First Data Downplays Loss of Chase

Virgil Larson reports in the Omaha World-Herald on the announcement of First Data Corp.'s loss of JP Morgan Chase's card issuing processing business to TSYS.

First Data declined to talk about the impact that the loss of a major client and 17 percent of First Data's accounts would have on its Omaha operations, which employ 6,300 people. The number of cards being lost appears to be disproportionately higher than the revenue involved. More than a year ago, slightly more than half the number of cards was said to represent about $150 million, about 1 percent of the revenue of First Data's Card Issuing Services division, which includes First Data Resources in Omaha.

Note: $150 MM in revenue actually represents about 10 per cent of FDC's card issuing services division revenue, not 1% as Larson reports.