Chicago-based ABN Amro North America (Aana) and National Processing Company have entered into a joint venture outsourcing agreement for the bank's merchant services division.
Aana formed ABN Amro Merchant Services (AAMS) when it combined the merchant credit card processing businesses of its Michigan-based affiliate Michigan National Bank and Chicago's LaSalle Bank. AAMS processed for over 34,000 merchants, generating approximately 115 million transactions and $7.0 billion in credit card sales in 2000.
Under the terms of the agreement, NPC will provide AAMS with all merchant-processing services including both authorisation and settlement of all card-based transactions. In addition, NPC has acquired a 70 per cent interest in AAMS for $48.5 million with ABN Amro North America subsidiaries owning the remaining shares.
Thomas Wimsett, president and chief executive officer of NPC, says: "While AAMS will operate its own distribution channel, we expect it will aggressively expand the number of sales representatives to ensure that all 690 Aana-affiliated branches are thoroughly supported."