Welcome to our new blog. I had previously been testing the idea of using our Facebook account as a medium for driving blogs using their "notes" page and using the "wall" as the vehicle for notification. But I was not entirely satisfied with the results and opted instead to jump in the river with the rest and float in the bigger current. So if this blog looks like it just picked up and started out of no where...well, it sorta did. But not really. Kinda. Anyway. Read on and as the news happens I'll put it here. My ambition is to steer away from the trend and really call out some of the issues I see in regards to our little microchasm in this massive industry of madness.
Onto business...
ISO's...question for you; is your processor looking out for you? Is your processor meeting the needs of the MLS? This is not a loaded question that is about to dive into a marketing pitch. Not entirely anyway. But it leads to this question..."what is the root goal of the processor?"
The answer is: "to secure merchant accounts."
Keep that in mind. "To secure merchant accounts." That little ID number is the gateway to their income. They ride that income like the tide and it is measured directly against the health of the nation's economy. More than any peripheral side plate item on their menu they sell...the pre-transaction based income is their king.
And likewise, it is part of your path to the money as well. Probably the largest part of your income as an ISO.
However, as an ISO you have much to do in order to get that magic little merchant account number. You have to out-serve your opponent. Carry better tools. Be there for them in person, on the phone, on the email...everywhere, all the time. And as an ISO, your part of the food chain is obviously diminished. In other words, your commissions, strong as they may be on residuals, are probably not your only source of income.
Remember the boom of "free terminals?" I'm talking about the free hardware terminals that the processors would "give away" as bait to attract merchants. It's like when banks starting "giving away" free checking accounts or free ATM fees (if you used their bank), etc. etc.
Banks and processors will give away the front door if it means keeping a firm grasp on that merchant account number.
This does not necessarily help the ISO.
Why? How?
Well - for example, as an ISO if you "give away" a terminal (be it a physical terminal or virtual software terminal) then it's obvious that you are not making any money on that terminal. Oh, and by the way - you are going to be expected to service, support, set up and be there for that terminal. The one you did not make any money selling in the first place.
That free terminal was good for the processor, but not so good for you.
So what we see happening is that the 500lb processors are continually building these homogenized meglo-tool-boxes of free lures, baits and services that they in turn expect you to give away to the merchants in order to win their love. But those free tools do not increase the merchant sales...and the processor is not really sharing the micro-increases in costs they are burying into the formula. And at the end of the day, you are losing income for doing the same amount and more of footwork.
As an ISO, your interest is your customer's satisfaction. Look around at the types of tools and resources you have available to you. Look at how they serve the needs of your merchant and look at how they can contribute to the successful profitability of your sales organization.
