Are POS VARs Missing Out On Payment Processing Revenue?

By The Business Solutions Network

If you would have asked me three months ago how many of the Business Solutions magazine POS readers sell payment processing services to their merchant customers, I would have guessed that the majority did. However, today, after the Business Solutions team recently completed phase one of a reader outreach campaign to better understand the challenges VARs face, I feel differently. Based on these recent reader calls, I'm shocked at how many of our POS readers don't offer payment processing. I can't understand this at all.

There are two primary reasons why POS VARs should be selling payment processing:

1. Stickiness -- ISOs and independent agents are slowly beginning to sell POS hardware and software. Some successfully and some not. Regardless, they're encroaching on your sales domain. Let me rephrase that: your livelihood!  There's good news. Due to the barriers to selling and installing POS hardware and software, they have a tougher road than you do to learn payment processing. Offer payment processing now and make your solution more complete and your hold on your customers more sticky.

2. Residual Income -- Quick test: do you like free money? Unless you're reading this article while sitting on a gold throne, you'd probably welcome some additional revenue. Sell your customers payment processing and you'll earn residuals every month on their card processing. How much? Some readers have told me it's enough money to pay their electric bill. Others reported that they can fully fund a tech position. Others are funding their retirement. Regardless of how much, it's more than nothing and requires little to no ongoing effort.

When we asked readers why they don't currently sell payment processing, many had the same reason that has something to do with a lack of understanding of the confusion world of payment processing. Look, I'll admit that it is confusing. However, to let that stop you is ludicrous. The fact is, many of the processing companies (and even some distributors) operating in the POS channel today can help you win this business. I'm talking everything from educating your employees, to marketing help, to actually going on sales calls with your team!

In my 6 years with Business Solutions magazine, speaking with hundreds of VARs, recalling my years as a VAR, I know how tough it can be. When you've got an opportunity to add some revenue and the cost to your company is relatively low, you've got to go for it. It's yours for the taking.