Securities Offerings And Merchant Accounts - What You Need To Know

Modern securities offering such as Regulation CF and Regulation A+ use high technology investor raise portals to engage investor prospects and transit them through the investment subscription process. These portals usually have multiple payment rails to tender subscription funds to the company; wire/ACH, credit card, and check are the most prevalent payment rails.

Over 70%+ of the investment subscriptions in Reg A and Reg CF offerings are transacted using credit cards. While the convenience of this method is advantageous for the issuer - the capability to process on credit cards does increase overall costs. A 1% difference in the credit card merchant processing fee on a $20m Reg A+ offering can obviously add up to a large number.  Thus, it pays to be careful of any agreements you are signing with merchant processors for these services. In fact, some of the large "one stop shop" type technology providers tend to be the most expensive on these and other transaction processing fees.

A benefit of working with Regulation D Resources is we are constantly working with our core vendors to obtain the very best rates for these types of services and align you with specialist vendors that are familiar with the intricacies of processing securities subscriptions on a credit card.

Interested in raising capital?  Call us today to discus your options! (720) 586-8610.