Chase acquires Paymentech commercial card business
21 November 2000 | 3398 views | 0
Chase Manhattan is to purchase the operations of the commercial credit card-issuing subsidiary of Paymentech.
The Paymentech unit, based in Salt Lake City, is a Visa and MasterCard commercial card issuer. The transaction includes a commercial card portfolio totaling approximately 230,000 cards and approximately $200 million in receivables. The transaction is expected to close in the first quarter of 2001, pending regulatory approval.
Richard Srednicki, Chase executive vice president in charge of its credit card business comments: "This strategic purchase brings us the industry's first robust Internet-based administration and reporting platform."
He says Chase commercial card customers will be able to use the system to access a suite of Web-based account management, expense reporting, electronic statement and payment tools.
Lorraine Hricik, EVP, Chase treasury solutions, adds: "Now, Chase will not only be a premier provider of commercial cards, but our new capabilities will allow Chase to offer our customers improved e-procurement solutions to streamline payment, reconciliation and data integration for business-to-business purchases."