nlike some of her peers, Kathy Harper, Director for the Georgia office of Merchants' TPS LLC, has not been in the payments industry for decades. It's the quality rather than the quantity of her time in this sphere that makes her a standout.

Harper credits her brother for introducing her to the world of financial services. "He clued me in to the term residuals. That was in 2003, and I've never looked back," she said.

Since then, she has been a champion of the ISO channel, striving to make our industry a better place for merchant level salespeople (MLSs), ISOs and merchants alike.

Harper is active in the National Association of Payment Professionals (NAOPP), having been a member for more than three years. She has served as the association's President in addition to Secretary and Vice President.

While such a commitment requires a huge investment of time, Harper believes it is a worthwhile use of her resources. NAOPP is a nonprofit organization working to bridge the gap between MLSs and other segments of our industry through education.

"It has been a very rewarding experience. I encourage all MLSs to join NAOPP and get involved in the industry," she said. "ISOs, vendors and processors can benefit by showing their support for an association built for and by the MLS."

Strolling in merchant shoes

Before becoming an MLS and industry advocate, Harper owned and operated several small businesses. She was a painting contractor, an antiques mall operator and, for many years, a member of the restaurant industry.

When she decided to become an MLS, she immediately drew on what she knew: The first merchant she signed was an antiques dealer. Her professional experiences gave her intimate knowledge of the challenges her merchant customers face daily.

Like many MLSs, Harper had a bumpy start. She encountered some dishonest folks but was not dissuaded. She learned from her experiences and found knowledgeable, ethical mentors who were generous with their time. One of them was Neil Mink.

"I was lucky to have a mentor early on in my career," Harper said. "Neil Mink answered endless questions about the industry that I was too embarrassed to ask my ISO or post in The Green Sheet Forum [GS Online MLS Forum]." Harper also found others who were instrumental in helping her realize success.

"I partnered with some really good ISOs who ... put up with me while I found my feet," she said. "Bill Paul of Merchants' TPS has taken over where Neil left off and has been an inspiration, as well as a friend and mentor.

"Vicki Daughdrill of Small Business Resources and Kathy Monroe, CEO of CybrCollect, help to keep me grounded and have been excellent sounding boards for new ideas.

"I also keep in close contact with several agents I've met at conferences and via The Green Sheet [Forum]. It's great to be able to swap stories and compare notes with other people who understand our industry."

Aiming for the sky

Morality and ethics are paramount to Harper - professionally and personally. "I always try to treat my clients like I would want to be treated," she said. "I feel that it would be better to make less money or even lose a deal than compromise my values."

This doesn't mean she lacks motivation; she believes in setting goals. "There's something about actually making the list that helps crystallize those goals," she said. "Once the list is made, I can't wait to get to the finish line and check each one off."

Harper's immediate goal is to double her company's portfolio of Curves International Inc. fitness centers. Curves selected Merchants' TPS as its preferred processing partner for Deposit Express, which is CybrCollect Inc.'s electronic check offering. CybrCollect is a provider of check collection services.

It was a coup for Harper to land the account. She bested some impressive competitors to become Curve's preferred processor. "Curves clubs are one of our main clients. I've really enjoyed working with them, as the vast majority [are] female business owners like myself," she said.

Another goal is to find more high-quality employees who can handle the routine stress of being an MLS and devote time to learning the ropes.

"Finding people who possess all the traits necessary to excel in this industry can be a challenge," she said. Harper also wants to move her operations to larger quarters, something she expects she and her colleagues will accomplish soon.

Being informed and astute

Harper encourages other MLSs and ISOs to read The Green Sheet, attend every industry conference they can and support NAOPP.

"This industry moves at breakneck speed, and it's not enough to just work it," she said. "You have to be able to look ahead and plan for the inevitable changes. Don't allow yourself to become overwhelmed by it. Listen to all the advice you're given, and then make your own decisions."

She also stressed the importance of conducting oneself with ethics and respect. "One of the most valuable lessons I learned from Neil is what a small industry this really is," she recalled. "You never know who you'll end up working with, so you'd better be nice and play fair."

Harper thinks our industry is lacking in its educational efforts for all parties: merchants, ISOs and agents. She is concerned that when agents are not trained or treated fairly, poor service ensues.

She cited greenhorn agents, for example, who sign merchants with one ISO, initially, but then learn they could receive residuals if they worked with a different ISO. The agents switch companies, and the merchants never see those agents again.

Harper said her business is faced daily with the consequences of uninformed clients. "Merchants are bombarded with offers to lower their costs and are sometimes given misleading or even false information," she said.

"While education alone will not stop this from happening, it is definitely a step in the right direction."

Through her involvement in NAOPP, Harper is working to improve the situation. She also hopes NAOPP and the Electronic Transactions Association can combine forces to provide additional training opportunities.

Harper would like to see the day when agents are required to pass an industry exam before they are permitted to offer credit card processing services. She also said card Association recognition of MLSs would benefit the industry as a whole and MLSs in particular.

"Acknowledgement by Visa/MasterCard would be nice, as would some sort of annual fee to the agent or office," she said. "Once the MLS is a recognized entity, it may also help to prevent residuals from being unfairly terminated."

Harper believes these steps would create more trust for merchants and allow well-educated MLSs to succeed in an environment that is often stacked against them.

Staying competitive and compliant

As a member of NAOPP and a working ISO, Harper has observed the widening gap between ISOs and MLSs.

"There don't seem to be as many ISOs out there that are small enough for an agent or office to actually speak to on the phone," she said. "I've noticed a trend in agents moving to small and medium-sized ISOs in order to get the support they need."

Harper has observed many ISOs and MLSs increasing their suite of product offerings to attract more merchants. "Some have even changed the way they market, leading in with gift cards or cash advance instead of processing," she said.

She has also noticed ISOs bringing sales in-house. "While I see this trend continuing, I feel strongly that the need for agents and small offices will not diminish," she said. "A portfolio that was signed by someone face to face will always be more valuable than one signed over the phone."

Since compliance issues affect every level of the industry, Harper believes it is imperative that agents be up-to-date on the industry's technological advancements and compliance requirements.

"It's easy to have a Web site and business cards that are compliant [but] not so easy to ensure that all your merchants are PCI-data-compliant," she said. Harper suggested savvy agents turn compliance with the Payment Card Industry Data Security Standard into a selling tool.

She noted that POS system vendors have become a hot topic because they can circumvent the MLS channel by encouraging merchants to use their referral partners for credit card processing. She is currently involved in developing a new product that she feels has the capacity to solve the POS dilemma for much of the industry.

She was not able to disclose details but said it "has the potential to become a changing force in how we market to our clients. This is the type of activity that keeps me going. I enjoy working with companies that push the envelope to create better solutions for our clients."

We'll just have to wait to see what she has in store.