BofA Acquires National Processing

In a move that will improve Bank of America's ability to deliver electronic payments solutions, the Charlotte, N.C.-based bank purchased National Processing for $1.4 billion. The combination with Bank of America Merchant Services creates the nation's second largest bankcard merchant acquirer with nearly $250 billion in annual processing volume.

"This transaction will allow Bank of America to compete more effectively in the electronic payments business by creating immediate scale through NPC's customer base and using its technology platform to drive growth and improve servicing capabilities for both national and regional merchants," says Eloise Hale, a spokesperson for Bank of America.

The newly combined Bank of America Merchant Services will be headquartered in Louisville, Ky., where National Processing - which provides services to approximately 700,000 merchant locations across North America through its merchant card services unit - is based.