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Payrolls Unplugged

F or ISOs, selling involves more than just credit card services and leasing equipment. With technology taking over every aspect of retail, ISOs are able to offer payment-processing solutions for all sorts of merchant needs.

One area that is getting special attention lately is payroll services. And one company that is charging its way to the top of that hill is U.S. Merchant Services.

In January 1996, U.S. Merchant Services opened its doors in Florida as a small sales organization for credit card processing. Today, it has expanded to an all-encompassing organization offering credit card processing, debit card processing, electronic check processing, gift card processing, ATM script machines, check guarantee, Internet services, EBT card processing, check by phone, fax and e-mail software as well as POS equipment and software. But its shining star is clearly its payroll service.

While credit card processing may be the "gas that drives the horse" at USMS, according to its president, Steve Norell, the company's payroll service is the accelerant that shoots sales agents to the front of the pack.

"Everyone is trying to come up with a better system. There isn't one. It is just about rates," Norell says. "The only thing that gets the merchant's attention is, 'How cheap is the rate?' If you can go in with something a little different like payroll services, you have something the other guy doesn't. That's what you need. You need to be different."

USMS makes the difference through its dual payroll solutions - one a straight payroll-management service like those offered by such companies as ADP, the other a more intricate leasing service with higher residuals.

Here's how it works: As with any payroll-management service, USMS deducts all taxes for merchant employees. Under USMS's payroll leasing program, however, merchant employees are placed under U.S. Merchant Services' tax I.D. number.

Since U.S. Merchant Services has more than 20,000 "employees" from a wide variety of merchants through this program, SUDA and worker's comp taxes are greatly reduced - much to the delight of ISOs and their merchants. With inclusive options for direct deposits, debit cards for employees without checking accounts, group health insurance and a 401K plan, USMS provides the definitive ISO payroll leasing program throughout the 50 states.

The cost for these services depends on merchant payroll size and is a set fee, once established, from 1 1/2 percent to 4 percent of the total payroll.

Is there an ISO out there who wouldn't want a fatter paycheck and happier merchants? As all successful ISOs know, this industry runs on the big three - credit card, electronic check and gift cards. Unfortunately, there's not much made on residuals for those three. So U.S. Merchant Services offers a fourth to up the ante - payroll leasing services.

For example, when an ISO signs up a new merchant for about $10,000 in credit card transactions per month, he or she probably won't see more than $3 to $10 in residuals. Norell says that by adding USMS's payroll services, that same residual can increase more than tenfold to $75-100.

"Once you get them going and are on board, every week there is a payroll for the merchant and every week there is a residual check for you," Norell says.

ISOs getting paid weekly - what could be better? And it's easy to get on board. An ISO simply submits a proposal form answering these four questions: What does the merchant do? How many employees does the merchant have? How much are the employees paid? How many times a month are the employees paid?

The form is faxed to USMS, and USMS faxes back a quote. Once merchant approval is obtained and the forms signed, USMS takes over the payroll and a particular agent is assigned to that merchant to handle all of their needs on a regular basis.

In addition to the obvious benefit of getting a weekly residual check, ISOs also can enjoy customer stability with U.S. Merchant Services. By offering their merchants a complete processing package through USMS, ISOs can enjoy a decreased attrition rate. Merchants are less likely to switch reps when they're getting everything under one roof, efficiently and economically, including the elimination of a payroll administrator.

Consider the fact that most merchants either hire someone in-house or outsource to handle payroll, at a significant cost. USMS guarantees quality payroll services at a fraction of that cost.

"Basically, for $3 an hour, you're hiring an entire company to do all these services," Norell says.

USMS is not stopping at payroll services, however. It also is developing a customized ISP service for ISOs to add to their selling packages. By using USMS's Internet dial-up services, merchants will enjoy speedy and secure Web connections for their employees, and ISOs will receive a residual check for every employee of their merchants who accesses the Internet via USMS's customized ISP program. Look for it in the fall of 2001.

Just how many ISOs is USMS looking for? "As many as want to be a part of our program," Norell says. He welcomes being contacted directly by ISOs looking to add a payroll leasing program to their merchant packages or take advantage of USMS's complete products and services.

USMS even offers training for interested ISOs. A two-day program in Tampa takes ISOs through concept and benefits with extensive instruction on all topics, including payroll, health insurance and the 401k plan. Want to increase your personal payroll? Phone Norell at 877-709-7518, e-mail him at usmerch@onearrow.net, or visit them at www.usmerchantservices.com.

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