Looking for MLS Head Count

I am working on a project, and I am trying to find out the answers to the following questions ... How many MSP's, merchant banks, ISOs and reps for MS[Ps] are there in the U.S.? I am looking for an overall scope of the business as it stands now, so any other information with regard to these questions would be greatly appreciated. On another subject, I have been in several industries in my professional career and The Green Sheet is by far the best industry resource that I have ever encountered.

Thank you.
Mark

Mark,

Wow! That is quite a project. I am sorry to say that there are really no firm answers to your questions. The Green Sheet has been trying to determine these numbers for quite a while. Although we have not been completely successful, we have managed to make some estimates. Review GSQ "The Quest for the King's Portfolio" (September 2004, Vol. 7 No. 3) [6,765k pdf] . In this GSQ, our annual report on the overall state of the "feet on the street," we estimate that no fewer than 15,000 merchant level salespeople (MLSs) are working in the industry today. There are many reasons that contribute to the elusiveness of these numbers. One is the amount of movement in the industry. MLSs switch ISO partners a lot, and much consolidation occurs among ISOs. Another reason is the unwillingness of companies to share information. Companies carefully guard numbers, and they are not willing to give the competition any kind of an "edge." Your questions are some of the most frequent questions posed to The Green Sheet. I hope that we have been of some assistance to you.
Editor

Are Visa and MasterCard Nonprofit Organizations?

In the article "Advisory Board: Discussion on Interchange" [ The Green Sheet, July 25, 2005, issue 05:07:02 ], Adam Atlas stated "My general understanding of bank Associations is that they are not-for-profit organizations." Is this true? I recall reading in several historical accounts of the industry that both NBI (Visa) and ICA (MasterCard) were originally nonprofit organizations. But I also seem to remember a blurb (most likely in GS) that MasterCard changed to a for-profit status. I looked at both companies' 2004 Annual Reports and at the State of Delaware Division of Corporations (https://sos-res.state.de.us/tin/controller) and can find no clear indication of such standings. Are Visa and MasterCard nonprofit? What exactly does that mean?

David Leppek
Pay By Touch Solutions

We forwarded David's question to Adam Atlas, who provided the following response:

When I used the term "not-for-profit," I meant that profits do not accumulate in Visa and MasterCard. Instead, the substantial fee revenue that accumulates in them is, as far as I am aware, funneled up to the banks that are members of the Associations. So, when I say not-for-profit, I do not mean that they are charities or operating for the general good. Instead, I mean that they are pass-through entities through which the banks earn plenty of profit. Of course, Visa itself has substantial operating expenses and other than processing services, serves the important role of upholding the Visa brand for the benefit of all member banks. I have not researched exactly what kind of corporate entity Visa is. However, I know that only banks are owners/members/shareholders. For example, you and I can't go out and buy Visa stock.

Best regards,
Adam Atlas, Attorney at Law
atlas@adamatlas.com

Correction
The New Products story, "Merchants Draw a Card for Fast, Secure Transactions" (The Green Sheet, July 25, 2005, issue 05:07:02), incorrectly stated that Medasyst Inc. "provides security certificates to merchants." The company does not provide this service. The Green Sheet regrets the error.