Chase, First Data to Split Paymentech

JPMorgan Chase and First Data Corp. announced yesterday they would end their card processing joint venture Chase Paymentech Solutions by the end of the year, with each operating separate portions of the business.

Paymentech reports it is the world’s largest merchant acquirer, signing up merchants to card processing contracts and servicing the deals. In 2007, Paymentech processed nearly 20 billion transactions with more than $719 billion in card volume. The firm claims more than 600,000 merchant clients in nearly 1 million locations around the word.

Chase will retain 51 percent of Paymentech, its Canadian and European operations, its Dallas headquarters and most of the company’s employees. Chase will continue to run the merchant acquiring side of the business under the name Chase Paymentech.

First Data will provide transaction processing through its network. It will retain 49 percent of the company including its independent sale organization (ISO) and agent bank unit. Many of the staff will be integrated into First Data’s existing merchant acquiring business, according to a press release.