LANSING, Mich. - Michigan National Bank said it acquired the $300 million merchant credit card processing portfolio of Central Fidelity Bank, Richmond, Va., effective July 1.
Central Fidelity said it would continue to market its service and collect commissions, but the Michigan bank would be responsible for transaction processing and account servicing. In merchant processing, a bank assists retail merchants in the clearing and settlement of credit card transactions.
The Michigan National Corp. subsidiary said it is the 15th-largest merchant processor in the United States and is adding 9% to its volume through the Central Fidelity purchase.
"This agreement satisfies the strategic objectives of both parties," said David Lind, senior vice president of Michigan National Bank. "It allows Michigan National to continue to expand its merchant credit card processing portfolio and Central Fidelity Bank to retain its present client base."