By Allen Kopelman
Nationwide Payment Systems Inc.
What strategies are you bringing to the long game of merchant services? Are you a fair weather partner looking for a quick profit or a long-term strategist, willing to invest time and effort to build a book of business? Partners that pay your monthly residuals have seen both kinds but tend to favor the merchant level salespeople (MLSs) who stay with them, year after year.
Choosing your partner is the most important decision you will ever make in this business, so it might make sense to make a list of what you'd want from a partner before you start shopping around. For some MLSs, it might be technology. For others, it might be having access to an underwriting department. For me, I look for partners that have and fully own unique POS technology, as well as the following attributes:
In the digital-first age, you are your number one brand. MLSs need to promote themselves because that is what merchants, processors and ISOs are buying: a partner who is trustworthy, knowledgeable, accessible and helpful. Whether you are looking to sign a new merchant or sign up with a new ISO, it may be worthwhile to consider what you bring to the relationship.
When you are looking for a new ISO, you need to ask yourself why you're unhappy with your current relationship. If you are new to the business, ask yourself what you are looking for in your first processing partnership. This means looking beyond the surface and asking the hard questions.
For example, what is the real price of free equipment for you and your merchants? Will a shiny promotion reduce your residuals or lock in the merchant in any way? What are the terms and conditions of upfront bonuses and do they have claw backs? What happens if a merchant leaves or fails to achieve anticipated processing volumes? Will you owe money to the processor?
Loyalty is a long-term strategy that can pay big dividends. If you are sending the majority of your business to one or two ISOs, this is a proven way to build brand equity over time. When you have an issue, these companies will know who you are and be more likely to pick up the phone or respond when you need assistance.
Employees know you and are aware that your deals are profitable. Tech support will strive to keep your merchants happy. Underwriters will be more likely to approve your accounts.
I recently asked a long-time partner to expedite a deal. A client with a new store needed a terminal ASAP, and the processor auto approved the merchant's electronic application and shipped a terminal overnight for Saturday delivery. The merchant was ecstatic. When you are loyal, your ISO will move on a deal like that, as long as you call in a favor when you really need one and don't overplay it.
Bottom line: the best way to have a good processing partner is to be a good partner. That means treating your partner's staff with respect and speaking to them nicely, no matter what kind of a day you're having. People will do more when you say "please" and "thank you."
Remember, these people are sitting in cubicles all day, and yours is not the only call they are taking. Being a good partner also means writing deals that are profitable and being known as someone who is easy to work with, who respects others and is loyal.
In the long game of merchant services, it may be tempting to send deals to an ISO or processor with the biggest sign-on bonus or most generous equipment giveaway, but have you thought about the downsides of this approach? When you approach a prospective partner, instead of asking how much they'll pay to take a chance on you or what kind of free equipment they're offering, why not ask how they will support you and your merchants at time of need?
Want to know more? Keep reading The Green Sheet and consider joining my Facebook group, where we can share ideas and support each other, at www.facebook.com/nationwidepaymentsystems. 
Allen Kopelman, a serial entrepreneur, is co-founder and CEO of Nationwide Payment Systems Inc. and host of B2B Vault: The Payment Technology podcast. Email him at allen@npsbank.comand connect on LinkedIn https://www.linkedin.com/in/allenkopelman/ and Twitter @AllenKopelman.
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