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Education

why have they not weighed in on this? The answer is product, but we do not do so even when asked to provide
they have, and they don't like it and don't feel comfortable it by the merchant. Instead, we offer surcharging, and
about it. follow all the rules and regs.

The problem is that there are several terminal makers, as Surcharging is clearly not for every merchant. We usually
well as POS software companies, that build the ability to get one of three responses when we offer it:
surcharge into the terminal, which allows the ISOs and
MLS to implement surcharging without the processor 1. No way. My customers will kill me.
being aware that this is happening. I am sure that if they
really wanted, they could just look at all merchants where 2. I want to try it, but I don't want to be first.
the processing rate is over 3.5 percent and deduce that a 3. When can we start?
cash discount program is being used. I seriously doubt
they will do this until someone tells them to do so. Often, those in the third group tell us after only four
weeks or less to deactivate surcharging because of push
Now we come to surcharging which is permitted by Visa back by their customers. After more than 20 years in this
and Mastercard if done in accordance with their rules. industry, I have seen gimmick after gimmick come and go.
When implemented properly, surcharging follows all the None of them lasts very long. Is this the latest gimmick?
card brand rules to the letter, and if used correctly, it is Time will tell. If I am still here in 10 years, I will find out if
an effective sales tool and model that can be marketed by I was right or very wrong.
every MLS. Plus it removes the threat of fines or warnings
from the card companies.
Steve Norell is director of sales at US Merchant Services Inc. Based in Port
Doomed cash discounts St. Lucie, Fla., he oversees the USMS sales force and maintains the com-

It would seem obvious that everyone would choose pany's bank and processor relationships. You can reach him by email at
surcharging rather than cash discounting. So why isn't this steven@usmsllc.com or by phone at 772-220-7515.
the case? Simple, there are just not that many places where
an MLS can find a true surcharge product. They are not
readily available. It is not easy or cheap to offer a service
that will not only surcharge, but also recognize a debit
card and not surcharge those cards. It takes coding and
money to make this work, and at the end of the day, why
would anyone pick building a surcharge product when for
pennies they can offer cash discount functionality?
Industry Show:
At this point in time, more and more MLSs are offering
cash discount programs, and they are making a lot more Northeast Acquirers Association
money than they have in the past. Well, I say enjoy it while
it lasts, but don't start buying boats, cars and trips to Las NEAA 2019
Vegas.
Highlights: Join hundreds of payment profes-
I believe if you are selling merchants on cash discounts, sionals in Newark as the NEAA celebrates 34
your days are numbered. It is just a matter of time before years of success in educating all distribution
Visa and Mastercard become vicious about enforcing the channels in electronic payments. The NEAA was
rules, or some shopper who happens to be the grandmother the first regional acquirers association to form,
of a U.S. Congressman or Senator starts making a fuss and it has consistently provided information and
about having her debit card surcharged and to borrow an inspiration to ISOs and merchant level salespeo-
American idiom likely derived from World War II Dear ple throughout the payments industry.
John letters, that will be "all she wrote."
Over 80 exhibitors are expected to be on hand to
I should note that MLSs who have a large group of promote the latest POS hardware and software
merchants using cash discounts should now halt those technology, ecommerce and mobile commerce
programs; otherwise their portfolios may be almost solutions, alternative financing products, and
worthless. other services that support the industry.

The surcharging option When: Jan. 16 – 17, 2019
Where: Newark Liberty International Airport
OK, now that I have ranted long enough about this Marriott, 1 Hotel Road, Newark, NJ
polarizing product, here is what I think and what I am Registration: https://northeastacquirers.com/neaa-
doing. My company has the ability to offer a cash discount 2019/
Next Up and Coming Industry Show:
41
Southeast Acquirers Association

SEAA 2019
Highlights: Two - day conference focused on
providing training, education and networking
opportunities to the technology, financial and
ISO/MLS community.

When: March 25 – 27, 2019
Where: Loews Atlanta Hotel, 1065 Peachtree
Street NE, Atlanta
Registration: http://www.southeastacquirers.com/
registration.html