Are you about starting a credit card processing company? If YES, here is a complete sample credit card processing business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a credit card processing business. We also took it further by analyzing and drafting a sample credit card processing business marketing plan template backed up by actionable guerrilla marketing ideas for credit card processing businesses. So let’s proceed to the business planning section.

Why Start a Credit Card Processing Business?

As an aspiring entrepreneur with vast experience in the financial industry, one of the business opportunities that you can leverage on is to start a credit card processing business. Although you would need ample hands-on experience with good track record to be able to attract well – paying clients, but that does not stop you from still making headway in this line of business.

Starting a credit card processing business can be demanding and risky at the same time, but if you have done your due diligence before venturing into the business, you are likely not going to run at a loss. First and foremost, you are expected to have experience in the financial industry. It will pay you to study accountancy or a related course if you want to venture into this line of business.

If you are interested in starting a credit card processing company, then you should be ready to conduct thorough feasibility studies and market survey before committing your resources to it.

Below is a sample credit card processing company business plan template that can help you successfully write your own with little or no stress.

A Sample Credit Card Processing Business Plan Template

  • Industry Overview

The financial services industry is indeed a very broad industry and one of the active lines of business that an aspiring entrepreneur can start in the industry is credit card processing.

Credit card processing business falls under the Credit Card Processing & Money Transferring industry and players in this industry offer financial transaction processing, reserve and liquidity services and check or other financial instrument clearinghouse services. The industry excludes electronic transactions associated with the US Federal Reserve (central bank).

Research conducted by IBISWORLD shows that the Credit Card Processing and Money Transferring industry is expected to experience strong revenue growth as processors continue to reap the benefits of large-scale implementation of electronic payment technology and growing e-commerce over the five years to 2018.

The ratio of electronic payments to cash and check payments has increased over the five years to 2018, driving up transaction volume for processors in the industry. Increased consumer spending has boosted transaction volumes in recent years, effectively stimulating growth. However, the industry has also grappled with more stringent regulation put in place to bolster security for consumers so that information is stored and transmitted securely.

Statistics has it that in the united states of America alone, there are about 5,061 registered and licensed credit card processing firms responsible for employing about 157,589 and the industry rakes in a whooping sum of $79 billion annually. The industry is projected to enjoy 3.4 percent annual growth within 2013 and 2018. American Express Company, FIS, KKR, Mastercard and PayPal are the organizations with lion shares of the available market in this industry.

Please note that there are higher barriers to entry into the Credit Card Processing and Money Transferring industry because it is highly regulated. Participants in the industry must be in accordance with all federal and state laws associated with money transferring.

Additionally, operators in this environment must invest heavily in infrastructure upon setting up their operations, followed by continuous infrastructure investment in subsequent years. This includes but is not limited to expenditure on buildings, transportation, mechanical and electronic collection and processing equipment.

One thing is certain about starting a credit card processing business, if you are able to conduct your market research and feasibility studies, you are more likely not going to struggle to secure clients because there are always individuals, households, startups and even corporate organization who would want to hire your services.

Lastly, with credit card processing business, you can afford to partner with other smaller firms that are into financial related services. You can partner with credit card processing services business, accounting and bookkeeping consulting firm, auditing firms, tax preparation firms and human resources consulting firms. The bottom line is that if you have a robust network and you are well positioned, you can indeed maximize your credit card processing business.

Credit Card Processing Business Plan – Executive Summary

Delta Network® Credit Card Processing, LLC is a registered and licensed credit card processing company. The business will be based in San Diego – California and we were able to secure a standard office facility.

Delta Network® Credit Card Processing, LLC is a client – focused and result driven credit card processing firm that provides broad – based services such as financial transaction processing, reserve and liquidity services and check or other financial instrument clearinghouse services at an affordable fee. We will offer professional credit card processing services to all to our clients at local, state, national, and international level.

At Delta Network® Credit Card Processing, LLC, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics.

Delta Network® Credit Card Processing, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Our plan is to position the business to become the leading brand in credit card processing in the whole of San Diego – California, and also to be amongst the top 10 credit card processing businesses in the United States of America within the first 10 years of operation.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are confident that San Diego – California is the right place to launch our business before sourcing for clients from other cities.

Delta Network® Credit Card Processing, LLC is founded by Jason Morgan and Emmanuel Anderson. The organization will be managed by both of them since they have adequate working experience to manage such business.

Jason Morgan has over 5 years’ experience working at various capacities within the financial cum Credit Card Processing and Money Transferring industry in the United States of America. Mr. Jason Morgan graduated from both University of California – Berkley with a Degree in Accounting, and University of Harvard (MSc.) and he is a chartered accountant with background on credit card processing and money transferring services.

  • Our Product and Services Offering

Delta Network® Credit Card Processing, LLC is going to offer varieties of services within the scope of the Credit Card Processing and Money Transferring industry. Our intention of starting our firm is to work with individuals and organizations who would want to hire our services.

We are prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offerings are listed below;

  • Credit card processing services
  • Prepaid card services
  • Automated bank or check clearinghouses (except central bank)
  • Check clearing and validation services (except central bank)
  • Electronic funds-transfer services
  • Electronic financial payment services
  • Reserve and liquidity services (except central bank)
  • Financial transactions processing (except central bank)
  • Bank clearinghouse associations

Our Vision Statement

Our vision is to build a credit card processing brand that will become the number one choice for individuals, smaller businesses and corporate clients in the whole of San Diego – California. Our vision reflects our values: integrity, service, excellence and teamwork.

  • Our Mission Statement

Our mission is to provide professional, reliable, trusted and result oriented credit card processing services that assist individuals and organizations in handling their credit card processing services. We will position the business to become one of the leading brands in the credit card processing line of business in the whole of San Diego – California.

  • Our Business Structure

As part of our plan to build a standard credit card processing firm in San Diego – California, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.

The picture of the kind of credit card processing business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around San Diego – California as long as they are willing and ready to work with us to achieve our business goals and objectives.

Below is the business structure that we will build Delta Network® Credit Card Processing, LLC;

  • Chief Executive Officer
  • Credit Card Processing Consultants
  • Admin and HR Manager
  • Marketing and Sales Executive
  • Accountant
  • Customer Care Executive / Front Desk Officer

Roles and Responsibilities

Chief Executive Office:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, appraising job results and developing incentives
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Credit Card Processing Consultants

  • Responsible for handling credit card processing services, prepaid card services, automated bank or check clearinghouses (except central bank) and check clearing and validation services (except central bank)
  • In charge of taking care of electronic funds-transfer services, electronic financial payment services and reserve and liquidity services (except central bank)
  • Responsible for handling financial transactions processing (except central bank) and bank clearinghouse associations.

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Marketing and Sales Executive

  • Identify, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Writes winning proposal documents, negotiate fees and rates in line with company policy
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Accountant

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executive/Front Desk Officer

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels / documents for the company
  • Distribute mails in the organization
  • Handles any other duties as assigned by the line manager

Credit Card Processing Business Plan – SWOT Analysis

Delta Network® Credit Card Processing, LLC engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured credit card processing firm that can favorably compete in the Credit Card Processing and Money Transferring industry.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Delta Network® Credit Card Processing, LLC;

  • Strength:

The power of our team; or workforce is of course top of the list when it comes to our strength as a business. We have a team that is trained and equipped to pay attention to details and to deliver excellent jobs. Aside from the synergy that exists in our carefully selected workforce, we have a very strong online presence, we are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

  • Weakness:

As a new credit card processing firm, it might take some time for our organization to break into the market and gain acceptance especially in the already saturated Credit Card Processing and Money Transferring industry; that is perhaps our major weakness. So also we may not have the required cash to give our business the kind of publicity we would have loved to.

  • Opportunities:

The opportunities in the Credit Card Processing and Money Transferring industry is massive considering the number of businesses that can’t afford to do without the services of credit card processing businesses. As a standard credit card processing company, we are ready to take advantage of any opportunity that comes our way.

  • Threat:

Some of the threats that we are likely going to face as a credit card processing firm operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing/spending power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

Credit Card Processing Business Plan – MARKET ANALYSIS

  • Market Trends

A recent trend in the Credit Card Processing industry shows that increased consumer spending has boosted transaction volumes in recent years, electronic payments are expected to continue boosting industry revenue during the period and security issues and data breaches are expected to continue challenging the growth of the industry. Please note that external factors such as consumer spending and consumer confidence index will impact performance the industry.

The credit card processing industry landscape begun to change with consumer preferences increasingly trending toward establishments that offer online credit card processing options.

Despite the fact that the recent improving economic conditions are expected to support the growth of the industry, some credit card processing firms’ performance will be stunted, as online credit card processing consulting service providers pose a big threat to brick-and-mortar credit card processing consulting firms. Going forward, increasing product penetration and of course an expanding customer base is expected to drive growth in the industry.

  • Our Target Market

The demographic and psychographic composition of those who need the services of credit card processing providers cuts across both small businesses and large corporations and individual clients as well.

As a standard and licensed credit card processing service firm, Delta Network® Credit Card Processing, LLC offers a wide range of credit card processing services hence we are well trained and equipped to services a wide range of clientele base.

Below is a list of the businesses that we have specifically designed our products and services for;

  • Households and individual clients
  • NGOs
  • Blue Chips Companies
  • Corporate Organizations
  • Religious Organizations (Pilgrimage journeys et al)
  • Political Parties / Politicians
  • Hotels and Restaurants
  • The Government (Public Sector)
  • Schools (High Schools, Colleges and Universities)
  • Sport Organizations
  • Entrepreneurs and Startups

Our competitive advantage

The level of competition in the credit card processing and money transferring industry depends largely on the location of the business and of course the niche of your services. If you can successfully create a unique brand identity for your firm or carve out a unique market, you are likely going to experience less competition.

We can boast of having unlimited access to the latest available and most efficient technology and techniques, low operating costs and use of specialist equipment or facilities.

Delta Network® Credit Card Processing, LLC might be a new entrant into the industry in the United States of America, but the management staff and owners of the business are considered gurus. They are licensed and highly qualified credit card processing experts in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

Credit Card Processing Business Plan – SALES AND MARKETING STRATEGY

We are mindful of the fact that there are stiff competitions amongst credit card processing service providers in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard credit card processing service business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our credit card processing consulting firm to become one of the top 10 credit card processing firms in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the San Diego – California, but also in other cities in the United States of America.

Delta Network® Credit Card Processing, LLC is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our business by sending introductory letters alongside our brochure to corporate organizations, schools, households and key stake holders in San Diego and other cities in the United States of America.
  • Advertise our business in relevant financial and business related magazines, newspapers, TV and radio stations.
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local finance and business expos, seminars, and business fairs et al
  • Create different packages for different category of clients (startups and established organizations) in order to work with their budgets and still deliver quality services to them
  • Leverage on the internet to promote our business
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients
  • Join local chambers of commerce and industries with the aim of marketing our services.

Sources of Income

Delta Network® Credit Card Processing, LLC is established with the aim of maximizing profits in the Credit Card Processing and Money Transferring industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis.

Delta Network® Credit Card Processing, LLC will generate income by offering the following financial consulting services;

  • Credit card processing services
  • Prepaid card services
  • Automated bank or check clearinghouses (except central bank)
  • Check clearing and validation services (except central bank)
  • Electronic funds-transfer services
  • Electronic financial payment services
  • Reserve and liquidity services (except central bank)
  • Financial transactions processing (except central bank)
  • Bank clearinghouse associations

Sales Forecast

One thing is certain, there would always be individuals and organizations that would need the services of professional credit card processing service providers.

We are well positioned to take on the available market in San Diego – California and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation.

We have been able to examine the credit card processing and money transferring services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Delta Network® Credit Card Processing, LLC, it is based on the location of our business and the wide range of credit card processing and money transferring services that we will be offering;

  • First Fiscal Year: $350,000
  • Second Fiscal Year: $550,000
  • Third Fiscal Year: $950,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Our Pricing Strategy

At Delta Network® Credit Card Processing, LLC we will keep our service charges a little bit below the average market rate. In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises. 

  • Payment Options

The payment policy adopted by Delta Network® Credit Card Processing, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Delta Network® Credit Card Processing, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part.

Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the credit card processing cum financial consulting services industry by storm which is why we have made provisions for effective publicity and advertisement of our credit card processing firm.

Below are the platforms we intend to leverage on to promote and advertise Delta Network® Credit Card Processing, LLC;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based events
  • Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
  • Install our billboards in strategic locations all around San Diego – California
  • Engage in roadshow from time to time
  • Distribute our fliers and handbills in target areas
  • Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

Credit Card Processing Business Plan – Financial Projections and Costing

On the average, starting a credit card processing firm can be cost effective because on the average, you are not expected to acquire expensive machines and equipment. Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to equip the office, pay bills, promote the business and obtain the appropriate business license and certifications.

These are the area we are looking towards spending our startup capital on;

  • The total fee for incorporating the Business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
  • The amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
  • Marketing promotion expenses for the grand opening of Delta Network® Credit Card Processing, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The total cost for hiring Business Consultant – $2,500
  • The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
  • The cost of launching our official Website – $600
  • The budget for paying at least two employees for 3 months and utility bills – $30,000
  • Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Miscellaneous – $1,000

Going by the report from the research and feasibility studies, we will need about One Hundred and Fifty Thousand US Dollars ($150,000) to set up a small scale but standard credit card processing firm in the United States of America.

Generating Startup Capital for Delta Network® Credit Card Processing, LLC

Delta Network® Credit Card Processing, LLC is a business that will be owned and managed by Jason Morgan and his business partner Emmanuel Anderson. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

CREDIT CARD PROCESSING BUSINESS GROWTH: Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Delta Network® Credit Card Processing, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our credit card processing and money transferring services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Delta Network® Credit Card Processing, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Leasing a standard and well positioned office facility in the heart of San Diego – California: Completed
  • Generating part of the startup capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in the industry: In Progress