Berman Holdings to acquire card payment processor Merchant Processing
22 January 2008 | 1848 views | 0
Source: Berman Holdings
Berman Holdings, Inc. (Pink Sheets:BRMN) today announced it has entered a letter of intent to acquire 100% of Merchant Processing International, Inc.
Merchant Processing International Inc. processes approximately $5,000,000 a month in credit card processing transactions for its merchants.
Merchant Processing International, Inc. has approximately 100 agents located across the United States that offer complete merchant account services. Through Merchant Processing International, Inc. merchants can begin processing credit cards. Merchant Processing International, Inc. establishes merchants through either the merchant's point of sale terminals, wireless terminals and or the Internet. Merchant Processing International, Inc. currently processes over $5,000,000 a month in credit card transactions.
Merchant Processing International, Inc. has recently entered the prepaid debit card industry. According to market data available there are between 40 and 80 million people in the United States who don't have a bank account or who can't qualify for a credit card because their credit scores are too low. This is called the under banked market. The emerging pre paid debit card solutions now available can act as a virtual bank account, card account and payment solution for those people who do not use banks or credit cards. For the under banked the evolution taking place with pre paid debit cards can replace their reliance on check cashing centers, money orders, and the inability to buy certain products that require a major credit card.
This industry is estimated at $100 Billion and growing at 30% a year. Merchant Processing International, whose registered mark is "A Card For Everyone," states that it will guarantee the approval of a prepaid debit card for anyone who has a valid ID, regardless of credit, employment or banking history.
The company's decision to acquire Merchant Processing International, Inc. from Berman Holdings, Inc. founder Bruce Berman comes on the heels of Berman Holdings, Inc. acquiring Berman Marketing Group, Inc. also from Bruce Berman. Berman Marketing Group, Inc. is a multi channel direct market firm specializing in direct response marketing through Television, Radio, Internet and Print media.
Bruce Berman, President of Berman Holdings, Inc., stated, "This proposed acquisition of Merchant Processing International, Inc. is a logical next step for our company. Berman Marketing Group already has a contractual relationship with Merchant Processing International, Inc. and we have begun to work together."
Specific terms of the Letter Of Intent were not disclosed; however, Berman Holdings Inc. will not conclude the acquisition without approval by 51% or more of disinterested shareholders.