Eversheds Sutherland Represents Fiserv in Chartering First Merchant Acquirer Limited Purpose Bank

Last week, Fiserv MALPB processed the first card-based payment transactions under its MALPB charter, becoming the first MALPB to process transactions in the US.

Georgia adopted the Merchant Acquirer Limited Purpose Bank Act in 2012. The MALPB Act established a new form of entity in Georgia -- a limited purpose bank that does not take deposits or make loans, but that is optimized for payment card processors and fintechs like Fiserv. A MALPB charter enables these providers to obtain direct access to major card networks like Visa and Mastercard without having to work through a third-party sponsor bank.

Read the full press release from the State of Georgia’s Department of Banking and Finance.

“We are pleased to have advised Fiserv during a multi-year process that has culminated in their achievement of chartering the first-ever operational merchant acquirer limited purpose bank in the US,” said Eversheds Sutherland Corporate Partner Bob Pile. “We congratulate Fiserv on successfully completing the process and commencing processing payment transactions, which marks their industry leadership in this space and signals a significant development in the payments and fintech sector.”

The Eversheds Sutherland deal team was led by Partner Bob Pile and Special Counsel Hannah Winiarski.