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Education

If e-signature is an option, what are the requirements
and does it work 100 percent of the time?
2. New sales opportunities: Know who to commu- Some processors and ISOs
nicate with for new opportunities. Is it a specialized require exclusive deals
group for MLSs or a dedicated account manager?

3. Integration and terminal application support: De- where you can only board
termine how to make changes to terminal IDs if re- directly with them. Today, this
quired. And have a clear understanding of what is cer-
tified on the platforms you are able to board to. is harder to manage and
4. Merchant account maintenance: Find out the req- harder to expect, as the
uisite timeline, necessary paperwork and other re-
quirements for making changes to bank account in- industry has increasingly
formation, entitlements, physical address, pricing, etc. become more competitive.
5. Timing: Know whether a standard turnaround
time is set forth in your contract for boarding new
merchant accounts, account maintenance or escalated
merchant-related issues. This can help ensure faster
turnaround on requests or, at least, keep your partner From a production standpoint, do you have monthly
accountable. or yearly numbers to hit? If you don't meet those, how
will that affect your book of business, buy-rate and/or
6. Pricing: Determine if you have access to special- split? Some processors and ISOs will then revert you to
ized pricing for large opportunities with slim mar- a different buy-rate and/or split, which can significantly
gins. What is the turnaround time on those types of affect your bottom line.
requests? This access can greatly assist in being com- To be continued
petitive in your market when a big-fish opportunity
comes along. In the next issue, Dee will take you through negotiating
your contract and schedule A with your ISO or processor.
7. Point of contact: Ask where your point of contact is In addition to knowing what you want from a support
for merchant-related issues. Do you call in to a special- standpoint, the ability to negotiate a contract that works
ized team or do you have a direct contact? How are for your business will make a world of difference. No
these issues tracked? Do they assign a case number one likes surprises. Getting a notice from your processor
you can reference when you call or send in communi- that you haven't met your minimums or that you haven't
cation regarding the issue? fulfilled your end of the bargain can be very frustrating.

8. Residual reports: Find out whether you can read And that notice usually comes along with bad news that
your residual report. Are the reports you have access you no longer qualify for the great buy-rate and split you
summaries of your merchants' monthly residual or do signed for.
they provide full details. A detailed report will allow
you to see the cost per line item on your schedule A. All of this can be avoided by knowing what to look for in
If you can't find it, ask where you can see it. Know- your contract and making sure you can meet the processor/
ing your costs and how they pertain to your merchant ISO's expectations. Something as easy as asking for a
accounts will greatly assist in auditing your monthly ramp up period of 12 to 24 months to get to the volume
residual reports. This will allow you to pinpoint any expected from you can significantly aid you in meeting
discrepancies in your monthly payout. the minimum numbers set by your partners.
9. Contract terms: Read your contract's fine print; know Dee Karawadra is president and CEO of Impact PaySystem, and Emily
what is expected of you and from you. Is your contract Karawadra is the company's chief financial officer. Since 2001, Impact
an exclusive? Some processors and ISOs require ex- PaySystem has been a leading provider of payment processing technolo-
clusive deals where you can only board directly with gies and services to merchants throughout the United States. Through
them. Today, this is harder to manage and harder to alliances with payments industry leaders such as Chase Paymentech,
expect, as the industry has increasingly become more First Data, Buypass, Sage and more, Impact PaySystem offers tailored
competitive. However, if a processor or ISO is giving
you a low buy-rate and high split, the company may solutions to meet the unique needs of each merchant. Dee and Emily will
require an exclusive with minimums built in. welcome your questions and comments at dee@impactpays.com and
emily@impactpays.com, respectively.

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