First USA Paymentech, Inc. formally introduced a full service commercial card program for financial institutions seeking a commercial card processing partner. The announcement was made during a presentation by Paymentech at the American Bankers Association Conference in Long Beach, California.
Mary Dees, group executive for Paymentech’s commercial card unit, introduced the program during a conference presentation on corporate payment systems and the sophisticated technology and account management demands of such programs.
“When it comes to corporate, purchasing and fleet card solutions, it is no longer just about cards. Clients look for payment process re-engineering and improved expense management,” said Dees. “Companies want to tailor programs that address such issues as spending parameters, robust data reporting, integration of payment information into accounting systems, extensive program and implementation consultation, benchmarking, ongoing analysis, and more.”
Given these complexities, the most cost effective entry to the corporate payment arena for financial institutions is to partner with a processor capable of offering all components,” said Dees. “This is the solution we are taking the banks that have significant goals for their commercial card business.”
Paymentech will market its existing Visa and MasterCard commercial products to financial institution partners. In addition, Paymentech will make available major payment programs such as the PHH/Paymentech MasterCard corporate fleet card, the British Airways co-branded Visa corporate card. Paymentech will also offer a small business card version of the British Airways product that will be available only through agent bank relationships.
“As a third-party processor, we are perceived as a non-threating partner for banks who are serious about playing in the corporate payments market,” said James W. Baumgartner, president of Paymentech’s ability, via its merchant acquiring operation, to help corporate clients sign up and activate purchasing card accepting vendors. Through its Network Services unit, Paymentech has one of the largest terminal bases with purchasing card acceptance capability.
Banks and independent sales organizations (ISOs) utilize Paymentech Network Services for authorization and electronic draft capture transaction processing for merchant point-of-sales locations. Paymentech is also initialized closed loop systems for corporate clients that include commercial card issuing and merchant acquiring.
Paymentech currently delivers basic commercial card services to 70 smaller financial institutions. “We want to offer a range of solutions from a standard programs for small banks to highly customized offerings for larger banks,” said Baumgartner.
First USA Paymentech, Inc., founded in 1985, provides full-service electronic payment solutions, processing approximately 392 million total transactions in the June 1997 quarter. As the third largest processor of bankcard transactions in the United States, Paymentech processed approximately $41.3 billion in bankcard sales volume during fiscal 1997. Paymentech also issues commercial card products to businesses and other entities, and provides commercial card payment and information processing.Details