U.S. Bancorp has acquired the merchant processing operations of Capital City Bank Group Inc. of Tallahassee, Fla.

Elavon Inc., U.S. Bancorp's payment unit, paid $6.25 million for the operations.

J. Kimbrough Davis, Capital City's chief financial officer, said it will continue to offer merchant card services, while Elavon will handle the processing.

"This deal will provide our customers with some enhanced payments services," including the ability to accept gift cards, he said.

Capital City said it will continue to earn money from merchants through a revenue-sharing agreement.

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