Today, selling merchant services without any sort of value-add is a recipe for disaster. Those in this business suffer from shrinking margins and high attrition rates when competing on price alone. Some ISOs and agents, however, have adjusted their business model to address these trends. They’ve begun selling POS (point of sale) technology and other related services to create higher margin offerings, new revenue streams, and stickier relationships with customers. One great example of such a conversion happened with Alaska Financial, LLC, a merchant services provider turned POS solution provider, out of Anchorage, AK.
Due to the price war in the industry, Jim Lange, owner of Alaska Financial, decided to partner with Harbortouch, a provider of merchant services as well as POS hardware and software sold as a service, or a monthly fee, to customers. Customers of these solutions sign a three-year contract and receive free equipment with a low monthly fee for the software updates, customer service, technical support and a lifetime warranty on the equipment. The merchant services portion of the business goes through Harbortouch as well.
Lange says the Harbortouch product is loaded with features appealing to merchants new to a modern POS system as well as those with more extensive needs. Additionally, he says the company’s leadership continues to innovate and bring new products and capabilities to market.