INDUSTRY BRIEFS

Processing Climate Heats Up. Watch for more cutthroat competition among processors as merchant processing contracts come up for renegotiation early this year. Louisville, Ky.-based NPC, a provider of merchant processing services, just entered a multiyear contract with Financial Alliance Processing Services Inc., also of Louisville. Financial Alliance is a provider of merchant credit and debit card financial services, serving more than 60,000 retailers and 347 financial institutions. NPC officials say the alliance represents some $61 million in revenue over the life of the services contract. The Financial Alliance contract had been with First Data Corp.. Meanwhile, The Mechanics Bank, a $1 billion-asset bank in Richmond, Calif., signed a processing contract with U.S. Processing Inc. (USPI), of Milwaukee, the terms of which have not been undisclosed. USPI will provide automated teller machine (ATM) terminal driving and MasterCard's Master Money debit card services. The Mechanics Bank has 23 Interbold ATMs. USPI will be using an on-line interface to the bank's in-house Unisys mainframe, running an Information Technology Inc. (ITI) Premier II software system. ITI, of Lincoln, Neb., a core application provider, developed an ISO8583 interface to USPI that will allow for on-line authorization of both ATM and Master Money activity between the processor and the bank. (Elaine Jacobsen, USPI, 414/354- 5091.) More Services from New Alliance. Norcross, Ga.-based InterCept, a provider of connectivity to most regional and national networks, expects its recent acquisitions of Atlanta-based Data Services and Norcross-based ProVesa to broaden its appeal as a full-service financial services company. All three companies will be consolidated into The InterCept Group to provide financial institutions with a single source for electronic funds transfer, data processing and equipment needs. Financial terms of the acquisitions were not disclosed.

ProVesa specializes in third-party data processing for the community banking industry. It also offers such ancillary products and services as branch automation, optical disk storage and retrieval and checking imaging. Data Services is an equipment supplier and a first- and third-party maintenance service provider. It specializes in supplying and maintaining bank equipment, including automated teller machines (ATMs), proof machines, teller equipment, vault and under-counter equipment, and personal computers. (Denise Saylor, The InterCept Group, 770/242-7171.) EFT Precursor Celebrates Birth. Englewood, Calif.-based Western Union Financial Services Inc., a unit of First Data Corp., is marking the 125th anniversary of the inauguration of the consumer rapid money transfer service. The company expects to remain prosperous into the new year through new applications of the money transfer service, including Western Union Quick Collect, which allows creditors to receive timely payment on past-due accounts. This year, the company will handle more than 30 million money transfer transactions. (Peter Ziverts, Western Union, 303/488-8017.) Phone Card Opportunities Grow. Brookfield, Wis.-based Fiserv Forms & Graphics, a subsidiary of Fiserv Inc., formed an alliance with Vancouver, Wash.-based BLT Technologies to design, produce, market and distribute prepaid phone products to financial institutions and commercial accounts. Fiserv expects phone cards to benefit financial institutions by allowing them to sell the products through automated teller machines and integrate the services onto their existing debit and credit cards. Fiserv Forms & Graphics plans to offer a variety of delivery and packaging options on the card products. (Roy Isaksen, Fiserv, 414/860-8613.)