What MSG Payment Systems does

MSG Payment Systems, founded in 1998 and headquartered in Urbandale, Iowa, is a registered Independent Sales Organization (ISO) of Fifth Third Bank, N.A. that provides integrated payment processing to two distinct buyer groups: independent software vendors (ISVs) seeking to embed payments inside their platforms, and direct merchants across vertical industries including propane, jewelry, printing, healthcare, newspaper and media, ecommerce and retail, and enterprise/B2B. The platform supports credit and debit card processing, ACH and electronic check transactions, mobile payments, virtual terminal, payment terminals, text-to-pay, surcharging and cash-discount programs, merchant capital advances, PCI compliance tooling, 3D Secure authentication, and fraud protection with real-time monitoring. Recent additions include FastFunds on-demand batch settlements via Visa Direct, same-day and next-day funding, a mobile SDK with Tap to Pay on iPhone, and a partner portal for ISV revenue share and split funding.

Underlying technology centers on an integrated payment platform with APIs, tokenization, card-on-file vaulting, cloud-based terminal integration, and a developer portal offering sandbox credentials and pre-built tools. Distribution runs through direct merchant sales, ISV channel partnerships (including a multi-decade relationship with Retail Jewelers Organization and a 2025 integration with WJewel's jewelry retail management platform), and bank sponsorship via Fifth Third Bank. The merchant onboarding flow is fully electronic with auto-approval underwriting that can approve applications within one business day.

MSG earns revenue primarily through transaction processing fees (interchange plus processor markup), ISV residual revenue share, merchant capital repayments taken as a percentage of daily processing deposits, and a share of surcharging and cash-discount program fees. Pricing is quote-based and not publicly disclosed; the company emphasizes transparent pricing with no hidden fees and offers complimentary statement audits. The company is privately held, founder-led (Paul Huntley, Founder and President), and reportedly entirely founder-owned with no disclosed institutional capital.

Name

MSG Payment Systems

Legal name

MSG Payment Systems

Website

https://msgpay.com

Company type

Private

Founded year

1998

Operating status

Operating

Headcount range

1–10 employees

Short description

MSG Payment Systems is a Urbandale, Iowa-based ISO of Fifth Third Bank providing integrated payment processing and embedded payments for ISVs, plus direct merchant services across jewelry, propane, healthcare, printing, media, retail, and B2B verticals since 1998.

Ownership category

akta.pro rank

Product category

Payment Processing

NAICS

Financial Transactions Processing, Reserve, and Clearinghouse Activities (52232)

SIC

Services-Computer Processing & Data Preparation (7374)

akta.pro primary industry

Integrated Payment Processors (PSP/Acquirer) (FSAMABAA)

akta.pro secondary industries

Merchant Acquiring Banks & ISO/MSP Acquirers (FSAMABAB), Integrated POS Payments (ISVs & Vertical POS Platforms) (FSAMADAD)

Keywords

• Payment processing services
• Embedded payment solutions
• Merchant services
• ISV payment integration
• Credit card processing

Headquarters

HQ city

Urbandale

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Transaction Processing Fees: MSG earns revenue from processing credit card, ACH, and electronic check transactions for merchants. Fees include interchange, assessment fees, and processor markups structured through transparent pricing models including surcharge and cash discount programs.
2. ISV Partner Revenue Share / Residuals: Software companies (ISVs) that embed MSG payments earn a revenue share (residuals) on every transaction their merchants process. Partner fees are transparent and detailed in the MSG Partner Portal. The revenue stream is recurring and grows as the ISV's merchant base expands.
3. Merchant Capital / Funding: MSG provides working capital to merchants, with repayments deducted as a small percentage of daily credit card processing deposits. This creates an additional revenue stream from interest/fee arrangements on merchant advances.
4. Surcharging and Cash Discount Programs: Merchants can reduce or offset credit card processing fees by applying service fees to credit card transactions, with MSG retaining a portion of the fees collected. The program is compliant with network rules and regulations.

Pricing tiers

Go-to-market motion3 records

Distribution channels3 records

Marketing channels9 records

Core offering

MSG Payment Systems provides integrated payment processing and merchant services to businesses, operating as a registered ISO of Fifth Third Bank, N.A. The company offers credit card and ACH/electronic check processing, mobile payments, payment terminals, gateways, same-day/next-day funding, text-to-pay, surcharging/cash discount programs, merchant capital, PCI compliance, 3D Secure, and fraud protection. It also enables Independent Software Vendors (ISVs) to embed payment processing into their platforms via APIs, SDKs, low-code options, and hosted payment forms, with ISVs earning revenue share on every transaction processed.

Product overview

MSG Payment Systems is an integrated payment processing platform offering embedded payments and merchant services since 1998. The portfolio consists of core payment processing solutions (Software Integration, Mobile Payments, Payment Terminals, Gateway/Virtual Terminal, Same/Next-Day Funding, Text-to-Pay, ACH/Electronic Check) supported by add-on modules (Surcharging/Cash Discount, Merchant Capital/Funding, PCI Compliance, 3D Secure, Fraud Protection, FastFunds, MSG Partner Portal). The platform also includes developer-facing API products (Mobile SDK with Tap to Pay, Tokenization/Card-on-File, Cloud Terminal Integration) enabling ISVs to embed payment capabilities into their software. Key differentiators include same-day funding, auto-approval underwriting, white-label onboarding, and partnerships with specialized industry verticals (jewelry, propane, healthcare, printing, media, retail, enterprise/B2B).

Differentiator

Problem solved

Functional benefit

Products and services

• Software Integration Integration of credit card and ACH/electronic check processing into existing software platforms, enabling over 100 customizable platform options for ISVs and merchants.
• Mobile Payments Mobile payment app for smartphones and tablets supporting EMV chip, magstripe, contactless, and manual entry payments with offline functionality.
• Payment Terminals Range of countertop and feature-rich payment terminals supporting EMV chip, PIN, mag-stripe, and contactless payments with flexible connectivity options.
• Gateway / Virtual Terminal Central hub for processing transactions from all sales channels including online, in-person, phone, mail, and mobile with unified payment processing.
• Same-Day and Next-Day Funding Accelerated funding solutions providing same-day or next-business-day bankcard deposits for improved cash flow access.
• Text-to-Pay SMS payment solution allowing secure payment links to be sent directly to customers via text message for convenient payment submission.
• Surcharging / Cash Discount Compliant surcharging solution and cash discount programs that reduce or offset credit card processing fees with transparent customer receipts.
• Merchant Capital / Funding Working capital access with repayments deducted as a percentage of daily credit card processing deposits, no collateral required.
• PCI Compliance Step-by-step guidance and tools to achieve and maintain PCI-DSS compliance, minimizing risk and ensuring data security standards.
• 3D Secure

Quantifiable outcome

• Onboarding time dropped by over 60% for a fast-growing ISV partner after embedding MSG payments
• +5 more outcomes

Named customers11 records

Segments8 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

AI capability1 record

Feature12 records

Partnerships

Three partnerships are on record, tiered core and supporting.

• WJewel (by Ishal Inc.)coreTechnology or Integration · 31 October 2025MSG and WJewel partnered to deliver fully integrated payment processing directly within the WJewel jewelry retail management platform. The integration includes embedded credit card processing, same-day and next-day funding options, built-in fraud protection and PCI-compliant security, automated reconciliation posting payments directly to customer accounts, and advanced reporting. WJewel, founded in 1987, provides POS, inventory management, CRM, accounting, and web tools for jewelry retailers, wholesalers, and manufacturers. This is a strategic integration partnership serving the jewelry vertical.
• RJO (Retail Jewelers Organization)coreChannel Partner/ Reseller/ DistributorMSG has 28 years of partnership experience with RJO, serving jewelry retail members with payment processing solutions. The RJO Exclusive Facebook group is referenced as a channel through which jewelers discover and recommend MSG Payment Systems. This represents a long-standing distribution partnership in the jewelry vertical.
• PlaidsupportingTechnology or IntegrationMSG uses Plaid for instant bank account verification during merchant onboarding, enabling merchants to quickly and securely connect their bank account for payouts without tedious paperwork or manual verification steps.

Scale indicators8 records

Recent moves6 records

Expansion highlights6 records

Broad incumbents

• Block (Square): Broad SMB payment processor and POS provider expanding into vertical SaaS embedded payments via Square for Software—overlaps with MSG in merchants served and growing competition in ISV channel.
• Stripe: Global payments platform with a strong ISV/embedded payments suite (Connect, Billing, Terminal) and significant developer mindshare—an incumbent competitor MSG must displace in ISV RFPs.

Emerging players

• Finix: Embedded payments infrastructure provider enabling software platforms to own and scale their payment experiences—competes head-on with MSG's ISV value proposition via a more developer-first, PayFac-style approach.

Direct peers

• National Processing: SMB-focused payment processor and ISO offering virtual terminal, gateway, mobile, and ISV partnership programs—overlaps with MSG in target customer, ISO banking structure, and product breadth.
• North American Bancard: Established ISO/merchant acquirer offering payment processing, POS, gateways, and embedded payments to SMBs and partners—comparable scale, business model, and partner-led GTM to MSG.
• Payrix: Embedded payments platform purpose-built for SaaS companies and ISVs offering revenue share, white-label onboarding, and developer APIs—directly competes in MSG's core ISV channel and embedded payments sweet spot.
• Stax Payments: Subscription-based ISO/processor with an explicit focus on SaaS platforms and ISVs embedding payments, offering revenue share and developer-friendly APIs—structurally the closest competitor to MSG's ISV partnership model.
• Payment Depot: Wholesale-pricing ISO similar to MSG targeting SMBs with interchange-plus pricing, surcharging and cash discount programs, and direct merchant onboarding—overlapping in go-to-market and product mix.
• Host Merchant Services: Long-standing independent ISO serving SMBs across multiple verticals with transparent pricing, gateway, mobile, and POS integrations—comparable to MSG in size, ISO model, and broad vertical coverage.
• PaymentCloud: ISO/MSP focused on SMB merchants and software integrations with a channel partner model—directly comparable to MSG's ISV/channel sales motion and merchant services portfolio.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/msgpaymentsystems
• LinkedInlinkedin.com/company/msg-payment-systems

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about MSG Payment Systems