OMAHA - National Westminster Bank PLC, Britain's fourth-largest bank, has selected Applied Communications Inc. to supply high volume transaction processing software for its new merchant processing system.

The Natwest system will process up to a million credit and debit card transactions daily, coming from thousands of merchant point of sale terminals, officials said. The Applied Communications software runs on Tandem Computers Inc. hardware.

Applied Communications is a subsidiary of Transaction Systems Architects Inc., a vendor of funds transfer and electronic commerce systems.

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