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Table of Contents

Lead Story

Reevaluating the ETA CPP

News

Industry Update

NRF appeals to higher power

Amazon launches Amazon Local Register

New York proposes bitcoin licensing

Features

Inc. 500/5000 payments industry fast trackers

How contextualization will shape m-commerce

Jared Isaacman, Founder and Chief Executive Officer

Views

Cash is not dead

Patti Murphy
ProScribes Inc.

Managing for the long term

Brandes Elitch
CrossCheck Inc.

Education

Street SmartsSM:
Who has what it takes to be an MLS?

Tom Waters and Ben Abel
Bank Associates Merchant Services

Managing from a distance

Vicki M. Daughdrill
Small Business Resources LLC

Race to the top

Jeff Fortney
Clearent LLC

Company Profile

PayPro Tec

New Products

Lucky proposition for ISOs

PayLucky Solutions
First Data Corp.

Smart merchant technology

CardConnect Merchant Center
CardConnect

Inspiration

Negotiate from a place of power

Departments

Readers Speak

Boost Your Biz

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

September 08, 2014  •  Issue 14:09:01

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Meet The Expert:
Jared Isaacman, Founder and Chief Executive Officer

Jared Isaacman, founder and Chief Executive Officer of Harbortouch, believes that if you want to start a career in the payment processing industry today you need a thick skin and must be comfortable in what is rapidly becoming a technology driven industry.

"There is no instant gratification in this space anymore, not like say 1997 where you came into the space and a merchant didn't have credit cards and you leased them a terminal," Isaacman said. "Merchants get called upon by 20 or 100 different payment reps a year, so they understand the game. It is very hard to jump into this industry and have some instant success."

Isaacman got his start in the payments industry when, as a teenage college dropout, he formed Harbortouch (at the time called United Bank Card Inc.) in the basement of his house in New Jersey. Soon thereafter he became a contributor to The Green Sheet Inc.'s online forums.

"I was a contributor on the first Green Sheet online forum that existed; it's like three iterations before the one we use now," Isaacman said. "A huge portion of our success and our early growth team was from our contribution to The Green Sheet. We were able to interact with so many ISOs and educate them. I probably logged far too much time on those online forums than I should have, but I was 16 or 17 so I had nothing else to do."

At age 19 in 2002, Isaacman became the youngest member of The Green Sheet Advisory Board, a position he has held since that time. Today, Isaacman is recognized by BusinessWeek and Inc. magazines as one of the nation's leading entrepreneurs.

Breaking new ground

In reflecting upon the reasons for his success, Isaacman said, "We have really tried to avoid the race-to-zero, never-ending margin compression that exists in our industry." A key part of his strategy emerged in 2004 when Harbortouch introduced the first free credit card terminal.

"Everybody was buying the same terminals at the same cost at the same time period," he said. "What is the difference buying a terminal for $200, selling it for $209 and giving away all the rates and fees versus buying it for $200, giving it away and having a predictable ROI with some healthy margins? It was a way to stop margin compression, which, even though I think Harbortouch has been very successful at that over the years, a large portion of the industry has not."

So where does Isaacman see the industry heading in the future? He thinks the POS and the parallel payments industries are on a converging track. "Probably four more years from now we are not even going to refer to them as separate industries," he said. "The fact of the matter is point of sale system technology isn't what is driving the payments anymore; it's just an accessory.

"Technology will drive business operations, and payments will just be one piece of it. Table-turn efficiency for restaurants, order entry, online ordering, online reservations – mobile payments, someone comes into a restaurant redeems a $50 gift certificate on their phone, pays the tab on their phone and leaves. That is the future of the industry, without question."

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

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Spotlight Innovators:

North American Bancard | Harbortouch | USAePay | IRISCRM.COM | Humboldt Merchant Services