News

Wells Fargo to use Visa for ATM transactions

October 20, 2003

SAN FRANCISCO - Wells Fargo & Co. says it will use Visa's Plus network rather than MasterCard's Cirrus ATM network or the Starnetwork for its ATM transactions.

Wells Fargo, the nation's second-largest debit card issuer, also will use Visa's Interlink network for point-of-sale transactions and will keep Visa as its primary brand for credit and debit cards.

According to a Wall Street Journal report, Wells is expected to make the switch when its contract with Concord EFS, owner of the Star network expires in 2004.

The report said that Wells Fargo's decision to give Visa business that it had been awarding to Concord, a payments company that has agreed to be acquired by First Data Corp, is a win for Visa in a year in which the credit-card brand was rocked by litigation and tension with its member banks.

According to the Wall Street Journal, the decision heightened concerns among some industry executives and analysts about whether First Data would be able to complete its pending $7.1 billion deal with Concord, which has had trouble retaining some bank customers. As many as eight more of Concord's big bank contracts are up for renewal at the end of 2004.

However, other observers suggested the loss of Wells Fargo could potentially help the deal clear regulatory hurdles because it indicates robust competition in the payments industry.