eriodically, we build articles for our publications utilizing our Green Sheet Advisory Board. This cross-section of the payment-processing industry has agreed to support our efforts by answering industry-related queries posed by our staff and readers. Each of the professionals in the group has agreed to "give back" to this terrific industry by sharing their personal experience and knowledge with our readership.

This time we asked them to tell us which industry trends they would like to see discussed in our publications in the coming year. We found their varied responses thought-provoking and will be reporting on these topics in the months to come. If you have a suggestion for a Green Sheet article, a topic that you would like to read more about, please send your thoughts to paul@greensheet.com.

The Respondents:

• Steve Christianson, TransPay Processing
• Rob Connelly, VeriFone
• Tom Haleas, Bridgeview Payment Solutions
• Jared Isaacman, United Bank Card
• Allen Kopelman, Nationwide Payment Systems
• Dave Siembieda, CrossCheck
• Scott Wagner, Hypercom
• Dan D. Wolfe, Barons Financial Group

Steve Christianson

TransPay Processing

"Perhaps more items on the ISO management/ownership issues, such as portfolio evaluation, why portfolio values are depressed, portfolio management alternatives. More on the effect of the stock market on banks as related to portfolio valuation.

"Perhaps a national salesperson directory whereby all salespeople selling processing for each ISO can be 'registered.' Salespersons terminated for 'unbusinesslike practices' - theft, deception, etc. - are noted in their file. The list would be private to the holder, such as The Green Sheet or ETA.

"Now that the initial scare of the Certified Merchant Services suit is being settled, it would be a good time for the industry to set its general guidelines up as a template of operations for all ISO companies. Those who do comply and set up their organization under the suggested template would be less likely to be investigated by the government in the future. The creation of a code of ethics for the ISO business. Perhaps after attending an industry orientation, the new or established ISO would receive a plaque stating a code of ethics the ISO would need to follow.

"Think of the publicity of having 300-400 ISO presidents/CEOs taking the 'pledge' or 'oath' standing on a stage in front of invited media, dignitaries and other government officials. Big-time mileage could be had. ETA would have to start a committee to develop the code of ethics and then present it to the membership and take a vote. Upon passage, the group could stand for the photo opportunity. The rest would be history."

Rob Connelly

VeriFone

"I'd like to see more emphasis on trends that will help ISOs differentiate their business, improve merchant retention and generate new sources of revenue. There's a lot of activity in the areas of value-added applications, particularly electronic check, gift card and prepaid telco. ISOs need to understand the value propositions and the go-to-market strategies as well as what's 'real' vs. what is 'hype.'

"Additionally, ISOs need to be prepared for the road ahead and need the right payment terminals to support emerging trends and technologies so that they aren't left behind. Advances in technology include fast processor speed, high-speed modems, IP technology, 3DES security, RFID technology and a host of other emerging standards."

Tom Haleas

Bridgeview Payment Solutions

"In an article by Bob Carr that appeared in a recent edition of GS, you already have entertained discussion on the possible industry ramifications from the Visa-FDR litigation. I suggest you continue to closely follow this lawsuit. I agree with Bob that, depending on the outcome, the payment-processing industry may be dramatically altered."

Jared Isaacman

United Bank Card

"As technology progresses, we become less reliant on existing framework to pave the way for the new advancements. One of the major underrated payment systems available is IP-based transaction processing. Processing IP transactions requires an established Internet connection through high-speed broadband such as DSL/cable or even traditional dial-up.

"The vast majority of the country has an Internet connection of some kind, and virtually all businesses do. Payment processing via IP gateway eliminates the need for a traditional phone line, accelerates approvals to as fast as two seconds, and decreases the transaction cost for the processor. Until recently, accessing this technology was limited to computer software such as PC Charge and online gateways, but terminal manufacturers such as MIST and Hypercom have developed POS Terminals to interface with IP gateways. "The launch of these new-generation terminals should present an exciting new market for the processing industry. United Bank Card has developed a strong presence in this processing arena by developing our own in-house IP gateways certified with two major front-end platforms. We are actively working with several terminal manufacturers to launch this new processing technology to our ISO and merchant base."

Allen Kopelman

Nationwide Payment Systems

"We need to get information on what software is compatible to make these programs work and which processors are offering these programs. I have tried in the past to obtain this information, and it has not been available."

Dave Siembieda

CrossCheck

"I think that there would be great interest in emerging new retail payment markets: health care, check cashing, payroll cards, quick-service restaurants and remittance processing (ARC). Also, there is an explosion of new ISO opportunities coming from IP Addressable Terminals as traditional check/cash transactions are electrified. Can The Green Sheet report on how these new markets are being opened by ISOs at the forefront of these emerging product and new-business segments?"

Scott Wagner

Hypercom

"I have found the articles written by Bob Carr very compelling. Continued information along those lines would be very welcome. I crave info on what merchants are buying and/or looking for. Why did they sign up with XYZ processor and are they doing a good job?"

Dan D. Wolfe

Barons Financial Group

"I would really like to see more information on check truncation. My telemarketers tell me that this has been a hot topic. We believe that this will be the easiest door opener for 2003. Next would be the Palm Pilot and cell phone attachments for mobile merchants."

Best Payment-Processing Players

We asked the Advisory Board to rate the various participants in our industry. We agreed to keep their responses anonymous. We have used their responses as our nomination process for a "Best of" ballot.

Enclosed with this issue is a Best Payment-Processing Players ballot. Please mail or fax the postcard no later than April 30, 2003 OR you can vote online. Please, ONE VOTE per subscriber only.

We have enabled you to vote WRITE-IN if you choose.

In appreciation of your participation we will send you a free, surprise gift from The Green Sheet.

Nomination Categories

• Best POS Terminal
• Best ISO Organization
• Best Processor
• Best Leasing Provider
• Best Customer Service by an ISO
• Best Customer Service by a VAR
• Best Customer Service by a Processor
• Most Influential Technological Advancement
• Most Influential Industry Leader

Here are the nominees for each category and a synopsis of why they were chosen.

Best POS Terminal

• Hypercom ICE - The most robust features, fast, reliable and easy to use.
• Nurit 2085 - Well made, very capable, doesn't lose the load.
• Thales Talento - Can load multiple merchants, load multiple applications - i.e., credit, debit, checks and gift cards - into the terminal without disrupting the credit card processing. The terminal has a built-in PIN pad for debit, it is affordable, and it can be programmed manually for quick fixes.
• VeriFone - Its latest terminals are truly capable of handling multiple applications without interfering with existing applications on the terminal.
  • VeriFone Tranz 330 - Still the workhorse of the industry.
  • VeriFone Omni 3200 - Best bang for the buck.
  • VeriFone Omni 3750 - Competitive edge.

Best ISO Organization

• Barons Financial Group - Preset appointments for affiliates.
• Bridgeview Payment Solutions - 10 years of experience, integrity.
• CPS/Concord EFS
• Lynk - Works hard to provide the best services and technology to its merchants.
• United Bank Card

• FDR - North Platform has the most features along with the most extensive product set. It is truly fast, especially with those terminals that are synchronous. Very good customer service and widespread front-end capabilities.
• NPC - Handles a tremendous amount of business with the highest level of professionalism.
• Paymentech - Overall service, including a sufficient help desk.
• United Bank Card
• Vital Processing Services - DSL processing, builds files quickly, and there is a back-door number for reps to call in on. Can fix problems quickly, and the staff is knowledgeable.

Best Leasing Provider

• CIT Lease Finance Group
• Integrated Leasing - Answers questions; you can always speak to someone who can make a decision there.
• Lease Finance Group

Best Customer Service by an ISO

• Barons Financial Group - Preemptive customer service to talk to customers before they have problems; this also lowers our attrition rate.
• Innovative Merchant Solutions - Always has gone out of way to help merchants whenever needed.
• TransPay Processing
• United Bank Card

Best Customer Service by a VAR

• JR'S P.O.S. Depot - The staff is great, they fix your equipment in a timely manner and they stand behind their work; if you ever have a problem they never give you grief, they just take care of it.
• TASQ - Good all-around program.

Best Customer Service by a Processor

• Concord EFS - Great help desk.
• FDR
• Paymentech
• United Bank Card
• Vital - Fast, friendly.

Most Influential Technological Advancement

• Biometric payments
• Check truncation - Because of the doors it has opened.
• Hypercom's ICE line - Like any good technology, it is ahead of its time.
• Wireless payment systems - Infrared solutions utilizing equipment that is already in the marketplace, such as cell phones and PDAs, will dramatically change the face of retail.

Most Influential Industry Leader

• Mary Dees
• Joe Kaplan - He is always looking for the best solutions to offer his merchants and understands the value of high-quality customer service.
• Larry Stone
• The Courts - From the Wal-Mart case to the Visa-FDR lawsuit to the FTC's action against Certified Merchant Services, litigation was the buzz in the industry during 2002. Court rulings will continue to dominate industry news in 2003.

VOTE

Voice your opinions! Complete the ballot ONLINE here.

Deadline is April 30, 2003. Winners will be announced in the June 9, 2003 issue.