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Education

Then there's the "it's on unless you turn it off" fee. The ISO You screwed me
announces it's signing the merchant up for this great new
service that does everything but what the merchant needs. This issue surfaces the most: the ISO didn't pay the MLS on
It's only going to cost the merchant $29.95 a month. It will time or didn't pay in full, took away merchants, took back
be free for three months, but unless the merchant cancels money, and on and on and on. The reasons are numerous
after the initial period, the ISO continues to charge for it and are always the same. One could say this would not
even though the merchant never asked for it. I have seen happen if MLSs have attorneys look at their agreements
this cause more attrition than raising prices. It comes off before signing. This is a fairy tale. Unless you have signed
as sneaky and unprincipled. If MLSs attempt to opt out of numerous agreements, you really don't know what to look
this money grab before implementation, they are told to for when litigation becomes reality. I will never understand
suck it up and enjoy the few pennies they'll make from the why an ISO who made a deal on day-one would want to
monthly fee. change it down the road and negatively impact an MLS
that has been a good partner for years.
It's not you, it's me
I've encountered situations where an ISO that started out If I were to ask all MLSs that read this article to send me
being MLS driven decided that MLSs were a major pain examples of why they left a former ISO partner, I'm sure
and wanted only to work through POS resellers. Once an 90 percent of the emails I'd receive would describe how
ISO makes a full commitment to do this, it's just a matter the MLS was screwed by his or her ISO. I'd prefer it if 90
of time before the MLS is given lowest priority. The end percent of the emails would indicate the MLS just grew up
result is the MLSs move on. and wanted to leave the nest.

We need to talk
I remember a line from a Michael Franks song that said,
Many ISOs review the MLS agreement and want to "I hear from my ex on the back of my checks." Using that
renegotiate it. By renegotiate I mean give less to the MLS. same line of thinking, most ISOs never meet in person
If I have learned anything in this business, it's that deal or talk to their MLSs even though the MLSs are sending
count is the best way to gain power over any ISO during them lots and lots of merchants. So the only time MLSs
contract talks. I think it's a foolish way to do things, it's hears from their ISOs is when they get paid. If more ISOs
still the first question everyone asks prospective MLSs. would take more interest in their MLSs and not just throw
money at them, they might retain them a lot longer and
You did what? not have to get email from MLSs that says, "Its time to say
goodbye."
It's a fact of life in business that sooner or later you are
either going to be bought or you will buy someone. If you
are the one being bought, it's a sure bet your merchants Steve Norell is director of sales at US Merchant Services Inc. Based in Port
will start to see either rate increases or new fees magically St. Lucie, Fla., he oversees the USMS sales force and maintains the com-
appear on their statements. pany's bank and processor relationships. You can reach him by email at
steven@usmsllc.com or by phone at 772-220-7515.
When the MLS questions this, the new
owner always claims to have notified
merchants by mail. The owner
probably did, but it was at the bottom
of page 11 in print so small you need
to be a hawk to read it. If I bought a
company for a lot of money, I'd want
to get a return on my investment
immediately. There are only two ways
to do this. Add a lot more merchants or
raise prices. Guess which one usually
wins out? Whether or not this happens,
most MLS leave when a company is
acquired, because the toy they fell in
love with is no longer bright and shiny,
and policies have changed. If there is
anything MLSs hate, it's change.

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