What a difference a decade makes. The payments industry was in quite a different place in the 1990s, when mergers and acquisitions reigned supreme.
The reason for that uptick in activity, according to Marc D’Annunzio, a partner at McKenna Long & Aldridge LLP in Atlanta, is that the payments business is scale-intensive. “It isn’t just about building a system that can support merchant transactions on a given volume,” he says. “Once you’ve built the system, there are a lot of fixed costs you have to incur before you can get it up and running, operational, and compliant.”
After a company has cleared those hurdles, however, most adopt the theory that “the bigger you can get and the more transactions you can run through the system you’ve built, the more revenue you can generate and the more money you can make,” he adds.
Download the full PDF
|
|
One of the worst credit crunches in decades is posing a challenge for ISOs seeking outside investment.
The availability of financing tightened dramatically after the Bear Stearns takeover in March, reports Kurt Strawhecker, managing partner of the Strawhecker Group. At least one investment firm preparing to make a major equity investment in an ISO pulled out at that time, he reports.
While deals are still possible, the price of a cash infusion has risen. Investors now demand either higher interest rates or a bigger equity stake to justify their investments, and they’re more selective about
the projects they will consider, Strawhecker reports. “ISOs need to pick the right time to raise funds, and now is not the right time unless funding is absolutely critical,” he observes.
Downlaod the full PDF
|
|
The best and brightest were out in force at the 2008 ETA Annual Meeting and Expo in Las Vegas.
Nearly 3,000 payments professionals packed the Mandalay Bay Resort and Casino April 15-17 for the three days of education, networking, and product demonstrations. This year’s event attendance was the second largest ever—something that was certainly noticed.
“This year’s outstanding attendance demonstrates the continued and vibrant growth of ETA as well as the entire payments industry,” says Carla Balakgie, executive director of ETA.
Download the full PDF
|
|
|
Vertical Markets: Pretroleum Retailers |
|
|
|
Doors continue to open for ISOs and merchant processors in the petroleum sector as concern over spiraling transaction processing costs and security fuels the market for new electronic payment acceptance options and technology upgrades.
“Our merchants have never been resistant to changing the way they transact business, but current issues are making them increasingly receptive to—if not demanding of—new solutions on the point-of-sale front and beyond,” explains Jeff Lenard, vice president of communications at the Alexandria, Virginia-based National Association of Convenience Stores (NACS), The Association for Convenience and Petroleum Retailing.
Download the full PDF
|
|
|
ISO Corner: Defining Values |
|
|
|
Creating value in a declining economy is a challenge facing ISOs everywhere. But in the bankcard business, what comprises a strong portfolio?
Stable, recurring revenue is the most important component of an ISO portfolio, according to Bob Carr, CEO of Heartland Payments. But he doesn’t necessarily see an industry standard that works for all portfolios.
Download the full PDF
|
|
|
|
Online Issues 