Wanted: ISOs
Attention ISOs looking for money-making opportunities
In Person Payments (IPP) is looking for ISOs to represent their service. IPP provides services to "The Great Unbanked," (whom we addressed in the previous article) or as IPP puts it, "The Underbanked." These consumers lack a banking relationship for a variety of reasons, including the decrease in inner-city banks and the increase in bank fees. As we've previously reported, these Americans use alternative avenues for their banking needs such as check cashing centers, money orders, or convenience stores. IPP is offering another way to service "The Great Unbanked" and it might prove profitable for you.
IPP contracts with merchants to process payments for a variety of entities, including utility companies and departments stores. Being able to pay an electric bill at the grocery still is not a revolutionary idea, but IPP is taking it a step further: They make it possible to pay a variety of bills in one location. IPP is not looking for people to service or maintain accounts; they're seeking established, qualified ISOs to sell the service to retailers, such as pharmacies, food markets, travel agencies, and department stores. The company plans to expand throughout the country and the speed of that expansion depends on the qualified ISOs, like you, they find.
The Program
It's really very simple. A merchant signs up with IPP and leases or purchases a PC to process transactions. (If the merchant has a compatible PC they can use the one they already have.) Then, a consumer goes to that merchant location with bills from Macy's, The Electric Utility, and AT&T, for example. He gives the cashier the bills and cash, and the cashier enters the information into the IPP computer, which prints a receipt for the consumer's records. The PC then dials IPP and transfers the payment information to IPP who forwards the data to Macy's, the Electric Utility, and AT&T. The payment is reflected on the consumer's Macy's, Electric Utility, and AT&T accounts. The consumer is charged $1 for each payment, which is cheaper than the $1.25-$5.00 fee for a money order and stamp or transportation to the billing location. Part of the fee goes to IPP and part goes to the merchant.
The utilities, department stores, and other BILLERS save money because they do not have to staff as many offices to process payments. CONSUMERS benefit because they no longer have to buy money orders, stamps, or find transportation to the different billing offices. The MERCHANT (IPP uses the term AGENT when referring to a merchant location) benefits from the commission payment and the increased foot traffic. They also have an edge over the competition because they are able to offer a service which their competitors cannot. Finally, you, the ISO benefit from the initial store sign-up and computer placement.
Currently, IPP has over 800 locations in the Northeast. Typical locations are pharmacies, check cashing centers, markets, travel agencies, and shipping centers. And, as in the above example, it isn't just utility bills which consumers can pay at any IPP location. Billers also include Allstate Insurance, Discover Card, JCPenney, Sprint, Spiegel Catalog, and Victoria's Secret.
According to IPP, their processing volume is increasing at a rate of 7% per month, and the company has even more aggressive plans for the future. To obtain their goal of building their network of merchant locations (which is currently expanding at a rate of 3 merchants per day) IPP is recruiting aggressive, experienced ISOs.
If this sounds like an opportunity for you, check out their Web site at http://www.ipppays.com or call IPP directly at (201) 696-5800.
