CUSI Selects Capital Payments to Implement E-Commerce Solutions for the Utility industry.

Continental Utility Solutions, Inc. (www.cusi.com), a leader in the utility billing software industry, joined forces with Capital Payments. CUSI now offers clients an electronic payment solution geared specifically for the utility sector. Capital Payments’ integration provides competitive access to Visa®/Mastercard® programs for utility companies looking for ways to reduce expenses and automate operations. The partnership is a distinct advantage for utilities who are aggressively improving customer service.

Electronic cash flow management is a new opportunity for CUSI customers to access hidden assets. With Capital Payments as a service provider, CUSI customers have exclusive access to optimal interchange levels and specialized programs that Visa® and MasterCard® offer to the utility sector. Lowering the cost of electronic payment processing can free cash flow which may be hidden in the walls of customer service operations. CUSI customers that use Capital Payments will improve visibility and manageability of previously overlooked payment processing costs.

“Capital Payments is an ideal partner for us,” stated Michael F Guerriero, CEO of CUSI. “Today there is a renewed focus on ground floor business functions to help reduce costs and drive a healthy cash flow. The initial results are impressive in terms of product quality, service and ease of use and we are excited that Capital Payments’ electronic payment options are so flexible. Our experienced teams will work cohesively together to deliver a significant impact to the bottom line to our clientele base.”

Todd S. Whiton, President and CEO of Capital Payments said, “We are delighted to have the opportunity to work with CUSI in helping them and their clients navigate through the ever increasingly complex world of electronic payments. CUSI is a recognized leader in providing Utility Billing Applications. Capital Payments suite of state of the art payment solutions will complement CUSI’s vision of providing the industry’s leading and most comprehensive solution for Utilities throughout the United States. Their status as a Trusted Advisor to their clients is a true complement to our business model.”

About CUSI

CUSI has provided utility billing software to the public sector since 1984 and currently has over 900 customers around the world. Visit www.cusi.com or call 1-800-240-1420.

About Capital Payments, LLC

Capital Payments is a leading provider of merchant and electronic payment solutions. The company is uniquely focused on working with Trusted Advisors to help them navigate their business clients through the increasingly complex world of electronic payments. The company provides transparent and competitive pricing, very fair terms and conditions, and best of breed payment products and services to its merchants. Capital Payments is led by industry veterans with decades of experience in working with small and midsized businesses and their CPAs, Accountants, Attorneys and other trusted advisors. For more information, please visit www.capitalpayments.com.

Capital Payments, LLC Continues Merchant Portfolio Consolidation and Forms Strategic Alliance with Merchant Services Group

Capital Payments announced today that it has made its fourth acquisition, purchasing a specific portion of merchant assets from Merchant Services Group, Inc. (MSG) and entering into a long-term distribution agreement with MSG’s principals. Based in Syosset, New York, MSG is an electronic payments services company specializing in credit card and check processing, and other payment related services for small and medium-sized businesses, corporate merchants and ecommerce merchants.

The acquisition and alliance agreement with Merchant Services Group supports Capital Payments’ ongoing strategy to offer merchant acquiring entrepreneurs opportunities to monetize their existing portfolios and benefit from Capital Payments’ multiple processing relationships, geographic diversity, robust sector-specific product offerings and novel technology. MSG’s merchants extend Capital Payments’ commitment to being the leading national provider of payment solutions to the Trusted Advisor community and their small business clients.

“We are aggressively looking to add entrepreneurs and their portfolios to our platforms, and feel that our speed and financial flexibility as well as our comprehensive suite of payment related products positions us as a leading merchant acquirer,” states Todd S. Whiton, President and CEO of Capital Payments.

Headquartered in Melville, NY, Capital Payments, LLC supports Trusted Advisors such as CPAs and attorneys in working with their small- and mid-sized business clients. Capital Payments is financially backed by Hamilton Investment Partners and Financial Partners, a business unit of Citi Capital Advisors. “We are pleased to support Capital Payments in delivering a superior level of merchant processing to Trusted Advisors and their clients, and we look forward to continuing to work with Todd Whiton, CEO and Pat Keller, CFO, and our partner investors on future successful acquisitions," said Manu Rana, Managing Director of Financial Partners. Capital Payments was represented in the transaction by Jaffe, Raitt, Heuer & Weiss.


About Capital Payments, LLC
Capital Payments is a leading provider of merchant and electronic payment solutions. The company is uniquely focused on working with Trusted Advisors to help them navigate their business clients through the increasingly complex world of electronic payments. The company provides transparent and competitive pricing, very fair terms and conditions, and best of breed payment products and services to its merchants. Capital Payments is led by industry veterans with decades of experience in working with small and midsized businesses and their CPAs, accountants, attorneys, and other trusted advisors. For more information, please visit www.capitalpayments.com.

About Merchant Services Group
Servicing thousands of merchants nationwide, Merchant Service Group, Inc. understands that offering electronic payments in today's world is a necessity for your business. Merchant Service Group provides an array of electronic payment processing options to retail, restaurant, mail order, telephone order, and Internet businesses. Services include credit, debit and EBT card processing, check conversion and guarantee, electronic gift certificate processing, and equipment leasing and sales.

About Hamilton Investment Partners
Hamilton is a private investment firm that makes equity investments in partnership with superior management teams, focusing primarily on small and middle market buyouts and growth capital financings. Following each investment, Hamilton intends to play an active role on the board of directors in guiding the company and developing its expansion and exit strategies. Together, the firm's partners have completed more than 40 financings over the past 25 years. For more information please visit www.hamiltoninvestment.com.

About Financial Partners
Financial Partners, a business unit of Citi Capital Advisors, seeks to provide primary, secondary and special-situations capital to financial services businesses and companies servicing financial institutions. Financial Partners aims to provide equity, debt or hybrid capital for event-, special situation, or growth, acquisition or recapitalization financing. Its goal is to finance exceptional management teams who can take advantage of the skills and relationships of the Financial Partners investment team to catalyze or accelerate the creation of durable value in their companies. Citi Capital Advisors, a unit of Citigroup Inc., manages $14 billion globally on behalf of institutional, corporate, sovereign and individual investors.

Nassau County Bar Association Provides Their members a Solution to More Effectively Manage Their Cash Flow

Nassau Bar Association Endorses Capital Payments as Service Provider of Electronic Payment Solutions

The Nassau County Bar Association (NCBA), the largest legal Association in the north east region, announced today that they are endorsing Capital Payments, a leading electronic payment solutions headquartered on Long Island.

Law firms are finding that clients like the convenience and ease of paying with credit cards. Dede Unger at the NCBA states, “We are excited to provide members with our endorsement of Capital Payments. Our endorsement allows members to feel comfortable and confident about using Capital Payments for credit card and other forms of electronic payment options.”

By using Capital Payments services, law firms can offer their clients the option of paying legal fees and funding escrow and trust accounts using credit and debit cards. By simultaneously debiting a law firm’s operating account for the processing fees when an escrow or trust account is funded, law firms maintain compliance with rules governing such accounts. The fees for processing credit cards or other electronic payments are nominal when compared to the accelerated accounts receivables and convenience which it provides their clients. “Faster payments, fewer write-offs and increased realization rates are added benefits experienced by many law firms who begin offering electronic payment solutions,” said Todd S. Whiton.

Capital Payments provides merchant services to numerous law firms across the country including Am Law 100 firms. Todd S. Whiton, President & CEO of Capital Payments said “Law firms that take advantage of our industry specific suite of electronic payment solutions find they can accelerate cash flow, reduce operating costs, increase client acquisition and retention, and grow their practice.”

Capital Payments provides a complete suite of electronic payment solutions including Credit and Debit Card processing, ACH Check Processing, Automatic Recurring Billing, Online Gateway Solutions, Electronic Reporting, Remote Check Deposit Solutions and Escrow Account Management. Transactions are processed seamlessly through Capital Payment’s Online Gateway Solution.

About the Nassau Bar Association
Founded in 1899, the Nassau County Bar Association is a not-for-profit professional membership association for attorneys. It is the leading source for legal information and services for the legal profession and the local community in Nassau County, Long Island, New York. NCBA enjoys a membership of nearly 6,000 private and public sector attorneys, judges, legal educators and law students, making it the largest suburban bar association in the country.

About Capital Payments, LLC
Capital Payments is a leading provider of merchant and electronic payment solutions headquartered in Melville, New York with offices in Chicago and Florida. Their Law firm clients include Am Law 100 firms across the country. Capital Payments distinguishes itself among merchant service providers by focusing on helping trusted advisors – CPAs, Attorneys, Accountants and others - help their clients navigate the complex world of electronic payment solutions. Capital Payments provides transparent and competitive pricing, very fair terms and conditions, and best of breed payment products and services. Capital Payments is led by industry veterans with decades of experience working with small and midsize businesses and their CPAs, Accountants, Attorneys and other trusted advisors. In November of 2009 Capital Payments acquired Chicago firms Applied Merchant Systems and PayQuake. For more information visit www.capitalpayments.com.

Capital Payments, LLC Acquires Applied Merchant Systems, Inc.

Capital Payments announced today that it has acquired both Applied Merchant Systems and PayQuake (combined: “AMS”) from its founders and shareholders. Based in Chicago, IL. AMS is an electronic payments services company specializing in credit card and check processing, and other payment related services for small and medium-sized businesses, corporate merchants, ecommerce merchants, and trade associations.

Headquartered in Melville, NY, Capital Payments, LLC has built a unique distribution model working with Trusted Advisors such as CPAs and Attorneys. Capital Payments was founded by industry veterans who understand the challenges faced by businesses and bring decades of experience in delivering leading-edge payment processing solutions and financial services to serve the ever evolving needs of U.S. based businesses.

The acquisition of AMS supports Capital Payments ‟core strategy to grow through both strategic acquisition and strong organic growth. AMS services over 12,000 merchants throughout the United States and will extend Capital Payments‟ platform as the leading national provider of payment solutions to the Trusted Advisor community and their small business clients who rely on their advisory services.

“We are excited to add AMS and PayQuake to the Capital Payments ‟ family”, states Todd S. Whiton, President and CEO of Capital Payments. “The AMS business has been built by partnering its considerable technology resources, including a comprehensive end-to-end merchant boarding and reporting system, with industry specific client and practice management software developers, offering their clients a robust and fully integrated payment solution. AMS‟ management team and its employees fully share our superior service philosophy and we look forward to continuing our strong and profitable growth as a combined company”.

“I am looking forward to working closely with the Capital Payments management team in a continued advisory role in taking the business to the next level,” states Darrin Ginsberg, former CEO and one of the founders of AMS. “Our combined experiences along with our sales and marketing techniques and “trusted advisor” focus will serve to position us very favorably in the marketplace.”

Capital Payments will maintain AMS‟ operations and sales offices in Chicago and will remain headquartered in Melville, New York. Mr. Ginsberg will be maintaining a leadership role at Capital Payments.

About Capital Payments, LLC
Capital Payments is a leading provider of merchant and electronic payment solutions. The company is uniquely focused on working with trusted advisors to help them navigate their business clients through the increasingly complex world of electronic payments. The company provides transparent and competitive pricing, very fair terms and conditions, and best of breed payment products and services to its merchants.

Capital Payments is led by industry veterans with decades of experience in working with small and midsize businesses and their CPAs, Accountants, Attorneys, and other trusted advisors. For more information, please visit www.capitalpayments.com.

About AMS
Applied Merchant Systems provides electronic payment products, services, and consulting to businesses of all shapes and sizes across the nation. The company specializes in tailored credit card processing solutions that maximize efficiency, security, and cost savings for the merchant. Founded in 1996 and headquartered in Chicago, Applied Merchant Systems is a recognized leader in the payments industry and facilitates over $1B of electronic transactions annually for its rapidly growing portfolio of merchants. For more information, please visit www.appliedmerchant.com.

The Expanded Role of the CPA

A life-line -- that is what most businesses are looking for nowadays. Someone or something that can help them successfully navigate the rough waters of the current economic climate. For most businesses, salvation is sitting right in front of them – in the person of their CPA.

One of the most deeply entrenched business relationship models is that between a CPA and his client. Over the years, the role of the CPA has expanded well beyond the conventional model of handling clients’ books and records into that of ‘trusted advisor’ in all facets of a client’s organization. With many businesses today in survival mode, we find an even further expansion of the role of CPA -- creating a new environment complete with both challenges, and rewards, for those in the CPA community.

“Clients are asking for more service and demanding more precise information,” notes Steven Sundack, CPA, Commack, New York. “They want you to take a look at their overhead. They want to know if they’re charging the right rates to their customers. They want you to tell them point-blank how they’re doing, if they can make it, or not. It’s important to know your clients to help them.” Steven first opened the doors of his practice in 1979, and now with a client base of more than 300, has seen a new-found significance of the full service model in the CPA community. Embracing the expanded service model not only benefits your clients, but can protect your practice as well. “With so many businesses closing,” Steven notes, “we don’t want to lose 10-20% of our clients. We need to be as proactive and creative as possible to add value and keep our clients going.”

Meeting heightened service demands entails not only taking a closer look at your client’s business operations, but advising a specific course of action. This may mean the following steps:

1. Lowering their operational costs. (ex. researching competition to counsel on service rates)
2. Advocating for their business. (ex. successfully renegotiating a lease with the landlord)
3. Using your role as a financial advisor with institutions (ex. working directly with a client’s bank to reinstitute a credit line)
4. Becoming a strategic extension of their management team (ex. recommending personnel cutbacks, implementing a marketing plan)

Steven advises his clients to watch and conserve their cash, don’t take on too much debt and don’t commit too far. “Clients need to put themselves first in their business. At the end of the week, they must be able to take home a paycheck.”

Taking to heart his full-service role, Steven’s practice has expanded to offer insurance and payroll services to his clients. “If I can save a client $25,000 in insurance expense, for some, that’s the equivalent of writing $250,000 worth of business.” Steven recommends, “If you don’t offer these types of services, it’s important to partner with other associates who can help you.” Joining a network group is a good source of potential partners, as well as referrals.

In considering how to handle compensation for the extra services provided, it’s important to remember that now is not the time to start giving extra bills. “Everything is looked at. Things that weren’t questioned before are now being questioned,” notes Steven. Also, many clients are also asking for a reduction in fees. “For some, I do give a temporary reduction because we really are all in this together. We have to bend like everyone else.”

Steven is confident he and other like-minded CPAs can reap benefits from this new call to service by their clients. “I’m providing service all day – that’s how my business has grown.” The extra hard work and concessions pay off by helping clients survive, and thrive, in this economy. Steven confidently notes, “If my client grows, I grow.”

There is no doubt that strong relationships with customers are key to retaining and growing business. Especially in today’s economy, solid client relationships are not sustained by product or price alone; they must consistently be nourished with exceptional service. Most would agree, bringing this ‘full-service’ relationship model to fruition can stave off attrition and be a harbinger for success for both you and your clients, even in the toughest economies.

Best Practices for B2B and G2B Merchant Services Transactions

Patricia Keller, CFO, Capital Payments, LLC

I won’t go so far as to say I was dragged kicking and screaming into the world of blogging because that would perhaps be a slight exaggeration. Suffice it to say that, as a true numbers person, blogging is not something I would normally do. A CFO “out of water,” so to speak, in the world of verbiage. That said, because I feel strongly about raising awareness on business-to-business and government-to-business merchant services best practices, blogging turns out to be the perfect venue.

Credit card acceptance in both the B2B and G2B market segments continues to increase annually. Today, more businesses are adopting B2B cards to reduce administrative expenses and identify opportunities for savings. Many are making B2B card acceptance a requirement to do business. Simultaneously, government contracts are aplenty and procurement policies often specify G2B acceptance as a requirement. So what does this mean for you as a merchant?

No one can deny the obvious -- that acceptance of B2B and G2B cards allows a business to generate more revenue through multiple sales channels. But, while less obvious, no one can deny, too, the opportunity to effect significant cost savings by taking advantage of the lower interchange (processing) rates these cards can afford. To qualify for the lower rates, a little education goes a long way.

As a result of the growing B2B and G2B segment, MasterCard and Visa have implemented specific rate-sensitive requirements to which card acceptors must adhere to qualify for the lower processing rates. B2B and G2B transactions are Level 2 and Level 3 (versus Level 1 consumer transactions) and have the largest interchange rate spread. With a standard merchant account, Level 2 and 3 transactions will automatically downgrade, increasing the costs of processing the cards – costing you money. You won’t even know it’s happening…until you get your merchant statement.

Level 2 and 3 transactions require a specific method of processing to qualify for the lowest rates. For Level 2, most standard terminals and payment gateways can be used. Level 3 requires special software in conjunction with a Level 3 processing service. Level 3 transactions provide specific information such as item description, quantity, unit-of-measure, price and sales tax information, combined with detailed merchant and cardholder information. The bottom line? The more information you collect at the time of purchase, the lower your processing rate will be. Qualifying for the “gold standard” of Level 3 processing rates for B2B and G2B cards reduces processing expense overall. Savings can be significant. And Level 3 capability will increase your competitiveness. Your costs can, in fact, be less than your competitors.

If your business is trending to the growing B2B and G2B market segments, now may be the right time to reevaluate your current merchant processing provider to take a look at what you’re gaining – and potentially losing – with your current program. It’s a given -- no one knows your business better than you do. But, at the same time, it’s imperative to work with a merchant services provider who is proactive – who knows your industry and will take the time to advise you what best meets your needs – to secure the lowest rates possible.

With more than 18 years in the industry, I can stand tall and admit interchange rates are my passion. Remember, I’m a numbers person. I’d be more than happy to speak with you about how you can realize significant savings with B2B and G2B card acceptance.

Businesses Can Get Significant Relief on Operational Costs

Todd S. Whiton, CEO, Capital Payments, LLC

The past few months have been a difficult time for many businesses trying to navigate the turbulent waters of today’s economy. Being proactive in reducing operational costs to dramatically increase cash flow has been a key initiative to survive. Simply stated, more cash flow translates into more time to concentrate on one’s core business; more time to focus on marketing, strategic planning and client needs.

It is absolutely critical to maintain a healthy cash flow by securing revenue as efficiently and quickly as possible. By now, most businesses realize credit and debit card acceptance is a major component of good cash management in today’s economic environment. However, it’s also important to realize that not all merchant services providers are created equal. At the risk of sounding cliché, “caveat emptor” can easily be applied to the merchant services business. In “Dirty Little Secrets of Merchant Services,” a whitepaper I wrote in 2007, I talk about the elements of deliberate obfuscation, a ‘hit and run’ sales mentality and the fine print terms and conditions that separate one merchant processor from another.

Capital Payments typically saves businesses 10-40% of merchant processing costs. Many businesses don’t realize that 70% of credit card processing costs are variable – and, therefore, manageable. Unraveling the complexity of payment processing costs in terms of interchange optimization is one of the founding principles of Capital Payments. As an example, through an analysis of their businesses’ current credit card processing situation, one of our CPA partners was able to present two of their B2B clients a combined percentage savings of over 25% -- equating to $42,000 annually. Money saved and quickly put back into managing their businesses. Another partner saved 26% in operation costs, and was afforded a cumulative merchant services savings of 11% on five retail businesses he owned.

There’s no denying that in today’s economy, it’s prudent for businesses to re-evaluate their payment card processor – to take a closer look at what they are gaining, and potentially losing, with the status quo. If a business is with the right merchant processor, there’s money out there to be saved.