Leumi Card Ltd. is quitting the check clearing and payment guarantee business. The credit card company has reportedly closed the activity, which it launched in 2005 through Leumi Check Ltd., due to accumulated losses.
Leumi Card said in response, "Since this business was not synergetic to the company's activity, the company is in advanced negotiations to sell the activity to another financial institution."
Leumi Card recently hinted broadly to its customers, saying that it would shortly terminate its check payment guarantee business.
Leumi Check has three businesses: check payment guarantee, guaranteeing rent payment checks, and check clearing. The company says that it provides services for thousands of businesses.
Bank Leumi (TASE: LUMI) owns 80% of Leumi Card and Azrieli Group Ltd. (TASE: AZRG) owns 20%.
Published by Globes [online], Israel business news - www.globes-online.com - on June 10, 2010
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