“Can a traditional ISO-model payment processor survive regulatory scrutiny and brand commoditization by folding into a larger fintech conglomerate (Deluxe)?”
Founded in 1990 as a traditional credit card authorization and payment processor for SMB merchants, First American Payment Systems expanded through ISO relationships with Fifth Third Bank, Wells Fargo, and MetaBank, and grew via portfolio acquisitions (Chase Commerce Solutions, 2016). Acquired by Deluxe Corporation in April 2021, it was rebranded 'First American by Deluxe' and subsequently absorbed into Deluxe Merchant Services by 2025. The company faced significant regulatory headwinds: a 2022 FTC lawsuit alleged deceptive fee practices targeting small businesses, settling with $4.9M in refunds. Its embedded finance angle was primarily as a registered ISO/payment facilitator offering merchants card acceptance, check processing, ACH, merchant cash advances, and e-commerce gateway services — not as a BaaS or infrastructure-layer provider.
First American Payment Systems discloses Fifth Third Bank as its sponsor bank, according to the Embedded Finance Index 2026.
First American Payment Systems does not disclose a bank charter of its own; its banking services are provided through Fifth Third Bank.
First American Payment Systems processes payments through CardConnect (self-operated gateway — FirstPay.Net) and Finical Inc..
First American Payment Systems integrates with QuickBooks.
The Embedded Finance Index 2026 maps 4 layers in First American Payment Systems's stack: Payments / PSP (CardConnect (self-operated gateway — FirstPay.Net) and Finical Inc.); Lending (Merchant Cash Advance (1st American Merchant Advance), ACH Program, High Risk Business Funding and Consumer Financing); Sponsor bank (Fifth Third Bank); Accounting (QuickBooks).
First American Payment Systems is founded in 1990 and headquartered in Fort Worth, TX, United States.
First American Payment Systems has raised $21.49M in total (latest round: M&A (acquired by Deluxe, April 2021)).
Get a read on where your own stack stands against First American Payment Systems and the rest of its category — what they built versus bought, which providers they use, and where the gaps in your own strategy and competitive set actually are.