Sell and Run

Haven't heard from your agent since the first card swipe? Or is the only follow-up when he or she stops by to see if you'd like to buy other services? From the stories we've heard, you are not alone.

More can and should be expected from a service provider. Here are some service level considerations that go well beyond cost reduction promises:

• A post-implementation processing review. Especially if cost reduction promises have been made, a provider should be willing to give you a before-and-after review of how they did. That review should focus on the Effective Discount Rate* (EDR) -- a bottom-line measure of cost performance.

• Ongoing transaction monitoring. Transaction monitoring can have a dual benefit. One is monitoring for potential fraudulent transactions. The other is identification of preventable surcharge transactions for cost control.

• Processing advice. Does your agent or provider know how to set up your terminal or software to qualify for the lowest interchange rates? Do they provide cost-effective processing tips?

• Compliance advice. Processing tips can be useful. Fraud prevention can be life saving (ok, well, business saving at least). Fraud prevention and compliance isn't just something for the big online merchants to worry about. If you don't know about PCI compliance or the Digital Dozen, you are in need of a serious upgrade in your merchant services.

Just like a cheap insurance policy that doesn't cover you at crunch time, a super low priced processing agreement is no bargain if you are running transactions inefficiently, or if you are a victim of fraud or are shut down for security breaches. Like any other business service, look for the best combination of price and service. You'll be glad you did.

*Note: Effective Discount Rate divides total fees by total gross sales (Visa© and MasterCard© only). This measures bottom line results and is much more meaningful than quoted discount rates. An EDR calculation is a significant element of every card profile analysis we do.