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Table of Contents

Lead Story

Learning the ISO lingo

News

GS Online: 4.2 million and climbing ...

MWAA 2007: Security, depth and rock-and-roll

VeriFone corners NYC taxi business

Who's minding the small-business store, Visa wants to know

TMS, AMS settle their grudge

Congress grills warring parties on interchange

Features

AgenTalkSM:
David E. Hanlin Jr.

Dark cloud shrouds ATM ISOs in Sunshine State

Missy Baxter
ATMmarketplace.com

ISOMetrics:
Prepaid cards: An obsolescent evolution?

Views

On queue: Self-service card payments come of age

Paul Rasori
VeriFone

Breached security: The buck stops where?

Grant Drummond
Ingenico

Education

Street SmartsSM:
Demand defrays doubts about costly cash advance

Dee Karawadra
Impact PaySystem

Perfect storm of acquirer liability averted

Theodore F. Monroe and Bradley Cebeci
Attorneys at Law

Size up your sales pitch

Marcelo Paladini
Cynergy Data

P-cards: The payoff is palpable

Aaron Bills
3Delta Systems Inc.

Small shops under the PCI gun

Michael Petitti
AmbironTrustWave

Company Profile

Money Movers of America Inc.

New Products

It's hues to you

POS Supply Solutions Inc.
Colored paper rolls

Outsource the chargeback confusion

ChargebackAudit LLC
Chargeback Dispute Management System

Inspiration

You are the sunshine of your life

Departments

Forum

Industry Update

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

August 13, 2007  •  Issue 07:08:01

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TMS, AMS settle their grudge

In January 2007, a budding alliance among merchant acquirers began to unravel when Total Merchant Services and Advanced Merchant Services brought suit against one another in the Second Judicial District Court in Denver. Six months later, the parties reached an amicable out-of-court settlement.

The rift

TMS President and Chief Executive Officer Ed Freedman announced the alliance's formation at a sales meeting in 2005. The group included TMS, AMS, Money Tree Merchant Services and CardReady International.

Hailed as an innovative approach to growth, members were free to distinguish themselves through individual sales programs while enjoying the efficiencies of shared back-office functions at TMS' Colorado headquarters. Over time, the limited, nonexclusive relationship between TMS and AMS soured. And when TMS sought a new, exclusive agreement, AMS refused. Claims and counterclaims ensued.

The resolution

Under the terms of the binding resolution, TMS will pay AMS amounts due or becoming due under pre-existing sales and residual release agreements. TMS will also stop accepting new business and marketing under AMS' name by Oct. 1, 2007.

AMS agreed to drop its claims against TMS and to pay amounts due to TMS resulting from reprogramming of certain merchant accounts. AMS also confirmed its nonsolicitation obligations regarding merchants boarded under the "Advanced Merchant Services" program operated by TMS.

The agreement ends a battle that was closely watched throughout the industry.

"We are very pleased with the results of the settlement to this litigation," Matt Freedman, TMS Chief Operating Officer, said. "And we are very happy to have achieved an amicable end to this situation."

Jason Felts, President of AMS, said that while the settlement was not perfect, it was a resolution "that all could at least accept and move it out of the courts," allowing everyone to move forward.

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:

North American Bancard | USAePay | Impact Paysystems | Electronic Merchant Systems | Board Studios