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Table of Contents

Lead Story

MLS 2.0: secure, compliant, resourceful, discoverable

Dale S. Laszig


Industry Update

News Briefs


What it takes to thrive in payments today - Part 3

TSG's new directory of U.S. acquirers


Visa, Mastercard aim to accelerate B2B card payments

Patti Murphy
ProScribes Inc.


Street SmartsSM:
Archives: Veritably valuable added services

Dee Karawadra
Impact PaySystem LLC

Legal ease: ISO contract management in the digital age

Adam Atlas
Attorney at Law

Help your merchants increase customer loyalty

Barry Davis

Three ways to take your ISO to the next level

Jordan Olivas
RS Software Inc.

Company Profile


New Products

Unified security management, compliance solution

USM Anywhere
AlienVault Inc.


The sales door: close it or leave it open?


Letter from the editors

Readers Speak: Machine learning can safeguard global payments

Resource Guide


A Bigger Thing

The Green Sheet Online Edition

June 11, 2018  •  Issue 18:06:01

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Street SmartsSM

Archives: Veritably valuable added services

By Dee Karawadra

Editor's Note: The following is excerpted from Dee Karawadra's Street SmartsSM column published in The Green Sheet June 25, 2007, issue 07:06:02. It was a time when value-added products and services were typically ancillary to payment processing. Today, technology is enabling merchant level salespeople to offer additional, powerful business management services; some have become more central to the sales equation than payment processing. To read the full article, please visit

Value-added products are getting more attention as the credit card processing market approaches saturation. They enhance a portfolio's worth considerably, bring more flavor to the product-offering table and provide an additional source of revenue to ISOs and merchant level salespeople (MLSs).

Additional obvious benefits to agents who offer these products include lower merchant attrition and increased margins due to packaged pricing. There is a wide selection available of value-added products and services, which are also known as value-added reseller (VAR) products.

I have picked some of the more popular ones to discuss in this article. In order to sell these, MLSs need to have a fundamental knowledge of the benefits the products bring to merchants.

Check services

Check service offerings have existed for a long time, but those who are new to the payments industry may need an explanation to better understand this product. There are several different aspects to check services:

ATM services

Many may not consider the ATM arena to be value-added, but it definitely is. The market for this involves fewer merchants, primarily bars, hotels and convenience stores. Residual revenue comes from two avenues: 1) the surcharge added to each transaction by the merchant – usually $1.50 to $ 3; and 2) revenue from the debit networks. Residuals are usually paid to the processor, which passes them on to the ISO after deducting the cost of the transactions.

ATMs may be placed at merchant locations in several ways. Merchants can buy or lease them, refill the money, as needed, and keep 100 percent of the surcharge. Merchants can also own ATMs but have an ATM service company refill the money. In this case, the surcharge revenue is usually split.

Another common option is for ISOs or MLSs to own ATMs for which merchants refill money, as needed. Surcharge revenue is generally split in this type of arrangement.

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

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North American Bancard | USAePay | Impact Paysystems | Board Studios