Subject to the finalization of relevant regulatory approvals, FEDS will provide banks and their merchants the FEDS Processing Solution, which includes online and batch transaction processing for Visa, MasterCard, credit and debit cards, as well as authorisation, electronic data transmission for settlement, and full transaction reporting.
FEDS will grant banks the authority to give their merchants access to the FEDS Processing Solution, which provides a wide range of new services for researching, retrieving and archiving the data associated with the transactions processed on behalf of the banks and their merchants.
Bank of Bermuda will provide the card processing systems, staff, data processing centre and other supporting features, including formal authorisation and licenses with regard to the processing of credit card transactions by holders of VISA and MasterCard credit cards.
Alan Richardson, Executive Vice President, Retail Clients, Bank of Bermuda, said: "We've been working closely with First Ecom.com since earlier last year, and are very excited about what our new FEDS joint venture will mean, not only for our two companies, but also for the vast number of banks and their merchants that understand the clear advantage of outsourcing payment processing. Payment processing has always been the cornerstone of e-commerce and other types of credit card transactions, and we believe that FEDS will be regarded among the best solutions. This is another development in our e-commerce strategy that will continue to place Bermuda at the forefront of e-commerce."
David Lema, Vice President and Electronic Banking Manager, Bank of Bermuda, continued: "We expect that FEDS will create up to 16 new jobs in Bermuda. Our latest venture is significant and we are very proud that specialized skill sets are being developed here in Bermuda to compete with the very best onshore e-commerce service providers. E-commerce is a major development for Bermuda and we are actively committed to fostering its growth."
Gregory Pek, First Ecom.com President and CEO, said: "This is by far our most significant venture to-date. Creating this new joint venture demonstrates that both companies recognise the importance of working together to create a comprehensive, third-party processing solution for banks and their merchants all over the world. FEDS represents a unique payment processing outsourcing opportunity for banks, in that they can work freely with a non-bank, non-competing institution such as FEDS that offers multi-currency payment processing services and can get banks up and running in a matter of days."
Pek added that FEDS overcomes many of the common hurdles facing banks in providing payment processing services to their merchants, including the extreme shortage of qualified technical personnel to build the systems, attracting industry-savvy business partners, increased operating costs for multinational corporations, and high costs associated with system development, maintenance and ongoing R&D. FEDS also addresses the risks associated with banks losing merchant business to competitor banks that have effective payment processing systems because FEDS provides a turnkey solution that can be quickly implemented with any bank's existing systems.
About First Ecom.com
As a global leader in Internet transaction processing, First Ecom.com provides secure, easy-to-implement and low-cost online payment processing services to merchants and banks worldwide. Through strategic partnerships with Banks, ISPs, E-commerce system integrators and storefront solution providers, First Ecom will process credit card transactions made over the Internet in multiple currencies, either domestically or offshore in a tax-neutral jurisdiction. For more information, visit http://www.firstecom.com or contact First Ecom.com at +852.2801.5181 or by e-mail at info@firstecom.com.