CLARUS Merchant Services
CLARUS Merchant Services is a privately held ISO/MSP payment processor founded in 1999 that delivers credit card processing, POS, and proprietary products (RevNew surcharge, automated Level 3) to 5,000+ merchants, primarily in B2B distribution, buying groups, healthcare, and factoring verticals.
- Company typePrivate
- Founded1999
- HeadquartersGaithersburg, United States
- Headcount101–250
- GTM typeB2B
- OfferingServices
What CLARUS Merchant Services does
CLARUS Merchant Services is a privately held payment services provider founded in 1999 and headquartered in Gaithersburg, MD, operating as a registered ISO/MSP of Elavon, Fifth Third Bank, Wells Fargo Bank, and NPC/Vantiv. The company delivers credit card processing, POS terminal solutions, payment gateway services, and a suite of proprietary products — including automated Level 3 B2B processing (yielding up to 1.00% lower interchange), the RevNew Zero Cost/Surcharge compliance program (shifting fees to cardholders), the RevNew IFA Program for the factoring vertical, and the MerchReport.com analytics tool — to roughly 5,000–6,000+ merchants processing a reported $5B–$8B annually.
CLARUS serves a diverse vertical mix with particular depth in B2B distribution (plumbing, HVAC, electrical, roofing, building materials), buying groups and trade associations, healthcare, hospitality, retail, and factoring. Its go-to-market is sales-led and channel-driven: the company is the preferred MSP/ISO for a broad roster of buying groups and trade associations (IMARK Group, Omni, Embassy Group, WIT, ASA, NEMEON, Sphere 1, AAIA, among others), partners with community banks (Capital Bank, SmartBank, John Marshall Bank), and actively recruits and acquires ISO/agent portfolios at multiples up to 36x monthly residual.
Revenue is generated primarily through interchange-plus transaction markups (1.75%–3.5% per transaction), residual income on acquired merchant portfolios, and revenue-share payments to referral partners. The company claims one of the highest client retention rates in the merchant services industry and has expanded geographically from its Maryland base to offices across the U.S. (Norfolk, Myrtle Beach, Chicago, Charlotte, Charleston, Pigeon Forge) and into London, England. CLARUS is led by founder and CEO Randy Tillim, with President Eric Pottebaum, COO Samuel Rogers, CIO Jonathan Turner, and EVP of Business Development Michael Jaffe. The company is recognized on the 2015 Inc. 5000 list and holds BBB accreditation.
CLARUS Merchant Services firmographics
Firmographics- Name
- CLARUS Merchant Services
- Legal name
- CLARUS Merchant Services
- Website
- https://clarusdc.com
- Company type
- Private
- Founded year
- 1999
- Operating status
- Operating
- Headcount range
- 101–250 employees
- Short description
- CLARUS Merchant Services is a privately held ISO/MSP payment processor founded in 1999 that delivers credit card processing, POS, and proprietary products (RevNew surcharge, automated Level 3) to 5,000+ merchants, primarily in B2B distribution, buying groups, healthcare, and factoring verticals.
- Ownership category
- akta.pro rank
CLARUS Merchant Services industry classification
Industry- Product category
- Payment Processing Services
- NAICS
- Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320)
- SIC
- Security & Commodity Brokers, Dealers, Exchanges & Services (6200)
- akta.pro primary industry
- Merchant Acquiring Banks & ISO/MSP Acquirers (FSAMABAB)
- akta.pro secondary industries
- Merchant-of-Record (MoR) & Payment Facilitation (PayFac) Infrastructure (FSAGABAE), Merchant Acquiring & Processing Platforms (BPAMAFAB)
Keywords
Where CLARUS Merchant Services is headquartered
LocationHeadquarters
- HQ city
- Gaithersburg
- HQ country
- United States
- HQ region
- North America
Offices8 records
Markets served
CLARUS Merchant Services business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Technology or R&D, Others
Revenue model
- Payment Processing Transaction Fees: CLARUS earns revenue by charging merchants a markup over the interchange rates set by card networks (Visa, MasterCard, Discover, American Express). Transaction fees typically range from 1.75% to 3.5% per transaction. The company uses interchange-plus pricing structures and offers zero-cost/surcharge programs as alternatives.
- Merchant Portfolio Acquisition and Residuals: CLARUS acquires credit card merchant portfolios (and residual streams) from ISOs, agents, and processors. The acquisition formula is based on a multiple of average monthly residual income (up to 36x monthly residual offered in promotions). Revenue is generated from residual income on acquired portfolios. Sellers can also sell partial portfolios or continue servicing merchants post-acquisition.
- Referral Partner Revenue Share: CLARUS pays referral partners (buying groups, associations, financial institutions) for merchant referrals. Partners receive a revenue share or referral fee based on the processing volume generated by referred merchants.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Monthly | Standard Credit Card Processing - Interchange Plus Pricing |
| Other | Monthly | RevNew Zero Cost / Surcharge Program |
| Other | Multi-year contract | Merchant Portfolio Purchase - Up to 36x Monthly Residual |
Go-to-market motion3 records
Distribution channels6 records
Marketing channels6 records
CLARUS Merchant Services product offering
Product offeringCore offering
CLARUS Merchant Services is a registered ISO/MSP payment services provider that delivers credit card processing, POS terminals (plug-n-play, fixed, mobile), web and ERP-integrated payment gateway services, and proprietary specialized programs including RevNew (zero-cost surcharge processing), automated Level 3 B2B/B2G processing, and the RevNew IFA Program for factoring companies. It serves B2B distribution, wholesale, buying groups, associations, credit unions, and a broad merchant base across multiple verticals, earning revenue from interchange-plus transaction markups and portfolio residual acquisitions.
Product overview
CLARUS Merchant Services is a payment services provider offering a comprehensive suite of payment processing products and services. The core offerings include credit card processing with multiple POS terminal options (fixed, mobile, plug-n-play), web-based payment gateway with tokenization, and the proprietary RevNew Zero Cost Credit Card Program. The Level 3 Credit Card Processing service addresses B2B/B2G transactions with automated data collection for lower interchange rates. Supporting modules include the RevNew IFA Program for factoring industry clients, MerchReport.com for analytics and reporting, Member Trends for association member tracking, and merchant portfolio valuation/acquisition services. The company also provides FANF fee management tools. The platform supports multiple payment types including card-present, card-not-present, mobile wallets, and integrates with major card brands (Visa, Mastercard, Discover, American Express).
Differentiator
Problem solved
Functional benefit
Brands
- RevNew: Zero Cost Credit Card Program - A Visa, MasterCard, and American Express program that shifts the processing fee cost from the merchant's responsibility to the cardholder via a surcharge placed on each sale, allowing businesses to keep 100% of every credit card sale.
- Level 3 Processing
Products and services
- RevNew Zero Cost Credit Card Program A Visa, MasterCard, and American Express compliant surcharge program that shifts credit card processing fees from the merchant to the cardholder, allowing merchants to accept credit cards at 0% effective cost while keeping 100% of each sale. Includes automated debit vs. credit detection, compliant itemized receipts, and card brand signage.
- Level 3 Credit Card Processing Specialized B2B/B2G credit card processing that collects additional line-item data to qualify for significantly lower interchange rates (up to 1.00% lower than standard counterparts) on corporate purchasing cards and government cards. CLARUS has automated this data capture, eliminating the manual entry of up to 15 data fields per transaction.
- RevNew IFA Program Payment processing program designed specifically for the factoring industry in partnership with the International Factoring Association, featuring hosted web page and email invoice billing, PCI-compliant payment gateway with tokenization, and reporting tools that allow factoring companies to accurately pass processing fees along to clients.
- Payment Gateway Services Payment gateway for quick, easy payment processing including tokenization and PCI-compliant storage of customer data. Supports card-present, card-not-present, mobile wallet, and ERP-integrated payment workflows.
- POS Terminal Solutions Deep portfolio of competitively priced POS terminals including plug-n-play terminals and fixed/mobile POS systems for various business types, supporting card-present retail, restaurant, and mobile vendor environments.
- Merchant Portfolio Valuation and Acquisition Services Comprehensive services for buying and selling merchant portfolios, including valuation analysis, due diligence support, and residual buyout programs with multipliers up to 36x monthly residual. Acquired merchants are not converted to a new processor, eliminating switching friction for sellers.
- Member Trends Software Subscription-based member tracking and predictive analytics software providing actionable membership metrics including revenue, retention, member renewals, recruitment tracking, and donor/member giving pattern analysis for associations and cooperatives.
Quantifiable outcome
- Automated Level 3 processing reduces interchange by up to 1.00% vs. standard counterpart transactions
- +6 more outcomes
Companies that use CLARUS Merchant Services
Customer profileNamed customers2 records
Segments7 records
Ideal customer profiles4 records
CLARUS Merchant Services technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature4 records
CLARUS Merchant Services partnerships and signals
Strategic signalPartnerships
28 partnerships are on record, tiered strategic, strategic acquisition, core, preferred vendor, major and partner.
- Quality POS (Cobra POS)strategicQuality POS, based in Cape Coral, FL, provides the Cobra POS system serving the pool hall and restaurant vertical markets with pool table time management, tableside food/drink ordering, retail sales, inventory, and gift/loyalty programs. The partnership combines Clarus's payment processing platforms with Quality POS's established distribution network to serve pool hall and restaurant merchants.
- CardMachineOutlet.comstrategicCardMachineOutlet.com is a leading provider of payment equipment and solutions headquartered in Richardson, Texas, serving customers since 2013. The partnership combines Clarus's agent sales programs and ISO/agent portfolio acquisitions with CardMachineOutlet.com's hardware distribution model. The companies plan to expand focus on ISO and agent support through a scalable, customer-centric sales model.
- North American Merchant Services (NAMS)strategic acquisitionCLARUS acquired North American Merchant Services (NAMS) out of Asheville, NC. NAMS had served over 2,000 customers across the Southeast with sales offices in Pigeon Forge, TN; Charleston, SC; and Charlotte, NC. The acquisition broadened CLARUS's presence in the merchant services industry and consolidated its position as a benchmark payment provider within the B2B arena.
- BC Technologiesstrategic acquisitionCLARUS acquired BC Technologies, a provider of top-end electronic payment technologies and solutions out of Philadelphia, PA. The acquisition extended CLARUS's provision of future-proof payment products and provided access to specialized software, intelligent solutions, and a salesforce and management team.
- Elavon / U.S. BancorpcoreCLARUS is an Elavon Payments Partner and registered MSP/ISO of Elavon Inc. Elavon is the 4th largest U.S. credit card processor and a top 6 acquirer in Europe. This is CLARUS's primary processing bank relationship, enabling it to process transactions through the Elavon network.
- Fifth Third BankcoreCLARUS Merchant Services is a registered ISO/MSP of Fifth Third Bank, Cincinnati, OH. National Processing Company (NPC), a Vantiv company, is a registered ISO/MSP of Fifth Third Bank. This relationship allows processing through the Fifth Third Bank acquiring network.
- Wells Fargo Bank, N.A.coreCLARUS is a registered Independent Sales Organization of Wells Fargo Bank, N.A., Concord, CA, providing an additional acquiring bank relationship for payment processing.
- International Factoring Association (IFA)preferred vendorCLARUS has been a three-year preferred vendor of the IFA and developed the RevNew IFA payment processing program specifically for the factoring industry. This program helps IFA members expedite collections, streamline the payment process, and minimize credit card processing costs through a hosted web page, email invoice billing, and unique reporting tools.
- IMARK GroupmajorIMARK Group is a member-owned marketing group of over 1,100 independently owned electrical distributors throughout the U.S. CLARUS is a preferred MSP providing payment processing services to IMARK members with wholesale rates for credit card processing and equipment.
- Omni Corporate ServicesmajorOmni is the premier purchasing group in the plumbing and heating industry with 240+ distributor members across the U.S. and 120+ manufacturer partners. CLARUS provides payment processing services to Omni member wholesalers.
- Capital BankpartnerCapital Bank, a community bank subsidiary of Capital Bancorp in Maryland, partnered with CLARUS to offer payment processing services to its small business and individual customers.
- SmartBankpartnerSmartBank (subsidiary of SmartFinancial) is a full-service commercial bank operating across Tennessee, Alabama, and the Florida Panhandle with $2B+ in assets and 29 branches. Partnered with CLARUS for payment processing services.
- John Marshall BankpartnerJohn Marshall Bank is the second largest community bank headquartered in Reston, VA with 8 branches in the Washington DC Metro area. Partnered with CLARUS for payment processing services.
- Embassy Group, LTDmajorEmbassy Group Ltd. is a 100% member-owned purchasing group for independent plumbing, HVAC, and PVF wholesalers with over 500 branch locations in the U.S. CLARUS provides payment processing services to Embassy Group members.
- WIT (Working with Industry Together)majorWIT is a member-owned purchasing group in the plumbing, heating, and cooling industry. CLARUS provides payment processing services to WIT's independent distributor owners.
- NEMEONpartnerNEMEON is a purchasing cooperative for independent roofing and siding distributors (IRSD). CLARUS provides payment processing services to NEMEON members.
- NetPlus AlliancepartnerNetPlus Alliance is a purchasing cooperative for industrial and contractor supplies distributors with 375 members. CLARUS is a partner providing payment processing services.
- UCAA (United Cooperatives Alliance of the Americas)partnerUCAA is a federation of member-owned cooperatives focused on preserving and protecting the cooperative model in wholesale distribution. CLARUS provides payment processing services to UCAA member cooperatives.
- ASA (American Supply Association)partnerASA is a not-for-profit national organization serving wholesale distributors and suppliers in plumbing, heating, cooling, and mechanical pipe industries. CLARUS provides payment processing to ASA members.
- Legacy Foodservice AlliancepartnerLegacy Foodservice Alliance is a distributor group serving independent foodservice distributors across North America, Central America, Bermuda, and the Caribbean. CLARUS provides payment processing services to Legacy members.
- Luxury Products GrouppartnerLuxury Products Group (LPG) serves decorative plumbing and hardware member distributors and showroom professionals. CLARUS provides payment processing to LPG members.
- FortepartnerForte advances the interests of the independent decorative plumbing and hardware channel with 250+ showrooms across the U.S. and Canada. CLARUS is a payment processing partner.
- AAIA (Automotive Aftermarket Industry Association)partnerAAIA represents the motor vehicle aftermarket sector. CLARUS provides payment processing services to AAIA member companies.
- Success Group International (SGI)partnerSGI serves independent contractors in HVAC, Plumbing, Electrician, and Roofer industries. CLARUS provides payment processing services to SGI members.
- VALA (Virginia Assisted Living Association)partnerVALA is a non-profit membership organization for Virginia's assisted living industry. CLARUS provides payment processing services to VALA members.
- EDCE GrouppartnerEDGE Group connects independent distributors and manufacturers in Datacom, CCTV/Security, Low Voltage, Electronic MRO, and OEM industries. CLARUS provides payment processing to EDGE members.
- Sphere 1 / S.I.D.A.partnerSphere 1 (S.I.D.A.) is a group of roofing and exterior building supply distributors. CLARUS provides payment processing services to Sphere 1 members.
- The User Group (TUG)partnerTUG provides networking and solution sharing for a community of distributors with Special Interest Groups. CLARUS provides payment processing services to TUG members.
Scale indicators8 records
Recent moves6 records
Expansion highlights6 records
CLARUS Merchant Services competitors and assessment
Company assessmentBroad incumbents
- Square (Block): Vertically integrated payments incumbent serving SMBs with hardware, software, and processing. Overlaps with CLARUS in retail and hospitality segments but competes primarily through software-led onboarding rather than ISO/agent distribution.
- Stripe: Dominant online payment processor serving internet-first and software-platform merchants. Adjacent rather than direct: overlaps with CLARUS's web/ERP payment gateway but does not serve card-present ISO/distribution verticals.
- Global Payments: Major payment processor and acquirer with broad direct and indirect (ISO) channels across SMB and enterprise. Overlaps with CLARUS through indirect channels and acquiring partnerships, but operates at materially larger scale.
Direct peers
- Helcim: Canadian-headquartered payment processor and ISO operating a transparent interchange-plus pricing model similar to CLARUS, with a strong SMB and B2B focus. Directly comparable in pricing philosophy, target customer profile (SMB and mid-market merchants), and focus on transparent pricing over tiered.
- North American Bancard: Large independent ISO/MSP offering payment processing and an agent/partner program to SMBs across the U.S. Comparable as a competing ISO with a large agent network, residual-based revenue model, and portfolio acquisition activity.
- Payment Depot: ISO/MSP offering interchange-plus pricing and merchant portfolio acquisitions to SMBs, with an agent/partner program. Closely mirrors CLARUS's transparent pricing, ISO sponsorship model, and agent recruitment strategy.
- Fattmerchant (Stax): Subscription-based payment processor and ISO serving SMBs with interchange-plus pricing and modern software integrations. Comparable in pricing model and SMB-to-mid-market focus, with a stronger software/SaaS orientation.
- National Processing (NPC): ISO/MSP of Fifth Third Bank offering payment processing to SMBs across multiple verticals. Directly comparable as an ISO/MSP competitor and is also a CLARUS sponsor-bank partner, putting the two in overlapping channels.
- Gravity Payments: Employee-owned ISO/MSP focused on transparent, flat-rate pricing for SMB merchants. Comparable as an ISO/MSP competitor pursuing transparent pricing and direct merchant acquisition in the same SMB and mid-market segments.
- Dharma Merchant Services: ISO specializing in B2B and B2G credit card processing with a strong emphasis on Level 3 data and interchange optimization. Closely comparable to CLARUS's B2B distribution niche and Level 3 automation capability.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks5 records
Key highlights6 records
Customer concentration
CLARUS Merchant Services social profiles
Digital presenceCLARUS Merchant Services compliance and trust
Trust signalCompliance1 record
CLARUS Merchant Services financial estimates
Financial estimateRevenue estimate
Valuation estimate
CLARUS Merchant Services leadership team
Management profileNumber of profiles
Profiles8 records
CLARUS Merchant Services subsidiaries and ownership
Company hierarchySubsidiaries2 records
CLARUS Merchant Services funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
CLARUS Merchant Services M&A and investment
M&A and investmentM&A2 records
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about CLARUS Merchant Services
What does CLARUS Merchant Services do?
CLARUS Merchant Services is a registered ISO/MSP payment services provider that delivers credit card processing, POS terminals (plug-n-play, fixed, mobile), web and ERP-integrated payment gateway services, and proprietary specialized programs including RevNew (zero-cost surcharge processing), automated Level 3 B2B/B2G processing, and the RevNew IFA Program for factoring companies. It serves B2B distribution, wholesale, buying groups, associations, credit unions, and a broad merchant base across multiple verticals, earning revenue from interchange-plus transaction markups and portfolio residual acquisitions.
Is CLARUS Merchant Services a public or private company?
CLARUS Merchant Services is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was CLARUS Merchant Services founded?
CLARUS Merchant Services was founded in 1999. It employs 101 to 250 people.
Where is CLARUS Merchant Services based?
CLARUS Merchant Services is headquartered in Gaithersburg, United States, in the North America region.
How does CLARUS Merchant Services make money?
Three revenue lines are on record. Payment Processing Transaction Fees are the primary driver. The others are merchant Portfolio Acquisition and Residuals and referral Partner Revenue Share.
Who are CLARUS Merchant Services's main competitors?
Broad incumbents on record are Square (Block), Stripe and Global Payments. Direct peers are Helcim, North American Bancard, Payment Depot, Fattmerchant (Stax), National Processing (NPC), Gravity Payments and Dharma Merchant Services.
Does CLARUS Merchant Services have an API?
No public API is recorded for CLARUS Merchant Services.
What industry is CLARUS Merchant Services in?
CLARUS Merchant Services's product category is Payment Processing Services. Its primary akta.pro industry code is FSAMABAB, Merchant Acquiring Banks & ISO/MSP Acquirers, with a secondary code of FSAGABAE, Merchant-of-Record (MoR) & Payment Facilitation (PayFac) Infrastructure. Its NAICS code is 522320 and its SIC code is 6200.