Product: ISO partner programs
Company: Delta Payment Solutions
Delta Payment Solutions, a business cooperative and consultancy, provides a broad portfolio of discounted services and exclusive member benefits. The unique business model is designed to provide small and midsize business (SMB) owners with simple, transparent competitively priced processing solutions.
"As founding partners, we had experience running companies outside of the payments industry," recalled Irwin Grossman, Delta Payment Solutions co-founder and CEO. "As we made our foray into payments processing, we became both beneficiaries and victims. We saw card-not-present companies being incorrectly categorized as high risk and SMBs overcharged for processing."
To address these issues, Delta founders launched a business co-op with diverse merchant members and affiliate partner arrangements with merchant acquirers, ISOs and third-party service providers. Affiliate revenue-sharing agreements, based on business volumes, helps pay for co-op operational expenses; remaining funds after expenses are rebated to merchant members. "Members receive a rebate of at least 50 percent of the revenues the co-op receives, based on their business with us," Grossman said. "These rebates grow as the co-op grows."
Grossman went on to say that Delta Payment Solutions is a large group-purchasing organization that leverages the buying power of its growing base of 30,000 members to purchase supplies. In addition to cost savings, the company is transparent and works with potential members to help them understand their merchant statements and service agreements, he added.
"Members may think they have one rate structure or that their rates are high," Grossman said. "We show them what the rates are and work with ISOs that have easy-to-understand statements."
Grossman acknowledged that the company's business model may seem counterintuitive but its lower rate structures and year-end rebates have proven popular with merchants. He also noted that Delta Payment affiliates provide warm introductions to "our sweet spot," which typically includes small and midsize ISOs specializing in high-risk and merchants that process between $1 and $100 million in credit card transactions.
Grossman described the company's fresh perspective on the payments industry as a key competitive advantage. "We are not overly influenced by the conventional wisdom of the industry," he said. "You can get so wound up [with traditional practices and business models] that you can't differentiate yourself with a competitively structured business."
Delta does not engage in competitive bid situations or give out rates, Grossman noted. The company provides analysis and lets merchants know what it can do for them but requires a commitment before sharing details. Another core value at Delta is its commitment to earn a merchant's business every day. The company partners with ISOs that do not impose onerous early termination fees (ETFs) on merchants. And Delta will absorb an ETF if it fails to make a merchant happy, Grossman stated.
"We fit you with the best solution at the lowest cost," Grossman said. "And we provide more than just processing solutions. We offer discount-for-cash programs, custom financing with traditional and installment plans, and branded credit cards with full loyalty programs."
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