Bank of America Considers Scrapping First Data Payments Partnership

www.wsj.com

There's trouble in First Data paradise. Bank of America, one of First Data's (now Fiserv's) mega joint venture partners (merchants processing credit cards through BofA are really doing it through FD) is considering dissolving the huge payment-processing joint venture it has with First Data and developing its own. According to BofA CEO Brian Moynihan, “The modern payment system is our foundation for the future,” and apparently FD just hasn't been cutting it, with "clients [having] experienced delays getting money from customers...and outages [keeping] merchants from accepting cards for short periods." Bad news bears for FD if true. We'll know soon enough - the contract between the two companies requires a year's notice in the event of termination. It's scheduled to renew in June 2020.

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