Visa USA and First Data Corporation Agree to Settle Legal Dispute

SAN FRANCISCO & DENVER--(BUSINESS WIRE)--July 5, 2006--Visa U.S.A. Inc. and First Data Corporation (NYSE: FDC) have agreed to settle a legal dispute, pending since 2002, over the processing of Visa payment card transactions.

As part of this settlement, First Data and Visa agreed to work together to build a stronger business relationship to focus on streamlining the payments processing business. To achieve this, Visa will provide financial support to pursue mutual business opportunities and cost cutting initiatives that are expected to drive new innovation, reliability, security and new merchant acceptance. First Data will transition existing private arrangements between itself and Visa member financial institutions onto VisaNet. Specific terms of the settlement are confidential.

New leadership at both companies recognized a mutual interest in resolving legal differences. Visa CEO, John Philip Coghlan, and First Data CEO, Ric Duques, both acknowledged the increased value in putting this litigation behind them and restoring their companies' focus on working together to identify and build future business opportunities.

"By resolving this matter, both First Data and Visa can move forward and work together to create new business opportunities for all stakeholders in the payments business. Card issuers, merchants and cardholders alike can expect more focus on creating choice, convenience and innovation in the payments marketplace," said Duques.

"Visa's continued success is reliant upon our maintaining and growing business relationships," said Coghlan. "This agreement with First Data symbolizes our desire to focus on what really matters - providing the processing services our members expect in the most secure, reliable and efficient manner we can."

About First Data

First Data Corp. (NYSE: FDC) is a leading provider of electronic commerce and payment solutions for businesses and consumers worldwide. Serving 4.6 million merchant locations, 1,600 card issuers and millions of consumers, First Data powers the global economy by making it easy, fast and secure for people and businesses around the world to buy goods and services using virtually any form of payment. The company's portfolio of services and solutions includes credit, debit, private-label, gift and other prepaid card issuing and merchant transaction processing services; money transfer services; money orders; fraud protection and authentication solutions; check guarantee and verification services through TeleCheck; as well as Internet commerce and mobile solutions. Western Union, together with its affiliates Orlandi Valuta and Vigo, are leaders in global money transfer, providing people with fast, reliable and convenient ways to send money around the world, pay bills and purchase money orders through a network of over 270,000 agent locations in more than 200 countries and territories. The company's STAR Network offers PIN-secured debit acceptance at 1.9 million ATM and retail locations. For more information, visit www.firstdata.com.

About Visa USA

Visa USA is the nation's leading payment brand and largest payment system, enabling banks to provide their consumers and business customers with a wide variety of payment alternatives tailored to meet their evolving needs. Visa USA is committed to increasing the choice, convenience, acceptance and security of Visa payments for all stakeholders in the payment system -- members, cardholders and merchants. Through its 13,432 member financial institutions, more than 510 million Visa-branded cards have been issued to cardholders in the United States. Last year, U.S.-based financial institutions relied on Visa's processing system, VisaNet, to facilitate $1.6 trillion in transactions with unparalleled reliability.

Worldwide, cardholders in more than 150 countries carry more than 1 billion Visa-branded cards, accounting for more than $3 trillion in annual transaction volume.

Visa offers a trusted, reliable and convenient way to access and mobilize financial resources -- anytime, anywhere, anyway.

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Contacts
Visa USA
Rosetta Jones, 704-444-3815
or
First Data Corp.
Nancy Etheredge, 402-222-6214