Sample Business Plan on Credit Card Processing Business Plan
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EXECUTIVE SUMMARY
The Business Concept
ABC Card Service, LLC (ABC Card Service or the Company) offers the most comprehensive card processing solutions in the industry. The Company is a single source solution for all the services and products businesses need to process electronic card sales.
Its debit, credit, gift card, prepaid card, check, c-store processing and ID authentication allows merchants to process electronic card transactions faster and more cost-effectively. The Company was formerly known as know as ABC National Merchant Service, Inc. and is now changing its name. It is located in City, State. The Company sells to a wide range of merchant accounts. It offers customized programs for the following industries:
Ø Retail
Ø Restaurant
Ø Wireless
Ø Purchase Card
Ø Mail/Phone
Ø QSR
Ø Internet
Ø Level I, II, III
High Level of Expertise
ABC Card Service offers all the electronic payment solutions a merchant could ever need. The Company delivers what other companies can only promise. ABC Card Service’s goal is to provide merchants’ customers with superior card programs so they can increase their transaction volume and profitability.
The team at ABC Card Service has more than 100 combined years of processing expertise. They truly understand merchants’ needs and they have the in-depth knowledge necessary to design the processing solution that's right for merchant customers. ABC Card Service serves a multitude of businesses throughout the entire United States. The Company supports its customers by helping them process and understand the intelligence behind every transaction. It works with its merchant customers to develop better solutions for their customers, making their businesses secure and efficient.
Excellent Market Opportunity
ABC Card Service will take advantage of several factors to drive its growth. The credit card processing business is growing consistently, fueled by many factors including online business transactions. Online business is booming. Many believed that the rise of e-commerce would mean the demise of brick-and-mortar stores. Instead, credit card merchant accounts are being opened up in record numbers for big and small businesses and multi-channel shopping is booming. With all this growth and multi-channel shopping, merchants need merchant account credit card processing solutions that are quick and reliable.
In today’s world, people use credit cards to buy both ordinary and luxury items. The popularity of credit cards has led to the growth of different credit card processing companies. These companies provide different programs that help in the growth of the merchant’s business.
Business owners have started to use merchant accounts because a merchant account facilitates monetary transaction through credit card processing. By using a credit card the buyers do not need to carry cash. Credit cards also allow people to shop for anything that they require without having to pay on the spot and only pay for them later. This has ensured the growing popularity of credit cards among the consumers.
Most business owners have started using credit card machines because this gives them a professional edge. Customers believe that companies that offer the provision for credit card processing are more reliable and secure.
Profitable Growth
ABC Card Service expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars, the number and kinds of distribution channels and the competitive landscape.
Projections call for the Company to generate revenues of $1.34 million in its next twelve months. ABC Card Service will achieve strong growth over the next several years, reaching $3.7 million in revenues and more than $811,000 of net income by the fifth year.
The Opportunity
Credit Card History
Charge cards were first introduced by Western Union in 1914 to customers considered to be “credit worthy”, thus the ‘birth of the credit card’. At the turn of the 20th century, extending credit to clients was viewed ‘risky’; today it is part of a flourishing industry that has grown to more than $2 trillion. Furthermore, most people understand in today’s global economy credit has become a convenient tool of choice.
Over the last decade there has been an explosion of electronic commerce (e-commerce), which has created a huge demand in Internet online transactions. Credit card processing, both at brick-and-mortar stores and online, is considered a must-have for global, regional, and/or local businesses. 1
Credit Card Processing Market
Credit card processing expedites purchases conveniently and quickly, especially in societies where ‘cashless’ is the norm. According to research, because credit card processing is offered, merchant service can:
Ø Enhance productivity
Ø Boost customer satisfaction
Ø Increase revenues
It can be expensive for merchants to accept a variety of credit cards. Expenses associated with use of credit cards include:
Ø Transaction fees
Ø Monthly minimum charges
Ø Discount rates
Ø Termination cost
One approach to reducing merchant credit card processing costs is by adopting a two-prong perspective toward reducing fees and improving customer satisfaction. There are numerous service providers who vie for merchant business, but shopping around makes good sense. Most credit card companies, banks, and