TSYS Signs Agreement With CIBC
TSYS serves more than half of Canada's Visa accounts
Columbus, Ga., Aug. 6, 2002 - TSYS® has signed a 10-year outsourcing agreement with CIBC to process more than 5 million Visa accounts.
The portfolio will be converted in early 2003 to TS2®, recognized as the most advanced card-processing system in the world. When the transition is complete, TSYS will be North America's only third-party processor servicing Visa and American Express accounts for one bank on a single payments platform.
TSYS has processed card accounts in Canada since 1989. Adding CIBC's Visa portfolio will increase TSYS market share in Canada from 38 percent to 51.7 percent of the country's total 23.8 million Visa accounts, according to The Nilson Report. More Canadian households use credit cards than in the United States — 89 percent versus 76 percent.
"CIBC is Canada's largest issuer of Visa cards and the largest issuer of general purpose credit cards in the country. CIBC has entrusted this processing to TSYS because we offer a compelling combination: excellent technology, people and service," says Richard W. Ussery, chairman and CEO of TSYS. CIBC will become one of the Company's 10 largest processing clients.
"CIBC chose to outsource its portfolio to TSYS for strategic reasons. TSYS is a world-class provider of innovative payment services, and a company that we believe will continue to lead in this area," says Christine Croucher, executive vice president of the Card Products Division for CIBC. "We have every confidence that TSYS will manage a successful conversion that will be seamless for our clients."
In an earlier agreement, TSYS announced in January that it would process the new "entourage" line of American Express products for CIBC, including Canada's first nationwide smart card. TSYS has supported other CIBC card products since 1994. CIBC, based in Toronto, Ontario, is Canada's largest card issuer based on charge volume.
International accounts under management at TSYS increased 25.4 percent in the second quarter, versus one year ago. TSYS has reported 12.5 percent organic growth in accounts for the first six months of 2002, and 26.3 percent compound annual growth in accounts for 18 years.
About CIBC
CIBC is a leading North American financial institution offering more than 8 million personal banking and business customers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, in the United States and around the world. CIBC is also Canada's leading credit card issuer and offers a broad range of choice and value. To find other news releases and information about CIBC, visit the bank's media center at www.cibc.com.
About TSYS
TSYS (NYSE: TSS) (www.tsys.com) brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe. For more information, contact news@tsys.com.
Contact:
Eric S. Bruner
TSYS Media Relations
706.644.8457
ebruner@tsys.com
Leo S. Berard
TSYS Investor Relations
706.649.5220
leoberard@synovus.com