Why Transparency Should be Important to ISV/VARs and Their Merchants
There’s little doubt that today’s technology is complex, and ISVs and VARs must embrace the ever-changing POS and Merchant Processing Industry to stay relevant. Dig a little deeper and one can quickly see that there are other elements at play. There is an increasing need to offer downstream transparency, from the processor to the merchant.
Today’s technology advancements affect what merchants expect, but ISVs and VARs can never forget the basics when it comes to their clients’ needs: excellent customer service, strong relationships, open communication, and being transparent in their offerings.
Similar to the merchant processing offered to their merchants, ISVs and VARs are looking to ensure they are paid properly from their merchant service partner. To close any existing gaps in this method, transparency in residuals and easy-to-read detailed reporting is crucial when it comes to ISVs and VARs reconciling their books at the end of the month.
As an ISV/VAR, there are items that need to be addressed when searching for a partner in the merchant processing arena. While some revenue splits sound great, it is important for ISVs and VARs to know if what they were told matches what they receive. To know for sure, ISVs and VARs should keep these ideas in mind to make sure they are truly getting what they deserve:
ISVs and VARs Should Demand Transparency By:
Receiving a True, Concise Schedule A. They should know their terms and exactly what their split is before they sign with a partner.
Demanding Powerful Residual Reporting that is easy to understand with the ability to drill down to the interchange level. Rather than simply knowing their merchants’ volume and monthly revenue, ISVs and VARs should look for a partner that is willing to share their profits all the way down to interchange rates.
Requiring they have Open Lines of Communication with their processor. This might require a dedicated member from the processing team that manages their development process.
Making sure the Transparency Reaches Their Merchants. ISVs and VARs should confirm with their processor there are no hidden, surprise fees that will hit their merchants’ statements. This is a tactic that can be costly to their clients and a method used to avoid paying the ISV/VAR their true split.
ISVs and VARs should partner with a group that is committed to their success and doesn’t hold back information that can hinder them from achieving their objectives. With the right infrastructure in place, it costs almost nothing to implement transparency into a business. With the right partnership in place, openness and transparency should be relevant across the board, from the processor all the way down to the merchant.