets.

In welcoming the announcement, Alban D’Amours, president and CEO of Desjardins Group, stated: “This alliance is perfectly aligned to our development strategy for the Canadian market. Moreover, it allows us to strengthen the country’s network of cooperative financial institutions while creating an alternative to banks.”

Bank of Canada Appoints Special Adviser

Ottawa, July 28 05 – /CNW Telbec/ – The Bank of Canada today announced the appointment of Bruce Little to the position of Special Advisor for the year 2005-06. Mr. Little, who will join the Bank in September, is a recently retired journalist from the Globe and Mail, where he spent most of the past two decades writing about economics and public finance.

The Special Advisor position was created in 1998 to bring an additional perspective to monetary policy discussions and to give university and private sector professionals in economics and finance first-hand knowledge of the workings of the Bank of Canada.

All Branches of Laurentian Bank to Offer Western Union Services

Montreal, June 9 05 – /CNW/ – Laurentian Bank has announced that all its branches will be offering the money transfer and payment services of Western Union. This new offer of services follows the signing of an exclusive banking agreement. Over the last few months, the Bank completed a pilot project in several branches and consequently decided to implement the services throughout its network.

Pizza Pizza Dexit Tags with Automatic Credit Card Refill Option

Toronto, July 6 05 – /CNW/ – Dexit Inc. (TSX: DXT) and Pizza Pizza have joined to give customers a new payment option at Pizza Pizza locations in the Greater Toronto Area.

In addition to the convenience of using their Dexit tags at participating Pizza Pizza locations, new customers will also be able to pick up Dexit tags and activate them at these merchant outlets. Existing customers can also refill their Dexit accounts at any of the over 160 participating Pizza Pizza locations, or online.

The Dexit® electronic payment facilitation service for small transactions is available at the Pizza Pizza restaurants for use by walk-in customers with automatic credit card refill option for Dexit tag holders. For the online automatic credit card refill option tag holders simply log in to their Dexit account and input their credit card details. Then, whenever the tag holder’s Dexit account balance dips below $20, the tag holder’s credit card is automatically charged an amount pre–authorized by the customer and the account will be immediately refilled. The preauthorized refill amount can range from $20 to $100. See: dexit.com

American Express and Aeroplan Launch New Platinum Corporate Card

Markham, Ontario, June 30 – /CNW/ – Amex Bank of Canada and Aeroplan have launched a premium platinum Corporate Card. Companies can save money while rewarding employees with Air Canada – Maple Leaf Lounge Access and Aeroplan Miles. Specifically, the American Express AeroplanPlus Corporate Platinum Card is designed to give travelling employees access to Air Canada’s Maple Leaf Lounges and the opportunity to earn Aeroplan Miles faster, as well as offer small and medium sized companies annual cash rebates and travel benefits.

For an annual fee of $350 companies can provide every employee Cardmember with access to 18 Air Canada Maple Leaf Lounges and Arrivals Lounges across Canada, the U.S. and Europe. Each lounge offers complimentary food, drinks, newspapers, and full business amenities. Companies are also able to give their employees the opportunity to earn additional Aeroplan Miles. Employees will receive 1 Aeroplan Mile for virtually every dollar of purchases charged to their American Express AeroplanPlus Corporate Platinum Card. They can also earn Aeroplan Miles faster by enrolling in an upgrade program for an additional annual fee.

IBM and Fidelity to Offer Canadian Banks New Core-Banking Solutions

Armonk, NY and Jacksonville, FL, June 30 05 – /CNW/ – IBM and Fidelity Information Services (Fidelity), a division of Fidelity National Financial, Inc. (NYSE: FNF) today announced an agreement to jointly offer core-banking solutions to Canadian banks.

Core-banking refers to the systems that process data and transactions for primary accounts, mortgages, loans and deposits. Aging infrastructures and core-banking systems are preventing banks around the world from being able to offer their customers innovative products quickly. Replacing these older “legacy” systems has become a priority for many banks that look to the operating efficiencies and flexibility of new-generation real-time systems to help increase customer satisfaction as well as decrease expense.

Under terms of the agreement, IBM will provide a full range of technology services, hardware, software and business-transformation consulting designed around Fidelity’s industry-leading Corebank offering. Corebank relies on key IBM software components including data frameworks and models designed for the banking industry and used by Canada’s top banks.

Canadian Debit Card Fraud Far Higher Than Expected

Montreal, August 17 05 – According to a recent survey by Environics Research Canada, 4% of Canadian debit cardholders said that they experienced some form of fraud on their debit card in the previous year. This 4% rate is significantly higher than the 0.1% reported by most banks. Four percent of Canada’s debit cardholders would represent approximately 800,000 people.

3% Currency-Conversion Commission – US Purchases by Credit Card in Canada and Abroad

Montreal, August 18 05 – Rates have now increased for those purchasing with Visa card and MasterCard – Many US card holders currently pay a 3% currency-conversion commission on their charges made in Canada and abroad. This is composed of a 1% fee charged by Visa or MasterCard and a 2% fee by the bank that issued the card.

Triversity Joins IBM PartnerWorld

Toronto, August 17 05 – Triversity Inc., headquartered in Toronto, as an international provider of customer-centric retail solutions, announced it has joined IBM’s PartnerWorld Industry Networks. Triversity, an IBM Premier business partner, now has additional IBM sales, marketing and technical resources available to help the company provide on-demand solutions for its rapidly growing customer base.

IBM products have played a key role in the worldwide deployments of Triversity’s Transactionware Enterprise, described as Java point-of-sale (POS) solution. Transactionware Enterprise is the first and only Java POS solution designed from the ground up to harness the power of J2EE (Java 2 Enterprise Edition) at all customer touchpoints. It supports the IBM Retail Environment for SuSE Linux and the IBM Store Integration Framework featuring IBM WebSphere® Application Server 5.0, IBM WebSphere MQ, and IBM DB2® Universal Database.

Moneris Solutions processes Canada's first Interac® Online transaction

See Previous FT Issue 8, “Online Debit Pilot” Toronto, June 6 05 – Moneris Solutions Corporation (“Moneris”), according to a release, has become the first payment provider in Canada to process an Interac Online transaction. Interac Online is the new service established through the existing Interac Network, that allows Canadians to pay for goods and services purchased on the Internet directly from their bank account.

Presently, credit cards are the primary payment option Canadians use when shopping online. Interac Online wishes to give consumers the flexibility to pay for purchases over the Internet through a direct debit to their bank account. This added payment option gives merchants access to a larger pool of potential customers, who either do not possess a credit card, or are looking for payment alternatives.

Moneris recently signed an agreement with The Source By Circuit City to implement Interac Online into its comprehensive e-commerce Web site – TheSourceCC.com. And, Moneris client online retailer DVDsoon.com is currently offering the service and another business, Compusmart, will soon be offering Interac Online as well.

According to the release, a May 2004 survey conducted by Leger Marketing for Moneris Solutions found that nearly two-thirds of Canadians (65%) prefer to use their debit or credit card for their purchases. For purchases in the range of $25 to $75, debit is the preferred method of payment for about half of Canadians (49%), followed by credit (25%) and cash (24%).

Zotob Worm Visits CIBC & BMO Nesbit Burns

Montreal, August 17 05 – According to sources, Canadian banking entities CIBC and BMO Nesbit Burns were host to computer worms that have brought down systems around the world. The worm, in this case, “Zotob” is one of three worms, (including “Bozori” and “IRCbot”), that function by exploiting a gap in Microsoft Corp.’s Windows 2000 operating system on those computers that had not had the flaw repaired by firewalls.

The worms were blamed for major system problems at media outlets, (CNN, ABC, The Financial Times, and the New York Times) and companies in the United States Tuesday (16 August). The worms are said to not damage data, but can slow computer performance. Infected Windows 2000 computers are exposed to subsequent more malicious attacks, while infected Windows XP computers only spread the worms.

New Face on Visa Card – Visa’s new branding comes into effect September 1st

Sept., 01 05 – Toronto, Ontario – Visa International has announced plans to refresh and evolve its brand identity and structure. The changes include a new look for the famous blue, white and gold Visa logo and changes to card design features. A major communications campaign will take place between now and the end of the year when the first cards and merchant signage bearing the new logo will start to appear.

As well as a refreshed Visa logo on the card and at the point-of-sale, it will allow for a new card format that will complement the issuer’s own brand. The well-known Visa dove hologram on the front of the card will be moved to the back and be integrated with the magnetic stripe, making card counterfeiting more difficult while allowing a larger part of the front of the card to be used for new issuer designs or communication.

Features

TNS Smart Network Inc. Prepaid Cards

Montreal, August 22 05 – TNS, Canada’s largest, privately owned processor for third party Automated Teller Machines (ATMs), will be distributing PREPAYEDGETM MasterCard prepaid cards under TNS Prepaid Financial Corporation. Mint Inc., a subsidiary of Mint Technology Corp., and Horizon Plus Card Services Limited Partnership have signed a distribution agreement with TNS Smart Network Inc. (TNS) and will provide the turnkey for the cards.

Mischa Weisz, President & CEO of TNS, says that under the terms of the agreement, TNS will initially distribute 15,000 PREPAYEDGETM MasterCard cards. However, he would be happy to see that number top 1 million on the market within the following year. TNS will distribute the cards through a variety of established distribution channels, including their existing sales network. TNS already provides processing services to ‘white label’ ATMs in retail locations across Canada with over 7,000 ATMs and POS devices deployed nationwide. Mint, for its part, will provide TNS with a prepaid MasterCard turnkey program with complete services and features. And, Peoples Trust of Vancouver will be responsible for card issuance under its agency agreement with Horizon Plus Card Services Limited Partnership.

“Prepaid products have become commonplace in Canada with millions of consumers using prepaid cell phones, long distance cards and wireless services,” states Mischa Weisz. “We see the PREPAYEDGETM MasterCard as the next evolution in consumer satisfaction and convenience. Safer than giving cash, the PREPAYEDGETM card is ideal for reasonably secure Internet shopping; to replace travelers’ cheques while vacationing; as an optimal solution for small business travel; and it is perfect for gift giving, among many other uses.”

In most respects the cards are used exactly the same way as any other MasterCard. But, in this case, ATMS can be used for reloading the cards. MasterCard prepaid cards are accepted at retail locations worldwide and will enable access to funds through participating ATMs, providing “Zero Liability” protection in North America like all MasterCard payment programs. They are fully re-useable, and the PREPAYEDGETM card can be reloaded by transferring funds from an existing Bank account using Internet banking or Telephone banking.

The cards can also be reloaded. If, for example, a customer wants to give an allowance limit on a card to a youth, or, if a low balance is desirable, the customer can choose the amount of available funds on the card. A low balance on a card is more secure for internet use or automatic withdrawal options – as the available cash on the card will not be exceeded either accidentally, or by theft. A higher balance card can be used for vacations, or a car purchase.

How can I get one? According to Mischa Weisz the card and its various details will be available via the internet in about one month. The card will have an annual fee and “works much the same as a prepaid cell phone”. There will be a monthly maintenance fee and a small reload charge. The good news is, of course, there is no interest charge on a prepaid card. See: www.tns-smart.net

Angela Read, Managing Editor, info@frontiertimes.ca

Safer than giving cash,