Catering to the Small Merchant
Credit Card Management (10/00) Vol. 13, No. 7 p.79; Hisey, Pete
To maintain the profitability of the merchant services
industry, acquirers are going to have to offer the merchant more
services at value prices, particularly high-tech capabilities
designed specifically for small merchants. NXT, an aggregated
service provider, launched MerchantPort.com, which lets merchants
browse through service offers, choose services they want, then
receive an instant bid from an independent sales organization
(ISO). MerchantPoint also offers ISOs a more affordable and
comprehensive method of signing up new merchants, by contacting
an ISO in an appropriate geographical area to deal directly with
merchants who have requested services. NXT also provides a
service for merchants that directs all American Express charges
directly to AmEx, cutting out the add-on fees charged by ISOs and
bank card processors. While the ISOs initially lose money from
the sidestepping of the fees, they gain market share, the ability
to up-sell customers, and the chance to forge long-term
relationships based on the ability to provide an ever-increasing
selection of services. New services include specialized daily
news content, 24-hour dedicated customer service, and ancillary
products. Other ISOs are going it alone, offering Web site
production and maintenance.