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The consummation of the long-anticipated merger between Maitland, Fla.-based Honor Network and Reston, Va.-based Most Network is aimed at building transaction volumes so the networks can add to their product menus.
The new network, which will probably retain the Honor name, will become the fourth-largest EFT network in the country behind San Diego- based Star System and Wilmington, Del.-based MAC and NYCE EFT networks. The combined network will serve an area stretching from Connecticut to Florida and west to Arkansas and Louisiana.
With more and more transactions being pumped through the EFT switches, economies of scale can be reached. The two networks can then direct their resources to new endeavors.
"In order to compete, having a critical mass is going to become more and more important of an issue," said Tom Bennion, president and CEO of the Honor Network. "I think having as much volume as you can get pumping through your system allows you to do a lot of things."
The consolidated network will serve more than 1,600 financial institutions and 40 million cardholders through 19,000 ATMs and 120,000 point-of-sale (POS) terminals (see box, p. 5). The monthly switch volume should reach 45 million transactions, according to the networks.
Honor and Most are looking into entering...