the card payments industry is often a two-edged sword: potentially a
financially rewarding endeavor, yet often difficult for the sales
professional new to an unfamiliar industry. This program is designed to
assist both new and seasoned veterans attain true financial success by
employing a simple and effective sales process.
A BRIEF HISTORY OF PAYMENT
To understand where we are going it’s helpful to know where
you came from. Developing an understanding of the history behind the
payment industry will provide a framework for understanding future
ASSOCIATIONS, ACQUIRERS, AND ISSUERS
We will split the processing industry into its component parts
- the companies who provide the actual services and those who manage
the sales aspects. Associations, and the constituent banks who perform
the issuing and acquiring services, will be discussed in detail.
THIRD PARTY PROCESSORS, ISO'S AND MSP’S
The companies who manage the lion share of selling to the
merchants are covered under the umbrella of third party processors, ISO
and MSP providers. Most agents will find that they will be dealing with
these companies as a resource from which processing services will be
iPROCESS - Knowing the Industry
Chapter 8 - ‘Payment Processing Basics - Then and Now’
sure ways to fail - think and never do or do and never think.”
Associations, Acquirers, and Issuers
Today, the payment industry can be ‘split’ into roughly two
groups – the businesses that constitute the engine behind our modern
payments industry, and complementary business whose primary focus is to
sell these services to the merchants (those businesses who accept
Let’s look at our first group.
There are many associations within the payment industry, yet
non-so powerful as the two largest bankcard associations: Visa and
These associations are made up of literally several thousands
of financial institutions. These financial institutions are referred to
as ‘member banks’. The association maintains a governing role in the
establishment of rules and regulations, which govern the activities of
its member constituents.
- Product development and advertising*
- Establish, review, and enforce governing rules impacting
the various aspects of the payment product
- Clearing and Settlement
*Additional services and functions occur as well at the
association level which are not discussed in this section.
Acquiring: The act of collecting sales activities and
crediting the merchant ‘monies due’ as a result of a card purchase This
term refers to the actions of a member bank collecting sales activities
from the merchant and crediting the merchant for the sales activities.
Acquirers are contractually bound to the merchant, and it is the
acquirer who conducts the majority of the settlement activity ....