First Data Merchant Services

Name

First Data Merchant Services

Legal name

First Data Merchant Services LLC

Website

https://merchants.fiserv.com

Company type

Private

Founded year

2019

Operating status

Operating

Ownership category

akta.pro rank

Product category

Payment Processing Services

NAICS

Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320)

SIC

Finance Services (6199), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

Integrated Payment Processors (PSP/Acquirer) (FSAMABAA)

akta.pro secondary industries

Card-Present Acquirers (Retail & POS Focus) (FSAMABAC), Merchant-of-Record (MoR) & Payment Facilitation (PayFac) Infrastructure (FSAGABAE), Merchant Acquiring & Processing Platforms (BPAMAFAB), POS, SoftPOS & In-Person Acceptance Infrastructure (FSAGABAO)

Keywords

• Payment processing services
• Merchant acquiring solutions
• Point-of-sale systems
• Payment gateway services
• Embedded payments platform

Headquarters

HQ city

Atlanta

HQ country

United States

HQ region

North America

Offices6 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

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

Revenue model

1. Payment Processing and Transaction Fees: Fees charged per transaction for processing credit card, debit card, and alternative payment method transactions. Includes interchange fees passed through from card networks and assessment fees.
2. POS Hardware and Terminal Sales: Sale of payment terminals (FD150, Clover Station, Clover Flex, Clover Mini, Clover Go) and PIN pads (RP10) to merchants for card acceptance.
3. Subscription Software Services: Monthly or annual fees for Clover POS software subscriptions, Clover add-ons (gift cards, loyalty programs, rewards, security, capital), and Clover business management solutions.
4. Payment Facilitator Residual Revenue: ISVs and software companies becoming PayFacs earn 20-40 basis points more per transaction compared to referral arrangements, generating recurring residual revenue from sub-merchant transaction volume.
5. ISO and Agent Partner Compensation: Revenue sharing programs for Independent Sales Organizations and Agent partners, including risk, no-risk, and full-service processing options with bonus incentives and discretionary residual arrangements.

Pricing tiers

Go-to-market motion4 records

Distribution channels8 records

Marketing channels7 records

Core offering

First Data Merchant Services (operating under Fiserv) provides payment processing and merchant acquiring solutions to businesses of all sizes. Its enterprise offering is the Carat global omnichannel commerce platform, which orchestrates payments, optimizes transactions, and provides unified commerce and global acquiring for large merchants. Its small and mid-sized business offering is the Clover all-in-one POS system, combining payment acceptance hardware (Clover Station, Flex, Mini, Go, Virtual Terminal), software subscriptions, and over 400 integrated apps. The company is also a registered ISO of multiple sponsor banks (Wells Fargo, Deutsche Bank, PNC, KeyBank, Citizens, Pathward, MVB) and operates a Payment Facilitator program that enables ISVs and SaaS companies to embed payments under its sponsor relationship.

Product overview

First Data Merchant Services (operating as Fiserv) provides a comprehensive payment processing and merchant services portfolio built around two primary platforms: Carat for large enterprises and Clover for small to mid-sized businesses. Carat is a global omnichannel commerce platform that orchestrates payments across any channel with payment optimization and global acquiring capabilities. Clover is an all-in-one POS and business management ecosystem offering hardware devices (Clover Station Solo/Duo, Flex, Mini, Go), virtual terminal, and over 100+ add-on applications including gift cards, loyalty programs, capital financing, security, and payroll delivery. Additional products include the FD150 terminal for small businesses, payment gateway for e-commerce, ISO/CFI partnership programs, and vertical solutions for healthcare and government. The company serves clients in more than 100 countries through various regional entities including operations in USA, Canada, Australia, Hong Kong, India, Malaysia, Singapore, and Latin America.

Differentiator

Problem solved

Functional benefit

Brands

• Clover: All-in-one point-of-sale (POS) system and business management platform tailored for small businesses, offering payment acceptance, inventory management, payroll, and customer engagement tools.
• Carat
• Carat from Fiserv
• Clover from Fiserv

Products and services

• Carat Global Commerce Platform Global omnichannel commerce platform that orchestrates payments and experiences for large enterprises, unifying commerce across any channel with payment optimization, global acquiring, and experience management capabilities.
• Clover POS Platform All-in-one point-of-sale and business management solution for small and mid-sized businesses combining payment acceptance hardware, software subscriptions, and over 400 integrated third-party apps covering inventory, payroll, appointments, gift cards, loyalty, and capital.
• FD150 Terminal Compact payment terminal supporting EMV chip, NFC/contactless, PIN debit, EBT, and Dynamic Currency Conversion with PCI-PED version 5.x compliance.
• Clover Station Solo Flexible all-in-one business management POS system for accepting payments and managing appointments, inventory, and employees.
• Clover Station Duo Two-screen POS system designed for speed, security, and customer engagement with screens for both merchant and customer.
• Clover Flex Handheld all-in-one mobile POS solution for accepting payments at the counter, in line, at the table, or on the go.
• Clover Mini Compact integrated POS system that scales with business growth, running operations from payments to inventory and payroll.
• Clover Go Compact card reader accepting EMV chip or contactless cards using a smartphone or tablet for mobile payment acceptance.
• Clover Virtual Terminal Web-based terminal accepting credit and debit card payments directly on a computer, tablet, or smartphone for in-store, mail order, or invoiced transactions.
• RP10 PIN Pad Companion PIN pad for the FD150 terminal allowing customers to keep cards with them, reducing unauthorized use and physical contact.
• Fiserv Payment Gateway E-commerce payment gateway for processing online transactions with mobile SDKs for iOS and Android, plus recurring billing and bill plan capabilities.
• Payment Facilitator (PayFac) Platform Enables ISVs and software companies to become registered Payment Facilitators with underwriting, onboarding, compliance, funding, and support operations under Fiserv's sponsor bank relationship, earning 20–40 bps more per transaction than referral arrangements.
• Healthcare Payment Solutions Payment solutions for healthcare providers including revenue cycle efficiency, patient payment experience, and digital payout capabilities, delivered in partnership with HealthPay24.
• Gift Card Solutions Gift card program offering physical and digital gift card options for merchants to attract, retain, and re-engage customers.
• Merchant Mobile App (India) Mobile application for Indian merchants accepting UPI, Bharat QR, and SMS/email payments with integrated service request capabilities.
• Android Smart Terminal (India) Android-based POS smart terminal solutions tailored for the Indian merchant market.

Quantifiable outcome

• Business banking clients with Merchant Services contribute 2.6x more in revenue and are cross-sold products 8x faster
• +5 more outcomes

Named customers8 records

Segments7 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration13 records

AI capability7 records

Feature7 records

Partnerships

Eight partnerships are on record, tiered flagship, core and minor.

• Google PayflagshipStrategic or Co-development PartnerInnovation partnership with Google Pay to enable touchless payment experiences bridging digital and physical commerce. Available through Carat global commerce platform.
• Amazon AlexaflagshipStrategic or Co-development PartnerVoice commerce partnership with Amazon Alexa enabling voice-powered payments. Alexa Pay feature went live nationwide as part of Carat platform capabilities.
• OracleflagshipTechnology or IntegrationOracle Validated Integration with Oracle Hospitality for the hospitality industry. Fiserv offers integrated solution eliminating need for extensive integration effort with Oracle Property Management System. Used by global hotel chains in APAC.
• Community Financial Institutions (CFI) PartnerscoreChannel Partner/ Reseller/ DistributorBanks and credit unions that partner with Fiserv to offer Merchant Services to their business banking clients. CFI division has perfected a high-touch, white-glove service model for over 20 years. Partners generate 30% incremental non-interest income using Fiserv data analytics.
• Independent Sales Organizations (ISOs)coreChannel Partner/ Reseller/ DistributorISOs resell Fiserv products to merchants with revenue sharing programs, including risk, no-risk, and full-service processing options. Offers marketing tools, resources, support, and 24/7/365 customer service.
• ISV / SaaS Companies (PayFac Partners)coreChannel Partner/ Reseller/ DistributorIndependent Software Vendors and SaaS companies becoming registered Payment Facilitators through Carat. Fiserv provides global sponsor relationship, underwriting, onboarding, compliance, funding, and support operations.
• AccentureminorStrategic or Co-development PartnerSource of proprietary Accenture Fiserv Merchant Acquiring Impact Analysis (2020) referenced in marketing materials showing 2.6x revenue contribution from business banking clients with Merchant Services.
• HealthPay24minorStrategic or Co-development PartnerPartnership with HealthPay24 to help healthcare providers build trust and create revenue cycle efficiency. Joint podcast featuring Fred Sheffield, General Manager of HealthPay24, and John Rubinetti, SVP and GM of Fiserv.

Scale indicators10 records

Recent moves7 records

Expansion highlights7 records

Direct peers

• Stripe: Global integrated payment processor competing directly with FDMS/Fiserv Carat for online and omnichannel enterprise merchants, and increasingly encroaching on SMB acquiring with Stripe Terminal and embedded payments for ISVs.
• Block (Square): Most direct Clover competitor in SMB POS and integrated payments; Square's hardware, software, and Cash App ecosystem target the same small-business merchants that FDMS serves through Clover and ISO/Agent channels.
• Adyen: Global enterprise payment processor and acquirer competing head-to-head with Fiserv Carat for large omnichannel merchants such as Microsoft-class accounts, with comparable unified-commerce and global acquiring capabilities.
• Worldpay (FIS): Large-scale merchant acquirer and payment processor owned by FIS, serving the same SMB, mid-market, and enterprise segments as FDMS with overlapping sponsor-bank and acquiring infrastructure.
• Global Payments: Direct competitor in merchant acquiring, POS (via Genius and Vertex), and integrated software vendor programs; competes with FDMS across SMB, mid-market, and enterprise tiers in multiple geographies.
• Toast: Vertical-specific restaurant POS and payments platform that directly contests Clover's restaurant vertical with tightly integrated hardware, software, and payment processing for SMBs.
• Verifone: POS terminal hardware and payment acceptance competitor whose devices overlap with the FD150 and Clover hardware lines, and which also supplies integrated POS solutions to global enterprise merchants.

Broad incumbents

• PayPal: Broad incumbent in digital payments and merchant processing, including Braintree for enterprise online payments and Zettle for SMB POS, competing with FDMS across both Card-present and card-not-present categories.

Emerging players

• Lightspeed Commerce: Cloud-based commerce platform for retail and restaurant SMBs with integrated payments, competing with Clover on POS functionality and with Carat on omnichannel commerce for mid-market merchants.
• SumUp: European-headquartered SMB payments and POS provider with strong international footprint, competing with Clover in card readers and mobile acceptance for micro and small merchants globally.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat8 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xtwitter.com/fiserv
• YouTubeyoutube.com/Fiserv
• Facebookfacebook.com/Fiserv
• LinkedInlinkedin.com/company/fiserv

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries5 records

Funding overview

Funding rounds

Investors

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

M&A

Investments1 record

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

Frequently asked questions about First Data Merchant Services