Payments Industry Blog
I often write about the different attributes of the merchant portfolio which factor into the valuation of the merchant portfolio, whether you're a buyer or seller. As I have stated many times in the past, the attribute which is arguably weighted most heavily is the attrition of , and associated...
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There are a few reasons why the age of your merchant accounts are relevant to the valuation assigned to your merchant processing portfolio, residual, or ISO. As a prospective seller, you should expect that the age of the accounts will be one of the many attributes a buyer will want...
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One of the most important attributes of your merchant processing portfolio that is considered by buyers when you go to sell your merchant portfolio or merchant processing ISO is attrition. Strangely enough, this attribute is not something that most owners of merchant processing portfolios (so I have found) understand correctly. Attrition by...
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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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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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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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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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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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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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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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