American Express (NYSE: AXP) and First Data Corp., a global leader in electronic commerce and payment services, today announced the signing of an agreement whereby First Data will offer American Express Card acceptance as part of an integrated solution for small and medium-sized merchants. Specific terms and conditions of the agreement are not being disclosed.
Under this unique arrangement, American Express will retain the acceptance contract with participating merchants, establish merchant pricing, and receive the same transactional information it does today. First Data will provide payment processing services to merchants on behalf of American Express for American Express card transactions under the new agreement. New merchants who sign up for the program will receive an easy, cost-effective, all-in-one solution with the convenience of a single source for statements, settlement and customer service for all major card brands. The program will be available to merchants that are new to American Express Card acceptance in the second quarter of 2008.
"First Data continues to bring innovation to the marketplace that is focused on customer-based solutions," said Brian Mooney, president of First Data Merchant Services. "Through our relationship with American Express, merchants will benefit from a single payment for all major card transactions, consolidated statements, a single point of contact for all customer service, and a one stop shop for all their payment needs."
"This innovative program with First Data offers small to mid-size merchants the choice of a new way to streamline payment acceptance so that they can focus more time on serving customers and growing their business," said Kim Goodman, executive vice president, Merchant Services North America, American Express. "Consumers will also enjoy the convenience of being able to use the American Express Card at even more locations and the opportunity to earn valuable rewards whenever they use their Card."