Stax, the comprehensive payment tech provider, announced earlier this week its acquisition of CardX, an automated surcharging platform, to make surcharging “more transparent and easier for U.S. merchants and cardholders.”
The update also mentioned that this deal “marks Stax’s third acquisition of 2021, adding to its momentum in the market and 996 percent growth rate over the last three years.”
By acquiring CardX, Stax will give its merchant customers “an easy way to accept credit cards at 0 percent cost,” the announcement added.
CardX’s capabilities should improve Stax’s surcharging services, specifically helping clients with automating surcharging compliance “with built-in disclosures, pricing technology to correctly process every card type, and tools for seamless reconciliation and cash application.”
This eliminates the compliance risks and operational headaches “that merchants have often associated with surcharging,” the announcement noted.
Suneera Madhani, founder and CEO of Stax, stated:
“We have a passion for making the payments experience easier and more effective for our customers, and the same values define the CardX team. As payments become more complex, businesses are looking for a trusted partner to guide them. That’s where we come in – we’re actively working to eliminate friction between businesses and the customers they serve. Now, with CardX, we’re able to more easily help businesses navigate surcharging and be more transparent with cardholders.”
Stax clients may also use CardX’s dynamic fee capabilities to “ensure cardholders save money based on the cards they’re using to make a purchase as well as make it easy for the merchants themselves to implement,” the update explained.
Jonathan Razi, CEO of CardX, remarked:
“As surcharging becomes the market norm in the U.S., it’s important that merchants choose a partner that enables them to succeed across compliance, ease of use and the cardholder experience. Just as my original vision for CardX was to eliminate manual adjustments and deliver a frictionless, turnkey solution, this partnership means that businesses will not only be able to reduce costs, but also modernize every aspect of their accounts receivable process. We’re thrilled to join the Stax family, merge the best of our capabilities and deliver an outstanding all-in-one value proposition for our clients.”
This acquisition gives Stax a new office in Chicago and expands its leadership team to “include Razi and current CardX COO Michael Tomko.”
CardX’s 2,600 active customers, representing over $1 billion in processing volume, will join the Stax network of 22,000 businesses “powering more than $23 billion in transactions worldwide,” the update confirmed.
CardX will continue to operate “as a stand-alone brand alongside the Stax platform, giving CardX’s merchant customers access to a broader portfolio of capabilities to address cardholder payment needs,” the announcement clarified.
Sal Rehmetullah, Co-founder and president of Stax, added:
“This caps off a tremendously strong year for the Stax team, further illustrating our commitment to a premier customer experience. This partnership allows us to continue to grow our enterprise arm, providing enterprise merchants enhanced capabilities to build up their payments features and better serve cardholders. We’re excited to show everyone what we have in store in 2022.”
