DENVER - First Data Corp. (NYSE: FDC) says that it has been notified by JPMorgan Chase of its intention to move its card processing business from the First Data system.
Chase is moving its credit card processing business, for some 87 million cards, from First Data to Columbus, Ga.-based Tsys. The Georgia company has been processing about 51 million Bank One cards since March of 2003. In January, Chase and Bank One announced plans to merge.
"First Data will continue to work with JPMorgan Chase to ensure a smooth transition," said Charlie Fote, First Data's chairman and chief executive officer, noting that First Data expects the move to occur within 18 months.
First Data has suffered other recent setbacks. Several other financial institutions, including Bank of America and Wells Fargo, have announced their intent to leave the Star network, owned by First Data, when their contracts expire. The FIs will use Visa as their primary network for ATM and point-of-sale transactions.
According to earlier published reports, industry executives and analysts have expressed concern about First Data's ability to retain some of its large bank customers. As many as eight more large bank contracts are up for renewal at the end of 2004.
