We are hearing from a number of ISOs who are concerned about Discover's actions in the marketplace. Some ISOs believe that what was previously a cold war is now outright hostility towards ISOs. In addition to complaints that booking a Discover deal is too difficult for the benefits gained, we have also received complaints that Discover personnel have actually sold Visa/MasterCard services after the fact, taking the business from the ISO (see sidebars in issues 97:12:01 and 98:02:01). While these concerns have been voiced and we have printed two letters to the editor on the subject, the writers have wished to remain anonymous.
But, as the problem seems to be growing, some individuals and organizations are now stepping forward to be quoted on the record. For example, Bob Carr of Heartland Card Services has gone on the record stating,
"Discover appears to have taken a predatory position in our industry. Their contempt and outright hostility towards ISOs appears to have become corporate policy for Discover. We are recommending to our ISOs that they begin to emphasize the disadvantages of Discover rather than encouraging merchants to take Discover. Discover is biting the hands that are feeding them. It is bad enough that ISOs aren't paid for their hard work on behalf of Discover. It is even worse for Discover to take merchants away from ISOs as the hyena steals the prey of the preoccupied lion. American Express became enlightened a number of years ago and created their ESA program. Discover needs to do the same or an ISO boycott of Discover will surely come. ISOs are fed up and aren't going to take it anymore."
Of all the reports The Green Sheet, Inc., has received, the following is the most compelling: At a recent meeting of ISOs in the Midwest, attendees were asked if they were in favor of a boycott. By a show of hands, the vote was 100% yes. In this particular case, the discussion surrounded whether Discover would begin an American Express ESA-type program, if they realized ISOs were not going to be abused any longer. (In other words, if you had any chance of your bankcard deal being unraveled, why would you ever pass a lead to another Discover representative?)
We want to know what you think, please call The Green Sheet at (800) 757-4441, or E-mail us at greensheet@greensheet.com, or send a fax to (707)586-1738. You do have a voice, so please let us hear from you.
