Pay By Touch to Acquire CardSystems Solutions

Pay By Touch™, the leading provider of biometric authentication, payment, loyalty and membership solutions, announced today it has agreed to acquire substantially all of the assets of CardSystems Solutions, Inc., a merchant payment processing provider with approximately 120,000 merchants. The terms of the deal have not been disclosed.

“There are tremendous synergies between CardSystems and Pay By Touch,” said John Rogers, founder, chairman and CEO of Pay By Touch. “We are eager to optimize the existing sales and marketing channels that have produced exceptional growth for CardSystems over the past several years. This will be an excellent addition to our existing Pay By Touch merchant services processing business. Additionally, Pay By Touch will work to offer its patented biometric products to CardSystems’ Independent Sales Organizations (ISOs) as a new feature for their merchant base.”

“The acquisition of CardSystems by Pay By Touch allows us to continue to provide a comprehensive payment processing solution to our ISOs, associations and retail merchants,” said Bill Reeves, Senior Vice President of CardSystems.

At the end of August, CardSystems successfully completed an independent audit of its Payment Card Industry (PCI) data security compliance. CardSystems has been provided an extension of its processing deadline from October 31, 2005 to January 31, 2006 by Visa, for the purpose of facilitating the planned acquisition of CardSystems’ assets by Pay By Touch.