re you In Search Of ways to profit from the expected explosion of card payments at quick service restaurants (QSRs), pharmacies and other retailers? This is a potentially huge opportunity for ISOs. My goal for this column is to put you in a position to win big in this fast-emerging profit segment. The opportunity and the technology are ready-are you?

As you may have read in The Green Sheet ("Opportunity for Growth in the QSR Market," issue 03:08:02, August 25, 2003), while card payments at QSRs are starting to take off, this movement is still in its infancy-in part because ready knowledge about deploying and integrating card payments in this segment has been either incomplete or inaccurate.

According to reports I've seen, 14% of QSRs accepted credit cards in 2002, which might sound low, but it is nearly double the 2000 figure of around 8%. You can see momentum is picking up.

QSR merchants should jump for joy when you present this opportunity: a study of more than 95,000 quick-service transactions done in 2000 revealed that credit card customers spent upward of 20% more than those paying with cash.

Another market research report showed that a major credit card company saw its card users spend close to 100% more at QSRs than the average cash ticket.

Additionally, we're seeing that true outdoor payment technology at QSR drive-throughs cut 10 - 15 seconds off the service time and increases the average transaction size 40 - 45% compared to cash.

Though the numbers vary from report to report, the message is clear: ticket sales go up when card payment is an option at QSRs. The initial fear that card-based transactions would slow the checkout process is not only unfounded, but dead wrong.

Another recent report suggested that the transaction time for a card payment is more than 30% faster than cash. In addition, the big QSR corporations are conducting or have completed pilots to test credit card payments both inside the restaurant and at the drive-thru. Some chains are already recommending that their franchisees add card payment options right away.

Finally, I would estimate that only a small percentage of QSRs have card payments at the drive-through and maybe 5% have card payments inside the restaurant. So the opportunity for ISOs/MLSs is BIG.

If you're waiting for the caveat, the exclusion, or the 'oh by the way' qualifier that will dash all of the good news you've just read, there isn't any-at least that I'm aware of.

QSRs are not the only retailers adding card payments to their drive-throughs and that means a potential new opportunity for you.

To break into this segment of card payments, target franchisees. Most QSRs are owned and operated by franchisees, so you don't have to try to sell or move a big 'corporate mountain.' Target those franchise owners with multiple locations-say 20. Build your list with these players and begin the pursuit of sales.

Here's a suggested pitch: "I want to talk to you about how I can help you increase your per-customer sales tickets...help increase the volume of customers both in and outside the restaurant (drive-thru), cut down on transaction times and cut down on cash errors at the register-even reduce labor costs." How could they refuse?

Some franchise owners may be afraid of investment costs, but you can put those fears to rest. To implement card payments at the drive-thru, there is no need for a big, expensive wiring job.

It's really quite simple: With the proliferation of advanced secure and relatively inexpensive wireless technologies, there is little need to hard-wire when installing card payment technology at the drive-thru.

If your franchisee 'pushes back' because of the perceived expense involved with installing card payment technology, you can assuage the concern by advising that it can all be done wirelessly outdoors, at the drive-thru, with traditional payment terminal technology indoors.

Today's card payment technology offers you and your franchisee many options. Card payment at the order board is easy and includes transaction terminals and keypads designed for harsh conditions and abuse from weather or determined criminals.

The technology is the same as you're already selling-except it has been configured to be suitable for these types of environments.

Offer your prospect the option of having the card payment technology built into the order board or having the card transaction technology installed adjacent to the order board.

Remind the franchisee that this will cut down on a window stop (the 'pay' window) for many customers and will reduce customer time. It could also mean one less employee is needed. Remind them, too, that card association regulations specify that no signatures are required for purchases under $25.

Processors are on board with QSRs, too. They are certifying QSR card payment technology, both inside and outside the restaurants, and snags on the back end are being eliminated.

Don't be concerned about installing and integrating card payment technology at QSRs. Odds are your terminal technology provider is ready to make you the hero by either handling the installation and integration or providing you with ready resources. Remember, the card payment terminal technology companies want you, need you, love you.

Ask them and expect them to help you. If you're working with the right companies, they'll help get it done. Card transactions at QSRs mean more than credit and debit-much more.

Once you and the franchisee make the move to card payments in and outside the restaurant, you can get going with a variety of added profit generators.

Card-based transactions, including loyalty cards, gift cards and co-branded cards, all have the potential to increase the bottom line for both of you.

Considering the many benefits of adding card payments-including increased sales per ticket, serving more customers in less time and less foot traffic and cars going to the competitor because the line was too long-there should be little franchisee resistance to the initial investment. One end result is immediate and long-term ROI.

Get the first account and others will follow. Review your target list for ideal franchisees for this opportunity. I believe they would all benefit from this, but start with the 'low hanging fruit.' From my experience, industry groups tend to follow each other. If the "guy next door" is doing it, the others will at least look into it.

You will give yourself a competitive edge and hopefully gain a customer for life in the process. Franchisees with smarts, or at least those who like making money, will not forget who helped bring new sales and profits to them.

Imagine someone bringing you an easy avenue to increase your top and bottom line. Wouldn't you want that person on your team for the long term? And, don't forget, the burgeoning segment of retailers, including pharmacies, who are adding drive-throughs are your opportunities, too. QSR owners are hungry for the means and methods to grow their businesses, profits and do more with less. You want to win more business and grow your installed base. Consumers want the conveniences and options for paying. Do you hear that ringing sound of success?

Lisa Shipley is Senior Vice President, Hypercom Corp. Reach Lisa at lshipley@hypercom.com