Where can I contact Nova Information Systems?

As previously posted, Nova is now Elavon. NOVA Information Systems Becomes Elavon

April 15, 2008

A Payment Processing Company for the Global Era

ATLANTA April 15, 2008  NOVA Information Systems (NOVA), a wholly-owned subsidiary of U.S. Bancorp (NYSE: USB), today unveiled a new global company name, Elavon. Elavon becomes the identity for NOVA and its affiliate merchant acquiring brands including First Horizon Merchant Services (FHMS) and euroConex. Elavon effectively unites the company’s acquiring solutions organization to address the expanding payment processing needs of its partners and clients. Backed by U.S. Bancorps strategic investments and operational efficiency, Elavon is positioned to capitalize on emerging market opportunities and build on the strength of its international processing platform and proven business model.

North American Nova – Costco and Elavon merchants requiring technical assistance or customer support may contact merchant services 24/7 365 days a year at 1-800-725-1243.

Beyond continued strong organic growth, Elavon has profited from the investments made by U.S. Bancorp, which have fuelled expansion. These strategic acquisitions include the Citibank Card Acceptance business in Europe, FHMS and most recently Southern DataComm purchases that have placed Elavon into a leadership position in the payments industry and established it as a global gateway solutions provider. Elavons development of an international processing platform that consolidates multiple front-end authorization and back-end settlement systems onto a single network allows the company to quickly respond to evolving security requirements and technology advances.

“Uniting NOVA, euroConex, FHMS and our other brands under one company name positions Elavon to be recognized as the preeminent global leader in the payments industry”, said Stuart C. Harvey, Jr., chief executive officer, Elavon. “Our investment in developing an international processing platform delivers the scale necessary to quickly respond to client and market needs. We now have the opportunity to develop even deeper, broader relationships with our customers and partners that extend our reach into new markets worldwide.”

“U.S. Bancorp continues to demonstrate its commitment to the payments space by making wise investments in our growth,” said Pamela Joseph, vice chairman, Payment Services, U.S. Bancorp. “We believe in the strength of Elavon’s business model and the opportunities it fosters as we expand worldwide.”

In addition to global expansion opportunities, Elavon is also positioned to respond to the expanding needs of merchants in multiple segments including retail, hospitality, health care, education, and the public sector. End-to-end processing control and the delivery of strategic solutions including electronic check conversion, health care claims eligibility processing, and convenience fee processing are all important in helping businesses better manage costs.

“Global end-to-end control enables us to capitalize on emerging market opportunities that extend to our channel partners,” said Harvey. “Our successful business model allows our channel partners to focus on their core competencies while keeping their clients compliant, secure, efficient and financially poised for success in the global economy.”

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About Elavon

Elavon’s Global Acquiring Solutions organization is a part of U.S. Bancorp (NYSE: USB). Elavon provides end-to-end payment processing services to more than one million merchants in the United States, Europe, Canada and Puerto Rico. Solutions include credit and debit card processing, electronic check services, gift cards, dynamic currency conversion, multi-currency support, and cross-border acquiring. Elavon’s services are marketed through multiple alliance partner channels including financial institutions, trade associations and ISOs. Elavon has solutions to meet the needs of merchants in specialized markets including small business, retail, hospitality/T&E, health care, education and the public sector. Elavon represents the former brands of NOVA Information Systems and its affiliates FHMS and euroConex. For more information visit www.elavon.com.

North American merchants requiring technical assistance or customer support may contact merchant services 24/7 365 days a year at 1-800-725-1243. You may also fax inquiries to 865-577-0661. For additional contact information and answers to common questions, log onto www.merchantconnect.com.

NOVA Purchases Southern DataComm

Acquisition to Fuel Global Growth in Hospitality and Retail Market Segments
ATLANTA–(Business Wire)–NOVA Information Systems (NOVA), a wholly owned subsidiary of U.S.
Bancorp (NYSE: USB), today announced that it has entered into a definitive agreement to purchase Southern DataComm (SDC), a payment software and gateway services provider based in Largo, Florida. The deal is expected to close in early February.

“The addition of Southern DataComm’s solutions offering to our global acquiring business results in a true end-to-end solution offering that is unmatched in the industry,” said Stuart C. Harvey,
Jr., president, NOVA. “Their experience in the hospitality and multi-lane retail markets, combined with NOVA’s recent completion of an International Processing Platform, will allow us to more quickly
develop and deliver a best-in-class hosted global gateway platform.”

Southern DataComm was founded in 1985 by Gary Eng, president. The company has built a solid reputation in the U.S. payments industry, serving more than 50,000 merchants. Additionally, hundreds of value-added resellers (VARs) have certified their systems to connect through Southern DataComm, supporting a strong one-to-many value proposition. Annually, more than $50 billion travels through its gateway switch, which supports 200 interface modules, helping connect merchants to their choice of acquirers and processors.

“We have a strong reputation as a trusted provider of secure, robust and flexible solutions for our clients,” said Gary Eng. “We look forward to exploring new global opportunities with NOVA, while maintaining our valuable position as an independent single-source solution provider to merchants, POS providers, VARs, ISOs and acquirers.”

The deal was completed in February 2008. Read more about our own penetration into the hospitality market.

Nova is now Elavon

NOVA becomes Elavon in 2008, marketing as a new brand for a new global era. North America and Europe business lines align under one Global Acquiring Solutions organization. In 2008, NOVA acquired Southern DataComm.

Elavon’s Global Acquiring Solutions organization (formerly known as NOVA Information Systems in the U.S. and euroConex in Europe) is part of U.S. Bank’s Payment Services division.

nova credit card processing rates

Costco offers a discount credit card processing solution with it’s partner Nova Information Systems.
nova credit card processing rates

Is this a good deal? It really depends on the merchant, their volume and their business set-up. Read the fine print – “Rates listed are for qualified transactions. Reward cards process at a higher rate. ”
What’s a qualified transaction? For the merchant agreement that I reviewed, it is defined as a transaction for a check card ie a debit card. Debit cards have a debit card symbol on them. For most businesses, check cards represent 1-25% of their credit card transactions. That means, the majority of cards presented will not be qualified transactions.

50%-65% of cards presented at consumer retail operations are REWARDS CARDS. This means you need to find out what your rate will be for these as it is likely to be your most common card. If you look at the Costco web site, and most other sites, you do not find out this information until after you complete a ‘pre-application’. The APPLY NOW form almost always includes a disclaimer that the information you are providing is for information only, it is not really an application, because additional information is needed that is not requested in the online forms.

What is the rewards card rate? This can vary depending on your price plan, but with the Nova credit card processing solution, it is a fixed rate, that changes only when there are interchange rate changes.

The Retail and MOTO rates for Costco Members in 2007* were:

Retail / Restaurant:
Qualified 1.64% + $0.20
Qualified Rewards 1.78% + $0.20
Partial Qualified 2.83% + $0.31
Non-Qualified 3.35% + $0.31

Mail/Telephone Order (MOTO) / Internet Accounts:
Qualified 1.99% + $0.27
Partial Qualified N/A
Non-Qualified 3.36% + $0.31

$20.00 Monthly minimum in fees
$.59 Debit transactions
2 Year contract / $95.00 early termination fee

* These rates may since have increased with interchange rate increases.

Based on the information above, the typical transaction for merchants will be 3.36%, since most consumers use Rewards Credit Cards. I’ve seen new businesses paying 4-7% for credit card processing. The Costco deal brings certainty to pricing for start-ups and is certainly lower than some other solutions.

This article should help give you the information needed to compare deals with 3 tiered pricing- qualified, partial qualified (or mid-qualified) and non-qualified. It’s important to get the definitions for each tier, because it may vary by processor.

An established business processing more than $500,000 per year, may benefit from a different type of price plan, one that gives more than 3 price levels.