Discover Financial Services LLC, a business unit of Morgan Stanley (NYSE:MS), and First Data Corp. (NYSE:FDC), a global leader in electronic commerce and payment services, today announced the signing of an agreement whereby First Data will offer Discover Network card acceptance as part of an integrated service to small and medium-sized merchants.
Specific terms and conditions of the agreement are not being disclosed.
Under this agreement, First Data will provide processing services to merchants for Discover Network acceptance that promotes a broader range of payment options at the point-of-sale. Merchants, such as restaurants, retailers, and specialty shops, will receive an easy, cost-effective, all-in-one payment processing solution with the convenience of a single source for statements, settlement, and customer service. First Data sales channels will have full responsibility for pricing, processing, settlement, risk management and customer service for the merchant accounts.
"Today, merchants are managing separate providers which increases complexity and may impact costs as they struggle to balance multiple funding sources and statements," says John Shlonsky, president of First Data's Merchant Alliance Services. "Together with Discover, we will simplify and integrate payment acceptance so that small and medium-sized merchants can spend more time managing their business than they do managing their payments."
Merchants will benefit from Discover Network card acceptance as early as this summer, when First Data begins pilot programs in selected geographic areas. First Data expects to offer the solution on a wider scale during the fourth quarter of this year.
"Our agreement with First Data represents another important step we are taking to build on our strong relationships with merchants," said Harit Talwar, executive vice president of Discover Network. "Small to mid-sized merchants told us they want a streamlined, integrated processing package that includes Discover Network card acceptance. This agreement helps us fill that need by providing them with the more complete acceptance solution they are seeking."