The agreement was announced at a press conference at the Bank of Valletta's Head Office by the Bank's Chairman Joseph F X Zahra and Pascal Guignard, vice president, American Express Global Network Services.

Bank of Valletta will start the first phase of managing all aspects of American Express merchant relationships in Malta including the acquiring of new merchants and servicing existing merchants. American Express will however continue to have responsibility for all elements of card operations, including cardmember billing and payment systems, accounting, customer service, credit and fraud control.

“Our agreement with the Bank of Valletta marks a very significant step in developing our Merchant Network in select markets around the world,” said Pascal Guignard, vice president of American Express Global Network Services -- the unit that manages third-party business agreements. “We are delighted to strengthen our relationship with the Bank as both companies share similar objectives of delivering superior customer service and innovation. Through this agreement we have a strong local partner who will be able to meet the needs of a growing merchant base.”

Addressing the press conference, Bank of Valletta Chairman Joseph F X Zahra said, “We are very proud to associate ourselves with such a prestigious brand name as American Express. This new agreement is surely bound to enhance our product offer as well as bring in more expertise from such a major player in the credit card industry that will ultimately benefit all our customers.”

Zahra added, “We also view the agreement with American Express as a substantial development in the Bank of Valletta's strategy. Our quality of service, combined with many years of experience and knowledge of the local market, are a guarantee that Maltese businesses will benefit from integrated American Express Card acceptance.”

As a result of this agreement, Maltese merchants will ultimately benefit from full local market servicing and support through the availability of a local phone number, 24-hour card authorizations locally from the Bank of Valletta, one integrated statement for merchants itemizing all of their credit card sales which facilitates the reconciliation of transactions, quick merchant set-ups and new marketing opportunities.

These services will be rolled-out to Maltese merchants immediately and is expected to be completed by April 2004.

The signing of the agreement between Bank of Valletta and American Express was also attended by Tonio Depasquale, Chief Officer, Credit Management and Retail Business of Bank of Valletta, Raphael E Vassallo, Executive Head Consumer Lending and Martin Azzopardi, Head of Card Services from Bank of Valletta.

American Express and Bank of Valletta started working together in 1991 when the Bank became an American Express paying agent, reimbursing Maltese merchants for American Express transactions.

About American Express Global Network Services
Since 1996, American Express has been pursuing a strategy of opening its merchant network and card product portfolio to third-party issuers around the world. By leveraging its global infrastructure and the powerful appeal of the American Express brand, the Company aims to gain an even broader reach for its network worldwide. American Express has established nearly 80 card-issuing partnership arrangements in close to 90 countries.

For more information about American Express Global Network Services business, please click here.