You Can Bank on These 'Nice Guys'

A bout 20 years ago in Southern California, a software consultant opened a small business in his loft. His clients included small to midsize businesses that were in need of professional system consulting for mini-computers and mainframes. He quickly took it to the next level, not satisfied with simply handing a client a 20-page analysis with recommendations and no implementation. That decision led to full system software and hardware development for companies needing specific expertise to complement their IT staff.

He moved his small company moved to new offices, expanded its staff and, in 1993, was asked by a bank to develop a bankcard back-office processing solution. The bank had a risk portfolio and was being buried by volume. That was the birth of MCV Global Systems, Inc.

"It was a real baptism by fire because this was a leading bank for high-risk merchants," says Tony DiNino, President and founder of MCV Global. "We learned a lot very quickly because we had to. The volume of chargebacks was huge, and we needed to relieve them right away. Jumping into the deep end, we learned to swim real fast."

Formerly known as MCV Computer Consultants, the company changed its name to MCV Global and incorporated. More employees came aboard, and MCV Global quickly split into two sections - general business and bankcard software. It led to more bank clients and to MCV Global's current unique position of expertise in bankcard operations.

As a full-service consulting company meeting all of its customers needs, from consulting to software development to implementation and training, MCV Global's products and services run the gamut of marketing, operations, technology, software and management tools.

With its core competency in the bankcard arena, MCV Global boasts experience in every facet of the bankcard industry, both issuing and acquiring.

"We have senior people that have worked as bank officers. We have senior staff that have worked for major merchants," says DiNino. "When we sit down with a bankcard client, our first couple of meetings are educational because there is just so much that we can tell them and help them with. When we talk with ISOs, we can answer a lot of myths."

All of that knowledge translates into hot products and services. MCV Global writes custom software that runs the way the client wants to do business. While every bank is basically doing the same thing, each management team wants its own signature on how to do things and where the emphasis is to be. Because MCV Global's software is custom written, it allows clients to run their business the way they want, not the way the software dictates.

For ISOs, MCV Global promises functionality so they can service their merchants better.

"Merchants are the ones who typically get left out of the service equation," says DiNino. "For example, reporting. Some merchants are satisfied with a monthly statement; others want to know on a daily basis. We can provide that kind of software to help put it on the Web or however the ISO wants to handle it - e-mail, fax or Web site."

There are other companies out there who make similar promises. What sets MCV Global apart?

"Aside from being nice guys, we are more than just technologists," says DiNino. "We have a unique understanding from the inside out of the industry; and we've worked extensively with third-party processors and different platforms. We focus on enhancing productivity and profitability of the client."

Who does MCV Global consider competition for those clients? At first, DiNino boldly declared that it doesn't have any. So why isn't MCV Global a multibillion-dollar company?

"Seriously, there are companies that provide all," DiNino says. "A bank has a choice. They can develop there own software internally, they can go to someone like us and have us develop it, or they can outsource some or all of their bankcard operations to another company. Our competition tends to be both outsourced companies and a bank's internal staff."

The space MCV Global is aggressively and successfully competing in is small to midsize banks and ISOs who want to enhance internal software systems so they can provide better service to their merchants.

"Whatever we do for banks we can do for an ISO," says DiNino. "We know exactly what their business is, what their needs are. We can hit the ground running in any discussion."

For example, if an ISO is doing merchant applications, MCV Global can put them on the Internet and give ISOs the appropriate software to track status and reporting, even providing files for upload to third-party processor so data doesn't have to be rekeyed.

MCV Global doesn't stop there. Its solutions focus on customer retention and helping ISOs increase their revenue by offering services they won't find elsewhere. MCV Global allows ISOs to take on more of a processing function than banks do.

"We all know that as the ISO takes on more of the work from the bank for that merchant; their split will increase," says DiNino. "A merchant doesn't care who is doing it as long as it's accurate."

MCV Global believes its products and service will increase ISO confidence on everyone's level. "The ISO will feel confident they can do the job because they are getting the identical software that the bank is, the same bankcard software performing the same functions such as funds transfer, back-office charging, etc.," DiNino says. "The bank can be made to feel confident by ISOs providing them with the right type of reporting."

MCV Global can write systems where data from the ISO system is transferred to the bank's system daily. The bank can then, in turn, run its own reporting. Or the ISO can send reports to the bank, also through MCV Global software.

"We don't have to sit with the ISO and ask, 'What do you think the bank wants?' We don't have to then go to the bank," says DiNino. "We have all the answers already and can present proposals that have immediate acceptance. We've already been in those situations, and our staff knows what the FDIC wants, what the regulators want. When we present a solution, we take everything into account."

Those solutions can be pricey. Systems run anywhere from $25,000 to more than $1 million depending on how comprehensive the solution is. Software, hardware, number of core modules, integration, training - all determine the cost of each customized application.

The turnaround time for an MCV Global solution can be from two weeks on up with variables including scope of project, how prepared the client's systems are and how well the client understands what is needed.

Does the price tag match the product value? Consider this solution scenario:

MCV Global was recently approached by a bank that had a $3.5 million chargeback expense account. Naturally, the prospect of managing such a high-volume figure was a concern.

MCV Global designed and implemented a system incorporating a chargeback module that allowed one operator to push a couple of keys in the morning, and all the work that previously was done all day by two staffers was completed - in 15 minutes!

All of these basic functions were completed: The system received reports from third-party processors, fees were calculated, both the expense and the income sides of the general ledger were updated, all of the appropriate NACHA files were created so the merchants got paid, settlement was balanced, funds were moved and - here was the big payoff - the software identified all exception items.

Chargebacks and merchants were moved to risk categories, allowing the staff to work on the important stuff, such as risk management, customer service and marketing. Within two weeks, the bank's chargeback account went from $3.5 million to $70,000, a feat DiNino is very proud of.

"In the past, when it got really bad for this bank, they would call in temps for a weekend," says DiNino. "Now they can handle it and keep it at a reasonable level. Their risk management improved greatly. That's the kind of score we like to hit."

Now, consider: How much is something like that worth to your own business?

"We take a long-term view, a strong commitment to clients and employees both," says DiNino. "We're not in it for the quick buck, and we expect to keep clients as long as there is a mutual benefit. We've had one client from October of 1980 and still are making a significant contribution to their systems."

MCV Global is looking for relationships where it can bring something to the table that helps the client. Not just focused on getting in and getting out, MCV Global wants to see its clients be successful. "If they are, we've done our job and we will be successful," says DiNino. "We will do whatever it takes."

To MCV Global, doing whatever it takes means dedicated customer support. Its motto is that an existing client with a problem has priority over anything else, over development, even new business. MCV Global recognizes there is a strong dependency on its software, and support has to match and recognize that value to their clients.

"We will cancel a business meeting to address and resolve a problem," says DiNino. "If a client needs 24/7 support, we can arrange it. Typically they work with us during normal business hours, but we will not leave them hanging. We'll stay all night 'til they're back in business. We take it very seriously."

And DiNino wants to make it clear how knowledgeable and business-oriented that support really is.

"There are no geeks here," says DiNino. "For instance, when a client calls and says they have a system problem, a person without good business sense would say, 'Wow, that's fascinating. I've never heard about that before.' Here at MCV Global, we say, 'We know you've got to close your books. We know you've got to get it fixed. Let's work on it immediately.' In developing software and client services, you need to have good business sense. We do."

MCV Global also does best practices consulting for its clients. Again, utilizing the experience of someone who has been there, done that, MCV Global can help a client measure profitability, check workflow and look for another option on how to do business successfully.

Which ISOs is MCV Global seeking to support? "Anyone who wants to do volume has to have automation, and what we do is give the client the ability to focus on the important aspects of their business and leave the routine to the software and systems," says DiNino.

Headquartered in the San Fernando Valley north of Los Angeles, MCV Global employees a staff of 12 professionals. All are committed to future growth for MCV Global, providing more full systems to banks and ISOs.

"Ultimately, we would like to be the back-end processor provider for banks," says DiNino. "We would like banks to outsource their bankcard operations to us. We'll take all our knowledge and expertise and come up with the ultimate bankcard department. We feel we can do it, and we will do it."