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Training Workbook 2017
Table of Contents
Welcome��
About Veteran
Payment Processing
Products
Target Markets
Personal Network
Distinctions/Solutions
Methodologies
• Setting appointments- Phone and F2F • Running appointments- Forecast / Discovery Questions
Glossary of Terms
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Welcome to Veteran Payment System’s
Congratulations on your new position!
As a company, we are excited to have you join us and we are ready to launch
your new career. In sales, it’s important for you to know your company, know
your competition and to stay on process. Over the next 90 days you will be
studying this booklet, and mastering the processes within. The strategies
introduced here will focus on distinction based selling, setting / running and
closing deals based on value, and building a network of referral merchants and
partners to help you build a sustainable career with long term passive income.
Again, congratulations and we look forward to you becoming a wealthy and self-
sustaining Area Manager!
About Veteran Veteran Payment Systems is in the business of helping business
owners operate more efficiently. Our organization was founded in 2007
on the belief that local business owners deserve the same features,
functionality, and transparency that large corporations have when it
comes to these parts of their business. We believe in helping them
simplify seemingly complex areas of business operations such as
credit card processing. With over 60 years of combined leadership
experience behind the help helm, you can count on being supported by
the best in the industry and being able to bring the experience and
knowledge you learn to your valued merchants and partners.
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Payment Processing
How it works
Payment processing is the behind-the-scene’s electronic approval and
funding of merchant’s sales, performed by a direct processor. Veteran
uses a variety of platforms for the front-end platform (Approval/Decline
of Card Swipe) and for the back-end platform (Funding of merchant’s
sales and produces a monthly statement). Review the diagram below
that displays the process of a swipe and how the processor interacts.
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Products
Payment Processing
We offer the following product distinctions:
• Multiple Platforms: TSYS I First Data I High Risk
• Transparent, wholesale pricing with a lifetime rate guarantee
• Industry leading security and technology with EMV capabilities
• Amex program that provides express funding, one consolidated statement,
and interchange rates in line with Visa and MasterCard
• Funding of deposits faster than most bank-independent processors if the
client batches out by 11pm EST
• One simple easy to read statement with all four card types
• A triple layered customer service model which includes; local
representative, US based service center and the client receives full access
to an online portal to monitor their merchant services
Detailed descriptions and definitions of all Veteran Distinctions can be found in the distinctions section.
Cash Advance • Business Cash Advance
• Consumer Cash Advance
Referral Programs
• We pay referral partners 25%. You keep the rest!
• Partners earn monthly residual income
• Partners build portfolio equity
Gift / Loyalty Programs
• Detailed Measurability
• Customer Registration
• Loyalty and Rewards
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Target Markets
Who to Call On
The below business types are Veteran’s top 25 client types. In these types of
businesses, our solutions provide the most value for the right margins for you.
They are also typically easier to underwrite and when you are new it’s easier to
start with these less risky and easier to get approved deals. No business is too
big or too small but some are certainly easier to start with.
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Who to Partner With
There are hundreds of types of sales and business professionals in the world and
many of them can be partners of yours. The below list of outside sale
professionals and business professionals is where we recommend you
concentrate your efforts when looking for referral partners.
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Action Step: COMPLETE NEW HIRE PROSPECT LIST
Personal Networks…
Personal Acquaintances…
Frequent Customer of…
Former Business Partners…
Former Networking Partners…
1) People you know (anyone that owns a business) - Friends, family, neighbors,
past business associates. Leverage these opportunities!
2) Places you go (everywhere you spend money) – Auto repair, oil, tires, hair,
nails, pet/vet, optometrist, retail, restaurants, marina, convenience stores,
utility company. This list is LONG when you put pen to paper!
3) Local Prospects (local businesses you want in your portfolio) – Nothing
builds your local brand better than signing the TOP businesses in your
community. Start building a pipeline today of these top businesses!
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3 Impactful Networking Questions
Whenever you are in a networking type setting, there are some simple questions you can ask people to generate conversation. These are called “feel good” questions b/c they are about them, what they do, what makes them feel good and how you can help serve them by helping them grow their business. Who doesn’t want that!?
Remember, people generally like to talk about themselves so just tee these up quickly and LISTEN.
1. What is it that you do?
2. What do you enjoy about what you do?
3. How do I know what a good customer looks like for you?
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Distinctions
Veteran Distinctions are the foundation of everything we do; the competitive differences of Veteran products. When understood, and positioned appropriately, they transform our product from a commodity to a solution, maximizing margin and retention. While some of these distinctions are not exclusive to Veteran, we offer these benefits to our merchants with the utmost integrity, regardless of their size.
Security It’s no secret that data breaches have become a common occurrence. Small
business owners are a prime target for criminals looking to steal card data and
other sensitive personal information. Achieving merchant PCI compliance can
protect a merchant’s business, their reputation, and their customers.
More than 80% of data breaches involve small business owners. — PCI Security Standards Council DataGuardian- Compliance Tools/ Security Tools / Breach Protections / Educational Resources
With DataGuardian, merchants get everything they need for PCI compliance and
security. We’ll help protect their business from a breach so they’ll have the peace
of mind they need to focus on their business.
EMV Which stands for Europay, MasterCard and Visa -- is a global standard for cards
equipped with computer chips and the technology used to authenticate chip-card
transactions.New legislation has been passed that requires merchants to have
EMV terminals capable of accepting chip cards. If the merchant DOES NOT
have an EMV capable terminal and there is chargeback coded LOST/STOLEN or
FRAUDULENT, the merchant loses that chargeback. They do not have the
opportunity to dispute it and they lose their money as well as their product.
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American Express OptBlue Program
• We can now offer merchants interchange rates similar to Visa and
MasterCard starting below 2% for American Express (AmEx)
• We combine all our customers’ transactions onto one simple statement,
eliminating any extra fees associated with multiple billing and making
reconciling bank statements easier.
• Customers also receive their American Express money faster – on the
same schedule as Visa/MasterCard, as quick as the next day
OnePoint and AmEx Direct- Some processors offer an older AmEx program
called OnePoint. Like OptBlue, this program consolidates all 4 cards onto 1
statement and funds as quick as next day, BUT it does NOT lower their rates.
Retail is 2.89% and Restaurant is 3.50%. Some merchants are still with AmEx
Direct as well paying up to 3.50%
Lifetime Rate Guarantee We guarantee that we will never raise a merchant’s rates for the life of their
account. Our commitment is that our profit will always remain the same.
Industry: Every April and October Visa and MC adjust over 400 different types of
credit cards and interchange rates. During these rate adjustments, most rates
stay the same, some go up, and some go down. Many processors set
merchants up with intro rates and then use these adjustments as an opportunity
to raise ALL rates because the fine print in their contracts allow them to do so.
No Contract / No Early Termination Fee Our policy is that as long as the merchant gives us 30 days’ notice, IN WRITING,
and an opportunity to fix any issues or concerns we will let them go if they want
and we won’t charge them an early termination fee.
Industry: Industry standard is a 3-year agreement with an early termination fee
of $395 to thousands of dollars. Some are complex cancellation equations
totaling thousands of dollars.
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Next Day and Weekend Funding
Our merchants receive funds from their credit card sales faster than any other
processor not tied to a Next Day Funding bank relationship. Regardless of their
bank relationship, our customers receive their money on the next business day
throughout the entire week if they batch by 11pm EST and their weekend
deposits on Monday morning.
Industry: While many processors offer next day funding, some don’t and many
others have earlier cutoff times. If they don’t offer it or if a merchant misses the
cutoff time they should typically expect to see their V/M/D in 2 days and AmEx in
3-5 days.
Interchange Plus Pricing Interchange Plus is true wholesale pricing previously available only to national
chains and high volume accounts. In this pricing model, Veteran passes true cost
from Visa and MasterCard along with a fixed markup to our customers. This
protects them from arbitrary price increases and insures that they receive the full
benefit of cost reductions, such as the Durbin Amendment legislation.
Mobile Payments Veteran merchants can process EMV payments through their smartphones or
tablets using our mobile app. Mobile payments can be used as a standalone
terminal or as a backup should their hone or internet connection fail. The app is
free and the optional card with or without EMV capabilities in nominally proceed,
making this a great tool for every merchant. Cash Advance and Loans Veteran, through referral partners, offers both merchants and consumers a wide
variety of loans and cash advance options. For merchants, they can borrow
against future credit card sales. If they want a cash advance, we must have their
credit card processing as well. The interest rates depend on a variety of factors
like their history in business or credit worthiness for example. For consumers,
they too can borrow money to pay for their goods. This would typically be used
in higher ticket transactions like furniture, or plastic surgery for example. ALL
loans and cash advance pay agents a 1-time referral fee based on your
compensation split.
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Methodologies- setting and running appointments
Phone Prospecting Building a 30 Second Intro- When calling a prospect by phone, your introduction should immediately answer the following questions that are on the business owner’s mind:
Who are you? ��
Who do you work for? ��
What does your company do and Where are you located?
Why are you calling me?
You can answer these questions in 4 simple steps...
Step #1 - Give Your Name and Company (Who are you and Who do you work for?)
“Hi___________, my name is ____________________ and I work for Veteran.”
Step #2 - Tell Them What We Do (What does your company do and Where are you located?)
“Veteran is a payments technology company located right here
in_______________.”
Step #3 - Insert the Sizzle (Why do I care?) [sample Sizzles on next page]
“You may have heard of us. We’re the company
that’s____________________________.”
Step #4 - Give the Reason for Your Call (Why are you calling me?)
“The purpose of my call is to set up a quick appointment so I can tell you more
about (insert name of Sizzle) and how it can benefit your business.”
ASK FOR APPOINTMENT AND BE PREPARED TO OVERCOME OBJECTIONS:
I’ll be in your area tomorrow and would like to come by and see you. Would
morning or afternoon be better? Always 2 options…
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Sample Sizzles to Insert in Step #3
AmEx OptBlue Program
“We’re the company rolling out the new Amex Program, which offers interchange
rates at similar levels to Visa and MasterCard while consolidating all four card
types onto one statement and funding them at the same time.”
Faster Funding
“Veteran is the company that is offering businesses their weekend credit card
sales deposit on Monday instead of Tuesday, giving you faster access to the
most significant sales of your week.”
Interchange Plus Pricing
“We’re the company rolling out Interchange Plus Pricing, which is wholesale
pricing that identifies the true cost of every card that comes through your door.
This was previously only available to the big chains like Best Buy and Home
Depot, but we’re rolling it out to small and medium sized businesses nationwide.”
Example:
“Hi Joe, my name is Bill and I work for Veteran. Veteran is a payments technology company located right here in Smallville. You may have heard of us. We’re the company rolling out the new Amex Program, which offers interchange rates at similar levels to Visa and MasterCard while consolidating all four card types onto one statement and funding them at the same time. The purpose of my call is to set a quick appointment so I can tell you more about this program and how it can benefit your business.”
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Process of Handling Objections
Objections are a part of selling. The process below will allow you to hold Veteran
Distinctions high and lead to more appointments. Once you’ve addressed their
objection(s), you can then ask for the appointment.
Step #1 - Acknowledge Authentically- Avoid debate; Seek to understand vs
defend. “I understand.” (I get it; I hear what you’re saying...)
Step #2 - Be Curious Preface with a Curiosity Elicitor (“I’m Curious...”) Redirect
with a question related to a Veteran distinction.
Step #3 - Elaborate Distinction Keep it brief and avoid slipping into a “pitch”.
Offer a little more information without giving them the goods.�Have you earned
an appointment?
If Yes: Suggest “that we get together” • If No: Redirect with another question.
Example: Objection “We’re in a contract”
Step #1 - Acknowledge Authentically
“I understand. Most everyone is. I’m wondering if you’ve considered...”
Step #2 - Be Curious
“...why American Express is always a day or two behind in their funding?” “Yes,
why is that?”
Step #3 - Elaborate Distinction
“Traditionally, Amex is responsible for the funding of their sales deposits.
However, OptBlue is a new program that changes that.”
Have you earned an appointment? (Did your Elaboration interest them?)
If No: Redirect with another question.
If Yes you can say something like: “As I mentioned, I live here locally and I’d like to stop by in person and talk to you more about “insert distinction”.
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Most Common Objections
1) Bad Time/ I’m Busy- I understand…I’m busy as well and the purpose of this call was
just to setup a time when we both aren’t busy. I’d just like to ask you just one quick
question….
2) We’re Fine/ We’re Happy/ We’re with our Bank- I get it, but please understand
banks aren’t processors. They buy from companies like us. If you don’t mind, I’d like to
ask you a quick question…
3) What’s Your Rate? - Great question! I could say that we’re cheaper than your current
provider, but I’m not going to do that. The simple fact that you asked me what my rate is
means we need to talk. I’m just curious…are you aware that there’s over 400 rates?
4) We’re in a Contract- I understand…most everyone is. I’m in about 12 right now
between Comcast, AT&T and a bunch of other vendors. The good news is we can typically
save you enough money in a month or two to cover that.
5) Send Me Some Info- I could send you a truckload of information, but our program is
unique for every client.
6) Just Switched- I understand…I’m just curious, has your current processor been back in
to prove that they did everything they said they would? Or, typically you have 30-days
before the new agreement locks in.
Other questions you can ask: I’m curious, have you ever wondered…
• why it is important that you accept the new EMV chip cards?
• how you can get your weekend money on Monday instead of Tuesday?
• what your true credit card cost are vs. the processors actual profit?
• how the big box stores like Walmart and Home depot are priced?
• why you can keep switching processors and they always save you money?
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Face to Face Prospecting- Drop In
The goal of a successful Drop In is to build rapport with the merchant, get a statement and to
secure a future appointment OR this could be a time to actually run the appointment as well if
you are comfortable doing it there on the spot. If time is limited you may be just gathering
some information and setting an appointment to come back as soon as possible. DON’T
LEAVE WITHOUT CONFIRMING A DATE/TIME TO MEETUP AGAIN. NEXT DAY
PREFERRED!
REMEMBER: IF YOU SELL ON PRICE THEY WILL LEAVE YOU ON PRICE AND FOCUS
ON VETERAN VALUE and DISTINCTIONS OVER PRICE AND SAVINGS!
Step #1 - Be Authentic and Build Rapport
• Be yourself. Personable – Approachable
• No sales pitch. Just have a conversation.
• Don’t have a bunch of sales collateral. Keys in hand, at most a business card and a tri-
fold for a leave behind
Step #2 - Be Curious
Ask one or two questions. When you are curious, they can be too. Lead them where you want
them to go. Being curious is rarely perceived as a negative thing.
Example �“Hi! I just got done meeting with Rocky’s down the street and I just wanted to drop
in really quick and introduce myself. I’m John... “ �“I noticed the American Express sticker in
your window. I’m curious, do you know if your business is still receiving a statement in the mail
every month from them?” �“It has always been that AMEX sends you a separate bill and
deposits their own transactions. There is a new way to work with AMEX – through your
processor – to streamline and simplify things, and I’d like to discuss this program with you.”
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At this point, you’re either going to gather some information, a statement perhaps and reset an
appointment for as soon as possible or you may start running the appointment right there on
the spot.
Step #3a – Secure Statement and Reset Appointment (merchant was busy)
If you aren’t comfortable with reviewing a statement yet, get a copy so you can do a proposal
at home. Reset a new appointment with a set date/time before you leave!
Well look Mr. Merchant, I know I just dropped in here and I can see you’re busy right now. I am
as well, but I’d like to see if you had a copy of a statement (V/M and Amex), I’ll go back to my
office, do a proposal and we’ll get back together so we can see how I can help you. I’ll be
back in the area same time tomorrow. Would 10am tomorrow work?
Step #3b- Run Appointment- (merchant had time and you are ready!)
If you both have some time on the spot and you’re comfortable reviewing a statement right
there with them, GO FOR IT! TIME KILLS DEALS! Proceed to Forecast below where you
build rapport, ask questions, review rates, present solutions and ask for their business!
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Forecasting the Appointment
A strategy for running more consistent appointments Have you ever...? • lost control of appointment to the merchant?
• gotten off track and off task, circling around with no clear goal in mind
• progressed all the way to signature, and then learned your contact is not the one who signs
the contract?
• coughed up your pricing at the beginning and struggled to “add value” too late in the game?
• gotten back to your car and realized you had totally forgotten to share some very key
information about Veteran?
• got to the end of the appointment and had no gas left in the tank and found there just wasn’t
a compelling reason for you prospect to enroll and they decided “to think about it”. �
The Forecast was designed specifically to address and eliminate the above problems. Here are some of the benefits of Forecasting every appointment: • Puts you in the driver’s seat. Keeps you on task and on purpose.
• Communicates your intent to the person you are meeting with.
• Puts the customer at ease, knowing what is going to be covered, and in what order
• It is repeatable, replicable and flexible and works for all products and industries. Saves
pricing for last, by positioning us as something different than our competitors, rather than
pitting us against them.
• Identifies potential objections and roadblocks up front, and then address them in your
presentation.
• The Forecast is based on the premise that selling is simply a matter of discovering how a
business does their business and helping them to do it better. �
The forecast includes only the bold points on steps 1- 4 found on the following pages. The Forecast part of your appointment should take approximately 90 seconds. Then you should come back to the sub-points for the presentation. Most appointments should�only take 30 minutes, unless the prospect is fully engaged up to 60 minutes. ��
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First, YOU be the one to break the small with a quick, simple phrase:�“Thank you for agreeing
to meet with me today. Here is what I hope to accomplish during our meeting.” OR�“I sure
appreciate your time today. Let’s get started.”
1. “First I want to tell you a couple of quick things about myself and Veteran because I truly believe these concepts are important to YOUR business.”
Veteran is a locally owned and operated company that’s been in business since 2007. It was
founded by military Veterans, run by a few industry Veterans that have been in the business
for decades. Our goal is to help simplify your credit card processing, get you your money fast
and make it affordable for you. We believe in complete transparency and delivering the best
service possible to our customers. We have thousands of customers and some include (name
a few good ones that they will recognize).
As for me, I live it work right here in Jupiter. (add something personal like you are part of the
community, family and kids here, enjoy boating, etc.) I joined Veteran b/c I believe in what
they do to advocate for merchants and I wanted to work for an honest company that I know will
do what they say they will do and support their employees and customers. My reputation and
portfolio in town are important to me and I’d be honored to have you in my portfolio of
business.
2. “Next, I’m going to ask you some questions that I have prepared. It is important to look at the entire processing picture for your business and it is my goal to help you run your electronic payments as efficiently as possible.” Refer to the Discovery Questions Document:
A. History / current relationship (2-5 questions) �
B. Equipment functionality and service (2-5 questions) �
C. Reconciliation / accounting (2-5 questions) �
D. Interchange knowledge (2-5 questions) �
E. Additional products (2-5 questions) �
Do not ADVOCATE a benefit yet—that comes in STEP 4!
3. “Then I’ll share with you our pricing model, and how it applies to your business. More importantly, we will briefly discuss Interchange so you can see once and for all how wholesale pricing really works. I’ll even disclose true cost and lock our profit margin in for the life of your account. Then together, we’ll decide on what pricing makes the most sense.”
• Share the pricing model, Interchange sheets and Veteran Statement
• Review proposal- DO NOT EVER LEAVE PROPOSAL BEHIND!
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4. “Finally, I’d like to discuss different solutions I have for you based on the questions I asked. If I can provide value to help you run your business better, save you some money and if everything sounds good to you, we’ll discuss what the next steps look like to move forward. Sound fair?
IMPORTANT: Be clear and let merchants know if/when there are certain benefits we can offer
but their current processor cannot. Be direct and let them know if their current processor
offered these benefits they would be getting them already. I like to stress this so they don’t
think they can take your hard work back to their current processor.
Examples: o Amex OptBlue- if they aren’t on it their current processor doesn’t offer it. o Next Day Funding- if they offered it they would be getting it already o Weekend Funding- if they offered it they would be getting it already
Running the appointment:
ü You’ve told them about yourself and Veteran, built rapport…Great!
ü You’ve asked questions and found a few ways to help them run their business
better…Fantastic!
ü You’ve showed them interchange, showed them a Veteran statement, reviewed their
rates and can save them money…Perfect!
ü You’ve presented solutions based on the questions you asked and you can tell they are
interested and asking closing questions like: How long is you contract? How much will a
terminal cost? Is there a cancellation fee? What are the next steps? You’re almost
there! NOW YOU JUST NEED TO GO FOR THE CLOSE!
The Summary Close: � STEP 1: When you are finished with the pricing, move immediately to all the benefits you
uncovered with your questions in Part 2. Summarize the benefits of Veteran in a clear and
precise way, along with our pricing and potential savings. AGAIN, remind them of specific benefits their current processor cannot offer of they would be getting them already.
STEP 2: Fear and Doubt Removal- Many times they have fears from changing before that will
be a roadblock keeping you from closing the deal. Put them at ease here.
Examples: o Underwriting- (Last time was a mess) Say, it will take about 1 day to get approved
o Terminal download was a nightmare- (last time it consumed them for a half day
themselves) Say, I’ll bring in a pre-programmed terminal and install it myself
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o No one ever came back and proved they saved what they were told-. (They haven’t
seen their rep in years) Say, after you get your 1st statement I’ll come back again and prove
we did everything we said we would.
STEP 3: Suggest we get started- All I need is your Fed tax ID and a void check to get
started. This is where the next person that speaks loses. Don’t say another word until they either give you their FEIN/Void check or an objection:
STEP 4: Be prepared to overcome closing objections. Overcome them and ask for their
business again.
Example of Summary Close:
Step 1: Summarize Benefits and Savings
So again Mr. Merchant, we can get you your money next day and your weekend deposits on
Monday, something your current processor doesn’t offer or you’d already be getting it. This
includes the new Amex OptBlue as well which is much less with us and faster as well and
another thing your current processor doesn’t offer. Our interchange plus pricing and statement
are much easier to read so you’ll finally know exactly what your costs are and exactly what our
profit is each month. And the best news is that you get all this as well as me here locally for
$1200 a year less than you’re currently paying.
Step 2: Fear and Doubt Removal
The process is really simple. It will take us 5 mins to get the paperwork wrapped up, 1-2 days
to get it approved and then I’ll be to install the terminal myself. It will come downloaded
already and I’ll help make sure it’s a smooth transition myself. I’ll follow up the next day and
once you’ve processed for a full month I’ll even come back in and review your old statement,
review your new one with you and prove I did everything I said I’d do it terms of savings and
service.
Step 3: Ask for The Business (have application ready and pull out)
All I need is a Federal Tax ID and a Voided Check and we can get going.
Step 4: Handling Objections (examples)
• Merchant- Sounds good but I need to think about it. How about you call me next week?
• You- I could do that, but let’s talk about it. What exactly is keeping us from moving
forward today?
• Merchant- I need to talk to my partner
• You- I understand, but when I asked you earlier and you said you make those decisions
and sign the financials documents
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• Merchant- I’m busy and I don’t have time left today
• You- I understand, I’m busy too but we just need a few mins. and it will take more time if
we need to set a new appointment and meetup again
• Merchant- I’m just not going to decide today.
• You- I get it, somethings keeping you from wanting to move forward. I don’t want to
waste your time or mine. Let’s just talk about it. We can do all those things better than
your current processor and not even cost you more money, rather save you $1200. I
know there’s something else keeping us from moving forward. What is it?
• Merchant- Well, I just want to get the best deal possible
• You- Ok, so if I understand you it’s the rate. Let’s talk about that. (maybe give them a
few basis point or pennies less and ask for their business again if they sign today)
The faster you get to the root of what’s in the way, the faster you can overcome it and move
forward. Just be authentic and talk about it. I wouldn’t throw these out right off the bat but you
can say…
ü Just give me a chance. We can do a month to month and if I can’t deliver everything I
told you, you’re free to go.
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Discovery Questions History, Background, Current Relationship 1. What is your current provider doing well for you that you appreciate? Puts them into a
state of gratitude and being reasonable. Also tells you what you must match, at a minimum
to earn the biz � 2. How did you wind up with your current processor? How long have you been with
them? Tells you how they made that decision � 3. How would you describe that relationship? What are the areas of improvement?
Uncovers any significant problems they are aware of. There will be other areas they are not
aware of.
4. Who typically signs your financial documents? Fits into their buying process and allows
you to determine if necessary parties are present �
Equipment, Functionality and Service
1. Speed. Is your current point of sale terminal/system keeping up with the speed of your
business during busy hours? Do you have and IP connection?
2. Replacement Reliability. Has your terminal every gone down? What would happen if
it did today? Would your Rep bring a replacement? What is the warranty/replacement
plan for your terminal? Do you own it?
3. Functionality. a. Are there any frustrating keystrokes that I can eliminate like the last 4 digits of a card
number? � b. Would you like an Auto close feature?
c. Do you ever get phone calls from customers claiming that they’ve been overcharged?
There are some steps we can take to avoid over-authorization. � d. Would it be helpful to you to put your web address on the bottom of your receipt? Have
you considered using your receipts as a marketing tool? �
Reconciliation and Accounting
1. Compass and Veteran Statements a) Who reconciles your statements every month? What’s the process look like exactly?
Do you need to have several people access our accounts? �
b) Do you have online reporting tools to help you forecast fees and monitor fraud? �
c) Have you ever lost a batch or had a stuck transaction or duplicate batch? �
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� 2. Amex OptBlue
a) How long does it take your current processor to fund your account? Do you receive
your AMEX funds at the same time?
b) Are the weekend batches lumped together, or broken apart by day?
c) Are you receiving a separate statement in the mail for American Express? �
Interchange Before we share with them a proposal...or rate...it’s important we understand their level knowledge and expertise. Speak exactly to their frame of reference...not above or below.
1. Check/Debit Card Rates a) Did your current processor notify you about the Durbin Amendment and how it will�
impact your check/debit card rates? Is your current processor passing through the
lower rates available for check/debit cards and small tickets?
b) Are you aware there is a diff transaction fee for tickets under $15?
� 2. Pass-through Interchange
a) Does your current processor show you know the breakdown of Visa, Check Cards,
Business/ Travel cards and the ratios of each coming through the door?
b) How did your company notify you about the last rate increases and decreases in
Interchange? �
c) Have you ever seen a true Interchange rate schedule? � d) Do you know exactly how much pro t your processor is making off your account every
month? �
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Glossary of Terms Acquirer: A bank that processes and settles a merchant's credit card transactions with the
help of a card issuer.
Application- There are multiple definitions here:
• Terminal Application- (aka, application, app, file or terminal file) This is a file of data
that’s downloaded into the merchant’s terminal. Some of the data is specific to the
merchant while some of the data is specific to the industry (retail or restaurant for
example). Different features (aka flags) may be turned on/off to create different options
for the merchant to process (ie: auto close, AVS, CVV2, etc.)
• Merchant Application- (aka app, merchant processing agreement) This is the
application a merchant needs to sign so we can submit and create a new MID. (See
MID)
Authorization: The first step in processing a credit card. After a merchant swipes the card, the
data is submitted to merchant’s bank, called an acquirer, to request authorization for the sale.
The acquirer then routes the request to the card-issuing bank, where it is authorized or denied,
and the merchant is allowed to process the sale.
Address Verification System (AVS) – A security feature that requires merchants to supply
address information for the cardholder in card-not-present transactions, such as those made
on a website. The merchant’s system verifies that the address entered matches the one the
issuing bank has on file and then confirms whether the information is valid or not.
Application Program Interface (API) – A set of rules and protocols that tells separate
software programs how to communicate with one another.
Authorization – An authorization is the initial request a merchant makes for a customer’s
issuing bank to release funds for payment.
Auto Close- This is a feature inside the file application (see application) that can be turned on
or off to allow the terminal to automatically close the batch at whatever time the merchant
wants it set to. Once closed, the batch sends the credit card sales to the processor.
Bank – A financial institution that handles merchant accounts and issues lines of credit. Also
see merchant bank or issuing bank.
Bank Identification Number (BIN) – For cardholders, a BIN is an identification number
consisting of a two-part code assigned to banks and savings associations. The BIN makes up
the first 6-8 digits of a card number, with the first part showing the location and the second
identifying the bank itself. This identifies the institution that issued the card to the cardholder,
as well as the card type (e.g., debit, credit, gift card).
Basis Point – One hundredth of one percent. A merchant’s discount rate will usually be
quoted in this format, as a percentage or a fraction. Also see discount rate.
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Batch – A group of authorized transactions, typically used by the merchant in the settlement
process at the close of business each day. Also see settlement.
Batching: The second step in processing a credit card. At the end of a day, the merchant
reviews all the day’s sales to ensure they were authorized and signed by the cardholder. It
then transmits all the sales at once, called a batch, to the acquirer to receive payment.
Black List (see Match List) Brand – The card associations or organizations behind the labels on a credit card. Visa,
MasterCard, American Express, and Discover are often referred to as “the brands” within the
payments industry. Also see card association.
Breach – An exploitation of security measures to access and compromise a merchant’s
cardholder data environment.
Card Association or Card Network: Visa, MasterCard or other networks that act as an
intermediary between an acquirer and an issuer to authorize credit card transactions.
Cardholder: The owner of a card that is used to make credit card purchases.
Cardholder Data – Sensitive information belonging to the authorized user of a credit/debit
card, including an individual’s name, address, payment card number, PIN, and verification
codes.
Cardholder Verification Value (CVV2) – A three- or four-digit number that is printed on a card
to verify its authenticity. The “2” refers to the printed code on the card. (CVV1 is encoded on
the magnetic stripe of the card.)
Chargeback – When a customer does not receive his goods or services or says he didn’t
place an order or make a purchase, he can ask his issuing bank to charge back the purchase
to the merchant within a 60-day timeframe. The issuing bank will notify the merchant when this
happens, after which the merchant will need to validate and defend the purchase by providing
such information as the amount, an invoice or folio, customer signature, or shipping
documents. Also see retrieval request.
Clearing: The third step in processing a credit card. After the acquirer receives the batch, it
sends it through the card network, where each sale is routed to the appropriate issuing bank.
The issuing bank then subtracts its interchange fees, which are shared with the card network,
and transfers the remaining amount through the network back to the acquirer.
Compliance – Merchants that accept credit card transactions must meet or exceed
regulations set by the local government, federal government, the card associations, and the
Payment Card Industry Security Standards Council (PCI SSC). Also see Payment Card Industry Security Standards Council (PCI SSC).
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Credit Card – A payment card that authorizes the person named on it to charge goods or
services to his account. Credit card issuing banks earn money through interest charged to the
cardholders and, in some instances, through fees charged for the use of the card or access to
rewards programs. Credit card issuing banks also profit from a portion of the fees charged by
the card association known as interchange fees. Also see issuing bank or issuer.
Debit Card – Debit cards let buyers pay for goods and services with funds from their checking
account and are an important part of any merchant’s business. Debit cards give consumers
more flexibility in their payment options and can be used in two ways: online debit and offline
debit.
Online Debit – Sometimes referred to as PIN debit, online debit is processed on the ATM
network of the cardholder's bank. The card is swiped or inserted at the point of sale and the
consumer is asked to enter their Personal Identification Number (PIN). As a merchant, you
must be specifically set up to accept these types of transactions through your merchant
account and you must have special hardware to accept the PIN entry from the customer.
Offline Debit – Sometimes referred to as signature debit, offline debit is processed in a
manner similar to a credit card transaction. If the debit card carries a card brand, such as
Visa or MasterCard, the card may be processed by simply swiping it through a credit card
terminal that supports that card's brand. The transaction is processed over the merchant's
credit card network and the customer provides their signature as approval of the
transaction.
Debit Network – The electronic system used for debit card transactions to make purchases,
get cash from ATMs, and pay bills online. The debit network’s logo, such as STAR, NYCE, or
MAESTRO, is usually printed on the card.
DPI (Discount Per Item)- This is the transaction fee paid to the merchant bank. It’s a part of
interchange
Discount Rate or Discount Fee – This is the fee paid to a merchant bank to handle the
deposit of credit card funds into a merchant account. It is usually quoted as a percentage to
hundredths (or the basis point) on the monthly bill. For a more in-depth explanation of the
discount rate and other fees, read our Credit Card 101 tutorial. Also see basis point.
Distinctions- Certain things that separate us from or competitors and give us an advantage.
Some distinctions are unique to us while others are fairly unique but often not imitated.
Durbin Amendment- passed as part of the Dodd-Frank financial reform legislation in 2010,
required the Federal Reserve to limit fees charged to retailers for debit card processing.
The amendment was a last-minute addition added by Illinois Senator Richard Durbin, after
whom the amendment is named.
Effective Rate – This is the true amount charged by the merchant bank when processing each
transaction. It is often more than the quoted discount rate because it is the calculated, bundled
rate including the discount rate, assessments, and other per-item transaction fees. For an in-
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depth explanation of why monthly fees are likely more than was originally quoted, read
our Credit Card 101 tutorial.
EMV – EMV is a smart chip technology that offers an additional step for authentication beyond
the traditional magnetic stripe card payment for card-present transactions (commonly called
Chip and PIN or smart cards). In addition to the security chip, which is placed inside of a
reader during a transaction, EMV also verifies the cardholder’s identity with the use of a PIN or
signature. The original EMV standard was created by card-granting organizations Europay,
MasterCard, and Visa in 1999, and has been in standard use for credit cards in Europe and
Canada. EMV technology is now becoming a global standard, with EMV compliance required
of merchants and processors in the United States by October 2015. However, EMV cards still
pose a security risk and will not protect merchants or their customers with the level of security
offered by the use of point-to-point encryption (P2PE), nor will EMV protect purchases made
through websites.
Encryption – Encryption is a process of encoding or scrambling data so that it can be read
only by authorized people or programs with a decryption key.
Federal Reserve System (Fed) – 12 Fed banks comprise the central banking system for the
United States and are a large part of the Federal Reserve System. Most large businesses and
issuing banks have accounts in the Fed banks, much of the money that changes hands during
the settlement process moves only from one Fed account to another.
Forecast- Summarizing your appointment with a merchant when you initially sit down with
them so they know what to expect and what’s going to be covered in the meeting.
Funding- The fourth and final step in processing a credit card. After receiving payment from
the issuer, minus interchange fees, the acquirer subtracts its discount fee and sends the
remainder to the merchant. The merchant is now paid for the transaction, and the cardholder is
billed.
Gateway – A payment processing solution that protects cardholder data during the payment
transaction process.
Gift Card – It’s your favorite thing to open on your birthday! The technical definition is that a
gift card is a stored-value payment card for a specific merchant that is usually preloaded with a
set monetary value.
Hold – A hold is placed on a portion of the customer’s credit limit or debit balance if the final
transaction balance is unavailable or unknown, such as during a hotel stay. For example, at a
hotel, after calculating how many drinks the customer took from the mini bar or room service
charges, the merchant can finalize the transaction for the total amount.
Independent Sales Organization (ISO) – See merchant services provider.
Interchange (Interchange Fee)– This is the fee charged by Visa and MasterCard to complete
a transaction and deposit money into a merchant’s account. The fee is based on credit card
regulations and the capture of appropriate data, including card swipe, address, and electronic
signature, as needed.
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Note: American Express and Discover do not participate in the interchange process. Instead,
American Express and Discover each act as their own issuing bank, merchant bank, and card
associations, handling all aspects of the card transaction and not sharing any of their fees.
Merchants must have a separate agreement with American Express and/or Discover in order
to process transactions using their cards.
Other Terms Related to Interchange
Qualified
Mid- Qualified
Non- Qualified
Issuing Bank or Issuer – A bank or other financial institution that issues credit cards. Issuers
charge cardholders interest and associated fees as they apply to the use of the various
branded cards. Issuing banks hold the majority of the power in the credit card industry because
they set the rates and terms of credit issued and repaid.
Knuckle-Buster – A machine that makes an impression of a credit card on a carbon receipt.
Not often used today, many merchants still have them as a backup. Those who have been in
the payments industry for a long time may refer to these devices as “zip-zap machines.”
Magnetic Stripe – A type of card, sometimes called a mag stripe, capable of storing data by
modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material
on the card.
Match List – The MATCH List provides a list of all merchants and individuals that have had
accounts terminated with cause. MATCH is an acronym for Member Alert to Control High Risk.
It is also known as the terminated merchant file (TMF).
Merchant – Merchants are authorized to accept a credit card as payment for goods and
services.
Merchant Account – A specific line of credit that enables merchants to accept credit card
transactions for goods and services, enabling the bank to pay for authorized credit requests
prior to receiving funds from the issuing bank. There are a few different types of merchant
accounts, described below.
Card-Present Merchant Accounts: • Retail – The most common form of merchant account, retail merchant accounts are
used for businesses that provide goods and services in a face-to-face environment. If a
merchant will be relying on magnetic stripe data and does not qualify for any of the
other card-present categories, then this is the type of account normally used.
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• Restaurant – Restaurant merchants follow all of the same rules and requirements as
retail merchants. However, “tip” and “clerk” are two additional fields that are required by
the card associations in order for a transaction to be eligible for the quoted discount rate
for a restaurant.
• Hospitality – Hospitality merchants have more information to handle than any other
merchant type. Things like check-in date, number of nights stayed, incremental
authorizations, etc., make it difficult (but not impossible) for hospitality merchants to
qualify for their quoted discount rate. In the case of resorts and large, full-service hotels,
it’s not uncommon for there to be multiple merchant accounts of varying types on the
same property.
Card-Not-Present Merchant Accounts:
• Mail Order/Telephone Order (MO/TO) – MO/TO is used when the merchant’s primary
mode of sales is not conducted face-to-face with the cardholder. There is a higher risk
of fraudulent activities, and, as a result, MO/TO accounts carry higher discount rates
than the previously mentioned account types. Additional security checks must be
handled as well, such as Address Verification System (AVS) and Cardholder Verification Value (CVV2).
• e-Commerce – e-Commerce merchant accounts carry the highest quoted discount
rates. There are two different types of e-commerce accounts: physical and digital. A
physical account represents a Web merchant that is shipping or providing some form of
tangible product to the cardholder, whereas a digital merchant provides a service.
Merchant Bank – A bank where merchants hold their account(s). The bank provides
merchants with the money from a transaction before the actual funds have been processed via
interchange from the various cardholders’ issuing banks. The charge for this service is the
discount rate, but the merchant bank also shares in the interchange fee charged by the card
associations.
Merchant Identification Number (MID) – An identification number that, to the merchant bank,
represents a merchant’s point-of-sale terminal or profit center for the purpose of processing
and tracking credit card transactions.
Merchant Services Provider (MSP) – This organization handles the setup of the front-end
and back-end processors and the paperwork required in order for a merchant account to be
able to receive transaction funds. A merchant services provider can work directly for a
merchant bank, but is usually an independent sales organization with ties to many merchant
banks. In some cases, merchant services providers and independent sales organizations are
agents for American Express and/or Discover who can enable the acceptance of those cards.
Methodologies- Our processes of setting and running appointments based on distinctions and
value selling that help seperate us from our competitors.
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Next Day Funding- Typical funding is 2-5 days for a merchant to receive their credit card
sales after they settle their daily batch. With next day funding, they receive their credit card
sales deposit the next business day as long as they batch out by 11PM EST. They also
receive their weekend money on Monday instead of the typical Tuesday. This is a TRUE ACH
of real funds, not just a memo post.
NFC – Formally known as near field communication, NFC is a set of close-range wireless
technologies that enable a connection for processing mobile payments.
Payment Card Industry Data Security Standards (PCI DSS) – Created in 2004 by the four
major credit card companies (American Express, Discover, MasterCard, and Visa) and
maintained by the PCI Security Standards Council (PCI SSC), the PCI DSS is a widely
accepted set of policies and procedures intended to optimize the security of credit, cash, and
debit card transactions and to protect cardholders against the misuse of their personal
information. Also see cardholder data.
PIN – A personal identification number commonly used to verify a transaction being made with
a debit card. EMV (Chip and PIN) cards may also require entering a PIN to verify card-present
purchases.
Point of Sale (POS) – The mechanism or application through which a payment transaction is
processed in exchange for goods or services. The term “point of sale” may refer to the actual
mechanism or application that processes transactions, or it may also be used in reference to
the point-of-sale system that manages all point-of-sale mechanisms or applications for a
retailer. More specifically, commons terms used to describe types of POS are:
• POS System- typically a touch screen POS system like in a restaurant or a larger retail
location needing ordering, sku’s for inventory, clock in/out, etc…(thousands of dollars)
• Terminal- smaller countertop terminal plugged into a phone line or IP line. Good for
smaller restaurants/retailers needing less functions (couple hundred dollars)
• Mobile POS- The use of a phone or tablet connected to a cell phone signal and either
hand key or plug swiper into headphone jack. (less than $100 and good for food trucks)
• Virtual Terminal- A terminal within a secure URL on a computer connected to the
internet. (typically free. Good for recurring payments or anyone with online access)
Point-to-Point Encryption (P2PE) – A security solution that immediately encrypts cardholder
data at the swipe device so sensitive data is never actually processed or stored in your point-
of-sale system. As soon as a credit card is swiped, the information is intercepted, encrypted,
and sent for processing
Processor – A company (often a third party) that handles credit card transactions for merchant
banks and is usually paid per transaction. They are usually broken down into two types: front-
end and back-end. However, there is a gray area.
In the simplest sense, front-end processors tell merchants if the card is authorized and back-
end processors settle the charge and move the money. Front-end processors have
connections to various card associations and they supply authorization and settlement
services to merchant accounts. Back-end processors accept settlements from front-end
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processors and, via the Federal Reserve Bank (Fed), move the money from the issuing bank
to the merchant bank. In some cases, the merchant bank gets the settlement information from
front-end processors and in other cases, from the back-end processors. This is the gray area.
The situation becomes even less clear when you consider that some third-party processors are
Both front-end and back-end processors; some merchant banks are their own front-end
processors, back-end processors, or both.
Property Management System (PMS) – A computerized system that streamlines operations
by simplifying processes through the use of a single software solution for coordinating tasks
and activities such as accounting, budgeting, forecasting, maintenance, and more.
Settlement – This is the process merchants must complete at the end of the day in order to be
paid for their transactions.
The merchant sends all of the transactions authorized that day back to the front-end
processor, who forwards them to the back-end processor (or occasionally directly to the
merchant bank). Transaction records are then forwarded to the Federal Reserve Bank (Fed),
where funds are moved from the issuing bank to your merchant bank. (By this point the
merchant bank has typically already deposited the money into your merchant account, making
this payment a “repayment” to them fronting you the money.)
Terminated Merchant File (TMF) – See MATCH List. Terminal Identification Number, (TID or TIN) is a unique number assigned and linked to a
specific point-of-sale (POS) terminal or workstation that can be used to identify the merchant
operating the terminal during credit card sales transaction processing
TMF List (Terminated Merchant File or Black List)- see Match List
Tokenization – A payments industry term describing the concept of using a non-decryptable
piece of data to represent, by reference, sensitive or secret data.
Void – A void cancels a transaction that has been recorded for settlement, but has not yet
been settled.
