The Georgia MALPB: A Strategic Alternative to Traditional Sponsor Banks for Merchant Card Processing Services

abstract closeup of a buildingabstract closeup of a building

The Georgia MALPB: A Strategic Alternative to Traditional Sponsor Banks for Merchant Card Processing Services

August 01, 2025

United States
United States
United States
The Georgia Merchant Acquirer Limited Purpose Bank (MALPB) offers a compelling alternative to traditional sponsor bank models by enabling payment processors to directly access card networks like Visa and Mastercard without relying on third-party financial institutions.

This structure provides significant advantages, including operational simplicity, faster speed to market, and greater policy independence—allowing processors to streamline compliance and reduce friction in launching new services or adapting to network changes.

MALPBs are more narrowly scoped than traditional banks and do not engage in deposit-taking, lending, or consumer banking. This helps the parent company avoid classification as a bank holding company for purposes of the Bank Holding Company Act, which carries additional regulatory burdens and restrictions on commercial activities. The model also offers resilience -- processors can maintain continuity even if a third-party sponsor exits the market or shifts priorities. With Georgia’s Department of Banking and Finance providing a robust regulatory framework, and Fiserv already operational as the first MALPB in the U.S., this charter structure is poised to reshape how merchant acquirers engage with the payments ecosystem.

The materials on the Eversheds Sutherland website are for general information purposes only and do not constitute legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Eversheds Sutherland disclaims liability for actions taken based on the materials. Always consult a qualified lawyer for specific legal matters. To view the full disclaimer, see our Terms and Conditions or Disclaimer section in the footer. Eversheds Sutherland is a provider of legal and other services operating through various separate and distinct legal entities. For further information about these entities and Eversheds Sutherlands' structure please see the Legal Notice page of this website.

Services

Industries

Key contacts

robertpile@eversheds-sutherland.com

Robert J. Pile

Partner

Atlanta, United States

brianmurphy@eversheds-sutherland.com

Brian M. Murphy

Partner

Atlanta, United States

hannahwiniarski@eversheds-sutherland.com

Hannah C. Winiarski

Special Counsel

Chicago, United States | Atlanta, United States

Latest Insights

Latest News

Latest Events

EU-flags-at-the-European-Commission-Berlaymont-building-cropped

guides and reports

October 23, 2026

EU: Empowering Consumers for the Green Transition Directive

An abstract image of a building

legal updates

October 21, 2026

Construction Projects in the GCC

Electricity transmission pylons across rural landscape energy infrastructure power lines

legal updates

October 21, 2026

Navigating energy storage globally

Contemporary glass office building urban exterior

legal updates

October 16, 2026

FS+ Country Updates – September 2026

© Eversheds Sutherland 2026. All rights reserved. Eversheds Sutherland is a provider of legal and other services operating through various separate and distinct legal entities. For further information about these entities and Eversheds Sutherlands' structure please see the Legal Notice page of this website.

Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client. For further information about these Eversheds Sutherland Entities and Eversheds Sutherlands’ structure please see the Legal Notices page of this website.