First Data to Acquire Instant Cash Services Business from Wells Fargo

Wells Fargo Bank, N.A., a subsidiary of Wells Fargo & Company, and First Data Corp. announced they have signed a definitive agreement for First Data to acquire the Instant Cash Services® (Instant Cash) business, which includes the Instant Cash Network, from Wells Fargo. First Data will continue to operate the Instant Cash Network under the Instant Cash brand. Instant Cash Services provides debit card and ATM payment processing services for more than 500 community banks, credit unions, thrifts and non-financial institutions in 20 states. The transaction will not affect Wells Fargo’s ATM banking network of 6,700 ATMs in 23 states nor will it affect the company’s ranking as the nation’s #2 largest debit card issuer, with 18.7 million debit card accounts. Financial terms of the transaction were not disclosed.

"Instant Cash Services is a natural fit with First Data. We serve thousands of similar financial institutions nationwide, and this acquisition supports our strategy of securing transaction processing volume and integrating high quality, value-added products and services," said Todd Strubbe, president of First Data Debit Services. "The Instant Cash Network participants will continue to receive the high-touch service and convenience they enjoy today, along with continued deposit-sharing and surcharge-free access to ATMs at Wells Fargo branch locations. As we move forward, Instant Cash customers will gain access to new and enhanced products to help them service, protect and grow their businesses."

"Instant Cash Services has provided a valuable service to our financial institution customers for almost 30 years," said Ed Kadletz, head of Wells Fargo’s debit card business. "After analyzing our customer needs and industry trends, we believe the best strategy is to sell the business to a company like First Data that can deliver a wider array of payment processing services to meet the growing needs of our customers. Wells Fargo and First Data have strong customer service cultures and, together, we’re committed to making this transition as smooth as possible for our customers."

Wells Fargo will continue to participate in the Instant Cash Network and has agreed to recommend First Data’s processing services to its Global Correspondent Banking Group customers. "As a leading provider of correspondent banking products and services, Wells Fargo’s alliance with First Data gives our correspondent bank customers access to even more products and solutions," Kadletz said.