Q+A: BankCard USA on Software Innovation and Exhibiting at TRANSACT for the First Time

In a few weeks time, thousands of payments technology professionals from across the ecosystem will come to TRANSACT, the biggest payments technology event in the world, April 30-May 2 in Las Vegas, to make connections and get business done.

For many, they’ll come particularly interested in the burgeoning marketplace for Independent Software Vendors (ISVs) and software solutions that provide value-adds for their merchants. One such company on the TRANSACT show floor is BankCard USA, a merchant services company that recently acquired an ISV called AgeChecker.net. BankCard USA is a first-time exhibitor at TRANSACT, and is a prime example of how merchant service companies and ISOs are embracing software players, and their presence at TRANSACT, to grow in the competitive payments industry.

Scott Hardy, BankCard USA Vice President, recently talked to Transaction Trends about the changing marketplace for merchant services, how their acquisition of AgeChecker.net helps them stay competitive, and how their status as an exhibitor at TRANSACT benefits their business. Read it below:

Transaction Trends (TT): BankCard USA has 25 years of experience processing payments for regulated industries and recently acquired AgeChecker.net, a service which allows merchants to instantly verify the identity and age of a customer online. What motivated BankCard USA to acquire this solution? What can partnerships and acquisitions with software providers provide ISOs?

Scott Hardy (SH): BankCard USA saw a gap between age-restricted markets and compliance products crucial to their viability and growth, most notably in the ecommerce space. We acquired AgeChecker.net to increase awareness of and accessibility to a technology that facilitates compliance for these under-served markets. ISOs can leverage SaaS solutions like AgeChecker.net to bundle identity verification software with payment processing, and support the advancement of regulated industries. Risk and underwriting teams are able to ensure client compliance with heightening FDA and state regulations for age-restricted sales, provide an extra layer of protection from chargebacks and fraud, and help merchants avoid the risks of non-compliance as they contribute to the greater good of preventing underage use of restricted products.

TT: The contemporary trend in the payments technology industry sales channel is toward providing products and services that extend beyond simple payments acceptance. What services have you found your merchants most interested in?

SH: Our merchants are most interested in services that create a smooth checkout experience for their customers. AgeChecker.net integrates with ecommerce platforms to help achieve that one-click checkout ideal. We have seen an increasing interest from retail merchants in do-it-all POS systems, such as the Clover Station. Merchants want simplicity and efficiency in a POS: one that can manage inventory and accounting, pinpoint best product sales, and retarget customers through insightful reporting and loyalty software, across multiple business locations as needed. Parallel to this growing interest in products and services that extend beyond simple payment acceptance, BankCard USA is committed to expanding our services to meet the demand for all-in-one business technologies.

TT: What have you learned from acquiring and deploying AgeChecker.net, and how has it played into the overall change in the industry described above? What do ISOs need to know about these types of software solutions, and why choose acquisition of an ISV over partnership?

SH: We chose acquisition over a partnership so that we could have a more direct hand in rolling out and expanding the service. Since we are already invested in clients who need a solution like AgeChecker.net, an acquisition allows us to strengthen our relationships with them. The acquisition also gave us the freedom to further develop and customize the software for different clientele based on their business model and regulating body. Instead of transferring a call to a partner software provider, our clients appreciate that they can call our office and speak to the same person about their merchant account or age verification. We’ve learned to take the term “merchant services” more literally; we are catering to a variety of merchant’s needs, beyond payment processing. Doing so is a distinguishing factor in the crowded payments industry. As online fraud grows more rampant, and regulations for online businesses intensify, ISOs need to take a more proactive role pushing out ISVs that help mitigate risk for their clients. It’s beneficial for all parties involved at the end of the day.

TT: AgeChecker.net is a first-time TRANSACT exhibitor in 2019. What drew your organization to the show floor?

SH: We saw an opportunity to highlight the intersection of payment processing and a compliance product that helps underwriting and risk teams keep age-restricted merchants in compliance with regulations and/or industry best practices. We think this previously untapped connection will benefit ISOs, payment gateway providers, merchants, consumers, and industry regulators. When you consider how commonplace software solutions designed help business owners manage employees, inventory, and rewards are, the availability of compliance solutions pales in comparison, and we hope to shed some light on, and improve, that dearth.

TT: What have been your biggest takeaways on what it takes to attract new merchant customers and keep them happy?

SH: Transparency is key. What we describe to prospective merchants—our rates, ease of use, proper training, and so on—is exactly what they receive, and continue to receive. We take the time to understand each new merchant’s needs, deliver as-described services, and adapt to meet their changing needs with the same high priority as the day we board them. Our ability to onboard new merchants without interruption or downtime and offer additional services that improve efficiency, reporting, and integration potential with other platforms fosters long-lasting partnerships.

TT: What can TRANSACT attendees look forward to seeing in the BankCard USA booth?

SH: Attendees can look forward to stopping by to meet our team, discussing points of interest, and trying a hands-on demo of AgeChecker.net.

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