First Data Corporation - Company Profile

Home About

Web www.companyseek.com

First Data Corp. - Merchant Services - Category Main Page

303-967-8000

6200 S. Quebec Street

Greenwood Village, CO 80111

www.firstdata.com

Sales

$8.4 billion

Business Description

First Data Corp. provides credit card processing, payment services solutions and electronic commerce and payment solutions for approximately 3.1 million merchant locations, 1,400 card issuers and millions of consumers, making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of payment. The Company provides money transfer services through its Western Union and Orlandi Valuta money transfer agent networks that consist of approximately 182,000 agent locations in more than 195 countries and territories. The Company also provides credit, debit, private-label, smart and stored-value card issuing and merchant transaction processing services and check guarantee and verification services throughout the United States and on a more limited basis in the United Kingdom, Australia, Canada, Asia, Mexico, the Middle East and Western Europe.

The Company operates in four business segments: payment services, merchant services, card issuing services and emerging payments. The following provides a brief overview of the segment operations:

Merchant Services Segment
The merchant services segment is comprised of businesses that conducts credit card processing and facilitates the acceptance of consumer transactions at the point of sale, whether it be transactions at a physical merchant location, over the Internet or at an ATM. It is headquartered in Melville, New York and has significant operations in Hagerstown, Maryland, Houston, Texas and Coral Springs, Florida. A brief explanation of the segment’s service offerings is presented below.
• Merchant acquiring—Facilitates the merchants’ ability to accept credit and debit cards by authorizing, capturing and settling the merchants’ credit, debit, stored-valued and loyalty card transactions. Also provides point-of-sale (“POS”) devices and other equipment necessary to capture merchant transactions. A majority of these services are offered through joint ventures or alliance arrangements with major financial institutions.
• Check verification and guarantee services—Verifies against the Company’s proprietary database systems, that a check writer does not have a history of writing bad checks, or guarantees that checks presented to merchants for payment will be collectible.
• Automated teller machine (“ATM”) and personal identification number (“PIN”) based processing—Operates an ATM network and provides transaction processing services such as authorization and settlement to issuers of PIN-based debit cards. During 2003 these services were provided by the Company’s NYCE Corporation (“NYCE”) subsidiary. In conjunction with the United States Department of Justice (“DOJ”) approval of the Concord acquisition the Company agreed to divest its ownership interest in NYCE. In 2004 these services will be provided by NYCE until its disposition and by the STAR® network, which will be acquired through the Concord EFS, Inc. (“Concord”) acquisition (see Concord discussion below). Discontinued operations consist of NYCE’s results of operations.
• Gaming services—Owns and manages ATMs in gaming establishments, provides credit card cash advance and de

Payment Services Segment
The payment services segment is comprised of businesses that provide money transfer services to consumers and businesses whether they be from one location to another or through the issuance of an official check or money order by a bank or other institution. It is headquartered in Denver, Colorado with significant operations in St. Charles, Missouri and has over 182,000 agent locations throughout the world. A brief explanation of the segment’s service offerings is presented below.
• Consumer-to-consumer money transfers—Provides money transfer services to people who need to send or receive cash quickly to meet emergency situations, or to send funds to family and friends in other locations.
• Consumer-to-business bill payment services—Provides services that facilitate transferring payments from consumers to utility companies, collection agencies, finance companies, mortgage lenders and other billers.
• Official checks and money orders—Issues official checks that serve as an alternative to a bank’s own disbursement items such as cashier’s or bank checks, and sells money orders through an agent network of financial institutions and other entities.
• Prepaid services—Develops, implements and manages prepaid stored-value card issuance and processing services for retailers (i.e., gift cards), and provides prepaid phone top-up services.

Card Issuing Services Segment
The card issuing services segment primarily encompasses domestic and international card processing for card issuers. Its headquarters and most significant operations are located in Omaha, Nebraska. A brief explanation of the segments’ service offerings is presented below.
• Debit and Credit Card processing—Provides credit, debit, and private label card processing services to financial institutions and other issuers of cards. Such services include account maintenance, transaction authorizing and posting, statement generation and printing, card embossing, fraud and risk management services and settlement.
• Card processing software—Licenses and provides maintenance for the Company’s VisionPLUS card processing software to financial institutions, retailers and third party processors primarily in international markets.

Emerging Payments Segment
The emerging payments segment consists of a majority interest of approximately 75% in eONE Global, LP (“eONE”) and its subsidiaries discussed herein. eONE is focused on identifying, developing, commercializing and operating emerging payment systems and related technologies in three areas: government payments, mobile payments, and enterprise payments. It is headquartered in Napa, California with its most significant operations in Denver, Colorado. A brief explanation of the segments’ service offerings is presented below.
• Government payments—Provides services to facilitate electronic tax payments to governmental agencies, provides systems and professional services to governmental agencies.
• Mobile payments—Develops mobile payment software and services for the wireless payments market and is being structured to provide transaction processing services for mobile phone carriers opting to participate in the wireless payments marketplace.
• Enterprise payments—Delivers accounts receivable and payable systems and processing services to businesses as well as providing worldwide commercial tax compliance systems and a simplified business tax calculation and compliance process with solutions for sales and use taxes.