Should You Outsource Merchant Services?
Here's a Questionnaire to Help You Decide

• The merchant services department is totally focused on its core business.
  YES / NO / ??

• We have complete knowledge of all our merchant services costs,
  and we control them.
  YES / NO / ??

• The inventory levels are accurately maintained and on budget.
  YES / NO / ??

• The merchant services department is neither over staffed nor under staffed.
  YES / NO / ??

• We take full advantage of the economies of scale in the merchant services area.
  YES / NO / ??

• The department has adequate staff and time to control
  and manage merchant risk.
  YES / NO / ??

• The merchant services area has all the necessary resources to accomplish
  what is expected.
  YES / NO / ??

• Our merchant distribution system was updated within the past 5 years.
  YES / NO / ??

• Merchant services personnel are staying abreast of changing technology.
  YES / NO / ??

• Our merchant services group meet the expectations of our customers.
  YES / NO / ??

• Eliminating equipment and supply inventory would be no
  benefit to the company.
  YES / NO / ??

• The time between merchant signing and installation is quick.
  YES / NO / ??

• I have complete knowledge of each merchant’s cost for supply and support.
  YES / NO / ??

• The merchant business is growing faster than its personnel budget.
  YES / NO / ??

• The merchant services department would pass an internal equipment audit
  YES / NO / ??

• Bonus Question (double the points): I personally have enough time
  YES / NO / ??

Total your score: 2 points for YES, 1 point for NO and –2 for ??.
If your score is . . .

25-32 points:

Congratulations!  A very well-run shop – (you should advise card associations!)

17-24 points:

A good shop; improvements in merchants services management would fall
directly to your bottom line.

8-16 points:

Several specific opportunities exist to improve efficiency. 

0-7 points:

You would see substantial and immediate benefits in cost and efficiency
from a decision to outsource merchant services.  

Negative points:

Your cost structure is high, and there are both technical and “people” challenges
that can make things worse going forward.  There are many steps you could take,
but one of the easiest, and most immediately beneficial will be to outsource
merchant services with a company that operates lean, is highly accountable,
and has a solid track record with references to prove it.