News

Wachovia picks NYCE for ATM transactions

August 27, 2003

NEW YORK -- Wachovia Corp. has chosen Visa International Inc.and NYCE to handle its debit card and ATM businesses.

Wachovia said that NYCE, which is majority owned by First Data Corporation, will provide network access for its ATM transactions. Visa DPS will handle signature-based debit processing, while Interlink will handle PIN-based point-of-sale transactions.

According to a Reuters report, terms of the deals were not disclosed.

Wachovia will drop Concord EFS Inc.'s Star network, which it now uses along with NYCE for online debit and ATM processing.

According to a Concord news release, it had received notification by Wachovia of its desire to move its network access business prior to its current contract expiration date of Dec. 31, 2004. Concord does not expect its earnings in 2003 or 2004 to be affected by the switch due to the continuing payment obligations contained in Wachovia's contract.

Wachovia made its choices after an 18-month review that began after First Union Corp. bought it in 2001, taking the Wachovia name. First Union and Wachovia had different network relationships and different logos on cards they issued, according to Reuters.

First Data is awaiting U.S. Department of Justice approval to buy Concord, in a merger valued at nearly $7 billion when it was announced in April. (See related stories First Data, Concord reach terms for acquisition; EFT megamerger may impact ATM fees; First Data takes go-slow approach to Concord merger; First Data refiles proposal to acquire Concord and Justice department extends First Data merger investigation)

The bank said it expects to implement new network arrangements over the next several months. It said cardholders will be able to use their cards normally, and can expect new cards by mid-2004.

Wachovia has about 7 million debit card holders, making it the fifth-largest U.S. debit card provider.