Fiserv, Inc. provides payments and financial services technology solutions. The company serves clients around the globe, including merchants, banks, credit unions, other financial institutions, corporate and public sector clients.
The company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas, including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and pr...
Fiserv, Inc. provides payments and financial services technology solutions. The company serves clients around the globe, including merchants, banks, credit unions, other financial institutions, corporate and public sector clients.
The company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas, including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover cloud-based point-of-sale (POS) and business management platform. Most of the products and services the company provides are necessary for its clients to operate their businesses and is, therefore, non-discretionary in nature. The company serves its global client base by working among its geographic teams across various regions, including the United States of America (U.S.) and Canada; Europe, the Middle East and Africa; Latin America; and the Asia Pacific. The company has operations and offices located both within the U.S. and Canada, and internationally.
The company has grown its business organically and through acquisitions by signing new clients, expanding the products and services it provides to existing clients, offering new and enhanced products and services developed through innovation and acquisition, and extending its capabilities geographically, all of which have enabled it to deliver a wide range of products and services and created new opportunities for growth.
Segments
The company operates through the Merchant Solutions (Merchant) and the Financial Solutions (Financial) segments.
Merchant Solutions segment
This segment provides commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; software-as-a-service (SaaS); POS devices; and pay-by-bank solutions. The business lines aggregated within the Merchant segment consist of the following:
Small Business – provides products and services to small businesses and independent software vendors (ISVs), including Clover, its POS and business management platform for small business clients.
Enterprise – provides products and services to large businesses, including its integrated omnichannel operating system for enterprise clients.
Processing – provides products and services to financial institutions, joint ventures, and other third party resellers which have direct relationships with merchants.
The company distributes the products and services in the Merchant segment businesses through a variety of channels, including direct sales teams, strategic partnerships with agent sales forces, ISVs, independent sales organizations (ISOs), financial institutions and other strategic partners in the form of merchant alliances, revenue sharing alliances and referral agreements.
Small Business
The company offers merchant acquiring solutions to enable small businesses to securely accept payment transactions online or in-person. Payment transactions include credit, debit, gift card and loyalty payments online or through a physical POS or mobile device, such as a smartphone or tablet.
The company’s global point-of-sale and business management platform, Clover, includes hardware and software technology necessary to enable small business merchants to accept payments; take orders; schedule pick-up and delivery services; and provide vertical specific business management tools. By integrating next-generation hardware and SaaS capabilities, along with value-added services, Clover has become a leader in enabling omnichannel commerce solutions for small businesses. The company also offers small business owners advance access to capital through its Clover Capital cash advance and, within its international operations, merchant anticipation programs.
Enterprise
The company provides products and services to large businesses that are designed to enable clients to engage in commerce through various channels, including online and mobile, drive value and savings through transactions, and engage more customers. The company’s integrated omnichannel operating system allows enterprise clients to orchestrate payments and create consistent customer commerce experiences, delivered how and when their customers want. These solutions help clients maximize approval rates, reduce declines, lower fraud and chargebacks, reduce costs and improve the customer experience. Through this integrated platform, a variety of payment and commerce solutions can be accessed, including payment acceptance, payments optimization, fraud mitigation, online electronic benefits transfers, pay-by-bank and digital payouts. The company also offers a single platform for payment facilitators, marketplaces, software companies, and acquiring banks to compliantly manage boarding, credit and risk, and money movement for sub-merchants. Clients can access its enterprise services through Commerce Hub, the company’s next generation gateway and orchestration layer that provides full-function e-commerce, omnichannel and multi-acquirer solutions that ease development effort and maintenance.
The company’s Enterprise business also provides end-to-end, omnichannel solutions to securely implement and manage stored value programs, such as gift cards and loyalty, which help clients drive revenue and customer engagement. These solutions include physical and digital gift card fulfillment, program management, e-commerce gift card storefronts, security and fraud protection, transaction processing services, incentive and rebate cards, as well as reloadable and non-reloadable prepaid cards that may be used with a variety of mobile applications. The company helps its clients consolidate their forms of stored value in a single digital wallet that is enabled in-store for true omnichannel customer engagement. Additionally, the company provides payment services to companies, such as utilities, telephone and cable companies, lending institutions and insurance providers.
Processing
The company provides products and services to financial institutions, joint ventures, and other third-party resellers, such as ISOs, which have direct relationships with merchants. It provides these distribution partners with integrated merchant technology solutions to help them grow their businesses and manage their portfolios. Partner technology tools enable real-time access to portfolio activity and pricing management. These strategic alliances combine the company’s commerce-enabling technology, processing capabilities and management expertise with the distribution capabilities, footprint and customer relationships of its partners.
Financial Solutions segment
This segment provide products and services to financial institution, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The business lines aggregated within the Financial segment consist of the following:
Digital Payments – provides debit card processing services; debit network services; security and fraud protection products; bill payment; person-to-person payments; and account-to-account transfers.
Issuing – provides credit card processing services; prepaid card processing services; card production services; print services; government payment processing; and student loan processing.
Banking – provides customer loan and deposit account processing; digital banking; financial and risk management; professional services and consulting; and check processing.
Digital Payments
The company enables digital payment capabilities to financial institutions of all sizes, including solutions that help clients enable debit card processing services, peer-to-peer payments, account-to-account transfers, bill payment capabilities, and Automated Clearing House (ACH) and real-time payments.
The company provides debit card processing services, which include tokenization, loyalty and reward programs; customized authorization processing; gateway processing to payment networks; ATM managed services and cash and logistics management; and risk management products. It also provides security, risk and fraud management solutions, which incorporate machine-learning-based predictive technology, that help financial institutions securely operate and grow their business by preventing fraud. CardHub provides the company’s clients’ customers with mobile, customizable card management and alert tools that drive engagement and revenue for card issuers. The company also owns and operates the Accel, STAR and MoneyPass networks, which provide access to funds for debit card purchases through any physical and online channel. These networks are available to all issuers and merchants in the U.S.
The company’s person-to-person payment and account-to-account transfer services allow consumers a convenient way to send and receive money while offering financial institutions the opportunity to generate new transaction-based revenue, attract new accounts and increase loyalty among existing customers. The company offers a turnkey implementation of Zelle real-time person-to-person payments service. Its electronic bill payment and presentment product for financial and other institutions, CheckFree RXP, allows the company’s clients’ customers to manage household bills via an easy-to-use, online tool; view billing and payment information; pay and manage their bills in one place; and complete same-day or next-day bill payments to a wide range of billers and others. In addition, CashFlow Central, an integrated digital payment and cash flow management product, enables financial institutions to better meet the payments needs of small businesses.
Additionally, the company offers products and services which enable management insight by providing financial institutions with the infrastructure they need to process, route and settle non-card-based electronic payments, including ACH, wire and instant payments, and to efficiently manage associated information flows. These products and services provide multiple payment capabilities, including domestic and international wire transfers and real time payments connection to the FedNow Service and RTP Network. PEP+ is an enterprise payment solution that allows financial institutions to automatically receive and originate electronic payments through the ACH network in a straight-through processing manner. Clients may use the company’s payment platform applications on a licensed or hosted basis, and as an add-on to existing legacy technology or as a stand-alone comprehensive modern payments platform.
Issuing
The company provides credit card processing services; card production services; print services; prepaid card processing services; government payment processing; and student loan processing.
The company’s credit card processing services provide solutions to financial institutions and other issuers of credit, such as group service providers, retailers and consumer finance companies, to enable them to process credit card transactions on behalf of their customers. Depending on the needs of its client, the company delivers these solutions through its proprietary processing platforms, software application licenses, or SaaS hosted in the cloud. The company’s solutions in North America primarily use its Optis platform to provide transaction authorization and posting, account maintenance and settlement. The company’s FirstVision and VisionPLUS products are used globally to provide transaction processing services or are licensed to enable clients to process transactions on their own. The company also provides financial institutions with solutions that support the lifecycle of a cardholder, including acquisition, fraud detection, credit risk management, servicing, collections and professional services.
The company provides business statement and card products and services to clients across a wide variety of industries, including financial services, healthcare, retail, utilities, telecommunications, insurance and travel and entertainment. The company’s products and services include electronic document management through its electronic document delivery products and services; card manufacturing, personalization and mailing; statement production and mailing; and design and fulfillment of direct mail services.
The company’s prepaid card processing services include stored value cards offered by its Money Network businesses. The Money Network service simplifies payment distribution for organizations while reducing or eliminating expenses associated with issuing traditional paper checks. This service also provides consumers without bank accounts with fast, digital access to their money, including wages. Money Network solutions include Electronic Payroll Delivery, government disbursements, digital disbursements and corporate incentives, as well as single-load and reloadable prepaid account options.
The company’s government payment and student loan processing services generally relate to the processing of consumer payment activity. It provides entitlement payments for state entities, unemployment, and disability debit card payments, as well as technology that enables the company’s clients to provide student loan support services.
Banking
The company provides customer loan and deposit account processing; digital banking; financial and risk management; professional services and consulting; and check processing. The lines between merchant acquiring, payment processing and banking are increasingly interconnected, as more banking and payment transactions are initiated at different touchpoints within merchant engagement.
Account processing solutions enable a financial institution to operate systems that process customer deposit and loan accounts, an institution’s general ledger, central information files and other financial information. These solutions also include security, reporting and other features that financial institutions need to process transactions for their customers. Although many of the company’s clients obtain a majority of their processing requirements from it, its software design allows clients to start with one application and, as needed, add applications and features developed by it or by third parties. The company supports a broad range of client-owned peripheral devices manufactured by a variety of vendors, which reduce a new client’s initial conversion expenses, enhance existing clients’ ability to change technology and broaden its market opportunity. The principal account processing solutions used by the company’s depository institution clients are Cleartouch, DNA, Finxact, Portico, Precision, Premier and Signature. All of these systems are available in the U.S., and the DNA, Finxact and Signature platforms are also available globally. Account processing solutions are offered primarily as an outsourced service or can be installed on client-owned computer systems or those hosted by third parties.
The company’s principal consumer and business digital banking platform, Experience Digital (XD), builds on its Configure, Architect, Corillian Online, Mobiliti and Create products. XD is a cloud-based platform that enables customers to perform balance inquiries, view their transaction history and access electronic bill payments, person-to-person digital payments, card services, account and loan originations, funds transfer and personal financial management tools. XD can be highly customized and integrated to multiple products and services, allowing clients to deploy new services quickly and efficiently to increase customer acquisition, engagement and insights.
Additionally, the company’s embedded finance solutions enable merchants and others to deliver personalized financial experiences to their customers through a combination of Fiserv solutions, including Finxact, Carat, plastics, and card processing, as well as third-party services, including banking services.
The company also offers consulting services, business operations services and related software products that enable the transition of check capture from branch and teller channels to digital self-service deposit channels, including mobile, merchant and ATM. Through the Fiserv Clearing Network, the company provides check clearing and image exchange services. Other products and services include image archive with online retrieval, in-clearings, exceptions and returns, statements, and fraud detection.
Strategy
The company plans to increase the number and breadth of its client relationships by, among other actions: continue to integrate its products and services; introducing new products and services that are aligned with market needs; combine products and services to deliver enhanced, integrated value propositions; and deliver quality service and support for its clients. The company seeks to be an innovation leader, utilizing its assets and capabilities to be at the forefront of its industry and enable its clients to deliver best-in-class results. The company expects to acquire businesses when it identifies a compelling strategic need, such as a product, service or technology that helps meet client demand; an opportunity to change industry dynamics; a way to achieve business scale that enables competition and operational efficiency; or similar considerations.
Government Regulation
Because a number of the company’s businesses provide services to regulated financial institutions, it is considered to be a significant service provider under the Bank Service Company Act and, as a result, it is subject to examination by the U.S. Federal Banking Agencies, which are consisted of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency. The company is regulated based on the uniform principles, standards, and guidance created by the Federal Financial Institutions Examination Council (FFIEC).
In the U.S., the company is also subject to the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, among other things, and in conjunction with the Federal Reserve Board’s Regulation II, caps debit interchange rates for certain debit and prepaid card issuers; prohibits card issuers and payment networks from restricting the ability of merchants to direct the routing of debit card transactions; requires all debit card issuers in the U.S. to participate in at least two unaffiliated debit payment card networks; prohibits payment card networks from restricting debit and prepaid card issuers from contracting with other payment card networks; and generally prohibits network exclusivity arrangements for debit card and prepaid card issuers. These regulations impact the company’s card processing businesses and its clients’ ability to generate revenue.
Certain of the company’s subsidiaries hold payment institution or electronic money licenses. These subsidiaries are subject to regulation and oversight in the jurisdictions in which they operate. In addition, the company is subject to regulation by the Georgia Department of Banking and Finance in connection with its subsidiary’s Merchant Acquirer Limited Purpose Bank charter in Georgia. In addition, several of its subsidiaries outside of the U.S. provide services, such as merchant terminal leasing, debit processing, acquiring, issuing, factoring and settlement that make them subject to regulation by financial services supervisory agencies, including the Financial Conduct Authority (FCA) and Payment Systems Regulator in the United Kingdom (U.K.), the Federal Financial Supervision Agency in Germany, the National Bank of Poland, the Central Bank of the Netherlands, the Central Bank of Ireland, the Reserve Bank of Australia, the Central Bank of Brazil, the Central Bank of Uruguay, the Monetary Authority of Singapore, Bank Negara Malaysia (BNM) and Australian Transaction Reports and Analysis Centre.
The company is subject to the rules of various payment networks, such as Visa and Mastercard. In order to provide processing services, a number of its subsidiaries are registered with Visa and/or Mastercard as service providers for member institutions. A number of the company’s subsidiaries outside the U.S. are direct members or associate members of Visa and Mastercard for purposes of conducting merchant acquiring. Various subsidiaries are also processor level members of other debit and electronic benefits transaction networks or are otherwise subject to various network rules in connection with processing services and other services it provides. As such, it is subject to applicable card association, network and national scheme rules that could subject the company to fines or penalties. The company is subject to network operating rules promulgated by Nacha relating to payment transactions processed by it using the ACH network and to various federal and state laws regarding such operations, including laws pertaining to electronic benefits transactions.
In the U.S., the company is subject to various federal and state privacy and cybersecurity laws and regulations. The U.S. Gramm-Leach-Bliley Act (GLBA) requires financial institutions to explain their information sharing practices to their customers and to safeguard customer data. In some circumstances, it is subject to GLBA and the company has privacy and information security obligations to its clients who are regulated by the GLBA. In certain circumstances, the company is subject to the U.S. Health Insurance Portability and Accountability Act of 1996 (HIPAA), which governs the use and disclosure of protected health information in healthcare treatment, payment and operations by covered entities and their business associates. The company is also subject to the Federal Trade Commission Act which empowers the U.S. Federal Trade Commission (FTC) to prohibit unfair and deceptive practices, including those related to privacy and cybersecurity. In addition to the Federal Trade Commission Act, the FTC, along with the CFPB, is responsible for overseeing and enforcing the privacy and information security provisions over certain aspects of GLBA and the Fair Credit Reporting Act (FCRA), each of which is applicable to its businesses in certain circumstances. The company also has obligations under various state privacy and cybersecurity laws, such as the California Consumer Privacy Act, which, among other things, give consumers more control over the personal information businesses hold about them.
In the European Union (E.U.) and the U.K., the company is subject to the General Data Protection Regulation (GDPR), which impose a comprehensive approach to personal data protection and include penalties for non-compliance of up to the greater of 20 million Euro (or 17.5 million British Pound) or four percent of a company’s consolidated global revenue. There are numerous additional privacy laws and regulations that apply to its businesses around the world which also provide for significant penalties. Some of these data protection laws, including in the E.U., Brazil, India, United Arab Emirates and China, impose requirements regarding data rights and security and either prohibit the international transfer of personal data or restrict such transfers absent lawfully recognized transfer mechanisms. There are also additional obligations that apply to it by virtue of the fact that the company provides services in the financial services industry or are considered to be providing critical infrastructure to its clients, including the SOCI Act in Australia, the EBA Outsourcing Requirements and the Digital Operational Resilience Act in the E.U. and the CERT-In obligations in India.
TeleCheck, the company’s check acceptance business, is subject to FCRA and various similar state laws. The collection business within its subsidiary TRS Recovery Services, Inc. (TRS) is subject to the U.S. federal Fair Debt Collection Practices Act and various similar state laws. TRS maintains licenses in a number of states in order to engage in collection in those states. TeleCheck and TRS are also subject to regulation, supervision and examination from the Consumer Financial Protection Bureau (CFPB). In addition, several of the company’s subsidiaries are subject to comparable local laws regarding collection activities and obtaining credit reports and its U.K. branch described above also holds FCA permissions for debt collection activities.
The company and its clients are subject to various federal, state and foreign laws prohibiting unfair or deceptive trade practices. Various regulatory enforcement agencies, including the FTC and state attorneys general, have authority to take action against parties that engage in unfair or deceptive trade practices or violate other laws, rules and regulations.
The company is subject to anti-money laundering laws and regulations, including the U.S. Bank Secrecy Act (BSA). Among other things, the BSA requires money services businesses, such as money transmitters, issuers of money orders and official checks, and providers of prepaid access, to develop and implement anti-money laundering programs. The company’s acquiring businesses outside the U.S. are subject to anti-money laundering laws and regulations in the countries where they operate. Its Money Network Financial, LLC subsidiary provides prepaid access for various open loop prepaid programs for which it is the program manager and therefore must meet the requirements of the Financial Crimes Enforcement Network.
The company is also subject to certain economic and trade sanctions programs that are administered by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), which prohibit or restrict transactions to or from, or dealings with, specified countries, governments, individuals and entities that are specially designated nationals of those countries, including narcotics traffickers and terrorists or terrorist organizations. Other group entities may be subject to additional local sanctions requirements in other relevant jurisdictions.
History
Fiserv, Inc. was founded in 1984. The company was incorporated in Delaware in 1984 and reincorporated as a Wisconsin corporation in 1992.
