Financial Institution (FI) Relationships - United Bank Card

HARBORTOUCH
FINANCIAL INSTITUTIONS DIVISION
How to Obtain
Financial Institution (FI)
Relationships
(An Overview)
HT1131_02032012
H A R B O R T O U C H

HOW TO OBTAIN FINANCIAL INSTITUTION (FI) RELATIONSHIPS
Table of Contents
Introduction page 1
The Benefits of Financial Institution Relationships page 1
Benefits for the Financial Institution page 1
Benefits to Our Sales Partners page 2
Approaching FIs page 2
We're Here to Help page 3
Get the Most Out of Your FI Partners page 3
Procedures for Boarding a Financial Institution page 4

HOW TO OBTAIN FINANCIAL INSTITUTION (FI) RELATIONSHIPS
Introduction
A strong relationship with a financial institution (FI) is a priceless resource for an independent sales agent. A
properly nurtured FI relationship can provide a constant source of new business and an effective way to quickly
build a lucrative merchant portfolio. In a successful partnership with a financial institution, you should be given
a consistent supply of leads from your bank partner. When you first meet with a merchant that has been referred
by a financial institution, you already have two feet in the door, making the sales process much easier. Not only is
the sales process easier, but merchants signed through a financial institution tend to provide higher margins and
significantly lower attrition. There are countless benefits of an FI relationship for both yourself and for the
financial institution. However, financial institutions also require special treatment in order to maintain a
successful partnership. This document will outline everything involved with an FI relationship from how to
approach the bank, how to close the sale and how to nurture the relationship to make it successful.
The Benefits of Financial Institution Relationships
Lower Attrition
Merchants tend to have a strong allegiance to the financial institution with which they conduct their business
banking. This loyalty translates to all products and services that their financial institution recommends or
provides. As a financial institution processing partner, you can benefit from this customer loyalty.
Higher Margins
As a result of this strong customer loyalty, better margins can generally be attained. You are not selling on
rate; you are providing a service that their trusted financial institution has recommended. Therefore, under
almost all circumstances you will be able to charge higher rates, higher transaction fees, a minimum of
$10.00 monthly service fee and a batch fee of up to $0.35.
Two Feet in the Door
Although all deals take some effort, the referrals you receive from your financial institution partner will be
warmer leads than those you receive from any other source. This is another result of the merchant's strong
loyalty to their financial institution; you already have two feet in the door before you even meet with the
merchant. An increase in referrals translates to less time cold calling and pitching merchants and more time
signing deals.
Benefits for the Financial Institution
Financial institutions are always striving to better serve their customers. Harbortouch offers many value-added
services to the FI's customers that other processors may not.
Local Service — Most merchant service providers do not have local representatives. The fact that you are in
the FI's geographic territory and are available for face-to-face meetings and appointments is a strong selling
point.
Reciprocal Relationships — As the FI gives you credit card processing leads, you will reciprocate by
recommending the FI's services to all your local customers.
Value-added Products and Services — Harbortouch offers a wide range of value added services including:
Check guarantee/conversion product with a free check reader or imager if necessary
Free payments integrated electronic cash register
Free state-of-the-art credit card terminals
Free high-end POS systems
50 free gift/loyalty cards
Prepaid POS products
PAGE 1

HOW TO OBTAIN FINANCIAL INSTITUTION (FI) RELATIONSHIPS
Additional FI Revenue — Harbortouch recommends that you share 10% to 20% of the gross revenue with the FI
from any accounts you sign in addition to as much as $50 per deal one-time payment.
Direct Contract — The financial institutions can rest assured with the security of a direct agreement with
Harbortouch, one of the largest and most reputable processors in the nation, currently handling the
merchant accounts for over 110,000 business locations and processing in excess of 9 billion dollars annually.
Consistently recognized as a leader in innovation, Harbortouch is a five-time consecutive Inc. 500/5000
honoree and was ranked on Deloitte's 2008 "Fast 50" list of fastest growing technology companies. With 10
years in the business and an "A" rating from the Better Business Bureau, Harbortouch has also garnered awards
for our exceptional customer service and technical support.
Online Reporting — Financial institutions will be able to take advantage of detailed online reporting via the
Interactive Banking System (IBS). Through the IBS, they can view the status of their pending merchant
applications. They can also view detailed residual reports as well as other information providing an overview
of the account. Additionally, the FI can access branded marketing materials to help promote our services.
Branding — This is a unique service offered by Harbortouch that none of our competitors offer to FI's. With
proper registration, we can brand the merchant application, merchant statement, brochures, and all
related materials using the FI's logo and your contact information.
Benefits to Our Sales Partners
Higher Margins
Sell More Third Party Products — Check services, gift/loyalty, etc.(you do not pay these out to the FI).
Lead Based Sale — Less time spent traveling and more time spent writing deals.
Lower Attrition — Merchants have strong loyalties to their financial institution.
Approaching FIs
Your target market for FI relationships are small to mid-sized community and regional FIs. This is an underserved
market with tremendous potential. As we are sure you already know the largest financial institutions typically
work directly with processors, so FIs with 30-40 branches will most likely be the absolute largest that will be
willing to discuss a processing relationship with you. However, you will have the most luck with FIs in the 5-25
branch range.
When you select a FI to approach, work your way up the ladder to get to the appropriate decision maker. Start
forming a relationship with the branch manager and then inquire who you should talk to about handling the
credit card processing accounts/merchant services for the FI.
Once you get an appointment, presentation is key. Your National Sales Manager will handle all the paperwork
with your contact directly including any registrations paperwork that is necessary and the Financial Institutions
Agreement.
Be prepared, FIs move very slowly. Generally all decisions concerning who will represent the FI on the merchant
processing side of the business will be something that is decided by the Board of Directors. It may very well take
4-12 months to sign a FI relationship, but the time and effort will pay off strongly so be persistent. A strong FI
relationship is an unparalleled asset. A total of 25 FI locations should produce a minimum of 17.5 deals per month
and can be much higher than that if worked properly.
PAGE 2

HOW TO OBTAIN FINANCIAL INSTITUTION (FI) RELATIONSHIPS
Harbortouch is Here to Help
Although it is your responsibility to make the initial contacts at the FI and get your foot in the door, Harbortouch
is here to assist you along the way. Harbortouch offers an assortment of marketing materials geared towards FIs.
These materials are available on the IIS. Additionally, your National Sales Manager may be able to provide
assistance during the closing process and signing of the FI. Depending on the size of the financial institution and
the potential opportunity, other senior manager's from Harbortouch may be available to assist in the process.
Get the Most Out of Your FI Partners
The biggest mistake that most ISOs make is that once the financial institution has been signed as a partner of
Harbortouch, they neglect the relationship. In many cases, time, money and resources are spent to sign a FI only
for the relationship to yield negligible results. An FI relationship is an ongoing process. For maximum results, an
agent bank must be worked every single day. It is important to build strong relationships with as many of the FI
employees as possible and follow up on all leads within 24 hours.
The specific procedure for obtaining referrals is typically established between the ISO and the financial
institution. The FI will often carry branded brochures that will include your contact information. Harbortouch
has also designed a referral form to be used by the branch employees or you can simply leave business cards with
the branch managers. Stop in to each branch at least once every month or so with bagels or donuts for the staff.
Relationship building is the key to success with a financial institution. We recommend all of the above.
Set goals and expectations. Try to get a quota from senior management, such as 1-2 merchant accounts referred
per month per branch. This will require upper management to send this message to the branches and mandating
this to the employees. Instruct the FI managers on how they can actively sign more accounts. Business owners
come into the branch each day to open new business checking accounts, to apply for SBA loans, or simply to make
a deposit. The branch managers should identify these business customers and refer them to you. Getting the FI
managers and employees to do this for you takes considerable work and relationship building. Create contests
and promotions to keep them motivated. Other ways to leverage the relationship is by requesting the FI to
provide a mailing list of all of their business checking account customers or even by asking a manager if you can
accompany them on visits to their business accounts. The more you nurture your relationship, the more you will
get out of it. Ultimately, having 15 to 25 branches can end your days of cold calling and should produce a
minimum of 11 to as many as 30 accounts or more per month.
PAGE 3

HOW TO OBTAIN FINANCIAL INSTITUTION (FI) RELATIONSHIPS
Procedures for Boarding a Financial Instituton
EVP of Operations Mike Ward reviews and executes all agreements
STEP ONE - PAPERWORK
Once the financial institution has agreed to a partnership with Harbortouch and your sales office, your National Sales
Manager will handle all paperwork requirements of behalf of Harbortouch. Your NSM will contact the FI client to obtain
the following:
FI Referral Agreement
Registration form or change of registration form (if already registered with the card associations)
Cash advance paperwork
A high resolution logo (if the FI is requesting branded marketing materials)
Bank boarding form
Approval of this paperwork by FNBO and Harbortouch takes approximately 5-10 business days. Full registration may
take a bit longer.
STEP TWO
Upon approval, an office code is built for the FI for proper tracking of applications and access to residual reporting.
This internal setup process takes about 3-5 business days to complete.
FI client will be able to begin signing merchants through their respective program once the office code is built and
provided.
ISO/NSM will contact FI client to provide an overview of the features and functionalities of the Interactive Bank
System (IBS).
Cash advance terminals are then sent to the ISO for installation.
STEP THREE
At this time, you should contact your FI client regarding the conversion of their existing business accounts to the
Harbortouch processing platform. Harbortouch will provide a letter to be sent to all existing merchants with the FI
for conversion purposes.
ISO should begin discussions at the appropriate time regarding the solicitation of current business accounts for
cross-sell opportunities of Harbortouch merchant services. Typically this is done within 30 days of boarding new or
existing conversion merchants.
Financial institution relationships can provide a valuable resource for your sales office and can dramatically boost
your bottom line. Whether you're trying to obtain your first FI relationship or your tenth, we hope that this
introductory package helps you succeed. If after reading this document you still have questions, remember that we
are always here to help you along the way. Contact your National Sales Manager for more information about FI
relationships.
PAGE 4