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Shaw Merchant Group
Saturday, February 10 2024
Credit Card Processing Business for Sale

If you’ve put in the leg work required to build a successful credit card processing business, then you are probably at a point where nothing feels impossible. However, to continue growing your business or jump to another venture to make even more money, you will need an injection of capital. Credit card processing client portfolios are great for building income over the long term, but don’t do much for those that want to get a fast injection of capital to build businesses. If you want to get a lump sum or a loan against your residual portfolio, you can do that. All you have to do is list your credit card processing business for sale and get a buyer or lender to borrow you money or give you money against your portfolio assets.

Though the concept is pretty straightforward, you should still learn as much as you possibly can about this process to ensure you do it safely and effectively and that you get what you deserve from your credit card processing business for sale. This guide will go over some of the most important concepts and points you will need to know if you hope to successfully sell your portfolio of residual income.

Preparation Is Key

If you hope to have success in selling your credit card processing business, then you need to be sure that you have your ducks in a row. This means doing the preparation work and familiarizing yourself with what is possible and what is not when it comes to your residuals portfolio. By going through this process, many credit card processing business owners discover things about their residuals portfolio that they previously didn’t know. This information is vital for anyone that wishes to succeed in selling thier credit card processing business. Follow these basic steps as a launching pad for the sale of your credit card processing business.

Verify Residuals Ownership

If you want to sell your residuals portfolio and credit card processing business, then the first thing that you will need to do is verify that you indeed own your residuals. Many merchant services agents and owners operate under the assumption that they do--until they see the fine print. Working with certain ISOs and other companies could prevent you from selling your residuals. So, instead of wasting your time pursuing something that might not even happen, make sure that you verify that you are authorized to own and control your residual portfolio.

Selling Your Residuals

When you are hoping to sell your credit card processing business, you will need to not only ensure that you own the residuals and portfolio you are looking to leverage into cash, but also that you have the right to sell that portfolio of residuals. This is done by simply looking at the contract that you are entered into. You will need to verify that you have the full right to control this portfolio and pass it on to someone else or use it as leverage in a cash transaction. With this knowledge in hand, you’ll be able to enter any arrangement with full knowledge of what you are able to do with your portfolio of residuals.

Ask About Borrowing

Selling is one thing, but borrowing against your portfolio is another. You will want to make sure that you are able to borrow against your portfolio, which is similar to leveraging what is in your portfolio for a cash infusion. Some processing companies allow this and others don’t--it is specific to who you are working with. In addition to borrowing against your assets with an external lendor, you might also explore the option of borrowing directly from the payment processor. Many companies have programs that will allow you to do this easily and affordably.

Things to Know When Selling Your Residuals

If you are hoping to list your credit card processing business for sale and leverage your residual portfolio into cash, then there are some things that you will need to know ahead of time to ensure a successful transaction. These concepts will teach you more about how to have success when selling your credit card processing business or leveraging your portfolio into the cash you need to pursue your business ventures.


One thing that you will need to be aware of before you sell your residuals portfolio is whether you qualify for a sale of your residuals. For many partnerships, you will need to have a business that generates $1000 or more per month in residuals in order to be considered for a sale of your residual portfolio or a lending option that is centered around your residuals portfolio.

Buyout Ratio

If you have determined that you are going to sell your merchant portfolio and you are eligible for such a sale, then you will need to be familiar with the buyout ratio. Basically, the buyout ratio dictates how much you will receive from the sale as it relates to what your income is from the residuals portfolio. For many portfolios, this number lies between 12 and 24 times what the monthly income is from your residuals. This is what you should generally expect to receive when you sell your residuals portfolio.

Earn Out

Earn out is similar to a buyout, only that you will continue to earn your residuals and gradually be phased out. The payout is paid over a certain amount of time. This allows you to continue earning from your portfolio while also receiving a lump sum up front. This allows for the best of both worlds and makes it easier to make the transition.

Grow Your Business And Gain Capital By Listing Your Credit Card Processing Business For Sale

If you have a successful credit card processing business and have become a payment service provider and you are looking to sell, then listing your credit card processing business for sale or entering into a lending agreement that uses your credit card processing business as leverage are two of the best ways. Now that you know more about these options, you have the power and knowledge necessary to make your cash infusion and business expansion dreams a reality.

Posted by: Scott Shaw AT 03:22 pm   |  Permalink   |  Email

In the world of payment processing, there are two key players that play a crucial role in facilitating electronic transactions: merchant services agents and registered ISOs (Independent Sales Organizations). Both entities serve as intermediaries between businesses and credit card processing companies, helping merchants set up the necessary infrastructure to accept card payments. In this report, we will delve into the differences between merchant services agents and registered ISOs, discuss strategies for selling a payment processing business, and outline effective techniques for selling credit card terminals to small businesses.

Merchant Services Agent vs Registered ISO:

Merchant Services Agent:

  • A merchant services agent is an individual or entity that acts as a sales representative for a larger payment processing company.
  • They earn commissions for signing up new merchants and helping them set up their payment processing systems.
  • Merchant services agents typically work on a contract basis and have the flexibility to work with multiple payment processing companies.
  • They are responsible for prospecting, pitching, and closing deals with merchants, as well as providing ongoing support and assistance.

Registered ISO:

  • A registered ISO is a larger entity that has been authorized by a payment processing company to act as a reseller of their services.
  • Registered ISOs have a more formal relationship with payment processing companies and are typically bound by contractual agreements.
  • They often have access to additional resources and support from the payment processing company, including training, marketing materials, and technical assistance.
  • Registered ISOs may have the ability to offer customized solutions and pricing packages to merchants, depending on their partnership agreements.

Selling a Payment Processing Business:

1. Evaluate the Value of Your Business:

  • Before putting your payment processing business on the market, you should conduct a thorough assessment of its financial health, customer base, and growth potential.
  • Consider factors such as recurring revenue streams, customer retention rates, and competitive positioning to determine the value of your business.

2. Prepare a Business Prospectus:

  • Create a detailed business prospectus that highlights key metrics, financial performance, customer testimonials, and growth projections.
  • Clearly articulate the unique selling points of your business and why it would be an attractive investment opportunity for potential buyers.

3. Identify Potential Buyers:

  • Reach out to strategic partners, competitors, and industry investors who may be interested in acquiring your payment processing business.
  • Utilize industry networks, online marketplaces, and business brokers to identify potential buyers and initiate discussions.

4. Negotiate a Fair Deal:

  • Once you have identified a potential buyer, negotiate a fair purchase price and deal structure that aligns with the value of your business.
  • Seek legal advice to ensure that the transaction is compliant with regulatory requirements and that all terms and conditions are clearly defined.

Selling Credit Card Terminals to Small Businesses:

1. Understand the Needs of Small Businesses:

  • Small businesses have unique requirements when it comes to payment processing, including affordability, ease of use, and customer support.
  • Tailor your sales pitch and product offerings to address these specific needs and demonstrate the value proposition of your credit card terminals.

2. Offer Competitive Pricing:

  • Small businesses are often price-sensitive, so it is important to offer competitive pricing packages that are affordable and transparent.
  • Highlight any promotional offers, discounts, or financing options that may incentivize small businesses to purchase credit card terminals from you.

3. Provide Exceptional Customer Support:

  • Small businesses may require additional support and guidance when setting up and using credit card terminals.
  • Offer training sessions, technical assistance, and ongoing customer support to ensure a seamless onboarding process and positive user experience.

4. Leverage Referral Partnerships:

  • Partner with other service providers, such as business consultants, accountants, or industry associations, to generate referrals for your credit card terminals.
  • Offer referral incentives and collaborate on joint marketing initiatives to expand your reach and attract new customers.


Understanding the roles of merchant services agents and registered ISOs is essential for navigating the payment processing industry effectively. By leveraging the unique strengths of each entity, businesses can optimize their sales strategies and improve their overall performance. Additionally, selling a payment processing business and credit card terminals to small businesses requires careful planning, strategic positioning, and a customer-centric approach. By following the recommendations outlined in this report, businesses can increase their chances of success and achieve their sales objectives in the competitive payment processing market.

Starting a credit card processing company can be a lucrative venture, but it is important to consider the benefits of white label payment processing as a key strategy for success. Additionally, planning for the future, selling your credit card processing business when you are ready to retire, is an essential consideration for any business owner. In this report, we will explore the benefits of white label payment processing for starting a credit card processing company and provide tips on how to successfully sell your business when the time comes.

Benefits of White Label Payment Processing for Starting a Credit Card Processing Company

White label payment processing is a business model in which a company purchases a product or service and rebrands it as their own. In the context of starting a credit card processing company, white label payment processing offers a number of benefits, including:

1. Quick Time to Market: By leveraging white label payment processing services, you can quickly and easily launch your credit card processing company without the need to develop your own technology or infrastructure.

2. Cost-Effective Solution: White label payment processing allows you to access state-of-the-art payment processing technology at a fraction of the cost of developing your own solution. This can help you save money and resources that can be invested in other areas of your business.

3. Customizable Solutions: Many white label payment processing providers offer customizable solutions that can be tailored to meet the specific needs of your business and your clients. This flexibility allows you to offer unique, value-added services to your customers.

4. Access to Expertise: White label payment processing providers have extensive experience and expertise in the payment processing industry. By partnering with a reputable provider, you can benefit from their knowledge and guidance to help you navigate the complexities of the industry.

5. Scalability: As your credit card processing company grows, white label payment processing allows you to easily scale your operations to meet increasing demand. This can help you expand your business quickly and efficiently.

Selling Your Credit Card Processing Business When You're Ready to Retire

When the time comes to retire and sell your credit card processing business, there are several key steps you can take to ensure a successful sale. Here are some tips for selling your business:

1. Prepare Your Business for Sale: Before putting your business on the market, it is important to prepare it for sale. This includes conducting a thorough financial analysis, cleaning up any outstanding debts or liabilities, and organizing all relevant documentation.

2. Find a Qualified Buyer: When selling your credit card processing business, it is important to find a qualified buyer who is able to take over the operations and continue to grow the business. Consider working with a business broker or advisor to help you identify potential buyers and negotiate a fair deal.

3. Establish a Strong Transition Plan: As you prepare to retire and sell your business, it is crucial to establish a strong transition plan to ensure a smooth handover of operations to the new owner. This may include training and mentoring the new owner, as well as providing ongoing support during the transition period.

4. Evaluate Your Options: When selling your credit card processing business, consider the different options available to you, such as selling to a competitor, merging with another company, or selling to a private equity firm. Evaluate each option carefully and choose the one that best aligns with your goals and objectives.

5. Seek Legal and Financial Advice: Selling a business can be a complex process, so it is important to seek legal and financial advice to ensure that the sale is conducted in compliance with all relevant laws and regulations. Consult with experienced professionals to help you navigate the sales process effectively.


White label payment processing offers a number of benefits for starting a credit card processing company, including quick time to market, cost-effective solutions, customizable offerings, access to expertise, and scalability. Additionally, when you are ready to retire and sell your credit card processing business, it is important to prepare your business for sale, find a qualified buyer, establish a strong transition plan, evaluate your options, and seek legal and financial advice. By following these tips, you can successfully sell your business and transition into retirement with confidence.

    ©2023 Shaw Merchant Group is a registered DBA of EPX, a registered ISO of BMO Harris Bank N.A., Chicago, IL, Fresno First Bank, Fresno, CA, and Citizens Bank N.A., Providence, RI.