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ReadersSpeak
ChapterTitle
Who really convinced merchants to accept It looks like you and Elitch agree that banks outsourced the
cards? acquiring side of the business, preferring to focus on card
issuing. But you differ as to whether credit cards (not private-
Concerning the article titled "Brand value and full label charge cards that could be used at only one merchant,
disclosure," the statement, "For Visa and MasterCard to but cards that could be used at virtually any merchant) were
have gotten off the ground, two things had to happen: commonly accepted by merchants throughout the United States
banks needed to get credit cards into consumers' hands when this occurred.
and ISOs had to convince merchants to accept bankcards
as a form of payments." The Green Sheet stands by Elitch. Our research indicates that
the first ISO, American Marketing Corp., was established in
This is not accurate. Long before ISOs came into the 1982 by Paul H. Green, President and Chief Executive Officer
industry, banks issued cards and acquired merchants. of The Green Sheet Inc. Thus sprang forth an industry that sold
ISOs in the history of the industry are a relatively recent merchants across the land on credit card acceptance and that,
phenomenon brought about because issuer/acquirers today, supports tens of thousands of sales professionals.
decided that the acquiring business was far less profitable
than the issuing business and decided to outsource these It is commonly accepted that banks simply did not have the
activities. manpower to adequately solicit and service merchant accounts
in a manner that would lead to the state of ubiquitous card
Bottom line is that the acceptance base was already well acceptance that exists today. And without almost universal card
established prior to the emergence of ISOs. acceptance, the card brands would not have been able to flourish.
R. Jack Dale Editor
Entandem Inc.
Reach out
R. Jack,
Do you have questions, comments or suggestions to share?
Thank you for sharing your thoughts on "Brand value and full Please get in touch via email at greensheet@greensheet.com.
disclosure," by Brandes Elitch, The Green Sheet, Sept. 9, 2013,
issue 13:09:01.
8 8 8 8
ChapterTitle
Who really convinced merchants to accept It looks like you and Elitch agree that banks outsourced the
cards? acquiring side of the business, preferring to focus on card
issuing. But you differ as to whether credit cards (not private-
Concerning the article titled "Brand value and full label charge cards that could be used at only one merchant,
disclosure," the statement, "For Visa and MasterCard to but cards that could be used at virtually any merchant) were
have gotten off the ground, two things had to happen: commonly accepted by merchants throughout the United States
banks needed to get credit cards into consumers' hands when this occurred.
and ISOs had to convince merchants to accept bankcards
as a form of payments." The Green Sheet stands by Elitch. Our research indicates that
the first ISO, American Marketing Corp., was established in
This is not accurate. Long before ISOs came into the 1982 by Paul H. Green, President and Chief Executive Officer
industry, banks issued cards and acquired merchants. of The Green Sheet Inc. Thus sprang forth an industry that sold
ISOs in the history of the industry are a relatively recent merchants across the land on credit card acceptance and that,
phenomenon brought about because issuer/acquirers today, supports tens of thousands of sales professionals.
decided that the acquiring business was far less profitable
than the issuing business and decided to outsource these It is commonly accepted that banks simply did not have the
activities. manpower to adequately solicit and service merchant accounts
in a manner that would lead to the state of ubiquitous card
Bottom line is that the acceptance base was already well acceptance that exists today. And without almost universal card
established prior to the emergence of ISOs. acceptance, the card brands would not have been able to flourish.
R. Jack Dale Editor
Entandem Inc.
Reach out
R. Jack,
Do you have questions, comments or suggestions to share?
Thank you for sharing your thoughts on "Brand value and full Please get in touch via email at greensheet@greensheet.com.
disclosure," by Brandes Elitch, The Green Sheet, Sept. 9, 2013,
issue 13:09:01.
8 8 8 8
