Update on NCC Check
We have been attempting to print a story on NCC's Check program for several months. While discussing the development of a broad based NCC story with Tom Wimsett, Executive Vice President of Merchant Check Services for NCC, he said, "Although NCC would like to do a story on our check product in Green Sheet, changes at NCC have been our prime focus recently."
Based on our limited conversations with Tom, and the public press release information, here is a thumbnail sketch. In an earnings estimate update on March 12, 1997, NCC reported, "The 1997 business plan for Merchant Services was predicted on continued strong internal growth and selective acquisitions. However, the current pricing environment for both new business and potential acquisitions is more severe than originally anticipated and has reduced perspective returns below acceptable levels." In addition, the decline in net income in the first quarter of 1997 was due primarily to lower profitability in the Merchant Services Division, according to an April 14 press release.
Finally, NCC announced that Kurt S. Knipp, formerly Executive Vice President, Merchant Card Services, has resigned and the Merchant Card Services and Merchant Check Services divisions will be combined under Mr. Wimsett. As Tom moves back to Louisville to assume his new post, we hope things will settle down enough to help us with a story on all the happenings at NCC check, in particular their check truncation pilot efforts. We wish Tom well in his new position.
