Pegasystems Advances Card Dispute Processing with PegaCARD Smart Dispute

CAMBRIDGE, Mass., July 30, 2003 — New Rules-based BPM Software Application Helps Resolve Credit Card Disputes for Improved, More Consistent Customer Service

Pegasystems (NASDAQ: PEGA), a leading provider of rules-based, smart business process management (BPM) software, today announced PegaCARD Smart Dispute, a new product that helps credit and debit card companies minimize unnecessary write-offs, improve operational efficiency and reduce the cost of processing card charge disputes. Smart Dispute, built on the Java-compliant PegaRULES Process Commander platform, streamlines what has traditionally been a labor-intensive and costly process prone to error, time lag and inefficiency. Smart Dispute is currently being implemented at one of the nation's top card issuers.

Pegasystems, recently positioned in the leader quadrant in both Gartner's 2003 BPM Magic Quadrant Report and 2003 Business Rule Engine Magic Quadrant Report(1), has designed Smart Dispute to help organizations build more intelligence into their card dispute operations while empowering business people to manage and improve those practices and processes needed to run their business. Pegasystems' card technology is implemented in eight of the top 15 North American card issuers(2), as well as in two of the leading global card outsourcers. Leveraging 14 years of Pegasystems experience in delivering rules-based, customer service solutions to top-tier card issuers, Smart Dispute brings proven solutions to the broader marketplace.

Smart Dispute automates the resolution of disputes and the processing of chargebacks with minimal human intervention, helping to cut the cost of processing disputes and enabling card companies to provide more customer-centric service. Leveraging Pegasystems' expertise in business rules, Smart Dispute establishes best practices for the orderly, consistent processing of fraudulent and disputed charges in compliance with government and association guidelines. Automating the tasks associated with dispute processing allows companies to provide better, more consistent service, handling most disputed transactions on the first customer touch.

Smart Dispute facilitates straight-through processing — the ability to automate the dispute process, all the way from the customer's complaint through to resolution in the back office. On the front end, the software guides dispute and customer service staff through intricate dispute regulations, reason codes and procedures to help provide a low error rate without expert training and more efficient customer service. On the back end, rules-based BPM and information technology (IT) integration manages complex accounting and processing tasks, enabling consistent service with little to no manual input. Unlike point solutions for card disputes, Smart Dispute is an enterprise system that can be extended to address related business issues and deployed across different geographies, divisions and channels, including the Web.

"Card issuers find themselves mired in fragmented, labor-intensive dispute processes that are inefficient, expensive and inconsistent," said Joseph Friscia, executive vice president, Applications, Pegasystems. "Smart Dispute addresses and helps resolve these issues, helping organizations reduce costs and increase productivity, quality and the flexibility needed to comply with changing business regulations."

Forward-Looking Statements

Certain statements contained in this press release may be construed as "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "hope," "anticipate," "plan," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause the Company's actual results to differ from those expressed in such forward-looking statements. These risks and uncertainties include impact of pending regulatory proceedings, difficulty in predicting the completion of product implementations and consequently the timing of revenue recognition, the inability to attract and retain key employees, reliance on key third-party relationships, management of the Company's growth, and other risks and uncertainties. Further information regarding these and other factors which could cause the Company's actual results to differ materially from any forward-looking statements contained in this press release is contained in the Company's Quarterly Report on Form 10Q for the quarter ended June 30, 2003 on file with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved.

NOTE: Pegasystems is a registered trademark of Pegasystems Inc. Other product and company names may be trademarks of their respective owners.

(1)"Magic Quadrant for Pure-Play BPM, 2Q03," by J. Sinur, J. Thompson, June 2, 2003.

(2)"The Business Rule Engine 2003 Magic Quadrant," by J. Sinur, April 7, 2003.

About Pegasystems

Pegasystems (NASDAQ: PEGA) develops strategic applications for marketing, sales, service, and operations. Pega’s applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega’s Global 3000 customers include many of the world’s most sophisticated and successful enterprises. Pega’s applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients’ strategic business needs. Pega’s clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use, and global scale. For more information, please visit us at

All trademarks are the property of their respective owners.

The information contained in this press release is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release and timing of any features or functionality described remains at the sole discretion of Pegasystems, Pegasystems specifically disclaims any liability with respect to this information.


Press Kit


Media Contacts

Lisa Pintchman Rogers
VP, Corporate Communications
[email protected]
+1 617-866-6022

North America:
Sean Audet
Director, Corporate Communications
[email protected]
+1 617-528-5230

Ilena Ryan
Sr. Manager, Public Relations
[email protected]
+1 617-866-6722

Joanna Richardson
Director, Corporate Communications
[email protected]
+44 (0) 118 9651 660

Jon Brigden
PR & Communications Manager
[email protected]
+44 (0) 118 9398 584

Pegasystems Inc.
One Rogers St.
Cambridge, MA 02142
Phone +1 617-374-9600
Fax +1 617-374-9620