JPMorgan Chase has selected TSYS to provide credit card processing for the merged card portfolios of the former Bank One and JPMorgan Chase, and complete a planned upgrade of card-processing technology.
TSYS says it will continue exclusive negotiations with JPMorgan Chase to provide processing services for the 87 million cardmembers of Chase Card Services. The companies expect to sign a definitive contract in the near future.
Under the agreement, TSYS will provide all card processing functions, such as maintaining account transaction information and providing transaction authorisations. In the future, Chase will have the option to transfer card processing services in-house under a license of the TS2 software.
The news is a blow to First Data Corporation, which currently provides card processing services to Chase. The vendor has confirmed Chase's decision and says it expects the transition to TSYS to occur within the next 18 months.