, Inc. releases 3rd Qtr Income Results
Posted by: Curtis Stevens on November 14th, 2009

Ipayment recently released their 3rd qtr profit results. There are a few things I noticed that was interesting. N ot only did their revenues decrease compared to last year, but their revenue net of Interchange went down as well. However, their net income actually stayed the same. Why is this you may ask? Many companies are charging for what the credit card processing industry calls PCI Compliance. Most of your major players charge some type of fee each year, whether it is a monthly or yearly fee. When Ipayment started charging their merchant bases, they charged $30 a year for the first year. When the next year came around, they increased that to $129 a year. I understand most companies have had a big cost when it comes to implementing PCI compliance and ensuring their own company is in compliance, but the first year at $30 per client should have covered most of that costs. So the next time they charged $129, that was mostly all profit. If you multiple that times their 140,000 customer base, you can see how that possibly played a big role in their net income staying the same.

Comments are closed.

Merchant Accounts | Credit Card Logos | Ecommerce Blog
Merchant Account Articles | Resources | Link-to-Us | Privacy Policy