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Co v er St o r y
CoverStory
3. It's a great time of year to activate customer engage- So, for those not offering merchants gift cards already, it
ment tools for merchants to capture the email and may be time to start.
phone numbers of their customers. This allows them
to market to them all year round, hopefully attract- Jeff Shavitz
ing customers to come back and shop. Toolbox Payment
Patti Murphy
ProScribes Inc.
The third question is most relevant to my work as an in-
dustry journalist and podcast host, so I'll share insights
on ways ISOs and their sales partners can help merchants
make the most of the upcoming holiday season.
The year-end holiday season is by far the biggest time of
the year for retailers in terms of consumer spending. Total
spending is expected to be down from last year—which,
at 8.5 percent over 2020, was the largest increase in year-
end holiday spending in nearly a generation, according
to the consultancy Deloitte. But at a projected increase of
7.1 percent over 2021 spending, based on Mastercard data,
consumer spending will continue at a healthy clip this
holiday season.
Indications are that consumers were already getting a
jump on shopping in September, seemingly so they could
have more time to spread out their budgets and get deals.
When all is said and done, Deloitte expects Americans to
spend between $1.45 and $1.47 trillion this year on holiday
gifts.
ISOs and their sales partners should be checking in with
their retailers, ensuring they are well-positioned to com-
pete for a share of this spending pie. One strategy that of- bers and market your payments service.
ten gets overlooked is gift card sales. With supply chain
issues likely to continue impacting product availability, 60
percent of consumers plan to purchase gift cards this year
to fill the void, according to research from Fiserv.
Consumers are most likely to purchase gift cards from
discount stores and online retailers, but not to the exclu-
sion of smaller merchants. Fiserv found nearly a third (32
percent) plan to purchase gift cards from coffee shops, for
example. One in four said they would spend $20 to $30 on
each card gifted; one in five expect to spend $50 to $100,
Fiserv reported.
There are several advantages retailers can gain by offering
gift cards. Each gift card purchase is an interest-free loan
a retailer can invest in generating more sales, for example.
They also are great marketing tools that tend to generate
sales in excess of the value loaded onto cards.
The draw for ISOs and agents should be merchant sticki-
ness. Once you have set up a merchant to sell gift cards, it
isn’t easy for them to switch providers, as it requires new,
complex integrations of gift card files with payment pro-
cessing hardware and software.
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1. Having been in the payments space for nearly 25
years, we have grown primarily through partner-
ships, association endorsements and buying group
relationships. One caveat to agents and payment
salespeople is that this strategy is a two-step pro-
cess, and you will not enjoy immediate success with
new sales hitting your residual statements. Why?
You must first create a relationship with an appro-
priate association and explain the value proposition
of your company and why this partnership will be
created and provide additional benefits to associa-
tion members.
Don’t immediately suggest price as the only factor in
selecting your company. Be creative and understand
the needs of the members when developing a win/
win/win program (first win, the association; second
win, association members; third win, your ISO).
When working with associations and buying
groups, it has always been my philosophy that the
association must also become a merchant of my ISO.
In all cases, I would discount my fees/mark-up to an
incredibly low interchange pass through, as having
the association as a client is a very powerful testi-
monial. Furthermore, attending association shows
is a great and meaningful way to interact with mem-
Speaking engagements at conferences and trade-
shows always work. You must plan ahead whether
you wish to be a keynote and/or speak in a break-
out session on a specific topic. For those of you who
are uncomfortable speaking in public, try it. Once
you do it a few times, it becomes very enjoyable and
a great way to earn new business and share your
thoughts on the industry.
Most associations have either an online or physical
newsletter, plus their website continuously updates
relevant information with its members. Writing ar-
ticles on current payment topics is a great way to
demonstrate your authority and educate merchants
(who otherwise would not be thinking about credit
card processing and its effect on their bottom line
profitability).
3. With the holidays around the corner, it's a good
time to review the pricing of your portfolios (never
take for granted that these merchants) and simply
thank your customers for being loyal merchants. A
simple call, hand written note and yes, a holiday gift
are meaningful ways to stay in touch with your cli-
ents.