businesses to implement their Internet payment processing through First Ecommerce Data Services Ltd. (FEDS).

FEDS is jointly owned by the Bank of Bermuda and First Ecom.com Inc. a global provider of electronic payment processing solutions.

Bank of Bermuda (Cayman) Limited will use the FEDS processing solution to offer multi-currency credit card payment processing for their e-commerce merchants domiciled in the Cayman Islands.

FEDS will provide secure, online, real-time authorisation and settlement for all credit card transactions conducted on the Web sites of e-merchants having accounts with Bank of Bermuda in the Cayman Islands.

When the Visa or MasterCard system recognides the transaction as based in the Cayman Islands, it permits settlement on the island allowing the e-merchant to take advantage of the benefits of government stability, privacy of information, protection from currency fluctuations, security and tax-neutral status.

By utilising the FEDS processing solution, Bank of Bermuda (Cayman) will be able to offer e-payment processing services to their merchants with limited time to market. This will allow both the bank and their merchants to quickly reap the benefits of e-commerce.

Through this solution, the Bank will also benefit from a stateless payment gateway that provides additional security for online transactions since cardholder information is not stored on the gateway.

"Our e-commerce services have been well-received by our clients who wish to domicile their businesses in Bermuda,'' said Mark Whiteside, Product Manager, Electronic Banking, Bank of Bermuda (Cayman) Limited.

"We believe there is a great potential for e-commerce business on the island and are pleased to be working with FEDS to provide our merchants with a much needed e-commerce solution.'' "The addition of real-time, online settlement will be a great advantage to the e-commerce merchants that domicile their e-business with Bank of Bermuda in the Cayman Islands,'' said David Lema,president of First Ecommerce Data Services.

"The fact that these merchants will be enabled to perform multi-currency settlement in a tax-neutral jurisdiction will be a benefit not only to the merchant, but also to the Bank who will gain a competitive edge.''