Western Union 2009 Annual Report Download - page 22

Operations
Our revenue in this segment is derived primarily from transaction fees paid by the consumer. These fees
are typically less than the fees charged in our consumer-to-consumer segment. Consumers may make a cash
payment at an agent or owned location and businesses may remit a check, electronic or wire transfer to
Custom House»in order to initiate a transaction. In order to make an electronic payment, consumers or
businesses initiate a transaction over the telephone or the internet which we process through credit card, debit
card, automated clearing house (“ACH”) or wire transfer, depending on the service selected. Our internet
services are provided through our own websites or, in certain circumstances, in partnership with other websites
for which we act as the service provider. In cross-border transactions involving different currencies, we
primarily generate revenue based on the difference between the exchange rate set by us to the consumer or
business and the rate at which we are able to acquire currency. In addition, we generate revenue from upfront
enrollment fees received for our Equity Accelerator»service, and we earn investment income on funds
received from services sold in advance of settlement with payment recipients.
Although most of the revenue in our global business payments segment is generated in the United States,
we continue to expand our international presence and globally diversify our revenue, primarily through our
acquisition of Custom House and our previous acquisition of Pago Fácil
.
.
Services
Our global business payments services are available through a variety of products which give customers
choices as to the payment channel and method of payment, and include the following:
Custom House. Our recent acquisition of Custom House enables us to offer international cross-border,
cross-currency business-to-business payment solutions. These payment transactions are conducted through
various channels including the telephone and internet. Custom House operates its own website to offer services
and also serves as the ultimate service provider for other partner websites. Payments are made predominately
through wire transfers and ACH, but in some situations, checks are remitted to Custom House. The majority
of Custom House’s business relates to exchanges of currency at the spot rate which enables customers to make
cross-currency payments. In addition, we write foreign currency forward and option contracts for customers to
facilitate future payments.
Western Union Quick Collect». The Western Union Quick Collect (“Quick Collect”) service allows
consumers to send funds to businesses and government agencies across the United States and Canada, using
cash and, in certain locations, a debit card. This service is offered primarily at Western Union agent locations,
but may be provided via our westernunion.com website in limited situations. This service is also offered in
select international locations under the service mark Quick Pay
SM
. We also offer Quick Cash», a cash
disbursement service used by businesses and government agencies to send money to employees or individuals
with whom they have accounts or other business relationships. Similar to our Quick Collect service,
consumers use our Western Union Convenience Pay»(“Convenience Pay”) service to send payments by cash
or check from a smaller number of Convenience Pay agent locations primarily to utilities and
telecommunication providers.
Pago Fácil».In South America, we offer walk-in, cash bill payment services which allow consumers to
make payments for services such as phone, utilities and other recurring bills. In Argentina, we provide this
service under the Pago Fácil brand. In 2008, we began offering this service under the Western Union brand in
Peru and Panama.
Speedpay». Our Speedpay service is offered principally in the United States and allows consumers to
make payments to a variety of businesses using credit cards, debit cards, ACH and in limited situations,
checks. Payments are initiated over the telephone or the internet. We also partner with some businesses to
allow their customers to access Speedpay from their websites.
Equity Accelerator. Our Equity Accelerator service enables consumers to make mortgage payments by
ACH. It is marketed as a convenient way for homeowners to schedule additional recurring principal payments
on their mortgages. Consumers who enroll in this service make mortgage payments based on an accelerated
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