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Education

application and so on. If that did not make it bad enough, also be getting in the pockets of the terminal makers such
then Square started to offer other services such as cash as Verifone and Ingenico.
advances, POS system, faster funding, etc.
Everyone needs to wake up and see Square for what it
Not to make myself look smart, but before Square came is: a well-oiled machine that is a highly funded, major
along, I told those in my company that I wanted to start marketer of products and services. It's selling the same
offering effective rate pricing. I wanted to take six months products and services that we also offer – but doing it a
of the merchant's statements, determine the effective rate whole lot better.
on each one, add them together divide by six, and that
would be the average effective rate.
Steve Norell is director of sales at US Merchant Services Inc. Based in Port
For example, the average effective rate was 2.59 percent. St. Lucie, Fla., he oversees the USMS sales force and maintains the com-
We would lower it to 2.55 percent, which represented a pany's bank and processor relationships. You can reach him by email at
savings, but we would still make a solid profit. So now steven@usmsllc.com or by phone at 772-220-7515.
the merchant only sees one rate times his or her total
monthly volume. Simple, right? I would have thought so,
but instead of getting more merchants, I was accused of
pricing too high or I was told that they could get a 1.69
percent rate.

The problem was that merchants could not quite Industry Show:
understand what I was trying to convey, and all they saw
was the qualified rate of 1.69 percent. They never looked Northeast Acquirers Association
at the mids, nons, batch, etc. Then came Jack Dorsey and
Square at 2.75 percent, and today he looks like a genius. NEAA 2019
Highlights: Join hundreds of payment profes-
So, after all this ranting on my part and a trip down memory sionals in Newark as the NEAA celebrates 34
lane, what have I learned from Square. The answer? A lot. years of success in educating all distribution
The ability to offer a flat rate and no other fees is what we channels in electronic payments. The NEAA was
need to be offering to compete with Square or any other the first regional acquirers association to form,
competitor. Merchants all want simplicity, and the ability and it has consistently provided information and
to understand their statements is more important and inspiration to ISOs and merchant level salespeo-
appealing to them than how much you can save them. ple throughout the payments industry.
Over 80 exhibitors are expected to be on hand to
Every MLS should be not just asking but demanding their promote the latest POS hardware and software
ISOs offer a flat rate pricing option where interchange and technology, ecommerce and mobile commerce
dues are built into the flat rate. I know that many MLSs solutions, alternative financing products, and
manipulate the tiered pricing to offer a hybrid flat rate, but other services that support the industry.
most ISOs will not include the dues in the tier and use it When: Jan. 16 – 17, 2019
instead as an additional line item fee. Where: Newark Liberty International Airport
Marriott, 1 Hotel Road, Newark, NJ
With very few exceptions and if done right, flat rate pricing Registration: https://northeastacquirers.com/neaa-
will produce greater profit and revenue than any other 2019/
pricing model available today. You just have to know what
the flat rate needs to be based on a merchant's average Next Up and Coming Industry Show:
ticket and transaction volume. Southeast Acquirers Association

I want to offer up a challenge to all processors and ISOs SEAA 2019
and plead with them to stop offering the same old pricing
models and boarding methods, and get off your butts and Highlights: Two - day conference focused on
give MLSs the tools they need to succeed. Clearly Square providing training, education and networking
figured this out and is no longer signing the merchants we opportunities to the technology, financial and
never wanted. Square is in our pockets and picking them ISO/MLS community.
clean. When: March 25 – 27, 2019
Where: Loews Atlanta Hotel, 1065 Peachtree
Let me leave you with this thought. Square just revealed it Street NE, Atlanta
is coming out with its own tabletop terminal, so now the Registration: http://www.southeastacquirers.com/
company is not only competing for the processing, it will registration.html

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