Kipp, a card payments startup, is bought and plans to grow in the US

Kipp, a company that helps stores recover sales from declined card payments, has been acquired by an investor group led by The Lifetime Value Company (LTVCo) and its founders. Kipp says it will now speed up its expansion in the United States. The company shared the news in a press release on Thursday, Oct. 29.

What Kipp does

Sometimes a card is declined because the account does not have enough money. This is called a nonsufficient fund decline. Kipp lets a store pay a fee, called a premium, on a payment that would otherwise be turned down. The bank that issued the card still decides which payments to approve. It also sets the premium it wants for taking on extra risk. Shoppers pay no additional fee, according to the release.

What changes

Kipp will keep running independently. Co-founder Chanan Lavi stays CEO and co-founder Nir Levy stays chief technology officer. The company says the new backing gives it the resources to grow in the US, improve its technology and work with card issuers and merchants.

Kipp also added three industry veterans: Jeff Stiefler as executive chairman, Adam Coyle as strategic advisor and Randy Christofferson as a board member. LTVCo's brands include BeenVerified, Bumper and Ownerly.

What is not known

The release does not give the price of the deal, the size of the backing, or a timeline for growth. It also does not name which issuers or merchants will join.