Corpay, Inc. (Corpay), a global corporate payments company, helps businesses and consumers better manage and pay their expenses.
Corpay's suite of modern payment solutions helps customers better manage vehicle-related expenses (e.g., fueling, tolls, car registrations, and parking), lodging expenses (e.g., hotel and extended stay bookings), and corporate payments (e.g., domestic and international accounts payable, and point of sale purchases). This results in the company’s customers saving time,...
Corpay, Inc. (Corpay), a global corporate payments company, helps businesses and consumers better manage and pay their expenses.
Corpay's suite of modern payment solutions helps customers better manage vehicle-related expenses (e.g., fueling, tolls, car registrations, and parking), lodging expenses (e.g., hotel and extended stay bookings), and corporate payments (e.g., domestic and international accounts payable, and point of sale purchases). This results in the company’s customers saving time, and ultimately spending less. Corpay has delivered payment and spend solutions with customized controls and robust capabilities that offer its customers a better way to pay.
The company’s wide range of modern, digitized solutions provides control, reporting, and automation benefits superior to many of the payment methods businesses often use, such as cash, paper checks, general purpose credit cards, as well as employee payment processes. In addition to delivering meaningful value to its customers, its solutions also share several important and attractive business model characteristics, including: the majority of revenue is derived primarily from business customers, which tend to have relatively predictable, consistent volumes; recurring revenue models driven by recurring volume, resulting in predictable revenue; unique selling systems with common sales approaches, management, and reporting; specialized technology platforms, and proprietary payment acceptance networks, which create competitive advantages and barriers to entry; and high EBITDA margins, and cash flow translation with limited infrastructure investment requirements.
The company actively markets and sells to current and prospective customers using a multi-channel, go-to-market strategy, which includes comprehensive digital channels, direct sales forces, and strategic partner relationships. It sells stand-alone products and services, and is currently deploying platforms where a single customer can use multiple products from one user interface. It is important to note that it competes mostly with legacy payment companies and traditional ways of paying, such as cash and checks. The company supplements its organic growth strategy and sales efforts by pursuing attractive acquisition opportunities, which serve to strengthen and extend its market positions, and create value faster.
Segments
Corpay has the following reportable segments: Vehicle Payments, Corporate Payments, Lodging Payments, and Other.
The company’s Vehicle Payments solutions help control and monitor spending, and include fuel card offerings, tolls, and other complementary products.
The company’s Corporate Payments solutions simplify and automate vendor payments, and include accounts payable (AP) automation, virtual cards, cross-border payments, and purchasing and travel and entertainment (‘T&E’) card products.
The company’s Lodging Payments solutions help businesses manage their lodging costs, while simplifying the management of hotels and housing, both short and longer-term, while also providing traveler and end customer support.
Vehicle Payments
The company’s Vehicle Payments solutions are purpose-built to enable its customers to pay for vehicle-related expenses. For the company’s business customers, it also provides greater control and visibility of spending when compared with less specialized payment methods, such as cash or general-purpose credit cards. The company’s digital-enabled solutions provide customers with significant control capabilities, such as customizable user-level controls, programmable alerts, and detailed transaction reporting. Furthermore, the company’s business customers can use the data, controls, and tools to combat employee misuse and fraud, streamline expense administration, and potentially lower their operating costs, accessible through sophisticated web portals and mobile applications. For the company’s consumer customers, its Vehicle Payment solutions provide a seamless, mobile-first digital experience when paying for certain vehicle-related expenses, removing the friction associated with alternative payment methods, and having to use multiple service providers.
The company utilizes both proprietary and third-party payment acceptance networks to deliver its Vehicle Payments solutions. In the company’s proprietary networks, which tend to be geographically distinct and unique to the markets it serves, transactions are processed on applications and operating systems owned and operated by it, and only at select participating merchants with whom it has contracted directly for acceptance. These proprietary networks generally provide it with better economics, as it controls more of the transaction, and richer data because of how the networks and point of sale software are configured. Third-party networks are operated by independent parties, such as MasterCard and VISA, and tend to be more broadly accepted, which is the primary benefit compared with its proprietary networks.
Fuel – The company’s fuel solutions are used by customers to pay and control spending for fuel for vehicles and fleets. The company’s fuel solutions are fuel type agnostic (fossil fuel, electricity, etc.). It offers fuel solutions to businesses and government entities that operate vehicle fleets, as well as to consumers primarily in Brazil, Mexico, and Europe. At the most basic level, it provides the measurement of fuel used, and facilitates the payment for that fuel to the merchant, whether that fuel be diesel, gasoline, compressed natural gas, or electricity, while also providing online control, reporting, and tracking capabilities to fleet operators. In many cases, it can also deliver fuel price savings to its business customers when compared to the retail price of fuel. In the U.K. and Europe, it also enables fleets to significantly streamline the VAT reclaim process by digitizing and itemizing fuel receipts in a way that is compliant with tax authority requirements.
The measurement, control, and payment needs of its customers operating electric vehicles (EV) are similar to those operating traditional, internal combustion vehicles, just centered around electricity usage instead of gas or diesel usage. As it helps its customers manage through the transition to EVs, many will operate ‘mixed’ fleets (i.e., fleets with a combination of internal combustion vehicles and EVs) for a long period of time, and will need access to all types of fueling, including networks of fuel stations, electric charging stations both on the road and at the office, and at-home charging options. Considering the increased complexity of managing a mixed or an all EV fleet, its product sets are positioned to remain valuable and capture transaction economics, regardless of the vehicle type or propulsion method. The company has also enhanced its customer platforms and reporting capabilities to ensure a fully integrated mixed fleet experience for its customers, so they can capture and review all the relevant fleet insights in one place, eliminating the need to select alternative providers for different fuel types or manage disparate systems.
Many of the company’s solutions also have additional capabilities. For example, it can enable the fuel card to allow customers to purchase a limited set of non-fuel items, such as oil, tolls, parking, and vehicle maintenance supplies. The company’s proprietary EV networks in the U.K. and western Europe, combined with its Mastercard network in the U.S., offer access to hundreds of thousands of charge points and the management of at-home charging, while also delivering additional value-added services through a mobile app, including the ability to locate and route to a charge-point, charge-point recharging speed, functionality, and whether in use. The company’s EV home-charging software solution is aimed at fleets that need to accurately reimburse drivers for charging that takes place at home for business purposes, capturing, measuring, and accurately pricing relevant charging sessions, and is directly integrated with energy companies to facilitate direct payment, thus bypassing the home energy account. The company is actively expanding its EV footprint to accommodate charging in the U.S., the U.K., and Europe.
The company also provides program management services to major oil companies, leasing companies, and fuel marketers, which allow these partners to outsource the sales, marketing, credit, service, and system operations of their branded fuel card portfolios. The company’s fuel partners include British Petroleum (BP), Arco, Speedway, Casey's, and fuel marketers of all sizes. On the EV side, it also provides similar modular solutions to original equipment manufacturers (OEMs) who wish to distribute on-road EV charging solutions to consumers buying an EV. It would typically either white-label its charging app or integrate directly via application programming interface (API) with vehicle OEMs to deliver access to its products. The company’s vehicle OEM partners include Renault, NIO, Polestar, and Jaguar-Land Rover.
Tolls – Operated primarily in Brazil, the company is the leading electronic toll payments provider to businesses and consumers in the form of radio frequency identification (RFID) tags affixed to vehicle windshields. The company’s tolls solution primarily operates on its proprietary Sem Parar network, which processes transactions for more than 7.5 million tagholders on 100% of the toll roads that accept RFID across Brazil. It provides convenience and faster travel for customers, while also reducing manual labor and cash handling at merchants’ toll booths. The company’s tolls solution also provides commercial customers with driver routing controls and fare auditing, mostly in the form of vehicle type and axle count configuration.
The company’s tags may also be used at approximately 7,300 participating merchant locations to purchase goods and services while in the vehicle, such as parking, fuel, car washes, and meals at drive-through restaurants. At merchant locations, payment via electronic tags is faster, safer, and more secure for customers, which in turn increases loyalty and throughput for merchants, and eliminates the handling of cash.
Parking – The company’s parking app for mobile devices allows millions of consumers and fleets to instantaneously pay for parking, replacing the use of coins or cash for parking. The company’s solution also allows business fleets the ability to manage their vehicles from anywhere, add and remove authorized drivers, and pay in a secured and approved modality. Given the high frequency nature of use and the millions of monthly active users on the app, parking lends itself to further extension into the other services it offers, namely EV charging, insurance, maintenance, and fueling, amongst others. The company’s parking solutions are available in the U.S., Canada, Europe, the U.K., and Brazil.
Vehicle Compliance – The company’s apps for mobile devices in Brazil allow millions of drivers to pay for vehicle taxes, vehicle registration, and parking and fines instantly. These solutions help drivers manage and monitor their vehicle's and license's compliance by leveraging technology and data in consolidated and efficient platforms.
Fleet Maintenance – The company provides a SaaS-based vehicle management solution that helps major leasing companies, as well as fleet operators of all sizes, to manage their vehicle maintenance, service, and repair needs primarily in the U.K., and also in Germany, France, Denmark, Ireland, Australia, and Portugal. This solution is provided through the company’s proprietary maintenance and repair network, which, in the U.K., processes transactions for fleet customers at approximately 9,000 service centers. The same platform also provides leasing companies with the ability to manage the re-marketing of leased vehicles and any ad-hoc vehicle rental needs. In addition, the company offers compliance services to the U.K.’s heavy goods (truck) operators, workshops, and drivers. Also, it is increasingly extending the platform for use in the small fleet and business-to-business-to-consumer (B2B2C) space, enabling consumers to access its proprietary maintenance network at advantaged economics to them. Finally, the company offers tire repair and management services to leasing companies and large fleets, servicing over one million vehicles across approximately 25,000 tire centers in Germany, Austria, Switzerland, Norway, Sweden, Finland, Czech Republic, and Hungary.
Benefits – In Mexico and Brazil, the company offers prepaid food vouchers or cards that may be used as a form of payment in restaurants and grocery stores. Additionally, in Brazil, it offers prepaid transportation cards and vouchers that may be used by commuting employees as a form of payment on public transportation.
Corporate Payments
The company’s Corporate Payments solutions help businesses streamline the management, processing, and payment of their domestic and international invoices, and make point-of-sale purchases for their employees. Companies can save time, reduce costs, and manage business-to-business (B2B) payment processing more efficiently with its suite of Corporate Payment solutions, including accounts payable (AP) automation, virtual cards, cross-border payment products, and purchasing and T&E cards.
AP Automation – The company offers AP Automation solutions with options that are purpose-built for the simplest small business to the most complex large enterprise. It initiates, manages, and guarantees payment of all company-approved bills to all domestic and international vendors through whichever payment modalities the vendors allow, such as virtual card, automated clearing house (ACH), wire, or check. The company’s mid-market/enterprise solution meets the needs of the most complex global enterprises with multiple organizational hierarchies, approval workflows, locations, bank accounts, robust on-demand reporting, and seamless integration with Enterprise Resource Planning (ERP) systems. It also provides rich data on the remittance to the vendor, regardless of payment modality, which facilitates invoice reconciliations and payment posting.
Virtual Card – The company’s Virtual Card solution provides a single-use card number for a specific amount, usable within a defined timeframe. Virtual Cards provide enhanced security relative to checks while reducing total payment costs for its customers. Full remittance data accompanies each Virtual Card payment, providing significant reconciliation advantages to ACH and check payments. The company has integrated its Virtual Card offering into most leading ERP systems, providing a seamless experience for its customers' accounts payable personnel.
The company has built a proprietary merchant acceptance network that accepts its Virtual Card payments. The company’s merchant acceptance network is unique due to the nature of commercial Virtual Card acceptance. Unlike standard point-of-sale purchases, each issuer negotiates directly with the merchant for acceptance, so other issuers’ virtual cards are not interchangeable. This network is managed with proprietary technology that allows it to continuously expand Virtual Card acceptance and optimize the amount of spend it can capture. The scale of this network, coupled with an in-house vendor enrollment service, is a competitive advantage. The company’s ERP integrations, API capabilities, strategic vendor enrollment, and transaction management tools enable it to optimize its customers’ electronic payables programs.
The company’s Virtual Card solution operates on the Mastercard network. The company’s customers’ ERP systems are directly integrated with its issuing system, and merchants must be enrolled in its proprietary vendor network to accept its Virtual Card solution. This two-sided transaction, where both payor and receiver are in its network, provides substantial payment security relative to paper checks or ACH.
Cross-Border Payments – The company’s Cross-Border solution is used by its customers to pay international vendors, foreign office and personnel expenses, and for profit repatriation and dividends. It also offers hedging and risk management services to customers, which helps them manage foreign exchange rate exposures in the course of doing business internationally.
Trade settlement and payment delivery is facilitated through a global network of correspondent banks, in-country payment gateways, and technology providers, enabling it to send payments to recipients in over 200 countries and 145 currencies. The company’s customers rely on it to deliver personalized service and customer solutions. It offers a proprietary trading and payments platform that it can ‘white label’ for financial institutions looking to expand their cross-border payment capability, as well as a suite of API products that enables it to embed its full capability directly within the technology of both customers and partners. By utilizing transaction monitoring and ‘watch list’ screening systems, it ensures payments are safe, secure, and meet all applicable regulatory requirements.
Purchasing and T&E Cards – The company offers purchasing cards and T&E solutions to its customers. These solutions are generally sold in conjunction with its Virtual Card solution or AP Automation offerings. Additionally, it provides technology, which combines and leverages transaction data captured from the company’s virtual, purchasing, and T&E card products, to help its customers analyze and manage their corporate spending.
Lodging Payments
The company’s Lodging Payments solutions help businesses manage and control their lodging costs, simplify the management offerings from hotels or longer-term housing arrangements, and provide traveler and end customer support. The company serves lodging customers through three primary verticals: workforce, airlines, and insurance. It offers lodging solutions to businesses primarily in North America and the U.K. that have employees who travel overnight for work purposes, to airlines and cruise lines globally to accommodate both their traveling crews and stranded passengers, and to policyholders displaced from their homes due to damage or catastrophe on behalf of property insurance carriers.
The size, scale, and nature of the company’s lodging customer base enable it to negotiate lodging nightly rates lower than the rates most companies could negotiate directly, and below the rates available to the general public. It utilizes both proprietary and third-party networks where it provides access to deeply discounted hotel rooms with streamlined travel management programs, providing enhanced controls and reporting, audit, and tax management services. The company can also secure hotel rooms outside its proprietary networks in each of its solutions, or private homes in its insurance vertical. It uses proprietary data management and payment processing systems to manage customer billings and reports, which, combined with its discounted hotel network, provide customers with potential savings and increased visibility into their lodging costs.
Workforce – The company’s workforce lodging solutions provide a comprehensive solution for business travel programs of any size and business profile, with the ability to scale to the needs of the customer. The company’s solution allows customers to find and book lodging online, via app, directly with the hotel, or by calling it. The company provides full-service lodging management for project-based travelers and long-term stay programs. The company’s solution provides customers options, controls, and insights they need to streamline their corporate lodging program and optimize their investment in travel.
Airlines – The integration of the company’s processing systems with airline logistics and crew management systems enables it to deliver incremental enhanced services to the airline travel industry. The company offers end-to-end automation of the crew layover process, providing cost-saving hotel and transport bookings. It also has a proactive disruption system managing flight rebookings, hotels, meals, compensation, and transportation for distressed passengers, which delivers a notification directly to the affected passenger to self-service based on their individual requirements. With an all-in-one platform, airlines can access automated web-based billing and continual transaction auditing that's tied to their operational data to increase billing accuracy.
Insurance – The company provides temporary housing solutions for displaced policyholders of insurance carriers and catastrophe teams, serving at the request and approval of the insurance adjuster, delivering a seamless housing experience. The company partners with claims adjusters to determine the best housing solution for policyholders, including extended stay hotels and long-term housing, providing policyholders a mobile app to manage their temporary housing and receipts.
Other
Corpay provides other payment solutions that are not considered within its Vehicle Payments, Corporate Payments, or Lodging Payments segments.
Gift – The company provides fully integrated gift card program management and processing services to retailers in 66 countries, in both plastic and digital form. The gift cards are issued specifically for each customer under their specific brands and are generally accepted exclusively within their retail network, digitally or in-person.
The company’s gift solutions include card design, production, and packaging, delivery and fulfillment, card and account management, transaction processing, promotion development and management, website design and hosting, program analytics, and card distribution channel management. The company’s turnkey solution benefits its customers in the form of brand promotion, cardholder loyalty, increased sales, interest on prepaid balances, and breakage on abandoned card balances.
Payroll Card – The company offers a payroll card solution in North America in the form of a reloadable stored value card, that can be used instead of a paper payroll check. The company’s solution operates on the Mastercard payment network and the Allpoint ATM network. The payroll cards are issued to its customers’ employees and funded by the employees’ wages. As cardholders, the employees may present the payroll card as a form of payment for personal purchases, transfer funds to their bank account, or withdraw funds from participating ATMs.
Sales and Distribution
The company actively markets and sells its solutions to current and prospective customers using a multi-channel approach. This go-to-market strategy includes comprehensive digital channels, direct sales forces, and strategic partner relationships. The company continues to expand online, end-to-end capability where customers can buy, onboard, and manage their accounts on their own. In addition, the company leverages an omni-channel approach that enables its salespeople to be more efficient by improving their prospecting efforts through digitally sourced leads. In its direct sales force channel, the company acquires and manages the customer relationship, which has historically been either in-person or via telesales. The company’s capabilities are also offered through indirect sales channels (e.g., major oil companies and fuel marketers for fuel, retail establishments for tolls, and vehicle OEMs for consumer EV solutions) and on a branded or ‘white label’ basis, indirectly through a broad range of resellers and partners across most of the company’s solutions. In doing so, the company leverages their sales networks to expand its reach into new customer segments, new industry verticals, and new geographies faster, and at a significantly lower cost.
With respect to the company’s tolls solution, it also places proprietary manned kiosks and unmanned vending machines in areas with high consumer foot traffic, such as shopping malls, to reach consumers. Regarding the company’s gift solutions, third-party distribution is generally provided by other companies, who are reliant on access to its systems to meet their distribution obligations.
The company capitalizes on its products’ specialization by deploying product-dedicated sales forces to target specific customer segments. As the company’s solution set has expanded, it is also facilitating cross-selling and bundled product offerings to fully leverage its distribution capabilities, capture more spend and revenue from its existing customer base, and deliver more value to customers, which should improve customer loyalty and retention.
Credit Underwriting and Collections
The company performs a detailed application review of all new applications for credit, evaluating the applications for fraud, as well as credit risk. With both the fraud and credit review, the company leverages third-party data sources, including device data, fraud scores, and credit bureau data, to name a few. The credit review includes a combination of machine learning models, as well as judgmental underwriting based on customer financials. The company employs a variety of tools to manage risk in its portfolio, including billing frequency, payment terms, spending limits, payment methods, delinquency suspension, and security. Furthermore, the company uses fraud detection programs, including proprietary and third-party solutions, to monitor transactions and prevent misuse. The company monitors the credit quality of its portfolio periodically, utilizing external credit scores and internal behavior data to identify high-risk or deteriorating credit quality accounts, and controls its risk through various strategies. The company conducts targeted strategies to minimize exposure to high-risk accounts, including reducing spending limits and payment terms, or requiring additional security deposits.
Competition
Vehicle Payments: The company’s fuel solutions compete with similar offerings, such as WEX, the U.S. Bank Voyager Fleet Systems, Edenred, Sodexo, Alelo, Radius Payment Solutions, and DKV. The company’s toll solutions compete with similar offerings, such as ConectCar, Veloe (Alelo), and Repom (Edenred). The company’s parking solutions compete with similar offerings, such as ParkMobile, ParkHub, Parking BOXX, and FLASH.
Corporate Payments: The company’s corporate payments solutions compete with similar offerings from financial institutions, including American Express, Coupa, AvidXchange, Bill.com, and Convera.
Lodging Payments: The company’s lodging solutions compete with similar offerings from traditional travel management companies, such as American Express Global Business Travel, as well as in-house travel solutions at large corporations and airlines.
Other: The company’s gift and payroll card solutions compete with similar offerings from Fiserv, other special-purpose card issuers, and payroll companies.
Regulation
The company provides services that are subject to various state, federal, and foreign privacy and information security laws and regulations, including, among others, the Gramm-Leach-Bliley Act, the EU’s General Data Protection Regulation (GDPR), and its Network and Information Security (NIS) Directive, the U.K.'s GDPR and NIS Regulations, Canada’s Personal Information Protection and Electronic Documents Act, and Brazil’s General Data Protection Law. In the U.S., the company is now subject to several comprehensive data privacy laws at the state level, including the California Consumer Privacy Act, as amended by the California Privacy Rights Act, the Virginia Consumer Data Protection Act, the Colorado Privacy Act (effective July 1, 2023), the Connecticut Data Privacy Act (effective July 1, 2023), and the Utah Consumer Privacy Act (effective December 31, 2023). The company is also subject to the separate security breach notification laws of each of the 50 states and the District of Columbia.
Certain of the company’s products that access payment networks require compliance with Payment Card Industry (PCI) data security standards.
The company uses email marketing and text messaging to reach out to current or potential customers and therefore is subject to various statutes, regulations, and rulings, including the Telephone Consumer Protection Act (TCPA), the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM Act), and related Federal Communication Commission (FCC) orders.
All persons engaged in commerce, including, but not limited to, the company and its bank sponsors and customers, are subject to regulatory enforcement by the FTC, under Section 5 of the Federal Trade Commission Act, and state attorneys general, under various consumer-protection statutes, prohibiting unfair or deceptive acts or practices, and certain products are also subject to the jurisdiction of the Consumer Financial Protection Bureau (CFPB) regarding the prohibition of unfair, deceptive, or abusive acts and practices.
The company is subject to several laws and related regulations governing the provision and administration of credit. The Truth in Lending Act (TILA) was enacted as a consumer protection measure to increase consumer awareness of the cost of credit and to protect consumers from unauthorized charges or billing errors, and is implemented by the CFPB’s Regulation Z. Most provisions of TILA and Regulation Z apply only to the extension of consumer credit, but a limited number of provisions apply to commercial cards as well. One example where TILA and Regulation Z are generally applicable is a limitation on liability for unauthorized use, although a business that acquires 10 or more credit cards for its personnel can agree to more expansive liability. The company’s cardholder agreements generally provide that these business customers waive, to the fullest extent possible, all limitations on liability for unauthorized card use. The Equal Credit Opportunity Act (ECOA), together with Regulation B, prohibits creditors from discriminating on certain prohibited bases, such as an applicant’s sex, race, nationality, age, and marital status, and further requires that creditors disclose the reasons for taking any adverse action against an applicant or a customer seeking credit. The Fair Credit Reporting Act (FCRA) regulates consumer reporting agencies and the disclosure and use of consumer reports. The company obtains consumer reports with respect to an individual who guarantees or otherwise is obligated on a commercial card. The Fair and Accurate Credit Transactions Act of 2003 amended FCRA and requires creditors to adopt identity theft prevention programs to detect, prevent, and mitigate identity theft in connection with covered accounts, which can include business accounts for which there is a reasonably foreseeable risk of identity theft.
The company is also subject to certain economic and trade sanctions programs that are administered by the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) that prohibit or restrict transactions to or from, or dealings with specified countries, their governments, and, in certain circumstances, their nationals, narcotics traffickers, and terrorists or terrorist organizations. In addition to economic sanctions programs, the company is also subject to a number of international laws and regulations focused on fighting terrorism and money laundering, including primarily:
In Canada, Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA);
In Australia, as a registered remittance dealer with AUSTRAC, the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act);
In the U.K., as a registered Electronic Money Institution with the Financial Conduct Authority, the Proceeds of Crime Act, 2002, and the Terrorism Act 2000;
In Ireland, the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended by Part 2 of the Criminal Justice Act 2013, and by the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018; and
In the EU, AML requirements promulgated under the 4th, 5th, and 6th EU Anti-Money Laundering Directives.
Numerous other countries have also enacted or proposed new or enhanced AML legislation and regulations applicable to the company.
Non-banks that provide certain financial services are required to register with FinCEN as ‘money services businesses’ (MSB). Certain of the company’s subsidiaries are registered as MSBs.
In addition, provisions of the BSA known as the Prepaid Access Rule issued by FinCEN impose certain obligations, such as registration and collection of consumer information, on ‘providers’ of certain prepaid access programs, including the stored value products issued by its sponsor banks for which the company serves as program manager.
The company is subject to similar statutes in certain foreign jurisdictions in which it operates, such as the U.K. Bribery Act.
In connection with certain services the company provides for payment cards bearing the Mastercard brand and to those acting as merchants accepting those cards, the company must comply with the bylaws, regulations, and requirements that are promulgated by Mastercard and other applicable payment-card organizations, including the Payment Card Industry Data Security Standard (PCI DSS), the Mastercard Site Data Protection Program (SDP), and other applicable data-security program requirements. A breach of such payment card network rules could subject the company to a variety of fines or penalties that may be levied by the payment networks for certain acts or omissions. The payment networks routinely update and modify their requirements. The company’s failure to comply with the networks’ requirements, or to pay the fines they impose, could cause the termination of its registration and require it to stop processing transactions on their networks. The company’s subsidiary, Comdata Inc., is PCI DSS 3.2 compliant.
The company is also subject to network operating rules promulgated by the National ACH Association relating to payment transactions processed by it using the ACH network.
Rules adopted under the Dodd-Frank Act by the Commodity Futures Trading Commission (CFTC), provisions of the European Market Infrastructure Regulation and its technical standards, as well as derivative reporting in Canada and the U.S., have subjected certain of the foreign exchange derivative contracts the company offers to its customers as part of its cross-border payments business to reporting, recordkeeping, and other requirements.
The Housing Assistance Tax Act of 2008 requires information returns to be made for each calendar year by merchants, acquiring entities, and third-party settlement organizations with respect to payments made in settlement of electronic payment transactions and third-party payment network transactions occurring in that calendar year. Reportable transactions are also subject to backup withholding requirements. The company is required to comply with these requirements for the merchants in its Comdata network.
History
The company was founded in 1986. The company was incorporated in 1998. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024.
