Total System Services, Inc. provides global payment services to financial and nonfinancial institutions. Segments The company’s segments include North America Services, International Services, and Merchant Services. North America Services The North America Services segment provides issuer account solutions for financial institutions and other organizations primarily based in North America. This segment has customer contracts with card issuers providing account processing and output services for printing and embossing items. This segment provides services throughout the period of each account’s use, from a card-issuing client processing an application for a card. Services may include processing the card application, initiating service for the cardholder, processing each card transaction for the issuing retailer or financial institution and accumulating the account’s transactions. The segment’s fraud management services monitor the unauthorized use of accounts, which have been reported to be lost, stolen, or which exceed credit limits. The segment’s fraud detection systems help to identify fraudulent transactions by monitoring each account holder’s purchasing patterns and flagging unusual purchases. Other services provided include customized communications to cardholders, information verification associated with granting credit, debt collection, and customer service. International Services The International Services segment provides issuer card solutions to financial institutions and other organizations primarily based outside the North America region. The International Services segment provides services to clients in Europe, India, the Middle East, Africa, the Asia Pacific, and Brazil. This segment has customer contracts with card issuers providing account processing and output services for printing and embossing items. Merchant Services The Merchant Services segment provides merchant services and related services to clients based primarily in the United States. Merchant services include processing services, acquiring solutions, related systems, and integrated support services to merchant acquirers and merchants. It processes payment forms, including credit, debit, prepaid, electronic benefit transfer and electronic check for merchants of various sizes across a range of market verticals. Merchant services include authorization and capture of transactions; clearing and settlement of transactions; information reporting services related to transactions; merchant billing services; and point-of-sale equipment sales and service. Acquisitions In 2012, the company completed its acquisition of ProPay, Inc that offers payment solutions for organizations ranging from small, home based entrepreneurs to multi-billion dollar enterprises. In 2012, the company completed its acquisition of 60% of Central Payment Co., LLC (CPAY), a privately held direct merchant acquirer. CPAY provides merchant services to small- to medium-sized merchants through an independent sales agent model, with a focus on merchants in the restaurant, personal services, and retail sectors. Customers The company provides various processing and other services to these clients, including processing of consumer and commercial accounts, as well as revenues for reimbursable items. The company has a master services agreement with Bank of America to provide processing services for its consumer credit card portfolios in the U.S. Competition The company’s products and services compete with payments networks, such as Visa, MasterCard, and Discover. Its major competitor in the card processing industry is First Data Resources, LLC, a wholly owned subsidiary of First Data Corporation. Seasonality Due to the somewhat seasonal nature of the credit card industry, the company’s revenues and results of operations have generally increased in the fourth quarter of each year (year ended December 31, 2012) because of increased transaction and authorization volumes during the traditional holiday shopping season. Regulation and Examination The company is subject to examination by the Federal Financial Institutions Examination Council. It is registered with Visa, MasterCard, American Express and the Discover Network as a service provider and is subject to their respective rules. Aspects of the company’s business are also subject, directly or indirectly, to privacy regulation in the United States, the European Union and elsewhere. In the United States, the company and its financial institution clients are respectively subject to the Federal Trade Commission’s and the federal banking regulators’ privacy and information safeguarding requirements under the Gramm-Leach-Bliley Act. As are all U.S. persons, the company is subject to regulations imposed by the U.S. Treasury Office Department of Foreign Assets Control, which prohibit or restrict financial and other transactions with specified countries and designated individuals and entities, such as terrorists and narcotics traffickers. The company and the rest of the financial services industry continue to experience increased legislative and regulatory scrutiny, including the enactment of additional legislative and regulatory initiatives, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act. History Total System Services, Inc. was founded in 1982.
total system services inc (TSS:New York)
One TSYS Way
Columbus, GA 31901-4222
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