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Insights and Expertise

Stay current with trends We had a merchant who did two cash advances with us,
then contracted with a broker who promised a better deal.
Value-added solutions come and go. It's important to stay The broker's contract was charging the merchant a higher
current with payment, compliance and technology trends. percentage because the business wasn't open seven days
Alternative lending and merchant cash advance (MCA) a week. The merchant eventually left us altogether and
are good offerings for clients with decent credit that are went bankrupt.
eligible for lines of credit.
Another merchant bought gift cards from us, never sold
ATMs, in the right location with sufficient foot traffic and any, and ended up resenting us, even though we had
a trustworthy cash management service provider, make advised against using the solution. The takeaway, in both
sense if your machines process at least 200 transactions cases, is to make sure merchants understand what they
a month. An ATM is a $3,000 investment, on average, so are getting and how they will use it.
make sure you get your money back. Here are some other
examples of services that are trending now: The rules of selling go double for upselling. Figure out
• Buy now, pay later: BNPL is trending with con- what solution will work for each client and customize,
sumers, but the bad news is that most of these com- customize, customize. Make a goal of presenting at least
one value-added service every month, and you'll be
panies do not pay residuals to referral partners. If
you can find a provider that pays a decent referral surprised by how many merchants are receptive to these
offers. There is no one size fits all—merchant stickiness
bonus, commission or residual stream, go for it and
tell your friends. will always be proportionate to the number and quality of
products and services you offer.
• Chargeback services: Helping merchants lower Allen Kopelman, a serial entrepreneur is cofounder and CEO of
chargeback ratios may not make you a ton of mon- Nationwide Payment Systems Inc. and host of B2B Vault: The Biz
ey, but it is a great way to retain customers and to Biz podcast. Email him at allen@npsbank.com and connect on
keep them secure and profitable. Services like 3D LinkedIn https://www.linkedin.com/in/allenkopelman/ and Twitter @
Secure are great add-ons for high-volume ecom- AllenKopelman
merce businesses.

• Payroll services: Most merchants need payroll ser-
vices, and there are numerous solutions available
in the app marketplace that can be integrated into
virtual and physical POS systems.

• ACH processing: Processing payments through
the Automated Clearing House has been a favorite
of mine for B2B clients and can be a great money
maker for those who understand the value proposi-
tion and charge correctly.
A merchant with over 100 stores has been with us for years,
getting not just processing, but free overnight equipment
replacement, a gift card program, chargeback management
and PCI compliance. When a competitor came knocking,
its rep realized how much effort, resources and money
would be needed to provide the same mix of products and
services and went away.
Find the right fit

Selling value-added services can help create stickiness and
long-term customer relationships, but certain rules apply.
Before presenting a solution to a merchant, make sure it
passes the smell test. First and foremost, consider how
the solution will specifically add value to a merchant's
business and addressable market. Steer clear of any add-
on product that the merchant will not use or that costs
them a ton of money, because if you do that, you could
lose the account.

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