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Transaction Processing
The Company
First USA Paymentech is the third largest processor of credit and debit card transactions for U.S. merchants. In 1996 PTI processed approximately 7% of the total MasterCard and Visa charge volume in the nation. PTI is a 57%-owned indirect subsidiary of First USA, Inc., one of the largest credit card issuing and processing companies, with about 15 million cardholders nationwide. Paymentech has been on a rampage, logging 25% internal revenue growth -- one of the highest rates in the industry -- over the last year. This has been largely a result of successful integration of acquisitions, which have simultaneously decreased costs due to economies of scale and accelerated revenue and earnings growth. A strategy that focuses on growth in this manner may run up against prices that are too dear for acquisitions, minimizing the benefits of synergy.
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