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wallet payments, and only 16 percent of consumers retail segment and 8.6 percent for the overall middle market
have tried to use one. This might be because it's (reported by the 3Q 2018 Middle Market Indicator).
easier to insert a card into a terminal than to take
out a device and activate an app. Mobile payments E-commerce is growing. Malls are evolving into customer
will become ubiquitous at some point; it just hasn't experience destinations. Omnichannel commerce is
happened yet. As for real time payments (RTP), two growing. Amazon's growth will level out because, as Paula
entities are competing: The Federal Reserve and The Rosenbloom said, in Retail Systems Reseller, "No market is
Clearing House, which is owned by the 11 largest infinite, and every business has to ultimately make money."
banks. TCH has an RTP solution, but it reaches only Retailers have matched Amazon, the playing field has been
about half U.S. checking accounts. If you add up all leveled, and Amazon still has to deal with shipping.
the commercial banks, credit unions and savings and
loans, there are 11,000 financial institutions in this As ISOs and MLSs, call on middle market retailers in person
country. And community banks will be skeptical of and explain how you can help them make sense of all the
sending transaction to their direct competitors: the new developments in payments. They will want to listen to
largest banks in the country. The Fed doesn't have an you, because this sort of thing cannot be explained over the
RTP product yet, but a solution is in the works. phone, and these retailers can't figure it out themselves. Go
to the stores; see what merchants are doing now, how they
The automated clearing house (ACH) has been around are doing it and what their pain points are. If you listen
for a long time and is not a government entity. It started carefully, you will help merchants find solutions, and you
as an industry work group founded by the largest banks will get the accounts. And that opportunity is not going to
so they could settle transactions among themselves. change in the coming year .
These banks are called originating depository financial Brandes Elitch, director of partner acquisition for CrossCheck Inc., has been
institutions. They hold over 75 percent of all checking a cash management practitioner for several Fortune 500 companies, sold
accounts and are the largest receiving depository
financial institutions for the same reason. They call the cash management services for major banks and served as a consultant
shots. to bankcard acquirers. A certified cash manager and accredited ACH pro-
fessional, Brandes has a Master's in Business Administration from New
Typical recurring ACH debits to consumer checking York University and a Juris Doctor from Santa Clara University. He can be
accounts are monthly bills that must be paid on time: reached at brandese@cross-check.com.
life insurance, electricity, home security system,
car loan, credit cards, etc. Debiting an account is far
easier for billers than preparing and mailing paper
bills, waiting for them to arrive, and then waiting for
customers to write checks and mail them back. As for NO GOOD MERCHANT
ACH credits, most people now have direct deposit of
payroll; that is what's driving that number. LEFT BEHIND

The type of payment used is correlated to the merchant
taking that payment and the consumer making
the payment. If it is a fast food store, discount store, For over 30 years, Electronic Merchant Systems has been
supermarket or gas station, the debit card will be the dedicated to ensuring the success of their Agents. Learn
primary form of payment. If the ticket price is over a how we can help you grow your business and portfolio.
few hundred dollars, most consumers will use a credit
card for the loyalty or rewards points. If it's a high
dollar sale, the merchant will prefer a payment that LEARN MORE:
does not involve interchange.

What this means for ISOs and MLSs • CNP Specialists 866.272.5247
emsagent.com
When discussing what this means for the industry's • Industry Leading Portfolio
feet on the street, I want to begin by putting to rest Management Tools
another canard: the retail apocalypse caused by the • Retail Experts
dominance of Amazon, too many malls, dying brands, • Latest Next Day Funding
the demise of Sears, etc. ISOs thrive on serving the 7 Window in the Industry
or 8 million small businesses that are real businesses,
not tax shelter entities. According the National Retail
Federation, overall U.S. retail sales have grown almost
4 percent annually since 2010. Retailers in fast-moving
consumer goods, specialty goods and food service are
thriving, growing over 10.5 percent over the last year,
compared to 5.9 percent for the whole middle market

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