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Total System and Valley National Bank Renew Payments Deal

Zacks Equity Research

Total System Services Inc. TSS recently renewed its payments agreement with Valley National Bank in order to keep continue processing the bank’s consumer credit and debit card portfolios of the latter. This apart, Total System is likely to provide additional supporting services to valley National such as fraud and risk management, verification and contactless card support to Valley National.

Total System has grown meaningfully over the years through a number of strategic acquisitions, mergers, alliances and partnerships. Prior to this, the company renewed its payment services accord with for  Advanzia Bank.

Year to date, the Total System stock has gained returned 20.5%, whereas the Zacks categorized Financial Transaction Services industry has gained 16.6%. The company’s strong inorganic growth will further have a favorable impact on the stock price going forward.

Valley National has a fast-growing portfolio of credit card and debit cards and one of the largest commercial banks in New Jersey, has been a prized client of Total System. The 20-year old relationship between the companies would be further strengthened by the aforesaid deal along side enhancing Total System’s reach and boosting its value proposition among customers.

On the other hand, Valley National is likely to benefit from Total System’s full support and product expertise which would enable the former to grow and better service its clients. Also, Total System’s global recognition will facilitate Valley National’s card portfolios to grow rapidly.

Total System has been strengthening its clientele by offering customized and flexible processing solutions to its partners across the globe, primarily in the merchant acquiring space. Additionally, the company is making efforts to tap opportunities in the recovering markets through high-grade technology.

Total System carries a Zacks Rank #2 (Buy). Other stocks carrying the same Zacks Rank as Total System are Vantiv, Inc. VNTV, Visa Inc. V and Alliance Data Systems Corp. ADS. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vantiv beat estimates in three of the last four quarters, with an average positive surprise of 3.51%.

Visa beat estimates in each of the last four quarters, with an average positive surprise of 7.24%.

Alliance Data beat estimates in two of the last four quarters, with an average positive surprise of 2.15%.

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