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Education

StreetSmarts SM

“Starting in the Street

and ending at the

Merchant’s front door”
Steve Norell

When it's time to say goodbye

By Steve Norell More money, more money
US Merchant Services Inc. Most of the time, MLSs are seeking more money. Most
MLSs think they are getting a great deal from their
o merchant level salesperson (MLS) starts out current ISOs, and truth be told, many are. Some ISOs
sending merchants to one ISO/processor and are now giving away the store to sign new MLSs just to
ends up with the same one years later. Most have them send as many merchants as possible. You have
N MLSs will send their merchants to several signing bonuses, conversion bonuses, larger splits, lower
partners and never stay with one for their entire time in costs, trips to the islands, cars, pet ponies, etc. However,
the industry. So what causes most MLSs to change their the notion exists that if you register as an ISO, you are
partners? I'll explore some reasons. going to get this huge increase in revenue. We can debate
All grown up this forever, but it's more fiction than fact. It's true you will
get 100 percent over your costs, but what are your costs?
In many cases the MLS's business has grown to a size
that warrants registering as an ISO. The only question is, Not that good anymore
who do they register with? If the MLS's current partner Many ISOs start out being the best at everything they do.
is smart, the ISO will register the MLS as a sub ISO to Customer service is outstanding, underwriting is liberal
retain the business. This doesn't always happen. MLSs are and fast, files are built correctly, product offerings and
determined to go their own way. Often, the reasons are costs are great, and risk is not quick on the trigger. Then
that some type of negative action has motivated them to one day merchants call customer service and are put on
leave 100 percent and not to look back.
hold forever. Merchant boarding slows to a crawl. Files
are screwed up, and risk holds money at the drop of a
hat. This occurs for a multiple of reasons, but as far as
Then there's the "it's on unless you MLSs are concerned, it's not their problem. So they run to
turn it off" fee. The ISO announces ISOs that promise none of those issues ever occur at their
offices.
it's signing the merchant up for Unwelcome surprises
this great new service that does One morning you walk in the office and merchants are
everything but what the merchant blowing up the phone wanting to know, what the hell is
needs. It's only going to cost the this fee? Over the years, I've seen ISOs offer services in
an underhanded way. The famous $95 Y2K fee comes to
merchant $29.95 a month. mind.

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