Wachovia Software Pact Keeps Processing In-House

Wachovia Bank Card Services has decided to keep its credit card processing in-house.

The Atlanta-based unit of Wachovia Corp. manages a $4.5 billion credit card portfolio - the 19th largest in the bank card industry.

Wachovia said it has awarded a contract to FBS Software, also of Atlanta, to upgrade its mainframe computer system over about two years.

The vendor called it a multimillion-dollar deal.

Beverly B. Wells, president of Wachovia's card unit, said that, given the direction of her business, "it will be important for us to have in- house the systems and the operations that surround the servicing of this portfolio."

Wachovia gains, she said, from flexibility in designing card features, control over account servicing, and the ability to integrate with the rest of the bank.

Gary Shirley, FBS president, said Wachovia would retain maximum control over costs, customer service quality, and product launchings by continuing to process its own cards.

Wachovia and FBS Software, a unit of Equifax Inc., have a 10-year relationship. Originally known as First Bankcard Systems, the software company was formed by credit card employees of First National Bank of Atlanta, now Wachovia Bank of Georgia. Equifax completed its acquisition of FBS in July 1994.

Ms. Wells said Wachovia is well aware of the trend among sizable card issuers toward outsourcing. She said it selected FBS Software after spending a year evaluating both in-house options and the leading outsourcers - Electronic Data Systems, First Data Resources, and Total System Services.

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