Credit card payment processing company iPayment Inc. showed a 4 percent increase in revenue in the third quarter.

Nashville-based iPayment posted a profit of $3.4 million in the quarter ended Sept. 30, compared to a loss of $730,000 in the year-ago period. The privately-held company had revenue of $194 million in the quarter compared to $187 million in Q3 of last year.

Operating expenses in the quarter came in steady at $173 million.

The loss in the third quarter of 2006 was largely due to interest expense attributable to the company's acquisition by CEO Greg Daily, President Carl Grimstad and other investors in May of that year.