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Today, we focus on buying things on to work with independent software vendors (ISVs) or
systems integrators. Even filling out the application for the
the Internet, but numerous studies show processor is a daunting process, and a chatbot is probably
that online sales still comprise less than not going to add much value there.
15 percent of overall retail sales volume, Today, we focus on buying things on the Internet, but
which means the other 85 percent of sales numerous studies show that online sales still comprise
are at brick-and-mortar stores. This is less than 15 percent of overall retail sales volume, which
means the other 85 percent of sales are at brick-and-mortar
where ISOs should be focused. stores. This is where ISOs should be focused.

Merchants want and need to know about anti-fraud
complex set of as many as 150 subsystems connected services, how to take Apple Pay and Android Pay, why
via different digital connection interfaces, operating at EMV is important, how wearables work, how to handle
different speeds, carrying different types of data. chargebacks, why PCI is important, why their rates keep
going up, and a variety of other questions that are best
New platforms will support 4G,Wi-Fi, Bluetooth, Dedicated handled in person. This means that ISOs have to go to the
Short Range Communications, and Gigabit Ethernet. stores, talk to the owners, and review existing statements
These systems can be compromised by accidents, floods, and provide a better value.
rodents or any number of unforeseen threats. The massive
flooding in Houston earlier this year caused as many as 1 ISOs can also talk with merchants about numerous other
million vehicles to be scrapped. payment- and business management-related products
besides credit card processing. There is an enormous
How does this affect the person who makes a living opportunity here if ISOs can educate themselves about
working at a dealership selling cars? We know that AI other products merchants will need and craft presentations
will be at the core of every sector of technology. AI will to discuss them. ISOs who can do this will be able to create
replace middlemen jobs such as help desk, gathering data, a meaningful increase in business revenue, but it requires
presenting proposals, preparing loan applications, etc. a new focus.

AI does not just automate tasks; it changes the nature of "People today are more connected, more technologically
the work. Today, consumers research car purchases before savvy and more mobile," Mastercard Media Relations
visiting the dealership, but they still spend four hours in stated. "As a result, issuers, merchants and device
the grueling process of negotiating, putting together a deal manufacturers seek to provide them more innovative
and getting financing. All of this can be easily automated ways to pay and be paid across all channels and devices.
and reduce the process to an hour, or less. Just as cars are Bringing these solutions to life depends on an ability to
changing, so are salespeople's jobs, and auto salespeople find the right service provider who can work behind the
will have to change their focus and habits to survive. scenes to integrate the technology. "
Merchants need those who will adapt My guess is that most small and midsize merchants

Now let's look at the ISO/MLS business model. When don't read their statements or they read them but don't
electronic ticket capture came around, the card brands understand how the money is allocated to the issuing
needed a small army of salespeople to walk the streets bank, card brands, processor and ISO. This is where a face-
and convince millions of merchants to buy terminals. to-face meeting is essential, because it is the only way this
Merchants could buy terminals only from ISOs. ISOs sold critical information can be brought home to merchants
(or leased) terminals, and provided access to processors. who keep wondering why they have to pay 2 or 3 percent
The only interface involved plugging the terminal into a of gross sales to process digital payments when they can
dial-up telephone line, because all transactions were at the process paper checks for a fifth of that.
POS.
If you are an ISO or MLS, great opportunity awaits you
Obviously, merchant services is much more complicated right now. Go out there and take advantage of all that is
than it used to be. I see more need for intensive involvement happening.
by the ISO in the sales process than by the salesperson
in auto sales. The consumer buys a car perhaps once in Brandes Elitch, Director of Partner Acquisition for CrossCheck Inc., has
three years, but the merchant has to deal with transaction been a cash management practitioner for several Fortune 500 com-
processing issues every day. panies, sold cash management services for major banks and served
as a consultant to bankcard acquirers. A Certified Cash Manager
ISOs have to go through the PCI certification process. They and Accredited ACH Professional, Brandes has a Master's in Business
have to provide multiple solutions, including Internet Administration from New York University and a Juris Doctor from Santa
and mobile, and deal with multiple terminals. They have Clara University. He can be reached at brandese@cross-check.com.

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