Another One Bites the Dust

T hroughout the e-commerce industry, alliances are struck up and shot down as quickly as dot.coms appear and disappear. The latest partnership to part company is that of BankServ and CrossCheck. But this breakup is particularly interesting.

BankServ went on record to state that it was leaving the POS check conversion market completely and focusing its resources elsewhere. This decision in no way reflects on their affiliation with CrossCheck and they found CrossCheck to be a valued partner. CrossCheck issued a statement to all affected merchants informing them of BankServ's check conversion exit and offered them several options, including remaining with CrossCheck by converting their account, and utilizing CrossCheck's standard check approval and guarantee service, or opting to go with another electronic check conversion company partnered with CrossCheck, with CrossCheck assisting either conversion.

Looking back at all the struggles, challenges and adversities that payment solution companies have encountered since e-commerce equaled paydirt, it's easy to appreciate this latest split. Admirably, BankServ set out to do it all. Sadly, that ship has sailed. Quick learners, though, BankServ is trying to evolve its business model. They plan on still seeking new partners in specific areas, as well as looking at existing partners to expand alliances and enhance BankServ capabilities for POS businesses such as ACH processing, FedWire transfers, lockbox and RCK business.

From all this, a question arises: Is BankServ becoming a data utility firm? Stay tuned. The Green Sheet will answer that with an in-depth story on BankServ in the near future.