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FinTech Company, CardX Raises Round

CardX, a Chicago-based FinTech company, disclosed Monday that the firm had raised $2 million from Pace Financial Group.  The company promises no fees on credit card transactions because of the company’s regulatory expertise.

The company was founded by Jonathan Razi and Michael Tomko, both graduates of Harvard Law School.  These lawyers have created a service and technology that benefits from their deep regulatory expertise.

As Tomko explained to SPN, “[We] founded CardX in 2013 in response to regulatory opportunity. That year, the credit card companies introduced rules for businesses to pass on processing fees to customers who choose credit for convenience or rewards. At the time, most observers commented that these requirements for passing on fees were so onerous that few merchants would be able to address the compliance overhead.”

So, Tomko and Razi built a company that managed the regulatory hurdles while providing an easy, compliant solution to merchants. Razi echoed Tomko, “It is far more fair to opt for a model like ours, so that cash and debit payers aren’t forced to pay more for someone else’s rewards.”

The company announced its non-dilutive raise from Pace Financial Group on Monday.  This fundraising effort brings the total amount raised for CardX to more than $8 million.  “We were very pleased to raise non-dilutive capital, and our ability to secure debt financing shows the strength of CardX’s revenue performance. This approach also ensures that existing investors continue to see great upside and that our corporate governance doesn’t change,” said Tomko in an interview with SPN.

This raise continues the Chicagoland’s strong fundraising efforts for the year.  In particular, FinTech has been an area where Chicago has performed well.  Tomko suggested that this may be because of the financial acumen of the region stating: “Chicago is home to world-class talent, but what is most important to us is that Chicago has a business community focused on profitability. Unlike many startups based on the coasts, CardX has shown strong per-unit economics from our first accounts signed.”

To find out more about the company, check out their website at

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