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Table of Contents

Lead Story

Do you speak payments?

News

Industry Update

Bob Carr takes the encryption lead at IAPP

PCI SSC broaches possible changes

Aite identifies industry challenges

BofA, First Data give birth to BAMS

Features

AgenTalkSM:
Bruce Reisman

GS Advisory Board:
Vertical market virtues - Part I

ISOMetrics:
Acquiring by the numbers

Selling Prepaid

Prepaid in brief

Cabbies moved to plastic

'Obolize' that card

Gift card legal perils - Part 1

Views

Where there's avarice, there should be ire

Biff Matthews
CardWare International

Hard-to-place merchants:
An untapped opportunity

Jeffrey I. Shavitz
Charge Cards Systems Inc.

Pulling the PIN on older systems

Scott Henry
VeriFone

Education

Street SmartsSM:
Independents Day

Jon Perry and Vanessa Lang
888QuikRate.com

PCI: The merchant experience

Tim Cranny
Panoptic Security Inc.

Target portfolios for increased profits, merchant retention

Christian Murray
Global eTelecom Inc.

Smart specialization

Jeff Fortney
Clearent LLC

Company Profile

checXchange Money Transfer Systems Inc.

New Products

Portable card swipe

POS app for BlackBerry
Merchant Warehouse

New Optimum family member

Optimum T4205
Hypercom Corp.

Inspiration

Revisit your resolutions

Departments

Forum

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

July 13, 2009  •  Issue 09:07:01

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BofA, First Data give birth to BAMS

Bank of America Corp. and First Data Corp. formed a new payment solutions company, Banc of America Merchant Services LLC. First Data will contribute about 140,000 merchant relationships and BofA will bring approximately 240,000 such relationships to BAMS. The new entity expects to process more than 1 billion transactions per month. At the end of 2008, First Data parted ways with JPMorgan Chase & Co. The two companies had jointly provided payment solutions as Chase Paymentech Solutions LLC for 12 years. First Data stated at the time that the split signaled a new phase of product development and expansion.

BAMS will provide what it calls "a comprehensive suite of innovative payments solutions" such as credit, debit and prepaid cards, merchant loyalty programs and check and e-commerce payment services. The offerings include new services designed to drive return traffic to merchants' stores and provide consumers with security, convenience and customary rewards. BAMS will also provide enhanced business reporting tools.

Symbiosis

Adil Moussa, a Senior Analyst at Aite Group LLC, said First Data's and BofA's joint venture "will create a new synergy in the merchant acquiring world." He stressed how critical it is for large companies and corporations to have relationships with major banks for their lines of credit, treasury and cash management needs.

Moussa feels those banking needs influence large merchants' choice of merchant services provider. "From a large merchant perspective, First Data will be in an even better seat to compete over large corporate accounts," Moussa said. "Conversely, Bank of America's merchants will benefit from the technology that First Data offers in payments."

Moussa extolled the benefits large merchants enjoy when their merchant processing and banking needs are met by one company, with one point of contact. He pointed out that it reduces inefficiencies that can plague larger companies or corporations.

Moussa noted that just a few days before news of BAMS' formation emerged, he had been discussing collaborating on a report that would look at the "different factors that lead large merchants to select a merchant processor and the importance of having a solid bank partner with a solid treasury solution."

Unity

Michael Capellas, First Data's Chairman and Chief Executive Officer, said, "Together, we will help clients keep pace with the dynamic virtual marketplace by delivering secure, scalable and reliable payment processing and the broadest set of innovative payments solutions at highly competitive prices."

He noted that the two companies have more than 70 years' combined merchant experience. First Data will own the largest interest in BAMS at 48.5 percent; BofA will hold 46.5 percent; an investment firm will hold the remaining 5 percent.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

USAePay | Impact Paysystems | Electronic Merchant Systems | Inovio | Board Studios, Inc.