payments system.

BFN vice president Alvin Wilson yesterday announced the company has been chosen to take up most of the Island's American Express work.

"We anticipate taking over the new functions within the next few weeks,'' Mr.

Wilson said.

"Amex talked to us about handling their traveller's cheques, all their card needs, their local merchant sales and services, and essentially becoming their key agent on the Island,'' he said.

BFN will handle all American Express functions other than travel, including card member payments, services such as emergency card replacements and Amex payments to local businesses.

Previously the Bank of Bermuda has handled American Express payments for local merchants, while Meyer Travel has managed Amex traveller's cheque sales.

However, Mr. Wilson said both organisations had been "stretched'' in this capacity.

"Traditionally Amex always worked through travel agencies,'' he said, "but because of the nature of the financial services involved beyond travel they found it beneficial to work with an organisation with a solid financial background.'' The deal was subsequently negotiated by BFN president Dal Tucker.

BFN performs cheque guarantees and electronic payroll for Meyer, who recommended the company to American Express for its efficient handling of electronic payments. BFN currently handles about $80 million in electronic disbursements a year, and has considerably streamlined its procedures with new software.

Mr. Wilson said: "We've automated a number of functions, such as cheque guaranteeing and our easy payment service. We've been able to take a job which might take one person a day, and distilled it down to less than an hour's work.'' Aside from concentrating its business with BFN, American Express is interested in using the company's electronic resources internationally, such as in the Caribbean and Central and South America.

"We may possibly take over some of Amex business in islands to the south,'' said Mr. Wilson. "Amex is working very closely with us to see how BFN software can be used elsewhere.''