Page 15 - GS240901

Insights and Expertise

StreetSmarts SM

Are you a fair weather partner?

By Allen Kopelman cate with the underwriting and risk management
Nationwide Payment Systems Inc. departments is crucial to getting accounts approved,
especially high-risk and high-volume merchants.
hat strategies are you bringing to the long Your direct input will help these departments make
game of merchant services? Are you a fair informed decisions.
weather partner looking for a quick profit
W or a long-term strategist, willing to invest • Open communication: Beyond giving you a fair
split, a processing partner must support the deals
time and effort to build a book of business? Partners that
pay your monthly residuals have seen both kinds but that you are writing, give you the tools and resourc-
es you need to do your job and be successful, and
tend to favor the merchant level salespeople (MLSs) who
stay with them, year after year. keep the lines of communication open at all times.
Build brand equity
Choosing your partner is the most important decision you
will ever make in this business, so it might make sense In the digital-first age, you are your number one brand.
to make a list of what you'd want from a partner before MLSs need to promote themselves because that is what
you start shopping around. For some MLSs, it might be merchants, processors and ISOs are buying: a partner who
technology. For others, it might be having access to an is trustworthy, knowledgeable, accessible and helpful.
underwriting department. For me, I look for partners that Whether you are looking to sign a new merchant or sign
have and fully own unique POS technology, as well as the up with a new ISO, it may be worthwhile to consider what
following attributes: you bring to the relationship.

• Technology and POS: Technology is a major com- When you are looking for a new ISO, you need to
petitive advantage in merchant services. If you're ask yourself why you're unhappy with your current
selling a POS system that the POS company de- relationship. If you are new to the business, ask yourself
ploys, installs and supports, it may be worthwhile what you are looking for in your first processing
to take a bit less residual from a partner that gives partnership. This means looking beyond the surface and
you more time to sell. asking the hard questions.

• Transparent reporting: The phrase "trust but ver- For example, what is the real price of free equipment for
ify" goes double when it comes to residual reports. you and your merchants? Will a shiny promotion reduce
Look for partners that provide online reporting that your residuals or lock in the merchant in any way? What
is easy to access and understand. Reconcile payouts are the terms and conditions of upfront bonuses and do
with your production to ensure that you are getting they have claw backs? What happens if a merchant leaves
your fair share. or fails to achieve anticipated processing volumes? Will
• Access to underwriting: The ability to communi- you owe money to the processor?

15