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Table of Contents

Lead Story

Doing business in the mobile channel

Patti Murphy
The Takoma Group


Industry Update

Security standards lifecycle extended

Congress approves interchange regulation amendment

New ACH rules in step with Check 21

ETA unveils new logo

Trade Association News


GS Advisory Board:
Merchant retention, taking the initiative - Part 1

Selling Prepaid

Prepaid in brief

FinCEN seeks comprehensive AML framework

Prepaid largely spared in final Durbin Amendment


Strong relationship skills obliterate obstacles

Jeffrey Shavitz
Charge Card Systems Inc.


Street SmartsSM:
Should an industry attorney review your contracts?

Ken Musante
Eureka Payments LLC

Managing your most important asset

Jeff Fortney
Clearent LLC

De-commoditize continuously to conquer a crowded market

Daniel Burrus
Burrus Research Associates Inc.

Building a PCI program that works

Tim Cranny
Panoptic Security Inc.

Digital reputation management

Peggy Bekavac Olson
Strategic Marketing

Company Profile

ROAM Data Inc.

New Products

Loyalty program, in spades

GoMo Wallet
Gold Mobile, Telcordia Technologies Inc.

Cordless retrofit for dial-up

Nebo Wireless
Nebo Wireless LLC


Turn negative thoughts into positive action



Resource Guide


A Bigger Thing

The Green Sheet Online Edition

July 12, 2010  •  Issue 10:07:01

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Strong relationship skills obliterate obstacles

By Jeffrey Shavitz

Just five to 10 years ago, the average small to midsize merchant - which many merchant level salespeople (MLSs) are targeting aggressively as their ideal market - had high rates, so developing a competitive and more efficient program for them was relatively easy.

In my experience, larger companies (whether public or private) have chief financial officers who study the effect of processing fees on their company's bottom line, making them a more difficult merchant base to convert.

Having worked with many CFOs and presidents of companies of all sizes, I've realized that interchange and related processing costs are now one of the top expenses and line items of concern to those running a company that accepts credit cards as a form of payment.

Making a fair margin

Let's return our focus to the small to midsize company (defined as processing less than $50,000 per month). The competition for this category is fierce, with margins shrinking every day. In fact, our company's gross margin on basis points has been reduced consistently every month during the past two years. Where and when is the benchmark going to stop? I hope soon.

As ISOs and MLSs, we truly provide a valued-added service and deserve to make a fair and competitive profit margin. I would rather walk away from a deal than get into a position where I'm being "nickeled and dimed" for a few basis points.

I strongly believe that many merchants do not under-stand the value of a basis point and that some of our salespeople have lost small deals ($10,000 per month) over a few basis points.

If you are truly a good salesperson in our industry, you should be able to utilize your sales skills to win a deal if a competitor offers a three basis points reduction. Do you know what the revenue for three basis points is on $10,000? It is your responsibility to persuade merchants that your availability to resolve problems is worth paying the extra few pennies.

Finding the right partner

The hurdle ISOs face is in recruiting sales partners to join an organization. It is challenging to identify and recruit great salespeople. And I have heard many MLSs speak about the difficulty of finding processing partners with values and customer service traits that mesh with their own values and approach to service.

Given the number of options in the marketplace, I can offer this simple advice: Do your homework by meeting personally with qualified partners to gain better insight into their philosophies, priorities and business practices.

It's all about the relationship and ensuing partnership. Just be comfortable and confident that you've chosen well.

Jeffrey Shavitz is one of the founders of Charge Card Systems Inc. He is also an active member of The Green Sheet Advisory Board and the First Data ISO Advisory Board. He can be reached at or 800-878-4100. For additional information on CCS, please visit or the company's corporate website at

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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