News

Visa USA, First Data to settle payment-processing dispute

July 4, 2006

SAN FRANCISCO - Visa USA Inc. and First Data Corp. announced July 5 that they have agreed to settle a legal dispute, pending since 2002, over the processing of Visa payment card transactions.

According to a news release, First Data and Visa have agreed to focus on streamlining the payments-processing business. Visa is expected to provide financial support to pursue mutual business opportunities and cost cutting initiatives that will drive new innovation, reliability, security and new-merchant acceptance. First Data will transition existing private arrangements between itself and Visa-member financial institutions onto VisaNet.

Specific terms of the settlement were not disclosed.

"Visa's continued success is reliant upon our maintaining and growing business relationships," Visa chief executive John Philip Coghlan said.

New leadership at Visa and First Data is facilitating the resolution. Coghlan and First Data CEO Ric Duques acknowledge the importance of putting the litigation behind and restoring a focus on working together to identify and build future business opportunities.

"By resolving this matter, both First Data and Visa can move forward and work together to create new business opportunities for all stakeholders in the payments business," Duques said. "Card issuers, merchants and cardholders alike can expect more focus on creating choice, convenience and innovation in the payments marketplace."