September 2002

A publication of the PULSE network

SM

Introducing PULSE Online Internet Banking

cost effective Internet solution for community banks,
Service The
credit unions and thrifts
O

Visit us at www.pulse-eft.com

n September 4, 2002, PULSE

announced the introduction of PULSE
Online, an Internet banking service
developed to meet the needs of small-tomid-sized member financial institutions
the community banks, thrifts, and
credit unions that make up
98% of PULSE membership. Many of the solutions
available to members today
are costly, offer limited
functionality, cannot be
customized to member
needs or provide marginal
customer service. PULSE
developed the PULSE
Online service with the aim
of providing a complete
software solution and
ongoing service program
that would enable members
to pursue their Internet
banking strategies with the
same confidence and
reliability that they manage
their ATM/debit programs
today. Expanding into
Internet banking is a natural
extension for PULSE, which
has strong core competencies in both
transaction processing and service bureau
operations. PULSE Online enables
PULSE to apply its strengths in managing security, reliability, real-time
interfacing and batch file transmission to
web-based software and systems.

PULSE Online will offer retail and

commercial banking packages that
include pay anyone bill payment as a
standard feature. The PULSE Online
retail banking package includes up to six
months of account history retention,
account summary, transaction detail,
transfer funds, stop payment and webbased customer service tools. The
PULSE Online commercial cash
management package includes ACH
origination, wire transfer, EFTPS tax
remittance, and enhanced multi-level
security administration. In addition, a
number of optional services and
enhancements are supported including
additional account history, check
ordering, credit card account data
integration, check image integration,
brokerage, wireless banking, online
lending origination and web site design.
The PULSE Online solution is powered
by eCommLink, a Houston-based
payments company, which will perform
ongoing product development and
technical support.

PULSE Online offers members

the following benefits:
PULSE Account Management

PULSE account managers implement,

train and support every PULSE Online
member institution. As a financially
strong and trusted electronic banking
service provider to financial institutions
for over 21 years, PULSE is an ideal
electronic payments partner.

Fast, Turnkey Implementation

PULSE Online supports both batch and

real-time modes with standard implementation time frames of 30 to 45 days
that can accommodate quicker implementations based upon the members
needs. PULSE Online can interface to
any core processing system.
Low Upfront Fees

PULSE Online charges set-up fees that

are lower than comparable alternatives.
Until the end of 2002, PULSE members
may choose to defer a large portion of
the set-up fee to monthly payments over
the life of the agreement.
Greater Customization and Flexibility

PULSE Onlines software is flexible

enough to support free initial and
ongoing customization in graphics and
text as desired by the member.
Advanced Functionality & Technology
Road Map

PULSE Online supports advanced

Internet banking applications. The
software continues to be enhanced
following a technology road map which
ensures that PULSE Online is always
ready to support client needs.
Members may access the PULSE Online
product demo at pulseonline.net. For more
information on PULSE Online, call
George Danforth at 800/420-2122,
ext 149.

Switch Update Texas

Platform

struggle is underway that

ultimately could affect the profitability
of every one of PULSEs 3,700 member
institutions. The struggle is over who
will have the greatest influence over the
operation and pricing associated with
consumer payments. Three parties are
vying for control of the payments
infrastructure the financial industry,
third party payment providers and
merchants. The latter, particularly the
Stan Paur
largest merchants, argue they lack a voice
in the rules and pricing of electronic
payments. These retailers represent a
powerful group. They have enjoyed some
success, particularly in the area of POS
debit, in cajoling or brow beating third
party merchant acquirers to sell access to
the financial industrys databases
significantly below an institutions cost.
This fight over who controls
electronic payments is one the financial
community cannot afford to lose.
Merchants who claim they want control
are actually saying they want control
over a critical element of a financial
institutions revenue stream. In the end,
it is arguable that anyone really controls the payment system. The financial
industrys influence of payments is
undeniable. The challenge for both the
financial community and merchants is to
find a balance between the cost of
payments and the value of electronic
authorizations.
Discussions with some merchants
over this issue often become overheated. PULSE believes that the debate over the
levels of payment to issuers for electronic access should focus more on the rationale
behind the payment than on control. As an industry, we need to do a better job of
conveying the logic and justification to retailers behind payment charges. While a
small handful of the merchant base will never want to pay anything for an electronic
payment, the overwhelming majority of merchants will listen and accept payment
costs if presented and justified properly.
On an individual institution level, you can help in strengthening the financial
communitys position relative to influencing the level of fees and policies relative to
electronic payments. How? Simply align your institution with financial industry
owned networks operated by PULSE and the credit card associations. Aligning only
with industry owned organizations creates a critical mass of card bases that strengthens the bargaining power of the financial community. Publicly traded, non-financial
institution owned networks must serve two masters, both retailers and issuers.
Satisfying the desires of both parties is an inherent conflict. One need only look at
the current POS pricing of these organizations that is illogical, indiscernible and
discriminates between both financial institutions and retailers to appreciate the
difference in philosophy and benefits to the financial industry.
In the end, allying with financial industry networks is the best way to insure that
the financial industrys influence over the payments process is both strong and
assured.
As always, thank you for your support of the PULSE program.

The financial
industrys influence
of payments is undeniable. The challenge for
both the financial
community and
merchants is to find a
balance between the
cost of payments and
the value of electronic
authorizations.

he migration to PULSEs new

switch provider continues to move
forward toward the completion date in
July 2003. As of October 1, approximately 20% of PULSEs direct connections will be implemented and in
production on the frame relay network.
At the current rate, the frame relay
portion of the overall conversion is on
schedule. The scheduled completion
date for the frame relay network is April
1, 2003.
In August, PULSE held a very
successful Processor meeting in San
Antonio, Texas. The meeting generated
some very positive feedback in regards to
the frame conversion, especially from
those Processors that have previously
been through a
conversion.

Additionally, PULSE will be

conducting a software vendor meeting in
Dallas on October 30, 2002. This
meeting is designed to inform software
vendors and their customers of the
current frame conversion status and the
upcoming software certification and
testing that will take place in April and
May 2003.
PULSE and MasterCard are
currently working on the third release of
software, version 3.1. PULSE staff
members recently visited the MasterCard
development facility in Detroit and
enjoyed the opportunity to manipulate
and test the second version, 2.3, of the
software with excellent results.
Overall, the project is on schedule
and delivery dates are being met.
Look for future Switch updates
in PULSATIONS or on the web
site at www.pulse-eft.com.

PIX2 Connect Fees Lowered

Additional Enhancements Made to the System

ast year, PULSE made a commitment that a reevaluation of the PIX2

connect fees would be made within one
year of system implementation. As a
reminder, the PIX2 system has been fully
operational since October 2001 and may
be accessed via dial up through local or
toll-free number access points.
For the past few months, the PIX2
Steering Committee has been reviewing
the connect fees and the decision has
been made to lower the connect fees to
$.10/minute from the current $.30/
minute. The new rate of $.10/minute
represents a 67% reduction in cost!
The new $.10/minute rate will be
effective immediately and will apply to
all future and unbilled minutes.
In addition to the reduced connect
fee, PULSE continues to make significant enhancements to the PIX2 system.

The following features went into effect

August 1:
Faster retrieval of information.
Good faith acceptance/denial now
operates on the settlement date and not
the calendar date.
Addition of the Good Faith Item
disposition to the View Item Screen.
An Error in the transaction date
calculation for Batch Input has been
corrected.
PULSE continues to work to improve
the PIX2 product and its offerings.
Member input has been invaluable in the
effort to enhance the functionality of the
service and to ensure its user friendliness.
Any suggestions or recommendations you
may have are welcome and may be
directed to Rose Blount at 713/986-0123.

Sincerely,

Stan Paur
President & CEO
September 2002

New Strategic Alliance Formed Between

PULSE and Mosaic Software
PULSE members to receive discounts on terminal driving software

ULSE EFT Association has announced it has entered into a strategic

alliance with Mosaic Software, Inc. to
offer discounts on a comprehensive software package that
will allow PULSE member
financial institutions the
capability of performing inhouse terminal driving for
their ATMs.
Mosaics advanced EFT
Postilion software handles all
aspects of ATM transaction processing
and management. In addition to assuring
the maximum availability of ATM
services for PULSE members, the
Postilion system provides a highly
reliable, scalable and open architecture
that permits easy implementation of new
products to be delivered through ATMs.
Terminal driving is a critical
function for financial institutions, and

we are pleased to offer our members the

opportunity to take advantage of
discounts through this new strategic
alliance with Mosaic, said Leah
Huffmeister, Senior Vice President of
PULSE. This arrangement further
reflects PULSEs commitment to
delivering value added services to its
members by offering affordable solutions
from top industry service providers such
as Mosaic.
We are proud to be a part of this
strategic alliance with PULSE and to
provide quality ATM services for their
members, said Johann Dreyer, CEO of
Mosaic Software. It is well known
throughout the industry that PULSE is
committed to the highest quality
standards, and we look forward to
helping their members receive that same
level of quality service through our
Postilion software.

About Mosaic Software, Inc.

Mosaic Software is a global transaction processing software provider that
has developed leading edge solutions in
consumer transactions. Mosaic Software,
with offices in the U.S., U.K., Australia
and South Africa, supports clients
including financial institutions, retailers,
telecommunications operators, transaction processors, Internet service providers, card issuers and data processing
service providers. Mosaic is a market
leader in web-enabled ATM and prepay
software solutions, and its Postilion
product is currently installed in more
than 30 countries. Fore more information on Mosaic or its Postilion software,
please visit www.mosaicsoftware.com.

PULSE Provides Voice for Financial Industry

at Public Policy Forums

PULSEs Executive Vice President Cindy Ballard and Lee

Couch, public affairs counsel to PULSE, represent the
financial industry at a recent public affairs event.

www.pulse-eft.com

ULSE EFT Association continues to

provide an educational voice for the
financial industry.
Executive Vice President Cindy
Ballard represented PULSE at the
Annual Meeting of the National
Conference of State Legislatures in
Denver, Colorado July 22-27, and
at the Annual Meeting of the
American Legislative Exchange
Council (ALEC) in Orlando,
Florida August 6-10.
Ballard, along with Julian Read
and Lee Couch of GCI ReadPoland, public affairs counsel to
PULSE, met and conferred with
lawmakers and professional staff
members both at meetings and in
exhibit booths that PULSE sponsored at
both events.
PULSE has been a member of ALEC
since 1998 when it was instrumental in
gaining committee adoption of a
resolution opposing any state or federal
legislation that would ban or limit ATM

convenience fees or surcharges. That

ALEC resolution remains in force and
has been used as guidance by numerous
state legislatures when faced with such
proposed legislation.
Ballard noted that national public
policy meetings such as NCSL and
ALEC become more valuable to PULSE
membership as the network continues to
expand across the country.
We had the opportunity to meet
numerous legislators and acquaint them
with PULSE and the unique value that
electronic payments bring to their
constituents, she said, And, we are
finding more and more interest in
PULSEs distinction as the only major
network owned and controlled by the
financial industry for the financial
industry.
PULSE President and CEO Stan
Paur points out that public policy
meetings provide valuable opportunities
to educate lawmakers and staff members
regarding the electronic payments

industry and reflects the Boards

commitment to maintaining a pro-active
communications stance.
We know we are succeeding when
we get more and more calls for information from state and federal officials as
well as the news media, he said.
PULSE has gained major national
media exposure in recent months, and
Paur is frequently called on by governmental authorities for his expertise on
electronic payments. He also receives
numerous requests to prepare publication articles and to speak to state and
national industry groups.

TechMecca 2002
The Technology Showcase features leading-edge
products and services from 250 technology and service
solution providers everything you need to stay on top
of the ever-changing financial services marketplace.

he financial industry will soon experience

TechMecca 2002, the premier technology
conference and expo for financial institutions.
The combination of informative general
sessions, nationally acclaimed speakers and an
exciting technology showcase make this the one
event you cant afford to miss.

Exhibitor Showcase Featuring More Than 250

Leading Solution Providers Under One Roof
Informative Technology Focused Breakout
Sessions
Dynamic and Influential Line-up of
Technology Leaders

Registration Information
By September 30
$395 per person for the full Conference and Trade Show
$250 for up to five individuals from the same financial institution
location to attend the trade show only

After September 30
$545 per person for the full Conference and Trade Show
$400 for up to five individuals from the same financial institution
location to attend the trade show only
For immediate registration,
call 866/505-1361 or visit www.techmecca.net.

September 2002

Exhibitors as of Press Time

AAA Custom & Electrical
Signs
A&E Business Products/
C & A Associates
ABC Coin Sorting
Counting Supply, Inc.
Absolute ATM Services
Absolute Financial
Equipment
ACOM Solutions Financial Documents
Division
Alpha Omega Laser
American Bank Systems
American National
Insurance Company
Amhurst Technical
Services, Ltd. Co.
APPRO Systems
ATM Ventures
AudioTel Corporation
Bank Design & Construction USA, Ltd.
Bankimage.com
Bankers Systems, Inc.
Bantek West, Inc.
BFS Services
BISYS
Brinks, Inc.
Building Committee, Inc.
Canon U.S.A., Inc.- Image
Filing Systems Division
Center for Financial
Training (CFT)
Certegy Card Services
CGI
CMC/FLEX
Computer Services, Inc.
Computer Services, Inc.
(CSI)
CO-OP Network
Core Data Resources
CoreTrac, Inc.
CoWWW Software, Inc.
Credit Union Journal
Credit Union 24 ATM/
POS Network
CUER - Credit Union
Employment Resources
Cummins-Allison
Corporation
Cypress Software
Systems, LP
DCI (Data Center Inc.)
Demo Teller System, Inc.
Didier Printing
Diebold, Inc.
Diversified Lenders, Inc.
EDS
Elan Financial Services

Federal Reserve Bank of

Dallas
First Horizon Merchant
Services
FISERV
FundsXpress Financial
Network
GALAXY PLUS Credit
Union Systems
Genpass Technologies
Glory (U.S.A.), Inc.
Golston Co.
Hamilton and Sullivan
Harland Financial
Solutions
HBE Financial Facilities
IBAT Credit Card
Program
Independent Bankers
Association of Texas
ICU Now, Inc.
Inlighten, Inc.
Instant Cash Services
Integrated Bank
Technology
InterCept
InterCept Output
Solutions
IPS - Sendero
Jack Henry & Associates
James Baker & Associates
John M. Floyd & Ass.
Jones Futurex
Lenders Insurance
Agency, Inc.
LendingTools.Com, Inc.
Lexcel Solutions, Inc.
Liberty
Magtek, Inc.
Marquis - The Centrax
Group
MasterCard International
McCoy Myers & Ass.
Metavante Corporation
Midwest Payment
Systems
Millennial Vision, Inc.
Mitek Systems, Inc.
Mosaic Software
MPA Systems, Inc.
MYCON General
Contractors, Inc.
MyDas Marketing, Inc.
Nearman & Associates,
CPAs, P.A.
Netzee
NewGround
Nicola Banking System
Online Resources
Corporation

Open Lending
PEMCO Technology
Services, Inc.
PHH Mortgage Services
Precision Computer
Systems, Inc.
Premium Armored
Services
Prism Processing Services
Professional Check
Systems
PULSE EFT Association
PULSE Online
RMA - The Risk Management Association
RSM McGladrey, Inc.
Rogers - Ford, LC
Safeguard Business
Systems
Shazam
The SLI Group, Inc.
Southwest Business Corp.
SWACHA - The Electronic
Payments Resource
SQN Banking Systems
Strunk & Associates, L.P.
Sunwest Document
Technologies, Inc.
Symitar, a Jack Henry &
Associates Co.
T.C. Computer Service
Texas Credit Union
League
Technique Data Systems
Tecniflex Inc.
Teledata Communications, Inc.
Tessereye, Inc.
The Woodlands Resort &
Conference Center
The Wright Consultants
TNB Card Services
Toll-Free ATM c/o Momentum Cash Systems, L.L.C.
TOTAL/1 Services
TransFund
USERS, Incorporated
USI Insurance Services of
Texas
Visa Debit Processing
Service
Western Reliance
Company
Xtria, LLC
Zions Bank
Zurich North America
Financial Enterprises

M&I Bank Promotes Enhanced Benefits to

its Customers

o acquaint customers with the

PULSE name following the merger of
PULSE and TYME, and to inform them
of the increased convenience of using
their ATM cards, M&I Bank
of Wisconsin included a
special promotional insert with
their August statements. The
insert proclaimed, Were
giving you more reasons to use
your M&I Bank Visa Check
Card (83,000 reasons, to be
exact). That happens to be the
number of additional ATMs
now accessible to bank
customers through the PULSE
network.
Our customers are
familiar with TYME, said
Becky Heins, Check Card

Product Manager for M&I Bank. The

name has been around for such a long
time that many of them refer to ATMs as
TYME machines. However, the PULSE
name is new to this area and we want to
make them aware of the enhanced
benefits they now enjoy as a result of the
joining of the two networks.
In addition to unlimited withdrawals
at M&I ATMs, bank customers also
enjoy free non-M&I ATM withdrawals
(in Wisconsin, the first four per statement are surcharge free). This means
greater convenience and access to more
than 83,000 ATMs nationwide for
holders of M&I Bank Visa Check Cards.
The statement insert also encourages
customers to visit the PULSE web site at
www.pulse-eft.com for additional ATM
locations.

Marshall & Ilsley Corporation, the

parent company of M&I Bank, is a
diversified financial services corporation
headquartered in Milwaukee, Wisconsin.
It was founded in 1847 when Samuel
Marshall arrived in Milwaukee by
stagecoach, bringing with him several
thousand dollars, a few years of business
experience and a dream that began in
space rented in a cobbler shop. When the
doors of Samuel Marshall & Co.
Exchange Brokers opened for business
that spring, Wisconsin was still one year
away from statehood.
Today, M&I Bank has the largest
presence in the state, with 214 locations.
In addition, M&I has 24 locations in
Arizona, 11 in the metropolitan
Minneapolis/St. Paul, Minnesota area, as
well as offices in Las Vegas, Nevada, and
Naples, Florida.

Annual PULSE Golf Tournaments

Prove Successful
Hanging out at hole #8 are (l-r) Kelly Reppen,
Tami Allison and Urum Urumoglu from the
University of Wisconsin Credit Union in
Madison, WI.

uring August, PULSE held two

golf tournaments for its members with
great participation at both events.
Attendees of these events found time to
network and enjoy healthy competition
at the beautiful Lake Wisconsin Country
Club in Prairie du Sac, Wisconsin and in
San Antonio, Texas at The Westin La
Cantera Resort Course.

PULSE would like to thank the following companies

for sponsoring these outings:
Wisconsin Tournament

San Antonio Tournament

Communication Concepts
Unlimited, Inc.
Diebold, Inc.
EFmark Service Company
EFT Source, Inc.
Elan Financial Services
MasterCard International
Metavante Corporation
NCR
SBC/Ameritech

Didier Printing
Diebold
InterCept
Mag-Tek
MasterCard
Midwest Payment Systems
Mosaic Software

(l-r) Ann Charney from Guaranty Bank in

Milwaukee, Tammy Smith and Jan Smalley
from Bank of Wisconsin Dells, enjoy a day on
the course at the beautiful Lake Wisconsin
Country Club.

PULSE Welcomes New Members

ANG Federal Credit
Union
Birmingham, AL

Carlsbad School
Employees Credit
Union

First National Bank

of Dana

Highlands
Community Bank

Dana, IN

Covington, VA

First National Bank

of Dwight

Liberty National
Bank

Dwight, IL

Longwood, FL

First National Bank

of Hartford

North Dade
Community
Development FCU

Carlsbad, NM
PULSE staff members Mary Roth (left) and Kim
Norton visit with Charles Runde from First
National Bank of Platteville, WI.

Americana National
Bank
Albert Lea, MN

Citizens Deposit
Bank & Trust

Oklahoma City, OK

Anheuser-Busch
Employees Credit
Union
St. Louis, MO

Community National
Bank

Hartford, AL

Monett, MO

Community One
Credit Union

Bank of
Wrightsville
Wrightsville, GA

www.pulse-eft.com

Belington Bank
Belington, WV

TIB-The Independent
BankersBank
Irving, TX

The Carthage Bank

Carthage, MO

Opa Locka, FL

GIC Federal Credit

Union
Euclid, OH

North Canton, OH

(l-r) Foursome participants include Mark

Loeffel, Mike Doyle, Jim Gullick and Andy
Doyle, all from Great Midwest Bank S.S.B. in
Brookfield, WI.

New Orleans, LA

Vanceburg, KY

Americrest Bank

Sewerage & Water

Board Employees
Federal Credit Union

Pen Air Federal

Credit Union

The First National

Bank of South Miami
South Miami, FL

Pensacola, FL

GTA Credit Union

Community State
Bank

Atlanta, GA

Norwalk, WI

Grand Bank

S & C Bank

WTNM Florist
Federal Credit Union

New Richmond, WI

Roswell, MN

West Michigan
Credit Union

Financial Advantage
Federal Credit Union

Heritage Bank, Inc.

St. Landry
Homestead Federal
Savings Bank

Homestead, PA

Burlington, KY

Opelousas, LA

Dallas, TX

Grand Rapides, MI

September
2002

SEMINAR UPDATE

lan now to take advantage of one or

more of the educational seminars that
PULSE offers its members. Some are
provided at no charge, others have
modest registration fees. For more
information, visit the PULSE website at
www.pulse-eft.com under the Members
Only section of the site.

Debit Card Security

Seminars

about recent developments related to

Debit MasterCard and Visa Check
Card debit card fraud. Attendees will
receive the latest information on evolving
trends in debit card fraud, particularly
during the introductory phases of
program implementation. Current
technologies and news on the latest offline debit fraud scams and how to
protect your institution from them also
will be covered.

October 22 - La Crosse, Wisconsin

October 29 - San Antonio, Texas

Debit Liability Seminars

Debit Card Security seminars are

designed to assist participants in
understanding effective risk management
practices and to keep them informed

Debit Liability seminars offer participants the latest information on Regulation E and other topics pertaining to
electronic banking services. Debit
MasterCard and Visa Check Card
rules regarding chargebacks also are
explained, as well as issuer responsibilities, zero liability issues and Internet
transactions.

October 10 - New Orleans, Louisiana

November 14 - Birmingham, Alabama

This December 4-6,

all roads lead to...
TechMecca 2002 Technology Conference & Expo
For information, call 866/505-1361
or visit www.techmecca.net.

PULSATIONS is produced monthly by

PULSE EFT Association. Please send
information for the newsletter to:
Alicia Biggs, Editor
PULSATIONS
600 Travis, Suite 4600
Houston, TX 77002
abiggs@pulse-eft.com
PULSATIONS is posted on the PULSE
website at www.pulse-eft.com

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STANDARD
U.S. POSTAGE

PAID
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2002 PULSE EFT Association

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