A veteran acquiring executive describes recent changes at First Data Corp. as the awakening of a sleeping giant.
One of those changes is a renewed emphasis on ISOs and agents, says Jerell Olive, general partner at Cary, N.C.-based Applied Merchant Group LLC, which does business as Bankcard Source.
Im very enthused about the change in outlook, Olive maintains. Theyre very ISO-centered. They want to help us grow.
He came away from a recent First Data meeting convinced that the processors relatively new top management believes in strengthening the companys focus on ISOs. For a little over a year, Frank Bisignano has served as chairman and chief executive officer, and Joe Plumeri has been vice chairman.
I am very keen on the principle that all rises and falls on leadership, says Olive. When I see the new leadership, I see their enthusiasmI like to call it the firefiltering down through First Data.
The leadership and commitment to ISOs also impresses First Data executive, OB Rawls, senior vice president and general manager, national and ISO portfolio.
He says his new bosses thought hard about what the company could do to become what they called the greatest place in the U.S. for ISOs to do business.
I know it sounds a little hokey, but thats the real truth, Rawls says as looks back on the last year. Those are the conversations we had internally.
What they had to work with to reach that vaunted goal was a huge company cobbled together from multiple acquisitions. That left First Data with a number of platforms that required some of its ISO customers to enter data more than once.
It just wasnt a convenient way to do business, Rawls admits.
Meanwhile, focus groups of ISOs and merchants were asking for tools to help them manage their businesses.
So First Datas worked out what the company calls six pillars for its new client tool set.
First, a new boarding tool requires ISOs and agents to enter data only once. The cloud-based tool directs the information to all of the right platforms.
A second pillar offers merchant-level reporting. Merchants can dial in from any device to view their deposits, First Datas adjustments and chargebacksall on a daily, weekly or monthly basis. Because its a self-service tool, ISOs are relieved of some of their service duties, Rawls says.
Third, an interchange-management tool makes life simpler for ISOs and merchants. Rawls points out that the six levels of interchange that prevailed when he entered the business have grown to several hundred. With ISOs facing 20% attrition of their sales staffs, the need for help with interchange becomes even more acute, he says. The tool provides interchange by merchant, category and SIC code, a system that classifies industries.
A portfolio management tool, the fourth pillar, includes risk and profitability modules. It takes the reporting down to a micro level, Rawls says.
Fifth comes a customer relationship management tool thats concentrated on self-service and thus reduces reliance on call centers. It includes document management so that ISOs can view contracts online. The CRM tool also enables ISOs to communicate with First Data through a chat feature that directs each query to the proper department or platform.
Sixth, a residuals tool helps ISOs and agents compute and track compensation.
For Rawls it all amounts to simplifying the job for ISOs and their merchant clients, all of whom would prefer to devote their time to building their businesses instead of manipulating numbers.
Its easy to say you want to be the best place for people to do business, but its hard to put the tools and commitment in place, he says. Weve made a multi-million dollar investment to the ISO community.