The many people who subscribed to my Pay By Touch Blog over the past couple years know that I was a big advocate for ATMDirect, more specifically, a methodology designed to offer Internet Retailers a lower cost, more secure PIN Debit payment solution.In fact, in one specific post I did in June of '06 I mentioned that I really believed that ATMDirect might have been a Pay By Touch Cash Cow.
That is why, when Pay By Touch announced they were selling their non-core assets, including ATMDirect, I decided to take a close look at it. Thus, I signed the requisite non-disclosure and PBT forwarded me the confidential information that they forwarded to others who may have been interested in procuring ATMDirect's assets.
I also spoke to former Pay By Touch executives who informed me that some of the claims made by the former owner of ATMDirect regarding their patents were, "misleading" or at least "overblown." So I looked at their patents, no...let's make that "patent" since only one is issued (the rest are only applied for,) as well as other key ingredients and, frankly, came away rather unimpressed.How unimpressed? Let's just say that my vision of ATMDirect as a "cash cow" took on a new form...(which I graphically illustrate on the right)
I knew that Pay By Touch had (been duped?) paid $30.5 million only two years previously, and that now it could be had for somewhere around $500k-$750k. Even though there were several IBM Blade Servers worth about $1.5 million, I decided to pass as I wasn't in the used blade server resale business.
On Friday, I mentioned that I was going to do a post discussing how ATMDirect is bluffing their way through the PIN Debit Card game. They sure made it easy for me. as yesterday, while I was watching the Cubs game, I got an e-mail alert regarding a press release from ATMDirect.
Here's the link, followed by the portion of the press release that, in my view, is blatantly misleading. Bluffs only work when you don't have to show your cards, but when you say you have a Four Aces, you better have four and not one.
As you read the following, keep in mind that ATMDirect (or should I say ATM-Indirect.) has been issued ONE patent...and that I saw everything that ATMD had to offer and was simply not interested.
Frankly, one word sums up this press release...Unbelievable!
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Accullink, LLC Acquires Pay by Touch Internet PIN Debit "Patents"
Accullink, LLC is pleased to announce the acquisition of Pay By Touch's "suite of 25 global Internet PIN Debit patents".These "patents" enable, for the first time, a software-only solution for PIN based payment transactions on the Internet. "The patents" are being commercialized through Accullink, LLC subsidiary ATM Direct. Their solution provides a compelling alternative payment method for consumers and merchants.
Atlanta, GA, April 06, 2008 --(PR.com)-- Accullink, LLC, an Atlanta based investor group, has acquired Pay by Touch's suite of 25 global patents that enable a software-only solution for PIN based payment transactions on the Internet. Accullink, LLC is commercializing the patent suite through its subsidiary ATM Direct, a leading alternative payment provider.
I'll have more to say on this subject later on. By the way...if anyone from ATMDirect disputes anything I've stated in this post, I would invite them to feel free to contact me and set the record straight. johnbfrank@gmail.com
