First Data Deal To Form Basis Of New EFT<@SM>Network

- DENVER (06/21/01) - First Data Corp's planned acquisition ofcontrolling interest in the NYCE electronic funds transfer (EFT)network will form the nexus of a new EFT network being created bythe electronic processing giant, the company said. First Data Netwill allow financial institutions to bypass the two national EFTnetworks run by VISA and MasterCard, cutting out the extra step andexpense of third-party processing. The new network will help creditunions and other financial institutions streamline routing andsettling of electronic payments by cutting out the middle-man. "Youcan route that transaction through and not have to switch it out tothird-party connections," Rodney Bell, spokesman for First Data,told The Credit Union Journal. NYCE provides EFT services for morethan 3,300 financial institutions, including 1,100 creditunions.