Tech Trends: Bank On Payment Processing
By Brian Albright, Business Solutions magazine.
POS VARs can leverage their client relationships to expand into payment processing.
For resellers that have established themselves in the point of sale (POS) market, expanding into payment processing seems like a natural migration. In order to be successful in the payment processing sector, though, VARs will have to forge a strong partnership with their vendors and compete with traditional independent service organizations (ISOs) and agents that have more experience.
"VARs have a certain captive audience," says Joe Natoli, senior executive vice president and director at NPC. "Those merchants have spent a considerable amount of money on their software and hardware, and there is an element of trust with the VAR. That makes for an easier segue to get into payment processing when there is already a VAR relationship."
ISOs, in fact, may have an easier time learning the ins and outs of POS systems for a particular vertical than a POS VAR would have diving into payment processing. However, POS VARs can easily ramp up their knowledge once they've identified a need for offering payment solutions to their merchants.
When evaluating potential payment processing partners, VARs should look for processors that own their own platform; such companies can provide better partnership profit sharing, more control over reporting, and more advanced security and competitive pricing.