|
Links Related |
Trade Association News: City of Broad Shoulders Moves the Bar Higher
Each of these events, both marked by high attendance and exceptional panel discussions, set a new standard for regional training in our industry, which means only good news for the hardworking feet on the street. Field Guide for the Developing ISO The "Field Guide for the Developing ISO" (FGI) is a collaborative, educational seminar independent of MWAA and hosted by Mark Dunn, Senior Vice President, Transaction Services of Universal Savings Bank. Dunn is also MWAA President. Ambiron; Discover Business Services; The Green Sheet, Inc.; MWAA; The Phoenix Group; Point Transaction Systems USA, Inc.; and Universal Nationwide, LLC sponsored the event. FGI provided five solid hours of expert advice, broken out into one-hour sessions. Each session had a lead presenter who gave a 30-minute presentation, followed by commentary from a panel of three to four experts, and concluded with a Q&A. This format was well received by more than 85 participants and proved to be conducive to lively discussion. Ed Freedman, Total Merchant Services led the first session titled: "Blueprint for Your ISO." Freedman's lively presentation style helped start the day in a very upbeat manner. He focused on two major operations: getting set up for success and executing your business plan. Freedman's presentation and the resulting dialogue targeted analysis of the processing agreement; compensation plan options; vendor selection; lead generation; closing; value-added services; and getting involved in the payment processing industry, in general. Follow-up panelists included Scott Anderson, Omega Processing Solutions, LLC; Steve Moon, First Data Corp.; and Jeff Rubin, Newtek Merchant Systems. Each added his advice and insight on the subject, with the focal point being an analysis of the processing and compensation agreements. Greg Cohen, Global Payments Inc. led the second meeting: "How to Grow Up in the ISO Business." This session began with a reading of Visa's definition of "ISO," followed by a discussion of what is not guaranteed by ISO registration. Cohen defined the four "tiers" of ISO evolution: from the lone independent contractor writing five deals a month, to the "super-ISO" writing more than 300 deals per month. Cohen's presentation and the conversation following focused on ownership and portability of merchant accounts; underwriting and risk management; and the importance of management leadership within the ISO. Kurt Strawhecker, Strategic Management Partners, LLC; and Marc Gardner, North American Bancard served as panelists. The $10,000 registration fee and what it does and does not bring to the table for the ISO served as their focal point. David Putnam, Resource Finance Company spearheaded session three: "Financing the Growth of Your ISO." Panelists John Rante, Online Data Corp.; Dave Beck, Copia Capital, LLC; and Mitchell Levy, Cynergy Data shared their experiences in financing business expansion; portfolio valuation; up-front vs. residual income streams; and debt vs. equity financing. Putnam and the panelists stressed the importance of acquiring a basic knowledge of Generally Accepted Accounting Procedures (GAAP) as a requirement for successfully managing business growth. After lunch, Jared Isaacman, United Bank Card, Inc. led "Contracting and Compliance," which focused on ISO processing and merchant agreements. David H. Press, Integrity Bankcard Consultants, Inc.; Holli Hart Targan, Jaffe Raitt Heuer & Weiss; and Randy Moss, Ambiron served as panelists. This meeting was a basic introduction to the complicated and highly regulated subject of contractual agreements. Isaacman's presentation defined the different types of agreements and touched on the parties, terms, liability, ownership, compliance and compensation clauses of these contracts. While stressing the need to obtain competent legal advice, each of the speakers shared their experiences in negotiating and/or reviewing contracts within the ISO/merchant context. The point was to dispel any notion of the "generic, standard" ISO agreement. Steve Moon chaired the final session: "Generating More From Your Base," which addressed the question: Are my margins decreasing? Panelists included Alan Gitles, Landmark Merchant Solutions; Cory Gray, Digital Financial Group; and Vaden Landers, ProfitPoint, LLC. Moon's presentation began with the discussion: What constitutes a margin? An overview of discount rates, occurrence fees, fixed monthly fees, annual fees and other products led to the conclusion that margins might not be decreasing, but rather diversifying. Moon's primary assumption was "you must first understand your costs to improve your margins." The panel discussed various methods for increasing margins, including tiered pricing, unbundling rates and value-added products. And the dialogue revealed that the most important "value-added" product on the street is actually the sales professional. Various strategies for using the semi-annual association rate adjustments to increase sales activity were described. Overall, the "Field Guide for the Developing ISO" is a strong new player in the regional ISO training marketplace. A few years ago the noise "on the street" was that a lack of training opportunities and information existed for the MLS. Today, there is real competition in this arena and a plethora of events, books and Web sites available from which MLSs can choose. If you missed FGI in Chicago, another seminar will be held Nov. 3, 2004 from 12:30 - 5:00 p.m., at the Western States Acquirers' Association Inaugural Meeting at the Sir Francis Drake Hotel in San Francisco, Nov. 3 - 4. For more information, visit www.fieldguideforISOs.com . MWAA's Second Annual Conference Directly following FGI, MWAA held its second annual conference. The two-day expo and seminar set a new attendance record for regional events in the industry with 523 total attendees, including 86 vendors; it was the largest bankcard acquiring conference to-date outside ETA's Annual Meeting and Expo. This year, MWAA held its conference at Chicago's incomparable Drake Hotel, and the event was an unmistakable success. The venue, food, event orchestration and professionalism set a new benchmark for the regional acquirers' associations. MWAA's "secret weapon" was Tina Smith, a meeting planner for Carlson Wagonlit Travel/Viking Travel. "Merchant level salespeople and sales managers make it a point to come to this event because it provides them with outstanding opportunities to develop essential contacts within the ISO community, meet vendors who sell to that community, and to obtain insightful information about the ISO world beyond their own sales territories," Mark Dunn said. Beyond the tremendous networking and educational opportunities, MLS attendees also had a chance to win copies of Good Selling!SM 2 by Paul Green and one of 20 American Express Co. $500 gift cards that were given away during the event. "The gift cards are our way to recognize that MLS attendees are making sacrifices to be here," Dunn said. "Attendees receive information and build relationships that will help them throughout their careers. The gift cards enable the winners to get a more immediate benefit as well." The MWAA conference opened with a panel discussion on value-added products. The panelists were: Dale Humphries, Cignify; Patty Colby, VeriFone, Inc.; and Bob Carr, Heartland Payment Systems, Inc. These individuals offered their views on how the selling of additional products can contribute to the merchant portfolio. The opening reception in the vendor expo hall immediately followed this gathering. The MWAA event echoed the "level playing field" approach to the vendor table expo, which was pioneered by the Northeast Acquirers' Association (NEAA). This approach to the vendor displays has proven to be successful for several reasons:
Overall, the participating vendors reported that traffic to their booths and displays was better than anticipated. Even more importantly, the percentage of MLSs among the attendees was higher than at the larger, annual industry gatherings. This translates to a higher quality of prospective sales recruits for the expo participants. The only criticism of the event heard on the floor was a desire to have more time on the agenda for the sponsored expo. Day two of the conference began with an equipment panel discussion. The "usual suspects": Hypercom Corp., Ingenico, Lipman USA and VeriFone, each touted their latest product improvements. "Multi-app," "triple-DES," "IP" and "certification" were the buzzwords here, and the uniformity of the presentations was their most striking feature. Other presentations at the MWAA conference were:
The concluding informational session was the MWAA "Vision Panel." This year's panelists were: Corey Saftler, Integrated Leasing Corp.; Randy Sagar, National Processing Co.; John Rante; Kurt Strawhecker; and Ed Freedman. This panel gave voice to one of the most talked about, "hot button" issues in the industry at this time: education and certification of the MLS. Saftler opened the discussion with an impassioned plea for education and certification. The other members of the panel echoed this need. Sagar called on each ISO to become responsible for "certifying" its sales team. He further emphasized the responsibility of each individual in the industry to act with integrity and honesty. Rante shared his experience selling on the street using the "Brian Tracy" technique, which he paraphrased, "I LOVE this guy!" He stressed that by approaching each sale with the attitude of "I love this guy" will lead directly to respecting the merchant. With "love" and respect comes integrity and honesty in the negotiation. Strawhecker voiced the negative side of certification: the "bad guy" list. To date, no group or association in the industry has been willing or able to publish such a list because of the legal liability involved in such an undertaking.Strawhecker emphasized two significant points that our industry must address as this discussion unfolds:
He detailed the various forms of credentialing available to businesses, which range from the most restrictive to the least challenging:
Strawhecker also pointed out that with any type of certification comes the necessity of a "de-certification" process. The industry must decide what the consequences are for a lack of or revocation of the certification. Freedman closed the panel presentation by recognizing that the image of the MLS has significantly improved during the last decade. The bankcard associations, vendors and ETA have all embraced the MLS as a valued participant in the marketplace. Freedman echoed Sagar and Strawhecker saying that ISOs must be responsible for training and certification. However, individual MLSs are ultimately responsible for their personal integrity and business ethics. The panel ended with a statement that the discussion was far from over. Our industry must find a way to successfully regulate itself in order to avoid outside regulation being imposed upon it by the state and federal governments. MWAA Presents Lifetime Achievement Award The MWAA closed with its second annual award presentation, naming Paul H. Green, Chairman and Editor in Chief of The Green Sheet, Inc. as the winner of the association's Lifetime Achievement Award. Caroline Marino of Ingenico USA and Vice President of MWAA, and Bob Carr presented the award to Paul, who was greeted with a standing ovation. "I had been in the acquiring industry for 22 years. I had left the industry a few years ago; when I came back in, there was a publication, The Green Sheet, that had quickly become the most popular publication in the industry," Marino said. "The Green Sheet is absolutely the top industry publication; it's created a forum for the person on street." Paul's remarks appeared as the lead story in the Aug. 9, 2004 issue of The Green Sheet: "More Than 26 Years in Payment Processing and a Lifetime of Achievement," (issue 04:08:01) and are also posted on GS Online. Plenty of Events Available for the MLS There are now 10 regional annual conferences that target the MLS: ETA sponsors five of them, and the various regional acquirers' associations produce the other five. Additionally, ETA holds its Annual Meeting and Expo every spring in Las Vegas and its Strategic Leadership and Networking Forum (SLNF) in the fall. These 12 events call upon the same, finite group of industry vendors for sponsorship and participation; and all except ETA's SLNF aim to provide MLS recruiting opportunities. The Green Sheet, Inc. is a media sponsor for all of these events. A "turf war" is brewing between the regional associations, ETA, and the industry's independent training initiatives. The Green Sheet, Inc., its publications and staff, steadfastly remain a neutral party: the "Switzerland" of our industry. We believe that the market will determine which of these events will prosper to the betterment of the MLS. |
 |
 |
 |
© 2004, The Green Sheet, Inc. |
hicago, also known as the City of Broad Shoulders and the City That Works, is where many different levels of payments professionals gathered July 28 - 30, 2004 to attend the second annual Midwest Acquirers' Association (MWAA) conference and a new seminar for the ISO/merchant level salesperson (MLS) community called "Field Guide for the Developing ISO."