Filed under News
A glimpse into the future.
ROAM Data supports merchant account providers. We have a vested interest in our clients being successful, not just on a sale today but over the long run. Here’s a story that I think clearly shows the risk of not adapting to changes in the mobile processing marketplace.
Mobile Card acceptance is revolutionizing political campaigns. Sean Gately is running for State Senate in Rhode Island walks door to door in his district, garnering support for his campaign, and if possible getting donations. Sean would like to accept credit cards while on the road, at fundraisers and meetings with supporters and he needs a merchant account. (disclaimer, Sean works for ROAM Data, this is a real story). He calls up an ISO and asks for the details on getting account for his campaign and is told that it will be $.20 per transaction, 20bp on top of interchange, a $15 monthly statement fee, $99 per year PCI, and the list went on. Sean hung up. He then called Sage Mobile Payments, they offered him a simple pricing plan that was easy for him to digest and understand, and he was underwritten in less than 36 hours.
ROAM Data supports merchant account providers with a low-cost mobile solution so they can attract merchants that might have otherwise been priced out of accepting electronic payments. Selling to these merchants is like selling to a consumer. The old way of doing business with the complexities of fees and charges is about to be over. Square has changed all that. Square was designed because Jim McKelvey, one of its co-founders, was like Sean and hated the process of trying to get a merchant account. But Jim didn’t have another option when he hung up from the ISO, so he created one (with the help of some friends.) Square has changed the game, and unless the existing players in the marketplace adapt, they will die. Mobile merchants even seem to be willing to pay more for the simplicity (for now.) Simple pricing plans for underwriting are proliferating. Square, PayPal, Sage Mobile Payments, Pay Anywhere, Intuit and others have all introduced at least one tier of simple pricing and can now compete in this brave new world.
ROAM supports merchant account providers, not only with our secure platform, but with education and thought leadership. We aim to empower our clients to thrive in the new mobile eco-system, leveraging our focus for their gain. This system is evolving rapidly, and it is our opinion that you must adapt to survive.
- Rob Stringer