TSYS will provide payment processing for KeyBank's consumer credit card portfolio as part of a long-term agreement announced today.
Key will use TSYS' TS2 platform to convert the portfolio, which it bought from Elan Financial Services last year, and to issue new cards. Also TSYS will provide fraud prevention and risk management services to KeyBank's clients. KeyBank is owned by KeyCorp of Cleveland, Ohio.
In August, Key purchased its branded credit card portfolio from Elan and began self-issuing cards in a move to bolster its payments business. After buying the portfolio back, Key started work replacing its earlier offering with a group of three credit card products to serve narrower groups of consumers and businesses.
TSYS, of Columbus, Ga., handled a smaller portfolio conversion for Key with its TSYS Program Solutions platform in 2012. The platform provides account processing, fraud prevention, risk management, portfolio management and optimization and customer support.
"As we move aggressively toward expanding our presence in the consumer credit card market, we need a partner who can provide us with strong card industry insight, flexibility and speed-to-market," says Beth Mooney, KeyCorp chairman and CEO, in a May 30 press release. "TSYS has already demonstrated their ability to meet our needs for a turnkey solution, and we are confident they are a good fit for KeyBank."
Financial terms were not disclosed about the agreement.