Gravity Payments
| Company type | Private |
|---|---|
| Industry | Financial services |
| Founded | 2004 |
| Founder | Dan Price, Lucas Price |
| Headquarters | Seattle, Washington , United States |
Key people | Dan Price (Founder, former CEO, strategic advisor), Tammi Kroll (CEO) |
| Products | Credit card processing, financial services |
| Owner | Dan Price (sole owner as of November 2021) |
Number of employees | 240 (2021) |
Gravity Payments is a company specializing in credit card processing and financial services, established in 2004 by Dan Price. Its headquarters are located in Seattle's Ballard district, Washington, and it has a workforce of 240 employees. As of November 2021, Dan Price holds sole ownership and serves as the only board member.
The firm attracted significant media coverage in 2015 when CEO Dan Price declared a $70,000 minimum wage for staff at its Seattle branch. By September 2019, this wage increase was extended to the Boise office, with planned incremental raises through 2023 aiming to reach the $70,000 threshold. By August 2022, the company's minimum annual salary had increased further to $80,000.
History
In February 2004, Gravity Payments was founded by brothers Lucas and Dan Price. By mid-2008, it had become Washington state's largest credit card processor and ranked 70th nationwide.
Responding to the expiration of the Middle Class Tax Relief and Job Creation Act of 2012 in 2013, Dan Price implemented a 20% pay raise for all employees earning less than $100,000. Additionally, the company introduced an unlimited paid time off policy. These changes resulted in productivity improvements from 30% to 40% and increased profitability. However, this approach faced criticism from Fox News and commentator Rush Limbaugh, who forecasted failure.
In April 2015, Dan Price announced a plan to elevate all employee salaries to a minimum of $70,000 within three years, citing this amount as necessary to shield workers from financial difficulties. To finance this initiative, he reduced his own annual salary from $1 million to $70,000. This restructuring prompted two long-term employees to leave due to the flattened salary structure. Price attributed his decision partly to insights from Daniel Kahneman's research on compensation.
In October 2015, Lucas filed a lawsuit against Dan alleging excessive compensation and conflicts of interest. The case was resolved in Dan's favor in July 2016, with attorney fees awarded to him.
The volume of payments processed by Gravity Payments grew from $3.4 billion in 2014 to $10.2 billion by 2018. In 2015, the company reported a 91% employee retention rate compared to the industry average of 68%, customer retention improved from 91% to 95%, and profits doubled.
During the COVID-19 pandemic in 2020, revenue declined by 55%. Employees agreed to voluntary salary reductions to prevent layoffs, although some expressed feeling pressured. By August 2020, layoffs were avoided and lost wages were reinstated.
On August 17, 2022, Dan Price stepped down as CEO following misdemeanor charges related to assault and reckless driving; Chief Operating Officer Tammi Kroll assumed the CEO role. These charges were dismissed in 2023. In May 2024, Price rejoined Gravity Payments as a strategic advisor supporting the current CEO.