Reforming Retail

Another Day, Another Ridiculous POS Dealer Fee

Every week we see all sorts of crazy merchant proposals for POS and payments. Some are simply too good to pass up, particularly when they confirm our market perspectives. The below is one such example on the downfall of the dealer… or more specifically, the 95% of the POS dealer channel we find produces no value.

See if you can figure out what’s wrong in the below image…

Still missing it?

This Digital Dining dealer is charging a $795 fee just to move processors. The time it takes to switch processors is no more than a few minutes, even for a newbie. Global Payments, who owns Digital Dining under their POS (Xenial) umbrella, does not charge any fees for moving processors. In other words, the dealer made up this fee.

Why does a dealer do this?

Because they’re uninterested in learning how to provide value. So they simply charge higher and higher rates for their old tricks in hopes the customer doesn’t notice. And as they cede market share to POS companies selling directly they legitimately wonder why they’re losing deals.

Shocker.

Now think about this from the merchant’s perspective. Would they rather spend $800 to move processing, a service which offers zero value and can be successfully performed by your dog, or find someone who moves processing for free and for the same $800 provides $3,000 in quantifiable ROI via marketing, operations, or other business value? We wrote the playbook for how dealers could accomplish this but alas, few even bother.

While other groups out there suffer under the delusion that dealers are going to change, we say good riddance to the 95% that clearly don’t want to. There’s no excuse for these tactics except sloth and ignorance.

Bye bye.


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