Nabanco has snared another sizable merchant processing contract.
Only weeks after closing the deal to process MasterCard and Visa transactions for Sears Roebuck and Co., Nabanco said it has signed Macy's, the flagship division of R.H. Macy & Co.
Macy's was the last of the New York-based retailer's divisions not to be using Nabanco for point of sale processing support.
"Nabanco previously processed transactions for the Bullock's and 1. Magnin divisions," said Patrick H. Thomas, chairman,, president, and chief executive officer of Nabanco's parent, First Financial Management Corp. of Atlanta.
$1 Billion in Volume
"With this multiyear agreement, Nabanco will provide point of sale processing for all Macy's divisions - a contract covering an estimated $1 billion in credit card sales volume," Mr. Thomas said.
R.H. Macy & Co. did $6.4 billion in total sales last year. The company operates 110 Macy,'s and Bullock's stores, 13 I. Magnin stores, 15 Macy's Closeout outlets,, and 72 Aero Postale stores.
Macy has been restructuring after Funning up a heavy debt load in the 1980s, Like most major retailers trying to boost sales, it gradually came around to accepting American Express cards, and later bank credit cards, in addition to its long-standing proprietary card.
As part of the restructuring, Macy sold its in-house credit card receivables in 1991, then totaling $1.6 billion, to General Electric Co.'s GE Capital unit.
The anticipated $1 billion in Macy credit card sales brings Nabanco's new-contract volume this year to $9 billion, the bulk of it coming from the 1,800 Sears stores and affiliates that began accepting MasterCard and Visa this month.
Nabanco, based in Fort Lauderdale, Fla., is apparently widening the gap over its closest rival, National City Processing Co., a subsidiary of National City Corp. of Cleveland. According to The Nilson Report, Nabanco led its industry by handling about $36 billion in merchant credit card sales last year, $2 billion more than Louisville-based National City Processing.
Nabanco has been selling its ability to customize and to combine with other First Financial Management units - including Microbilt, and TeleCheck - to provide value-added point of sale services to merchants.
Rival Wins One
National City Processing did come out a winner in another retailer's credit card decision.
Kaufmann's, a Pittsburgh division of St. Louis-based May Department Stores Co., began accepting MasterCard, Visa, and Discover cards on Monday. National City will provide authorization and settlement services.
Kaufmann's 40 stores previously had been taking only a proprietary card. May, whose other subsidiaries include Fllene's, Lord & Taylor, and Robinson's, maintains an aggressive in-house credit program. The Nilson Report ranks May third among retailers, behind Sears and J.C. Penney Co., with $2.4 billion in receivables.
