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Educationucucatatioioionn
Ed
Ed
Ed
Busting my b
Busting myths about ths about
business. In many cases, the potential disruptor is not usiness. In many cases, the potential disruptor is not
f
fully understood, which feeds peoples' fears.ully understood, which feeds peoples' fears.
change However, before you worry about an issue that may
change
However, before you worry about an issue that may
or may not alter the payments industry, make sure
or may not alter the payments industry, make sure
the potential change is relevant to you. For example,
the potential change is relevant to you. For example,
B should you concern yourself with the effects the
By Jeff Fortneyy Jeff Fortney
should you concern yourself with the effects the
C Clearent LLClearent LLC Durbin Amendment will have on ATMs if you don't
Durbin Amendment will have on ATMs if you don't
sell or place ATMs?
sell or place ATMs?
T h Even if the issue seems relevant, revamping aspects of
here are hundreds of light bulb jokes, all based on ere are hundreds of light bulb jokes, all based on
Even if the issue seems relevant, revamping aspects of
the theme of how many people it takes to change he theme of how many people it takes to change
t
the payments industry usually takes months or years.
the payments industry usually takes months or years.
a lig
a light bulb. Most such jokes are crafted to lightly ht bulb. Most such jokes are crafted to lightly
Yes, you should research any new development and
Yes, you should research any new development and
T poke fun at a certain group of people. Here's one poke fun at a certain group of people. Here's one
determine its likely impact to your business, your
you may have heard before: you may have heard before: determine its likely impact to your business, your
merchants and your sales practices. But remember, in
merchants and your sales practices. But remember, in
these instances, time is your ally because simply put,
these instances, time is your ally because simply put,
How many computer programmers does it take to How many computer programmers does it take to change takes time.
change takes time.
change a light bulb? change a light bulb?
None; it's a hardware problem.
None; it's a hardware problem.
2. The
2. The first people to adopt the change will first people to adopt the change will
Since I am Lutheran, my personal favorite is one that I find benefit the most
Since I am Lutheran, my personal favorite is one that I find
benefit the most
pertinent to our industry:
pertinent to our industry:
I
In the world of technology, the term for those who are n the world of technology, the term for those who are
always first in line for the newest gadget, smartphone ys first in line for the newest gadget, smartphone
How many Lutherans does it take to change a light alwa
How many Lutherans does it take to change a light
or computer is "early adopters." They want the newest y adopters." They want the newest
bulb?
bulb? or computer is "earl
products and are willing to work through any small roducts and are willing to work through any small
What? Change?!? p
What? Change?!?
kinks that may need to be updated later on. They're hat may need to be updated later on. They're
kinks t
proud to own the latest and greatest gadget, and they roud to own the latest and greatest gadget, and they
Change is constant in the payments world. Contrary to
Change is constant in the payments world. Contrary to p
don't see necessary updates as a nuisance. y updates as a nuisance.
an often repeated axiom, the more things change in our
an often repeated axiom, the more things change in our don't see necessar
industry, the more they continue to change. They never
industry, the more they continue to change. They never
C
stay the same.
stay the same. Certain merchant level salespeople (MLSs) are like ertain merchant level salespeople (MLSs) are like
t these early adopters. They want to be the first to hese early adopters. They want to be the first to
market a product, solution or innovation that can be product, solution or innovation that can be
As we approach the fourth quarter of 2013, it's evident
As we approach the fourth quarter of 2013, it's evident market a
leveraged to help them sell. ged to help them sell.
that disruption has been an ongoing topic of discussion levera
that disruption has been an ongoing topic of discussion
throughout the year. Ranging from Europay/MasterCard/
throughout the year. Ranging from Europay/MasterCard/
Visa and mobile wallets to lawsuits and the Durbin I It is often said that anything that can be leveraged to t is often said that anything that can be leveraged to
Visa and mobile wallets to lawsuits and the Durbin
i
Amendment, these topics have created consternation in
Amendment, these topics have created consternation in increase sales is a good thing. However, if the new ncrease sales is a good thing. However, if the new
product, service or procedure needs to be tweaked, roduct, service or procedure needs to be tweaked,
our industry. There's no doubt about it: transformation is
our industry. There's no doubt about it: transformation is p
u
coming. updated or has not been fully vetted, your income pdated or has not been fully vetted, your income
coming.
c could be adversely affected by glitches that arise – so ould be adversely affected by glitches that arise – so
Now before you panic, let me add a caveat. Our industry c could your reputation with merchants.ould your reputation with merchants.
Now before you panic, let me add a caveat. Our industry
is constantly evolving. There hasn't been a year in the
is constantly evolving. There hasn't been a year in the
R
business in which nothing has, at the very least, been
business in which nothing has, at the very least, been Remember, although historically pioneers were emember, although historically pioneers were
refined or tweaked. Also, keep in mind that reorganization r regarded with great respect, the majority of them died egarded with great respect, the majority of them died
refined or tweaked. Also, keep in mind that reorganization
b
is not a bad thing, nor does it always impact everyone. In before reaching their destinations. Generally speaking, efore reaching their destinations. Generally speaking,
is not a bad thing, nor does it always impact everyone. In
i
some cases, evolution presents opportunities.
some cases, evolution presents opportunities. it's safer to be the second person to tread down a given t's safer to be the second person to tread down a given
r route. The same normally holds true in the payments oute. The same normally holds true in the payments
w
world.orld.
Four m
Four myths to dispelyths to dispel
That being said, I believe it's important to address the hat being said, I believe it's important to address the
T 3. Change a
3. Change affects everyone the same wayffects everyone the same way
m
myths of change. These are sayings and suggestions on yths of change. These are sayings and suggestions on
This is a common misconception because many new his is a common misconception because many new
how to handle change that can – and will – impact your ow to handle change that can – and will – impact your
h T
developments appear to have an equal impact on all pments appear to have an equal impact on all
s sales success.ales success. develo
p
players in the industry. A prime example is the Fixed layers in the industry. A prime example is the Fixed
Acquirer Network Fee (FANF) imposed in 2012 by er Network Fee (FANF) imposed in 2012 by
Acquir
1. Chan Visa Inc. isa Inc.
1. Change happens fastge happens fast
V
I In today's "always on" society, anything that could n today's "always on" society, anything that could The fee calculation was complex, but it was the same
The fee calculation was complex, but it was the same
p
possibly involve the payments industry is often ossibly involve the payments industry is often
for all processors. Yet some processors had to back-
perceived as a factor that could redefine how we do erceived as a factor that could redefine how we do
p for all processors. Yet some processors had to back-
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