NY-based iPayment added four new members to its Board, including David R. Hughes, Marshall J. Lux, Michael P. Monaco and Brian V. Mooney
First Data announced two promotions and two new hires to its senior leadership team. Among the promotions: Barry McCarthy to lead four strategic businesses including the STAR Network.
Odyssey Merchant Services is now offering First Data’s Clover Station cloud-based business control and payment platform that gives small and mid-sized business owners the tools they need to manage their businesses. An apps-based business system with an intuitive interface. Clover Station includes access to the Clover App Market, where users can download apps to further customize the system to the user’s needs.
First Data posted a 13% gain in consolidated third quarter revenue of
$2.44 billion, driven by the new Bank of America Merchant Services
alliance. However, the Financial Services Segment revenue was off 11% to
$339 million. The International Segment generated revenue of $415
million, down 10%. The Retail and Alliance Services Segment reported
revenue of $798 million, down 4% over 3Q/08. But, reimbursable debit
network fees soared by 41% to $719.5 million, offsetting the declines in
the other segments. During the quarter, Financial Services renewed 131
contracts in the quarter including a significant contract with GE. Also,
First Dataâs International segment signed a long-term global agreement
with Barclays to provide technology for card issuing.
Additionally, First Data and RSA announced a new service called “First
Data Secure Transaction Management.” Bank of America Merchant Services
is First Dataâs largest merchant acquiring alliance and was established
in June 2009 after the extension of similar alliances with Wells Fargo
and PNC in recent quarters. For complete details on First Data’s third
quarter performance visit CardData (www.carddata.com)
Wells Fargo has expanded its agreement for card processing services with First Data. Under the terms of the agreement, WF will move its newly-acquired Wachovia credit card portfolios to FDC for processing. WF will also add the “Wells Fargo Private Label” card accounts and the “Personal Credit Management” line of credit accounts to the existing Wells Fargo portfolios serviced on FDCâs system. FDC already provides data processing services, statement/letter production and mailing, plastic card personalization and fraud services for WFâs seven million plus cardholder accounts within its consumer credit and small business card portfolios. Wells Fargo has been a First Data client since 1971.
WAUSAU Financial Systems and First Data subsidiary REMITCO have entered
into a new agreement that expands WFS’ proprietary software solutions
into a full service offering for remittance processing. Under the
agreement, WFS will provide multiple levels of service that
allow organizations to choose end-to-end remittance processing or a more
limited solution that can grow over time. The expanded solution can be
used by a number of industries, including financial services, utilities
and insurance companies. First Data will
host the software environment, manage the service facilities, and
provide the labor necessary to process the transactions. The agreement
also calls for First Data to beta test new WFS product development and
new releases and upgrades to the software. The WFS remittance solution
supports nearly 4 billion transactions annually. REMITCO has used the
WAUSAU Financial Systems software within its lockbox network for nearly
First Data has installed STAR Networks self-service kiosks at the Nevada Department of Motor Vehicles. Payment through the STAR Network is now featured on the DMVâs self-service kiosks as well as at DMV counters. There are a total of 26 kiosks, 19 kiosks in 13 DMV offices and seven at partnership locations for drivers who use their debit cards to pay registration fees, driver history records and other fees. DMV customers also can use their debit cards at the counter to pay since PIN pads have been added at more than 300 DMV payment windows across the state. The Nevada DMV and FDC’s STAR ATM and Debit Network
have been working together on a pilot program since 2006 when the
acceptance of debit card payments was introduced for Nevada DMV payments via the Internet.
First Data posted a 10% gain in second quarter revenues to $2.2 billion. Due to its KKR merger, the loss from continuing operations was $161 million for 2Q/08. Merchant Services produced second quarter revenues of $1 billion, a growth rate of 8% or flat excluding reimbursable debit network fees. Financial Services generated revenue of $704 million for the quarter, down 1% or down 4% excluding reimbursables and purchase accounting adjustments. FDC’s International posted revenue of $473 million, up 20% due to acquisitions in prior periods and a 23%
transaction growth rate. During the quarter, Merchant Services signed more than 175,000 domestic merchant locations as domestic merchant transactions grew 11%. Financial Services signed an agreement with Nordstrom. Also, International signed an agreement to acquire a significant ownership interest in EUFISERV. Additionally, FDC announced during the second quarter the winding down of its JV with Chase in regard to Chase Paymentech. For complete details on First Data’s second quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).
A VISA By-Law that penalized larger debit card issuers for moving to MasterCard, after the settlement of the Wal-Mart litigation in 2003, is ruled as unlawful and must be repealed. VISA names Hans Morris as President of VISA Inc., effective September 1st as John Coghlan, President and CEO of VISA USA resigns. Chase hires Gordon Smith, former president of AmEx’s Global Commercial Card group, to run its Card Services group. Fidelity National Information Services has agreed to acquire Scottsdale, AZ-based EFD/eFunds for $1.8 billion in cash. Houston-based Cardtronics inks a deal to acquire the U.S. ATM operations of 7-Eleven for about $135 million in cash. Wal-Mart rolls-out a reloadable prepaid VISA card with GE Money and Green Dot. Fair Isaac announces it will adjust its “FICO” scoring formula to remove authorized user accounts from consideration. MobiClear launches a multi-gateway solution that provides proactive security in all forms of electronic business environments including Internet shopping, business-to-business procurement transactions and retail shopping with credit and debit cards. Chase Card Services expands its consumer education service via a new Web site and is offering cardholders a $10 credit when they sign-up for free alerts, auto-pay and online statements. Bank of America launches the “Bank of America Accolades American Express” card for BofA’s clients served through Premier Banking & Investments, The Private Bank of Bank of America and its extension, Family Wealth Advisors. Discover signs a deal with First Data to issue Discover Network payroll cards provided by FDC’s “Money Network Financial.” eBay’s PayPal introduces a small electronic token that generates a unique security code approximately every 30 seconds. MasterCard introduces a patent-pending solution that enables issuers to switch cardholders into other card programs without disrupting their 16-digit account number. MasterCard and the Federation Internationale de Football Association announce they have settled their dispute over sponsorship of the 2010 & 2014 “FIFA World Cups.”
First Data reported that third calendar quarter revenues were up 16% to $2.1 billion. Card Services revenue for the quarter rose 10% to $473.2 million, compared to 3Q/06. Income from continuing operations was down 73%, but included $208 million of after-tax costs related to its merger with KKR. Commercial Services generated revenues of $1.2 billion, an 11% gain over the year ago quarter, primarily driven by strong transaction growth. Financial Institution Services generated revenue of $502 million, up 10% over 3Q/06. First Data International generated revenue of $425 million, up 28%. KKR acquired FDC on September 24th. Also effective September 24th, Michael Capellas became FDC’s new Chairman and CEO, replacing Ric Duques. Substantially all of the Company’s U.S. operations will be led by Edward Labry. FDC also announced that Tom Bell, formerly with Accenture, has been hired as EVP/Chief Strategy Officer. For complete details on FDC’s latest performance visit CardData ([www.carddata.com]).
FDC CARD SERVICES HISTORICAL
3Q/06: $429.5 million
4Q/06: $453.9 million
1Q/07: $443.6 million
2Q/07: $458.7 million
3Q/07: $473.2 million
Source: CardData (www.carddata.com)
Global Cash Access has named Scott H. Betts, previously EVP with First Date, as President, CEO and interim Chief Financial Officer. Betts will be succeeding Kirk Sanford who has announce his retirement from the company. Betts joins the company after five years with First Data Corporation (FDC), where he was Executive Vice President, President of Domestic Enterprise Payments. In 2004 Betts had responsibility for GCA, which was at that time a majority-owned subsidiary of FDC. At FDC, Mr. Betts led over 12,000 employees at 11 major locations in the business unit’s Merchant Services, Check Services, and Debit Services.
First Data’s “STAR Network” surcharge-free service has hooked-up with the nation’s largest surcharge-free ATM network. “STARsf” will now offer its financial institutions access to more than 32,000 surcharge-free ATMs through Cardtronic’s “Allpoint Network.” Cardholders of any “STAR” member enrolled in the “STARsf” service receive unlimited surcharge-free access at participating ATMs. First Data has about 5,400 financial institutions on the “STAR Network” for PIN debit card processing, fraud prevention services and ATM terminal driving and monitoring. There are approximately 154 million cards carrying the “STAR” logo. The “STAR Network” provides cardholders access to 315,000 ATMs and 1.7 million retail locations.