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CoverStory
Perhaps the most important development is that these
large banks will lose their monopoly on the customer
relationship and the data and payments associated with
it. We know that it can take years for these disruptors to
scale, but it will happen. If you are an ISO, your future
profitability depends on two things: lowering merchant
attrition and increasing your throughput.
Today, the average merchant changes processors every
three years. If consumers buy from Amazon or pay with
apps on their mobile device that do not run on the card
brand rails, your income is at risk. The obvious thing to
do is to call on your merchants regularly and ask them
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what they want that they do not have now. Be sure to
communicate the value that you add and look for ways to
add new value. If your merchants really understand the
work you do to process their payments, and they feel that
they have a personal relationship with you, they will be
less likely to leave in three years.
Maurice Griefer
Maverick Bankcard Inc.
1. I am certainly excited about the current economic state
and optimistic about the future, considering how busy
of a year we had, at least through the remainder of 2018.
However, I like to take everything with
a grain of salt and prepare for possible
downturns in the economy, which is
critical in getting through the tougher
times. The economy is forecast to slow
in 2019, and with speculation of an
upcoming recession in the next few
years, it is critical to focus on the present
and make things happen now. It's also
important to note that many merchant
acquirers have different portfolios and
target different industries, so changes
in the economy can impact acquirers
very differently.
2. This year has been one of the busiest
for us, so I would say that we are see-
ing the same kind of positive economic
gains as the overall economy. However,
that is not to say that we haven't had
some clients close shop or see a de-
crease in sales year-over-year. Further-
more, some of our success cannot be at-
tributed to the current state of the econ-
omy, just our hard work paying off at
a coincidental time. What's great about
the payments industry is that business
owners need us, and we are a critical
part of their growth (unless maybe they
are a cash-only business). When our
customers win, so do we. With the in-
flux of new payments technologies as
well, I think this is a very exciting time
for our industry, as there is a lot of op-
portunity out there.
3. Right now is a great time for ISOs and
MLSs to take advantage of the current
economic state. My mindset is centered
on how we can keep new business
coming in and prevent attrition when
the economy dips or we enter the next
recession. With that in mind, we are
growing our sales channels, seeking
new partnerships and referral sources,
and exploring new markets to serve.
When the economy eventually dips,
business owners' priorities usually