<PAGE>   1
                                   FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C.  20549


(Mark One)

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended September 30, 1995

                                       OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

           For the transition period from _________ to ___________

                       COMMISSION FILE NUMBER 0-10966

                     NATIONAL TRANSACTION NETWORK, INC.
           (Exact name of registrant as specified in its charter)

            Delaware                            No. 75-1535237
   ----------------------------                 --------------
   (State or other jurisdiction                 (I.R.S. Employer
   of incorporation or organization)            Identification Number)


            9 Kane Industrial Drive
             Hudson, Massachusetts                          01749
            -----------------------                         -----
     (Address of principal executive offices)           (Zip Code)

                               (508) 562-6500
                               --------------
            (Registrant's telephone number, including area code)

        Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.

                                Yes   X    No
                                    ------    ------

        Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:  Common Stock, $.15
par value per share, outstanding as of November 9, 1995:  3,248,606 shares.

<PAGE>   2


<TABLE>
                       NATIONAL TRANSACTION NETWORK, INC.


<CAPTION>
                                                                        PAGE
                                                                        ----
<S>                                                                     <C>
PART I    FINANCIAL INFORMATION                                         

  Item 1     Financial Statements

             Balance Sheets
                September 30, 1995 and December 31, 1994                 3
            
             Statements of Operations
                Three months ended September 30, 1995 and 1994           5
                Nine months ended September 30, 1995 and 1994            6

             Statements of Cash Flows
                Nine months ended September 30, 1995 and 1994            7

             Notes to Financial Statements                               8

  Item 2     Management's Discussion and Analysis of Financial              
             Condition and Results of Operations                        11


PART II   OTHER INFORMATION                                             13


  Item 6(a)  Exhibits
                Exhibit 11- Computation of Earnings Per Share
                   Three months ended September 30, 1995 and 1994       15
                   Nine months ended September 30, 1995 and 1994        16

SIGNATURES                                                              14
</TABLE>

                                     -2-
<PAGE>   3
                         PART  I - FINANCIAL STATEMENTS


ITEM I. FINANCIAL STATEMENTS                       
----------------------------

<TABLE>
                       NATIONAL TRANSACTION NETWORK, INC.
                                 BALANCE SHEETS

                                    ASSETS         
                                    ------
<CAPTION>
                                                                         (Unaudited)
                                                                         September 30,        December 31,
                                                                             1995                1994       
                                                                       ----------------    -----------------
        <S>                                                                 <C>                       <C>                  
        CURRENT ASSETS:                                                                                         
           Cash and equivalents                                             $  415,364           $   74,032     
           Accounts receivable                                                                                  
           (Net of allowance for doubtful accounts                                                              
            of $100,000 at September 30, 1995                                                                   
            and December 31, 1994)                                           1,254,850            1,264,917     
           Inventory                                                           486,096            1,129,119     
           Prepaid expenses                                                     21,513               65,092     
                                                                            ----------           ----------
             TOTAL CURRENT ASSETS                                            2,177,823            2,533,160     
                                                                            ----------           ----------

        PROPERTY AND EQUIPMENT                                                 702,937              684,494     
           Less accumulated depreciation                                                                        
            and amortization                                                  (434,541)            (344,135)    
                                                                            ----------           ----------
             PROPERTY AND                                                                                       
             EQUIPMENT - NET                                                   268,396              340,359     
                                                                            ----------           ----------
        OTHER ASSETS:                                                                                           
           Deposits                                                              4,479                4,479     
                                                                            ----------           ----------
             TOTAL OTHER ASSETS                                                  4,479                4,479     
                                                                            ----------           ----------
                            TOTAL                                           $2,450,698           $2,877,998     
                                                                            ==========           ==========
</TABLE>
        See Notes to Financial Statements.

                                     -3-

<PAGE>   4

<TABLE>
                                NATIONAL TRANSACTION NETWORK, INC.
                                         BALANCE SHEETS


                            LIABILITIES AND STOCKHOLDERS' EQUITY                      
                            ------------------------------------
<CAPTION>
                                                                         (Unaudited)
                                                                        September 30,        December 31,
                                                                             1995                1994       
                                                                       ----------------    -----------------     
        <S>                                                               <C>                  <C>                   
                                                                                                                 
        CURRENT LIABILITIES:                                                                                     
           Accounts payable                                               $    530,169         $    615,054      
           Accounts payable to stockholder                                           0              162,670      
           Accrued liabilities                                                 593,120              671,904      
           Deferred revenue                                                    131,296               86,034      
                                                                          ------------         ------------
             TOTAL CURRENT LIABILITIES                                       1,254,585            1,535,662      
                                                                          ------------         ------------
                                                                                                                 
        LONG-TERM LIABILITIES:                                                                                   
           Deferred revenue                                                      4,205                4,390      
                                                                          ------------         ------------
             TOTAL LONG-TERM LIABILITIES                                         4,205                4,390      
                                                                          ------------         ------------
                                                                                                                 
        STOCKHOLDERS' EQUITY:                                                                                    
           Preferred stock, $.10 par value;                                                                      
            authorized, 5,000,000 shares;                                                                        
            none outstanding                                                                                     
           Common stock, $.15 par value;                                                                         
            authorized, 6,666,667 shares;                                                                        
            issued and outstanding, 3,248,606                                                                    
            shares at September 30, 1995 and                                                                     
            December 31, 1994                                                  487,291              487,291      
           Additional paid-in capital                                       12,589,255           12,589,255      
           Deficit                                                         (11,884,638)         (11,738,600)     
                                                                          ------------         ------------
             TOTAL STOCKHOLDERS'                                                                                 
                EQUITY                                                       1,191,908            1,337,946      
                                                                          ------------         ------------
                          TOTAL                                           $  2,450,698         $  2,877,998      
                                                                          ============         ============
</TABLE>

        See Notes to Financial Statements.


                                     -4-
<PAGE>   5

<TABLE>
                       NATIONAL TRANSACTION NETWORK, INC.
                            STATEMENTS OF OPERATIONS
                                  (UNAUDITED)


<CAPTION>
                                                               Three Months Ended
                                                                  September 30,        
                                                        --------------------------------
                                                           1995                  1994       
                                                        ----------            ----------
     <S>                                                <C>                   <C>                 
     REVENUE                                            $1,284,281            $2,148,288   
                                                        ----------            ----------
     COST AND EXPENSES                                                                     
        Cost of revenue                                    718,600             1,330,573   
        Sales and marketing                                432,602               432,822   
        Research and development                           234,415               210,433   
        General and administrative                         178,710               199,352   
                                                        ----------            ----------
          Total                                          1,564,327             2,173,180   
                                                        ----------            ----------
     LOSS FROM OPERATIONS                                 (280,046)              (24,892)  
                                                        ----------            ----------
     OTHER INCOME:                                                                        
        Interest income                                      4,354                 7,153   
                                                        ----------            ----------
          Total                                              4,354                 7,153   
                                                        ----------            ----------
            NET LOSS                                    $ (275,692)           $  (17,739)  
                                                        ==========            ==========
     NET LOSS  PER COMMON SHARE                         $    (0.08)           $    (0.01)  
                                                        ==========            ==========
                                                                                           
     WEIGHTED AVERAGE NUMBER OF                                                            
      COMMON SHARES OUTSTANDING                          3,248,606             3,248,606   
                                                        ==========            ==========
</TABLE>                                

     See Notes to Financial Statements. 
                                        

                                        -5-
<PAGE>   6
<TABLE>
                       NATIONAL TRANSACTION NETWORK, INC.
                            STATEMENTS OF OPERATIONS
                                  (UNAUDITED)

<CAPTION>
                                                                Nine Months Ended
                                                                  September 30,      
                                                        --------------------------------
                                                           1995                 1994       
                                                        ----------            ----------
     <S>                                                <C>                   <C>                    
     REVENUE                                            $6,090,964            $6,261,443      
                                                        ----------            ----------
     COST AND EXPENSES                                                                        
        Cost of revenue                                  3,548,485             3,869,387      
        Sales and marketing                              1,418,429             1,252,735      
        Research and development                           721,596               809,454      
        General and administrative                         561,542               584,153      
                                                        ----------            ----------
          Total                                          6,250,052             6,515,729      
                                                        ----------            ----------
     LOSS FROM OPERATIONS                                 (159,088)             (254,286)     
                                                        ----------            ----------
     OTHER INCOME (EXPENSE):                                                                  
        Interest income                                     13,050                13,136      
        Interest expense                                         0                  (413)     
                                                        ----------            ----------
          Total                                             13,050                12,723      
                                                        ----------            ----------
            NET LOSS                                    $ (146,038)           $ (241,563)     
                                                        ==========            ==========
                                                                                              
     NET LOSS PER COMMON SHARE                          $    (0.04)           $    (0.07)     
                                                        ==========            ==========
                                                                                              
     WEIGHTED AVERAGE NUMBER OF                                                               
      COMMON SHARES OUTSTANDING                          3,248,606             3,248,606 
                                                        ==========            ==========
</TABLE>


     See Notes to Financial Statements.

                                        -6-
<PAGE>   7
<TABLE>
                       NATIONAL TRANSACTION NETWORK, INC.
                            STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<CAPTION>
                                                                                         Nine Months Ended
                                                                                            September 30,
                                                                                     -----------------------------
                                                                                       1995                1994      
                                                                                     ---------           ---------
      <S>                                                                            <C>                 <C>
      Cash Flows From Operating Activities:
      Net loss                                                                       $(146,038)          $(241,563)
                                                                                     ---------           ---------
      Adjustments to reconcile net loss to
         net cash provided by (used for) operating activities:
      Depreciation and amortization                                                     90,406              94,510
      Increase (decrease) in cash from:
         Accounts receivable                                                            10,067            (412,619)
         Inventory                                                                     643,023             184,915
         Prepaid expenses                                                               43,579              20,729
         Deposits                                                                            0               2,455
         Accounts payable to stockholder                                              (162,670)           (137,637)
         Accounts payable and accrued
           liabilities                                                                (163,669)            364,246
         Deferred revenue                                                               45,077             111,328 
                                                                                     ---------           ---------
      Total adjustments                                                                505,813             227,927 
                                                                                     ---------           ---------
      Net cash provided by (used for) operating activities                             359,775             (13,636)
                                                                                     ---------           ---------
      Cash Flows Used In Investing Activities:
         Purchases of property and equipment                                           (18,443)            (90,178)
         Capitalized software development costs                                              0            (204,186)
                                                                                     ---------           ---------
      Net cash used for investing activities                                           (18,443)           (294,364)

      Net increase (decrease) in cash and
         equivalents                                                                   341,332            (308,000)
                                                                                     ---------           ---------
      Cash and Equivalents, Beginning of Period                                         74,032             907,860 
                                                                                     ---------           ---------
      Cash and Equivalents, End of Period                                            $ 415,364           $ 599,860 
                                                                                     =========           =========
</TABLE>
      See Notes to Financial Statements.

                                                -7-

<PAGE>   8
                      NATIONAL TRANSACTION NETWORK, INC.
                        NOTES TO FINANCIAL STATEMENTS


1.   The accompanying financial statements and notes do not include all of the 
     disclosures made in the Company's Form 10-K for the year ended December 31,
     1994 which should be read in conjunction with these statements. In the
     opinion of the Company, the statements include all adjustments necessary
     for a fair presentation of the quarterly results.

2.   Net income (loss) per common share is computed based on the weighted 
     average number of common shares outstanding during each quarter.  Shares
     issuable upon exercise of outstanding options and warrants have been
     excluded from the computations since their effect would be antidilutive.

3.   The results of operations for the nine month period ended September 30, 
     1995 are not necessarily indicative of the results to be expected
     for the full year.

4.   In June 1993, the Company received a commitment for a bank-financed credit 
     line for working capital purposes. The loan agreement for the credit line
     was executed in September 1993.  On February 17, 1995, the Company received
     a commitment from its bank for the renewal of the credit line through
     January 5, 1996.  Maximum available borrowings under the line are the
     lesser of $200,000 or certain levels of eligible accounts receivable and
     are subject to monthly and quarterly financial performance covenants. 
     Borrowings bear interest at a rate per annum equal to the Prime Rate       
     (8.75% at November 9, 1995) plus 4% and are secured by the Company's
     assets.  At September 30, 1995, there were no borrowings outstanding under
     the credit line nor have there been any borrowings through November 9,
     1995.  Borrowing availability under the credit line was $200,000 at
     September 30, 1995.

5.   The Company accounts for Research and Development costs in accordance with 
     Statement of Financial Accounting Standards (SFAS) No. 86, "Accounting for
     the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed."
     It is the Company's policy to capitalize costs relating to the development
     of its products until such time when products are available for
     general release to customers, provided that the recoverability of such
     costs is reasonably assured through expected sales revenue less related
     selling expenses.  For the quarter ended September 30, 1995, there were no
     costs incurred that required capitalization.  Upon availability of products
     for general release to customers, any related capitalized development costs
     are amortized over a suitable period based on the products' estimated
     economic life.

                                     -8-
<PAGE>   9

     In December 1994, the Company made a decision to write off $657,479 of
     capitalized software development costs relating to a software product under
     development. These costs had previously been capitalized in accordance with
     SFAS No. 86.  The write-off resulted from the reprioritization of Company
     resources to focus on new market requirements.  Prior to the release of the
     software product for which development costs had been capitalized, market
     demands shifted towards integrated payment system solutions away from the
     stand- alone product under development by the Company. Accordingly, the
     Company canceled the project under development and redirected its marketing
     and product development efforts to meet current market opportunities for
     integrated products.  An additional $55,846 of severance costs was incurred
     in connection with the decision to write off the capitalized software
     costs.

6.   The Company accounts for income taxes in accordance with Statement of 
     Financial Accounting Standards (SFAS) No. 109, "Accounting for Income
     Taxes."  Under SFAS No. 109, deferred tax assets and liabilities are       
     established for the temporary differences between the financial reporting
     basis and the tax basis of the Company's assets and liabilities using
     enacted tax rates in the year(s) in which the differences are expected     
     to reverse.

<TABLE>
     Deferred income taxes reflect the net tax effects of differences in the
     timing of certain revenue and expense items and the related carrying
     amounts of assets and liabilities for financial reporting and tax purposes
     as well as net operating loss carryforwards. Significant components of the
     Company's deferred tax assets and liabilities as of January 1, 1995 are as
     follows:

          <S>                                                   <C>
          Deferred tax liabilities:
            Property and equipment, principally due to
               use of different depreciation methods            $   (55,356)

          Deferred tax assets:
            Compensated absences, principally due to
               accrual for financial reporting purposes              31,095
            Accounts receivable, principally due to
               allowance for doubtful accounts                       40,250
            Net operating loss carryforwards                      5,011,824
                                                                -----------
                                                                  5,083,169

          Valuation allowance                                    (5,027,813)
                                                                -----------

          Deferred tax liabilities, net                         $         0
                                                                ===========
</TABLE>

                                     -9-
<PAGE>   10

     For the quarter ended September 30, 1995, the valuation allowance was
     increased by approximately $60,000 due to the uncertainty of future
     realization of currently generated net operating loss carryforwards.

<TABLE>
     A reconciliation of the U.S. statutory tax rate and the effective tax
     rate for the quarter ended September 30, 1995 is as follows:

          <S>                                                           <C>
          Statutory tax rate (benefit)                                  (34)%
          State rate, net of federal benefit                             (7)
          Increase in valuation allowance due to the
            uncertainty of future realization of currently
            generated net operating loss carryforwards                   41
                                                                        ---
          Effective tax rate                                              0%
                                                                        ===
</TABLE>




                                     -10-
<PAGE>   11

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         -------------------------------------------------
         CONDITION AND RESULTS OF OPERATIONS
         -------------------------------------------------

RESULTS OF OPERATIONS
---------------------

        Revenue for the quarter ended September 30, 1995 decreased 40.2%
to $1,284,281 compared to $2,148,288 for the quarter ended September 30, 1994. 
The decrease in revenue was primarily due to a larger number of the 
Company's payment systems having been installed by a significant customer
into additional divisions during the quarter ended September 30, 1994 than in
the quarter ended September 30, 1995.  The revenue from this customer 
accounted  for approximately 60% of total revenue for the third quarter of
1994 compared to 23% of total revenue for the third quarter of 1995. In
addition, the Company's inability to generate a sufficient number of qualified
sales leads as well as delays in acquiring inventory from suppliers
contributed to the decrease in revenue for the quarter ended September 30,
1995 compared to the quarter ended September 30, 1994 Uncertainties 
with respect to future orders could have a material impact on net sales or
earnings in the future.

        Gross margins as a percent of revenue increased to approximately
44.0% for the quarter ended September 30, 1995 as compared to 38.1% for the
comparable period in 1994. This increased was primarily due to higher margin 
software and services revenue comprising a larger percentage of total revenue
for the quarter ended September 30, 1995 compared to the quarter ended September
30, 1994.

        Total operating expenses remained constant for the quarter ended 
September 30, 1995 compared to the quarter ended September 30, 1994. Sales
and marketing expenses also remained constant between both quarterly periods. 
Higher compensation and benefits expenses $(38,200) along with higher 
expenses related to trade show participation $(10,500) were offset by
lower travel and entertainment expenses $(35,300) and lower outside 
services expenses $(14,000) for the quarter ended September 30, 1995 compared
to the quarter ended September 30, 1994.

        Research and development expenses increased by 11.4% $(24,000) for the
quarter ended September 30, 1995 compared to the quarter ended September 30, 
1994.  Decreases in compensation and benefits expenses $(98,900) and travel 
and entertainment expenses $(7,900) resulting from a reduction in the number 
of research and development personnel made during the first quarter of 1995
were partially offset by an increase in contract programming expenses 
$(41,400). Additionally, approximately $90,700 of software development costs 
were capitalized in the quarter ended September 30, 1994 in accordance with
Statement of Financial Accounting Standards No. 86, "Accounting for the
Costs of Computer Software to be Sold, Leased or Otherwise Marketed." For the
quarter ended September 30, 1995, there were no research and development
expenses incurred that required capitalization.


                                     -11-
<PAGE>   12

        General and administrative expenses decreased by 10.4% $(20,600) for the
quarter ended September 30, 1995 compared to the quarter ended September 30,
1994. This decrease was primarily due to a decrease in outside consulting 
expenses $(7,200) between the two quarterly periods and a $12,000 charge
relating to a sales tax audit in the third quarter of 1994.

        Interest income decreased to $4,354 for the three months ended
September 30, 1995 compared to $7,153 for the three months ended September 30,
1994 due to a decrease in the amount of funds available for investment
throughout the third quarter of 1995.


LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

        Working capital at September 30, 1995 was $923,240 compared to 
$997,498 at December 31, 1994.  Decreases in inventory $(643,023) and prepaid
expenses $(43,579) coupled with an increase in deferred revenue on 
hardware and software maintenance contracts $(45,262) were partially
offset by increases in cash $(341,332) and decreases in accounts payable
and accrued expenses $(326,339).

        In June 1993, the Company received a commitment for a bank-financed
credit line for working capital purposes. The loan agreement for the credit
line was executed in September 1993.  On February 17, 1995 the Company 
received a commitment from its bank for the renewal of the credit line through
January 5, 1996.  Maximum available borrowings under the line are the lesser of
$200,000 or certain levels of eligible accounts receivable and are subject to
monthly and quarterly financial convenants.  Borrowings on  the credit line
bear interest at a rate per annum equal to the Prime Rate (8.75% at November 9,
1995) plus 4% and are secured by the Company's assets.  At September 30, 1995,
there were no borrowings outstanding under the credit line nor have there been
any borrowings through November 9, 1995. Borrowing availability under the line
of credit was $200,000 at September 30, 1995.

        Management believes that sources of liquidity for future needs can
be generated from existing cash balances, cash generated from operations and
borrowings available to the Company under its bank-financed working capital
line of credit.



                                     -12-
<PAGE>   13


PART II - OTHER INFORMATION

Item 1.   Legal Proceedings.
          ------------------

          The Company has no material legal proceedings at this time.

Item 2.   Changes in Securities.
          ----------------------

          Not applicable.

Item 3.   Defaults upon Senior Securities.
          --------------------------------

          Not applicable.

Item 4.   Submission of Matters to a Vote of Security Holders.
          ----------------------------------------------------
          
          There were no matters submitted to a vote of the security holders
          in the quarter ended September 30, 1995.

Item 5.   Other Information.
          ------------------

          Not applicable.

Item 6.   Exhibits and Reports on Form 8-K.
          ---------------------------------

      (a) Exhibits.
          ---------

            Exhibit 11 - Computation of Earnings Per Share.

      (b) Reports on Form 8-K.
          --------------------

            None.


                                     -13-
<PAGE>   14

                                  SIGNATURES
                                  ----------
                                       

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                NATIONAL TRANSACTION NETWORK, INC.





DATE:  November 9, 1995         By: /s/  Paul A. Siegenthaler
                                   --------------------------
                                    Paul A. Siegenthaler, Chief Executive
                                    Officer and President





DATE:  November 9, 1995         By: /s/  Milton A. Alpern
                                   ----------------------
                                    Milton A. Alpern, Vice President of Finance
                                    and Administration (Principal Financial and
                                    Accounting Officer)



                                     -14-