CIBC has signed a ten-year outsourcing agreement with Georgia-based payments outfit Total System Services (TSYS) for its portfolio of five million Visa accounts.
Under the agreement, CIBC's Visa portfolio will be converted to TSYS' TS2 advanced card processing system in early 2003.
Christine Croucher, executive vice president of the card products division for CIBC, says: "TSYS is a world-class provider of innovative payment services, and a company that we believe will continue to lead in this area. We have every confidence that TSYS will manage a successful conversion that will be seamless for our clients."
It is estimated the deal will bring TSYS market share in Canada from 38 per cent to 51.7 per cent of the country's total 23.8 million Visa accounts.
Earlier this year, the bank contracted with TSYS for the processing of its new entourage line of American Express products, including Canada's first nationwide smart card.