ACI WORLDWIDE, INC.

ACI WORLDWIDE, INC.

Previous company name
TRANSACTION SYSTEMS ARCHITECTS, INC.
Name change date
7/25/2007
Company Overview
Transaction Systems Architects, Inc., now known as ACI Worldwide, Inc., is a publicly quoted company engaged in the development of e-payment and electronic funds transfer (EFT) software for companies around the world. The company was founded in 1975, when it began as a custom development firm. The registered business office of the company is located in Omaha, Nebraska.
The company’s software covers process transactions involving ATMs, credit and debit cards, home banking services, point-of-sale terminals, smart cards, and wire transfers. It also caters business consultancy and solutions, implementation services, education, extended services, project management, as well as sales and marketing support for ACI enterprise banker.
ACI Worldwide, Inc. is active and has operations, through its subsidiaries, in the United States, Malaysia, the United Kingdom, Japan, and Canada.
The company has strategic alliances with Diebold, Hewlett-Packard Company, International Business Machines (IBM), MasterCard Worldwide, Inc., Microsoft Corporation, NCR Corporation, Stratus Technologies, StrataSoft Sdn Bhd, Sun Microsystems, Inc., TeraSystem Inc, Visa International, and Wincor Nixdorf International GmbH.
Some of the company’s clients include Alliance & Leicester, CertaPay, Citizens Bank, Cumberland Building Society, Emporiki Bank, ING Bank and Postbank, National Australia Bank, Orange County Teachers Federal Credit Union, Siam City Bank PCL, Cadena Mexicana de Exhibiciуn (Cinemex), Giant Eagle, Shoppers Drug Mart, Bank of America, Raymond James Financial, Bangor Savings Bank, Commonwealth National Bank, and Investors Bank and Trust.
Business Summary
ACI Worldwide, Inc. (ACI) develops markets, installs and supports a range of software products and services focused on facilitating electronic payments. In addition to its own products, ACI distributes or acts as a sales agent for, software developed by third parties. The products and services are used principally by financial institutions, retailers and electronic payment processors, both in domestic and international markets. The Company also offers its customers a range of professional services, including analysis, design, development, implementation, integration and training. The services include implementation services, technical services, facilities management and ACI On Demand. On November 17, 2009, the Company acquired certain intellectual property, trade names, customer contracts and working capital of Euronet Essentis Limited (Essentis), a division of Euronet Worldwide, Inc.
Description and history
ACI Worldwide, Inc. (ACI) develops markets, installs and supports a range of software products and services focused on facilitating electronic payments. In addition to its own products, ACI distributes or acts as a sales agent for, software developed by third parties. The products and services are used principally by financial institutions, retailers and electronic payment processors, both in domestic and international markets. The Company also offers its customers a range of professional services, including analysis, design, development, implementation, integration and training. The services include implementation services, technical services, facilities management and ACI On Demand. On November 17, 2009, the Company acquired certain intellectual property, trade names, customer contracts and working capital of Euronet Essentis Limited (Essentis), a division of Euronet Worldwide, Inc.

The software products perform a range of functions designed to facilitate electronic payments. The products addresses three primary market segments: retail banking, including debit and credit card issuers; wholesale banking, including corporate cash management and treasury management operations, and retailers. The products cover four different domains within the payments business: Initiate, Manage, Secure and Operate.

Initiate Products

Within the domain, ACI has two products: ACI Enterprise Banker and ACI Global Banker. ACI Enterprise Banker is an Internet-based banking product for financial institutions including banks, brokerage firms and credit unions and can be packaged for small, medium and large business customers. The product provides these customers with electronic payment initiation capability, information reporting, and numerous other payment related services that allow the business customer to manage all its banking needs, through the Internet.

ACI Global Banker provides single-window access to corporate cash management, trade finance, foreign exchange services, reporting and data exchange. Global Banker supports single-window, Single Sign-On access to a bank’s corporate Internet banking platform. The enterprise-wide, multi-country, multi-language, multi-currency solution allows banks of all sizes to package products and services for different countries and segments or even individual customers from a single, flexible platform.

Manage-Retail Payment Engines

The retail payment engines are designed to route electronic payment transactions from transaction generators to the acquiring institutions so that they can be authorized for payment. The software often interfaces with regional or national switches to access the account-holding financial institution or card issuer for approval or denial of the transactions (authorization). The software returns messages to the original transaction generator, thereby completing the transactions. It can perform all of the functions necessary to authenticate, authorize, route and settle an electronic payment transaction, or it can interact with other systems to ensure that these functions are performed. Electronic payments software may be required to interact with dozens of devices, switch interchanges and communication protocols globally. The Company offers six retail payment engine solutions.

BASE24-eps is an integrated electronic payments processing product marketed to customers operating electronic payment networks in the retail banking and retail industries. The modular architecture of the product enables customers to select the application and system components, which are required to operate their networks. BASE24-eps offers a range of features and functions for electronic payment processing. BASE24-eps allows customers to adapt to changing network needs by supporting 12 different types of ATM and five different types of point of sale (POS) terminals, 48 interchange interfaces, and various authentication, authorization and reporting options and with acceptance formats enabling processing of transactions from sources, such as Internet banking, branch or mobile systems.

BASE24-eps uses an object-based architecture and languages, such as C++ and Java to offer a more flexible, open architecture for the processing of a wide range of electronic payment transactions. BASE24-eps also uses a scripting language to improve overall transaction processing flexibility and improve time to market for new services, reducing the need for traditional systems modifications. BASE24-eps is licensed as a standalone electronic payments solution for financial institutions, retailers and electronic payment processors transactions. On the HP NonStop platform, BASE24-eps uses NET24-XPNET, an ACI developed message oriented middleware solution.

ACI Retail Commerce Server is an integrated range of electronic payments products, which facilitates a range of capabilities, specifically focused on retailers. The capabilities include debit and credit card processing, automated clearing house (ACH) processing, electronic benefits transfer, card issuance and management, check authorization, customer loyalty programs and returned check collection. The Retail Commerce Server product line operates on open systems technologies, such as Microsoft Windows, UNIX and Linux, with the installations deployed on the Microsoft Windows platform.

BASE24 is an integrated family of software products marketed to customers operating electronic payment networks in the retail banking and retail industries. The BASE24 product line operates on the HP NonStop servers. The HP NonStop parallel-processing environment offers fault-tolerance, linear expandability and distributed processing capabilities. The combination of features offered by BASE24 and the HP NonStop technology are characteristics in high volume, 24-hour per day electronic payment systems.

BASE24 makes use of NET24-XPNET, an ACI developed message oriented middleware solution. It was developed specifically to take the BASE24 functionality to a new more flexible architecture, responding to customers’ ideas, as well as allow the functionality to be delivered on a range of hardware platforms. ON/2 is an integrated electronic payments processing system, exclusively designed for the Stratus VOS operating environment. It authenticates, authorizes, routes and switches transactions generated at ATMs and merchant POS sites. OpeN/2 is an integrated electronic payments processing system, designed for open-systems environments such as Microsoft Windows, UNIX and Linux. It offers a range of electronic payments processing capabilities for financial institutions, retailers and electronic payment processors. AS/X a product acquired in the eps AG acquisition, is an integrated electronic payment processing system designed for open-systems environments such as UNIX. It supports a wide range of electronic payments processing capabilities for financial institutions and electronic payment processors in Germany and Switzerland.

Manage

ACI Back Office Services are card issuing and merchant management solutions which have been successfully used by the payments industry. The products run on IBM System z, various Unix and Microsoft Windows servers. The products within back office services are ACI Issuer, ACI Acquirer, ACI Interchange, ACI Token Management, ACI Payments Manager, ACI Card Management System, ACI Smart Chip Manager and ACI Dispute Management System.

ACI Issuer is a modern card and account management system. It has been developed to support national, international, and global financial institutions. The system has full multi-currency, multi-product, multi-institution and multi-language capabilities. It manages card portfolios in different countries and for different issuers on a single platform and has been built to fully comply with EMV standards.

ACI Acquirer supports the full life cycle of merchant portfolio management, including merchant boarding, transaction acquisition, interchange fee qualification, settlement and statement generation. The system is enabled with the flexibility acquirers require for complex merchant portfolios.

ACI Interchange is the central monetary transaction manager, processing all incoming customer transactions and maintaining a central transactions database. ACI Interchange also manages the clearing and settlement communication with the major international payment schemes, ensuring compliance with Visa, MasterCard, American Express and JCB. The module can easily be adapted to manage clearing and settlement with additional networks such as domestic payment schemes.

ACI Token Management consists of the ANDiS suite of products from ACI’s partner Bell ID. The ANDiS Smart Card & Application Management System provides for central life-cycle management of smart cards and other tokens, as well as the management of the applications activated within the scheme. The ANDiS Key Management System facilitates the implementation of security concepts based on the generation, storage, recovery, import and distribution of cryptographic keys. The keys are used for encryption and decryption of data and for verification and authorization of trusted parties using digital certificates.

ACI Payments Manager is an integrated, modular software solution that automates the processing, settlement and reconciliation of electronic transactions, as well as provides plastic card issuance and account management. ACI Card Management System is a complete plastic card system for issuing cards, maintaining account information, tracking card usage and providing customer service. ACI Smart Chip Manager supports the deployment of stored-value and other chip card applications used at smart card-enabled devices. ACI Dispute Management System provides issuers the ability to work retail discrepancies caused by processing errors, disputes, charge backs and fraud.

The wholesale payments solutions are focused on global, super-regional and regional financial institutions that provide treasury management services to corporations. In addition, the market includes non-bank financial institutions with the need to conduct their own internal treasury management activities.

The wholesale payments solutions include processing, bulk payments processing, global messaging and Continuous Link Settlement processing, and are collectively referred to as the ACI Money Transfer System. The high value payments processing products are used to generate, authorize, route, settle and control high value wire transfer transactions in domestic and international environments. The ACI Money Transfer System product operates on IBM System p servers using the AIX operating system and communicates over networks using a range of messaging formats, including S.W.I.F.T., EBA, Target, Ellips, CEC, RTGSplus, Fedwire, CHIPS and Telex.

Secure

ACI Proactive Risk Manager (PRM) is a neural network-based fraud detection system designed to help card issuers, merchants, merchant acquirers and financial institutions combat fraud schemes. PRM operates on IBM System z, HP NonStop, Sun Solaris and Microsoft Windows servers. There are six editions of PRM, each of which is tailored for specific industry needs. The six editions are debit, credit, merchant, private label, money laundering detection and enterprise.

The ACI Automated Case Management System offers customers to automate activities and processes across the complete lifecycle of a case. Cases are created when fraud officers checking an alert within ACI Proactive Risk Manager identify fraud. The solution is a basic framework that defines processes for researching and resolving cases, including investigation resources, timeframes, escalation paths and alerts. The Automated Case Management System also acts as a central repository for case histories and resource activities to provide organizations with centralized auditing capabilities.

The ACI Automated Case Management System for Anti-Money Laundering reduces the need for internal resources to spend needless time on compliance requirements. The Automated Case Management System allows customers to automate the escalation and notification processing of potential non-compliance exposure. Since all activities and tasks are managed under the system from a process standpoint, it also provides the centralized auditing and reporting needs required for regulatory proof of compliance.

Operate Products

The Operate products provide specific technology extensions to augment the business services provided in the Initiate, Manage and Secure solutions. ACI Communication Services is a set of products, which enables applications to support legacy protocols, such as SNA and X.25, running over TCP/IP networks. It also supports hybrid networking environments, such as IBM’s HPR/IP. This set of products run on HP NonStop, IBM System z and Unix platforms.

ACI Communication Services – Network Express provides network communications and middleware capabilities to support legacy systems integration and connectivity. ACI Enterprise Security Services is a suite of security solutions, which secure access to systems and resources. The products run on the HP NonStop platform and were designed to take advantage of HP NonStop fundamentals.

ACI Web Access Services allows HP NonStop users to expose existing applications to peer systems as well as personal computer (PC) clients and Web browsers. Web Access Services supports new GUI client development, standard 6530 and 3270E terminal emulation or automated data stream transformation to give users a range of options for integrating NonStop services across the enterprise.

ACI Monitoring and Management is a proactive monitoring, alarm and dispatching software tool. ACI DataWise is a transactional data management solution, which allows high volumes of transactional data to be moved between Stratus VOS systems, across different platforms and between heterogeneous databases. ACI Simulation Services for Enterprise Testing (ASSET) is a simulation and testing tool, which allows companies involved in electronic payments to simulate devices and transactions, and perform application testing.

The Company competes with S1 Corporation, Fundtech Ltd, Fiserv, Inc., Intuit Corporation, Clear2Pay, OpenWay, Tieto Enator, Total System Services, CSC, Aleric Technology Inc., Distra Pty. Ltd., Opus Software Solutions Private Limited, First Data Corporation, Fidelity National Information Services, Inc., Atos Origin S.A., Euronet Worldwide, Inc., Visa, MasterCard, Fair Isaac Corporation, Norkom Technologies, Actimize, Inc., SAS Institute, Inc., Fiserv, Inc., Fortent Inc., HP, IBM and Oracle.

Began as a custom development firm

Business Line
Engaged in the development of e-payment and electronic funds transfer (EFT) software for companies around the world
Subsidiary
ACI (BRASIL) LLC
Advisor
DELOITTE & TOUCHE LLP
IPO date
3/1995
US SIC Code
7372
Company Address
Suite 3350
120, Broadway
City province or state postal code
10271, NEW YORK, NY
Phone: +1 646 348 6700
Fax: +1 212 470 4000
Country address: UNITED STATES OF AMERICA
Website url: www.aciworldwide.com