A Mobile Future for Merchant Service Providers

This year marked the first Mobile Commerce Summit hosted by the ETA and held in Chicago. It educated attendees on the current use of mobile technology for small business merchant processing as well as its promising future in this market. It is predicted that mobile will have a strong impact on the industry. Because this is such an innovative endeavor, you may not feel quite up to par. However, there is no need to worry if you feel that your company is falling behind. This will be an ongoing learning process for everyone in the industry. Let’s take a look at the evidence that supports the future of mobile credit card processing service.

Many companies have already started to develop a more mobile approach to merchant processing. For example, Lowes is planning to implement iPhones as POS devices for customer service. Another store investing in a more mobile credit card processing service is Nordstrom. This retailer has already ordered a plethora of iPads for in-store use. Finally, Sparkbase has seen positive results and is quickly growing due to the use of the PayCloud mobile wallet.

After looking at these few success stories, it may seem like everyone is getting involved with some kind of mobile solution. However, it’s important to remember that these previously mentioned companies should be seen as early adopters. This is still a young and constantly evolving market. To help prepare your company for the future, it would be best to start educating yourself now on what is to come.

To help you begin the learning process, here are two crucial insights from panelists at the Mobile Commerce Summit.

Think Beyond Payments

As merchant service providers, you may be used to focusing all efforts on your credit card processing service, and this may have worked well previously when the job consisted of selling a credit card terminal to newly identified credit card acceptors. For existing clients, you may have helped lower their merchant processing costs. However, with the evolving market, your client relationship cannot be solely focused on the payment.

Mobile wallets, such as the Google Wallet, have more capabilities including the addition of coupons and other marketing strategies. You may also have heard of Square, which offers credit card processing along with a POS solution. The mobile future is beginning to develop beyond payments.

Focus on Merchants

Once you’ve broadened your idea of merchant processing and the future of mobile payments, you may discover even more ways to stray from offering only the typical payment solutions. To find new and innovative ways to help your merchants, try focusing on their current problems, needs and what specific ways you can help them with their business. This will position your company as a reliable merchant service provider.

About The Author:
Jeff Zimmerman serves as Clearent’s Vice President of Product Management and Marketing. Having held senior product management roles at Network Solutions and Intuit – maker of Quicken, QuickBooks and TurboTax, Jeff brings 15 years of product management, finance and marketing experience in the financial services and software industries. Among our solutions, we offer a mobile credit card processing service for our merchants’ convenience. Learn more about our merchant processing products and services and how they can help your business.

Find Answers to Common Questions with Merchant Services Software

Merchants have a busy day-to-day schedule, constantly dealing with the typical operations of their business. Sometimes they have to take time from their busy schedules to ask their merchant account service provider questions about their statement or a particular transaction. Instead of answering the same questions over and over again, it may be more efficient to teach your merchants how to find those answers online through the use of merchant services software. Helping merchants answer their own questions can help you provide the best credit card processing service possible. Here are a few typical situations that can be confusing.

1. I don’t know why my costs are increasing. What’s driving up my costs?

   When it comes to a merchant’s credit card processing service, there are several factors that can impact the cost. The main reason depends on the various credit card types being used by the merchant’s customers. This is why merchants should to figure out which of these cards are being used the most by reviewing their monthly statements or using merchant services software.



2. I don’t understand my merchant statements.

   Merchant statements vary greatly between merchant account service providers and can be difficult to understand. Once they’ve had a more thorough explanation, they’ll be more able to trust you as the best credit card processing company and they’ll feel better knowing where costs are coming from.



3. Locating my old merchant statements is difficult. Is there an easier way?

   Often times, merchants need to locate their old statements, whether for themselves or for an accountant, and it can become a recurring question that providers are asked. To reduce the time spent answering this question often, make sure merchants understand how to use their merchant services software to download their statements.

By spending time reviewing key components of merchant services and teaching merchants how to find and analyze information on their own, you will be saving yourself more time in the long run – creating a more efficient working environment.

About The Author:
Nick Karcher is a Relationship Manager with Clearent. He began his career in merchant services as an Account Executive and later started his own Independent Sales Office, growing an impressive portfolio before joining the Clearent team. Nick currently manages Account Executives and Relationship Managers who service both referral and agent banks.

Clearent is a different kind of merchant account services provider, offering a flexible proprietary acquiring platform and best-in-class service for not only your organization, but your merchants as well. Learn why you should choose Clearent. Our online merchant services software can help you maximize profitability and stay on top of your business.

Using Regulatory Changes to Grow Your Merchant Services Program

In an industry that’s always changing, it’s important to find ways to leverage the recent regulatory changes surrounding the Durbin Amendment and debit card processing interchange. While the interchange caps have reduced income for larger issuers with assets in excess of $10 billion, some merchant services programs have been able to use their lower rates to their advantage.

Add to that recent marketing campaigns such as Bank Transfer Day and Better Name for Banking and it’s easy to see how small community banks and credit unions are able to benefit from the larger banks indecision about how they plan to make up the revenue lost as a result of the Durbin Amendment.

This new cap on debit interchange is beneficial to merchants and can help you grow your merchant services program, providing you take the right approach. This is a time to embark on a new opportunity. For example, if you haven’t marketed to your commercial consumers yet, now is the time to sell your merchant services program by informing possible clients about the chance to reduce costs. Because of this change in the merchant services industry, it’s a great time to create interest around your business. You can also ride the growing wave of negative sentiment towards the big banks and their miscellaneous fees by promoting your services to new customers.

Although this is a great time for new customer acquisition, don’t forget the importance of retaining strong relationships with your current customers. If you have not already done so, let your current clients on interchange pass through pricing they will automatically reap the benefits of the new debit card processing changes. Enjoy this opportunity to better your customer service by utilizing good communication, making the client happy, and protecting your business from competitors.

Additionally, be aware of certain companies taking advantage of the Durbin Amendment be granting false information to consumers. Because of these difficulties and because Durbin is such a new change, you need to be prepared to answer any questions your consumers may have. Be sure to educate yourself over the topic.

About The Author
Nick Karcher is a Relationship Manager with Clearent. He began his career in merchant services as an Account Executive and later started his own Independent Sales Office, growing an impressive portfolio before joining the Clearent team. Nick currently manages Account Executives and Relationship Managers who service both referral and agent banks.

Clearent is a different kind of merchant account services provider, offering a flexible proprietary acquiring platform and best-in-class service for not only your organization, but your merchants as well. Learn why you should choose Clearent.

Durbin Amendment Brings Risk of Debit Credit Card Processing Scams

As you probably know by now, the Federal Reserve Board came to an agreement on how to regulate debit card interchange. As of October 1, every merchant with Interchange Plus pricing received a cut in their debit card processing fees, which means they will start seeing significant savings for their business.

More savings means more profits for your merchants. Because of this, many less informed merchants will become the target of debit credit card processing scam artists. In the weeks to come there may be “specialists” who come to your merchants door stating that they will be able to save them loads of money. All they would have to do is allow the specialist to examine their statement and the specialist would pass along this information to his payment processor and the card associations, with whom he had previously worked out a deal which would save the merchant an exceptional amount of money.

A knowledgeable merchant service provider knows that these “savings” the “specialist” is talking about are a direct result of the Federal Reserve Board’s decision. However, to the uninformed merchant this looks like an excellent business opportunity. Ensuring that your merchants do not waste money, and that you do not loose business, starts with education.

Many merchants are aware that the new Durbin amendment will affect the way their business handles debit credit card processing. However, many are not aware of the con artists out there who are stalking them, especially those with larger profits. As they see it, the more the merchant has to loose the more they have to gain.

Explaining the risk of debit credit card processing scams to these merchants is a good place to start, and then you can advise the rest of your merchants. When speaking with your merchants about such risks, it is important not to preach to them. Rather than telling them what not to do, share with them some actual stories of businesses that have been taken advantage of, as a cautionary tale. They can then reach their own conclusions, which will hopefully be that you are a trusted merchant service provider whom they can stay with for a long time.

Providing the Best Merchant Credit Card Processing Service

The word routine is most common in the part of our lives that encompasses the time we spend away from work. Be it making your breakfast, brushing your teeth or tying your shoes, a routine is something you do without even thinking. When it comes to the world of business, however, the word routine is less ubiquitous. Somehow the idea of doing something so many times that you don’t even have to think while completing it, rubs people the wrong way.

A routine does not have to be a mindless activity. On the contrary, it could be a very well thought out and executed task, the only portion that needs to be second nature is the initiation of the task.

In every industry there is a standard for success, and achieving this success is built upon growth – whether personal, financial or for your business as a whole. This is especially true in the highly competitive field of merchant services.

If a merchant services sales person developed a list of mandatory task he or she had to complete each and every day, these tasks would eventually become a routine. Not in the execution of these tasks, but in the initiation of them. Below is a list of tasks that, if committed to a daily routine, will set you on the right path becoming the best merchant credit card processing service.

1. Merchant Management
   Knowing the sales volume of each of your merchants will help you understand which of them are satisfied with your services and which are at risk of leaving. Addressing the high-risk merchants before they have left will build strong CRM as well as save you profits. Your merchant services partner should be able to provide you with reporting on you merchants.

2. Merchant Acquisition
   Growing your merchant services program rarely happens on its own. Bringing in new merchants takes time and effort. Dedicating a portion of every day to calling new merchants is the most reliable was to improve your current portfolio.

3. Merchant CRM
   Acquiring new business is only half of the equation. Following up with them is equally important. Customer relationship management should be added to your schedule each and every day.

4. Staying Relevant
   The merchant services industry is one that is always changing. This means that in order to be the best merchant credit card processing service and to stay relevant to your merchants, you must stay informed. Setting aside a few minutes of your day to look up industry terms, new technologies and what your competitors are doing is a great way to stay on top.

The common belief is that is takes 21 days of repetition to turn something into a routine. When thinking about next month’s schedule, it may be ideal for you to add each of the listed items above to your daily checklist. What may start as being something time consuming and tedious will turn into something that is simple and the driving force that is turning you into the best merchant credit card processing service in your industry.

New Merchant Services Software Gaining Popularity

If you are not familiar with Square you should be, as it is one of the most highly acclaimed merchant services around today. Square recently developed a mobile wallet called Card Case, which is an app that allows you to purchase items directly from your mobile device. This new merchant services software has not generated the popularity that its mother company Square has, but the trend is gaining buzz in select businesses and markets across the nation.

Getting started requires that you make an initial visit to the business and register your information. Then the next time you return you will be able to “start a tab” as soon as you are in range of the store and order. For example, once you pull into the parking lot you can start a tab while sitting in your comfortable air-conditioned car with your favorite music playing. The cashier will then find your information when you pick up your order and that’s that, no need for cash or a card as the transaction has already been made and will appear in the history tab of your Card Case app.

While this is a neat app for small take-out businesses, it’s difficult imagining it moving to the mainstream of merchant services software. The setup is somewhat annoying, in that it requires you to visit the business to set up an account and then make a second visit before you can actually use it. Also it will be hard to get people to use it over cash or a typical card-based payment because Card Case isn’t really that much of a time saver. Unless of course the business is insanely crowded, then sitting in your car greatly trumps a long line.

The mobile wallet has in no way become an ordinary method of payment. However, if businesses paired its use with an incentive of some kind, a coupon or product give away, it would become more desirable to consumers. But with the rapid growth of mobile payments, it will be interesting to watch the changes unfold.

Mobile Payment PCI Compliance Process Updated

In addition to commemorating America’s independence, you also could have celebrated the PCI Security Standards Council for updating its viewpoint on mobile payment applications and the payment card industry data security standard before the holiday. The major points of the updated PCI compliance process are listed below.

What was updated?

The PCI Security Standards Council came to a consensus that the device itself and the software that runs on the device present a large amount of risk. These two factors are referred to as the “environment”. There are three categories of risky devices that the council categorized and they are:

1. Approved PIN Transaction Security (PTS) devices.
2. Mobile devices built for payment acceptance - This includes the hardware, software and payment application that are solely used for accepting payments and can meet PCI DSS compliance requirements.
3. Consumer devices like smart phones and tablets that are not solely used for accepting payments.

What specific devices are in each category?

The council made the description of each category very technical, but here are some examples of how they play into payment card industry data security standards.

Category one includes wireless credit card terminals, such as the VeriFone Vx670, Nurit 8020 and Hypercom M4230.

Category two includes devices that are fairly rare, such as the mobile checkout devices used by clerks in Apple stores. These devices all meet the standards outlined in the PCI compliance program.

The third category is simple and includes iPads, iPhones, Android phones and Blackberry phones, as well as tablets.

How does the PCI compliance process differ between categories?

Any mobile payment applications that fall into category one or two will be expected to follow current PA-DSS validated payment applications. This means that vendors with apps that fall into these two categories need to follow PCI DSS compliance standards.

The PCI Security Standards Council does not yet require category three products to be compliant with PCI data security standards, However, they are expected to provide more instructions for this category by the end of the year.

What is the current PCI process for Category 3?

Category three does not have to be officially compliant with the principles of PCI DSS, but they should be used as a guide. This will hold true until the Council provides more instructions.

Procrastinate No More: Make Decisions Today – NOT Tomorrow

The easiest way to eliminate today’s “to do list” is to put off items for another time. Be it a simple task like mailing some thank you cards or a life changing decision like planning your retirement options, it is much more simple to push it back rather than sitting down and working on it. Procrastination often occurs when a task is either too menial to matter, or is so daunting you don’t know where to start.

It is the latter that hurts people more in the long run. A common complaint among today’s banking industry involves providing merchant services for small businesses. Although many bankers report being unsatisfied with their current merchant services provider, there is little turnover. Starting the process of finding another provider or fearing the result from confronting them prevents many from finding a provider they like. Similar scenarios are found in all professions, and all have negative results, the most common being merchant attrition and reduced income. So how can procrastination be overcome? 

When dealing with this problem it is important to examine the products and services offered to your clients. Are these products innovative? Does each member of your company have a thorough understanding of these products? Is your provider staying on top of the industry? These are all questions that should be addressed on a regular basis. 

Reviewing your portfolio is your next step. Knowing the state of your portfolio at all times is key. Is it growing or shrinking in terms of total revenue and your total number of merchants? One simple way to find out where your portfolio stands is to conduct a portfolio check up. This will help you keep your finger on the pulse of your business.  

Aggregation of information is the next huge hurdle. With so many sources to choose from, most wonder why they should even start. However, quality information can often come from individuals you already know. In the case of our banker friends who can’t find the right provider, starting information would actually come from the provider they’re currently using. Your merchant services provider should have all of your pricing information at their finger tips, including your Schedule A. They should also be able to provide you with a current profitability report.

Your own team members are a good source to determine exactly how well you’re doing in your own market. Are you adding merchants at a rapid pace? Are your products competitively priced? Answering these simple questions takes little effort, and will jump-start your work on what has previously been an undesirable task.

How Your Bank Can Benefit from Using Twitter

While Jack Dorsey and the whole Twitter team continue to celebrate their successful 5th anniversary, I would like to take a minute or two to contribute a few ways that Twitter will help you stay in touch with your customers and current financial services industry and payments industry news.

Before you dismiss Twitter and cross it off as just another social media fad, you’ll agree with me that the following statistics are impressive:

• 3 years, 2 months and 1 day: This is the time it took from the first Tweet to the billionth Tweet.
• 1 week: This is the current amount of time it takes users to add another billion Tweets.
• 460,000: The average number of new accounts opened per day in February 2011.

I’ll admit I was once a person who thought of Twitter as primarily a way to share thoughts on a new restaurant, interesting articles you came across, or to comment on your favorite sports team’s game. However, now Twitter is about more than just entertainment. When properly leveraged, it can be a very useful business tool for quickly sharing information, gathering information about your competitors and building relationships with current customers, as well as potential new ones.

If you are a new Twitter user, you may not be sure where or how to get started. One way to get started with Twitter is to use it as a tool to stay current on payments industry news. Below I have listed a handful of informative publications and organizations I follow that use Twitter to assist in promoting their latest news and analysis:

• Clearent - @GoClearent
• American Banker – @AmerBanker
• Bank Technology News – @BankTechNews
• Independent Community Bankers Association – @icbanews
• ABA Banking Journal – @ABABankingJourn
• Electronic Transactions Association (ETA) – @ElecTranAssoc
• NetBanker – @netbanker
• BAI – @BAI_Info

You should also follow your payment processing company and other service providers (if they are on Twitter). Login to Twitter and start a search for them by name or by their official Twitter handle (starts with @) then click the “Follow” button. Next, visit your Twitter home page where you’ll see the most recent stream of tweets from the companies and people you follow. Then when you come across an interesting headline, simply click on the link to read the full article.

Twitter also easily provides access to the latest payments industry news when you’re on the move with their mobile apps for iPhone, Android, BlackBerry and Windows 7 phones. That way you can quickly check Tweets when you have a few seconds and keep up with the latest news and more.

Are you still skeptical about Twitter? I suggest taking 15-30 minutes to give it a try. I’m sure you’ll be surprised at what you find.

Target Success with Your Merchant Account Service Provider

As you approach the end of each quarter, you are always looking a little closer into the profitability of your financial institutions merchant services program. What is the conclusion you are coming to? Are your program objectives being met? Have you met your expectations?

As you look over your results, it might be helpful to evaluate your current merchant account service provider and the value they provide in helping you meet these goals. Consider whether or not the services, products and support they deliver are helping you keep up with this rapidly changing industry.

If you find profitability is not where you want or expect it to be, it’s good time to ask the following questions that play a key role in your profitability:

1. Are your new merchant accounts growing as planned?

This question really asks if you are targeting your commercial account base effectively. To do so it’s crucial to have the correct mix of products and services for your merchants. How do your ancillary products and services match up to those of your competitors? Finally, do you have pricing that is competitive enough to attract larger merchants as well as the typical “mom and pop” establishments?

2. How much time is being spent on acquiring new customers compared to supporting your existing customers?

Today’s employees are given a diverse set of responsibilities and are expected to wear many hats. That’s why it’s important that your team is able to spend time on revenue-generating activities. We all know service is important, but the growth of your institution is extremely important as well. Does your payment processor offer “self service” tools for merchants to help deal with the easy questions? A few examples of this are online access to statements, data, etc. Another area to look at is the usability of your systems and the training time required for new team members.

3. How much money does your program make?

It’s essential to be able to evaluate your program’s profitability and truly understand your success. Is your payment processing company providing you with reports that are easy to understand and help you dig into the bottom line numbers? You should be able to quickly tell which of your merchants are most profitable and least profitable. Also, the fees are a key element of profit. Are you able to tell how much your provider is really charging you?

4. Are you getting the service you need?

Your financial institution is highly focused on providing top-notch customer service. Your payment processing company should be able to deliver the same. Are they working with you on ways to grow your portfolio and increase your fee income? Do they address service issues expediently, as well as those of your customers? And when it comes to your main point of contact, do you still have a primary relationship manager?

While evaluating your financial institution’s merchant services program, answer these questions truthfully. Also keep in mind what the definition of a partnership is, “a cooperative relationship between people or groups who agree to share responsibility for achieving some specific goal.”

After all, it’s those shared goals and a strong commitment from each party that will put you on your way to increased profitability and retention. Does your current merchant account service provider share your goals?

For more payment processing updates subscribe to our payment processing blog for financial institutions.

Find a niche as a merchant services provider

If your approach is still broad when it comes to finding new merchants, you may find that you are losing business to competitors who have tactically focused on a particular niche in the industry. It’s my recommendation that you reevaluate your strategy and brainstorm ways to differentiate your service from your competitors.

I spoke to many ISOs in early March 2011 at the Southeast Acquirers' Association (SEAA) 2011 Annual Conference in Weston, FL. I was enamored by the fact that a large percentage of the ISOs in attendance no longer thought of themselves as a general merchant services provider. They have moved their focus to a niche segment of the market and offer a unique and more tailored solution to successfully target specific merchants.

So what is a niche exactly? Well, Merriam-Webster defines a niche as “a place, employment, status, or activity for which a person or thing is best fitted” as well as “a specialized market.” I like to consider it as focusing on something you do very well – better than your competition – instead of trying to provide everything for everyone.

If you are wondering what some example niches for an ISO might be, let me start with a few examples that were brought to my attention at the SEAA 2011 Annual Conference. One gentleman is in the process of starting a new ISO focused on point-of-sale solutions. He is planning to help merchants find the right software/hardware to meet their needs, and the merchant account is what comes along with it. Another ISO had the idea to create a loyalty program to use as a lead for new merchant acquisition and to help with customer retention. A third ISO focuses on businesses that create POS and other related software used by merchants to help integrate his merchant services into their software.

While each approach is different, they all have something in common: they make sure to focus on a niche rather than a shotgun approach in addressing the merchant services market. Given the highly competitive nature of our business, their approach makes sense.

• How will you find your own niche as a merchant services provider? Here are additional examples to consider:
• Specific merchants (e.g., medical offices, contractors, auto dealers, e-commerce)
• Products (e.g., gift cards, mobile payment devices, plug-in for QuickBooks)
• Geographic (e.g., new communities, small towns with less competition)
• Cultural (e.g., Spanish-speaking merchants, your local ethnic hotspots like a “China town”)

To help identify your niche try asking yourself the following questions:

• Which merchants are providing the most referrals?
• What am I receiving the most compliments on?
• What do I feel is my strength?
• Which merchants and products excite me the most?

Really take some time to think of potential niches that fit you well. Chances are you will find it will make you more efficient in finding leads, closing them, and retaining your merchants. If you like the content of this post, please be sure to visit and subscribe to our payment processing blog for ISOs.

Merchant Awareness of PCI: Success or Failure?

It's been nearly a decade now, so are small merchants aware of PCI? Yes, it's already been 10 years. Visa brought the Cardholder Information Security Program (CISP) to fruition in 2001, and in 2004 it evolved into the Payment Card Industry (PCI) Data Security Standard (DSS).

After several years of comprehensive efforts in the payment processing industry to inform and educate merchants, and the fact that payment card industry compliance is required, results and opinions are mixed. A recent study by the National Retail Federation provides information to make a case for both success and failure of the program and here they are:

Success

• 66% of small merchants are aware of the PCI DSS.

• The majority of merchants who are aware of PCI take it seriously. 74% of them have had a PCI compliance assessment.

• 94% of merchants care about keeping card information secure.

• 50% of merchants are aware of some consequences of a breach, such as getting sued by cardholders and losing the ability to accept Visa and MasterCard

Failure

• 34% still have a lack of awareness of PCI despite the immense industry efforts.

• 51% of all merchants still have not had a PCI compliance assessment.

• 64% are unaware of the dangers and don't believe their business is vulnerable to card data theft.

• 60% of merchants don't have a strong understanding of the costs, including fines by Visa/MasterCard, liability for use of stolen cards, and per-card fees for every canceled card.

So, has this all been a success or a failure? While my answer might be an open invitation to accusations of being a politician or fence-sitter, my answer is "Yes." As an industry, we've made great progress, and had a significant impact on the industry in a positive way, but we have a long way to go to get payment card industry compliance where it needs to be.

Let's not stop at that, let's offer a few explanations for why awareness and compliance are potentially lower than one might expect.

1. Quantities of new businesses

Many small business owners have a lengthy list of responsibilities and to-dos; it's not a huge surprise that these businesses are not familiar with PCI out of the gates. Exaggerating this impact is the fact that many new businesses open every year. According to Census data, 700,000 new businesses are "born" each year. This is reflected in the NRF study where 27% of merchants were less than three years old.

2. "Bad things only happen to other people" mentality

It can be human nature to assume the best and that "it won't happen to me." When dealing with the risk of a security breach involving cardholder data, many merchants appear to take that approach, rather than planning with Murphy's Law in mind.

3. Focus on fees rather than compliance

There is no reason to hide the fact that most processors and acquirers have fees for PCI programs. The fees have created controversy because they can seem high and are often not tied to compliance. As a result, perhaps PCI fees have become the main focus for many ISOs and merchants instead of PCI compliance itself.

ISOs are you fed up with high fees associated with your current payment partner's Payment Card Industry (PCI) compliance assessment program? Are they causing attrition in your portfolio? Do their fees make it difficult for you to sign new merchants? Clearent has a unique approach to PCI compliance:

No PCI Fees - That's right, there are no PCI fees for merchants who complete our questionnaire
Keep it Simple - Merchants save time thanks to our simplified PCI questionnaires
Know Your Status - Monitor your portfolio's status at-a-glance with our online reports

Contact Clearent for more information on payment processing solutions for ISOs and FIs.

PCI DSS Compliance and Adressing the Blame Game

We all know the "Blame Game." We were introduced to it as a child. It typically involves breaking, spilling, or loosing something that your mother didn't want you tinkering with in the first place. The game changes as we get older - our arguments get stronger but we still pass the blame.

Here are some classic responses we've either said - or heard - at one time or another:
• "(Name) did it."
• "It wouldn't have happened if (Name) did (Desired Action)."
• "It's not my fault."

As a result, today our society could be defined as a litigious one. People are quick to sue and claim that they shouldn't be held accountable and that it's someone else's fault that something bad happened.

Merchants are no different because of the pressures they face, especially with the varying changes in regulation and the economy over the past few years. There are all sorts of opportunities for errors and finger pointing.

One area that is very important is maintaining data security, PCI DSS compliance. Vulnerabilities can be created from careless actions, and vulnerabilities can result in a breach, as well as hefty fines, penalties and more.

When this happens, it's likely that the merchant is going to look outside of his business for someone to blame. And when he thinks he's found that someone, a lawsuit could be the next thing to follow.

To protect themselves and their merchant customers, most payment processors will insist on the completion of a PCI compliance assessment. The processor then reviews the assessment to identify merchants whose actions may put them at risk for a compromise. This helps keep the blame at bay but its not the best.

It's common for ISOs to want to provide the best possible service to their merchants and they may want to complete the self-assessment questionnaires (SAQs) on behalf of their merchant.

What happens if, for some reason, a merchant is then breached? If it is determined that the merchant was not PCI compliant and the questionnaire was not completed accurately, who will the merchant blame? It was the ISO who helped them complete their PCI compliance assessment, of course.

PCI DSS compliance and data security are very important, but processors shouldn't put ISOs in the middle of their approach. That isn't their job, and frankly, they shouldn't be expected to be a PCI compliance expert. Also, remember that why one of the best way to avoid this Blame Game is a self-assessment questionnaire, designed to be taken by merchants because they know the details of their operation best.

So what's the solution?

At Clearent, we use an online questionnaire, designed to be completed by the merchant to assist with PCI DSS compliance. We believe it shouldn't be part of the application process, but rather part of the support your payment processor provides to your merchants. And it shouldn't come with a cost to complete.

It's a simple approach, but one that any ISO today with the desire to grow should appreciate. That way if a breach should ever happen, you can easily say, "It wasn't me. I wasn't even involved." - and truly mean it. Otherwise, it may be prudent to have an attorney on retainer.