Magazine article American Banker

Paymentech to Offer Versatile MasterCard for Fleets

Magazine article American Banker

Paymentech to Offer Versatile MasterCard for Fleets

Article excerpt

First USA Paymentech plans to issue a multi-use fleet MasterCard that will include purchasing, travel, and entertainment capabilities.

MasterCard introduced fleet cards to the market in August to tap an $80 billion market.

The association said it expects GE Capital Corporate Expense Management Services, Citicorp, and First Chicago NBD Corp. to join Paymentech in issuing the new cards, beginning in the first quarter.

Some experts applauded MasterCard's efforts to combine fleet, purchasing, and corporate cards. But some said it will take up to two years for petroleum companies nationwide to upgrade terminals so that they can capture the data necessary for the new multi -use cards.

"The fact that it can be accepted everywhere that MasterCard is accepted does not make it a fleet card," said David Robertson, president of the Nilson Report, Oxnard, Calif. "They must make the system changes."

First USA Financial Services, a Paymentech subsidiary, will issue the first of these multi-use fleet cards early next year for a subsidiary of PHH Corp., a relocation and mortgage firm.

The Dallas-based processor formed a joint venture called PHH/Paymentech with PHH Vehicle Management Services, one of the leading global fleet companies. Terms were not disclosed.

"This is a first of a kind for Paymentech and an innovation for the industry as a whole," said Pamela Patsley, president and chief executive of First U.S.A. Paymentech. "This replaces the private-label PHH card with a broader-use MasterCard."

However, Mr. Robertson noted, "PHH has several hundred thousand cards issued that would transmit more information than this new MasterCard at the beginning."

David S. Berry, director of research for Keefe, Bruyette, and Woods Inc., said First USA Inc. and PHH Corp. have been working together for months to sell mortgages to First USA's cardholder base. "These are two rapidly growing companies," he said. …

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