he year was 1988. Many agents on the street were frustrated by account-approval obstacles. But Chuck and Lisa Burtzloff believed that if they could take down those obstacles, agents would gladly join their new company. Through hard work, honesty and making good on their promises, Cardservice International grew and subsequently set the bar for other independent sales organizations.

"You can't find too many companies with the same name, same business model and same leadership that have been around for 15 years," says Chuck's son John, a Senior Vice President with the company. "One reason we stick out is that we have stayed the course and stayed focused."

That focus is clearly seen in CSI's reported figures. The company services 200,000 merchants, which translates to 125 million transactions annually totaling $12 billion in credit card volume. CSI attributes these impressive figures to its 250 sales offices nationwide, representing an army of 2,500 sales agents. It boasts 7,000 to 8,000 new accounts each month, all processed through its one-day approval system.

"We approve accounts better than anyone in the industry," John Burtzloff says. "We offer a lot of support for our sales agents and manage risk well. Our departments do a better job than anyone else in the industry for small to midsize merchants. And we do it with passion. "Our real advantage is our honesty. It breaks out in many different ways. We've added so much support and intangibles that an ISO couldn't get anywhere else. We establish relationships. We provide a roof over their head. We're not going anywhere, and in this industry it's nice to have somebody have your back."

And Cardservice does have the back of its agents. Among its 800 employees are 20 reps in a sales-support division that responds immediately to calls from agents.

"What makes it unique for our ISOs out there is that they have an opportunity to call who they need in the shop," says Burtzloff. "Most have a relationship with someone in our support department. For instance, if we have a high-risk account and funds need to be held, the agent that handles that particular account can call up right away and discuss the situation. Their rep works through the details. We make it easy to navigate through the building."

Hand in hand with support is training. At CSI headquarters in Moorpark, Calif., a dedicated sales training group conducts on-site seminars as well as hub seminars around the country throughout the year. Cardservice brings agents in and flies out to introduce new products and services as well as provide continuing education on what's working ... and what's not. Online training modules, CDs and other comprehensive materials also are standard for Cardservice ISO support.

One new program garnering considerable attention and support is Cardservice's online application, My Agent Office. MAO is a Web-based product and is all-inclusive for any agent to run a business successfully. It provides hands-on support ranging from managing residuals to ordering equipment to real-time reporting on account status.

While Cardservice's pricing may not be the lowest in the bucket, it's not the highest.

"Our costs are very competitive in our niche, and that niche is high risk as well as across-the-board small to midsize merchants," Burtzloff says. "We focus on what we are good at, and we are in the process of putting together programs that will be even more competitively priced.

"We plan on offering more services that ISOs can make money off of. The more we give them, the more money they will make and the more they will feel secure and continue to do business with us."

Whom does Cardservice want to do business with?

"Over the last year, our regional sales managers have been working extremely hard to develop relationships with anybody in the industry and even those that aren't in the industry that can mutually benefit from what we are creating. Additionally, we are focusing on the guys who are looking for a different opportunity as well as the new kids on the block. Our services benefit both the new guys as well as the seasoned agent. Some of those agents have large portfolios, and it was difficult for them to come aboard because we didn't have programs and services they could benefit from. Now we do."

Perhaps one the reasons that Cardservice looks a bit different is the recent acquisition by First Data Corp., the superpower in electronic commerce and payment services. First Data acquired the remaining 50% ownership interest in Cardservice International on Dec. 28, 2001. Since 1997, First Data had held a 50% ownership.

"We have been fortunate to have First Data behind us," says Burtzloff. "With lots of advantages and power behind us, we've been able to put together creative opportunities for our agents. They are a great group of guys. Doug McNary, our new CEO, came from First Data, and you couldn't get a better guy in this position. He is a sales guy, and it's unique to find a corporate guy with sales focus.

"First Data has always been a good partner, and now they are a great owner. They understand this market."

As for disadvantages of the new ownership, Burtzloff says, "We may be limited in the way we can go out and recruit different ISOs. Payment and residual structure has been a bit of a challenge, but we are still very competitive. Under Doug's leadership, we're rolling out new programs and definitely changing the landscape."

Those changes have not gone unnoticed by Cardservice sales offices. Rich Yanek, President of Cardservice of Virginia, has been part of the CSI family since 1992 and is optimistic about the new ownership.

"The changes I've noticed is that they are more focused on the success of sales, the long-term success of sales," says Yanek. "They are looking to make aggressive changes to be competitive with other ISO and agent offerings. These are positive changes."

Yanek sees many benefits in being associated with Cardservice, including underwriting and risk management.

"They take on risks we don't have to worry about," says Yanek. "ISOs deal with a lot of risks, and Cardservice absorbs all of it as part of their offer to agents. Their support in general is very strong. They have a great infrastructure that makes doing business pretty easy. And that support extends to our merchants as well."

Fred Dickstein, President of Cardservice of Gold Coast in Fort Lauderdale, Fla., echoes those sentiments.

"I've been affiliated with Cardservice since 1993," says Dickstein. "When I started in the business, no one but Cardservice approved merchant accounts. It was like going out on a boat and you caught all these great fish but weren't allowed to eat them. No one wanted swordfish or mahi mahi. Everything you wrote was critiqued.

"Then Cardservice came along and had the ability to approve it all. They looked for the best quality and still do it today. They look for a reason to approve rather than a reason to deny. That's the big difference from everyone else out there."

Dickstein has an interesting opinion about Cardservice's evolution:

"Chuck Burtzloff maximized Cardservice and took it to the heights of a private owner, higher than anyone else could take a business. When he reached that height, where else was he left to go? It had to be to a company with the strength of First Data to lead Cardservice to even greater heights.

"It's good to be affiliated with the tops in the business. There's no other company out there with better programs. Cardservice offers the best imaginable, and with the power of First Data and Cardservice combined, it's a whole new level in the bankcard processing industry." John Burtzloff admits that while "over the last year, there has been some uncertainty" about the First Data buyout, Cardservice is doing exceptionally well.

"We are coming out ahead," he says. "The biggest challenge now is getting the new programs out on the street. The message is, 'We have really changed and now there's some serious opportunity here.'

"The challenge isn't the new ownership. First Data didn't purchase a building or a bunch of merchants. What they bought was a proven sales and marketing force. This isn't a case of an evil stepmother coming in. Especially as Chuck's son I was a bit nervous, but Doug and First Data are the perfect fit. They understood what they purchased and are giving us the opportunity to grow. We couldn't be happier."

John Burtzloff believes Cardservice can convert that happiness into profits.

"The biggest challenge facing our industry remains competition and ease of a guy to become his own ISO," he says. "It could turn our industry into a commodities game, and that can only hurt us. I see some mergers working. I see the industry shrinking and coming back to a working level. However, you can't keep dropping your prices. If you drop costs, there will be no money left for anyone to make. Let's level it out and give merchants more benefits, better equipment and better service rather than the cheapest price.

"For Cardservice, I definitely see an exciting year after we've implemented our marketing plan and programs. We are going to go out and do a heavy recruiting push. We're going to say, 'Here are our changes.' Whoever wants to come aboard will be in for an exciting ride."

It's all summed up in the Cardservice philosophy, which is backed up by the company's history. Times change, but what worked for the company in 1988 is still working. "We are creating a great environment for sales agents, a place easy for them to do business, as well as creating a different opportunity for ISOs not with us to be extremely special," John Burtzloff says. "That was our philosophy then, and it is even more so today."