VAULTV O L U M E E I G H T / I S S U E O N E / S U M M E R 2 0 0 5

An informationresource for electronic

payments brought to you by eFunds

Corporation

eFunds acquires WildCard Systems to deliver integrated debit andprepaid solution 3

eFunds acquires ClearCommerceCorporation to address card-not-present fraud 5

Remote Control at the ATM —eFunds partners with NCR, TrustedSecurity 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 internationalprocessing with Société Générale and India Switch Company 14

IST/Switch 7.5 — Now Available 22

CUSC benefits from integratedsoftware and processing solution 23

2

PUBLISHERSRahul Gupta & Kay Nichols

MANAGING EDITORKeith Briscoe

PROOFREADINGKeith Briscoe, Sarah Hawley, Jennifer Boyle

CONTRIBUTORSJennifer Boyle, Sarah Hawley, Keith Briscoe,

Karen Williams, Kim Halmekangas, Keith Roberts,Paul F. Walsh, Rahul Gupta, Rob Myhre,

Jack Benton, Kathleen Flanagan, John Yusko, Tony Manship, Heidi Woller, Tony Ipsarides

DESIGN AND LAYOUTShaw Street Productions

eFunds OfficeseFunds Corporation Headquarters

Gainey Center II, Suite 3008501 North Scottsdale RoadScottsdale, Arizona 85253Telephone: 480 629 7700 or 1-888-9eFunds Fax: 480 629 7701

eFunds International Head OfficeAegon House, Daresbury Business ParkDaresbury, CHS WA4 4HS United KingdomTelephone: 44 (0)1928 791791 Fax: 44 (0) 1928 718 177

eFunds Canada Corporation 20 York Mills Road, 4th Floor, Box 700 Toronto, Ontario M2P 2C2 Canada Telephone: 416 228 8000 Fax: 416 228 8881

eFunds International, South East Asia OperationseFunds International (India) Pvt Ltd. 3rd Floor Fairmont, Hiranandani Business Park, Powai. Mumbai - 400076 India Tel: +91 022 56684307 Fax: +91 022 56684310

eFunds International, Asia Pacific Operations Suite 1, Level 5 100 Walker Street North Sydney NSW 2060 Australia Telephone: +61 (0) 2 9954 9533 Fax: +61 (0) 2 9954 9620

eFunds Corporation, Latin America Operations 2400 North Commerce Pkwy Suite 306 Weston, FL 33326 USA Telephone: 954 384 7894 Fax: 954 384 8046

WEB SITESwww.efunds.com www.oasis-technology.comwww.clearcommerce.com www.penleyinc.com

www.wildcardsystems.com www.indiaswitch.com

© 2005 eFunds Corporation. All rights reserved. This document is intended only for the use of eFundsCorporation customers in connection with the productsand services eFunds Corporation has authorized. Any otheruse is not authorized. eFundsSM is a trademark of eFundsCorporation. All other marks are the property of theirrespective owners. eFunds has used commercially reason-able efforts to ensure that the information contained inthis document is accurate and complete. eFunds shallhave no other obligation with respect to any inaccuracyor incompleteness of information contained in this docu-ment. eFunds does not represent, warrant or guaranteethat the information in this document is accurate or com-plete. eFunds provides the information in this document“AS IS” and without warranty of any kind. ALL EXPRESSEDAND IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MER-CHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE,AND ARE HEREBY DISCLAIMED BY EFUNDS. Unless other-wise expressly agreed in writing by eFunds, in no eventwill eFunds be liable for any damages, whether direct,indirect, special and consequential or otherwise, arisingout of use of the information contained in this document.

V O L U M E 8 / I S S U E 1 / S U M M E R 2 0 0 5

V A U L TAn information resource for electronic payments

brought to you by eFunds Corporation

For customers, it’s all about makingevery transaction more valuableIn my last editorial, I spoke about some of the long-term invest-ments eFundsSM is making in upcoming solutions like CONNEXOpen Enterprise™ (OE), the next generation component architecturethat will support eFunds’ enterprise level payment processing andrisk management solutions.

To drive our solutions delivery strategy across our key Finan-cial Services and Retail markets, we have turned to exceptionalmarketing leadership focused on the needs of our customers andhow they invest in technology to generate new revenue, furtherreduce operating costs and get quickly to market. Kay Nichols, ournew senior vice president of strategy and marketing, is finding thatthe industry is migrating steadily away from one-off product

investments to a more long-term, solution-oriented focus that leverages the benefits of a flexible,end-to-end payment component architecture.

For many of our customers, the move toward a complete solution won’t happen overnight, yet more and more we are seeing interest in near- to long-term solutions like an “inte-grated payments hub” — solutions that bring together complementary payment processing,risk management and fraud prevention components under a single, integrated architecture.While the concept sounds almost like science fiction in the payments industry, in reality it’salready happening in the eFunds global community.

Take a look at our recently announced solution with Société Générale Group (p.21), basedin France. eFunds has recently won a contract to provide complete card processing servicesfor the international retail banking subsidiaries of the bank, which is one of the largest finan-cial services groups in the Euro zone.

This deal is noteworthy for many reasons. As another example of eFunds’ foray into interna-tional processing, it represents our commitment to being a global, customer-centric solutionsprovider. In addition, eFunds is ideally positioned to offer the bank the end-to-end foundation foran integrated payments hub. Through both our rich history in debit processing and the openplatform expertise offered through our acquisition of Oasis’ IST product line, eFunds will be ableto offer each of the bank’s subsidiaries full third-party processing services right across the trans-action lifecycle, including ATM management, merchant acquiring, back-office services and cardmanagement. Lastly, the eFunds solution will now enable the bank to realize efficiencies fromprocessing on a common platform. All tolled, it’s a powerful story that demonstrates not only thevalidity of eFunds’ vision, but our ability to deliver that vision to customers through solutionsthat really do make every transaction more valuable.

In addition to delivering major customer projects and building out our OE family of solutions,eFunds continues to extend its value proposition through strategic acquisitions that are helping usaccelerate delivery to the marketplace. To augment the introduction of Open Enterprise as theunderlying solution architecture for both payments and risk/fraud management, we have beenactively completing our solutions delivery capability right across the transaction lifecycle, in our key“pay before” (prepaid/stored value), “pay now” (debit) and “pay later (credit) segments.

Earlier this year, we acquired ClearCommerce Corporation (p.5), which has given us an imme-diate foothold in card-not-present/Internet fraud management space. This is a natural extension ofour risk management business that extends our fraud management solutions across both theaccount and transaction lifecycles. In July, we also completed our acquisition of WildCard Systems(p.3), the industry’s leading provider of prepaid and stored value solutions for financial institu-tions and retailers. This acquisition builds naturally on our previous partnership with WildCard,and offers the industry an integrated debit and prepaid solution. With the prepaid market segmentpoised to grow by more than 20 per cent over the next five years (Mercator Advisory Group), thecombination of eFunds and WildCard will serve to further extend our overall payment valueproposition and offer our customers access to a market tested and proven prepaid solution.

Now, more than ever, eFunds is focused on you, our customers. This issue of Vault goes along way to demonstrating what we have to offer today, what we're building for tomorrow, andthe customers that are already making every transaction more valuable through successfuleFunds implementations.

Sincerely,

Paul F. WalshChairman and Chief Executive OfficereFunds Corporation

Cha

irm

an’s

This publication may contain forward-looking statements that are based on expectations, estimates, projections and assump-tions of eFunds Corporation and various other parties quoted. Words such as “expects,” “anticipates,” “plans,” “believes,”“scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking state-ments, which include but are not limited to projections of revenues, earnings, segment performance, and growth. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995,as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, whichare difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-look-ing statements due to a variety of factors. All forward-looking statements speak only as of the date of this publication orsuch earlier date identified for republished information. All subsequent written and oral forward-looking statements attribut-able to eFunds Corporation, its affiliates or any person acting on the their behalf are qualified by the cautionary statementsin this paragraph. eFunds Corporation does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this publication.

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Acquisition creates leading market position in high-growth prepaid segment

eFunds Corporation announces acquisition of WildCard Systems

With prepaid card spending of $160 billion in 2004 and a projected marketopportunity of more than $1 trillion overthe next decade, prepaid applicationspresent financial institutions with a high-growth, innovative alternative totraditional debit and credit programs.They not only offer an enhanced valueproposition to cardholders — who findthem more secure than cash and moreconvenient than checks — but also givefinancial institutions another tool toadvance the payment process and intro-duce new revenue-generating products to their consumer and business clients.

Realizing the benefit of this growing market for its customers and the enhancement to its current offerings,eFunds announced the signing of a definitive agreement in early June toacquire WildCard Systems, a leader inprepaid and stored value solutions forfinancial institutions and retailers around the world. WildCard Systemsoffers an array of commercial and consumer stored-value products madeavailable to end-users through banks and commercial clients.

The addition of WildCard’s prepaidand stored value expertise to eFunds’ debitprocessing capabilities provides a comple-mentary extension of the current value

proposition. As the industry moves frompaper to electronic payments, there isgrowing demand for innovative solutions,such as stored value systems, especially infinancial services where eFunds alreadyserves more than 9,000 clients across 80 countries.

WildCard primarily focuses on open or “branded” prepaid products by leveraging the payment networks of Visa®, MasterCard® and Discover®. The WildCard approach provides aneffective solution to increase financialinstitutions’ offerings through rapid, low-cost deployment. The cards address theneeds of a number of segments, eitherwhere cash or paper dominate or wherecredit and debit cards have made littleimpact. The applications include payroll,government benefit, gift card and multipurpose, general-spending cardproducts. WildCard’s solutions provide an entry into a wide range of hard-to-reach niches, from those without atransactional bank account to teens and students.

The acquisition comes on the heels of a successful partnership between thetwo companies announced in November2004. Since that announcement, two tierone financial institution deals were closed under eFunds’ existing alliancewith MasterCard International. The part-nership validated the market demand forprepaid payment products, and hasproven the companies’ ability to work

together to deliver an integrated debitand prepaid solution.

“We are excited to welcome WildCardto team eFunds — this is a natural fit,”said Paul Walsh, chairman and chiefexecutive officer of eFunds.“The complementary nature of debit and prepaid brings a powerful valueproposition to the financial institutionsserved by our companies.”

“Our combined companies bring theagility and responsiveness of WildCardwith eFunds’ significant financial institution franchise, financial stability,technological scalability and worldwideresources,” said Larence Park, CEO and co-founder of WildCard Systems.“Our integrated debit and prepaid offering moves customers closer to a single ‘payment hub,’ streamlining themanagement of their consumer accounts.Customers can now come to one trustedprovider for a full suite of debit and prepaid solutions.”

WildCard Systems at a glance• WildCard Systems is a global

solutions leader in turnkeyhost-based prepaid cards andcustom stored-value products.

• WildCard Systems is certified byVisa®, MasterCard® andDiscover® as an endpoint ontheir networks, and isauthorized to be an issuingprocessor for cards bearingVisa, Electron®, Interlink®,PLUS®, MasterCard, Maestro®,Cirrus® and Discover/NOVUSpayment marks.

• Founded in 1997• Based in Sunrise, Florida• www.wildcardsystems.com

According to Mercator AdvisoryGroup, the prepaid market isestimated to grow by more than 20percent over the next five years,making it one of the fastest growingpayment segments.

The enhanced value proposition offered by prepaid applications includes:• New Product Opportunities and Income Streams — prepaid applications present an

opportunity for issuers to develop and introduce new products with the potential togenerate incremental revenue streams. These applications offer a better alternativeto deliver traditional products/services that can attract new accounts and buildrelationships within hard to reach niches, such as the unbanked and teens/students.

• Cost Reduction — electronic processing typically costs a fraction of paper processing.• Greater Control — the ability to establish controls that govern when and where a

card may be used, along with a spending cap, offers institutions precisemanagement, reconciliation, auditing and disbursements.

• Less Risk/Fraud — with proper controls and use of appropriate risk mitigationtools, electronic processing can reduce the risk inherent in paper-based systems,minimizing fraud losses.

• Improved Customer Experience — prepaid applications provide a safer, moreconvenient option for customers and offer faster access to funds.

V

There's a big WildCard in eFunds' future

4

As a leading provider of transaction processingand debit account risk management solutions,eFunds is focused on building an end-to-endsolution across the account management andtransaction processing lifecycles. Our vision forcomplete, customer-driven solutions goes wellbeyond our historical expertise in the debitspace. Moving forward, we are focused onexpanding the value chain to include compre-hensive solutions for new growth areas likestored value and debit/credit fraud manage-ment. For eFunds, the integration of prepaidwithin our matrix of customer-focused solutionsprovides a natural complement to our existingdebit/credit processing and software capabilities.

For any solutions company focused onmeeting customer needs, striking the rightbalance between building in-house developedsolutions and acquiring new technology tomeet market demand is key. eFunds continuesto make significant investments in its coreproducts and services, such as our integratedCONNEX Open Enterprise™ payments and riskmanagement platform. Equally important,we're also making strategic decisions toacquire technology and proven expertise thathelps us build out our total value proposition.When these parallel strategies work in hand inhand, the result is a company — and an over-all solution delivery capability — that is fargreater than the sum of its parts.

Two recent acquisitions, ClearCommerceand WildCard Systems, are helping eFundsexpand its integrated risk/fraud managementand payment solutions across the entireaccount and transaction lifecycle. Ultimately,

they will provide our current customer base of9,000 financial institutions with a wider rangeof integrated solutions that are secure, flexible,proven and reliable.

The future of fraud reduction is clearIn the case of ClearCommerce and the everincreasing incidence of card-not-present transac-tion fraud, our customers now have the optionto choose from a single provider that combinesindustry-leading check authorization solutions,including SCANSM, with a comprehensive fraudsolution for CNP transactions. When you com-bine the analytic capabilities of ClearCommerce'sFraudDetect™ database and eFunds' leadingDebitBureau® database, our customers will alsohave immediate access to some of the richestdata in the industry, covering a wider spectrumof account and transaction fraud.

New value in storeExplosive growth in the pre-paid/stored valuemarket — which is currently estimated to growto more than $1 trillion in the next decade -has had a tremendous effect on financial insti-tutions at every market tier. Prepaid solutionsare considered an ideal method for tapping intothe “unbanked” (those who don't hold a trans-actional bank account), growing card productrevenues, providing increased convenience,driving electronic payment adoption, andenhancing security. As a result, most financialinstitutions are looking to prepaid as a keyopportunity to access a larger segment of themarket and increase customer retention.

With new debit card growth now outpacingcredit card growth, the timing for a combined

debit-prepaid solution is ideal. To achieve this,we are working actively with WildCard toensure we can meet the immediate demand forturnkey, “card-in-a-box” solutions (p.11), whileproviding the long-term stored value processingcapability within Open Enterprise.

Planning for the futureIn all cases, however, our ongoing integrationstrategy is also helping us to achieve our goalof a seamless payment processing and riskmanagement world, where account openingand servicing, credit/debit/prepaid transactionprocessing and fraud management are integrat-ed through an open, flexible architecture. Inthis respect, all of our acquisitions are helpingus to accelerate future market delivery. Yetcustomers can also choose to take advantage ofexisting solutions today — all with the peace ofmind that they will ultimately integrate withour next generation solution components tohelp reduce migration risk.

For eFunds customers, the value of acqui-sitions is about leveraging immediatetime-to-market, cost reduction and revenuegeneration advantages, while creating long-term, synergistic benefits that will drive thefuture of your business.

Sincerely,

Rahul Gupta, Senior Vice President, Payment Account SolutionseFunds Corporation

How strategic acquisitions are accelerating eFunds' customer-facing solutions

eFunds processing services poised for domestic and international growthFrom the point of transaction to back-officemanagement, eFunds provides organizationswith proven, reliable solutions for transactionprocessing across the entire payment lifecycle.Whether customer needs involve ATM driving,multi-channel acquiring, real-time authoriza-tion, card management, or advanced paymentfraud prevention, we offer a single-sourceconnection to robust payment managementservices and software that increase revenue,reduce costs, improve time to market andenhance customer service.

To meet the growing domestic and interna-tional demand for eFunds solutions, wecontinue to make robust investments in bothour core software and processing businesses.At eFunds, the software we develop and taketo market internationally — including theentire CONNEX Open Enterprise™ payment

suite — is, in fact, the foundation for a widerange of the services we offer through eFundsdata centers in the U.S. As we continue toincrease our global processing footprint withdeals like Société Générale and acquisitionslike India Switch Company, we’re building theinfrastructure that will ultimately help us todeliver an even wider range of customer-focused processing solutions to broaderdomestic and international markets.

Key market drivers at home and abroadIn the U.S. we continue to see cost optimiza-tion as a key driver in the selection ofprocessing services. Though the landscapeitself continues to be dominated by a smallernumber of large players as a result of acquisi-tion activity, transaction volumes continue togrow, in some cases at an explosive pace.

ACH, for example, continues to see healthyyear-over-year volume increases, with checkreplacement applications (eCheck) fuelingdouble and triple-digit growth. ARC leads thepack of eCheck applications with more than324M transactions, representing 338 per centgrowth (4th quarter 2003 to 4th quarter 2004;NACHA). Debit growth also continues to accel-erate, with Visa® predicting that volume in 2005will finally surpass checks for the first time.And the killer application? Stored Value hasemerged as a now standard payment productfor most financial institutions, with growthexpected at greater than 20 per cent through2010 and a total market opportunity estimatedat $1.3 trillion (Mercator Advisory Group).

To meet the needs of this changing pay-ments landscape, financial institutions and

Continued on page 24

eFunds Corporation acquiresClearCommerce Corporation

5

As electronic commerce continues its rapid growth,many retailers have seen a corresponding increasein the amount of fraud. On-line credit card fraud,which commonly involves identification theft, now represents nearly half of total credit card fraud.As a result, businesses selling on-line are challengedto protect customers’ critical payment information— as well as their own revenue and profits — fromincreasingly sophisticated fraud schemes.

eFunds has recognized this growing need. As part of its mission to provide enhanced value forconsumer financial accounts, eFunds has taken thenext step toward helping its FI and retail customersfight fraud and identity theft with the acquisition of ClearCommerce Corporation, an industry leadingprovider of robust and proven fraud prevention andpayment processing solutions for card-not-present(CNP) transactions.

Comprehensive fraud detection technologiesClearCommerce’s fraud prevention solution integrates a comprehensive and powerful arsenal of fraud detection technologies, including sophisticated order screening rules, rule weighting,merchant configurable velocity checks, neural network risk scoring, interna-tional IP address location, and automated order reviewassistant. It provides a highlyreliable, scalable, and feature-rich solution, enablingmerchants and serviceproviders to reduce the risksand costs of fraud, increaserevenue and improve the prof-itability of their CNP saleschannels.

The acquisition broadens eFunds’ lead-ing suite of risk management andelectronic payment solutions with a com-prehensive payment and fraud solution forCNP transactions. It also expands thecompany’s market footprint in the retailsector with more than 140 new customersin seven countries. The union of eFunds’ industry-leading check authorization and risk managementsolutions, including SCAN™, with ClearCommerce’s

solution suite provides an unrivaled, single-sourceoffering for integrated transaction processing andrisk management across multiple channels (point-of-sale, eCommerce, catalog) and payment types.

“The acquisition is another step in the execu-tion of our long-term strategic plan,” said PaulWalsh, chairman and chief executive officer ofeFunds. “Our combined solutions will help customers take an integrated, enterprise-wide view of their transaction processing and fraudmanagement systems that will help control costs,increase transaction revenue and strengthen customer loyalty. Customers can now come to one trusted provider for a full suite of fraud prevention and payment processing solutions totake advantage of the growing trend towards electronic payments.”

The expanded offering provides the distinctiveability to manage the growing threat of identity and payment fraud moreeffectively and completely, helping toprotect against losses. With analytics

from both the ClearCommerceFraudDetect™ database andthe eFunds DebitBureau®database, customers will havea comprehensive perspectiveon fraud detection.

“Both companies have deep domain expertisein payments and risk man-

agement, enabling us to createbest-in-class solutions,” said Robert J. Lynch, president and CEO

of ClearCommerce.“Combining our respectivestrengths will give our customers comprehen-sive and predictive fraud prevention

techniques, as well as an integrated paymentsolution for both card-not-present and point-of-sale transactions.”

Combining the best of fraud databasesThe rich combination of analytics from both theeFunds DebitBureau and ClearCommerce FraudDe-tect databases will create an unrivaled source ofonline and offline information that will serve as the foundation for the company’s next generation of fraud prevention tools — while helping to build a sustainable competitive advantage. eFunds willleverage the ClearCommerce platform with eFunds’risk and payment engines to accelerate the delivery of new product offerings under the CONNEXOpen Enterprise™ suite, providing a powerful foundation for building high-value customer solutions. These new offerings will provide best-in-class data, analytics and decision support tools for managing fraud and risk to create one of themost comprehensive, adaptive and predictive fraud prevention platforms in the industry.

“We are excited to welcome ClearCommerce to eFunds,” said Walsh.“The complementarynature of their technology and skill set with ourcore capabilities will further extend our uniquevalue proposition to the world’s largest retailers and financial institutions for flexible, end-to-endpayment and fraud solutions.”

ClearCommerce’s comprehensive riskmanagement solution enables online retailers to:• Optimize fraud detection and protect

against fraud attacks with a powerfularsenal of screening technologies

• Increase efficiency of order processingthrough fully automated screening and order review tools

• Maximize legitimate sales and customersatisfaction by accurately detecting fraudulent orders

• Easily adapt to business growth with anopen, flexible decision platform

• Maximize Return on Investment throughflexible, cost effective deployment options

eFunds’ industry leading fraudand ID theft solutions• eFunds’ SCANSM check verification solution

supports approximately 71,000 merchantlocations across the U.S., helping retailersminimize check payment risk at the pointof sale.

• eFunds is the creator of DebitBureau®,North America’s largest debit database,which now holds more than three billionconsumer records received from financial,retail and government sources.

• More than 88,000 financial servicescompany locations use eFunds’ChexSystemsSM services to minimize fraud and mitigate risk during the account opening process.

• ClearCommerce FraudShield™ providesorder-centric fraud detection built on aproprietary model of more than 40 millioncard-not-present transactions.

ClearCommerce at a glance• ClearCommerce software and systems are

used by 80,000 businesses worldwide• Customers include Adobe®,

Apple Computer®, Barclay’s® and Staples®• Founded in 1995• Based in Austin, Texas• www.clearcommerce.com

Acquisition broadens eFunds fraud and risk solutions to card-not-present channels

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Remote Control — ATM support gets easier withmigration to remote management technologies

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NCR’s high availability ATM service environment: the Self-service Diagnostic Gateway

For financial and retail automated tellermachine (ATM) owners, minimizing downtime is key to reaching higher levels of customer satisfaction and increased profitability. After all, ATMs are more thanjust cash dispensers — they are one the most frequent and influential touch pointsfor banks with their customers. Keepingthese units operating near 100 percent oftheir potential uptime is measured in hun-dreds of thousands of dollars annually.

With the various breakpoints in an ATM

and all of the manual intervention, areas ofopportunity include the time it takes todispatch the service team, respond to thecall and repair the fault on-site. Identifyingthe correct details associated with the faultprior to service team dispatch will greatlyimpact the response provided and timespent on-site.

Challenges with automating asemi-manual, arduous processPreviously, identifying an ATM error was

a manual process that could only be con-ducted on-site at the ATM. Within the ATM,thousands of error status codes exist for theATMs hardware and software that are trig-gered when an error condition occurs. Codesare written to an error log inside the ATM sothat the service technician, upon arrival, canquickly diagnose and resolve the fault.

To speed the time it required for a technician to manually determine the error,the process was automated to allow all errorcodes associated with the fault to be sent

For financial institutions, ISOs and off-premise deployers, the cost of managingATM networks continues to rise, whileprofit margins continue to be an ongoingchallenge. For many, the ATM market hasbecome heavily saturated, further com-pounding the issue of decliningtransactions — and therefore revenue —per ATM location. And while ATMs contin-ue to mature in terms of functionality andtransaction capability, the majority ofcardholders still use ATMs for simple cashwithdrawals. This, too, has been affectedby the increasing influence of debit, as

consumers opt for convenient “cash-back”options at the point of sale — a move thatfurther erodes the revenue streams frommerchant-based off-premise ATM locations.

While the cost to manage ATM networksvaries greatly from financial institutions(highest costs) to ISOs (lowest costs), thepressure to optimize service and mainte-nance processes has increased across theentire industry. With declining ATM rev-enues impacting virtually all players,reducing ATM management cost structureshas now become a priority.

In response to this growing marketneed, most of the major ATM manufactur-ers and supporting ATM technologyproviders — including eFunds — havefocused on delivering new solutions thathelp financial institutions and ISOs bettermanage their ATM networks. What are wefocusing on? Three eFunds partners —NCR, TEKchand and Trusted SecuritySolutions — are adding value to the“remote servicing” arena, and in all casesthe solutions are now available to eFundsEFT customers.

eFunds partners with NCR, TEKchand and Trusted Security Solutions to enable remote ATM Management

1.

1. Remote ATM Error Detection and Dispatching

SolutionThe Self-Service Diagnostic Gateway(SSDG)

What it Does• Automates the receipt of native ATM

error codes

• Enables more intelligent dispatch ofpersonnel and eliminates preventableservice calls

2. Remote Graphics Upload & ATM Screen MarketingAutomation

SolutionATMRewards

What it Does• Web-based ATM content

development, management and delivery system

• Enables real-time content changesand one-to-one targeted marketing

3. Remote ATM Key Management

SolutionA98-R Remote Re-keying Solution

What it Does• Automatically creates and distributes

ATM master keys

• Eliminates manual on-site key loadingand reduces key management costs

continued on page 6 continued on page 8 continued on page 9

Remote Control — ATM support gets easier withmigration to remote management technologies

directly from the ATM to the host or switch com-puter to aid with service dispatching decisions.However, the thousands of codes received becamedaunting to track. As a result, the predominantpractice was to dilute the detailed native statuscodes into more generic fault messages. In mostcases, roughly 1,900 detailed native codes werereduced to 50 to 100. This type of generic informa-tion being passed to the service provider causedconfusion and slow service resulting in:

• Inaccurate service teams being dispatched

• Incorrect skills dispatched (first line vs. secondline maintenance)

• Wrong part, impacting first visit resolutionsand repeat failures

• Out of scope service calls (cash or supply outand lost communications)

• ATM in service when technician arrives on-site

• Service Level Agreements not maintained

• Decreased ATM availability resulting in unhappy customers

For example, when an ATM ran out of cash, thenative code notified the host that Cassette #2 wasout of cash. When the host translated the code intoa generic message it said “Dispenser Failure.” If“Dispenser Failure” always meant “Cash Out,” thiswould not pose a problem and could be quicklyresolved by the branch or with cash in transit.However, “Dispenser Failure” could also mean“Jammed Bills” and first line service would berequired. Likewise, “Dispenser Failure” could alsomean a fatal error occurred on the control boardand required a part and second line maintenance.

As witnessed in the example, trying to determine what skills to send to a call steadilycontributed to the decline in total ATM availability

— a problem continually plaguing ATM owners,vendors and service providers.

Simplifying the remote errorprocess to reduce ATM downtimeNCR® and eFunds addressed this problem by implementing the High Availability strategy toautomate the process of receiving error codes and reduce the frustrations of controllable ATMdowntime. The bedrock of the strategy is theimplementation of NCR’s unique Self ServiceDiagnostic Gateway (SSDG), which ensures the right details regarding the ATM fault are communicated to:

• Make certain proper service and skills areassigned to the dispatch

• Provide the recommended service action for the repair

• Identify all required parts to resolve the faultprior to arriving at the ATM

• Proactively review service calls to eliminatepreventable calls

SSDG is a process with imbedded technologythat allows the host environment to pass thenative status codes of an ATM fault electronically

into NCR’s High Availability Service Environment.Diagnostics are performed and a recommendedaction is provided to NCR’s Dispatch ServiceCenter. The fault is then analyzed based on thedetails of the native status code and an intelligentdispatch can be created that recommends theappropriate skill set for the service request. If apart is required to resolve the fault, the technicianwill know the part needed before arriving on site,effectively minimizing the downtime associatedwith the fault.

With the SSDG in place, the minimum impacton ATM uptime has risen by one percent — evenhigher in most cases. Although this may notsound significant, in larger channels a one percentgain can equate to millions saved in servicing timeand costs. Based on 24 hour availability, onepercent of increased ATM availability results in 3.6days or roughly 86 hours, of additional up-timeper ATM per year.

“The foundation of the approach to HighAvailability is NCR’s in-depth knowledge of howto read, interpret and react to message stringsproduced by all ATMs. In the past, this importantinformation was trapped or lost by the network’shost computer,” said Tony Ipsarides, director,product management, eFunds Corporation. “Byworking with us to access this information,NCR’s SSDG solution delivers unparalleledinsight into the status of our customers’ ATMnetworks. The result is faster, more efficientsupport for customer ATM channels and signifi-cant improvement in total ATM availability.”

eFunds has partnered with NCR to offer theSSDG solution, providing measurably-enhancedfirst line and second line support.

For more information, contact your eFunds accountrepresentative today

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NCR Corporation at a glance• NCR is a leading global technology

company helping businesses buildstronger relationships with theircustomers. NCR’s ATMs, retailsystems, data warehouses and ITservices provide solutions thatmaximize the value of customerinteractions and help organizationscreate a stronger competitiveposition.

• Based in Dayton, Ohio• 28,500 employees• NYSE: NCR• www.NCR.com

NCR’s Self Service Diagnostic Gatewaytechnology provides more intelligentoperation to minimize ATM downtime byreducing ATM response times, enablingfaster repair times and reducingpersonnel cost — ultimately improvingthe customer’s bottom line.

Native Status Code: 5670-0100:ATM123: Cash Handler-Csst 2 Cash Out

Host Computer

Generic Status Code: ATM123: Dispenser Failure — Low Side

The SSDG system takes native codes received from all ATMs on the host or switch and translates them to 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.

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

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 thischannel to market to their current and potentialcustomer base due to:

• Cumbersome, manual processes for simplechanges (such as screen changes)

• Limited marketing space for products and services

• Inability to track or monitor marketingcampaigns

• Long lead times required for IT resources toschedule changes and operations toimplement the changes

• Advanced marketing features requiring costlyinvestment in next generation ATMs

With TEKchand’s ATMRewards there is nowan available solution that automates many of the manual processes associated with ATM marketing. ATMRewards provides a comprehen-sive, web-based ATM content development,management and delivery system. The applicationinterfaces directly with CONNEX™ andIST®/Switch to enable real-time content changesand “one-to-one” targeted marketing. It alsointerfaces directly to ATMs with TCP/IP to enablemulti-media content (graphics, audio files, etc.)distribution. Beyond simple ATM screen changes,the application supports targeted coupons, interactive customer polls and queries, automatedmarketing messages, personalization and more.

The platform automates the process of ATM screen and receipt changes for marketing messages, addressing the needs of each stakeholder in the ATM advertising process:

• For ATM operations — ATMRewards is aconvenient Web-based system for set-up,monitoring, auditing and ATM configurationfile management functions

• For marketers — ATMRewards offers asimple, reservation-based system accessiblevia the Intranet for ATM advertising

• For business managers — ATMRewardsprovides a cost-effective solution that is easyto set-up and does not require hardware,software or network changes at the ATM

Dynamic, targeted marketingThe ATMRewards platform provides interactivemarketing capabilities that allow FIs to changeATM content via the Web in real-time. The solution not only enables traditional ATM adver-tising, such as general information on productsand services, but also extends the capability totargeted offers, coupons and polls based ondesired demographics. And, with the ability tocollect a customer’s data at the ATM, the resultcan be a highly personalized customer interactionthrough individually preset language, fast cashand receipt preferences.

By utilizing dynamic content tags, ATMRewards enables personalized marketingsuch as instant credit approvals, mortgage andauto financing rates and other timely offers. Thecontent tags, which can be set to automaticallyupdate, can be included on the screen or receiptas an image, text or audio file. They can be linkedto data feeds, decision making engines or card-holder databases for updated, targeted one-to-oneadvertising. This allows messaging to be targetedbased on card number, location, transaction type,time of day or a number of other factors.

Once a new initiative is launched, FIs caneasily evaluate the success of their ATM campaign.The ATMRewards event logs enable real-timecampaign monitoring and statistical analysis.

Gain valuable time and cost reductionsPrior to now, the ATM screen change process has been a manual, ATM operations functionrequiring lead time. It can now be a marketingfunction enabling real-time changes. With usability as a core focus, non-IT users are able todesign, model and promote content instantly.

The ATMRewards flexible, platform independent architecture does not require costlyATM hardware, software or network upgrades.The system supports multi-vendor ATMs, including OS/2 State-Screen ATMs that may represent a large portion of a FIs ATM portfolio.This solution adds high value in comparison tothe current costly multi-vendor/multi-platformmix of delivering the same content.

ATMRewards also improves operational efficiencies by reducing the number of ATM Loadfiles and by automating the manual process ofchanging ATM configurations. By providing convenient access to the system and remote filedistribution capabilities, ATMRewards eliminatesthe need for local ATM site visits, which canquickly add up at $300-500 per ATM visit.

“The ATMRewards solution provides greatvalue to FIs by extending their CRM strategydirectly to the ATM channel through the abilityto distribute timely, multi-media marketingmessages targeted directly to potential and current customers,” said Rajeev Bahri, managingdirector of TEKchand. “This greatly expands the potential touch points for this largely underutilized marketing channel.”

2. ATMRewards platform provides easy, remote marketing channel for ATMs

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TEKchand LLC at a glance• ATM software and solutions provider• Offices in Chicago and Delhi, India • 11 employees• Founded in 1999 to provide a cost

effective, switch-based solution forenabling content and new serviceson multi-vendor ATMs, withoutrequiring the cumbersome andexpensive process of overhaulingATM hardware or software.

• www.tekchand.com

ATMRewards: Before & After

Task Manual Process — without ATMRewards Automated Process — with ATMRewards

Change static ATM screen content for keyscreens (Welcome, Wait, Thank You, Out ofService)

Marketing department requests screen change and ATM operationsmakes the change to the ATM Load file, manually sending a mini-load to reload the ATM Delivery Timeframe: a few hours to one week (depending onoperations availability) Marketing department, operations or

other authorized business unit makeschange directly via the Web, selectingand targeting ATMs and timing, thenactivates the changes in real-time.

Delivery Timeframe: immediate — the system communicates directlywith the ATM host for contentchanges and Directly with the ATM via an ATM agent for graphic filedistribution.

Add message on receipt header or trailer Same as static screen changes above

Change dynamic content on ATM screen orreceipt for CRM and one-to-one marketing

Not possible without major development on ATM hostDelivery Timeframe: six months

Provide a coupon transaction Not possible without developing a new load fileDelivery Timeframe: one to two months

Capture ATM user feedback Not possible without major development on ATM hostDelivery Timeframe: six to 10 months

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

With Triple DES as an impetus, along with thethought of future regulatory and technicalupdates, financial institutions are taking a hardlook at their long-term ATM strategy to best position themselves for upcoming changes. One of the ways eFunds and Trusted SecuritySolutions (TSS) are helping FIs with this strategyis through a simplified ATM key managementsolution that enables remote generation or keysand audit log maintenance. The Remote Re-Keysolution, developed to interface with TSS’ A98-R

technology, offers eFunds’ software and processing customers a complete, provensolution for key management of legacy and remote ATMs.

The Remote Re-Key solution utilizes theTSS A98-R technology to automatically createand distribute ATM master keys, eliminatingmanual on-site key loading and reducing manage-ment costs. New or existing eFunds customerscan easily implement the Remote Re-Key solutionsince all cryptography and protocol managementis performed by the A98-R technology that inter-faces with eFunds’ CONNEX™ software platform.Currently NCR and Diebold machines are sup-ported, though ATMs from any manufacturer canbenefit from the management flexibility andefficiencies.

How Remote Re-Key worksThe A98-R delivers random master keys in fullcompliance with ANSI standards and with network mandates for Triple-DES and unique keysper ATM. The remote re-key process requires theA98 to be authenticated by the ATM. In this step,either the signed A98 public key or its certificate issent from the A98 to the ATM. Once verified, theATM will send its EPP public key to the A98. The A98 stores the EPP data and then generates a new DES key, encrypts it with the EPP’s publickey, prepares the required message format, andsends this new master key to the ATM. When theEPP responds that it successfully loaded the key,A98 sends a cryptogram of this new key to thehost for loading into the terminal database.

Remote keying without the hassle of multiple upgradesA98-R enables a new key to be sent to the ATMvia an integrated eHelpDesk module, whichauthorized personnel can access through a secure

browser. Trusted Security Solutions’ XML interfaceis used to communicate with the driver over aTCP/IP link. This approach confines modificationsto the ATM device driver and eliminates any needto change the host security module or terminaldriving application software. All the public keycryptography, message formatting, database accessand user interface programming is provided in theA98 module.

“With CONNEX and the A98 working together, the customer has the most efficient key management solution available for bothlegacy and Remote Key enabled ready ATMs,”said Bill Hammel, managing director, globalsoftware, eFunds Corporation. “It provides agood value for customers in need of significant flexibility and failsafe security features.”

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

Trusted Security Solutions at a glance• Formed in 1998 by Abraham & Associates,

Inc. and J.S. Walker & Company, Inc.for the purpose of bringing unique

security solutions to the transactionprocessing industry.

• Flagship product — the“A98 Initial ATMKey Establishment System" designed for institutions that manage thecryptographic keys for ATMs. The A98™system incorporates patented technologyfor establishing initial ATM keys in amanner that is compliant with all knownapplicable industry standards and networkoperating rules, including the Triple-DESrequirement and RSA cryptography.

• www.trustedsecurity.com

Benefits of Remote Re-Key• Automatically creates and distributes ATM

master keys:o Eliminates manual on-site key loadingo Reduces key management costso Conforms to ANSI security standards

• Implements NCR and Diebold protocols• Provides the most efficient and complete

solution for both legacy and Remote Keyready ATMs through its incorporation intothe existing A98 platform

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3.

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COCC implements DataNavigator onWindows for comprehensive back-officedata management

eFunds continues to offer value-added products that help FIs improve their performanceCOCC, headquartered in Avon, CT, is amutually-owned third party core and EFTprocessor serving financial institutionsthroughout the Northeastern portion of theUnited States.

To help expand its business footprint,COCC has implemented the most advancedtechnologies and supported them withinnovative service strategies. This combinationof advanced technology and deep supportplays an important part in COCC’s valueproposition.

“Bankers aren’t technologists, but theyunderstand the compelling business casethat technology can provide and continual-ly look to technology innovations that cansave them time and money,” said SteveKayser, senior vice president of marketing atCOCC. “We’ve structured our company tomake a banker’s business more functionaland convenient by way of technology.”

In order to do so, COCC has partneredwith some of the best-known technologyproviders in the business to service over 135 community bank and credit unioncustomers. Through these partnerships,COCC now offers its customers a variety of services ranging from account processingand electronic banking to CRM and data mining.

Recognizing the need forintegrated back-officemanagementBecause COCC focuses on improving theprocesses that financial institutions need, it understands the value that single-pointaccess to back-office data provides. Handling settlement, consolidation andmanagement of transaction data from a centralized location not only improvesefficiency, but also reduces costs and better leverages back-office data for thebenefit of customers.

“The current banking environment —with increasing regulatory compliance and

shrinking margins — dictates that ourcustomers must access and analyze back-office data, but must do it in a way that is as quick and easy as possible in order to cut costs and improve efficiency,” said Rahul Gupta, senior vice president,Payment Account Solutions, eFunds Corporation. “Making sense of the datamanagement labyrinth, and providingnear-real time information, can help financialinstitutions improve customer service,reduce staff training times, and managetransaction data.”

Previously, COCC’s customers were ableto access a legacy environment to queryback-office data such as settlement historiesand transactions. The process was timeintensive and often increased the number of calls placed to COCC’s customer supportline, consuming valuable time and capital.New technology gave COCC the opportunityto improve the process. COCC evaluatedoptions and chose a solution that was suitable for both its customers and itself as a processor.

Choosing a trusted, single vendor of choiceFor 10 years COCC has relied on eFunds’CONNEX™ software to drive all electronicbanking functions for its customers. Tocapitalize on “single-vendor” efficiencies, itmade sense that COCC would again turn toits long-time partner to discuss possibilitiesfor managing the back office. eFunds’DataNavigator® on Windows® software —the back-office cornerstone of the compa-ny’s flexible, next-generation CONNEXOpen Enterprise™ payment architecture —enables consolidated real-time EFT datamanagement and customer support. Thiscombination of features proved to be theright fit for COCC.

Furthermore, DataNavigator’s uniquecombination of capabilities — transactionresearch, reporting, exception item reporting,device management and settlement — metCOCC’s efficiency requirements. Sinceinformation is accessible from a single web-based access point, operations personnelcan use one tool to analyze a variety of datapoints. In addition, the access to real-timedata means that COCC’s customers haveuninterrupted 24 x 7 access to their transac-tion data for better reporting and improvedoperational monitoring.

“It was essential to us that the solutionwe chose was both powerful and easy touse,” said Cecile Richard, Technical Product Manager. “Bankers are challenged

by the sheer number of alternatives on themarket, and face increasing pressure tobetter leverage their technology invest-ments. DataNavigator is a comprehensivedata management system that has helpedus improve functionality at the desktop soour banking customers have greater con-trol over their back-office data.”

COCC is currently implementingDataNavigator on Windows in its datacenter, and anticipates a complete roll-outby late summer 2005. Expected results to the financial institutions and creditunions include:

• Superior customer service throughexpedited information delivery

• More comprehensive reporting andquerying capabilities

• Web-based access throughout the clientbranch network

• Decreased calls to COCC customerservice line due to self servicecapabilities

• Time and cost savings due to improvedfunctionality and convenience

“For a decade, eFunds has added value toour customers’ businesses,” said Richard.“The addition of DataNavigator as a tech-nology tool to serve our FI customers willhelp us reach our goal of providing rich,transaction-based information and theconvenient, self-service tools needed to fully leverage back-office data.”

DataNavigator benefits forCOCC & its customers• Improved back-office management

operations for FIs• User-friendly, web-based transaction

research solution that allows forself-service queries.

• More comprehensive reporting andquerying capabilities to COCC FI/CUcustomers

• Easy to use self-service querying• Web-based for easy access and usage• Self-service query capabilities mean

reduced volume of inquiries andcustomer service calls to COCC

• COCC customer servicerepresentatives can be moreresponsive to incoming customerinquiries on transaction activity

• Integrates all ATM managementfunctions into a single, easy-to-usemanagement console for maximumutility and efficiency

COCC at a glanceHeadquartered: Avon, CTFounded: 1967Annual Revenue: $43 millionBusiness Model: COCC is one of thefastest-growing data processingcompanies in the United States and theonly mutually-owned data processordedicated to financial institutions.Clients: 135Client Assets: $26 billion

V

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Contact your eFunds account representative for more information

right out of the boxWhat eFunds does for you

• We take care of all prepaid program administration,

including set-up, sponsorship and issuing

• We take care of all cardholder customer service

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The benefits• Low, one-time start-up fee

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Getting your eFunds Card in a Box solution upand running is easy — here’s all we need to getyou 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

© 2005 eFunds Corporation. All Rights Reserved

New CONNEX Open Enterprise Introduction

New CONNEX OE EnterpriseView™ consolidates transactiondata, makes back-office more cost-effectiveIn today’s electronic payment processingenvironment, financial institutions andprocessors typically run multiple in-houseand third-party vendor applications to man-age their issuing/acquiring businesses,monitor their ATM fleet, and track theirsettlement positions across the networks.

For back-office operators, there is anongoing challenge to collect managementlevel transaction data within a single, user-friendly application that connects seamlesslyto multiple data repositories and systems. Foryears, eFunds software and processing cus-tomers have leveraged DataNavigator to takeadvantage of powerful transaction analysisand settlement features. Now, with OEEnterprise View, customers take their back-office management to a new level.

Enterprise View leverages multipletransaction data sources to collect anddisplay key management level paymentprocessing information through a highlyinteractive, easy-to-use “dashboard”. Enter-prises can choose from pre-definedpackages of summarize data — called“view packs” — that represent segments of the overall payments enterprise.

Initially, Enterprise View will ship withthree view packs: ATM Status,Acquirer/Issuer Activity, and SettlementPositions. As additional view packs becomeavailable, they will be shipped for inclusion(and integration) with Enterprise View. Viewpacks rely on prerequisite data sources — ifthese data sources are unavailable, the viewpack is disabled.

√

A better view of your payments enterprise

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Enterprise View Benefits:• Easy-to-use interface• Connects multiple transaction data

systems and repositories• Leverages power of DataNavigator

and CONNEX OE• Provides at-a-glance health of

entire payment processing operation• Reduces back-office management

expenses and resources• Flexible user profiles and access

controls

Upcoming EventsFor a look at upcoming products and services, please visit eFunds at the following industry events.

Conference/Tradeshow Date Location

ATM & Debit Forum Sept. 25 — 27, 2005 Sheraton Bal HarbourBal Harbour, FL

ITUG: The International Oct. 23 — 27, 2005 San Jose Convention CenterHP NonStop Users Group San Jose, CA

BAI Retail Delivery Nov. 15 — 18, 2005 Orange County Convention CenterOrlando, FL

Accessing Enterprise ViewFrom a security perspective, users must log on to Enterprise View, and each view pack issecured through the use of a security profile. The profile will control what view packsthe user has access to. In addition, data maintained within the system is secured. Thishelps to ensure that users with a certain set of access privileges are restricted to specificview packs.

Dashboard RefreshDashboard information can be refreshed manually or automatically. Automatic refreshcan be set through user preferences — this includes turning automatic refresh on or off,as well as the time interval for automatic refresh.

The Main “View Packs”Enterprise View ships with three standard view packs: ATM Status, Acquirer/IssuerActivity, and Settlement Positions.

• ATM Status — Displays a graphical representation of how many ATMs are currentlyopen, closed, closed for maintenance, or wounded.

• Acquirer/Issuer Activity — Displays the average transaction per second rate for thelast hour of processing, along with the current day’s transaction count and approvalrate for on us/at us, us at foreign, and foreign at us activity (through the time of thelast refresh).

• Settlement Position — Shows the previous day’s settled financial activity along withthe current settlement position (through the time of the last refresh).

Get a new view on your enterprise — contact eFunds today

For more information on CONNEX OE Enterprise View, contact your eFunds accountrepresentative, or email us at USmarketing@efunds.com.

1313

On the left hand side of the dashboard, a drill-down button for each of the viewpacks appears. This is a scrollable list of available view packs. Below the list ofbuttons is a ’summary’ button, which will always bring the user to this initialdisplay. The right hand pane (labeled Summary) shows a high level summary foreach of the view packs. View pack summaries will be shown for the view packbuttons displayed in the navigation pane.

Main Enterprise View Interface ATM Status

The Acquirer/Issuer Activity view pack displays four types of acquirer/issueractivity: transaction totals (amounts), transaction counts, surcharge amounts,and surcharge fee amounts. Activity information can be displayed for today(hourly), for the current month (daily), for the current quarter (weekly), or forthe current year (monthly). In addition, for each of these periods the previousperiod can be displayed (yesterday, last month, last quarter, or last year).

Acquirer/Issuer Activity

The Settlement Position view pack displays a list of each network that theorganization participates in, displaying the network ID, total transactionamount, total transaction count, plus the total adjustment amount and countfor each network (today and yesterday). In addition, a pie chart on the righthand side of the pane displays this same information graphically.

Settlement Position

This view pack provides a list of the ATMs this user has authorization to view.Information provided for each ATM includes:

• The Device ID• Current status of the device (open, closed, closed for maintenance,

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 includesthe device address and the last ten status messages from the device.

eFunds’ IST/Switch enables Bank of Punjab to deliver newservices and expand customer base

Bank of Punjab Limited, a new generation,technology-driven private sector bank, haspositioned itself on the core of new bankingsolutions by proving innovative financialservices across a variety of delivery chan-nels including branches, Internet, ATM,POS, kiosk, mobile devices, e-mail and call centers. The bank offers a spectrum of retail and corporate banking services and has 136 offices and more than 800,000customers serviced by a team of 2,000dedicated executives.

Today, Bank of Punjab has a network of 228 ATMs at on-site branches as well asoffsite locations and more than 10,000point-of-sale POS) terminals at merchantestablishments. The bank has undergonestrategic partnerships with MasterCard® andVisa® for debit and credit card acquiring onits ATM and POS machines, along with theissuance of a Maestro® debit card brandedas “eBank.”

Bank of Punjab selectsIST/Switch to enable expanded growth“When searching for solutions, one of thedistinct advantages for Bank of Punjab wasIST/Switch’s flexibility to meet the bank’s futuredelivery channel needs. IST’s open platformdesign helped the bank integrate various back-end systems, while its integrated multi-channelarchitecture provided BOP with a consolidatedcustomer view for better decision-supportsystems,” said Mr. S.V.Krishnamurthi, seniorvice president ofglobal sales andmarketing, HMASTARware, distributorof IST solutions. “Thiswas tested when thebank decided tochange its hardwareplatform midwaythrough the highlycustomized switchimplementation. The scalability alsoenabled the bank to plan for thefuture introduction of new technol-ogy solutions, such as smart cards.”

Following the implementation,the bank successfully migrated tothe Triple DES standard in compli-ance with MasterCard’s mandate to allmember banks, further showcasing eFunds’commitment to providing the latest technol-

ogy standards to its customers. Additionally,the bank was able to provide many value-added services to its customers, enabled byIST/Switch’s short “decision to deployment”lifecycle. Some of the innovative servicesthat the bank introduced through IST/Switchinclude the VISA gift card, POS throughCDMA technology and co-branded cards.

Setting the stage for future innovationLeveraging the IST/Switch implementation,Bank of Punjab also launched a series ofinnovative payment solutions. By utilizingthe Electronic Bill Presentment and Payment(EBPP) system, bank customers are nowable to pay utility bills such as insurancepremiums, telephone bills, water bills andelectricity bills through the bank’s onlinebanking service. Customers can also viewfull bill details and make immediate orfuture payments.

In addition to the Internet, customersare also able to pay bills through bankATMs. The bank has even expanded itsmission to provide world class bankingservices by leveraging technology and eBanking through a new “mobile wallet”concept — a solution allowing bank cus-

tomers to make and receivemerchant payments through their mobile phone.

With a wealth of new technologyservices, Bank of Punjab is sure tocontinue its rapidgrowth. eFunds’IST/Switch is wellpositioned to supportthe bank along its

path by providing a scalable,flexible solution that helps bringnew services to market fasterand more effectively.

“With the expertise of HMA STAR-ware and eFunds, we are now in aposition to drive positive changes for our banking customers,” said Mr. TejbirSingh, executive director, Bank of Punjab. “To continue our commitment to cus-tomer service, it was essential to have the

right combination of payment technologyand delivery excellence. eFunds and HMAbrought those qualities together seam-lessly, helping us to both retain currentcustomers and capture new marketopportunities.”

“We believe we are a step ahead oftechnology in the retail banking space, withIST/Switch as our switching infrastructure,”said Mr. Sharma, managing director, Bankof Punjab. “IST’s open solution architecturehas provided us with the necessary flexibil-ity, power and reliability to meet our evergrowing business demands.”

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Bank of Punjab Firsts• One of the first banks in India to

focus on retail banking• The first bank in North India to

install a state-of-the-art ATMpayment gateway, enabling onlinetransactions

• The first bank to introduce“faxbanking” and “telebanking”for its customers

• The first bank to offer extendedbanking hours for its customers

• The first among peer banks to setup a residential fully equippedtraining institute

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HMA STARware — IST/SwitchCustomers in India• IDBI Bank• Bank of India• Jammu & Kashmir Bank• ING — Vysya Bank• Syndicate Bank• Bank of Punjab• South Indian Bank• Bank of Rajasthan• Development Credit Bank Ltd. • Dutch-Bangla Bank Ltd.• India Switch Company• Bharat Overseas Bank [ASP]• Bank of Bahrain & Kuwait [ASP]

15

In April 2005, eFunds announced that, though its subsidiary,eFunds International India Pvt. Limited, it was set to acquirethe business interests of India Switch Company (ISC) fromHMA Group.

The agreement, which carries an initial cash purchaseprice of $17.5 million (US), is for the current ATM managedservices 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 globalfinancial services market.

“This acquisition is a significant step in the execution ofour long term strategic plan for eFunds’ India business,”said Atul Kunwar, managing director, eFunds, India. “It willleverage the global payments expertise eFunds has accumu-lated in products, platforms and service delivery to bringcompetitive and innovative solutions to the maturing Indianfinancial services industry.”

ISC is one of three third party EFT processors in India,focusing specifically on retail delivery channels. The compa-ny introduced India’s first Shared Payment Network System(SPNS) for premier banking institutions like Bank of India.In fact, Bank of India utilized ISC’s Total Retail Infrastruc-ture Management Services (TRIMS) — a pioneering conceptfor third party EFT processing of retail delivery channels —for ATM network sharing and banking via mobile phoneconnectivity.

“As a recognized market leader in ATM managementand electronic payments, eFunds will undoubtedly play akey role in the accelerated evolution of the Indian bankingindustry,” said Harish Murthi, chairman of HMA Group.“The existing ISC customers will now have the opportunityto access best-in-class solutions that will contribute posi-tively to building the expanding payments infrastructure inIndia. HMA Group itself will continue to focus on develop-ing businesses in other banking automation areas.”

Prior to the acquisition, eFunds and ISC had alreadyforged an existing relationship. For several years, ISC hadused eFunds IST/Switch software to drive its two sharedinterchange networks, CashTree and BANCS. IST/Switch isbuilt on an open architecture and provides a multi-channel,multi-delivery gateway for customers like ISC and Bank ofPunjab (see article at left).

The acquisition not only provides eFunds an additionalcustomer base, it further opens the growing domestic pay-ments market in India and demonstrates the company’scommitment to conducting business in India. eFunds currentlyoperates service centers and employs over 4,500 associates inMumbai, Chennai and Gurgaon. V

eFunds further strengthens internationalprocessing capabilities with acquisition of India Switch CompanyAcquisition from HMA Group will accelerate evolution of the Indian banking industry

HMA Group Companies• India Switch Company (acquired by eFunds)• HMA Data Systems Pvt. Ltd. • HMA STARware (an eFunds distributor/partner)

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 interchangenetworks that operate eFunds IST payments software.

“This acquisition is a significant step in the execution of our long term strategic plan for Funds’India business.”

-Atul Kunwar, managing director, eFunds, India

16

eFunds partners with GFG Groupto provide an innovative testingand simulation solution for FIsSoftware enables simplifieddesktop solution forpreviously difficult and timeconsuming EFT/POS, ATM andswitch testingWith the many changes facing a FIs EFTnetworks — standards compliance, deploy-ment of new financial service solutions,and hardware and software upgrades —development and testing departments arestrained to create the many different sce-narios required to accurately test acrossmultiple machines, devices and platforms.

To assist with this complex process,eFunds has partnered with GFG Group, a highly specialized international pay-ment solutions company, to distributeGFG:FINsim. FINsim is an ATM, POS andinterchange link simulator that reduces thetime for ATM network development, main-tenance and certification by providingdesktop emulation of a transaction envi-ronment. FINsim eliminates the need topurchase test devices or create physical testcards specifically for development, cutstime to market and improves the quality of new releases.

Improved testing scenariosthrough one simple desktopapplicationRegardless of how a FI’s EFT network isset up, FINsim can simulate any of thesystem’s major components. It can supportconcurrent testing of multiple devices withdifferent hardware configuration and proto-cols (TCP/IP, X.25 and SNA). This enablesall devices to be tested without theexpense of purchasing each device versionor variation, as well as saves the timerequired to reconfigure devices, changeparameters and reload data between tests.

Examples of FINsim’s testing capabilities include:

• New ATM states and screens

• Changes to management software

• Visa and MasterCard certification

• EMV compliance

• Bilateral links

• Network management and financial transactions

• Hardware failures and error conditions

• Automated stress tests and detailed statistical reporting

• Capacity planning

• Cryptographic processing for PINencryption, message authentication,dynamic key exchange, Triple DES andRemote Key Initialization through RSA

Leading Australian Bankrealizes error reductions andincreased reliabilityOne of Australia’s leading financial institu-tions employed FINsim to replace anexisting system in their test and pre-pro-duction test environments. The previoussystem ran six transaction types across 20devices using 30 cards.

With the FINsim software in place, thebank realized several changes in their testenvironment. When running regressionscripts, the bank increased the number ofscripts and ran them on more than 100different devices using 100 different cardtypes, with the largest script executing1,700 transactions. These volumes andtypes of configurations were not possiblewith their previous solution.

In the bank’s pre-production test envi-ronment, similar devices and transactiontypes were employed, but the transactionswere also weighted in proportion to actualproduction numbers. The scripts generatedaround one million transactions each andran for many hours allowing a realisticloading of the system similar to thosefound in production.

The results of the switch to FINsimwere impressive. By employing the abilityto design repeatable scripts tailored toindividual device requirements and capa-bilities, the bank was able to improve theirtransactional testing capabilities. Thisincreased the scope of the bank’s test casesand devices tested within a practical timeframe, also improving the reliability ofresults from the tests.

In addition to increased testing capacityand reliability of results, the bank sawadditional benefits in the following areas:

• Security key loads — By runningrepeated tests on a device, the bankwas able to identify a defect in thesystem. The tests showed that certainPOS devices were changing theirsecurity for every transaction instead ofevery 256 transactions. Although noimpact to the customer existed,increased CPU and telecommunicationcharges were incurred because of thedefect. FINsim was able to repeatedlyprove the problem existed, whichenabled the necessary data to becollected to develop a fix for the defect.

GFG Group at a Glance• Established in 1990 as a

consulting partnership• Grew with increasing focus on

the development and support ofpayment solutions

• 47 full-time staff, all paymentsindustry specialists

• Offices in New Zealand,Philippines, and Australiaservicing dynamic, rapidly-evolving industries

• Assignments and technicalproduct support in over 40 world markets

• Accredited by World Bank• www.gfg-group.com

GFG:FINsim incorporates three simulator types for efficient, cost-effective development and testing.

ATM DevicesNCR, NDC, NDC+, APTRADiebold 911, 912IBM 473x

EFT Switch DevicesISO 8583 & AS2805Visa (Base I and SMS)MasterCard (Banknet)

POS DevicesGeneric devices based on Hypercom terminal

• Non-bank card creation — Due to lack ofavailability to non-bank generated cards, testingwas previously limited to just a few banks andcard types. FINsim’s ability to create non-bankgenerated cards enabled transaction testingfrom seldom to never tested issuers, increasingthe reliability of their tests.

• Other bank interchange links — FINsimallowed the bank to perform regression testingwithout the dependency for external links to bein operation.

• New card prefix creation and testing — Oneof the bank’s projects involved testing therouting rules of more than 100 new cardprefixes. Rather than physically calculatingacceptable card numbers, the prefixes wereentered into the script generator that created alisting of usable prefixes where manual testingcould be performed and test transactions couldbe run on every card in demand. This processsaved the bank the time it would have taken tomanually calculate the numbers and increasedthe reliability of the new card prefixes.

Using FINsim, the bank also tested the impactof Triple DES and EMV against their CONNEXcode, as well as completed standard regressiontests on all their new software releases. FINsimallowed the bank to simulate the testing of EMVfour months prior to the delivery of the physicalEFT/POS devices — speeding their deploymenttime for the new devices.

The Triple DES tests proved to deliver similarpositive results for the bank, allowing them to testthe new CONNEX command to deploy Triple DESencryption across multiple ATMs through theFINsim clone functionality — something that wasnot possible using previous conventional ATMtests. The project was so successful that the bankhas completely reorganized their delivery andtesting methodology within the ATM and POSCONNEX systems. V

Reduce ACH Costs, Take Control

eFundsSM ACHPS

As a financial institution, you recognize that ACH processing presents both opportunities

and challenges. You can build new revenue streams, attract new customers and enter new

markets to expand your business. At the same time, you need a cost-effective solution that

helps you stay on top of escalating volumes, new NACHA rules, security and technology

upgrades, risk concerns and regulatory requirements. What do you choose? An expensive

in-house solution with heavy capital investment, or an outsourced solution that makes you

give up control and flexibility?

With eFunds, you have a superior

choice that opens up a whole new

world of ACH possibilities. eFunds

ACHPS gives you all the control of an

in-house operation, but with an

advanced, high-speed, continuous

flow architecture. You stay in control.

We handle the processing. No more

workflow bottlenecks. No more wor-

rying about whether you can keep up

with demand. Plus, eFunds ACHPS

gives you all the risk features and

security controls you need in an ACH

system for peace of mind.

The solution is simple. eFunds for

ACH — and everything EFT.

Discover how eFunds can help you reduce the cost and risk of ACH processing:

Register today to access the archived version of the ACHPS Webcast with Wells Fargo and City National BankNeed a closer look at how ACHPS is helpingfinancial institutions today? Register foreFunds’ ACHPS Webcast atwww.efunds.com/achps

Contact eFunds TodayContact eFunds to get started with ACHPS. Web: www.eFunds.com/achpsEmail: achps@eFunds.comTelephone: 1-888-9eFunds, ext. 3

1

2

Is your ACH business growing?

Are you ready to meet the challenge?

© 2005 eFunds Corporation. All Rights Reserved 17

eFunds Global Outsourcing Solutions offer a range of options that span multiple business processes

Improving the back office —Outsourcing the right processes at the right time

18

Outsourcing, as many businesses know, hasmoved from a perceived “risky” option for lowering costs to a well-established, necessarymeans to improve process efficiency, customersatisfaction and remain competitive. The choiceto review outsourcing as a viable option is further reinforced by business challenges likeincreased competition, lower margins, compliance and regulatory mandates, and general business uncertainty.

Universally, renewed focus on risk management, corporate governance and capitalallocation means companies continue to look to outsourcing as a way to increase their overallreturn on investment while continuing to focuson their core competencies. Industry analystGartner Group expects the business processoutsourcing (BPO) industry to be a $77 billiondollar industry in North America by the end of2005, and suggests it will continue to grow at a five-year CAGR of nine percent. There is nodoubt about it — the BPO industry is making anindelible impact on global business, especiallyfor the financial services market.

Adding more value to every transactionAt eFunds, our mission is to make every transaction more valuable for our customers.Through risk management, global outsourcingand electronic payments initiatives, eFundshelps customers improve margins, increasecustomer satisfaction, and streamline processes.And outsourcing programs are a key way for

eFunds to help financial institutions, retailersand telecommunications companies meet theirbusiness goals.

In order to facilitate better transactionaccount management, eFunds Global Outsourcing offers flexible services tailored to meet the specific needs of our customers. We improve or re-engineer business processessuch as data application, marketing activities,transaction processing, account analytics, billingservices and retention strategies for businessesaround the world.

eFunds outsourcing initiatives also stream-lines transactions and payment processingservices for customers, such as reconciliationand merchant acquiring chargebacks. By employing an outsourcing strategy witheFunds, our customers improve process turnaround times and efficiency.

eFunds outsourcing staff is well trained and familiar with the entire client relationshipprocess; we are able to provide quick and effec-tive receivables management for our customers.

And, since eFunds has over 30 years domainexpertise in the outsourcing industry and yearsof experience within our target markets, we areable to add additional value by understandinghow to think like you think. We understandyour industry and your business, helping usanalyze the drivers motivating financial services.Through our outsourcing processes and domainexpertise, we are able to share new informationabout your customers and provide intelligenceto you that will help you win, keep and serveyour clients.

What to outsource and whenThe evidence to outsource is compelling: lower costs, improved quality, and streamlinedbusiness processes. But, businesses must intelligently face the challenge of identifying the right processes to outsource in order to deliver the maximum benefit in an appropriate timeframe.

For the most part, measuring one outsourcing process candidate to another hasbeen highly subjective guesswork. Many timesthe decision is made by committee, which,while democratic, is not the best way to ensurea successful initiative that delivers the desiredresults. Other times, senior management assignsthe task to an individual who must research thebusiness in order to make an assessment. The problem with this approach is that if thecompany has not outsourced previously, nosingle business unit wants to be the first andwill shy away from pursuing an initiative.

Businesses have a much better success rate if they approach the decision of what and when to outsource as a process itself, rather than a single event. Walking through awell-defined methodology not only saves timeand money, but also promotes program buy-inand ultimate success.

eFunds Process Readiness Index (PRI)Whether your outsourcing objectives are toreduce costs, improve quality or dramaticallytransform existing processes, eFunds GlobalOutsourcing can help determine an appropriateoutsourcing strategy. To help drive the internalbusiness analysis process, eFunds has developed Process Assessment and Analysis tools that identify those processes that are ripefor outsourcing.

eFunds Outsourcing by the numbers:• 4,500+ associates• Over 120 distinct business processes• Over 100 million back office

transactions / year• 40 million live calls / year• 13 global facilities• Nine service centers worldwide

Global Outsourcing Solutionsat a glance• 3rd largest BPO provider • World’s largest ATM outsourcing provider• Vertical expertise: FI, Retail and Telco

Is outsourcing for you? If you can answerYES to any of the following questions, youshould contact an eFunds Global Outsourcingrepresentative to discuss outsourcing options.

• Do you have well documented training and procedures for yourbusiness processes?

• Do you a have high volume of exceptionprocesses?

• Can your process activities be easily unbundled?

• Are your technology platforms disparateand not well integrated?

• Are your transactions repetitive and standard?

Call eFunds GOS at 888-9eFunds ext.4

Key industry trends:• One-third of the world’s FIs are

either near-shoring or offshoring(Celent, 2004)

• Increased defaults on credit cardbalances and checks are leading to the need for collection services for all industries

• Teleco trends include bundling ofservices, an increase in wireless data traffic and use of cable by voice customers (TIA, 2004)

This process, called the Process Readiness Index,analyzes and ranks five key areas including strategicdrivers, operational impacts, transition readiness,technology environment and automation/re-engineering. It also requires management-levelinvolvement and a set level of communicationbetween eFunds and its customer to ensure processes are properly explained and evaluated.

From this analysis, clients are provided with aroadmap of those processes that are ready to beoutsourced and those that are not well suited at the present time for third party assistance.

By examining your business and working in con-junction with your staff, eFunds is able to act as atrusted partner, making recommendations that workfor you and match with your corporate culture.

If you have questions about eFunds outsourcing services, please contact a representative at 1-888-9eFunds ext. 4.

eFunds FI domain expertise includes: • Retail banking• Card operations• ATM operations• Receivables management• Mortgage services• Investments and brokerage • Teleco services including: Wireless, ISP,

Local, Long-distance • Retail back-office

In order to further combat the rising risk ofdebit fraud, eFunds is deploying Fair Isaac’sFalcon™ Fraud Manager 5.1 solution in its dataprocessing centers.

eFunds’ implementation of the Falcon 5.1solution will be the first for Fair Isaac and isdesigned to help eFunds processing customersquickly identify fraudulent activities and takeimmediate measures to stop them.

The security of consumer account information has long been a core pillar ofeFunds’ corporate value proposition. With theincrease of fraudulent activities — especiallyidentity theft, which was noted in a 2004 ABADeposit Account Fraud Survey as the leadingthreat against the industry — becoming moreprevalent, eFunds is committed to taking actionto reduce the incidence of fraud loss for itsprocessing customers.

eFunds’ ongoing efforts to provide reliable,advanced processing solutions that help financial institutions efficiently automate payment transactions and fraud prevention is what led the company to expand its relation-ship with Fair Isaac and plan to deploy Falcon5.1. In particular, customers had to be able to respond to changing fraud patterns fasterand take advantage of more flexible ruleswriting capabilities.

“Our customers have expressed a stronginterest in a solution that accurately scales with their increasing transaction volumes andprovides more flexible rules capabilities, while

continuing to deliver the highest level of fraudprotection. We’re implementing Falcon 5.1 tohelp us address these needs,” said Rob Myhre,vice president of EFT processing at eFunds.

New Falcon 5.1 features that will assisteFunds in meeting the fraud needs of its processing customers include:

• An updated Application Program Interface(API) for custom designed features

• Rules Editor which eliminates the numberand length of rules

• New reporting technology for quick and easy data analysis and productivitymonitoring

• Redesigned case management system that lets users streamline case handling and decisioning and process more cases per hour.

• Highly flexible architecture that will easily integrate with future fraud analytic technologies.

“The fraud environment is constantlychanging and Falcon’s adaptability to thosechanges ensures that it will continue to delivergreat value to processors and card issuersaround the world,” said Sonja Schindeler, vicepresident of Fraud Solutions at Fair Isaac.

Implementing Falcon 5.1 into eFunds’payment processing data centers makes perfect sense for FIs using eFunds paymentprocessing services. By integrating core debitcard processing with the industry’s leadingfraud detection technology, customers can have greater confidence to meet increasedtransaction volumes in the future and significantly reduce financial losses due to fraud.

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

eFunds partners with Fair Isaac to enhance debit transaction fraud detection

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How does Falcon 5.1 IdentifyFraudulent Activities?• Sophisticated neural network models• Patented account profiling technologies• Flexible, user definable intelligent rules• Case management to analyze payment

card transactions for subtle signs of fraud

Fair Isaac at a glance:• NYSE: FIC• Founded: 1956• Falcon Fraud Manager protects 85%

of US credit card transactions• Fair Isaac FICO scores are the most

used credit bureau scores in the world• The top 10 US card issuers use FI fraud

detection• www.fairisaac.com

Falcon 5.1 is a good fit for eFunds customerswho have expressed a strong interest in afraud solution that accurately scales withtheir increasing transaction volumes andprovides more flexible rules capabilities.

V

V

eFunds Newswire

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eFunds Completes Acquisitionof Business Interests of IndiaSwitch CompanyMumbai, India, June 20, 2005 — eFundsCorporation today announced that it hascompleted the acquisition of current ATMmanaged services and payments processinginterests of the India Switch Company.

“The acquisition will leverage the global payments expertise eFunds hasaccumulated in products, platforms andservice delivery to bring competitive andinnovative solutions to the maturing Indianfinancial services industry,” said Atul Kun-war, managing director, eFunds India.

eFunds Corporation to AcquireWildCard Systems, Inc.SCOTTSDALE, Ariz., June 9, 2005 —eFunds Corporation today announcedthat it has signed a definitive agree-ment to acquire WildCard Systems,Inc., a privately-held provider ofprepaid and stored value solutions tofinancial institutions, retailers andother payment issuers.

The two companies signed adistribution agreement in Novemberof 2004 and have since signed twotier one financial institution dealsunder eFunds’ existing alliance withMasterCard International. The part-nership has also validated the marketdemand for prepaid payment products, andhas proven the Companies’ ability to worktogether to deliver an integrated debit andprepaid solution.

“We are excited to welcome WildCardto team eFunds — this is a natural fit,”said Paul Walsh, chairman and chief execu-tive officer of eFunds. “The complementarynature of debit and prepaid brings a pow-erful value proposition to the financialinstitution, retail and other issuer marketsserved by both companies. This acquisitionis an important step in the execution ofeFunds’ strategic plan to build breadth intoour electronic payments offering.”

Credit Union ServiceCorporation Selects eFundsDataNavigator Software forBack-Office ProcessingSCOTTSDALE, AZ, May 16, 2005 — eFunds Corporation today announced that CreditUnion Service Corporation (CUSC) hasselected DataNavigator(R) for Windows(R),eFunds’ open platform back-office manage-ment solution, for use at more than 630member credit union locations.

CUSC has also renewed its eFundsshared branching and gateway processingagreement for an additional three years, andcurrently licenses eFunds’ IST(R)/Switch

software to manage its next generationshared branching network. eFunds andCUSC will continue to work together toenhance the IST/Switch transaction processing solution, while ensuring ongoing business continuity through eFundsprocessing services.

eFunds Corporation Reports First Quarter 2005 ResultsSCOTTSDALE, Ariz., May 4 — eFunds Corporation today reported first quarter netrevenue of $114.2 million. This amountrepresents an 8% improvement over the netrevenues of $105.7 million reported by theCompany’s core operating segments duringthe first quarter of 2004. Overall, revenuesdeclined by 19% from the $140.9 millionreported for the first quarter of 2004 as a

result of the sale of the Company’s ATMdeployment business in November 2004.

Operating income increased to $16.8million, or 15% of net revenue, as comparedto operating income of $14.0 million, or10% of net revenue, reported in the firstquarter of 2004. First quarter net incomewas $13.2 million, or $0.26 per dilutedshare, compared to net income of $9.4million, or $0.19 per diluted share, reportedfor the same quarter in 2004.

The Company also announced that ithas completed its $100 million share repur-chase program. The Company bought backapproximately 4.6 million shares pursuant tothis initiative.

eFunds to Acquire Business Interests of India Switch CompanyMUMBAI, India, April 5, 2005 — eFundsInternational India Pvt. Limited, a subsidiaryof eFunds Corporation today announced thatit has signed a definitive agreement toacquire the current ATM managed servicesand payments processing interests of IndiaSwitch Company from HMA, a privately-heldgroup of companies with experience ofproviding end-to-end solutions for debitservices to the Indian retail banking sector.The initial cash purchase price is $17.5million, subject to working capital adjust-

ments and holdback arrangements. An addi-tional payment may be made approximatelyone year following the closing if the businessachieves certain revenue objectives duringthat period. The maximum amount payablein respect of this earn-out is $2.5 million.

eFunds Reports Fourth-Quarterand Full-Year 2004 ResultsSCOTTSDALE, Ariz., Feb 23, 2005 — eFundsCorporation today reported its financialresults for the fourth quarter and full-yearended Dec. 31, 2004.

For the fourth quarter of 2004, the Companyreported net income of $11.3 million, or$0.22 per diluted share, compared with netincome of $10.1 million, or $0.21 per dilutedshare, in the fourth quarter of 2003. Operat-ing income was $16.4 million, or 12.6

percent of net revenue, compared to operating income of $13.0 million, or 9.6 percent of netrevenue, reported in the fourth quarterof 2003. Net revenue decreased $4.9 million to $130.5 million in thefourth quarter of 2004, compared tonet revenue of $135.4 million reportedin the fourth quarter of 2003. Thisdecrease was principally due to thesale of the Company’s ATM portfolio in November 2004.

Full-Year 2004For the year ended Dec. 31, 2004, net

income increased to $40.8 million, or $0.83per diluted share, compared to net incomeof $28.9 million, or $0.61 per diluted share,reported in 2003. Reported operating incomeincreased $19.8 million to $58.5 million, or10.6 percent of net revenue in 2004, ascompared to operating income of $38.7million, or 7.3 percent of net revenue,reported in 2003.

eFunds recorded net revenue of $552.1million for the year ended Dec. 31, 2004,compared to net revenue of $532.1 millionrecorded in 2003.

eFunds Corporation to AcquireClearCommerce CorporationSCOTTSDALE, AZ, Jan. 12, 2005 — eFundsCorporation announced that it has signed a definitive agreement to acquireClearCommerce Corporation, a privately-held provider of fraud prevention andpayment processing solutions for ‘card-not-present’ (CNP) transactions, including onlineand mail order/telephone order (MOTO)sales. The initial purchase price of approxi-mately $19.4 million will be paid in cash atclosing, which is expected to occur in thefirst quarter of 2005 subject to the satisfac-tion of customary closing conditions.

The ClearCommerce acquisition willstrengthen eFunds’ POS and online transac-tion processing capabilities and add a ‘CNP’

eFunds has won a contract to provide complete card processing services for theinternational retail banking subsidiaries ofSociété Générale, one of the largest financialservices groups in the euro zone.

eFunds will apply its 30-year history of US debit transaction processing knowledge, in addition to proven, open platform, international credit card acquiring expertise,to provide an integrated payments hub solution for Société Générale. Each of thebank’s subsidiaries will be offered full third-party processing services across thetransaction lifecycle, including ATM management, merchant acquiring, back office services and card management.

The bank, which serves more than 17million retail customers worldwide, will benefit from faster speed to market for new products and services, as well as the efficiencies resulting from processing on acommon platform.

The eFunds solution makes use of manycomponents used in the company’s owndata centres in the US, for example, the backoffice services provided by DataNavigator®.It also integrates to components of the bank’sown existing payments infrastructure. Inaddition, eFunds will deploy other softwareproducts, such as IST/MAS and IST/Clearing,to handle merchant acquiring activities.

“The integrated payments hub is a greatexample of how eFunds can combine its corecompetencies in payments and outsourcingto solve real business problems for largefinancial services organizations around theworld,” commented Kathleen Flanagan,senior vice president, eFunds International.“In the US, eFunds’ software supports over80% of domestic payments traffic and this,our first European processing deal, is anotherstep towards establishing our processingbusiness globally.”

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International Updatefraud prevention solution to its retail and financialservice offerings. It will also expand the Company’smarket footprint in the retail sector with more than140 new customers in seven countries. The com-bined entities will provide customers with acomprehensive perspective on fraud detection,based on data from both ClearCommerce’s FraudDetect(TM) database and eFunds’ DebitBureau(R) database.

eFunds’ acquisition of ClearCommerce wasfinalized on January 31, 2005.

United States Postal Service SelectseFunds’ EFT Software SolutionSCOTTSDALE, AZ, Nov. 17, 2004 — eFunds Corporation announced that the United StatesPostal Service (USPS) has selected eFunds’ opensystems electronic payments software for use atmore than 33,000 locations and 70,000 point-of-sale (POS) devices nationwide.

The eFunds solutions, which are key components of the company’s CONNEX OpenEnterprise next-generation payments platform, will support postal customers’ ongoing purchasesof USPS products and services with either a creditor debit card, regardless of whether they purchaseproducts/services at a post office branch locationthrough a POS device, at a self-serve kiosk or viathe Internet.

eFunds Announces CONNEX OpenEnterprise for the FinancialServices IndustrySCOTTSDALE, AZ, Nov. 16, 2004 — eFunds Corporation announced plans to introduce a next-generation version of its CONNEX™ EFT software platform.

CONNEX Open Enterprise™ (CONNEX OE) willbe an integrated suite of solutions for paymentdelivery, back-office operations, authorizationservices and card management — all based on ashared, flexible, integrated solution deliveryframework. CONNEX OE will support all existingpayment channels, devices and types, and willprovide a flexible foundation that promotes therapid introduction of new payment services at every point in the payment transaction lifecycle.

eFunds and WildCard DeliverCombined Stored Value Solution SCOTTSDALE, AZ, Nov. 16, 2004 — eFunds Corporation announced a partnership with WildCard Systems, a market leader in the deliveryof stored value/prepaid card solutions, to combineeFunds’ EFT debit product suite with WildCard’sindustry-leading stored value/prepaid card capabilities to offer a single source for both EFTand stored value processing capabilities. Throughthe partnership, customers are able to leverage the combined EFT and stored value solutions in a single system from eFunds, providing a single point of settlement and reporting that will supportvirtually any type of stored value program. V

Switching on in IndiaIn line with CEO Paul Walsh’s stated objectiveof growing the international business, in Aprilwe announced that eFunds would purchasethe business interests of India Switch Compa-ny (ISC), an organisation with considerableexperience of providing solutions to thedomestic Indian banking market. ISC providesend-to-end solutions for ATM Managed Ser-vices, as well as operating two paymentswitches. This acquisition demonstrateseFunds’ commitment to growing India as amarket, as well as using its skills to supportBusiness Process Outsourcing activities forclients in the US and UK. It also completesanother step in establishing a global process-ing model for electronic payments.

Turning the spotlight on card crimeNews that a well-known TV star had fallenvictim to bank account fraud perpetrated by a UK-based call centre employee was the lateststory to bring the mushrooming fraud problemback into the public eye. Not long afterwards,Scottish police arrested 28 people in connectionwith a £2m fraud that affected 100 individualbank accounts. So, from the perspective of theInternational team, Q1 2005 was perfect timingfor eFunds to acquire ClearCommerce, a leading risk management company whose offerings complement our existing paymentprocessing solutions.

Internationally, risk management is oneveryone’s agenda as consumer concern growsover the integrity of personal account informa-tion and the security of cardholder-not-presenttransactions. Globally, banks know they have asignificant problem with fraud and they need tobe proactively putting measures in place toprotect the merchants and consumers whotransact business through them. In the UK,66 per cent of consumers refuse to make onlinetransactions for fear of credit card fraud, accord-ing to a survey conducted by ClearCommerce.Who can blame consumers for their reluctancewhen, according to the Association for PaymentClearing Services, credit card fraud in the UKtopped £500m in 2004, up 20 per cent from theprevious year. Meanwhile in Australia, creditcard skimming is an AUD100m per year crime,according to the latest issue of ePaynews.com.

The addition of the ClearCommerce solutionset to our portfolio will allow the eFunds Inter-national team to help our customers addressmore of the issues around fraud management.Banks have been preoccupied with the roll-outof chip and PIN at point of sale in some coun-tries, but are now realising that if that initiativeis successful it may well drive more fraudstersonline. The criminals are usually one step aheadof the game, but already the phone calls aretelling us there’s more demand among merchantacquirers and retailers for our comprehensiverisk solutions.

eFunds to provide card processing services for Société Générale Group

V

On April 1, 2005, eFunds officially launched thenewest version of its open platform payment switching solution — IST/Switch 7.5.

If you are interested in upgrading to IST 7.5,please contact your eFunds account manager formore information. If you are a current IST customeror partner, you can access the complete 7.5 ReleaseNotes on the eFunds Customer and Partner websites. Please refer to the end of this article for regis-tration and access instructions.

If you hold a current software support or maintenance agreement, you may also request the7.5 upgrade through our standard software releasenotification form, also found on the Client and Part-ner web sites.

Major highlights of IST/Switch 7.5 include:

Software Development Kit (SDK) In order to provide IST customers with more flexibility to customize their implementations with minimal risk, eFunds has recently introducedthe IST/Switch Software Development Kit (SDK).eFunds has created a number of business modulesthat group logical IST/Switch processing functionsand message types together. Currently availablebusiness modules include:

• DCS SDK — Debit/Credit Subsystem functionality

• ISTAuth SDK — Transaction authorizationfunctionality

• TSF SDK — Data transfer functionality

Configuration ServicesConfiguration Services is a powerful, yet easy to useconfiguration tool. Configuration Services lets youfocus on what is really important — the businesslogic of your application.

Configuration Services is a client-server application that consolidates configuration data fromdifferent sources to generate a unique configurationsetup. The services also allow product administra-tors to upgrade and product developers to extendthe configuration setup.

The GUI client is the front-end environment createdto interface with the configuration server. The GUIclient allows users to view, update, and save the usersetting configuration repository, while the ConfigurationServer handles the repository of configuration parame-ters. It manages the configuration repository, handlesGUI client requests, manages user sessions, and com-municates with the Entitlement and AuthenticationSubsystems to ensure security.

Balancing & ReconciliationBalancing and Reconciliation is the process of accumulating transaction totals and synchronizingbalances between different systems.

The Balancing and Reconciliation Subsystem ofIST/Switch accumulates balances for an institutionand reconciles them when an event for cutover andreconciliation is initiated. This event is configured inthe subsystem. The reconciliation process involvesretrieving the data and sending it back to the net-work formatter. The network formatter then formatsthe messages and routes them accordingly.

Transactions are generated and introduced to thesystem from several entry points like ATM, POS, ornetworks. Each transaction accumulates separatebuckets for different amounts that are present in thetransaction. Multiple accumulated records may occurper institution and per transaction.

Totals are accumulated and segregated from the transaction information based on the type of

transaction, device, and institution (acquirer,issuer or both).

To access the Release Notification Forms andIST/Switch 7.5 Release Notes, please visit the applicable eFunds IST Client or Partner Web siteshown below:

Client Web URL:www.oasis-technology.com/clientweb

Partner Web URL: www.oasis-technology.com/channelweb

SDK Benefits• Customizable — IST/Switch can be customized

on many levels — the SDK gives users theoption of extending or replacing applicationbusiness logic. The SDK provides a deeper level of customization flexibility,complementing other means of customization,including configuration/database attributes andcallback functions.

• Object oriented — Flexible business objectsare superior to conventional program-basedapproaches, providing reusable and extensiblecomponents, and abstract design and robustapplications.

• Backward compatible — Maintainscompatibility with previous versions of ISTthrough the reuse of existing functions —preservation of formatting, device driver andnetwork formatting interfaces.

• Flexible — Distinction between messageheader and body enables the framework toprocess any type of financial or non-financialmessage, such as gift card, loyalty, andaccount updates.

IST/Switch 7.5 EnhancementsATM• Support for Bunch Notes Acceptor (BNA) — The

ATM Subsystem now supports BNA for both NCRand Diebold. These devices allow customers todeposit notes in bunches which are indivuallyauthenticated.

• Support for RSA initial key download — NativeSupport is provided for both Diebold and NCRInitial Encryption Key Downloads. Public KeyCryptography is used to remotely load crypto-grahic keys into the ATM, reducing the need forservice personnel to provide field support.

• Support for electronic journal upload —Provides the ability to upload the ElectronicJournal on the ATM to the server for furtheranalyisis by operations personnel.

Compliance• Support for Visa 9620 messages• Support for Visa CISP/AISP• Support for EMV 2000• POS enhancement for MasterCard proximity

cards• Support for Bancnet updates: MasterCard

Electronic Acceptance Indicator, On BehalfServices

• Europay authorization: MasterCard ElectronicAcceptance Indicator, Chip to Magnetic StripeConversion Indicator, AVS Service

Additional Features• AMEX Authorization Interface• IST/POS integration with CONNEX™• RSA support for the PKI security server• Re-implemented Balancing and Reconciliation

for DCS• Enhanced voice authorization• Support for Processor Business Day

IST/Switch Release 7.5 – Now AvailableNew version of IST includes Software Development Kit (SDK) and key functional enhancements

22

IST Configuration GUI — The IST Configuration GUIprovides convenient, flexible screens that enable operatorsto generate a unique configuration setup.

V

Financial institutions (FIs) wrestle with challenging growth strategy issues on a day-to-day basis. Decreasing revenues, shrinkingmargins and increasing costs mean that back-office functions — customer service, exceptionitem processing and transaction reporting — are top priority concerns for the typical FI.

Rising costs are being driven by a variety of factors:

• Continued reliance on multiple, disparate or legacy payment systems

• Inefficient, labor intensive back-office operations

• Increased need for fraud analysis and compliance reporting

According to a 2004 McKinsey & Companyreport, the share of back-office costs is almost50 percent of total payment costs. Financialinstitutions, and often credit unions in particular, must pay close attention to methodsto reduce these ever-increasing costs.

The CUSC NeedCredit Union Service Corporation (CUSC) is the largest shared branch network in the UnitedStates, with over 630 member credit unionsacross the country. Its mission is to enable creditunions to provide members with transactionservices at multiple locations. Quite literally,through its network, a participating membercredit union can offer its customers access to630 different locations.

In order to service member credit unions insuch an innovative manner, CUSC continuallystrives to improve efficiencies and streamline its operations. CUSC management identified one particular enhancement opportunity —streamlining the flow of back-office data and they waymember credit unions weresubmitting adjustments.

When a member credit unionhad an adjustment, it would faxor relay that adjustment toCUSC, where employees wouldmanually enter the data into itsback office system. This manualprocess was not only laborintensive and potentially error prone, butalso held up settlement to the member.

Once a decision was made to streamlinethis process, it made sense that CUSCwould turn to its trusted partner, eFunds,for a solution.

CUSC and eFunds CorporationFor over 12 years, eFunds has provided sharedbranching and gateway processing services to CUSC. Additionally, in 2003, CUSC beganusing eFunds’ IST®/Switch software in order to manage its unique, next generation sharedbranching network.

In order to improve efficiencies related tosettlement and exception processing, CUSCrecently selected eFunds’ DataNavigator® for Windows® open platform back-office management solution for use at more than 630 member credit union locations. WithDataNavigator, CUSC permits its member credit unions to enter their own settlement

and exception data into the CUSCback-end system. CUSC can nowmanage EFT data in real time,

avoiding end-of-day batchbottlenecks for settlementand report processing.

DataNavigator wasdesigned to work for FIs running their ownprocessing software oroutsourcing to a thirdparty provider. Since

CUSC already had such a long-standing, trusted processing history with eFunds, it made sense

to implement an integrated software and processing solution. CUSC president andCEO, Carroll Beach said that his company’s

approach, “combines the best of eFunds’ back-office and transaction switching software withits world-class processing services for a flexible,scalable single-source solution that providesCUSC members a better, faster, more cost-effective solution to their back office operationsand transaction needs.”

The CUSC integration marks the first Windows implementation of eFunds’ DataNavigator back-office software for an eFundsIST/Switch customer. “This demonstrates ourcommitment to delivering true open solutionsthat work together seamlessly with our process-ing services,” said Rahul Gupta, senior vicepresident, Payment Account Solutions eFundsCorporation.

Rewards for CUSC MembersEach component of the eFunds/CUSC solution— DataNavigator, IST/Switch software and EFTprocessing — are key components of the eFunds’CONNEX Open Enterprise™ next generationpayments platform. Using DataNavigator onWindows for the back office, CUSC can:

• Increase responsiveness to customer service inquiries

• Enhance exception item processing

• Provide additional tools that enable credit unionmembers to research and report on theircustomer transactions

• Provide greater control, quicker settlement andexception processing to member credit unions

• Reallocate staff from manual data entry work tofocus on new revenue streams

And since CUSC also runs its shared branch-ing network through a flexible combination ofeFunds software and processing services, it canavoid costly system and vendor conversions asbusiness needs expand in the future.

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Building on an established relationship, CUSC introduces DataNavigator on Windows for back office data management

eFunds and CUSC at a glanceeFunds Products/Services: • DataNavigator® on Windows®• IST®/Switch• EFT Processing

Benefits of IntegratedSoftware/Processing Solution:• Scalable• Single-source• Provides CUSC members better, faster,

more cost-effective solution to their backoffice operations and transactionprocessing needs

About CUSC• Headquarters: Duluth, GA• 630 member credit unions across

United States• 40 million transactions / year• Mission: To enable credit unions to

provide their members with transactionservices at multiple locations

• www.cusc.net

V

DataNavigator on Windows• A comprehensive software solution that

enables real-time EFT data managementand customer support.

• Helps customers gain better control overinformation coming from their ATM and POS locations

CUSC Results with DataNavigator on Windows• Increased responsiveness to customer

service inquiries• Enhanced exception item processingΩ• No end-of-day settlement bottlenecks• Tools to enable members to research and

report on their customer transactions• More efficient use of CUSC staff, which

can now focus on new revenue streams

Integrated software/processing solution meansbusiness benefits and flexibility for CUSC

eFunds Canada Corporation 20 York M

ills Road, 4th Floor, Box 700 Toronto, Ontario, CanadaM

2P 2C2

ww

w.efunds.com

4604571

processors, particularly in the Tier I category,are looking for ways to streamline theirpayments infrastructure to accommodate theintroduction of new payment types, as wellas significant volume increases. Within anend-to-end processing solution, this wouldinclude integrated support for debit, creditand stored value card products, enabling FIsto streamline internal infrastructure, increaseback-office efficiency and reduce their over-all cost of transaction processing.

Internationally, we continue to see U.S.players getting in the game through ongoingacquisition activity, creating even strongercompetitive dynamics in key markets likethe EU. With the coming rollout of EMV inseveral regions, fraud management andsecurity are top-of-mind, priority items thatare driving significant investment in smartcard infrastructure and fraud managementsolutions. With eFunds deals like SociétéGénérale, we are also seeing increasedappetite in the Tier I space for comprehen-sive solutions that include processing formultiple product lines — merchant acquir-ing, credit and debit — combined withsupporting back-office services.

eFunds’ investment in the processingbusiness — international and beyondAt eFunds, the growth of our business isgood news for every customer. As we investin the processing infrastructure that willultimately help us to deliver more compre-hensive solutions to customers in theFinancial Services and Retail sectors, we’remaking an increasingly robust set of servic-es available to all of our existing customers.

To meet the parallel demands of existingcustomers and new business, our focusremains on key customer delivery, supportand execution — particularly strong atten-tion to service levels and managementreporting — as well as the launch of ourinternational processing business.

To support our international processinglaunch, we are leveraging many of ourexisting debit card processing capabilities,coupled with our IST® software expertise inthe credit card and merchant acquiringspace. These enhancements will enable usto deliver the same set of credit card/mer-chant acquiring services to our U.S.customers, using the same core eFunds datacenter expertise that drives our customers’debit businesses. In addition, our interna-tional customers will also be able to

leverage our advanced debit card manage-ment tools and gateway products. Overall,this will lead to processing service levelenhancements spanning a wider spectrum ofthe transaction processing lifecycle.

The big three — highlights of our 18-month rolling product planIn addition to key enhancements like Falcon®5.1 to manage PIN and signature debit cardfraud, and “Dream Miles” to drive usageand customer retention, we are focusing onthree key initiatives to meet strong customerdemand:

Stored Value/Prepaid

Our acquisition of WildCard has given usan immediate entry into the stored valuemarket, and there is strong demand fromour franchise of 9,000 financialinstitutions for turnkey, market readyprepaid programs. We will continue tofocus on the integration of WildCard’s stored value issuing,processing and program managementexpertise to further support our globalcustomer base.

Credit Card

Through the implementation of newcustomer projects and the integration ofour IST credit card acquiring products inour data centers, we will provide fullcredit card processing services — rolledout first to the international market, andsubsequently to the U.S.

Merchant Acquiring

Further leveraging the strong merchantacquiring solutions, IST®/MAS and IST®/Clearing, we will expand ourprocessing services to include full supportfor merchant acquiring activities includingtransaction qualification, merchantpricing, fee billing, and settlement.

Beyond specific product rollouts, we arealso investing in more forward looking prod-uct planning and enhanced communicationto our customers. Ongoing enhancements toour customer touch points, including moreconvenient, user-friendly web services, willalso be a continuing focus to add more valueto the customer experience and encourageflexible self-service support.

For you, our eFunds customers, we lookforward to showing you how you can takeadvantage of these new services andenhancements in the coming months.

Sincerely,

Rob MyhreVice President, Processing Products eFunds Corporation

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