Business for Sale Overview:
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.
For more information regarding this listing please contact us by completing the "Contact the Seller" form below. We look forward to hearing from you.
Property Features and Assets:
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 Competition and Expansion:
Main competition are other web based ACH Processing companies located throughout the United States but mostly on the West Coast.
Expanding into more vertical markets such as health clubs, tanning salons, vitamin shops, etc. would increase revenue. Doing more direct mail, telemarketing would also increase revenue. Recreating the commission structure based on volume would up the profit margin. Right now, the commission is paid at a flat 30%. Expanding further into the software industry would also help. The President is currently working with about 15 software companies.
A motivated owner working 30 - 40 hours a week could also greatly expand the business as the current owner only works 5 - 10 hours per week.
Reason for Selling:
Transitioning into family business.
Additional Details:
- The property is owned.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
- This is not a distressed business or bankruptcy situation.
Contact the Seller:
To contact the seller of this business for sale, please complete and submit the following email form. The seller or broker will be in touch with you typically within 1-3 business days. Fields with an asterisk (*) are required.