Augusta, ME (PRWEB) January 31, 2013
Merchant Data Systems, a major leader in merchant processing continues to encourage a strong client/company relationship by implicating a new mergers and acquisitions partner program to the state of Maine. The purpose behind this program is to give merchants of this state a chance to partner up with larger, leading companies and sell their merchant portfolio. In the joint program, merchants have either the right to partner with the merging company thus generating a stronger portfolio, which leads to a larger cash pay-off on an ISO portfolio, or the recipient may take the money made as a total sum.
Understanding M&A Proposition: Mergers and Acquisitions is one type of game plan for the way a large company deals with the selling, division, and buying of smaller businesses. Below are several questions and answers that will shed some insight on the way a M&A partnership works, and how the services of MDS figure into it all.
What is/are the Benefit(s) of Those involved in the Mergers & Acquisitions Partner Program?
The Mergers & Acquisitions Partner Program enables merchants with an ISO portfolio to receive cash for their portfolio while running their business. In the long run, a merchant who chooses to join up with a larger company actually broadens operational integration, which can cut the operating expenses for that merchant in half. Also, with this merger comes the merchant benefit of having a 24/7 customer service team to assist them with any business concerns. Adelard Gasana, Co-Founder of Karma Snack and partner with MDS mentions,
"Merchant Data Systems is a leader in the merchant acquirer sector because they offer a program that gives business owners varying options for how the acquisition will be handled."
What Role does the Merchant Portfolio Play in Relation to a Mergers and Acquisitions Partnership?
In the case of the Maine Mergers and Acquisitions Partner Program, the concept of the merchant portfolio serves as a valuable asset for managing and maintaining any profit made by the business owner. Merchant portfolios are a collection of accounts for the merchant services and sales provided, nothing more than a record of credit card transactions handled by an ISO. The portfolio simply makes the organization of these transactions easier to keep track of.
What is the Main Function of an ISO, and How does that Role Affect Merchant Processing?
An ISO is an individual or organization that is not affiliated with any of the credit card companies, but does correspond with those who solicit in other business functions. An ISO’s role is to see that every credit card transaction is executed smoothly so that each merchant receives a speedy pay out.
How is the Partner Program Expected to Impact the Local Merchant?
By signing on to the mergers and acquisitions partner program, a merchant is able to take credit card transactions without the additional step of having that transactions getting verified by a merchant acquirer. Merchant Data Systems hopes to provide their clients with a faster, more efficient way to process credit card transactions for speedier payouts, while at the same time helping to strengthen the bond within a company to company relation and increase business proficiency.
Between Big Business or Merchant, Who Benefits More from the Buying of a Merchant Portfolio?
Essentially, it is the larger business that is going to benefit more from purchasing a merchant’s portfolio. The reason for this is because a merchant to company agreement is drawn up by the company making the purchase. In other words, if you’re the big company buying from the merchant, and you have set the terms of the contract, then the ball is in your court so to speak and you end up getting more profit than your partner. A larger business can always make up for financial loss by partnering with another merchant, whereas a merchant only has one chance to gain a profit by selling their portfolio.
What is the Advantage of Selling an ISO Portfolio?
Unlike the aforementioned portfolio, an ISO portfolio has been organized by a professional, so there is less chance for error within the figures. In order to avoid any of the risks involved with selling your merchant portfolio, the alternative would be to sell an ISO portfolio, which will sell at higher price. Another advantage to doing this will allow for the merchant to carry on a longer standing business relationship with the other company, which in turn will hopefully make for a more secure financial future for both.