The value of social media for the merchant processing industry

For the past 6 months, I have been experimenting with social media for the merchant processor Swipe-Rite/SaveSome Solutions in Cedar Rapids, Iowa. I started this campaign because the sales staff was growing really tired of cold calling businesses, trying to peddle low-rate merchant credit card processing and customer loyalty programs, and having doors closed in their faces no matter how great the products and the sales pitches.

It quickly became obvious to me that there were two things happening. In some cases, the businesses that Swipe-Rite's sales staff was targeting were just not interested in saving money on merchant credit card processing. These businesses have just sort of accepted that paying a percentage of their sales revenue to a processor is a necessary evil. They don’t understand the statements they receive each month, they just deduct the fees from their profit margin, and move forward. I can understand this approach. As an eBay Power Seller in the early days, I used PayPal to process credit card payments without even considering the cut they were making from my sales. My sales increased if I accepted credit cards, as did the amount people were willing to spend on my items, and I went along with the fees because I saw the benefits as outweighing the cost. I also, frankly, didn’t know any better, and didn’t have the time to learn.

The second scenario, less frequent than the first, was that some businesses actually had a relationship with their merchant processor. These businesses used small processors (like Swipe- Rite), and relied on the fact that they could reach the person managing their credit card revenue without using a 1800 number and an extension. To these businesses, it doesn’t matter much if they pay a half percent more than they would with a larger company, they remain loyal because they trust the people managing their account.

I analyzed these two situations, and realized that to be competitive in this industry, a cost-effective solution must be found. It is necessary to offer great products at a low price, and it is more important to develop relationships with potential clients and effectively market the products we stand behind.

Here is where the real value of social media emerges. By using this blog to provide information (not sales pitches), and using Twitter to interact with social media experts, small business owners, small business owners, community organizers, comedians (and the list continues…), I have been able to introduce our business to an audience by giving them an inside look at who we are as individuals. This audience knows that I have children, that balancing work and home life is a daily part of my life, and that I really love to help small businesses save money. But they also know what I do: I Blog and Tweet about the Merchant Processing Industry and about Customer Loyalty Programs, and specifically about Swipe-Rite, the business I represent.

Maybe this doesn’t translate to instant sales increases, or more traffic on our eBay store…yet. But what I have accomplished, in a very short period of time, is to put a face on a business, and an industry, that really needed a boost of integrity during a period of time when the words “bank” and “credit cards” have become vulgar terms. And it hasn’t cost a dime, because the use of social media forums like Blogger, Twitter and Facebook is FREE.

So now I am challenging myself to go a step further. I have never believed that “competition” is synonymous with “enemy.” Therefore, I am making it my goal to reach out to other Merchant Processors to encourage them to put a face on their businesses, to make themselves accessible and transparent. It’s only scary for those companies who have something to hide. More trust = more business for your company and for mine. We will all benefit from a new image. What do you have to lose?

Ready to take the challenge? Tell me here @AmySwipeRite

I recently interacted with “The Brand Builder,“ Olivier Blanchard on his great slide show (clickable link) that really shows how to measure social media’s “ROI” (Return On Influence). Watch it, share it with the rest of your company, and let’s get started with our revolution.