very new year brings ideas and plans for change and growth. Last year was filled with ongoing discussions about a new and improved strategy for merchant level salespeople (MLSs). The overall message: As an MLS, in order to differentiate yourself from the competition and better retain merchants, look beyond credit card processing to offer value-added solutions. To expand your merchant portfolio, target merchants beyond the traditional retail store and tailor offerings specifically for those merchants.

It's only the first month of 2005, but it's time to put what you've learned to good use. Your ISO partners certainly are. They've already introduced many exciting new programs to add value to you and your merchant customers, and more are on the way.

ISOs' offerings range from unique ways to sell value-added solutions, to helping you better your own business through Web-based reporting for improving customer service and free equipment for increasing your bottom line.

There are many potential partners to choose from, so if you're an MLS, make sure that you find the right company and program to fit your needs. Because we are limited on space, following are only a few examples of what ISOs have planned in 2005.

Opportunities in the Medical Market

Coach Ron Tunick, President of Newbury Park, Ca.-based Cornerstone Pacific Inc., the West Coast representative of Cornerstone Payment Solutions, has a new company name and a new initiative.

Tunick now calls his company Nations Transaction Services (NTS). With his new program, he's bringing pharmacies to doctor's offices. Intrigued? Tunick has partnered with Nations Pharmaceuticals.com to supply doctor's offices, physicians and clinics with an on-site pre-packaged generic medication dispensing program.

"With 22 years in the business, I'm always looking for products to get sales reps in the door," Tunick said. NTS rolled out the program in late 2004. Tunick said he already has 22 state managers and over a 130 reps in place for this program. "We can't train people fast enough," he said.

Through the program, doctors receive software for their computer, generic pre-packaged medicine, a dispenser cabinet, bar code reader, labels, even the merchant account, at zero cost to the doctors. They can accept cash, checks or credit cards and payments are processed through the Transaction Central payment gateway. Tunick said doctors can earn $5 - $25 per prescription through a co-pay, and MLSs can earn $0.75 - $1.00 per prescription.

As part of its Payment Solution Provider program enhancements for MLSs, Charge Card Systems will offer a new health care benefit verification service, called SPOTCHECK, which is an add-on product to the VeriFone Omni 3750 POS terminal. The service provides electronic authorization for healthcare and insurance benefits as well as bankcards, all on the same terminal. For information about additional opportunities in the medical market, see "New Technologies Opening Unexpected Doors" on page 1 of this issue.

There's Value in It

Through a strategic partnership with IRN, Payment Option Solutions LLC has developed a check processing solution called Paid On Signing (POS), where it provides check programs for specific types of merchants. (i.e. supermarkets) and will base pricing for merchants on a transaction basis.

When a merchant runs a check through an electronic check reader, if the DDA account is drawn on a member bank, then the transaction is sent to the Visa EFT Network. If it's a non-participating account, the transaction is converted to an ACH conversion after verification.

The check writer's account is accessed, and if funds are available, they are captured. If not, the transaction is denied. POS settles with the merchant for the day's check debits and approved ACH transactions.

Landmark Merchant Solutions is providing something unique that almost any merchant would value, whether it's a traditional brick-and-mortar or online business: a free 15-page Web site custom-designed and built by Landmark and delivered within 10 days.

The company will also host and support the Web site, which includes a shopping cart, domain name and up to five business e-mail accounts, also at no charge.

"Because of the Web site, merchants view Landmark as more than just a credit card processing service," said Alan Gitles, Landmark's Chief Executive Officer. "They see us as an indispensable marketing vehicle, which not only increases their sales ... but actually drives traffic to their physical and virtual storefronts.

The Web Works

More and more ISOs, lured by the Web's real time and "always on" capabilities, are moving many of their standard processes, from reporting to merchant application submissions, to the Internet. This way, both their merchant and MLS customers have convenient access to the most up-to-date information about their business.

As part of its Agent Services program, North American Bancard (NAB) recently launched a new online merchant application system called ELAP. It enables NAB's MLS partners to enter merchant information, set pricing and equipment deployment preferences and submit the application all from a link in NAB's agent info center.

"Once the application has been submitted, the download will be built and e-mailed within minutes; the equipment will be prepared for deployment; and the merchant will be 'boarded' and ready for processing," said Marc Gardner, NAB's President. "Now you can get your accounts up and ready to process within one hour of submission."

Nationwide Payment Solutions LLC (NPS) created a Web-based reporting platform based on direct feedback from its salespeople. The merchant version has settlement reporting including next day interchange qualifications of all transactions, transaction details (truncated), batch information and the ability to view activity for multiple terminals as well as multi-locations.

The agent version offers a view of transaction activity details, including interchange qualifications, rates and merchant billing statements, merchant set-up information, account status and real-time help desk call notations. Agents can also track residual activity down to the penny. "When we started this venture, one of our goals was to create a company where salespeople would benefit from evolving technology," said Jamie Nonni, Chief Operations Manager for NPS. "[We did this] by asking salespeople their opinions on how to design a system that would improve the way in which they did business. The end result is our new reporting system."

Merchant Services Inc. (MSI) now offers a Web-based application that not only provides the latest information on the merchant application, but it also interacts with MSI's database to provide speed, accuracy and account approval; it creates applications ready for download with "auto build" instructions in less than four hours.

The site provides access to information on the merchant application from the time it's submitted to delivery, MID numbers for Visa, MasterCard, American Express and Discover, approval times, TID numbers, download numbers and shipping and tracking information.

MSI provides merchants and its agent partners with interactive information such as online access to batches, statements, FAQs on statements and fees, Quick Reference Guides, and information on terminal support such as for programming.

MSI also announced it is one of the first ISOs to certify and launch Ethernet-based payments with the VeriFone Omni 3750 Internet Protocol-based POS terminal.

Charge Card Systems said it also has an interactive Web site it's getting ready to rollout. The systems includes a complete CRM solution as well as merchant account application entry, equipment ordering, online status reporting, agent e-mail and online commission and residual reporting for all of its payment services.

Managing Customer Relationships

ISOs are always looking for better and more efficient ways to keep track of customer service calls in order to provide the best service possible for their merchant customers and their agent partners.

Cynergy Data developed its own in-house "ticketing" system it calls TrackIt, which monitors incoming questions and issues from the point of call through resolution. By maintaining a "ticket" on each call that cannot be resolved immediately, TrackIt provides staff with access to real-time information about the caller and their issue. The system automatically escalates calls to the staff person best equipped to handle the issue and also assigns a resolution deadline.

"Recognizing that, at the end of the day, customer service adds far more value than tangibles like product and price, Cynergy Data continues to invest in those areas and maintains an industry leadership position in providing legitimate support to our ISOs and their merchants," said Nancy Drexler, Marketing Director for Cynergy Data.

This year Total Merchant Services (TMS) is introducing a new approach to working with its MLS partners. The company has created what it calls a "Special Forces Work Group," which is a branch of professional, well-trained relationship managers dedicated to working solely with sales agents.

Ed Freedman, TMS' founder, President and CEO said members of this group are available to provide MLSs with personal attention in any situation: from the application process, risk management, downloading programs to addressing commission issues.

"Total Merchant Services' Special Forces Work Group is at the ready to give personal partnership training and ensure that it gets done exactly the way MLSs want, including how they prefer their download programs built, what terminals they're selling and how they want deployment of terminal equipment, PIN pads and more," Freedman said.

Free Equipment to Boost

Perhaps one of the most talked about new initiatives introduced to the industry is United Bank Card Inc.'s (UBC) free credit card terminal offering. As of Jan. 18, 2005, the topic had more than 2,000 posts on GS Online's MLS Forum; Ed Freedman also addresses the offering in "Street Smarts" ("Free Lunch?" on page 78) in this issue of The Green Sheet.

As part of its new program UBC now provides Lipman NURIT 8320 terminals free of charge to its ISOs/MLSs, who can then turn around and offer the product free of charge to their prospects.

"We're the first processing organization to go nationwide with a free equipment program," said Jared Isaacman, UBC's CEO. "All of our ISO/MLS partners now have the ability to sell two to three times the number of merchants, thereby increasing their overall portfolio dramatically."

Isaacman said UBC's program is very similar to one offered by a cable TV company or wireless cell phone company in that the "box" is free in exchange for the service. He also said there are no hidden fees or long-term contracts as part of the deal.

UBC will pay ISOs/MLSs an additional $100 up-front bonus per merchant application to counteract the loss resulting from giving away the terminals, which ISOs/MLSs usually sell or lease to merchants.

In addition, UBC has built and launched the first nationwide signature capture network. This technology, Isaacman said, had only existed on a custom basis for the large multi-location retailers such as Macy's or Best Buy.

UBC developed the network to give smaller, single location merchants the benefits (such as online receipt storage and automated responses for chargebacks and retrievals) of using signature capture. The signature capture pad comes free with the service and works in conjunction with the free equipment program. The devices work with Lipman's family of terminals.

"I believe signature capture will replace the debit PIN pad as the new 'lead-in' sales product for 2005," Isaacman said. "The cost is minimal, the benefits are dramatic, and existing merchants and MLSs will embrace it."