Dear Paul:
Have followed with interest your articles and reader comments about Discover's hostility to ISOs. I've been in the biz for some time now and, yes, it's all true... Hostile attitude, steal leads, pirate merchants, need ESA program, blah, blah, blah. Nothing new here; it's been the same story for years.
Yes, we ISOs are frustrated that this unfair situation exists. Obviously, our anger is directed at Discover for being the parasites that they are. Guess what? We're missing the point entirely. We, the ISO community, are as much to blame as Discover, if not more so. WE are to blame for permitting Discover to do this to us and, in effect, encouraging it. It takes two to tango. They could not do it to us if we didn't let them! All Discover is guilty of is accepting what we stupidly give them on a silver platter.
We have the advantage in numbers and muscle over Novus in every category imaginable. . . merchant locations, cardholders, ISO offices, reps, merchant demand, consumer demand, you name it. So, why do we permit this puny, insignificant pest to remain under our skin for so many years? Because we're not smart enough, not ORGANIZED enough, to utilize the overwhelming advantages we enjoy; that's why! We are our own worst enemy.
Here's a great example that's happened far too many times: I try to avoid offering Discover services while setting up V/MC, and to discourage Discover acceptance by the merchant. Invariably, what happens is an ISO competitor comes in and tries to use this as competitive leverage to win over the account, i.e. "He's not a full service provider, but we are. . .we can set you up with everybody, including Discover, which he can't." So I have no alternative but to cave in and include Discover setup with the deal. Exactly what the enemy wants and counts on! Discover wins again and we, as an industry, continue to lose as a direct result of being our own worst enemy.
Here's another misdirected issue: We all talk about boycotting Discover, refusing to sell it, etc. Great. Why don't we instead talk about going directly to the source of the problem and boycotting those who do business with, and support, Discover at our expense while simultaneously doing business with us and pretending to be our allies?
1. The agent banks that provide V/MC processing for Discover.
2. The networks that permit Novus to process V/MC.
3. The software and hardware venders who make available to Novus the tools they use to plunder us with.
These are the people directly responsible for the unleveled playing field that permits Discover to sell our products while we can't sell theirs. These are the people we should be going after. When given the choice of what team do you want to play for, V/MC or Discover, but not both, these folks will quickly realize who their real benefactor is.
So, that's the way it is, ISOs. We have two choices: We can continue to moan and groan, but not much else. Or, ALL of us (not just SOME of us; that won't work) can find a way to get on the same page and effectively do something about this problem. Any leaders out there with suggestions or ideas?
Signed,
BG
BG:
Very nice letter; you raise some excellent points. Watch for your letter in an upcoming Green Sheet.
Good Selling!
Paul H. Green, Editor-in-Chief
Dear Mr. Green,
I am doing some research and would like to know where I might be able to find or purchase a listing of the ISOs in the U.S. and which credit card processor(s) they utilize, i.e. First Data, Vital, Paymentech, etc.). Is there such a report on this?
I'd appreciate any information or referral you may be able to provide.
Thank you,
Steven Jung
Multimedia Systems & Applications, Inc.
Dear Steven:
To my knowledge no such information has been published or is available. It is for this reason that we are working on our fourth GSQ magazine that will address this subject. Look for the November issue of GSQ:The Payment Systems Quarterly.
Good Selling!
Paul H. Green
Editor-in-Chief
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