Three years ago, Ben Levitan consulted with friends Irwin Grossman and Evan Hackel to tackle a business challenge he'd identified. All three men were C-level leaders from diverse industries; together, they worked to outline the solution. And soon Delta Payment Solutions was born. Grossman, chief executive officer of the Westin, Mass.-based venture the three men launched, said Levitan described the challenge: the merchant processing industry has become "more complex, less transparent and more expensive" in the last 10 to 15 years.
After considering the landscape, the trio concluded some business sectors were getting hit harder than others. Among them were midsize companies, especially those at the low end of the bracket.
"We wanted to figure out how to help these companies work with an industry where there are hundreds of agents, ISOs and resellers that make the industry very difficult to navigate and really understand what truth is," Grossman said. Hackel's career was in the franchise and cooperative arena, and it was his knowledge that ultimately led the men to look at the payments industry through a similar lens. "We decided to start a company that managed a cooperative, and we believe we're the only true cooperative in the merchant processing space," Grossman stated. Sweetening the value Grossman said introducing the cooperative business model into the merchant services world enables Delta "to use buying power to negotiate really great rate structures to pass on to merchants who are members, without adding obscene amounts of margin." He also noted 50 percent of the revenue earned by the cooperative is returned to the merchants in the form of rebates. "By combining that structure with a co-op, we're providing merchants with a value proposition that is hard to beat," he said.
Delta offers its members access to a growing network of credit and debit card processing providers and financing partners as well as an accounts receivable management program. Grossman noted that the cooperative is also working with a partner that provides larger merchants and business networks with private-label credit cards that include full loyalty programs.
"All of the products and services we give the merchants will work with the 50 percent rebate, and as we grow, that incremental rebate will grow in 5 percent increments until we give back 75 percent," Grossman stated.
Delta's cooperative works exactly like big-brand, community bank or credit union cooperatives. Members pay a small fee upfront to own a single share of stock, and if they leave the group, that investment is refunded. The Delta cooperative manages vendor relationships, negotiating exclusive rates for its members, and assists members with submitting new merchant account applications.
"They [cooperatives] work for the benefit of their members to get advantageous cost positions and share best practices," Grossman stated, adding that Delta's partners and members view the cooperative as a credible organization that looks out for small and mid-sized merchants. "Many back-end processors and large ISOs don't go after the small side of the mid-sized company sector," he said. "Our whole approach is to be simpler, very transparent and lower cost."
Delta has a complement of referral partners who connect them to decision-makers inside merchant organizations or service providers that might consider optimizing their solutions. Grossman indicated these partners range from individuals who make introductions and set up initial meetings to very experienced professionals who take on the majority of the marketing and sales process. "We have a strong compensation program that continues throughout the life of every client associated with each referral partner," Grossman said.
Delta's founders affirmed that as the company continues to evolve, they will continue to seek new ways to serve members and expand the cooperative's value. "This is unheard of in the payment processing industry, and to some it's counter intuitive, but it provides merchant members with yet another way to enhance profitability," Grossman said.
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ISO/MLS contact:
Irwin Grossman
Chief Executive Officer
irwin@mydeltaps.com
781-864-3141
Company Profile originally appeared in
The Green Sheet Issue 200601
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180801 - Century Business Solutions
180502 - Priority Payment Systems Northeast
180501 - Merchant e-Solutions Inc.
180301 - Wirecard North America
171202 - Secure Cryptopayments
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170902 - Frates Insurance & Risk Management
170901 - DCS Holdings Group LLC
170802 - Apogee Payment Systems LLC
170702 - Active Software & Hardware Systems
170701 - Veratad Technologies LLC
170502 - Frontline Processing Corp.
170501 - Platinum Choice Bancard LLC
161202 - International Bancard Corp.
161201 - CSR Professional Services Inc
161102 - Digitzs Solutions Inc.
161101 - Residual Sheriff LLC.
160801 - DigiPay: Solutions Inc
160702 - CreditCardProcessing.com
151202 - Benseron Information Technologies Inc.
151201 - CardWare International Inc
151101 - Lion Capital Group LLC
150801 - Topcreditcardprocessors.com
150702 - Vision Payment Solutions LLC
150601 - Conformance Technologies
150502 - Global Processing Systems
150402 - Mercantile Processing Inc.
150401 - Field Guide Enterprises
150302 - Signature Card Services
150301 - Premier Payment Systems Inc.
150201 - Humboldt Merchant Services
141102 - National Merchants Association
141001 - Instant Credit Manager
140902 - Merchant Cash and Capital LLC
140701 - National Transaction Corporation (NTC)
140601 - Total Merchant Services
140501 - Nationwide Payment Solutions
140501 - BPC Banking Technologies
140301 - Meritus Payment Solutions
131202 - First American Payment Systems L.P.
131102 - Evo Payments International LLC
131001 - Live Reps Call Center
130901 - Regal Payment Systems LLC
130901 - The Merchant Solutions
130802 - North American Bancard LLC
130801 - Payment Logistics LLC
130702 - Plug n Pay Technologies Inc.
130601 - U.S. Merchant Systems LLC
130402 - National Processing Co.
130202 - Charge Card Systems Inc.
130202 - Layered Technologies Inc.
121202 - American Microloan LLC
121102 - Keep in Touch Systems Inc.
121102 - Merchants Choice Payment Solutions
121002 - Washington Bancard Merchant Services LLC
120902 - Central Payment Co. LLC
120802 - Royal Merchant Holdings LLC
120801 - National Benefit Programs LLC
120602 - Cardinal Commerce Corp.
120601 - Veritrans Merchant Services LLC
120502 - ExecuTech Lease Group
120502 - The Small Business Authority
120402 - Chargeback Guardian Inc.
120401 - Electronic Payment Exchange
120301 - Complete Merchant Solutions LLC
120201 - CSR - Compliance Solutions and Resources
111002 - Lead Source Call Center
111001 - First Annapolis Consulting Inc.
110902 - Point of Sale System Services Inc.
110901 - Sage Payment Solutions
110801 - Century Payments Inc.
110702 - Creative Vision Studio LLC
110702 - Network Merchants Inc.
110701 - Capital Access Network Inc.
110602 - eProcessing Network LLC
110602 - Moneris Solutions Inc.
110502 - Paragon Application Systems Inc.
110401 - Merchant Implementation Services
101202 - CheckAlt Payment Solutions
101102 - Impact Payments Recruiting
101101 - Global Electronic Technology Inc.
101002 - TriSource Solutions LLC
100802 - Federated Payment Systems LLC
100801 - Voltage Security Inc.
100601 - NETSURION (formerly Vendor Safe Technologies)
100502 - Transaction Network Services Inc.
100402 - Secure Payment Systems Inc.
100401 - Elite Merchant Solutions
100302 - Retail Decisions Inc.
091201 - Performance Training Systems Bankcard Boot Camp
091101 - Merchant e-Solutions Inc.
091002 - Whitehall Capital Advisors LLC
090901 - CoCard Marketing Group LLC
090801 - First National Merchant Solutions
090701 - checXchange Money Transfer Systems Inc.
090601 - Sterling Payment Technologies
090502 - Infinity Payment Systems
090501 - Merchant Cash and Capital
090401 - UseMyBank Services Inc.
090401 - Data Delivery Services Inc.
090302 - Velocity Merchant Services
090302 - Metro Merchant Services
090301 - Smart Transaction Systems Inc.
090301 - DCC Merchant Services USA LLC
090202 - TransFirst Holdings Inc.
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081201 - On-line Strategies Inc.
081101 - Vision Payment Solutions LLC
081002 - Veratad Technologies LLC
081001 - International Merchant Solutions LLC
080801 - GreenSoft Solutions Inc.
080702 - Smart Circle International
080601 - International Bancard Corp.
080502 - DRG Telemarketing Inc.
080501 - BCC Merchant Solutions
080402 - U.S. Merchant Systems
080401 - Greystone Business Resources Corp.
080302 - Transmedia Payment Services Ltd.
071202 - Barclay Square Leasing Inc.
071102 - FirstView Financial LLC
071001 - Sage Payment Solutions
070902 - YourTownMall Business
070901 - Nxgen Payment Services
070802 - All card Processing-AAMonte-USA
070801 - Money Movers of America Inc.
070602 - Central Point Resources Inc.
070601 - Positive Feedback Software LLC
070502 - Premier Payment Systems
070501 - Amacai Information Corp.