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Regulators cannot capture all the problems and complexity egulators cannot capture all the problems and complexity
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of each and every kind of business. Small business will pay f each and every kind of business. Small business will pay
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a disproportionate cost of this regulation.
a disproportionate cost of this regulation.
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– Brandes Elitch Brandes Elitch
CrossCheck Inc.rossCheck Inc.
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These merchants, car dealers, vets, funeral homes, etc., are hese merchants, car dealers, vets, funeral homes, etc., are inside and outside merchant consultants/representatives. nside and outside merchant consultants/representatives.
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already under regulatory scrutiny, and they are not going eady under regulatory scrutiny, and they are not going We pride ourselves on the fact that Group ISO still pride ourselves on the fact that Group ISO still
We
to jeopar
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to jeopardize their valuable franchise by breaking the law dize their valuable franchise by breaking the law processes for the first merchant we ever boarded.rocesses for the first merchant we ever boarded.
or even just being careless. We avoid merchants where we just being careless. We avoid merchants where we
or even
b 2. We have the latest monitoring system within our e have the latest monitoring system within our
believe there is the potential for problems via a restricted elieve there is the potential for problems via a restricted
2. W
l list, for example, 'Buy Here Pay Here' dealers, payday loan ist, for example, 'Buy Here Pay Here' dealers, payday loan or
organization to monitor our inside merchant consultants/ganization to monitor our inside merchant consultants/
c companies, etc.ompanies, etc. r representatives through their phone consultations. The epresentatives through their phone consultations. The
inside representatives are also weekly trained and daily nside representatives are also weekly trained and daily
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3. Possi
3. Possibility of increased federal regulation of B2B bility of increased federal regulation of B2B monitor
monitored by their direct management to prevent these ed by their direct management to prevent these
deceptive practices/habits from evolving. om evolving.
c contracts. Is increased regulation possible? Yes. Is it a good ontracts. Is increased regulation possible? Yes. Is it a good deceptive practices/habits fr
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idea? Not likely. Let's look at the big picture. In 2011, there dea? Not likely. Let's look at the big picture. In 2011, there
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were 165,000 pages of federal regulations. They impose a e 165,000 pages of federal regulations. They impose a In addition, we have implemented, within our Customer n addition, we have implemented, within our Customer
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Service and Dep
big burden on small business. Regulators cannot capture ig burden on small business. Regulators cannot capture
b Service and Deployment departments, training and loyment departments, training and
monitorin
all t
all the problems and complexity of each and every kind of he problems and complexity of each and every kind of monitoring programs which help our organization get g programs which help our organization get
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business. Small business will pay a disproportionate cost usiness. Small business will pay a disproportionate cost direct feedback and find out if deceptive practices are ect feedback and find out if deceptive practices are
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happening with any new or old merchant consultants. appening with any new or old merchant consultants.
of t
of this regulation. And remember, it is the merchant that his regulation. And remember, it is the merchant that h
pays the freight for the credit card infrastructure.ays the freight for the credit card infrastructure. This team is called the 'A-team.'his team is called the 'A-team.'
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3. I believe it can lead to a clause being mandated by the y the
I If we had to scrutinize and monitor our merchants – mostly f we had to scrutinize and monitor our merchants – mostly 3. I believe it can lead to a clause being mandated b
car dealers – we would probably have to increase head ar dealers – we would probably have to increase head F
c
FTC, but I don't feel it will negatively affect organizations TC, but I don't feel it will negatively affect organizations
c count here by 25 percent. Who is going to pay for that? ount here by 25 percent. Who is going to pay for that? like ours, as we offer this [the right to change one's mind fer this [the right to change one's mind
like ours, as we of
W about doing business wit
What would it accomplish? Are we going to (virtually) hat would it accomplish? Are we going to (virtually)
about doing business with us] to any merchant we bring h us] to any merchant we bring
sit in at the dealership when the finance and insurance he dealership when the finance and insurance on boar
sit in at t
on board currently. In addition, we offer a month-to-month d currently. In addition, we offer a month-to-month
manager closes the deal and sells the car, or when they sell he deal and sells the car, or when they sell
manager closes t contract to merchants. This allows merchants the right to ontract to merchants. This allows merchants the right to
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leave at an
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parts to a body shop? arts to a body shop? leave at any time without financial obligation.y time without financial obligation.
Moreover, small businesses – our clients – rely on their oreover, small businesses – our clients – rely on their I I believe this clause could be a benefit if it's focused on the believe this clause could be a benefit if it's focused on the
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i internal expertise and innovative solutions to solve nternal expertise and innovative solutions to solve r right morals and laws. Knowing this industry very well, ight morals and laws. Knowing this industry very well,
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problems – unlike large enterprises, which rely on formal roblems – unlike large enterprises, which rely on formal I I'm aware there are organizations that are not following 'm aware there are organizations that are not following
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rules. Regulators should focus on constructing fewer, more ules. Regulators should focus on constructing fewer, more t the rules and deceptively selling to merchants with false he rules and deceptively selling to merchants with false
effective regulations by defining outcomes, not behavior. ffective regulations by defining outcomes, not behavior.
e information. If this is what it takes to shut them down nformation. If this is what it takes to shut them down
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They should focus on what's important, and this is not.hey should focus on what's important, and this is not. p
permanently, we are all for it.ermanently, we are all for it.
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Cli
Mike Fox, CPP, CPP Cliff Testonff Teston
Mike Fox
Group ISO Merchant Servicesroup ISO Merchant Services S Signature Card Servicesignature Card Services
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1. Group ISO – being an ETA-CPP certified company/oup ISO – being an ETA-CPP certified company/ 1.
1. Gr
1. At Signature we take great efforts to make sure everyone At Signature we take great efforts to make sure everyone
i individual, as well as a wholesale ISO that handles ndividual, as well as a wholesale ISO that handles who represents our business is aboveboard. Most of the ho represents our business is aboveboard. Most of the
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e
everything to do with our merchants – our team is verything to do with our merchants – our team is F
FTC cases to date have centered on merchants violating TC cases to date have centered on merchants violating
newl
trained to understand t
trained to understand that these deceptive practices bear hat these deceptive practices bear newly established telemarketing laws, and their card y established telemarketing laws, and their card
processors are named in the lawsuit for, what essentially rocessors are named in the lawsuit for, what essentially
no benefit for t p
no benefit for them or our company. We have created hem or our company. We have created
boils down to, knowingly aiding and abetting the illegal
our compensation plan to be mainly based on not only
our compensation plan to be mainly based on not only boils down to, knowingly aiding and abetting the illegal
activity of the merchants.
acquisition, but also attrition of merchants.
acquisition, but also attrition of merchants. activity of the merchants.
We feel that basing compensation and achievement/
We feel that basing compensation and achievement/ We protect ourselves from these types of merchants
We protect ourselves from these types of merchants
through our rigorous underwriting process and our
promotion opportunity for our employees on solely the
promotion opportunity for our employees on solely the through our rigorous underwriting process and our
hourly review of merchant account activity to detect fraud
performance of their accounts and longevity of their hourly review of merchant account activity to detect fraud
performance of their accounts and longevity of their
merchant relationships will, and has, completely taken or chargeback issues to immediately address them before
merchant relationships will, and has, completely taken
or chargeback issues to immediately address them before
these deceptive practices out of the question with both our
these deceptive practices out of the question with both our they become larger issues.
they become larger issues.
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