Payment Industry Consultants

Posts tagged merchant processing

High Stakes for Agents in 2017: Re-evaluating the Agent vs ISO Question

As the acquiring industry continues to rapidly reinvent itself, birthing a variety of new, technology-centric business models to better service the demands of the modern day merchant, many long time merchant level salespersons (“MLS’s”) and agents are faced with the increased pressure of having to decide how best to position their companies for a successful future. The sheer velocity of this “reinvention” of the acquiring industry has forced many agents to re-evaluate the upside of continuing their agent status versus registering directly with MasterCard and VISA and becoming an ISO. As a “successful future” for a business is oft measured by sustainability, growth, and value creation, 2017 will be a determinative year for many agents who will be forced to reconcile themselves to one or the other of these two pathways forward. Read more...

Micro Deals: Small Residual Transactions


In the present financial environment where we witness wild daily swings in the Dow Jones, one area of portfolio and residual sales is particularly active- “micro deals”.  Residual transactions involving net monthly processing revenue between $1k and $20k are numerous.  There are plenty of sellers, and contrary to what many people would like you to believe, plenty of buyers. Read more...

eCommerce Merchant Processing, Direct Debit and SEPA


I’m hearing mixed comments from US and foreign ISOs and PSPs.  Some claim that they are signing more merchant accounts than ever.  Others tell me that they are adding accounts but the average ticket and gross consumer dollars processed are down.  Of course in this industry, asking an ISO for a true picture of what’s going on in their business is analogous to talking with the guy who just got back from Vegas and is happy to tell you how much he “won”.  They never tell you how much they lost up until that point at which they win.  One thing which is apparent is that there are some growth areas both domestically and worldwide which need to be looked at if you are someone interested in long term growth and are broad minded enough to think outside of the traditional brick-and-mortar model. Read more...

The Residual Buying Game


One of the most interesting areas and perhaps one of the most profitable within the merchant processing industry is the purchasing of residual streams.  For anyone outside of the industry looking in, it is hard to fathom that agents and ISOs can sell their revenue streams.  In most industries, you can’t decide one day that you want to monetize your future cash flows and effectively sell them in a secondary marketplace to a buyer who is going to pay you a lump sum today.  Other than folks who sell their future lottery payments or insurance settlement payments, it is practically unheard of. Thus the merchant processing business offers yet another unique opportunity for savvy buyers and investors to profit. Read more...