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ChapterTitleEducation

Credit card processing Another processing option on the rise is the cash discount.

In my hometown, my friends and I want to support our
during the COVID-19 era local restaurants and merchants and help pay for their
processing fees. Buying bagels for $10 will now become
$10.35 when paying with a credit card. I'm happy to pay
the $0.35 fee to support my local bagel store—and so are
an increasing number of other people. Consensus that
it's appropriate to pass processing fees to consumers
continues to grow.
Sell with empathy, respect

Now is the time to educate CEOs, CFOs and independent
By Jeffrey I. Shavitz business owners on many evolving aspects of credit card
ToolBox Payment processing that will help them save money and satisfy
their customers' desire for more technology-driven
've been reflecting on the COVID-19 pandemic from processing. Help them understand hidden processing
the perspective of a credit card processing execu- fees, PCI, and how to combat phishing, set up an online
tive. And like millions of others, my income and portal if they don't have one, and set up mobile payments
I business has been dramatically compromised dur- via smartphone, among other options.
ing the crisis.
Put yourself in the shoes of business owners who are
The following stock prices illustrate volatility in the contending with staggering unemployment, PPP loan
payments space: documents, rent due while businesses are closed,
employees and family members falling ill, people's spirits
• Visa: 2/18/20, $211.20; 3/20/20, $146.84; 5/1/20, $175.57 flagging under restricted contact, and more. And you want
to sell credit card processing amid all of this? Yes. You
• Mastercard: 2/20/20, $344.45; 3/20/20, $211.42; 5/1/20, won't be foolish if you call with empathy and endeavor to
$268.74 teach and help find ways to evolve the merchant's credit

• American Express: 2/20/20, $136.58; 3/20/20, $74.12; card processing.
5/1/20, $88.32
Also, when adding a new merchant account, be respectful
Their earnings are severely affected by decreased of the processor's underwriting process. Submit good,
spending—so are ours. Overall, portfolio valuations have qualified deals that fit your designated processor's
dropped significantly. Some ISOs and agents I've spoken underwriting criteria. Many startups expect to be at
with are down as much as 75 percent. How do we move interchange + 10 basis points when they're importing
forward in this unprecedented business environment? We KN95 and N95 masks with one month future delivery, low
must educate our merchants, continue to diversify our credit scores of the principals, and websites with no refund
portfolios and offer a suite of processing options. policy. It won't happen, and it's unfair to waste personnel's
time conducting due diligence for deals that won't be
Reset, plan, educate, build approved. Develop relationships with conventional and
high-risk processing partners to handle all merchant
Asset allocation and diversification are critical to a types.
successful investment portfolio. This also applies to credit
card processing: work with a variety of merchant types Dream of tomorrow. Credit card transactions are not
to ensure that you spread the reward and spread the risk. going away. However, the payments industry will be
transformed by new consumer behaviors and new
The economic and human impacts of recent months have merchant processing trends. Adapt, be respectful and
been devastating. But rather than live in the past, let's look aware of the new normal, and continue to educate, offer
forward. Let's set the foundation for the coming months new opportunities and serve as a trusted resource for
and years by embracing the technological changes in merchants. This is the only way to progress and create real
payments and the cultural evolution of our society. This is value to ensure your success.
the time to reset, plan, educate and build.

We've often contemplated a cashless society. This vision Jeff Shavitz is the CEO and founder of ToolBox Payment, a mobile app
is now coming to fruition. Merchants of all types are and processing company developed for the home services industry
encouraging shoppers to go contactless in an effort to keep and XeroFees LLC, a cash discount company. Jeff is a serial entre-
their customers and employees safe. The fear of touching preneur in the payments industry having founded and sold three
cash and transmitting the virus is real. It's critical to credit card processing companies including Charge Card Systems
help merchants implement multiple forms of contactless Inc., LexCharge and Alternative Merchant Processing. Contact him
payments. at jeff@toolboxpayment.com and 201-245-4545.

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