competitive advantage

Savvy POS resellers have learned that not all partnerships with payment processors are created equal. There are many key factors on which to measure and evaluate a processing partner. These include technology, support, accountability, compensation and transparency.

Technology matters

Ultimately the underlying solution being sold to the end user impacts the vendor client relationship. All else equal, a best-in-class solution gives the POS reseller a competitive advantage. For example, a solution that provides real-time online access to transaction data with the ability to perform add-on functions like void, refund, tip adjust and repeat sale without needing the card number can have a huge positive impact on the end user.

Support makes a difference

Supporting integrated payments takes time and energy. When comparing providers, consider how much work is involved on the part of the POS reseller for implementation and ongoing support of the payment solution. Does the payment processor support the solution from start to finish in-house or is the support burden largely placed on the reseller themselves?

Accountability is key

A small problem left unchecked can lead to a big issue. The last thing a value added reseller wants is for their client to get stuck in the middle of a three or four vendor solution where each vendor is passing blame to the other. Working with a payment processor who actually develops the underlying payment technology in-house makes them accountable to the end user and can mean the difference between a small problem or a big issue.

Compensation moves the dial

Let’s face it, this one is big. What does the partnership mean to the reseller’s bottom line? Some payment processors rely on upfront incentives and fuzzy revenue sharing math to maximize their own monthly recurring revenue while others provide true revenue sharing on all income streams with 100% transparency. While upfront incentives are tempting, they usually come at the expense of the reseller’s own residual income. It’s not enough for a value added reseller to simply compare one processor’s stated revenue sharing percentage to another. Many processors exclude significant income streams from the residual calculation while imposing exorbitant expenses. The best thing the reseller can do when evaluating a provider’s compensation plan is to ask them to perform an income analysis on a potential account. If they report favorable compensation, then referring the account to them and comparing the actual results to the original analysis is a sure fire way to determine if the processor’s compensation lives up to the reseller’s expectations. Maximizing ongoing residual income closely aligns the interest of the POS reseller to the interests of their clients and encourages a higher level of responsiveness and concern towards the end user.

Transparency breeds trust

Using the fine print on a merchant agreement to pad the end user’s rates and excluding income streams from the reseller’s compensation calculations are just a couple of the practices that are enabled by a lack of transparency. When evaluating payment processing providers, a POS reseller should consider whether the provider has anything to hide. Are they actively engaged in litigation over deceptive pricing practices, do they provide all the information a reseller would need to self-audit their compensation payments, do they take the time to help the reseller understand how compensation is calculated and are they upfront and honest about what fees charged to the end user represent income to them?

Those considering Payment Logistics as a processing partner will discover we’ve built our company on the foundation of best-in-class technology, hands-on support, accountability with in-house solutions and leading compensation plans backed by 100% transparency. We believe a true long-term partnership demands these qualities in order to thrive. While we certainly are not perfect, we are not willing to compromise on these principles.

About Payment Logistics®

Payment Logistics is a QIR qualified payment technology and merchant acquirer. Our PCI DSS level 1 validated Paygistix® platform offers best-in-class payment integration solutions for restaurant, hospitality and retail merchant segments. ISVs and POS dealers work with us to power their integrated payments strategy while adding value to their distribution channel partners and end users. Our payment integration solutions eliminate PA-DSS compliance scope for ISVs, minimize PCI DSS compliance scope for end users, eliminate QIR program burden for POS dealers and provide support for critical emerging payment technologies such as EMV, NFC, online signature capture, pay-at-the-table, real-time online transaction reporting and other value added features and capabilities.