Selling in the digital age
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adapt to the increasingly fluid, evolving scope of payment technology, merchants will be stuck with obsolete, outdated equipment.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.
Contactless taps new markets
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.
Command performance meetings
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.
Beyond Professional Courtesy
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.
© 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.
