Bank of America and First Data have announced "the formation of a new company that will deliver next-generation payments solutions to merchants ranging from small business to commercial and corporate clients worldwide."

According to the two companies, Banc of America Merchant Services, LLC will provide clients "with the most comprehensive suite of innovative payments solutions including credit, debit and prepaid cards to merchant loyalty, check and eCommerce payments." READ MORE

In an article titled "Ex-CEO of First Data Corp., makes a power play in Denver" in the Denver Post, Aldo Svaldi writes about Charlie Fote, ex-CEO of First Data Corp., and his plans to launch a new holding company later this year that Fote says "will look like Western Union and First Data put together."

First Data has announced that Wells Fargo has expanded its agreement for card processing services and will move its newly-acquired Wachovia credit card portfolios to First Data for card processing services. READ MORE

First Data Corp. has reported financial results for the first quarter 2009. Revenues were $2.1 billion, down 2% year over year. Adjusted earnings before interest, taxes, depreciation and amortization were $491 million, down 15%.

FDC's operating profit for the quarter was $30.4 million, down 85% year over year. After paying interest expense on its debt of $448 million, the company reported a net loss of $231 million for the quarter.

"Our revenue base held steady in the quarter as we added new merchant and bank customers," said Michael Capellas, chairman and CEO of First Data. "We will continue to invest in new product development to fuel long-term growth while driving cost efficiencies to sustain profitability."

A webcast and presentation are available online. In its presentation, First Data noted that the volume of merchant transactions it handled in the first quarter fell 14% compared to 1Q2008.

First Data has published a new white paper, Leveraging Secure IP-Based Payment Connection Network To Reduce Costs and Increase Customer Satisfaction, that discusses "the emergence of secure IP transaction networks that leverage the strengths of conventional IP connectivity while addressing its inherent shortcomings. Learn why these networks are the transport method of choice for payment processing, and why merchants of all sizes should consider migrating their payment transactions—from dial-up or conventional IP solutions—to a secure IP network."

First Data has launched PayCargo, a first global online freight payment system for the maritime shipping industry. According to FDC, "the proprietary solution PayCargo offers allows shippers, carriers and freight brokers of all sizes to settle accounts faster and more safely than ever before. The PayCargo system is an electronic invoice presentment and payment (EIPP) tool that helps reduce the cost of approving and disputing payments. It also helps prevent expensive demurrage and storage charges that often result from inefficient payment processes and procedures." READ MORE

First Data has announced that it has entered into a relationship with Visa in Canada, becoming the first merchant acquirer in the country to directly participate in all three major schemes: Visa, MasterCard and Interac. READ MORE

INSIDE Contactless and First Data have announced signing a three-year agreement to develop contactless payment stickers, which First Data will market as GO-Tag products. According to the companies, INSIDE will supply MicroPass payment sticker prelams exclusively to First Data-qualified card manufacturers for production. READ MORE

In its 2008 earnings release this morning, First Data Corp. announced that on Dec. 31, 2008 First Data and Wells Fargo extended their merchant alliance joint venture, Wells Fargo Merchant Services, for five years. In connection with the transaction Wells Fargo increased its ownership in WFMS by paying First Data a cash consideration resulting in First Data and Wells Fargo owning 40% and 60% of WFMS, respectively, as of Dec. 31, 2008.

First Data held a webcast this morning - an accompanying presentation is available online.

First Data and American Express have announced a new merchant services agreement in Poland where First Data will become the exclusive merchant acquirer and merchant processor for American Express Card transactions in Poland. READ MORE

First Data Corp. has a growing collection of white papers in its Thought Leadership Library covering a wide range of payments-related topics. The latest papers include:

• One-to-One Customer Risk Management by Krista Tedder - Product Owner, Risk Management and Fraud Solutions
• Bill Payment Trends: Major Shifts in Consumer Behavior Require Comprehensive Planning

First Data and Urban Trust Bank have announced that Urban Trust Bank will offer the Money Network payroll card and related prepaid products to businesses and consumers. READ MORE

First Data Corp. has a growing collection of white papers in its Thought Leadership Library covering a wide range of payments-related topics. The latest papers include:

• Mobile Account Management: The Mobile Commerce Enabler - by Barry McCarthy, President, Mobile Commerce Solutions
• Innovations in Payments and Decoupled Debit Reshape the Power of Merchant Loyalty Programs - by Timothy Horton, Vice President of Product Management
• Financial Institutions Must Rethink Their Remote Deposit Capture Support Models - by Kathleen Houseman, Vice President, Remote Deposit Capture Solutions, and Mark Nevle, Director, Product Development

First Data has announced signing a partnership agreement with WestLB to launch a new business, First Merchant Solutions, to provide card acceptance services for retailers in Germany and across Europe. "As part of this new venture, WestLB, a German regional state bank with a strong European presence, will provide the licenses and payment services infrastructure while First Data will provide a comprehensive range of merchant acquiring services." READ MORE

First Data has announced the introduction of two new point of sale (POS) terminals, the FD300 and the FD200. "Developed based on merchant feedback, these devices offer unique capabilities that expand First Data's proprietary terminal line. The FD300 is designed for operations that have more than one business at the same location, and the FD200 is an all-in-one device that supports multiple payment types." READ MORE

Shell Oil Products US has announced it has launched the Shell Saver Card - saying it is "the first gasoline retailer to make an electronic check payment method available to consumers nationally. This latest Shell payment option provides consumers with a convenient way to pay for purchases with a direct link to a checking account and savings on each gallon of fuel pumped at Shell stations." READ MORE

First Data Corp. has reported financial results for the third quarter 2008 - with consolidated revenues growing 4% to $2.2 billion. FDC's strongest revenue growth was in international with a 19% increase in revenue. Its weakest segment, Financial Services, saw revenues decline 5%. Merchant services grew 6%. A webcast is scheduled to discuss the results later this morning.

Shell Oil Products US has announced that it will be "the first major gasoline retailer to nationally launch an electronic check payment method when the Shell $aver Card becomes available to consumers on January 5, 2009. The Shell $aver Card will provide a convenient, new way to pay for purchases through a direct link to a consumer’s checking account, and offer a savings on each gallon of fuel pumped at participating Shell-branded stations. Shell wholesalers and retailers will benefit from the Shell $aver Card’s flat, per-transaction merchant service fee that is lower than third-party debit and credit cards."

Also, according to Shell, First Data will be handling the $aver Card transactions including using FDC's TeleCheck check verification services. READ MORE

First Data and InComm have announced that "they have mutually agreed to terminate the planned acquisition of InComm. Instead, First Data and InComm have signed a distribution agreement and will continue to support their joint customers with prepaid card processing, program management and a distribution network that allows First Data and its merchants to sell prepaid products in InComm prepaid card malls." READ MORE

Chase Paymentech has announced the completion of its transition from a joint venture with First Data Corp to a wholly-owned unit of JPMorgan Chase. The assets of the joint venture owned by JPMorgan Chase have been integrated into the bank as a part of its card services division and will continue to operate under the name Chase Paymentech. READ MORE

First Data has named Robert P. DeRodes as its chief technology officer (CTO). DeRodes, 58, will join the company’s executive management team and report directly to Chairman and Chief Executive Officer Michael Capellas. READ MORE

First Data Corp. has filed a prospectus with the SEC regarding an exchange offer being made to debt holders to exchange unregistered outstanding notes issued as part of its going private a year ago for freely tradable notes that have been registered.

Steve Hamm writes for Business Week about First Data's GO-Tags for contactless payments - "demoed this week at the Democratic National Convention in Denver, where First Data is based. The company demonstrated its newest technology, called GO-Tag, by distributing small buttons to 5,000 journalists and delegates. When they tapped the buttons on electronic sensors at concession stands in Denver's Pepsi (PEP) Center, they got free snacks and drinks."

First Data has announced that "during this year's Democratic National Convention (DNC), Denver's Pepsi Center will serve not only as a focal point of American politics, but also as an arena for the future of how people will pay for goods and services. Next week, First Data will introduce a new payment technology to thousands of select media and delegates attending the DNC. Beginning August 25 through August 28, media and delegates receiving a limited edition pin from First Data can use the commemorative pin as a payment device to purchase refreshments up to $10 in value at participating Pepsi Center concession stands." READ MORE

In a post titled "Could Mobile Payments Get a Boost from Lowly Stickers?", Jim Bruene writes on his NetBanker blog about contactless payment stickers - "It's a quarter-sized sticker you plop on the back of your mobile phone making it instantly payment enabled."

First Data has published "Contactless Payments: Consumer Trends and Usage Preferences" saying that "the first step toward mobile commerce is the introduction of consumer-friendly form factors (i.e. a sticker attached to a person’s mobile device or ID badge; a wristband; or a key fob)." FDC calls its contactless stickers GO-Tags.

Click here for a Google search that will find more articles about contactless stickers.

First Data Corp. has reported its financial results for the second quarter of 2008. Consolidated revenues were up 10% to $2.2 billion. The adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were up 7% to $653 million.

"Our focus on investment in product development is starting to pay off with significant customer wins in multiple segments," said Michael Capellas, Chairman and Chief Executive Officer of First Data. "Despite difficult economic conditions, we continued to grow revenue and improve profitability."

First Data Corp. has announced that it has entered into a new payment processing agreement with Nordstrom fsb, a wholly owned subsidiary of Nordstrom, Inc. and a federally chartered thrift savings bank.

"The seven-year agreement calls for First Data to provide card processing, call center and back office automation tools, fraud and risk management, customer analytics as well as e-statements and email alerts for Nordstrom's entire card portfolio including Nordstrom Visa, private label credit and debit cards and commercial cards for Nordstrom employees. The portfolio totals about 4.5 million card accounts on file. Financial terms of the agreement were not disclosed. READ MORE

We have received news of the following recent management changes:

• Phil Wall has been named executive vice president and chief financial officer at First Data Corp., replacing Kim Patmore. Previously, Wall served as senior vice president of finance for First Data’s international operations.
• Chuck Fillinger has been named an associate at The Strawhecker Group. Previously, Fillinger worked at First Data Corp. for 23 years, mostly recently as Vice President of Product and Business Development.

Dave Birch interviews John Chaplin for his latest Digital Money Forum podcast. "John has worked with a number of major companies on their European payments business and he is currently serving as European Payments Adviser to First Data International where he is heavily involved in SEPA strategy."

Frontier Airlines and First Data have announced "an agreement with respect to the continued processing of Frontier's Visa and MasterCard charges without any interruption. The agreement provides First Data with appropriate protection for continuing its processing work for customer credit card purchases on a "business as usual" basis." READ MORE