First Data 2008 Annual Report Download - page 16

The official check and money order services generate revenue primarily through the ability to invest funds pending settlement. IPS invests these funds
in investments with an objective to minimize its exposure to credit risks. These investments were primarily in short-term taxable investments in 2008 as well
as some student loan auction-rate securities that have been classified as long-term. Prior to 2008, these investments were primarily in tax exempt securities.
An official check or money order transaction is initiated when a consumer or business procures an official check or money order from one of the
Company's agents. The agent generally is required to remit the funds collected from the consumer to IPS the same day or the following day. With respect to
official checks, IPS pays some of its agents commissions based on short-term variable interest rates and the balance of outstanding official checks attributable
to the individual agent. IPS nets the commissions paid to agents against the revenues it earns from its investments.
Integrated Payment Systems Competition
IPS's official check and money order business competes with one other third party check issuer, financial institutions offering their own in-house check
services and postal money orders.
Integrated Payment Systems Significant Customers
No individual customer makes up more than 10% of the Integrated Payment Systems segment revenue.
All Other and Corporate
The remainder of the Company's business units are grouped in the All Other and Corporate category, which includes smaller businesses and corporate
operations.
Corporate operations include administrative and shared service functions such as the executive group, legal, tax, treasury, internal audit, accounting,
human resources, information technology and procurement. Costs incurred by corporate that are directly related to a segment are allocated to the respective
segment. Administrative and shared service costs are retained by Corporate.
All Other and Corporate Competition
The operations within All Other and Corporate have various competitors. Any single competitor would not have a material impact on the Company.
All Other and Corporate Significant Customers
No individual customer makes up more than 10% of the All Other and Corporate revenue.
Intellectual Property
The Company owns many trademarks, trade names, patents and other intellectual property that are important to its future success. The only intellectual
property rights which are individually material to the Company are the FIRST DATA trademark and trade name and the STAR trademark and trade name.
The STAR trademark and trade name are used in the Financial Services segment. The FIRST DATA trademark and trade name are associated with quality
and reliable electronic commerce and payments solutions. Financial institutions and merchants associate the STAR trademark and trade name with quality and
reliable debit network services and processing services. Loss of the proprietary use of the FIRST DATA or STAR trademarks and trade names or a diminution
in the perceived quality associated with these names could harm the growth of the Company's
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