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CompanyProfile

ISO/MLS contact:
Ryan Hallett
Chief Revenue Officer
844-729-7624, Ext. 701
ryan.hallett@payroc.com
www.payroc.com

From ISO to full-fledged acquirer

ayroc LLC, which began as a traditional ISO, The market for the latter is becoming increasingly
is transforming to function as a full-service important because ISVs are discovering they need help
acquirer, according to Payroc Chief Executive with payments since they don't know how to underwrite
P Officer James Oberman. To achieve that goal, risk, move funds, make settlements or handle billing,
the company has acquired its own gateway, developed Oberman noted. "So Payroc is presenting itself to that
proprietary mobile payment capability, mastered the community as a partner," he said.
intricacies of integrated-payment technology and estab-
lished itself as a payment facilitator, or payfac, he said. Standards for sales
Payroc doesn't refer to its independent salespeople as
"We view the payfac business model as similar to a full- agents or merchant level salespeople, Oberman noted.
service acquiring model," Oberman noted. Payment Instead, the company calls them payment professionals
facilitators aggregate sub-merchants under one or just a and requires that they earn the Certified Payments
few merchant identification numbers and assume the risk Professional certification offered by the Electronic
for client malfeasance. Sub-merchants have a relationship Transactions Association. The company urges salespeople
with the payfac only, as opposed to relationships with the to reinvent themselves as consultants with proficiency in
ISO, processor, bank and gateway. Payment facilitation interchange and technical matters.
is becoming more widespread because it promotes
integrating payments with other business functions, such It's a new approach for a well-established firm. Payroc
as scheduling and inventory control. traces its roots to two companies: The iTransact Group LLC,
which began more than 20 years ago as a gateway, later
The payfac model is working well for Payroc partly added ISO functions and still operates from headquarters
because key executives at the company are experienced in Farmington, Utah. And Retriever of Chicago, which
at managing risk, Oberman said. He served as Chief Risk was formed about 14 years ago in Tinley Park, Ill., as one
Officer for Vantiv Inc. and helped that company start its of the Retriever Merchant Solutions brands by Oberman's
payfac program. Before that, he handled risk for National sons, Nicholas and Adam, and his nephew Ryan Hallett.
Processing Co. Payroc's Chief Operating Officer oversaw
risk underwriting for NPC for more than a decade. Two years ago, Oberman joined his relatives at Retriever
The General Manager of Payroc's payfac division ran of Chicago, and a year ago they acquired iTransact, which
transaction risk monitoring for both Vantiv and NPC. still uses that brand name. Retriever of Chicago's name
Relationships with ISVs was changed to Payroc, which incorporates its original
initials and suggests the Rock of Gibraltar.
Payroc recently introduced a new application
programming interface designed to link easily with the Accounting firms and other sources refer clients to Payroc
systems of independent software vendors (ISVs) that for payment services, and it now processes more than
have developed broad-based services for specialized $4 billion in transactions annually for 10,000 merchants
customers, such as property managers or churches. and 6,000 sub-merchants, Oberman said. It has 12 inside
"We're able to go to ISVs and say, 'Look, let us worry about salespeople and 50 active outside salespeople, while six
payments for you," Oberman said. developers write code for the company's system.

That type of technology provides a path to the future, Payroc's website lists the company's five core values:
but it's meaningless without the backing of a great sales pricing clarity, exceptional service, trusted advice,
organization to promote it, Oberman emphasized. "We personal relationships and integrity. Oberman described
want to give businesses the best of both worlds," he Payroc as being based on family and faith. "That's who
said. That means continuing to operate as a traditional we are and what we believe," he said. "It transcends
sales-oriented ISO that nurtures relationships while also everything."
embracing the new technology that's making payments a
feature instead of a product, he added.

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