Finding The Formula For Payment System Efficiencies

Businesses around the world in the payments industry are often guilty of running operations through a fragmented system. This approach is inefficient and comes with many downsides. Having multiple third-party operational systems within a company is management’s worst nightmare: especially when they are introducing a new product, ramping up the workforce, or struggling to obtain critical merchant and customer service data, because it is spread all over the place.

That’s a problem David and Michael McMackin, brothers and founders of The Formula, observed, and have helped many overcome, while working with various financial and payment providers over the past twenty years. Through their experience, the brothers noted that challenges with operational efficiency had become a common thread amongst payment services providers across the entire industry. As a result, they set out to architect the most robust and scalable software platform possible, tailoring it to streamline back office sales and operational functions. They knew the problem would perpetuate as the payments field continued to expand, and they wanted to help companies with a separated operations model to get in front of the curve.

Enter The Formula: an ERP, cloud-based software solution founded and run by the brothers that is tailored for service providers in the payments industry. The Formula is designed to organize all company data and systems together on a single uniform and scalable platform in order to build efficiencies, save overhead dollars and generate new revenues.

David further explained his inspiration for The Formula, telling, “We found there was a technology gap, or more like a technology nightmare. We wanted to overcome this challenge.”


“The Formula does everything you need to do in a company to communicate externally and internally as well as run the work flow to run the operations,” he explained, “It has a multi-hierarchy of management all the way down to personnel to be able to make sure everything is happening the way the business planned.”


According to McMackin, running multiple databases and trying to work with different vendors is detrimental for any business, and it can negatively impact efficiency and sales. For companies that handle large portfolios of merchant accounts, manage a geographically diverse sales force or want to push their bank, credit union or building society payments program to the next level, a fragmented operation system may be the only thing holding them back from achieving progress. The Formula solution aims to help these companies mitigate operational and sales flow problems, thereby giving them a more streamlined environment to maximize growth.

For example, merchant account departments that have traditionally relied on paper-based documents and manual procedures will greatly benefit from the consolidated platform approach to managing their workflow. Companies that regularly fly employees off to corporate training locations would use The Formula to migrate their workforce into a virtual training approach transcending the challenges of time and space.

According to McMackin, “All the products and services are plumbed into virtual training, 24/7. This begins building the sales force, but then that sales force needs to have contact management software that is designed for their workflow. For them to be trained properly, a centralized knowledge based is needed.”

Yet, these are only a few of the many systemic problems The Formula can address within a payments company. Perhaps the most beneficial ingredient of the platform is the high-arching capability it gives a company to combine all of their different data sources into a single-source platform, with real-time activity. This helps operations executives make decisions more quickly and freely, links the sales team to customer service data and gives a fluid, day-to-day picture that ensures company-wide investment in growth and efficiency initiatives.

When asked how leaders in the payments industry should be preparing for shifts in trends, such as growing mobile commerce, and how The Formula can help with preparing company systems, McMackin responded: 


“We see a lot of mobile and technology concerns, or people asking what is going to be the star product. Even from the virtual training piece, of course you want your people to be up to speed,” he said. “You’d like to deliver the single message across your entire enterprise. We’ve always said, ‘say it once say it right, and you’ll never have to say it again.’”


McMackin also notes that The Formula is scalable to accommodate any new product or service, such as mobile payment technology. It can help payment companies introduce and launch these products efficiently. The platform is launch-ready for any size organization, but it is also flexible enough to grow and scale with that company during the entirety of the business life cycle.

“Even if somebody is doing a transaction on an iPad, we’ve always been behind the scenes, delivering, making sure that the training, the sales folks, the operation, the product selections inside of our applications could accommodate new products and services,” McMackin said.

To hear more about The Formula, and what David McMackin has to say on customizing and integrating company operation systems, click on the podcast link below.


*If you have trouble with the audio player above, click here.

Connect: 408.494.2440

David McMackin, Chief Executive Officer
Since 1993, David McMackin has delivered advanced technological solutions to a myriad of companies in the merchant services industry. Today, he continues that mission by delivering the industry’s first comprehensive enterprise management and sales engine – The Formula. David’s most recent success was co-founding and serving as President and Chief Executive Officer of International Payments Companies (International Payments branded family of companies). Utilizing 30 years of experience in business, real estate and banking, David provided dynamic leadership and strategic vision for IP’s operations and future growth.

Prior to International Payments, Mr. McMackin co-founded and served as President and CEO of the AmericaOne’s (AmericaOne branded family of companies). The company aggregated approximately 17,500 during his tenure. Prior to AmericaOne, Mr. McMackin co-founded and served as President and CEO of Exclusive USA Marketing Corporation (EUSA), which controlled the exclusive national marketing rights to the USA Processing/Bank of America (NYSE:BAC) Merchant Services Program. Under his leadership, the company delivered merchant enrollments from outside of Bank of America’s internal branch structure that exceeded all previous volumes experienced by Bank of America. Concurrently with his involvement in EUSA, Mr. McMackin served as the Senior Vice President of USA Processing, which partnered with Bank of America and First Data Corporation to provide cash-advance services to the gaming industry. During his tenure, USA’s companies initiated merchant-processing services for more than 30,000 merchants nationally.

Mr. McMackin shares his commitment to industry excellence with the Electronic Transactions Association (ETA), where he recently completed his second-term as a member of its Board of Directors. Mr. McMackin served on the advisory board of an industry-leading publication, The Green Sheet Magazine. Mr. McMackin has served on the Nominating Committee of the ETA and was the chairman of the Driving Committee for the ETA Network Exposition. He has also served on the ETA Presidential Advisory Committee and as the Chairman of the ISO Advisory Committee for the ETA. Mr. McMackin majored in business administration and marketing at San Jose State University in California.

Michael G. McMackin, President
Michael McMackin has been instrumental in its product development, operations and overall success in the merchant services market. Today Mr. McMackin heads the Professional Services and Solution Delivery side of the business while overseeing all aspects of operations. With deep expertise in the payment processing industry, Mr. McMackin is an expert in all aspects of merchant services and accounts portfolio management. With 20 years in the electronic payments industry, Mr. McMackin is responsible for maximizing shareholder value by delivering unique and profitable programs designed to grow and acquire new merchant and partner relationships.

Prior to his new role at The Formula Mr. McMackin was the Senior Vice President of International Payments, where he oversaw acquisitions and directed affiliate and partner programs. He utilized his extensive experience in business, banking and the merchant-acquiring business to add strength to International Payments current operations and to facilitate the expansion of the company.

Before co-founding International Payments, Michael was the Executive Vice President and Chief Operating Officer of AmericaOne. Mr. McMackin has also served as the National Marketing Director for the USA Processing/Bank of America Merchant Services Program, where he managed the sales team that partnered with national retail and hospitality chains. He was responsible for more than 90 independent sales representatives and offices throughout the major metropolitan areas of the United States and helped to deliver thousands of merchant customers to the company. His additional accomplishments include the implementation and development of numerous cutting-edge product offerings for the Internet, banking and retail industries. Mr. McMackin majored in business administration and economics at Westmont College in Santa Barbara, California.


Featured PYMNTS Study: 

With eyes on lowering costs to improving cash flow, 85 percent of U.S. firms plan to make real-time payments integral to their operations within three years. However, some firms still feel technical barriers stand in the way. In the January 2020 Making Real-Time Payments A Reality Study, PYMNTS surveyed more than 500 financial executives to examine what it will take to channel RTP interest into real-world adoption. Here’s what we learned.

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