First Data 2008 Annual Report Download - page 27

Changes in credit card association or other network rules or standards could adversely affect the Company's business.
In order to provide the Company's transaction processing services, several of the Company's subsidiaries are registered with Visa and MasterCard and
other networks as members or service providers for member institutions. As such, the Company and many of its customers are subject to card association and
network rules that could subject the Company or its customers to a variety of fines or penalties that may be levied by the card associations or networks for
certain acts or omissions by the Company, acquirer customers, processing customers and merchants. Visa, MasterCard and other networks, some of which are
the Company's competitors, set the standards with respect to which the Company must comply. The termination of the Company's member registration or the
Company's status as a certified service provider, or any changes in card association or other network rules or standards, including interpretation and
implementation of the rules or standards, that increase the cost of doing business or limit the Company's ability to provide transaction processing services to
or through the Company's customers, could have an adverse effect on the Company's business, operating results and financial condition.
Changes in card association and debit network fees or products could increase costs or otherwise limit the Company's operations.
From time to time, card associations and debit networks increase the organization and/or processing fees (known as interchange fees) that they charge.
It is possible that competitive pressures will result in the Company absorbing a portion of such increases in the future, which would increase its operating
costs, reduce its profit margin and adversely affect its business, operating results and financial condition. Furthermore, the rules and regulations of the various
card associations and networks prescribe certain capital requirements. Any increase in the capital level required would further limit the Company's use of
capital for other purposes.
Changes in laws, regulations and enforcement activities may adversely affect the products, services and markets in which the Company operates.
The Company and its customers are subject to regulations that affect the electronic payments industry in the many countries in which the Company's
services are used. In particular, the Company's customers are subject to numerous regulations applicable to banks, financial institutions and card issuers in the
United States and abroad, and, consequently, the Company is at times affected by such federal, state and local regulations. Regulation of the payments
industry, including regulations applicable to the Company and its customers, has increased significantly in recent years. Failure to comply with regulations
may result in the suspension or revocation of license or registration, the limitation, suspension or termination of service, and/or the imposition of civil and
criminal penalties, including fines which could have an adverse effect on the Company's financial condition. The Company is subject to U.S. and international
financial services regulations, a myriad of consumer protection laws, escheat regulations and privacy and information security regulations to name only a few.
Changes to legal rules and regulations, or interpretation or enforcement thereof, could have a negative financial effect on the Company. In addition, even an
inadvertent failure by the Company to comply with laws and regulations, as well as rapidly evolving social expectations of corporate fairness, could damage
the Company's reputation or brands. There is also increasing scrutiny of a number of credit card practices, from which some of the Company's customers
derive significant revenue, by the U.S. Congress and governmental agencies. The Company has structured its business in accordance with existing tax laws
and interpretations of such laws which have been confirmed through either tax rulings or opinions obtained in various jurisdictions including those related to
value added taxes in Europe. Changes in tax laws or their interpretations could decrease the value of revenues the Company receives and have a material
adverse impact on the Company's business.
The Company's business may be adversely affected by risks associated with foreign operations.
The Company is subject to risks related to the changes in currency rates as a result of its investments in foreign operations and from revenues generated
in currencies other than the U.S. dollar. Revenue and profit generated by international operations will increase or decrease compared to prior periods as a
result of changes in
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