Some payments companies have been mentioning increases in chargebacks since October 1st. This appears to be true, according to The Strawhecker Group's merchant level database of more than 3.5 million card accepting merchants. The charts illustrate that there were increases in chargeback rates in the SMB market for both transactions and dollar volume throughout much of 2015 with the greatest acceleration occurring in Q4 2015.
Chargeback Uptick in the SMB Market
TSG Mini Report: Average Life of Merchants Processed by 3rd Party Processors
Q: How long do merchants live that are processed on 3rd party processing platforms? And of these, which merchant types live the longest?
A: TSG completed an analysis utilizing its merchant database of 3.3 million merchants to answer this question. Check it out here.
Assumptions & Definitions:
- The analyzed dataset included
- Merchants sold by ISOs that utilize 3rd party processors (as opposed to having “in-house” platforms)
- Merchants that had between $500 - $500,000 annual volume (the ISO “sweet spot”)
- Time period: 2012 – 2015
- Average life = First month of revenue ISO to last month of revenue to ISO
Now Available - Payments Industry Brief: Size Indicators of the Electronic Payments Industry
This report offers a high-level look at the revenues and volumes of the major sub-markets within the electronic payments industry.The report includes sections on the Payments Industry size by revenue, volume, and concentration.
TSG completed these estimates by using a variety of sources and methods including revenue metrics from TSG's AIM data warehouse, TSG industry records and research, annual reports, data aggregation sources, and TSG Associate knowledge and analysis.
Now Available - The State of Global Investments and Funding in FinTech and Payment Startups
The FinTech and Payments sector is currently seeing a boom in investment along with strong M&A activity. To help understand this ever-evolving space, TSG has put together a 102-page study, which provides an in-depth look at the payments financing landscape as well as the investors and companies fueling the payments startup ecosystem.
The eReport also identifies the top 157 funded private payments companies and maps them back to 12 payments categories where they operate.
Now Available - TSG's Directory of U.S. Merchant Acquirers
TSG's directory provides profiles on 250 ISO/Acquirers that include the country's top tier acquirers, along with supplemental ISOs and technology-centered acquirer's.
Company profiles provide factual insights that include (as available) processor relationships, merchant vertical specializations, dollar volume statistics, transaction counts, active merchant outlet counts, key management names and titles, corporate structures, sponsor banks, partnerships and more.
TSG Payments Index: Performance of Public Payments Companies
TSG has released a new data to illustrate the performance of public payments companies. The 'TSG Payments Index' (TSGPX) is calculated on a value weighted basis using market capitalization and is compared to the S&P 500 which is also calculated using the same methodology. A $100 investment in the TSGPX in Q1 2011 would now be valued at $294, as compared to $154 if invested in the S&P 500.
TSG TED - Payments Metrics with Mike Strawhecker
This month, Mike Strawhecker, Principal of TSG, has put together a video discussing Big Data using TSG's data warehouse of over 3.3M card-accepting merchants.
The video covers:
• Total Gross Processing Revenue by Merchant Account Size
• Volume Attrition & Growth
• Annual Net Revenue per Merchant by Volume Net Attrition
• Net Revenue & Attrition by Tier and Merchant Group
2015 Payments Industry Predictions Review
No one can predict the future, but those with the right knowledge and experience can make some great educated guesses. It's the time of year when payment industry experts turn to predicting what will happen next. However, often, the majority of us forget last year's predictions as we focus on the upcoming year.
With that said, The Strawhecker Group (TSG) took a look back at 2015 to review the accuracy of nearly 20 different sets of payments predictions.
TSG Analysis of Global - Heartland Acquisition
This week, Global Payments' announced their acquisition of Heartland Payment Systems for $4.3B. The Strawhecker Group (TSG) has since put together an analysis of the acquisition from the US merchant acquiring perspective. Additionally, a comparison to 22 other transactions that have occurred in the Payments Industry over the last 5 years is illustrated.
TSG TED - The Evolved Acquirer
Starting this month, TSG is producing brief videos that may cover leading industry topics, educational pieces on various aspects of the industry, and much more.
Kurt Strawhecker, Managing Partner of TSG is kicking-off this initiative with a discussion on The Evolved Acquirer, which reviews how different a successful acquirer looks today than the average ISO from five years ago.