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Selling in the digital age

Published September 21, 2011 | By DLaszig

Remember selling merchant services when all you needed were paper applications, a few sample merchant statements, and some pictures of countertop and portable terminals? Times have changed; we’re not a one-size-fits-all business anymore. Our profession has evolved from a cottage industry of regional banks into a multibillion-dollar global enterprise. Merchant level salespeople (MLSs) need more knowledge and creativity to compete in today’s high-speed, always-on world where much of our commerce is conducted digitally.

Technology changes all the time, but the hallmarks of a robust processing system remain the same, year after year. The best way to convince a merchant to upgrade a dated but reliable system is to emphasize the qualities that make the upgraded setup secure, flexible, scalable and future-proof.

Security is paramount

When it comes to selling processing systems, security is job one. The most advanced solutions are no less immune from data breaches than are legacy devices like the Tranz330 and T7P.

It’s not only the technology that needs to be compliant. One of our responsibilities is to educate our merchants on the right way to transmit, process and store cardholder data. According to Chris Bucolo, Senior Business Development Manager at ControlScan Inc., “We have seen more and more evidence that ISOs and acquirers are integrating PCI compliance discussions into the sales process, no longer waiting until after the merchant is boarded. Paying attention to the compliance status of systems, applications and the merchants themselves has taken center stage during the sales process.”

Flexibility is a must-have

Why is flexibility a must-have for merchants these days? Simply stated, without the ability to continuously adapt to the increasingly fluid, evolving scope of payment technology, merchants will be stuck with obsolete, outdated equipment.

The warp-speed of innovation is affecting all industries: Health care, transportation, education, military, and government professionals use secure, enterprise-level wireless networks that enable office and remote workers to stay connected and exchange documents and data through email, text messaging and geolocation technologies.

Merchants need the same kind of integrated environment where updates to remote devices can be performed from a central network host quickly and seamlessly. Such an environment would enable merchants to react quickly to emerging trends in social media, gift and loyalty programs, and the value-added applications that are an integral part of most processing systems.

Flexible processing environments are ultimately green and self-sustaining ecosystems, continually adapting to merchants’ changing requirements and needs.

Merchants who process through gateways have a high degree of flexibility and choice. Credit card transactions from a diverse population of devices can be viewed in real-time from a secure access point. Equipment swaps, software modification, wireless activation and device download can all be controlled from a secure portal with greater ease and without any disruptions to service.

Multi-application environments, where downloads of ancillary programs can be done without disturbing primary payment programs, provide flexibility and business continuity. Equipment rentals and swap-out programs are other ways to keep merchants in the most flexible and up-to-date processing environments. Many of these merchant clubs and rental programs include help-desk support and overnight equipment replacement in their monthly fee

Virtual terminals are scalable

Growth is imperative to any business. Innovations in technology have accelerated POS product life cycles, lowering life expectancies of many terminals and PIN pads due to evolving compliance standards and communications protocols. Considering how quickly our technology is changing, how can we provide services that expand as our merchants grow?

Many merchants looking for scalability are using virtual terminals. These systems offer merchants the option of buying what they need when they need it, with increased capacity available on-demand. These Internet-based products, typically priced with monthly gateway and per-transaction fees, are an affordable alternative to countertop and portable single-use devices. They can be accessed through smart phones or laptops or from almost anywhere through a secure web portal.

Services, managed remotely by professionals at centralized controllers, are easily accessible through web browsers. Managing capacity is as simple as adding or removing users. Batch processing options are available for merchants who manage high volumes of transactions. Reputable gateways and cloud-based networks absorb some but not all liability for Payment Card Industry (PCI) Data Security Standard (DSS) compliance and secure management of cardholder data.

You can future-proof your portfolio

Helping merchants build secure, flexible and scalable processing systems is a long-term proposition that extends over the lifetime of the relationship; it’s not a “one-call close.” Merchants are too focused on their core businesses to spend time researching the latest trends in payment processing; they rely on timely, valuable recommendations from a trusted network, noted Alexandra Best, Vice President, Marketing at RewardStream Inc.

“The trusted network is assuming an increasingly important place in the purchase decision life cycle across many industry sectors,” she said. “In a world where consumers are in control and information’s there for the taking, the word of a trusted advisor with experience of a product or service is critical to validating the decision.

“Today’s consumer places the same level of trust in family and friends as they do a close contact in a social networking site. All businesses must consider how trust-based networks – or what we refer to as recommendation marketing – will figure in their marketing and sales efforts going forward.”

In this age of relationship marketing, the payment professional’s ultimate goal should not be closing sales but opening relationships, where becoming part of a trusted network is a true value proposition. It’s not only merchants who are looking to MLSs for guidance. We’ve evolved into a broader community where we all advise each other on products and services.

Joining this conversation is a logical first step toward finding common ground, where MLSs and merchants can partner to build future-proof networks and look out for their shared best interests in the expanding payments sphere.

Originally appeared in The Green Sheet, Issue 11:02:02, February 28, 2011.

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Contactless taps new markets

Published November 28, 2010 | By DLaszig

It’s faster than cash, so what’s taking contactless so long to become a mainstream payment method in the United States? Most payments industry analysts agree that contactless technology, which is easy to implement and popular worldwide, may take longer to be fully embraced by U.S. merchants and consumers.

Thanks to the efforts of card brands and their technology partners, we’ve graduated from early pilots and processor certifications to an affordable family of contactless-ready terminals and peripheral readers. Consumers can confidently tap or wave credit cards, key fobs and assorted devices in lanes and counters across the country.

Slow start for fast payments

So why aren’t more people doing it? It’s taking time for consumers to notice the contactless cards on their key chains and in their wallets and understand the benefits of using this alternative payment method. Retailers have been cautious about adopting contactless technology, too. Best Buy Co. Inc. mandated only PIN-based contactless transactions, leading to the discontinuance of Visa Inc.’s payWave at its stores. Most contactless cards are dual-purpose, supporting both contactless and mag stripe, so currently Visa cards can be swiped, but not waved at Best Buy.

Also, unlike markets in Asia and Europe, where contactless payments are popular, the infrastructure in the United States has dampened contactless adoption because it is built more on mag stripe reader technology than on smart card and microprocessor technology.

Contactless taking hold

The rollout may be slow, but there are signs the U.S. market is ripe for contactless payments. Beyond the faster transaction times, there’s more security and control with contactless payments, because the card, key fob or smart phone used at the POS never leaves consumers’ hands. Contactless is also a more fraud-proof technology: the microprocessor used in contactless payments is harder to hack into than traditional mag stripe schemes. Contactless payments can also be paired with gift, frequency and loyalty programs to create rewards and incentives.

Additionally, along with the success of pilots of Visa’s payWave, MasterCard Worldwide’s PayPass, American Express Co.’s ExpressPay and Discover Financial Service’s Zip, there are ongoing systems integration efforts at the host, carrier and gateway level that will seamlessly fold these and other emerging technologies into a congruent, commercial processing framework. Here are additional indications that contactless acceptance in the United States is catching on:

* Our increasing mobility: The primary game changer will probably be the push to pay by mobile phone. Europe, Southeast Asia and other regions have seamlessly incorporated mobile phone payment transactions into legacy processing infrastructures.

* Killer form factor: Earlier entries, such as the key fob or the credit card with embedded chip, were cool but got lost in the shuffle. We’re running out of room on the key ring and in the wallet. So many plastic products compete for our attention that it’s easy to forget which ones have embedded chips that can be tapped or waved. In contrast, we have only one or two mobile phones. The tipping point will occur when more people realize they can leave their wallets at home.

* There’s an app for that: As we depend more on mobility and connectedness, our mobile devices have become much more than phones. They are compasses that navigate the changing landscape of interconnected mobile enterprises. Our always-on digital assistants help us stay connected through email, social media, geolocation and mobile networks with ever-increasing voice and data capacities. Adding payments to the mix is a no-brainer.

* Enhanced security and privacy: When a mobile phone is used as a contactless payments device, it automatically becomes more secure. The microprocessor contains an identifier that’s linked to sensitive cardholder data, but the details and bank information registered to the device are stored remotely. Transactions are more secure and compliant with most Payment Card Industry Data Security Standard requirements.

* Easy to sell and install: Selling and supporting smart phone transactions is relatively easy. Many countertop terminals and customer-facing devices are already contactless-enabled. Peripheral contactless readers can be added to late-model hardware and virtual processing systems. The function is included in most processing software, requiring only a partial download or parameter change and no heavy investment in equipment or training.

* Continuing contactless initiatives: A pilot program, code name Mercury, involving AT&T Inc., Verizon Wireless Inc., Barclays Bank PLC, and Discover will test smart phones equipped with contactless microprocessing chips at POS readers in select markets in 2011. Consumers will be able to wave or tap their phones to initiate payments. And, in a pilot in the New York City subway system, MasterCard and Visa are testing contactless MetroCards that can be waved instead of swiped at turnstiles.

A trend to watch

Contactless initiatives, the relentless efforts of manufacturers of contactless chips and readers, and the increasing adoption of mobile technology will continue to drive mass acceptance of contactless technology.

The growing contactless trend promises increased adoption of all forms of contactless payments as consumers and merchants become more comfortable with tapping and waving. We’re even seeing contactless options at self-attended venues such as pay-at-the-pump, quick-service restaurants and vending machines. So stay alert; you don’t want to miss this important new wave.

Originally appeared in The Green Sheet, Issue 10:09:02, November 22, 2010.

©Dale S. Laszig, Castles Technology Co., Ltd.

Please include this copyright notice when reprinting this article, and link back to this site when reprinting or quoting.

Posted in Credit Card Processing, EFT, Mobile Web, Next Generation, Point - of - Sale Technology, Smart Card, Uncategorized | Leave a comment

Command performance meetings

Published October 18, 2010 | By DLaszig

Can you remember the last time you felt excited about going to a meeting? Perhaps it was an invitation with a paper umbrella announcing a company bash or the unveiling of a new product line. Meetings can be meaningful and productive, but they too often miss the intended mark.

A meeting, like any theatrical production, has three essential ingredients: timing, action and plot. If any of these are lacking, the reviews will not be kind.

Avoid common pitfalls

Here are the most common complaints among critics:

They take too long: As we all know, time is money, so when we leave our customers, friends and families to attend a meeting, we’re looking for a return on investment (ROI). We hope to gain knowledge that can be applied toward increasing productivity and staying ahead of our competition.We’ve all suffered through lengthy performances where speakers promised to be brief. We’ve seen the devastating consequences of “meeting creep” brought about by presenters exceeding their time limits, causing other speakers to be bumped and meeting agendas scrapped.Most of us would rather leave early than take long breaks. High-level overviews are preferable to complicated trainings that go into too much detail. Hand-outs with links and recommended reading extend a meeting’s useful life, perpetuate its objectives, and enable us to continue our research and follow-up at our own pace – long after the event has ended.
They are boring: Good meetings have fast-moving agendas presented by knowledgeable professionals who don’t take themselves too seriously. Presenters don’t have to be professionally trained actors to be fun and interesting. They just have to care about their audience and subject and convey that in an animated way.

They have technical difficulties: Props and technology can enhance a meeting’s entertainment value. Short, three-minute video clips and interactive exercises can spice up a presentation, as long as they support the main theme of the event and illustrate a point. Long videos can turn an engaged audience into couch potatoes, and distribution of free items as rewards for those willing to speak up can alienate the introspective geniuses in the room while rewarding the shouters.

In the absence of a face to face meeting, webinars provide an effective medium for interactive discussions because they support graphic presentations and allow for multiple presenters.Video conferencing, which works best when used in small groups, can sometimes pose problems. The casual spontaneity of webcams is viewed by some multinational companies as too informal and unprofessional.Video conference technologies can be useful in building rapport within cross-functional teams, but they could prove counterproductive when used to communicate with overseas clients. In the latter case, visual distractions could undermine a meeting’s agenda and priorities.
They lack focus: It’s a good idea to share a meeting’s primary objectives ahead of time, as well as the allotted times for presentation, discussion, question-and-answer periods and breaks. Having a set schedule and list of talking points will make it easier to stay on track.Maintaining a meeting’s focus takes advance planning and gets easier with practice. Effective managers circulate an agenda before the meeting begins. Once the meeting is in session, they check in with attendees to make sure that everyone is in sync, and they stay on course by relegating less pertinent questions to separate, offline discussions.

Put on a show

A good meeting resembles a three-act play, with each act contributing equally to the structure and integrity of the event. Here are some ways to make each act a bravura performance:

Act one: Set the stage: Insist on everyone’s undivided attention. Just as we have only one chance to make a first impression, a presenter or moderator must take control of the meeting at the very beginning to establish credibility and ensure participation. It’s demoralizing to a presenter and damaging to a meeting if attendees are watching laptops and smart phones instead of the speakerReview the agenda. Make clear, inclusive opening statements that advance meeting objectives and make all participants feel directly involved in the event. Share the rules of engagement. The meeting chair should advise whether it’s preferable to ask questions during the formal presentation or wait for a designated question-and-answer period.
Act two: Engage and motivate: Make the meeting interactive. No one likes a talking head. The most productive meetings are those that engage participants, solicit feedback, and reward new ideas or correct answers. And make the meeting fun. The best meeting I attended was a scripted product demo with music and dancing that occurred in the midst of a conventional conference. The audience jumped to its feet, singing and dancing through the rest of the production. Years later, attendees are still talking about it and buying the products.Also, state the value proposition. What is the ROI for attendees, and how will the information or action plan shared in this meeting directly benefit them?
Act three: Summarize and agree on next steps: Close on the meeting objectives by summarizing main points. If your meeting is a sales presentation, ask for the order. If it’s a call to action, agree on next steps. Distribute handouts to extend the meeting’s life and encourage follow-ups. Resolve to execute on all action items to make the goals of the meeting a reality.

Grab the spotlight

Finally, it’s no accident that carefully planned meetings tend to be more memorable than hastily arranged assemblies. But even spontaneous gatherings can be productive and successful if a bit of theatricality is applied.

Devising a theme for the meeting will add a sense of fun and adventure to the intended call to action. Good timing, combined with audience engagement and a strong story line, will set the stage for a command performance.

Originally appeared in The Green Sheet, Issue 10:09:02, September 27, 2010.

©Dale S. Laszig, Castles Technology Co., Ltd.

Please include this copyright notice when reprinting this article, and link back to this site when reprinting or quoting.

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Technical details: What to share and what to spare

Published September 2, 2010 | By DLaszig

By Dale S. Laszig

Castles Technology Co., Ltd.

Have you ever felt like a deer in the headlights during a whiteboard exercise? Merchants can feel that way when we get too technical. Most wouldn’t know the difference between an 8-bit and 32-bit ARM processor. They get brain freeze trying to read a self-assessment questionnaire (SAQ). They rely on merchant level salespeople (MLSs) to replace broken equipment. They just want to keep transactions flowing; they aren’t interested in becoming payment processing experts.

But there’s a downside to avoiding technical details. Merchants who don’t understand our services will be more susceptible to competitive offers and fraudulent transactions. Taking time to educate them will build stronger relationships and pave the way for referrals; it will also help them identify the warning signs when unscrupulous customers or solicitors walk through their doors.

So how can we share just the right amount of technical information with our prospects and customers, without overwhelming them or losing their attention? The key is to make our technology relevant by observing it from a merchant’s point of view. Features and benefits are only meaningful when they answer a need or solve a merchant’s problem.

Following are guidelines for informing nontechnical audiences about our industry’s fees, regulations and technology.

Discussing interchange

Despite the more than 100 variations of qualified and nonqualified bankcard transactions in our current processing environment, many merchants will still ask, “What’s your rate?” To foster understanding:

* Share a chart of current interchange rates during sales calls to establish transparency and trust while demonstrating the complexity of interchange. Also, show prospects a sample merchant statement to explain your own pricing.

* Encourage merchants to visit Visa Inc.’s and MasterCard Worldwide’s website sections devoted to merchants at http://usa.visa.com/merchants/index.html#/page1 and www.mastercard.com/us/merchant/index.html, respectively, to get a detailed overview of current interchange rates and card brand rules.

* Spare the details of each individual interchange category to avoid losing your prospects’ interest and your own momentum as you close sales. You can honestly say that interchange is a work in progress subject to ongoing review by the card brands and emerging government oversight.

Talking about security

Considering how much resource processors, ISOs and third-party providers have invested in understanding and implementing the Payment Card Industry (PCI) Data Security Standard (DSS), how can we condense this information into pertinent sound bites to educate our merchants? Here are some tips:

* Share the PCI bottom-line message of protecting cardholder data. Emphasize that the PCI DSS protects merchants as well as their customers. Many merchants who have heard about the high-profile security breaches at major retailers may not realize the highest percentage of fraud is occurring at Level 4 merchants like themselves.

* Explain why it’s no longer acceptable or legal to store receipts that have complete card numbers, expiration dates and addresses on them.

* Spare the implementation details. Build a case for creating a security strategy and explain that PCI is not a one-size-fits-all solution. Convey that the process begins with an SAQ but doesn’t end there; the SAQ will clarify and expose weaknesses in a merchant’s processing environment so the right security tools can be applied.

* Refer merchants to your company’s chosen PCI specialists who can work directly with them to create a security framework that not only meets current standards, but is also flexible enough to meet the changing requirements of the evolving payments sphere.

Homing in on hardware

If you were a merchant, what would you look for in a credit card processing system? Would you care more about looks or performance, high speed or low price? Answers will differ according to the personalities, preferences and priorities of each customer.

Your first priority is to understand each customer’s motivations. Too many MLSs err in recommending a product to fit the needs of a business instead of a person. A small business owner with big aspirations might be offended if you suggest a low-end credit card terminal for processing. Similarly, a high-profile retailer operating on low margins and a reduced budget is not necessarily a candidate for a fully loaded, customized processing system.

Here’s what to do:

* Share an overview of your product line, briefly highlighting the advantages of each device. Reassure customers that the system they invest in today is scalable and designed to grow in direct proportion to their business requirements. Make them aware of buyback or upgrade programs your company offers.

* Avoid technical details that can be easily found on the reverse side of a product brochure by those who care about megahertz, Underwriters Laboratories listings and other data that’s of more use to engineers than business owners. Focus on the business side of things by emphasizing profitability, trustworthiness and ease of use.

Suggesting the right software

Internet connectivity has increased demand for credit card processing applications with multiple access points that can be incorporated into larger enterprise operating systems.

Merchants can choose from an array of processing software, from traditional countertop and mobile terminal applications to virtual terminals and payment applets that blend into accounting software and larger POS management systems.

There is so much choice in today’s processing software that merchants can become overwhelmed and have difficulty making decisions. The best approach in helping merchants choose the right fit in processing software is to get a sense of their requirements. To do this:

* Spare a complete rundown of every different type of software and operating system on the market. Focus instead on the systems that are most appropriate to your clients’ businesses.

* Share how a new system can save time, solve a problem or create new revenue streams, and merchants will be more motivated to make the software investment.

Whether you are managing a territory or a team of agents, your ability to organize the details of your business will be a key factor in your success. Knowing what to share and what to spare will pave the way to peak performance.

Originally appeared in The Green Sheet, Issue 10:08:02, August 23, 2010.

©Dale S. Laszig, Castles Technology Co., Ltd.

Please include this copyright notice when reprinting this article, and link back to this site when reprinting or quoting.

Posted in Banking, Credit Card Processing, EFT, Point - of - Sale Technology | Leave a comment

Need intelligence? Tap the feet on the street

Published August 12, 2010 | By DLaszig

By Dale S. Laszig
Castles Technology Co. Ltd.

Want to know what’s happening in payments right here, right now? Ask a merchant level salesperson. MLSs know the players: merchants, acquirers, manufacturers, distributors and value-added resellers. They know what’s hot and what’s not. If you want to craft strategy, invite a few MLSs to your next focus group meeting. Insights on buyer behavior from the feet on the street will bring any situational analysis or marketing campaign into sharper focus.

MLS feedback can save you time and money, whether your strategy is functional, operational, competitive or market-specific. When you share your concept with people who are directly in touch with end users, you’ll find out if your idea has any “street cred.”

From initial concept through implementation, MLSs can help business owners create and execute strategic initiatives. Let’s look at how business owners can leverage the knowledge and real-world experience of MLSs to create relevant, sustainable business practices and strategies.

What’s our current situation?

Effective strategy begins with a situational analysis of the payments industry and market. Periodicals, blogs and newsletters provide a dimensional snapshot of current trends, compliance issues and competitive information. Reporting is compiled from a variety of sources, checked for accuracy and designed to be read on the run by busy payment professionals.

Breaking news from MLSs will validate and clarify other media sources while bringing the added benefit of direct feedback from merchants. This feedback is especially valuable in the payments industry, where six degrees of separation distance the many players in the POS value chain – from manufacturers and distributors to the end users of products.

Many large resellers have a policy of no direct selling or communicating with merchants. They rely on secondhand reports from sales channel partners and help-desk professionals to learn how products are being received. Instead of trying to back into this intelligence with percentages of product failure and return, communicate with MLSs to learn merchant likes and dislikes. What are they hearing from merchants on their daily rounds? What product features and benefits would help them sell more?

Where do we go from here?

Once the situational analysis of your industry and company is complete, it’s time to get tactical. How will you define your company’s strategic vision? How will you identify the steps to get you there? Executives have many things to consider at this critical juncture, including creating the right kind of infrastructure to support growth and encourage innovation.

The ability to react quickly and effectively manage change is a must in today’s fast-moving payments industry. Because of their competitive nature and closeness to merchants, MLSs are frequently the first people to learn about new industry and technology trends. Having one or two MLSs on your advisory board is a good way to keep your finger on the payments industry’s pulse. Having worked with so many different kinds of businesses in various stages of development, including their own, MLSs offer a seasoned perspective on the marketplace and their own observations on winning strategies.

How will we get there?

MLSs will candidly rate strategic initiatives, ad campaigns, and products and services, and let you know if tweaks are needed. It would be a mistake to overlook the influence these sales professionals have on product adoption. MLSs help merchants make informed decisions based on their confidence in product performance.

MLSs have also taken risk to a whole new level. Many boldly experiment with new technology instead of waiting for their ISOs or processors to bring tested and certified solutions to market. Some of their experiments have been wildly successful; others have failed. All have taught them important business lessons. Their experience is valuable because it blends general best business practices with specific payments industry know-how. That blend makes them perfect allies during brainstorming sessions.

What’s our competitive advantage?

Which products and services will differentiate your company from the competition and help you build brand awareness? MLSs are adept at incorporating value-added programs – such as electronic gift and loyalty, check guarantee and verification, dynamic currency conversion, and bill payment applications – into traditional credit card processing. These programs earn customer loyalty as well as increased residual income streams.

Benefit from their experience and work directly with professional MLSs to create the right blend of payment and nonpayment solutions for the merchant community. Ask for their input, and put new ideas on the drawing board. Try to break out by coming up with a unique product or service that will capture the imagination of merchants. Become the pioneering company that others emulate.

How do we continue to grow?

After you have achieved recognition for your winning strategies, you may find it challenging to hold on to – and build on – your success. Companies in the payments sphere need to constantly reinvent themselves to keep up with shifting priorities and practices. This includes anticipating change, reacting promptly to it and being out in front with innovative products and services.

If being on the “bleeding edge” is not a part of your current business model, you can get ideas by watching the primary “change agents, ” the companies that seize the offensive, set the pace for our industry and spur the rest of us to follow.

I guarantee these leaders have done their due diligence by observing the merchant-level playing field from multiple points of view, including the wise and knowledgeable perspectives of our MLS colleagues. Corporate strategists would do well to follow in the footprints of our feet on the street. Through their tireless efforts and sheer ingenuity, MLSs continue to define the best path forward.

Originally appeared in The Green Sheet, Issue 10:07:02, July 26, 2010.

©Dale S. Laszig, Castles Technology Co., Ltd.

Please include this copyright notice when reprinting this article, and link back to this site when reprinting or quoting.

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Beyond Professional Courtesy

Published August 12, 2010 | By DLaszig

By Dale S. Laszig
Castles Technology Co. Ltd.

The term “professional courtesy” can be traced back to the times of Hippocrates, when physicians treated each other’s families at no charge. The practice has evolved over the centuries to embrace a broader definition of special favors. Professional courtesy in the payments industry may include waiving cancellation and restocking fees and extending introductory offers to new customers.

Another important kind of professional courtesy is the way we treat each other in the workplace. Elizabeth L. Post, granddaughter-in-law of Emily Post, defines the golden rules of business as people “helping each other across all levels and treating one another with courtesy and thoughtfulness.”

On-the-job conduct is just as important as industry experience and product knowledge. Elizabeth Post wrote in the introduction to Emily Post on Business Etiquette, “Whether you are making a first impression during a job interview or representing your company to others, your manners are often counted as highly as your knowledge of your subject matter or your brilliance in the conference room.”

Six rules to follow

In times of economic uncertainty merchant level salespeople (MLSs) can establish credibility and help restore trust in financial service institutions by incorporating the following six rules into their personal and professional lives.

Rule One: Be punctual

Arrive on time or early to appointments and set the tone for a meaningful exchange.

Earning new business is tough enough; why reduce the odds by showing up late? Effective time management is the hallmark of a competent executive. Tardiness sends the wrong message. It broadcasts that you don’t respect other people’s time. Arriving late is counterproductive and puts the latecomer on the defensive because he or she must start the meeting with excuses and damage control.

Rule Two: Practice thoughtfulness

Be the one who carries out random acts of kindness.

Have you ever received a handwritten thank-you note? You may have one on display on your desk or filed away for safekeeping. Written notes are a rarity these days; that’s what makes them special.

Savvy MLSs routinely send thank-you notes to merchants, whether or not they win the business. Why? Prospects give us time they will never get back. They invest in us even when they don’t buy our product. Personalized notes differentiate thoughtful agents from those so intent on getting deals that they ignore the people who help them along the way.

Rule Three: Cultivate empathy

Begin sales presentations with questions.

Thoughtfulness begins with empathy, and empathy takes practice. It’s “Habit Number Five” in Stephen Covey’s best-selling book, The Seven Habits of Highly Effective People, in which the author appropriately advises, “Seek first to understand, then to be understood.”

Empathy is a prerequisite to consultative, solution-based selling. Covey wrote, “Although it’s risky and hard, ‘seek first to understand or diagnose before you prescribe’ is a correct principle manifest in many areas of life. It’s the mark of all true professionals. It’s critical for the optometrist; it’s critical for the physician. You wouldn’t have any confidence in a doctor’s prescription unless you had confidence in the diagnosis.”

Rule Four: Practice reciprocity

Get in the habit of thinking, “Who else can benefit from this?”

Reciprocity, defined as a mutual exchange of privileges, is another aspect of thoughtfulness. Unlike quid pro quo – the assumption that for every good action there must be an equally positive and immediate reaction – reciprocity is based more on compassion and less on keeping score.

A sincere and compassionate interest in others is a prerequisite to authentic networking, where sharing ideas and information can lead to greater opportunities.

Rule Five: Show respect

Resolve to treat others as you would want to be treated.

True leaders treat people equally and hold them in high regard, regardless of their stations in life or what they are able to bring to the table. Abraham Lincoln was known for his humility and his respect for everyone with whom he came in contact. In an address to German immigrants in Cleveland, Ohio in 1861, Lincoln stated, “I hold the value of life is to improve one’s condition. Whatever is calculated to advance the condition of the honest, struggling laboring man, so far as my judgment will enable me to judge of a correct thing, I am for that thing.”

Rule Six: Volunteer

Join like-minded professionals and make a difference in the payments industry.

The best way to move up in your organization is to study the issues that affect your company’s future. Pressing issues such as government control of interchange can have an immediate and lasting impact on all of us. We can’t afford to look the other way. Send an email to your state representative and make your opinion count. Aligning your interests with your company and industry will place you side-by-side with your company’s management as you work together to achieve common goals.

The art of the deal

How would you like to be remembered by your colleagues, co-workers and customers? Hippocrates left us a multifaceted legacy of best practices, professional courtesy, and the Hippocratic Oath, a timeless message that’s relevant for all professions, including ours. An updated version of the oath, which I found at www.pbs.org/wgbh/nova/doctors/oath_modern.html, was written by Louis Lasagna in 1964 and is used today in many medical colleges. It states:

“I swear to fulfill, to the best of my ability and judgment, this covenant:

I will respect the hard-won scientific gains of those physicians in whose steps I walk, and gladly share such knowledge as is mine with those who are to follow. . .

I will remember that there is art to medicine as well as science, and that warmth, sympathy, and understanding may outweigh the surgeon’s knife or the chemist’s drug.”

Let’s honor the pathfinders who went before us in the payments industry and remember that there is also an art to selling merchant services. And let’s make professional courtesy mean a good deal more than just a good deal.

Originally appeared in The Green Sheet, Issue 10:06:02, June 28, 2010.

Please include this copyright notice when reprinting this article, and link back to this site when reprinting or quoting.

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If clicks could talk: Five things they’d say about selling

Published May 8, 2010 | By DLaszig

MLS agents are the Kings and Queens of selling. We build our empires on millions of transactions and every one of them is a sale. Every transaction is a successful close. Every time someone says yes to our merchants, we all do a little bit better. Imagine all the sales that occur every second, over dial lines, Ethernet/IP, WiFi and cellular networks. That’s an oceanic current of positive energy, and it’s keeping our lights on, too!
Imagine if we could sell that much, that fast. Imagine walking into a new merchant, having a handshake and going back to the office with an approved merchant application. The good news is: It really can be that simple! If we build the right kind of referral networks of happy customers, they will begin to look a lot like the electronic networks that manage all the credit card transactions. That’s right, “If you build it, they will come!”
What else can we learn from our clicks?
1)   Trust: Today, Payment Card Industry Data Security Standards (PCI DSS) are a critical part of every merchant’s processing. Transactions need to be “cleared for take-off” by using industry compliant hardware and software. It’s also a good rule of thumb when you meet with prospective merchant customers to ask yourself if the business owner and company meet your own standards of respectability. If there is any question in your mind about the person’s trustworthiness or the legitimacy of their business, walk away.    When you see them on a Most Wanted poster at the Post Office, you’ll be glad you paid attention to your instincts.
2)   Technology: Clicks are only as good as the hardware and networks that manage their itineraries, from point of entry through authorization and settlement. Technology is their ride, and it also speaks volumes about who we are and what we do. Are you a Mercedes or a Yugo? Our merchants deserve the very best equipment and processing software systems, which will deliver fast response times and won’t break down when they need it most. How often do we hear from merchants about machines failing in the middle of their peak season? Let’s create our own Cash-for-Clunkers programs and let them trade in the old lemons for modern processing systems. Remember, whatever they use is a direct reflection of us and our companies.
3)   Support: Sometimes a transaction will fail on its way to an authorizing host. What happens when the system says, “No response from host?” As we all know, network and hardware issues are a fact of life. Support is a critical component of building long-term relationships with your merchants. You can have the hottest looking machine out there and split second transaction times, but none of that will matter if your merchants are placed on hold for fifteen minutes when they call your Help Desk. Let’s keep them happy with unprecedented customer service.
4)   Back-up: Transactions have two primary objectives: get authorized and get settled.   If their primary method of communication goes down, they search for a secondary method. For example, if a transaction can’t be transmitted on Ethernet/IP, many systems will “fail over” to dial. The concept of having a secondary way of processing is a great way to keep merchants productive. Some of these fail-over systems are so smooth that merchants don’t even know when a fail-over has occurred. Fail-over or having some kind of back-up plan is also an essential part of any good processing system. Offer your merchant a virtual terminal that will stand in for a credit card machine in the event of equipment failure. Sell them peace of mind with a monthly merchant club membership that will get them an overnight replacement if their terminal breaks.
5)   Value: Clicks are just clicks, right? Not if you consider the many ways that cardholders use their credit cards to get points, miles, or extra float on large purchases. You could say the same thing about our business. Is it just a machine and a rate, or are you offering your merchant customer an extension of their brand identity and business? What additional value can you offer your merchant that sets you apart from your competition and gives them some bragging rights too?
Click on!
To summarize, there aren’t too many people who understand the complexities of the merchant services business, a multi-billion dollar industry built on gazillions of tiny little transactions. Merchants sell, cardholders buy, and we’re the people who make it all possible.
Although we’ve all heard that we’re in a recession-proof industry, we also know how competitive it is out there, and how fast technology is changing. If clicks could talk, they’d probably thank us for everything we’re doing, and tell us we’re doing a great job. Hopefully, we’re hearing that from our merchants as well.

This article originally appeared in the December 2009 issue of Merchant Times, a publication of Performance Training Systems. http://www.surviveandthrive.biz/

Posted in Banking, Credit Card Processing, EFT | Leave a comment

Crossing the POS chasm

Published May 7, 2010 | By DLaszig

By Dale S. Laszig
Castles Technology Co. Ltd.

Now that 3-D technology has entered our living rooms, older 2-D movies may begin to look dated and flat. Acceptance of the new technology will vary among consumers.

* Innovators will experiment with 3-D software to improve their viewing experience.

* Early adopters will form long lines at retail stores when the newest Blu-ray players come to town.

* Early majority consumers will read Consumer Reports and compare prices before buying.

* Late majority consumers will wait until the industry agrees on a universal standard for formatting and viewing 3-D movies.

* Laggards will make their move when 3-D technology becomes so mainstream that it’s no longer expensive to buy or time-consuming to set up.These are the five stages of the high-tech product adoption cycle. Most merchant level salespeople (MLSs) have seen the same buying patterns among merchants.

Stepping stones

Savvy MLSs understand the importance of fine-tuning sales presentations to each group’s unique buying habits. They recognize each group represents a stage in the product adoption cycle, like stepping stones that lead from one sale to another. Some stones are close together and easy to walk across; others are so far apart that reaching them requires dexterity and a leap of faith.

According to Geoffrey A. Moore in his book, Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers, the biggest chasm in the product adoption cycle is the one that exists between bleeding-edge early adopters and leading-edge early majority customers.

Bleeding edge

Early adopters are proud to be first to try new technologies. They are willing to endure the slings and arrows, software bugs and hardware issues that frequently accompany product introductions. Moore wrote that by “being the first to implement this change in their industry, the early adopters expect to get a jump on the competition, whether from lower product costs, faster time to market, more complete customer service, or some other comparable business advantage.”

Leading edge

Early majority customers, according to Moore, want “evolution, not revolution.” They look for ways to improve operational efficiencies without being on the “bleeding edge” of technology. Per Moore: “They do not want to debug somebody else’s product. By the time they adopt it, they want it to work properly and to integrate appropriately with their existing technology base.”

The great divide

Progressing from early adoption to early majority selling is easier said than done. Differing priorities and outlooks create the chasm between the two groups, according to Moore. “Because of these incompatibilities, early adopters do not make good references for the early majority,” Moore noted. “And because of the early majority’s concern not to disrupt their organizations, good references are critical to their buying decisions.”

So if the only way to convince an early majority customer is to furnish references, and the only available references come from early adopters, how do we manage the transition? Here’s where dexterity and the leap of faith come in.

When change is not optional

Sometimes new technology is not optional, but mandatory. The Payment Card Industry (PCI) Data Security Standard (DSS) require all merchants, processors and third-party service providers to follow specific guidelines for transmitting, processing and storing cardholder data.

Regardless of where your customers fall in the product adoption cycle, they all need your advice about creating security strategies. If you are promoting an upgrade to a noncompliant hardware or software platform, educate your merchant about the need to meet industry requirements and the consequences of failing to do so.

A leap of faith

Although it may seem a bit challenging at times, bringing new technology to market can be tremendously rewarding for you and your customers. Accept the assignment; you’ll find a way to get it done.

Problem solving

Most customers enjoy complaining, and smart sales people listen carefully when they do. Because when we really listen, we can locate their problems and their pain. Is the problem treatable? If nothing is done, will it get worse? Sometimes the risk involved in doing nothing will outweigh the risk of trying something new.

The art of persuasion

Customers buy for different reasons. Brand loyalty, price sensitivity and special event promotions are among the top three motivators.

* Sell a brand extension to a customer who has been faithful to a product line. Emphasize the similarities between the old and new products. State compelling reasons for why the updates by the manufacturer make the processing platform the same, only better.
* Create special incentives for a price-sensitive customer and demonstrate how the new product or service will save money while improving an existing processing system.
* Limited time offers will create a sense of urgency and resonate with any customer who is attracted to special sales and promotional events.

Take the path of least resistance

The next time your company rolls out a new solution, whether it’s a value-added application or updated hardware or software to meet the PCI DSS, think about your diverse population of merchants and their equally diverse buying habits.

It will be easier to sell to early adopter and early majority merchant customers than to try to convince the late majority and laggards to get on the bus.

Be a change agent

Be aware of the buying habits of your customers, and customize your sales presentations to their unique opinions and perspectives. Then go sell them something. Don’t worry about whether it’s too early or too late. You’re there; they’re listening.

Do some trial closes. The sooner you begin to make the sale, the sooner they will come around to buying. Early adopters will usually get there ahead of the laggards, but you’ll always find some wonderful surprises.

Originally appeared in The Green Sheet, Issue 10:04:02, April 26, 2010.

Please include this copyright notice when reprinting this article, and link back to this site when reprinting or quoting.

Posted in Next Generation, Point - of - Sale Technology | Leave a comment

Ripples on the mobile Web

Published May 7, 2010 | By DLaszig

By Dale S. Laszig
Castles Technology Co. Ltd.

There’s a theorem in quantum physics that the observer affects the observed. That’s certainly true for the mobile Web, a shape-shifting phenomenon that’s changing our world. Each end user has a ripple effect on the mobile Internet and its always-on, always-connected community. Even die-hard laggards have been dragged into the mobile age, in which access to friends, colleagues, e-mail, Internet search and social networking is only a click away.

The next big thing for merchant level salespeople (MLSs) is to start viewing the mobile Web as a profit center. Following are 10 top trends in mobile computing that can help merchants create unique mobility strategies to stay connected with customers.

1. Mobile commerce

Rising popularity and falling prices are helping mobile payments go mainstream. Merchants can choose to process payments on portable credit card terminals, smart phones or laptops paired with card reader peripherals that communicate via cellular networks or Wi-Fi. Even brick-and-mortar merchants occasionally travel or attend tradeshows. These portable and cost-effective solutions can be taken along on business trips to securely manage cardholder data, expedite settlement and deliver lower card-present discount rates.

2. Micropayments

The ability to transfer money and make payments from mobile devices offers hope to a global population of unbanked and underbanked consumers. The Bill and Melinda Gates Foundation committed $12.5 million to fund mobile banking in the developing world. The Financial Services for the Poor Initiative is a far-reaching plan to make microfinance and savings accounts widely available, and a call-to-action for payments industry professionals.

“We believe this is a historic opportunity to make financial services accessible to billions of people in the developing world,” the foundation’s Web site states. “New technologies and innovative partnerships make it possible to create a ‘next-generation’ banking system. Working together with banks, governments, mobile phone companies, retail store chains, and others, we believe it is possible to deliver quality savings accounts and other financial services to the doorsteps of the poor.” (Visit www.gatesfoundation.org for more details.)

3. Mobile CRM

Customer relationship management (CRM) began years ago when companies attempted to understand customer buying habits and preferences. Today’s CRM is a nuanced and interactive relationship, controlled more by consumers than the businesses they patronize. These days an opt-in message on a mobile phone can lead to an impulse buy, and customized alerts keep consumers aware of bank balances and sales.

4. The mobile Web

Just as films are restructured for DVDs, corporate Web sites are provisioned for the mobile Web, with automatic mobile versions that can be read on a number of hardware platforms, including the Research in Motion BlackBerry, Google Inc. Android and Apple Inc. iPhone product lines. Mobile Web sites need to be clear, attractive and easy to navigate on small screens.

5. SMS marketing

An increase in unlimited text plans offered by wireless carriers has accelerated short message service (SMS) usage, not just by teenagers but across the entire demographic spectrum. Businesses have found innovative uses for text messaging, such as over-credit-limit and payment-due alerts, event reminders, polling and opt-in messages for customers who would like to be notified about specific promotions.

Enterprise SMS solutions help businesses stay connected with their remote workers and customers through programmable, customized broadcast messages. Programs offered by third-party providers enable administrators to download entire databases into smart phones, forward responses to e-mail addresses, and use additional tools to manage data and trend analysis.

6. E-mail marketing

Now that we’re using our phones to check e-mail, doesn’t it make sense for companies to increase the frequency and variety of targeted e-mail promotions? It’s a great way to stay in front of customers while continuing to build brand value. E-mail is less invasive than telemarketing. It also has a better chance of reaching its target audience by virtue of reaching consumers however they happen to be logged on, whether via smart phones or desktop or laptop computers.

7. Mobile coupons

Coupons are hot again, thanks to the recession. Books on how to leverage coupons are making best-seller lists, and we’re seeing increased usage across the board. The latest trends are opt-in coupons with instant savings and rebates, and rich media coupons on smart phones with bar codes read by POS scanners. Merchants like mobile coupons because they can be tracked, making it easier to analyze the success of promotions.

8. Mobile social media

The increasing popularity of social networks in all sectors is driving demand for mobile access. Facebook, MocoSpace and foursquare lead the pack in mobile social media applications. The primary functions of social media – exchanging information, sharing content, forwarding links, and managing network referrals and invitations – can be easily done on mobile devices.

9. Mobile search marketing

Most major companies recognize the value of advertising on the top three search engines: Google, Yahoo and Bing. Mobile searchers usually have a greater sense of urgency than their stationary online counterparts, presumably due to an immediate need for the product or service they seek.

Advanced forms of mobile search utilize global positioning satellite technology to offer proximity-based search results.

10. Mobile video and event programming

Remember the Sony Watchman? A tiny handheld portable television set enabled viewers to watch TV from anywhere. Advanced Internet technology has given us so many more sources of on-the-go video content. Consumers can create and send their own mobile videos, contributing content to a broad range of media, including network news.

Mobile video technology is emerging. Expect to see more variety and quality as videos are specifically designed for viewing on smaller screens. Advertising is a natural add-on in this space, as retailers compete to promote and sponsor a range of local, national, free and pay-per-view events.

Connecting in real-time is the defining element of today’s consumer-centric environment. Web sites alone will not do the job. It’s time for MLSs to join the expanding mobile Web community and turn some of those ripples into waves.

Originally appeared in The Green Sheet, Issue 10:03:02, March 22, 2010.

Please include this copyright notice when reprinting this article, and link back to this site when reprinting or quoting.

Posted in Mobile Web | Leave a comment

POS Unplugged

Published February 22, 2010 | By DLaszig

By Dale S. Laszig
Castles Technology Co. Ltd.

emember the early days of relationship marketing? Our job back then, as merchant level salespeople (MLSs), was to show merchants how to optimize customer-facing POS solutions, from PIN pads with basic black and white monitors to full-color signature capture touch screens.

Add a video or coupon to the monitor, we advised them. Leverage your customer relationship management database by offering discounts to your customers on their favorite items. It’s about building relationships. Today, merchants and customers have taken relationships to a whole new level. They follow each other on Twitter and “friend” each other on Facebook. We’d insult their intelligence if we suggested they become better acquainted. They’re not dating anymore; they’re married. In a post-analog world, a merchant’s traditional media mix is getting a makeover via mobile commerce, social networking, blogs and chat rooms, online ordering, and in-store digital content environments. MLSs need a high-level understanding of these applications, so we can partner with merchants who are looking for ways to seamlessly integrate payment processing across an enterprise. Merchants need to connect with their customers anytime, anywhere and on any device.

Anytime

Virtualization is a driving force in the new POS landscape, forever changing traditional concepts of time and place. In an always-on, always-connected merchant/customer relationship, leveraging five seconds at a checkout counter is no longer mission-critical.

It still makes sense for merchants to offer instant coupons, but if their customers don’t seize the PIN pad moment, they can always opt-in later, with an online order, text or e-mail.

The on-demand component of the digital age has freed consumers from the constraints of scheduled programming. Television shows can be recorded by DVRs, to be screened at the viewer’s convenience, commercial free. Meetings and tutorials can be posted online, to accommodate busy and changing work schedules.

In Always On: Advertising, Marketing, and Media in an Era of Consumer Control, authors Christopher Vollmer and Geoffrey Precourt of Booz Allen Hamilton Inc. address the new consumer-centric playing field, which has made it necessary for merchants and advertisers to personalize their overtures to target audiences. Market research has been replaced by one-on-one, interactive communication.

They wrote, “In an always-on world in which media usage is migrating to digital, advertising can be blocked or skipped, and content can be consumed on demand, marketers have to find new ways to distinguish between those aspects of consumer behavior that will remain the same and those that will change. Many are turning to direct observation of and contact with consumers.”

For more information about the book, visit http://books.google.com/books?id=GV5EomJuc68C&printsec=frontcover&dq=Always+On+by+Precourt&source.

Any device

Interaction isn’t limited to the cash register or credit card terminal anymore, or even the brick-and-mortar store. It happens everywhere we go, through laptop and smart phone browsers that keep us connected to friends, families, employers and suppliers. It’s hard to imagine life without the mobile Web now that it has become so embedded in our collective consciousness.

Internet access, once considered the exclusive province of computers, has gone unplugged. According to Dmitriy Lerman, Director of Marketing at Charge Anywhere LLC, “Smart phones are replacing computers in our everyday lives. Simple tasks like writing an e-mail, reading an attachment, staying in touch with people, getting informed on news and weather, and organizing one’s day have comfortably fallen into the realm of a phone, no longer a computer. Payments are not immune to this paradigm shift.”

Today’s merchants have more choice in POS hardware. Credit and debit cards can be swiped on portable and countertop terminals or on card reader peripherals paired with laptops and smart phones. Secure encrypted cardholder data can be managed by payment gateways.

A major component in the payment value chain, gateways optimize the Payment Card Industry Data Security Standard, increase transaction visibility through secure Web portals and empower business owners with real-time access to transaction data from broad populations of devices. They offer reporting tools to manage that data and the ability to react quickly to questionable transactions and communications failures. For a list of validated payment applications, visit www.pcisecuritystandards.org.

Anyone

We’re living in an age of one-hour sales and text messaging from banks on available lines of credit. POS technology has expanded in scope, beyond countertop devices and customer-facing screens, to a multidimensional, interactive consumer environment. This environment is more conversation than transaction. What does that mean, exactly?

Consider how frequently you receive an e-mail after making a purchase, inviting you to write a review. The company would like to know more about you and your preferences and will post your comments, good or bad, on its Web site, to be shared with other prospective buyers. Or how about the e-mails you receive from manufacturers and credit card issuers, inviting you to join online communities where members can exchange ideas and information?

It’s all part of the new online experience. Anyone can host a Web site, post a real-time video, write a blog and participate in live chat. The media is watching us. Every day, ordinary citizens are pulled from obscurity and elevated onto the world stage. Newly minted celebrities who surpass 1 million hits on YouTube are approached by advertisers who pay to post banner ads and product placements on their sites to be proudly displayed on millions of tiny screens.

While the monetization of social networks and YouTube is being debated, it’s clear that the ever-broadening online marketplace will need fast, secure and reliable methods to process payments, because there’s no place for hard cash in the virtual world.

In my next article, I’ll take a closer look at some cool, new applications that leverage mobile technology, enrich electronic transactions, and deepen the relationship between merchants and consumers. The mobile Web is the next frontier of payment processing and an opportunity for MLSs to demonstrate knowledge and leadership. To paraphrase Visa Inc., it’s everywhere we want to be.

Originally appeared in The Green Sheet Issue 10:02:02, February 22, 2010

Posted in Mobile Web, Point - of - Sale Technology | Leave a comment

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