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Old-Fashioned Values Prove Their Worth

W hen The Green Sheet started profiling companies that were making a difference in the payment-processing industry, one of the first organizations to be showcased was Electronic Payment Systems (01:08:02, Aug. 27, 2001).

The message EPS sent out last year was strong - creating profitability and growth for ISOs by offering superior solutions and service. It placed a call to the ISO community. Who picked up the phone? Agents from all over the country.

"We've signed up a lot of new agents, but not new in the business," says John Dorsey, President/CEO of EPS. "They came from other providers who, unfortunately, lost them because these agents felt their providers didn't care whether they sent them business or not. They felt they weren't appreciated."

EPS has capitalized on that lack of appreciation. It marketed itself heavily at trade shows, advertised in major trade publications and talked to as many reps working the streets as possible.

"When people are unhappy and keep seeing our name, they think, 'Hey, why not give them a call?' " says Dorsey. "We're continuing to put our name out there and supporting it with internal improvements."

Those internal improvements included increased technical-support personnel, another risk-management specialist and additional agent-relations reps. EPS even brought in another bank and an additional processor to offer processing choices for its ISOs.

According to Dorsey, EPS believes in providing multiple options for its agents, options that incorporate more in-house services. Along those lines, EPS recently has embraced a private-label truncation solution with plans for a loyalty card program this summer.

"We've gone to truncation, and we've brought it in-house so we can do it solely for us," says Dorsey. "By keeping the revenue stream in-house instead of having to go to an outside provider, our agents make more money. Every chance we get to eliminate the middleman means more money for our ISOs."

EPS also walks the walk on another service - namely, same-day merchant numbers.

"Everyone says it, but we do it," says Dorsey. "If it's in by noon, it's out by 5, even if we have to work 'til dark. I'll stake my life on that statement."

To ensure that same-day delivery, EPS employs six specialists whose sole job is to work merchant ID numbers exclusively.

Online apps is another service EPS has incorporated in the last year. Throw in online stat reporting that's updated twice daily for agents and a new teleconferencing unit to provide quality training and field communication, and what emerges is an organization that's definitely putting its money where its mouth was.

EPS's balance sheet reflects that investment. Last year it averaged 800 deals a month. This year, EPS boasts 1,200 legitimate installs per month and is working on a target of 1,400. Last year, EPS had 18,000 merchant deals on the books. This year, that figure has grown to 24,000 merchants.

"We owe it all to doing what we say we are going to do," says Dorsey. "We kill our merchants with customer service. We talk to our ISOs. I call myself the new-customer service manager. I take their calls and I personally provide service."

In addition to Dorsey putting himself on the front line, EPS has 10 staffers in customer service who make and take calls every day, all day. Seven tech staffers are available as well, all cross-trained, all in-house. Then there are the five agent-relations reps whose sole job description is dealing with sales agents. This entire multi-support operation functions live, with no voicemail.

"Services like online apps may be the new demand, but we find the biggest thing is someone taking agents' calls, returning them and answering their questions," says Dorsey. "That how we've gotten a lot of our new business. We work with old-fashioned values. By helping someone else, something good will happen to you."

Helping agents also extends to training. EPS will pay for airfare and hotel to bring agents to its Colorado headquarters. For the larger ISO offices, Dorsey will personally fly out to do on-site training. EPS's approach to signing agents is unusual as well. "I'll say to an agent, 'You write the contract, you tell me what you want, and as long as it works for both sides and gives me a three-year agreement, I'll sign it,' " says Dorsey.

That philosophy seems to be working. In the last year, EPS has expanded its affiliate offices from 25 to 29 locations and counts more than 300 agents in its national family.

Has EPS's competition changed in the last year? According to Dorsey, there's less competition.

"Mergers and acquisitions have changed it for us - in our favor, I might add, since we are more of a smaller, in-house organization, a hands-on company that can resolve issues immediately," he says. "The big acquirers are not going to be able to stay big players because they don't know how to treat the smaller guys."

Dorsey believes that if the smaller guys keep services in-house, portfolios will build. He doesn't see the big guys having that ability to build their portfolios. So how will EPS avoid being gobbled up? "Just say no," says Dorsey. "Tell them to go out and build their own portfolio."

How has the industry as a whole changed this past year? "I see the industry looking for companies that stand behind their word," says Dorsey. "Our industry is becoming a more honest and more ethical industry with better people making it easier to do a deal. The dishonest ones are falling off."

Dorsey also attributes the shift to leasing companies sharing bad agent data and underwriters connecting with each other, which has translated to fraudulent agents getting cut off. "It's so important to share information," says Dorsey. "It's changing our industry, for the better."

Another major change this past year is how merchants are doing business. Dorsey sees them understanding fee structure, understanding upgrades and downgrades. He sees them getting more educated and thinks it's a great thing.

"Merchants now know what they're talking about and what they're paying for," says Dorsey. "Merchants are getting smarter so they can run their businesses better and stay in business longer. That's means profitability for all of us."

If there was one problem that Dorsey sees in an otherwise rosy picture, it is his inability to talk about the issues on a personal basis.

"The problem people in my position have is that we don't have anyone to talk to and share," says Dorsey. "I can't sit down with another CEO and talk about issues. I do sit down with my department managers, and I also go to the bottom and ask what needs to be done. When you're in the belly of the beast, you see what needs to be changed. Ninety percent of the time, the guys in the trenches are right. If you stay in the trenches, there won't be any fires at the top."

Barring any major fires, what do the next 12 months hold for EPS? "We hope to double our business while continuing to improve customer service, technical support and risk management," says Dorsey. "We want to be one of the most state-of-the-art merchant service providers in the United States. I think that's realistic."

Electronic Payment Systems ISO contact: Agent Services Phone: 800-863-5995 E-mail: amaley@eps-na.com

Company address: 6472 South Quebec Street Englewood, CO 80111 Phone: 303-221-2510 Fax: 303-694-0155 www.eps-na.com ISO benefits: _ Keeping revenue stream in-house means agents make more money. _ Same-day merchant numbers are guaranteed. _ Phenomenal growth. _ Completely live customer service - no voicemail.