First Data
Encyclopedia
First Data Corporation is an American payment
processing company headquartered in Atlanta, Georgia
. First Data is a provider of electronic commerce and payment solutions. The company's portfolio includes merchant transaction processing services; credit
, debit
, private-label
, gift
, payroll and other prepaid card offerings; fraud protection and authentication solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at ATM
and retail locations.
In 1980, American Express Information Services Corporation (ISC) bought 80% of FDR. The remaining 20% was purchased in 5% increments each subsequent year until June 1983. First Data Corporation spun off from American Express and went public in 1992. In 1995, the company merged with First Financial Management Corp. (FFMC) and was then organized into three major business units serving card issuers, merchants and consumers. Western Union became part of First Data as a result of the merger with FFMC.
By 1998, First Data was providing transaction processing services not only in the U.S., but also in markets around the world, including the United Kingdom, Australia, Mexico and Canada. The company also began to see significant growth in its network of Western Union agent locations. This set the stage for First Data to become a leading global provider of electronic commerce and payment solutions to businesses and consumers worldwide.
From 2001 through 2005, a period of expansion occurred as First Data acquired companies around the globe and in the U.S., including, in 2001, the acquisition of PaySys International and their globally successful VisionPLUS Payment Software System VisionPLUS
followed by $6.6 billion merger with Concord EFS in 2004, which added the STAR Network and PIN-based debit acceptance at more than 1.9 million ATM and retail locations. Additional acquisitions and strategic relationships included GovOne, the creation of eONEGlobal as a venture capital fund, the acquisition of Paymap, Inc., a company servicing electronic payment products, and the acquisition of Taxware, which would be merged into a new entity, named Velosant to spearhead broad Supply Chain Management initiatives. First Data also established a consumer payments brand which would take Direct Debit offerings to the retail marketplace. First Data further expanded geographically in Europe, Asia and Latin America.
In 2005, First Data was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush
.
On January 26, 2006, First Data announced its intention to spin off Western Union
into an independent publicly traded company through a tax-free spin-off of 100% of Western Union
to First Data shareholders. The spin off occurred as planned on September 29, 2006.
On April 2, 2007 it was announced that Kohlberg Kravis Roberts (KKR) had entered an agreement to acquire First Data (NY Times article) in one of the largest leveraged buy-outs in history, and on October 1, 2007 KKR officially took over the First Data Corporation. Ric Duques retired, and Michael Capellas
, previously the CEO of MCI, Inc., the president of Hewlett-Packard Company, and also the chairman/CEO of the Compaq Computer Corporation was appointed CEO. As a privately owned company, First Data's stock was taken off the New York Stock Exchange
on September 24, 2007. However, the company's LBO was financed with $24 billion in debt, and it remains heavily leveraged. The company continues to maintain investor relations pages on its web site and to publish quarterly financial results. Within two months after the KKR acquisition, the company laid off 1,700 employees across North America, Europe and Australia, about 6% of its workforce.
First Data entered the Ireland market in a joint venture(JV) with Allied Irish Banks plc (www.aib.ie) named AIB Merchant Services on January 18, 2008.
First Data also acquired ICICI Bank
's merchant services business in 2009 for 4 billion Indian rupees ($80 million USD).
The processing platforms maintained by First Data are North(Cardnet), South, Nashville(Envoy), Omaha and BuyPass(Concord/Atlanta).
.
First Data's headquarters were located in Greenwood Village
, Colorado
. In 2009 First Data announced that it was moving its headquarters from Greater Denver to 5565 Glenridge Connector, NE Atlanta, GA 30342 .
Payment
A payment is the transfer of wealth from one party to another. A payment is usually made in exchange for the provision of goods, services or both, or to fulfill a legal obligation....
processing company headquartered in Atlanta, Georgia
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
. First Data is a provider of electronic commerce and payment solutions. The company's portfolio includes merchant transaction processing services; credit
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
, debit
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
, private-label
Stored-value card
A stored-value card refers to monetary value on a card not in an externally recorded account and differs from prepaid cards where money is on deposit with the issuer similar to a debit card...
, gift
Gift card
A gift card is a restricted monetary equivalent or scrip that is issued byretailers or banks to be used as an alternative to a non-monetary gift....
, payroll and other prepaid card offerings; fraud protection and authentication solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
and retail locations.
History
In 1969, the Mid-America Bankcard Association (MABA) was formed in Omaha, Nebraska, as a non-profit bankcard processing cooperative. Two years later, First Data Resources (FDR) incorporated in June to become a for-profit organization providing processing services to MABA. FDR had 110 employees and $222 million in annual revenues. First Data is an agglomeration of various cooperative associations which were initially established to provide credit card data processing services for member banks. These include Eastern States Bankcard Association; Atlantic States Bankcard Association; Southwestern States Bankcard Association; Mountain States Bankcard Association, and Western States Bankcard Association.In 1980, American Express Information Services Corporation (ISC) bought 80% of FDR. The remaining 20% was purchased in 5% increments each subsequent year until June 1983. First Data Corporation spun off from American Express and went public in 1992. In 1995, the company merged with First Financial Management Corp. (FFMC) and was then organized into three major business units serving card issuers, merchants and consumers. Western Union became part of First Data as a result of the merger with FFMC.
By 1998, First Data was providing transaction processing services not only in the U.S., but also in markets around the world, including the United Kingdom, Australia, Mexico and Canada. The company also began to see significant growth in its network of Western Union agent locations. This set the stage for First Data to become a leading global provider of electronic commerce and payment solutions to businesses and consumers worldwide.
From 2001 through 2005, a period of expansion occurred as First Data acquired companies around the globe and in the U.S., including, in 2001, the acquisition of PaySys International and their globally successful VisionPLUS Payment Software System VisionPLUS
VisionPLUS
VisionPLUS is a financial software application from First Data Corporation. Originally developed by the Paysys Research and Development Group, this application is mainly used for credit card transaction processing by multinational banks and transaction processing companies...
followed by $6.6 billion merger with Concord EFS in 2004, which added the STAR Network and PIN-based debit acceptance at more than 1.9 million ATM and retail locations. Additional acquisitions and strategic relationships included GovOne, the creation of eONEGlobal as a venture capital fund, the acquisition of Paymap, Inc., a company servicing electronic payment products, and the acquisition of Taxware, which would be merged into a new entity, named Velosant to spearhead broad Supply Chain Management initiatives. First Data also established a consumer payments brand which would take Direct Debit offerings to the retail marketplace. First Data further expanded geographically in Europe, Asia and Latin America.
In 2005, First Data was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
.
On January 26, 2006, First Data announced its intention to spin off Western Union
Western Union
The Western Union Company is a financial services and communications company based in the United States. Its North American headquarters is in Englewood, Colorado. Up until 2006, Western Union was the best-known U.S...
into an independent publicly traded company through a tax-free spin-off of 100% of Western Union
Western Union
The Western Union Company is a financial services and communications company based in the United States. Its North American headquarters is in Englewood, Colorado. Up until 2006, Western Union was the best-known U.S...
to First Data shareholders. The spin off occurred as planned on September 29, 2006.
On April 2, 2007 it was announced that Kohlberg Kravis Roberts (KKR) had entered an agreement to acquire First Data (NY Times article) in one of the largest leveraged buy-outs in history, and on October 1, 2007 KKR officially took over the First Data Corporation. Ric Duques retired, and Michael Capellas
Michael Capellas
Michael David Capellas is Chief Executive Officer of AcadiaEnterprises, LLC a joint venture of Cisco and EMC with investment from Intel and VMware. He also serves as Chairman of the Virtual Computing Environment coalition...
, previously the CEO of MCI, Inc., the president of Hewlett-Packard Company, and also the chairman/CEO of the Compaq Computer Corporation was appointed CEO. As a privately owned company, First Data's stock was taken off the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
on September 24, 2007. However, the company's LBO was financed with $24 billion in debt, and it remains heavily leveraged. The company continues to maintain investor relations pages on its web site and to publish quarterly financial results. Within two months after the KKR acquisition, the company laid off 1,700 employees across North America, Europe and Australia, about 6% of its workforce.
First Data entered the Ireland market in a joint venture(JV) with Allied Irish Banks plc (www.aib.ie) named AIB Merchant Services on January 18, 2008.
First Data also acquired ICICI Bank
ICICI Bank
ICICI Bank Ltd. is India's second largest financial services company headquartered in Mumbai, India. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of...
's merchant services business in 2009 for 4 billion Indian rupees ($80 million USD).
The processing platforms maintained by First Data are North(Cardnet), South, Nashville(Envoy), Omaha and BuyPass(Concord/Atlanta).
Management
Key executives include:- Joe ForehandJoe ForehandJoe Forehand is former Chairman of the board and former CEO of Accenture. He became CEO in November 1999, and chairman in February 2001.Forehand was born in Alexander City, Alabama and graduated in 1971 from Auburn University and is a brother of the Pi Kappa Phi Fraternity...
: Chairman - Jonathan J. Judge: Chief Executive OfficerChief executive officerA chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
- Peter Boucher: Executive Vice President, Human ResourcesHuman resourcesHuman resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
- John Elkins: President, International Regions
- Mark Herrington: Executive Vice President, Global Product Management and Innovation
- Kevin Kern: Executive Vice President, Chief Technology Officer, Global Operations and Technology
- Ed Labry: PresidentPresidentA president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
, First Data North America - David Money: Executive Vice President, General CounselGeneral CounselA general counsel is the chief lawyer of a legal department, usually in a corporation or government department. The term is most used in the United States...
- Ray Winborne: Executive Vice President, Acting Chief Financial OfficerChief financial officerThe chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...
Headquarters
First Data's headquarters are located in Atlanta, GeorgiaGeorgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
.
First Data's headquarters were located in Greenwood Village
Greenwood Village, Colorado
The city of Greenwood Village is a prominent suburb of the Denver-Aurora Metropolitan Statistical Area and a Home Rule Municipality located in Arapahoe County, Colorado, United States...
, Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
. In 2009 First Data announced that it was moving its headquarters from Greater Denver to 5565 Glenridge Connector, NE Atlanta, GA 30342 .