First Data 2009 Annual Report Download - page 12

The merchant acquiring and card issuing services provided by the International segment are similar in
nature to the services described above in the Retail and Alliance Services and Financial Services segments other
than they include substantially all the services provided outside of the U.S. For a description of the International
segment’s merchant acquiring and card issuing businesses refer to the Retail and Alliance Services and Financial
Services segment descriptions provided above.
International Pipeline
During 2009 the Company converted approximately 2.6 million accounts to its systems. The pipeline at
December 31, 2009 was approximately 5 million accounts, which are primarily credit accounts. The Company
expects to convert these accounts in 2010.
International Segment Competition and Seasonality
Competition and seasonality within the International segment is similar to that of the Retail and Alliance
Services and Financial Services segments for the respective product and service offerings and also includes third-
party software providers. See discussions above. A noted difference from the U.S. operations is that generally
there are more and smaller competitors because of the International segment’s global span.
International Geographic Mix
The following countries accounted for more than 10% of the segment’s revenues from external customers
for the periods presented:
Successor Predecessor
Year ended
December 31,
2009
Year ended
December 31,
2008
Period from
September 25, 2007
through
December 31,
2007
Period from
January 1, 2007
through
September 24,
2007
United Kingdom .......................... 22% 23% 25% 25%
Germany ................................ 17% 17% 20% 20%
Australia ................................ 13% 12% 13% 15%
No individual foreign country was material to the Company’s consolidated revenues.
International Significant Customers
No individual customer makes up more than 10% of the International segment revenue.
Integrated Payment Systems Segment
The principle business in the Integrated Payment Systems segment is official check services.
The Company is gradually exiting the official check line of business. The majority of the clients of this
business deconverted during 2008 and there will be no new official check and money order business beyond
April 2010. IPS will continue to use its licenses to offer payment services that fall under state and federal
regulations and the business will continue to operate in a much reduced capacity after all of the client
deconversions as outstanding official check and money order clearance activity winds down.
On October 1, 2009, IPS assigned and transferred to Western Union, among other things, certain assets,
liabilities and equipment used by IPS to issue retail money orders. As of the closing date noted above, Western
Union assumed IPS’s role as issuer of the retail money orders, however, IPS continues to process money orders
for Western Union when they are presented for payment.
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