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by establishing these relationships, MLSs become more in- velopments is crucial. One cannot ignore the importance
volved and continue to be trusted resources, which helps of data security either. It appears not a day goes by when
them retain clients. Many POS companies offer referral you don't hear of a large retailer getting breached. Equip-
commissions, too, so these relationships can be lucrative ment and software providers need to prioritize security
for MLSs writing a lot of new business. Learning which and PCI compliance.
POS companies support our front-end platform, and then
developing mutually beneficial referral agreements be- In addition, software and equipment providers should
tween our companies has generated a lot of new business have integrated payments on their mind. More POS com-
for my company. panies are offering integrated payments to provide cus-
tomers convenience, as well as partake in processing rev-
2. For ISOs working with MLSs and resellers, the same fac- enues. If executed strategically with the right processing
tors apply as stated above, but ISOs also need to focus on partner, a large equipment vendor with a few thousand
developing attractive reseller programs. Ultimately, MLSs clients can add a lucrative income stream by offering pay-
want to maximize their residual potential so not only do ment processing. This may even make customers stickier,
ISOs need to offer competitive and transparent buy-rates as merchants are utilizing more and more services, mak-
and rev-shares, they also need to provide the necessary ing it harder for them to leave even if there's no cost in
tools for their MLSs to succeed and retain clients. doing so. The more value you offer your customer, the
stickier they become.
A large part of our MLSs' success has been our propri-
etary dashboard, which has made it easier for them to 4. The top three qualities we all need are honesty, patience
sign up prospects and, more importantly, get applications and creativity. Regardless of your role or position in the
approved faster. Nothing is worse than waiting for your payments ecosystem, you need clients to be successful.
prospect's application to get approved only to find out a The same goes for any business. Being honest and trans-
pending application with your competitor was approved parent with vendors, clients and other partners is the big-
quicker. ISOs need to streamline their underwriting pro- gest factor that will foster long-term growth for you and
cess to be quick and efficient, especially when payfacs are your company. This is especially critical for smaller play-
offering instant approvals. ers and new entrants as you build your reputation, seek
referrals and generate buzz around your company. Word
ISOs also need to give their merchants valuable tools and of mouth can be a huge contributor to success or failure.
resources. This makes it easier for their MLSs, since they Anyone whose core values include honesty will succeed
will have more to offer and create stickier relationships. in the long run.
ISOs and MLSs should sell on value, not on price. For ex-
ample, if an ISO can offer clients a suite of banking servic- Building a large client base or portfolio in the payments
es or even analytics to help them grow their business, this world is not easy and doesn't happen overnight. As the
makes it easier for the MLS and may create more income owner of an ISO, I still keep my sales hat. This role has
opportunities. Building an army of knowledgeable MLSs taught me more about patience than anything else. It took
fosters organic growth, but ISOs should focus on VAR/ISV years to build relationships and establish trust to reach the
partnerships, too. POS companies are realizing the income point where the largest clients I have signed felt comfort-
potential in offering integrated payments. ISOs should able using our services. Individuals working in customer
seek these types of partnerships as well to establish di- service can also attest that patience is key. If you are pa-
verse sales channels. tient and persistent, your prospects and business partners
will respect that. There is nothing worse than an aggres-
3. Software and equipment providers offering payment sive and pushy salesman offering a limited time product
processing capabilities are facing significant competition or opportunity.
as technology advances innovation and new opportuni-
ties arise. Success for these companies lies in the ability Lastly, you must be creative to get a leg up on your compe-
to keep up with the technological advancements that are tition. The bankcard industry is saturated with hundreds
changing the payments ecosystem such as EMV, contact- of ISOs, POS companies, gateways, etc. We constantly re-
less payments, mobile pay, etc. Regardless of whether soft- view our marketing campaigns and pricing strategies to
ware companies are established or startups, they all need make sure we are remembered when speaking with pros-
to consider the current and future payments environment pects and other potential business partners. We've been
so they can innovate appropriately. more creative with our technological innovations, which
has paid dividends for us. Having a creative mindset will
For example, the introduction of the tablet/iPad as an al- also ensure your company is staying current with new
ternative to big, expensive legacy POS systems was a great trends and regulatory changes, something the bankcard
innovation that helped smaller businesses get more afford- industry is facing now. With new payment methods gain-
able equipment. This put a lot of established POS provid- ing momentum, businesses that cannot offer merchants
ers on their toes. Many have now followed suit by offering the tools and technology to keep up with consumer de-
tablet POS systems in addition to their legacy systems. Be- mands will soon be left in the dust. Creativity will provide
ing able to pivot with new payment technologies and de- big rewards to the players who want to invest.

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