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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.





