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vendors all complained and were hurt badly. Remember, a longer recovery. We are happy to report none of our
most of these companies had to stock up in case the merchants had to close shop as a result of the shutdown.
shutdown didn't go through or didn't last. They all had to
dispose of out-of-date merchandise. 3. Life throws many curveballs at us both in our personal
lives and in business, so it's important to have a plan
I don't believe there is anything any of us can do but elect for worst-case scenarios that could arise. Although we
officials to Congress that have a heart and understand the only experienced a slight drop in portfolio volumes, the
pain and suffering when they go along with shutting down government shutdown was a wake-up call for some MLSs
the government. When you are an out-of-touch wealthy and merchant acquirers. Payment companies working
person who only cares about what's going into your own with more government-related merchants, who would
pocket, you aren't going to care if people get badly hurt if typically be on the lower risk spectrum, saw a tremendous
there is a political gain. amount of risk. Although the shutdown was out of our
control, we remained optimistic and didn't let this distract
These types of events are difficult to plan for, similar to a us from the most important task: signing new merchants
snowstorm or hurricane. We end up losing some business and keeping existing ones happy.
for days or weeks, but like a snowstorm or hurricane,
things clear up. It's important to develop your business 4.The best protection for our company is to build a diverse
across the United States, not just within a 50-mile radius merchant portfolio. This means to ensure that our business
of your sales office. So when events that put an area out serves a variety of merchants in a large range of geographic
of commission occur – and they will – if your business is regions. While this has been part of our company's mission
diversified enough, you only feel a little of the pain. since the start, this most recent shutdown prompted us to
take a much closer look at our portfolio.
Maurice Griefer, CPP
Maverick Bankcard We realized how important it is to evaluate your portfolio
and monitor merchants on a regular basis. Just like
1.The recent government shutdown was the longest investing, you should never put all your eggs in one
in American history and has had a significant impact basket. For example, if the majority of our merchants were
on the U.S. economy in many ways. Close to 1 million located in the Washington D.C. area, it would have had a
people working for the nine Cabinet departments and large impact on our business. Because of this government
other agencies were either forced to work without pay shutdown, we have evaluated our portfolio and have
or furloughed. While some people and businesses begun reaching out to companies in new industries and
were affected more than others, the payments industry in various regions around the country that we have yet to
experienced indirect ramifications. cover.

Without paychecks coming in, affected workers cut 5. During this shutdown, I more fully realized the
expenses dramatically and spent much less at restaurants, importance of having a diverse merchant portfolio. Not
retailers and other establishments they would normally only is it important to focus on different industries, but it is
visit. Due to a decrease in overall consumer spending, also beneficial to target merchants in different geographic
many acquirers likely saw a drop in portfolio volumes, areas.
especially in cities and towns with a high concentration of
federal workers. For example, if your portfolio consisted mostly of
businesses in Ogden, Utah, which has the highest
Therefore, the only negative effect on our business was a concentration of federal workers in the West, you would
handful of these merchants who had a dip in sales during have seen a significant drop in portfolio revenue during
this shutdown. If we did not have a diverse merchant this shutdown. If your largest merchants were the national
portfolio in terms of both region and industry, we could parks, who collect an average of $400,000 daily in fee
have possibly seen a much greater impact. revenue, this past shutdown could have greatly affected
daily operations in your own business.
2.We don't anticipate significant long-term impacts on our
business or with our merchant customers now that the Aside from portfolio diversification, it's also important to
shutdown is over, and things are getting back to normal. put yourself in your customers' shoes. If merchants reach
Federal workers are finally receiving their paychecks out for help during a difficult time, similar to this past
and can now go back to their favorite restaurants or shutdown, it is in your best interest to go the extra mile
buy the things they held off purchasing. SBA loans will for them in their time of need. The payments industry
get processed, and business owners will get the needed is incredibly competitive, and providing your customers
capital to grow their businesses. with exceptional service is a key to high retention. Plus, it
may even lead to referrals down the line. Be empathetic,
However, I'm sure some business owners who were and don't forget the age-old Golden Rule.
more desperate for cash had to find alternative, but more
expensive money to borrow, and they will likely see
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