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Bank of America Corp. and First Data Corp. announced today the creation of a merchant processing joint venture, Banc of America Merchant Services LLC. The new venture would offer a variety of advanced-payments capabilities to merchant clients, including handling prepaid cards, mobile services, loyalty programs, e-commerce and checks, and standard debit and credit card processing, the companies said. Thomas Bell, First Data chief strategy officer and president of its financial services division, was named chief executive of the joint venture. During a conference call with reporters this morning, Bell said discussions with BofA began more than a year ago. First Data Corp. owns approximately 48.5% of Banc of America Merchant Services LLC and Bank of America Corp. owns 46.5%; the rest of the joint-venture company is owned by Rockmount Investments LLC. First Data brings its extensive payments technology to the partnership, along with 140,000 merchant customers. BofA brings 240,000 clients and its ability to refer new customers. The joint venture that First Data had with JPMorgan Chase & Co., called Chase Paymentech, which dissolved last year (CardLine, 11/3/08), largely had serviced the 140,000 merchants First Data is putting into the new joint venture. Chase continues to operate Chase Paymentech on its own. "For our clients, the most important transaction they have occurs the moment their customer pays them for what they do. This alliance provides stronger payments-acceptance capabilities as well as enhanced business-reporting tools and a better experience for their customers," Catherine P. Bessant, president of BofA's global product solutions group, said in a press release. First Data has a long history of forming similar joint ventures with banks, though it unwound in November one of its largest when Chase bought out its 49% stake in Chase Paymentech Solutions LLC.
