he number five U.S. bank, Wachovia Corp., announced it is dropping Concord EFS, Inc. as its debit and ATM processor and instead has hired Visa International Inc. and First Data Corp.

Concord EFS processed Wachovia's PIN-based debit and ATM transactions through its STAR network, in conjunction with First Data's NYCE. Visa DPS will now handle Wachovia's signature-based debit cards, Visa's Interlink will handle PIN-based transactions and First Data's NYCE network will handle ATM transactions.

Wachovia is moving its business before Concord's contract expiration date of December 31, 2004.

The bank said it has about 7 million debit card holders, which makes it the fifth-largest provider of debit cards in the U.S.

Wachovia picked Visa and First Data after an 18-month review of processors that began when First Union Corp. (FUC) bought it in 2001 (FUC kept the Wachovia name). Since the two banks had two different network relationships and different logos on cards they issued, the combined company had to decide on only one processor.

The bank said it had the best service for its customers and the best return for its shareholders in mind when it made the deal with Visa and First Data.

Terms of the deal were not disclosed. "While we're disappointed that Wachovia reached this decision, the STAR network contributes significant value to our customers' delivery systems, and such value is worthy of fair compensation and profitable returns," Bond R. Isaacson, Co-CEO of Concord EFS, said in a statement.

Concord may see Wachovia's business again, although under the First Data name, if First Data's proposed $7 billion acquisition of Concord is approved by the U.S. Department of Justice. First Data expects the deal to close in the fourth quarter 2003.

In March 2003, First Data learned it would lose its largest customer, Bank One Corp., when the bank announced plans to move its credit card processing business in-house. The two companies still are working together to ensure a smooth transition.