US Bancorp, the parent company of the US Bank, is set to divest parts of its Elan Financial Services business to Fiserv for nearly $690m.

The sale includes debit card processing network, ATM Managed Services and MoneyPass surcharge free network of Elan Financial Services.

US Bancorp decided to sell Elan ATM and Debit Processing business following a strategic review of the unit.

US Bank vice chairman for consumer banking sales and support Tim Welsh said: “We believe this sale is the right thing to do for the bank and our customers.

“Our customers will benefit from the commitment that Fiserv has for this business, and US Bank will benefit as we continue to reinvest in our core businesses.”

Credit card business

However, the bank will retain Elan Financial Services’ credit card issuing businesses, corporate payments and merchant services payment business.

Fiserv CEO Jeffery Yabuki said: “This acquisition expands our capabilities and provides additional expertise, which together should enhance the value we provide our clients.”

The Elan Financial Services deal includes MoneyPass, which has access to more than 33,000 ATMs across the US.

It will also provide all Elan clients access to Fiserv’s risk management solutions as well as Accel debit payments network.

Subject to regulatory approval and other closing conditions, the deal is expected to close this year.