Payment Industry Consultants
1-617-765-0064

Payment Industry Trends

How Integrated POS and Infrastructure Technologies Lift Merchant Acquirer Valuations: Connecting the Dots

Full version of article originally published in The Green Sheet, 6.27.2016 Edition. Written by Adam T. Hark Theory has met reality in the merchant acquiring world. It’s no longer just an idea that there’s a ubiquitous convergence of technology and payments processing underway — it’s a fact. Before a merchant acquirer surrenders to this reality, however, and starts investigating which technologies may be worthwhile embracing, whether through acquisition, partnership, or development, it surely makes sense that an acquirer’s first inquiry should be, “what do these new technologies actually do for my platform?” The answer to this question, together with understanding the added value contribution, will pull back the curtain on how these technologies work to lift merchant acquirer valuations. Read more...

Two New Concerns in Merchant Portfolio Valuation

As the acquiring industry has matured over the years, owners and operators of both ISOs and MLS/Agent Offices have become wiser in understanding the more important drivers in the valuation of their bankcard portfolio properties.

Most owners understand the importance of knowing their rate of attrition (although not all know the proper way to calculate it), and most owners intuitively understand the issues of revenue concentration, where a small subset of accounts is throwing off a disproportionately large amount of residual compared to the rest of the merchant portfolio. Read more...

Selling Your Merchant Processing ISO: 5 Things That Make Your ISO More Attractive To Buyers

As the times change, so too do our perceptions of what is good and bad. And just as in life in general, this natural course of things holds true in the merchant acquiring industry.  What buyers of merchant processing ISO’s and portfolios perceived to be positive attributes just 6 or 7 years ago, no longer holds true…at least not exactly. Read more...

Merchant Portfolio & Merchant Residual Attrition: How To Factor In The Durbin “Bump”

As I have written about many times in the past (and will undoubtedly write about many more times in the future), the attrition of a merchant portfolio and or merchant residual is one of the most heavily weighted, if not the most heavily weighted, attribute which goes toward your merchant portfolio’s or merchant residual’s valuation. Because of this, both buyers and sellers  need to not only understand which attrition metric is the most important, but also, be aware of anything that would materially affect the calculation of that attrition. I’ve alluded to this somewhat in a previous post (“Selling Your Merchant Portfolio, Merchant Residual, or Merchant ISO: The Bizarre Attrition Metrics of 2012”). I would like to expand on this subject here, given that as of late there has been much consternation experienced by both buyers and sellers trying to get a handle on attrition, particularly as it pertains how attrition has been affected by the Durbin Amendment and its attendant rise in merchant processing revenues: the Durbin “Bump”. Read more...

The Banks Are Back!

It’s nice to take a break every now and then from writing about the purchasing and sale of merchant processing opportunities in the merchant portfolio and merchant residual marketplace, and write about some of the trends being seen by the real heart and sole of the payments processing industry: the merchant level salesperson. Read more...