Carnegie International Corp.’s subsidiary Electronic Card Acceptance Corp. (ECAC) has entered into an agreement with Franklin Bank to provide credit card processing services to Franklin Bank merchant customers.
Franklin Bank, servicing Metropolitan Detroit, is headquartered in Southfield, Mich. and has total assets of approximately $500 million.
This agreement provides that Franklin Bank’s credit card processing merchants be referred into ECAC’s joint venture arrangement. Franklin has over 7,000 merchants of which the joint venture expects to convert 40 percent within the next 12 months.
ECAC expects the annualized value of business to be written during fiscal year 1998 to total $330 million in merchant credit card volume, and based on historical data, $1,590,000 in revenues with a projected net profit of $1,065,000. Franklin Bank will receive a share of the projected revenues as their ongoing compensation for the agreement.
Lowell Farkas, president and chief executive officer of Carnegie International Corp., said, “This previously planned transaction is the first of three integral steps to achieve our planned 1998 earnings estimate of $0.20 per share.”Details