DENVER & NEW YORK (Business Wire) -- Chase Paymentech Solutions, LLC Delivers Greater Processing Capabilities Through Expanded Direct Sales, Branch Network; Chase Continues STAR(R) Network Relationship
JPMorgan Chase & Co. (NYSE:JPM) and First Data Corp. (NYSE:FDC) announced today that they have completed the agreement to integrate the companies' jointly owned Chase Merchant Services and Paymentech merchant businesses, to be operated under the name of Chase Paymentech Solutions, LLC. The joint venture will be owned in the aggregate -- 51 percent by Chase and 49 percent by First Data. Oversight will be provided through a board on which the owners will be equally represented.
Chase Paymentech Solutions will be directed by a combined executive team led by Michael P. Duffy, Paymentech's current president and chief executive officer. Duffy brings two decades of payments industry experience to this role.
Chase Paymentech Solutions will provide merchants with the leading products and processing capabilities of Paymentech, Chase Merchant Services and First Data, combined with extensive employee industry expertise. Chase Paymentech Solutions brings together the recognized leadership of Chase Merchant Services in national, travel and entertainment merchant processing with the established expertise of Paymentech in Internet, catalogue, and recurring billing merchant processing.
As part of the realignment, Chase Paymentech Solutions has entered into a five-year processing relationship with First Data Merchant Services. Chase Paymentech Solutions will process approximately 13.1 billion transactions annually with more than $500 billion in annual bankcard volume in both the United States and Canada.
"Both companies are market leaders and their integration creates an excellent opportunity to provide merchants with the best array of products and services in the industry," said Bill Campbell, chairman, Chase Card Services.
"Today's agreement to integrate the merchant businesses builds upon a 25-year relationship between Chase and First Data, a relationship that has advanced the payment industry and delivered innovation and choice to merchants and consumers," said Charlie Fote, chairman and chief executive officer, First Data Corporation.
"Building on the extraordinary strength of both ventures, Chase Paymentech Solutions will bring the most innovative products and high quality service to our clients," said Duffy.
Also announced today, Chase has agreed to continue to be a member of First Data's STAR(R) Network (STAR(R)) for a component of its debit business. STAR is an industry leader in delivering PIN-secured debit access through 1.7 million ATM and point-of-sale locations coast to coast.
About Chase Paymentech Solutions
Chase Paymentech Solutions, LLC, headquartered in Dallas, Texas, will be the nation's largest financial transaction processor for businesses accepting payments via traditional point of sale hospitality, Internet, catalog and recurring billing. The privately held company is an end-to-end processor for merchants of all sizes and industries and is a result of the 2005 integration of the former Paymentech and Chase Merchant Services. The integrated companies will process approximately 13.1 billion transactions annually with more than $500 billion in annual bankcard volume in both the United States and Canada.
About First Data
First Data Corp. (NYSE:FDC) is a leading provider of electronic commerce and payment solutions for businesses and consumers worldwide. Serving 4.1 million merchant locations, 1,700 card issuers and millions of consumers, First Data powers the global economy by making it easy, fast and secure for people and businesses around the world to buy goods and services using virtually any form of payment. The company's portfolio of services and solutions includes credit, debit, private-label, smart and stored-value card issuing and merchant transaction processing services; money transfer services; money orders; fraud protection and authentication solutions; check guarantee and verification services through TeleCheck; as well as Internet commerce and mobile solutions. Western Union and its subsidiary, Orlandi Valuta, together make up one of the world's largest money transfer networks with approximately 238,000 Agent locations in more than 200 countries and territories. The company's STAR Network offers PIN-secured debit acceptance at 1.7 million ATM and retail locations. For more information, visit www.firstdata.com.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE:JPM) is a leading global financial services firm with assets of $1.2 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. has its corporate headquarters in New York and its U.S. consumer and commercial banking headquarters in Chicago. Under the JPMorgan, Chase and Bank One brands, the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients. Information about the firm is available at www.jpmorganchase.com.
FDC-1
First Data
Media:
Rodney D. Bell, 303-967-6547
rodneyd.bell@firstdata.com
Investors:
Gary Kohn, 303-967-8276
gary.kohn@firstdata.com
or
Chase
Credit Card Media:
David Chamberlin, 302-282-5547
david.j.chamberlin@chase.com
Retail Banking Media:
Tom Kelly, 312-732-7007
thomas.a.kelly@chase.com
Investors:
Julia Bates, 212-270-7318
Julia.b.bates@jpmorgan.com
or
Chase Paymentech Solutions, LLC
Media:
Laura Lambeth, 214-849-3523
laura.lambeth@paymentech.com
© Business Wire
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