When the competition's face is familiar

If there was a Selling Merchant Services for Dummies book, what would the first chapter be? I suggest "Pick a Super ISO That Does Not Compete with You." Too many MLSs [merchant level salespeople] have found that their biggest competitor is their super ISO partner.

Imagine if your favorite sports team's best player came on the field wearing another team's uniform. Instead of scoring for you, they score the winning points for someone else. This may sound funny, but unfortunately this is happening every day in our industry.

All one needs to do is go to their super ISO's Web site or www.google.com and type in "merchant account." It is a real eye opener what big-name super ISOs you will see [advertising] free terminals and 1.39% rates. No one can ask a super ISO not to have a Web site, but I think any reasonable person would agree that posting rates is going one step too far.

Why is this bad for you as MLSs?

[Super ISOs] are taking deals out of hardworking MLSs' hands. Who can put a number on just how many merchants are going directly to super ISO sites and signing up? These are good, profitable merchants in your very own backyard who may have called you. But when they search your super ISO's Web site, they very possibly may go ahead and sign directly with them.

MLSs also face the risk of merchants going to the super ISO's Web site [right] after their sales calls with MLSs. Imagine the feeling of the merchant (who was just about to sign with you) when they see the very same company you just gave them a card for, advertising rates possibly well below the rates you just quoted them.

This does not go a long way toward building a relationship. And in many cases, it can cause a merchant's trust in the MLS to evaporate.

This is the worst of all: Imagine your pre-existing merchants going to your super ISO's Web site and viewing those rates. At that point, what choice do you have? Your super ISO has now cut your profits, since your merchants will now insist on the rate that is on the site.

I have always felt that any super ISO that competes with its own MLSs is only competing with its own profit margins. The true backbone of any super ISO is its street-level MLSs.

Maxwell Sinovoi
National Sales Manager - Western Region
United Bank Card Inc.

Call us, write us

Did you like (or dislike) a recent article or issue of The Green Sheet or GSQ? Do you have a story idea? Send your questions, comments and feedback to greensheet@greensheet.com.