Payments Industry Blog

My ISO Just Sold My Merchant Accounts???

Here's a real inquiry from one of our MerchantPortfolios.com members who is a merchant level salesperson (MLS): "I have been an agent for an ISO for about 2 years. The other day I received a note that the ISO was doing their "yearly evaluation" of which merchant accounts in their portfolio...

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Are First Data Portfolios Worth More Than Portfolios With Other Processors?

I was recently asked to answer this question on behalf of a subscriber to The GreenSheet. Here's my answer... Assuming we are comparing apples to apples, the short answer would be yes. (but the reason is probably counter intuitive). For example, does a First Data (FDR) portfolio, with the exact same internal...

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Selling Your Merchant Processing Residual: First Right of Refusal

For many merchant level salespeople, selling your merchant processing residual can be an eye-opening experience. You had always heard of it being done, and in most cases, that the transaction itself was relatively simple. For the most part, this is true, at least comparatively speaking as opposed to selling a...

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Homework For Sellers In The Payments Space: Have Your Reporting Ready

In making acquisitions of merchant portfolios, residuals, or merchant processing ISO’s, would be sellers must understand what will be expected of them in terms of what buyers will request of them pertaining to due diligence. Part of any due diligence request for these types of acquisitions will be seller’s monthly...

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Strategic Reasons For Acquiring Merchant Portfolios: Cross Selling

There are many value propositions to acquiring a merchant portfolio. If you're already in the merchant processing space, accretive revenues and transactions are the most obvious. However, for many business savvy, non bankcard industry entrepreneurs, there exists the notion that if they find a merchant portfolio with a material concentration...

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Merchant Residual & Merchant Portfolio Sales: Due Diligence FYI’s For Sellers

For sellers of merchant portfolios and sellers of merchant residuals, there are a couple of basic things you need to know about the process involved with these types of tranactions, especially as it relates to the initial information, or due diligence request, you should expect to receive from potential buyers. 1)...

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Paymentech Portfolios: Staying On The Paymentech Platform

Recently we've experienced an increase in inquiries from First Data ISO's (formerly Paymentech ISO's) whose merchant accounts are still primarily processing on a Paymentech front and back-end. The impetus for the inquiries are manifold: 1) ISO owners are being forced to convert their merchant accounts off the Paymentech platform and...

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Merchant Portfolios & Merchant Residuals: Sourcing Deal Flow

Another inquiry I receive frequently from would be purchasers of merchant portfolios and merchant residuals is 'how can I find one to buy?'. When confronted with this question my first comment back to the buyer is to confirm they have a proper working knowledge of the organizational hierarchy of the...

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Merchant Residual Valuation: Know What They Are NOT Worth

The 'Holy Grail' of most inquiries regarding the value of a merchant portfolio or a merchant residual has been, and remains to be ,how much are they worth? For the new buyer, or the seller who is entering the market for the first time, lesson #1 in terms of understanding...

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ATM Business For Sale, ATM Portfolio For Sale, & ATM Route For Sale: Geography

If you are attempting to sell your ATM business, ATM route, or ATM portfolio, you should be cognizant of the drivers that buyers assess to determine valuation. This holds true for all sellers of all types of opportunities. However, when it comes to ATM properties, you should know in most...

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