TSYS today announced that it has finalized a master services agreement, with a minimum six year term, with Bank of America to provide processing services for its consumer credit card portfolios in the U.S.
In addition, TSYS will continue to process Bank of America's commercial credit card portfolios in the U.S. and Internationally.
Bank of America will utilize TSYS' core payments engine -- TS2(R) -- as well as TSYS' customized processing solutions to include risk and financial management and business intelligence delivered through a dedicated support team. TSYS currently processes Bank of America's commercial and small business card portfolio on its TS2 platform, and that relationship will continue under the new agreement.
"We are thrilled that Bank of America has decided to bring their consumer card processing business to TSYS," said Philip W. Tomlinson, chairman and chief executive officer of TSYS. "We have managed various aspects of their business over the years, and they are one of our most respected clients. This reinforces my belief that TSYS brings value to institutions of all sizes from community banks and credit unions to regional institutions and global banks."
TSYS plans to complete the conversion of Bank of America's consumer card portfolio from its in-house processing system in mid-2014. Other terms of the agreement are not being disclosed. Following the processing term, the agreement provides Bank of America the option to use the TS2 software pursuant to a license under a long-term payment structure for purposes of processing its consumer card portfolio.