Catering to all areas of commerce – from retail to restaurants, from
MOTO to Internet-based, from hospitality to home-based, from grocery
stores to gas stations – United Bank Card, Inc. (UBC) has made its mark
in the bankcard business in a big way. Currently servicing over 30,000
merchants and processing in excess of $2 billion annually, UBC provides
payment processing services for Visa, MasterCard, Discover, American
Express, Diners Club, JCB, ATM, debit cards, EBT state and government
cards, gift/loyalty cards as well as a variety of private label and
smart card technologies. Here is a story of how progressive growth can
evolve into profitability.
Ranked as one of the industry’s top 40 acquirers, UBC can trace its
humble beginnings to a basement in New Jersey, literally. Back in
1998, Jared Isaacman, founder and CEO of UBC, opened the door to UBC
with one phone, one computer and lots of ambition. He pulled a lot of
all-nighters, pushing 100-hour workweeks those first few years.
“I realized that many things were being done inefficiently and saw room
for improvement,” says Isaacman. “For instance, it took 10 documents
to get a merchant approved; why couldn’t we put it all in one app? Why
couldn’t we work together internally? From day one, ours was an
in-house model.”
That model has grown into an extraordinary organization that boasts
over 120 employees. That model is also based on education—the
education of sales agents who want to close deals but don’t have the
tools and training to do so. Not having a direct sales force, UBC
relies completely on its independent agents, not only making things
more efficient for them to close those deals but more educated on how
to do so.
“Our main differentiator is innovation,” says Isaacman. “We were the
first company to offer our ISO/MLS partners an online account
management tool: The Interactive ISO System, which greatly simplifies
the job of our agents. We have pushed revenue share programs and
backed them up with bonuses. We were also the first company to offer a
free equipment program. There weren’t any companies with programs we
wished to emulate so we brainstormed and came up with the unprecedented
products and services we offer today.”
One of United Bank Card’s latest innovative programs is the weekly
bonus program. Rather than paying standard monthly bonuses, UBC will
now offer weekly bonus payments to its qualifying agents. A new
standard is being set yet again.
Another benefit that the MLS enjoy from their association with UBC is a
dedicated relationship management department that works exclusively to
meet their needs. Starting with a three-hour welcome conference call
when they come aboard, agents find an open-communication policy at UBC.
“We are an entirely in-house operation and we never farm anything out,”
says Isaacman. “We are proud to offer a very capable support group
exclusively for our agents. We have a bi-monthly group conference call
that focuses on the state of the union at UBC. We discuss new
products, offerings, programs, current issues and always dedicate a
significant amount of time at the end of the call for a question and
answer period. The feedback shows us that it has been invaluable to
all who participate.”
In addition to a dedicated sales support staff, UBC provides a 365-24/7
merchant customer service center. The UBC headquarters in New Jersey
is complimented by a major operational and in-house support facility in
Arizona. With over 2,000 new merchant accounts being added each month,
providing quality service can be a challenge. For UBC, it is more
opportunity than obstacle.
“We welcome the challenge of keeping up with our explosive growth,”
says Isaacman. “With so many new accounts boarding each month, it is
imperative to add adequate personnel to support them. We are hiring
and expanding rapidly but maintaining internal control is vital.
Perhaps it is unorthodox, but we hold our own risk. In order to
successfully accommodate our growth, we knew we had to have all control
at our fingertips.”
One area of UBC that will surely contribute to its amazing growth is
the evolution of its free equipment program that went from concept to
reality in 2004. Another factor in the continued growth of UBC will be
its phenomenal support infrastructure. UBC won a “Best of the Best”
award for its customer service in 2004 and plans on maintaining that
level of service through substantial dedicated resources that will
focus on control, support and attrition.
“We have set new standards for attrition control,” says Isaacman. “We
have a very proactive customer service department and have brought in
industry consultants to train our staff. We also added a merchant
retention department that utilizes the same screens as our risk
department but only in reverse. If we see declining transaction
levels, we can contact the merchant, solve the problem and continue to
keep our attrition at industry record lows. We also utilize a
proactive approach to quality control and initiate early contact with
our new merchants to address any issues they may have and to solve any
problems before they even start processing”.
In addition to its commitment to attrition control, superior customer
service and progressive growth, UBC plans on staying on the cutting
edge of technology with innovative products and programs. It also
plans on expanding its growing umbrella of subsidiaries, like United
Cash Solutions – an ATM arm it acquired this past year.
“I don’t know what the next big thing will be but I am confident it
will be UBC that leads with it” says Isaacman. “We also intend to
continue acquisitions and develop our offerings through an emphasis on
technological build-out. The industry as a whole is consolidating. A
lot of processors are going public and more will follow; it is the
nature of the beast. I believe only the strong will survive through
acquisitions and because of that, sales agents will be getting the best
deals they have ever had. Sales Agents are in demand now and at UBC,
we are not going to give up our lead in this business, we are going to
improve with the aid of our agents and they will reap the benefits.”
Isaacman can easily put his money where his mouth is when it comes to
acquisitions. UBC is quite liquid, financially speaking. It has zero
debt due to the fact that it sold part of its internal portfolio for a
cool $44 million this past year. That kind of capital gives UBC a lot
of options. What also gives UBC a solid position is its impeccable
reputation in the industry as a “stand up” company.
“Our evolution has mirrored others in this industry” says Isaacman.
“We began by writing deals on the street but decided early on that we
would pay close attention to what others were doing and learn from
their mistakes. There will never be a horror story about United Bank
Card cutting off agent partners’ residuals or breaking contracts
because we always keep our ISO/MLS partners’ best interests in mind. I
attend every regional acquirer association event in this business and
try to make myself as accessible as possible. If anyone has an issue
with me personally or United Bank Card, I will hear about it. So far, I
have heard nothing. I sleep well knowing that there are no negative
associations with UBC and that we have consistently done the right
thing for our partners.”
What advice does Isaacman have for other acquirers who want to achieve
the success of UBC?
“Be afraid” laughs Isaacman. “Seriously, if you want to be successful,
dedicate yourself 100% and stay on your toes. Read as much as you can.
Knowing more than your competitor is a huge edge. We are in a
recurring revenue business so consistently servicing your accounts is
critical. Lastly, have a clear idea on where you want to go. I realize
that the path I took 6 years ago is no longer the best route. Today,
there is more competition and less opportunity. Pick the model you
want to go after and hit it hard and know what risks to take. Watch
your income, watch your expenses and take your time. Make sound
financial decisions and you will be able to achieve your goals.”
As for the feet on the street, Isaacman’s recommendations are just as
perceptive.
“Obviously when you get in this business, selecting your ISO and
processing partner is critical” says Isaacman. “Make your partner
choices wisely. Contracts are key; have an industry attorney review
your contracts. You must do this to insure that the contract you are
signing is not so one-sided that you run the risk of losing a residual
stream that you worked your tail off to build. Basically, make sound
legal and financial choices to make sure you select the right ISO
partner.”
For those agents that have selected UBC as their ISO partner, it would
appear they have made a savvy choice. They enjoy the benefits of
education, training, innovative products, multiple revenue sharing
programs and unparalleled support. Why? Because UBC knows the
importance of its
sales partners.
“Over the years we made many great choices,” says Isaacman. “Lipman is
our terminal of choice. That was a decision our agents made and not
UBC. If our agents told us they wanted to sell another type of
terminal, then that is what we would be selling. The agents asked for
Lipman and we gave it to them. Listening to your sales team is a
critical key to success. They make the important decisions for you.
The successful evolution of our growth is because of them. Where we
were and where we are now, all the good things we have done along the
way—it is because of our independent sales agents. They are the
driving force in this business.”
Contact information:
United Bank Card
53 Frontage Road
Perryville Industrial Park - Building III
Hampton, NJ 08827
Tel: 800-201-0461
Fax: 908-730-7437
www.unitedbankcard.com
www.isoprogram.com
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