In issue 98:06:02 ("Discover Hostile to ISOs?") we asked our readers to give us their input/comments on Discover. WOW! Did we get an earful! Following are some comments we've received so far:
To: greensheet@greensheet.com,
In response to your Discover article, the only way to accommodate a customer when they want Discover is to handle the referral after MC/Visa is installed, not prior.
This organization has been doing that for years and as a matter of fact, has received all of their promo material (stickers, etc.) from Discover without charge for passing the lead.
Still believe an ESA program type would be better...
Merchant Bankcard Services , Royal Palm Beach, Fla.
To: Greensht,
Thank you for your article "Discover Hostile to ISOs?" We would like to formally throw our hats in the ring and join your boycott of Discover.
Last year I called the corporate headquarters for Discover and asked if they would install a toll- free line so that we could fax new merchants to them and eliminate our telephone charges as they related to merchant acquisition for Discover. At the time we were sending slightly more than 100 merchants per month to Discover. As you know, we are not compensated in any way for our efforts on behalf of Discover. The conversation ended with the person from Discover actually laughing at the absurdity of my request and informing me that due to the marketing strength and brand awareness of the Discover Card we would be forced by the merchants to continue to set up Discover even if it was at our expense.
We as a company decided to continue to absorb the expense associated with Discover set-ups because we did not want to inhibit merchants from having access to all of the available branded cards. This continued until it came to our attention that Discover reps had tried to move our merchants to the Novus system. We have absolute proof in two cases and suspect that there have been more.
Our policy is now to do everything possible to assure the customer that Discover is a very small player relative to Visa/MasterCard, AMEX, ATM/Debit and Checks and that the additional costs associated with accepting Discover will not justify over time. I have spoken to other groups and the same feelings exist there as well.
You have hit a very sore nerve with this article and maybe Discover will take notice and realize that the future of their card acceptance in the marketplace is in the hands of groups like us.
Keep up the good work.
Steve Roderick, President, Merchant Card Services, Inc.
To: Greensht,
I have been disenchanted with Discover's modus operandi for several years. In recent months they have begun selling MC/Visa processing along with equipment . . . thus presenting themselves as direct competitors. I have urged all of our sales people to negatively sell Discover whenever the prospective merchant inquires. If the merchant's SIC fits one of Sears items I intimate that their customers may be co-opted in a future retail promotion by the retail giant because of their database access to the merchant's retail sales vis-a-vis Discover. If that is not sufficient to scare the merchant and they still insist on accepting Discover I fax the request directly to Discover thereby depriving their predatory local rep from meeting their quota.
To: Mr. Paul Green,
We have long considered Discover a competitor in our marketplace. For years Discover has attempted to steal our merchants and undercut our rates in competitive situations. It is for this reason that we refuse to give out the Discover phone number to merchants interested in accepting the Discover Card (we tell the merchants we don't have the number). Additionally, we make sure our system is installed and finalized before even discussing Discover, for obvious reasons.
A few years ago, we attempted to form a working relationship with two of the local Discover reps. We had lunch with them and agreed to refer each other and swap leads. We found out that the same day we had the lunch meeting, another Discover Rep was out stealing a seven-location restaurant chain from us! That kind of said it all!
Martin Blank & Michael Rothman
To: The Green Sheet,
I am writing regarding your June 15 issue, the article on Discover.
We issued a company-wide memo this week stating that effective immediately, United Merchant Services of California Inc., will no longer set up Discover merchants.
The article you wrote was what we have found to be true with Discover. We have given Discover thousands of merchants over the years and I ask WHAT FOR?
Well, no more from this ISO.
If all ISOs stopped promoting Discover, Discover might wake up to our industry.
Lynda Neuman, Senior Vice President Operations/CFO, United Merchant Services
Dear Paul,
I thought I was the only one who had been burnt by a Discover Rep. I used to give her five new accounts per week. Knowing they have a monthly quota. I thought she would be happy with the free biz. I was burned by her twice. That was five years ago. I wonder if she has any idea how much she has lost. Thanks for the truth.
Mark Preece, ACM/Heartland Card Services
Dear Paul,
A good review on Discover. I have lost four accounts because of just the way you explained it in your article.
At this point, I completely stopped talking or doing anything for them. They can take a flying leap. They are going to have to do a lot before I will ever promote them again.
So you know how I feel. Thanks for the article,
Robert Bock, American Services
