SunTrust And First Data Launch New Alliance Program Expanding Upon Current Payment Processing Relationship
The New SunTrust Merchant Services will Target the Southeast and Mid-Atlantic
Atlanta, GA – April 1, 2002 – SunTrust Banks, Inc. (NYSE: STI) and First Data Corp. (NYSE: FDC) have finalized an agreement to launch a strategic business alliance to provide merchant credit and debit card processing services to business customers throughout the Southeast and Mid-Atlantic States.
The joint venture significantly builds upon the existing payment processing relationship between SunTrust and First Data Merchant Services. The new entity, SunTrust Merchant Services, LLC, is projected to encompass approximately $20 billion in annual sales volume, ranking it within the top 12 merchant bankcard organizations in the nation.
First Data will be responsible for management, operations, risk management and sales activities for the new alliance. SunTrust will support marketing efforts through all of its sales channels, including its 1,200 retail branch locations and treasury management groups. First Data and SunTrust will share the revenue generated from the new enterprise. The new alliance relationship has received all regulatory approvals.
The expanded portfolio will service approximately 67,000 merchant locations. SunTrust’s 23,000 merchant outlets currently processing through First Data Merchant Services are a part of the new alliance. In addition to state-of-the-art payment-processing services and account management support, First Data Merchant Services has also contributed merchant relationships from other portfolios as well as sales and management personnel. The new alliance will have approximately 100 business development management and client support personnel, and may add staff through this year to further strengthen the alliance’s business development efforts. SunTrust Merchant Services, LLC will also maintain an Atlanta-based sales and client management office.
“This development is consistent with our goal of seeking operating efficiencies while maintaining a high-level of customer service. By leveraging the power of the SunTrust franchise and our ability to build strong customer relationships, we will continue to offer a full range of merchant services to customers, while benefiting from the economies of scale and skill of First Data,” said Ron Eastburn, CEO of SunTrust BankCard, N.A. “We anticipate our customers will benefit, over time, with access to a wider array of products and services.”
“The relationship with SunTrust creates a merchant services market leader in the Southeast and mid-Atlantic,” said Pam Patsley, senior executive vice president of First Data Corp. and president of First Data Merchant Services. “The prominent brand reputation of SunTrust, joined with First Data’s scale and relationship management capability, forms a powerful acquiring force within SunTrust’s market. We expect to significantly grow this business.”
“The creation of SunTrust Merchant Services, LLC marks another major commitment to First Data’s merchant alliance strategy,” said Patsley. “Financial institutions gain significant competitive advantages when they expand their relationships with First Data across more of their enterprise.” First Data will continue to provide card-issuing back-office processing for commercial card and debit card transactions as well as money order services for SunTrust.
About SunTrust Bank
SunTrust Banks, Inc., headquartered in Atlanta, Georgia, is one of the nation’s largest commercial banking organizations. As of December 31, 2001, SunTrust had total assets of $104.7 billion and total deposits of $67.5 billion. The company operates through an extensive distribution network in Alabama, Florida, Georgia, Maryland, Tennessee, Virginia and the District of Columbia and also serves customers in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the company provides credit cards, mortgage banking, insurance, brokerage and capital markets services. SunTrust’s Internet address is www.suntrust.com.
About First Data Merchant Services
First Data Merchant Services, a subsidiary of First Data Corp., annually processes and settles more than 9 billion transactions for more than $490 billion in sales volume from 2.8 million merchant locations. Through partnerships and relationships with leading financial institutions and independent sales organizations, First Data Merchant Services delivers industry leading electronic payment and e-commerce services and solutions. For more information, please visit www.firstdata.com.