Electronic Data Systems Corp. announced it has selected Checkfree Corp. to povide electronic bill payment processing to financial institution customers of its home banking service.
Terms of the six-year contract were not disclosed.
About 90 institutions-mostly credit unions and community banks-use EDS' Virtual Branch home banking system. Previously, EDS performed its own bill payment processing.
The contract with Atlanta-based Checkfree will let EDS provide "more efficient bill payment services to our clients," said John A. Meyer, president of EDS Financial Services.
The deal has no impact on EDS' planned iBilling bill presentment service for business-to-business transactions, said Craig Dees, an EDS spokesman.
Checkfree has sold software and processing services to 2.5 million consumers, 1,000 businesses, and 850 banks. It processes more than 10 million electronic payment transactions a month.