First Data 2014 Annual Report Download - page 26

campaigns to issue cards. Conversely, a weakening in the economy typically results in a tightening of the credit market with fewer consumers qualifying for
credit.
The primary service offerings of the International segment are substantially the same as those provided in the Merchant Solutions and
Financial Services segments.
The International acquiring services facilitate the merchants’ ability to accept credit, debit, and stored-value cards. The segment’s merchant processing and
acquiring services include authorization, transaction capture, settlement, chargeback handling, and Internet based transaction processing and are the largest
component of the segment’s revenue.
The International issuing services provide issuer card, output services, ATM services, and professional services. Issuer card and network solutions includes
credit, retail, and debit card processing for financial institutions and other organizations offering credit cards, debit cards, and retail private label cards to
consumers and businesses to manage customer accounts. Output services include statement and letter printing, embossing and mailing services, and call
center services. ATM services include processing, acquiring, and switching services. Additionally, the International issuing services provides licensing for
card processing software, and professional services.
The International segment revenue drivers are similar to the Merchant Solutions and Financial Services segment. The International acquiring service
revenues are driven most significantly by the number of transactions, dollar volumes of those transactions, and trends in consumer spending. The
International issuing service revenues for issuer card and network solutions are driven primarily by accounts on file, with active accounts having a larger
impact on revenue than inactive accounts. Additionally, the International segment revenue is impacted by foreign exchange rate movements as well as the
macroeconomic forces within countries where the services are being sold.

All Other and Corporate is comprised of our business units not included in the segments noted above, primarily our government services business and our
official check business that is winding down, as well as our support functions.

For a description of the components of operating revenues and expenses as presented in the Consolidated Statements of Operations, refer to Part I, Item 1 of
this Form 10-K. Descriptions of the revenue recognition policies are included in Note 1 "Summary of Significant Accounting Policies" to our Consolidated
Financial Statements in Part II, Item 8 of this Form 10-K.

Consolidated results should be read in conjunction with Note 13 "Segment Information" to our Consolidated Financial Statements in Part II, Item 8 of this
Form 10-K, which provides more detailed discussions concerning certain components of the Consolidated Statements of Operations. All significant
intercompany accounts and transactions have been eliminated within the consolidated results.
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








Transaction and processing service fees
$ 6,655.5
$ 6,464.3
$ 6,452.1
3%
— %
Product sales and other
892.8
837.2
866.7
7%
(3)%
Reimbursable debit network fees, postage, and
other
3,603.5
3,507.4
3,361.5
3%
4 %
Total revenues
$ 11,151.8
$ 10,808.9
$ 10,680.3
3%
1 %
Transaction and processing service fees revenue increased during 2014 compared to 2013 primarily due to increased card services and merchant related
services revenue as a result of net new business and organic growth, both domestically and internationally. Revenue increased due to growth in transactions
and volume, offset by lower rates, changes in mix, and attrition. As expected, we continue to experience decreases in check processing revenue primarily as a
result of lower overall check volumes due to a shift toward electronic payments. During 2014, foreign currency exchange rate movements negatively
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