Online Resources Provides Banks And Credit Unions Entree
To Merchant Gift Card Market In Time For Holidays
Card HQSM Is First of Stored Value Account Applications
CHANTILLY, Va., November 14, 2006 – Online Resources Corporation (Nasdaq: ORCC), a leading provider of Web-based financial services, announced today the release of CardHQSM, an online gift card store that enables consumers to purchase retail gift cards through their secure online banking and bill payment applications. Available in time for the holiday season, the new service also provides Online Resources’ client financial institutions access to the $40 billion gift card market.
The first available service of its kind, Card HQ synthesizes two primary consumer payment platforms, the checking and card account, to create a virtual transaction account for the purchase and re-loading of stored value gift cards, which are provided in either physical or virtual form. Financial institutions receive fee income for the distribution and funding of gift card purchases, thereby monetizing their web channel.
Consumers simply log on to their financial institutions’ online banking web site and select a gift card from one of the nation’s leading retailers. Participating retailers include JCPenney, Marriott Hotels, SpaWish, and major coffee, electronics, restaurant and clothing retailers. Consumers enter shipping and personalization instructions, then the order is processed and the purchase amount is debited in real-time, without risk, from their checking account via Online Resources’ proprietary payments gateway. Other than paying for shipping fees, consumers get the Card HQ service free and the gift cards carry no expiration date.
"It was a natural next step to offer CardHQ to our customers, who are accustomed to looking to us for a majority of their online payments, and as their guardian of personal financial information," said Sherry Sitton, executive vice president of First Command Bank. "Beyond the potential fee income, we believe this secure, convenient service will enable us to deepen our relationships with our customers. CardHQ is ideal for our many active duty military customers, who are located all over the world and therefore particularly value the immediacy of online transactions."
“Our integration expertise across three major payment constituencies -- banking service providers, card issuers and billing merchants – enables us to deliver to our clients this new payment capability,” stated Matthew P. Lawlor, Online Resources’ chairman and CEO. “In addition to gift cards, Card HQ can potentially support providers of other prepaid and stored value card applications, such as virtual wallets, telephone and payroll cards. We are in a unique position where we marry the payment and distribution capabilities of both financial and commercial clients.”
About Online Resources
Online Resources powers web-based financial services for over 800 firms nationwide. It provides a suite of proprietary banking and payment services that are branded to its client financial institutions. The Company serves over 4 million consumer end-users and processes $15 billion in payments annually. Founded in 1989, Online Resources (Nasdaq: ORCC, Website: www.orcc.com) is a recognized leader in financial technology services
This news release contains statements about future events and expectations, which are "forward-looking statements." Any statement in this release that is not a statement of historical fact may be deemed to be a forward-looking statement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Specifically factors that might cause such a difference include, but are not limited to the Company’s: history of losses; dependence on the marketing efforts of third parties; potential fluctuations in operating results; ability to make and successfully integrate acquisitions of new businesses; potential need for additional capital; potential inability to prevent systems failures and security breaches; potential inability to expand services and related products in the event of substantial increases in demand; competition; ability to attract and retain skilled personnel; reliance on patents and other intellectual property; exposure to the early stage of market adoption of the services it offers; exposure to the consolidation of the banking and financial services industry; and additional risks and uncertainties discussed in filings made by the Company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the Company's Form 10-K, latest 10-Q, and S-3 as filed with the Securities and Exchange Commission. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.
Media Contact: Beth Halloran,
Director, Corporate Communications
703.653.2248
bhalloran@orcc.com
Investor Contact: Catherine Graham,
EVP & Chief Financial Officer
703.653.3155
cgraham@orcc.com
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