Bank of America reverses decision, stays with Star

MEMPHIS, Tenn. -- Bank of America has reversed its earlier decision to pull out of the Star Systems network and signed a long-term contract with Concord EFS (NASDAQ: CEFT), operator of Star, to brand all of its debit cards and ATMs in 17 states with the Star logo.

Bank of America expects to begin placing the Star mark on its cards and ATMs later this month, according to a news release.

The new contract also extends a previous agreement between Bank of America and Concord. for Concord to provide processing services for approximately 1,100 BofA ATMs in retail locations.

"The Star brand has significant value for the Bank of America ATM network and most importantly, our millions of cardholders nationwide," "said Bond R. Isaacson, payments executive at Bank of America.

"As a long-standing participant in the Star network, Bank of America has been a part of Star's history and growth, so we're especially pleased that it has shown such confidence in our business model," said Edward A. Labry III, Concord president and Star chief executive officer.