ACH Electronic Payment Processing Company - Merchant Services
| Asking Price: | $2,858,000 | Inventory: | |
| Gross Revenue: | $1,750,000 | Real Estate: | n/a |
| Cash Flow: | $400,000 | FF&E: | $287,500 ++ |
| ++ included in the asking price ** not included in the asking price | |||
This ACH Payment Processing Company is an independent, privately-held provider of payment processing services to merchants across the United States. This is a unique opportunity for a motivated buyer as this company is completely web based. The owner currently works 5 - 10 hours per week. He is willing to stay on in some capacity and is open to holding a 20% minority stake.
This industry is unlike any other; each account holds a residual value, residual income. Merchant accounts are expensive to acquire and history dictates that a 20 - 50x multiplier per account are typical. This company holds high value to a merchant card provider because it opens doors to cross sell merchant card services and open additional check related income streams. Merchant card providers hold ACH ODFI accounts which could reduce the present cost of $0.25 per item to $.03 an item, increasing profits by processing in-house. This company also has relationships with software companies and resellers that open up additional resources for partnerships to market merchant card services.
This ACH processing company is not a terminal and does not service brick & mortar type businesses. All accounts are not face to face. They deal directly with MOTO merchants – (mail order telephone order) and have created their own platform. This company took the ACH system which is a flat fee and created their own interchanged program. They also own all accounts giving it portability. Having direct contracts with merchants lowers their risk and they can also charge flat fees instead of discount. For example, if a merchant’s average ticket is $10, they can charge $0.50 per transaction instead of a small percentage. Furthermore, if a merchant has a $1000 transaction, this company charges 1.5% + $0.25 for the transaction. This is significantly higher than the credit card industry. They are not controlled by rates like the credit card world.
Additionally, all merchant accounts are charged monthly and annual license fees with less then a 1% attrition/drop off rate.
This industry is unlike any other; each account holds a residual value, residual income. Merchant accounts are expensive to acquire and history dictates that a 20 - 50x multiplier per account are typical. This company holds high value to a merchant card provider because it opens doors to cross sell merchant card services and open additional check related income streams. Merchant card providers hold ACH ODFI accounts which could reduce the present cost of $0.25 per item to $.03 an item, increasing profits by processing in-house. This company also has relationships with software companies and resellers that open up additional resources for partnerships to market merchant card services.
This ACH processing company is not a terminal and does not service brick & mortar type businesses. All accounts are not face to face. They deal directly with MOTO merchants – (mail order telephone order) and have created their own platform. This company took the ACH system which is a flat fee and created their own interchanged program. They also own all accounts giving it portability. Having direct contracts with merchants lowers their risk and they can also charge flat fees instead of discount. For example, if a merchant’s average ticket is $10, they can charge $0.50 per transaction instead of a small percentage. Furthermore, if a merchant has a $1000 transaction, this company charges 1.5% + $0.25 for the transaction. This is significantly higher than the credit card industry. They are not controlled by rates like the credit card world.
Additionally, all merchant accounts are charged monthly and annual license fees with less then a 1% attrition/drop off rate.
About the Business
Year Established:1998
Employees:6 full time - 1 part time
Relocatable:Yes
Facilities:The building is an office/storefront, on a main street with adequate parking. It’s approximately 1,500 square feet in size. Completely web-based company and can be run from anywhere. Buyer has option for business to relocate to new state of the art processing facilities.
Market Outlook and Competition:This is a completely web based company in a growing industry. Main competition are other web based ACH Processing companies located throughout the United States but mostly on the West Coast.
About the Sale
Management Training and Support:Owner will include 6 weeks of training with the sales price. Is also willing to stay on in some capacity & is open to holding a 20% minority stake.
Reason For Selling:Transitioning into family business but willing to stay on in some capacity.
Seller Financing:Seller Financing available. 30% - 60% for 3 - 5 years.
KEYWORDS: ACH, automated clearing house, payment processing, electronic payment processing, ACH payment processing services, merchant services, ACH processing, ach electronic payment processing services, ACH payment processing company
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