MasterCard and NYCE Enter Into Agreement

NYCE Corporation and MasterCard International have signed an agreement to bring enhanced neural network fraud prediction services to MasterMoney issuers that are processed by NYCE.

The service, called RiskFinder, is a neural network system developed by MasterCard and HNC Software. RiskFinder uses HNC's patented neural network modeling technology while leveraging the MasterCard Banknet global transaction processing network to predict and, ultimately, help to reduce fraud losses associated with credit and offline debit cards.

RiskFinder enables transactions to be "scored" based on cardholder patterns/behavior, existing patterns of fraud, and merchant trend data. The institution can establish a transaction score threshhold, and conduct supplemental review and cardholder follow-up on any transaction that scores above the threshhold. The RiskFinder system calls this process "case management."

For card issuers looking for a cost-effective alternative to the labor-intenstive demands of case management, a new MasterCard-driven case monitoring service for this fraud detection product has been established.

Through its work with NYCE, MasterCard has developed the Fraud Protection Center (MFPC). A card issuer can engage MFPC to handle all or a portion of the issuer's RiskFinder case management needs.

"Administrating the case management of a fraud protection service internally is a complex, 24x7 proposition for which many institutions just don't have the necessary resources or staff," said Michael A. Feliciano, vice president with NYCE. "We've partnered with MasterCard to offer NYCE clients a leading-edge protection service that suits their unique needs and doesn't require significant investment in technology or back-office operations."

Five NYCE clients have already implemented the RiskFinder service since the MasterCard/NYCE agreement was finalized just four months ago.

"MasterCard's relationship with NYCE has provided the kind of value exchange and innovation that is needed in the payments industry. By listening to customer feedback, MasterCard is able to provide its member banks with unique, customizable and, most importantly, money saving services that did not previously exist," said Michael Alliston, senior vice president, Security and Risk Management, MasterCard International.

About Mastercard

MasterCard International has the most comprehensive portfolio of payment brands in the world. More than 1 billion MasterCard, Cirrus and Maestro logos are present on credit, charge and debit cards in circulation today. An association comprised of 22,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories.

MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds.

With more than 18 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard card. In 1999, gross dollar volume exceeded US$727 billion. MasterCard can be reached through its World Wide Web site at www.mastercard.com.

About HNC Software Inc

Headquartered in San Diego, California, HNC Software Inc is a leading provider of predictive software solutions for service industries, including financial, insurance, telecommunications and e-commerce.

HNC's suite of predictive software solutions can provide real-time insight into customer relationships based on transaction-level data, helping business-to -consumer companies manage their relationships with individual customers.

By accurately predicting customer behaviors, these companies can create initiatives to mitigate risk and attrition; improve customer service; develop marketing programs to enhance profitability, and detect fraudulent customer transactions. For more information, visit HNC's Website at www.hnc.com or for the investor relations hotline, call 800-396-8052.

About NYCE

Headquartered in Woodcliff Lake, NJ, NYCE Corporation is one of the largest electronic payments companies in the U.S. The NYCE Network provides financial institutions and retailers with shared network services for automated teller machines (ATMs), on-line debit point-of-sale and electronics benefits transfer transactions.

Currently, the Network has 2,400 financial institution participants and services more than 45 million cardholders through 35,500 NYCE-branded ATMs and 215,000 point-of-sale retailer locations. The company processes nearly 77 million transactions each month.

In addition, NYCE Corporation provides financial institutions with real-time processing services that support ATM management and monitoring services, as well as debit card issuance and authorization solutions. With innovations such as SafeDebitTM, a PIN-secured debit payment solution, NYCE is a frontrunner in the payments industry. NYCE's Web site address is www.nyce.net.

Contact NYCE Corporation, Cheryl Calo, 201-476-5726, cheryl_calo@nyce.net or MasterCard International, Heidi Lowe, 914-249-6189, Heidi_lowe@mastercard.com.