First Data 2009 Annual Report Download - page 3

Retail and Alliance Services
Retail and Alliance Services provides merchant acquiring and processing services, prepaid services and
check verification, settlement and guarantee services. The Company provides these services to approximately
4.0 million merchant locations across the U.S. and acquired $1.2 trillion of payment transaction dollar volume on
behalf of U.S. merchants in 2009. Retail and Alliance Services facilitates merchants’ ability to accept credit,
debit and prepaid cards and checks by authorizing and settling merchants’ credit, debit stored-value and loyalty
card transactions and check transactions. At the same time, Retail and Alliance Services provides merchants with
the reliability, security and back-office services that are critical to their business success. Most of this segment’s
revenue is derived from regional and local merchants. Retail and Alliance Services approaches the market
through diversified sales channels including equity alliances, revenue sharing alliances and referral arrangements
with over 440 financial institution partners, over 1,120 non-bank referral partners, and over 580 independent
sales organization partners, as of December 31, 2009.
Financial Services
Financial Services provides financial institutions and other third parties with credit, debit and retail card
processing; debit network services; output services, such as statement and letter printing, embossing and mailing
services; and remittance processing services. The credit, debit and retail card processing businesses provide
services that enable financial institutions and other organizations offering credit cards, debit cards and retail
private label cards to consumers and businesses to manage customer accounts. Financial Services also provides
personal identification number (“PIN”) debit network services through the STAR Network which enables
PIN-secured debit transaction acceptance at approximately 2.3 million ATM and retail locations in the U.S. as of
December 31, 2009.
International
International provides products and services in international markets that are similar to those offered by the
Retail and Alliance Services and Financial Services segments in the U.S. International has operations in 36
countries, including the U.S., with regional management teams overseeing local operations.
Integrated Payment Systems
The principle business in the Integrated Payment Systems segment is official check services. Official checks
are sold through independent agents, which are financial institutions. IPS also offers payment processing services
and such other services will continue after the wind down of the official check business.
Operating Locations
The Company has domestic and international operations and regional or country offices where sales,
customer service and/or administrative personnel are based. The international operations generate revenues from
customers located and operating outside of the U.S. Revenues generated from processing transactions at locations
within the U.S. (domestic) and outside of the U.S. (international), regardless of the segments to which the
associated revenues applied, were 84% and 16% of FDC’s consolidated revenues for the year ended
December 31, 2009, respectively. Long-lived assets attributable to domestic and international operations as
percentages of FDC’s total long-lived assets as of December 31, 2009 were 86% and 14%, respectively. No
individual foreign country is material to the Company’s total revenues or long-lived assets. Further financial
information relating to the Company’s international and domestic revenues and long-lived assets is set forth in
Note 16 to the Company’s Consolidated Financial Statements in Item 8 of this Form 10-K.
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