The Bank of Bermuda is to take on an extra 16 people as part of a joint venture with an company which provides Internet payment processing services.

The bank has teamed up with First Ecom.com, a leader in Internet payment processing services, to form First Ecommerce Data Services Limited (FEDS).

The new joint venture company that will provide a comprehensive suite of global credit card payment processing services to banks and their merchants -- both online and brick and mortar.

Executive vice president of retail clients at the bank, Alan Richardson, said: "This is another development in our e-commerce strategy that will continue to place Bermuda at the forefront of e-commerce.'' The deal is subject to the finalisation of relevant regulatory approvals, First Ecom.com and Bank of Bermuda have created FEDS to provide banks and their merchants with online and batch transaction processing for Visa, MasterCard, credit and debit cards.

Vice president and electronic banking manager at the Bank, David Lema, said: "We expect that FEDS will create up to 16 new jobs in Bermuda. Our latest venture is significant and we are very proud that specialised skill sets are being developed here in Bermuda to compete with the very best onshore e-commerce service providers.

"E-commerce is a major development for Bermuda and we are actively committed to fostering its growth.'' The FEDS `Processing Solution' includes authorisation, electronic data transmission for settlement, and full transaction reporting.

FEDS will grant banks the authority to give their merchants access to the FEDS Processing Solution, which provides a wide range of new services for researching, retrieving and archiving the data associated with the transactions processed on behalf of the banks and their merchants.

The Bank of Bermuda will provide the card processing systems, staff, data processing centre and other supporting features, including formal authorisation and licenses with regard to the processing of credit card transactions by holders of VISA and MasterCard credit cards.

"This is by far our most significant venture to-date, said Gregory Pek, First Ecom.com president and CEO.

At the forefront: Banl of Bda exec. vice president-retail clinets Alan Richardson