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Education

Do your merchants offer cash discounts?

As author of Street Smarts this year, Aaron Nasseh is using the moniker "Street Smarts" in GS Online's MLS
SM
Forum. Within the forum, he will be seeking input about issues of concern to the payments community
throughout the year. When this issue went to press, MLS Forum members were responding to his
question about cash discount programs. They discussed such questions as: What's the difference between
surcharging and a cash discount, how do these programs work, and are they legal?

You can add your voice to the discussion thread titled "Cash discount program!" at www.greensheet.com/
forums/viewtopic.php?f=1&t=43542. If you aren't a member of the Forum, follow a quick registration process
by clicking on the login link in the upper right-hand corner of our home page, www.greensheet.com.

You can also contact Aaron at anasseh@finicalinc.com with your responses to questions he poses or with
ideas for future discussions.

type of training, services and support they provide call, it is safe to assume that your business will not
to their agents. In my career, I have met countless be valued much in such an organization.
agents who complained about the lack of support
from their ISO partners. 5. Legal review: When you find an ISO partner
that you are comfortable with, be sure to have your
3. Do your due diligence: Thanks to the Internet, agreement reviewed by an attorney specializing in
you can be a private investigator and do some due the payments industry. I cannot emphasize enough
diligence on the potential ISO partner. Learn as the importance of this step. Your entire financial
much as you can about the company and its practices. future may depend on it, so you must make sure
Find out whether the company has a high turnover that your interests are protected. I have also found
in management. That's generally indicative of poor the initial review of an agreement to be very
leadership at the top, and for me, that's enough of a telling about the company I may be getting into a
reason to walk away. relationship with. If there are countless provisions
in the agreement designed to take away your
If the company is public, be sure to review its residuals, that may be a sign of trouble ahead. Be
financials. You will be surprised to learn that some sure to have your attorney negotiate terms that are
of the largest ISOs in our industry are deeply in debt fair to both sides.
and are financially unstable. Also, be sure to review
any past or pending lawsuits against the company. Aaron Nasseh is the founder and Chief Executive Officer at Finical Inc.
This usually provides you with a quick peek inside His extensive sales and management experience includes having previ-
the company.
ously served as the General Manager of CardPayment Solutions and
4. Get to know the CEO: The chief executive officer Vice President of Sales at iPayment Inc. He may be reached at anasseh@
of a company is the captain of the ship, and the finicalinc.com or at 818-330-4055.
company is only as good or as bad as its CEO. Do
a search online on the CEO, and learn as much as
you can about him or her. Request a call with the
individual, and see what type of a person you
are getting into business with. If the CEO's ego
supersedes his or her judgment, then it would be
wise to look elsewhere. If the CEO won't take your

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