Security Card Services LLC’s decision to renew its processing contract with National Processing Co. stems partially from a degree of comfort the companies have amassed in their 14-year history of working together, according to John Lewis, the independent sales organization’s president.
“We are very comfortable with [National Processing’s] key management team,” Lewis says.
The companies announced their contract renewal Feb. 15. Terms were not disclosed.
Oxford, Miss.-based Security Card Services has more than 650 bank-referral contracts, and the banks annually refer more than 5,000 clients wanting payment card processing services to the ISO, Security says.
But ISO contracts with processors are not based just on the working relationship between two companies. Pricing of credit and debit card processing services is important, too, Lewis notes.
“While I can’t speak to (specific) pricing, I can tell you that we did source other bids for our business, as we have to stay competitive like everyone else,” Lewis tells PaymentsSource. “In this business, pricing is always a component.”
Ultimately, however, the success of the existing relationship with National Processing, pricing, and the processor’s new product and growth strategies were key factors in the decision to renew, Lewis says.
National Processing is a Louisville, Ky.-based subsidiary of Fifth Third Processing Solutions LLC, which processed 29.4 billion ATM and point-of-sale transactions in 2010 valued at more than $378 billion. Fifth Third Processing is based in Cincinnati.
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