How much can ISOs and merchant level salespeople (MLSs) expect to earn when they promote value-added products that help merchants prosper? Tranzlogic LLC claims its payments-oriented data, analytics and customer engagement tools can boost margins on merchant accounts by 30 to 50 percent.
Business owners willingly pay that premium because the company uses big data to help them identify and stay in contact with their best customers, said Charles Hogan, co-founder and Chief Executive Officer of Westlake Village, Calif.-based Tranzlogic. It's a matter of providing small and midsize merchants the sophisticated powers that the big guys employ, he stated.
So far, approximately 50,000 merchants nationwide are getting to know their shoppers through the service, and that number will double in the next year, Hogan predicted. Such prodigious growth means opportunities for resellers, he added.
Shoppers don't have to sign up for loyalty programs to get into the loop of a merchant's communications, Hogan pointed out. Tranzlogic automatically captures the clientele's names, addresses and habits, enabling merchants to reach their best customers with emails, text messages and postcards, while also targeting them with Internet advertising, he said.
In addition to helping to refine marketing and growth plans, the product can assist in healing wounds a company suffers when its affairs go awry, Hogan stated. Take the example he provided of a Florida business that experienced a 20 percent decline in sales over a six-month period because management had made serious mistakes.
Tranzlogic helped that company send apologies to alienated shoppers and provide "welcome back" coupons to entice them into the stores, Hogan said. At the same time, the company added to its customer base by expanding the marketing push to include potential customers with characteristics matching those of its best, lapsed customers.
Tranzlogic uses wholesale and retail approaches. First the company compiles information from payment transactions through integrations with larger ISOs, acquirers, gateways and POS companies. In its wholesale approach, the company sells the data back to those same entities, and they can mark it up and make it available to merchants. Information is gathered in the same way for the retail approach, but agents and smaller ISOs market a Tranzlogic-branded version to merchants. Resellers receive either residuals or an upfront payment. Merchants pay for the service in various ways determined by the companies that sell it, Hogan noted. "There are a number of flavors in the market – as you can imagine," he said, adding that resellers most often charge merchants a licensing fee of about $30 per month for each merchant identification number.
Tranzlogic entered the market in earnest in 2013, Hogan said. He foresees change in his company and the industry overall. "We are looking for additional ISOs and acquirers, although we've penetrated that market deeply," he said. "We're beginning to expand beyond that to focus on point of sale companies, gateways, VARs – even loyalty companies because we're complementary to traditional loyalty." Meanwhile, some payment companies have become more tech-savvy in the last three to five years; others continue to lag, Hogan stated. "We're at the precipice of this big transformation of payments to value-add, technology and big data," he said. "But it's very difficult for a zebra to change its stripes."
At one end of the spectrum, acquirers have purchased tech companies and greatly expanded their product offerings; at the other, companies have stayed on the sidelines or tried to develop their own technology with limited success, Hogan noted. But it's not just a matter of finding the right technology. ISOs and MLSs should make the cultural shift required to learn how to promote the technology to merchants, Hogan said. He cautioned that "the barriers are many and large to making that transition" but emphasized it is imperative to make the effort.
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Company Profile originally appeared in
The Green Sheet Issue 170801
220601 - Nationwide Payment Systems
211102 - Kalamata Capital Group
210701 - Choice Merchant Solutions
200601 - Delta Payment Solutions
190802 - Credit.net, a division of Infogroup
190702 - Samsung Electronics America Inc.
181201 - Network Merchants LLC
180902 - MainStream Merchant Services Inc.
180801 - Century Business Solutions
180502 - Priority Payment Systems Northeast
180501 - Merchant e-Solutions Inc.
180301 - Wirecard North America
180201 - Sysnet Global Solutions Ltd.
171202 - Secure Cryptopayments
171002 - National Benefit Programs LLC
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170802 - Apogee Payment Systems LLC
170702 - Active Software & Hardware Systems
170701 - Veratad Technologies LLC
170502 - Frontline Processing Corp.
170501 - Platinum Choice Bancard LLC
170201 - Electronic Payments Inc.
161202 - International Bancard Corp.
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161101 - Residual Sheriff LLC.
160801 - DigiPay: Solutions Inc
160702 - CreditCardProcessing.com
160201 - Lead Tracking Systems LLC
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151101 - Lion Capital Group LLC
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150702 - Vision Payment Solutions LLC
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150502 - Global Processing Systems
150402 - Mercantile Processing Inc.
150401 - Field Guide Enterprises
150302 - Signature Card Services
150301 - Premier Payment Systems Inc.
150201 - Humboldt Merchant Services
150102 - Expansion Capital Group LLC
141102 - National Merchants Association
141001 - Instant Credit Manager
140902 - Merchant Cash and Capital LLC
140701 - National Transaction Corporation (NTC)
140601 - Total Merchant Services
140501 - Nationwide Payment Solutions
140501 - BPC Banking Technologies
140301 - Meritus Payment Solutions
140201 - Process Pink Payments LLC
131202 - First American Payment Systems L.P.
131102 - Evo Payments International LLC
131001 - Live Reps Call Center
130901 - Regal Payment Systems LLC
130901 - The Merchant Solutions
130802 - North American Bancard LLC
130801 - Payment Logistics LLC
130702 - Plug n Pay Technologies Inc.
130601 - U.S. Merchant Systems LLC
130402 - National Processing Co.
130202 - Charge Card Systems Inc.
130202 - Layered Technologies Inc.
130102 - Glazer_Kennedy Insiders Circle LLC
121202 - American Microloan LLC
121102 - Keep in Touch Systems Inc.
121102 - Merchants Choice Payment Solutions
121002 - Washington Bancard Merchant Services LLC
120902 - Central Payment Co. LLC
120802 - Royal Merchant Holdings LLC
120801 - National Benefit Programs LLC
120602 - Cardinal Commerce Corp.
120601 - Veritrans Merchant Services LLC
120502 - ExecuTech Lease Group
120502 - The Small Business Authority
120402 - Chargeback Guardian Inc.
120401 - Electronic Payment Exchange
120301 - Complete Merchant Solutions LLC
120201 - CSR - Compliance Solutions and Resources
120102 - Alpha Card Services Inc.
111002 - Lead Source Call Center
111001 - First Annapolis Consulting Inc.
110902 - Point of Sale System Services Inc.
110901 - Sage Payment Solutions
110801 - Century Payments Inc.
110702 - Creative Vision Studio LLC
110702 - Network Merchants Inc.
110701 - Capital Access Network Inc.
110602 - eProcessing Network LLC
110602 - Moneris Solutions Inc.
110502 - Paragon Application Systems Inc.
110401 - Merchant Implementation Services
110301 - FrontStream Payments Inc.
101202 - CheckAlt Payment Solutions
101102 - Impact Payments Recruiting
101101 - Global Electronic Technology Inc.
101002 - TriSource Solutions LLC
100802 - Federated Payment Systems LLC
100801 - Voltage Security Inc.
100601 - NETSURION (formerly Vendor Safe Technologies)
100502 - Transaction Network Services Inc.
100402 - Secure Payment Systems Inc.
100401 - Elite Merchant Solutions
100302 - Retail Decisions Inc.
100102 - Payment Alliance International
091201 - Performance Training Systems Bankcard Boot Camp
091101 - Merchant e-Solutions Inc.
091002 - Whitehall Capital Advisors LLC
090901 - CoCard Marketing Group LLC
090801 - First National Merchant Solutions
090701 - checXchange Money Transfer Systems Inc.
090601 - Sterling Payment Technologies
090502 - Infinity Payment Systems
090501 - Merchant Cash and Capital
090401 - UseMyBank Services Inc.
090401 - Data Delivery Services Inc.
090302 - Velocity Merchant Services
090302 - Metro Merchant Services
090301 - Smart Transaction Systems Inc.
090301 - DCC Merchant Services USA LLC
090202 - TransFirst Holdings Inc.
090201 - ACH Payment Solutions
081202 - Affirmative Technologies Inc.
081201 - On-line Strategies Inc.
081101 - Vision Payment Solutions LLC
081002 - Veratad Technologies LLC
081001 - International Merchant Solutions LLC
080801 - GreenSoft Solutions Inc.
080702 - Smart Circle International
080601 - International Bancard Corp.
080502 - DRG Telemarketing Inc.
080501 - BCC Merchant Solutions
080402 - U.S. Merchant Systems
080401 - Greystone Business Resources Corp.
080302 - Transmedia Payment Services Ltd.
080102 - Sonoma Technical Support Services
071202 - Barclay Square Leasing Inc.
071102 - FirstView Financial LLC
071001 - Sage Payment Solutions
070902 - YourTownMall Business
070901 - Nxgen Payment Services
070802 - All card Processing-AAMonte-USA
070801 - Money Movers of America Inc.
070602 - Central Point Resources Inc.
070601 - Positive Feedback Software LLC
070502 - Premier Payment Systems
070501 - Amacai Information Corp.
070402 - National Bankcard Systems