In this episode, hosts Elaina and Kevin Smith tackle the sweeping changes coming to Visa’s Level 2 and Level 3 interchange programs. You’ll get an inside look at how these programs originally incentivized B2B transactions with lower rates—if merchants supplied enhanced transaction data—and how, over time, shortcuts and “junk data” have led Visa to rethink the system completely.

Elaina and Kevin break down what Level 2 and Level 3 interchange really mean, the evolution and unintended consequences of these programs, and what the upcoming changes in Visa’s Commercial Enhanced Data Program (CEDP) will mean for ISOs, processors, and merchants. From a new assessment to the complete sunset of Level 2 for most merchants, discover why it’s crucial to adapt quickly and how these changes could impact revenue, reconciliation, and business strategies across the payments landscape.

If you’re involved in B2B payments—whether as a merchant, sales office, processor, or gateway—this is an episode you can’t afford to miss. Tune in for insights, practical advice, and the critical steps you need to take now to stay ahead of Visa’s evolving rules.

On this episode of Payments Ground Game, hosts Elaina and Kevin Smith pull back the curtain on the process of monetizing payments for ISVs entering the space. Inspired by a recent conversation with an ISV looking to transition from Stripe to a more lucrative payments partnership, Elaina and Kevin walk listeners through the critical questions and considerations every software vendor should explore before signing on the dotted line.

From understanding your business model and mapping out the payments process, to divvying up responsibilities like underwriting, risk, and customer service, this candid, "off-the-cuff" discussion covers the nuts and bolts ISVs need to navigate. The duo dives into the importance of knowing your card mix, choosing between cookie-cutter or custom pricing, and the often overlooked complexities of hardware certification and billing.

Along the way, they stress the value of slowing down negotiations, investing in expert consultants and attorneys, and having thoughtful discussions about risk and revenue shares—rather than jumping straight to price. If you’re an ISV thinking about getting into the payments game, or just want to avoid the biggest pitfalls, this episode is packed with practical advice, real-world scenarios, and the kind of questions you should demand answers to before you launch.

• (00:00:04) - Payments Ground Game: Monetizing Payments
• (00:08:26) - No PIN debit at checkout
• (00:10:03) - IsV liability discussed in financial terms
• (00:11:40) - Certification to a POS: The Best Path for Your Business?
• (00:15:25) - Marathon: Merchant Billing, Underwriting
• (00:17:38) - IsV Payments: Revenue Sharing
• (00:22:13) - Payment Services: Revenue Share and Schedule A
• (00:26:49) - How To Get Certified as a Payment Processor
• (00:29:38) - A Taste of Ben's

In this episode, hosts Kevin and Elaina Smith roll up their sleeves to tackle one of the biggest milestones in the payments world: securing a direct processing agreement and an acquiring bank sponsorship.

Whether you’re pondering the shift from sales-driven retail to a more wholesale, operational model—or you’re just curious about what it really takes to get your own BIN and board merchants directly—this conversation takes you through the practical realities, financial implications, and operational readiness you’ll need to make it happen. You’ll get firsthand insights on when to consider going direct, common misconceptions about profitability, and the critical elements banks look for before handing over the keys.

Plus, Kevin and Elaina don’t shy away from the fine print. They break down the structure of processing agreements, minimums, reserve requirements, and those sneaky extra fees—from kilobyte charges to compliance reporting. You’ll also hear their candid takes on building your underwriting, risk, and accounting teams, and why operational expertise is make-or-break for this next phase of your business.

If you’ve ever considered the leap into direct processing—or want to understand why so many ISOs struggle with the transition—this episode is packed with actionable advice, cautionary tales, and a few rants about the realities behind the numbers.

• (00:00:04) - Do You Need To Get Your Own Payment Relationship?
• (00:04:28) - What is a Direct Processing Deal?
• (00:06:17) - How to Get Your Own Bank Card
• (00:11:09) - Processing Agreement
• (00:13:41) - Do Minimum Interchange Rates Affect Business?
• (00:16:04) - What are the implications of elevator clauses in processing agreements?
• (00:18:39) - Payment processing agreements, service offerings
• (00:22:48) - Negotiating an Issuance Agreement
• (00:24:10) - What are we going to need for a direct-processing merchant?
• (00:30:19) - Direct Processing Advice

On this episode of Payments Ground Game, we take a deep dive into the complicated, often misunderstood world of payment processing. Whether you’re new to the industry or a seasoned pro, you’ll appreciate their clear breakdown of what actually happens on the front end and back end of processing—from real-time authorizations to the nitty-gritty of batch settlement and clearing.

Elaina and Kevin use easy-to-understand analogies (remember Ma Bell and those old-school telephones?) to demystify how terminals, gateways, and virtual terminals communicate with processors, and why product certification to the front end is so critical. They’ll tackle the important distinctions between credit and PIN debit transactions, why reliability isn’t as simple as you think, and the real reasons those occasional outages seem to strike at the worst times.

On the back-end, they’ll explain why timing—like batching out at just the right moment—can make a big difference in your interchange rates, and what can go wrong if you or your processor slip up. Expect honest stories and industry insights about rejected transactions, interchange reclassifications, and the challenges of maintaining accuracy in a fast-changing payments landscape.

So, if you’ve ever wondered what “front end” and “back end” really mean for your business—and how your bottom line can be affected by everything from cut times to product certification—this episode will give you the tactical, real-world knowledge you need to scale your payments operation effectively.

In this episode, hosts Kevin & Elaina Smith are joined by special guest, Ken Musante, Founder and President of Napa Payments and Consulting. We explore the necessary relationship between acquiring sponsor banks and card payment processors, as well as how sponsor banks and independent sales organizations (ISOs) share different levels of responsibility and risk for the merchants they serve. We cover the game-changing role of automated tools in risk monitoring and underwriting as well as the vital importance of operational compatibility over mere cost in bank relationships. We also cover the kinds of things that can go wrong in sponsor bank relationships, how it affects the entities that do business with them, and what lessons can be gleaned from recent events.

Contact Ken Musante by reaching out to him on LinkedIn or visiting his website, Napa Payments and Consulting.

In this episode, hosts Kevin and Elaina Smith dive deep into the transformative power of technology in the payments ecosystem. We explore how to leverage scoring solutions, identity verification tools, and automated processes to enhance risk management and operational efficiency. We also discuss evaluating new tools, balancing cost vs. value, and ensuring scalability for future growth. Tune in to explore how these strategies can transform operational tactics in your business.

In this episode, hosts Kevin and Elaina Smith welcome payments industry marketing leader, Rebecca Walden. We address critical issues plaguing current marketing efforts in our industry—lack of creativity, excessive jargon, and a focus on self-congratulatory tactics. Our conversation explores why marketing in the industry often falls short of engaging potential clients and the perils of relying on pay-to-play awards.

We underscore the importance of authentic marketing and the benefits of humanizing a brand through its employees, as well as the careful management of personal and professional personas on social media platforms. Moreover, we touch upon the significance of clear policies, regular training, and the thoughtful use of personal content on business-oriented platforms like LinkedIn.

Rebecca discusses the criticality of reflecting genuine company values through marketing, especially during times of crisis. Kevin and Elaina highlight the importance of robust networks, personal growth, and meaningful connections in navigating economic downturns and career transitions.

We also explore the synergy between marketing and sales, the importance of a feedback loop, and the need for consistency in messaging. Rebecca shares insights on embracing new strategies, monitoring and experimenting over the long term, and ensuring marketing is an integral part of product design and customer experience.

Join us for this profound discussion, brimming with actionable insights, as we strive to elevate marketing practices in the payments industry.

Connect with Rebecca on LinkedIn: https://www.linkedin.com/in/rebeccacwalden/

In this episode, hosts Kevin and Elaina Smith unravel the complexities of Acquiring Bank Identification Numbers (BINs) and their pivotal role in the payment processing ecosystem. This episode is perfect for payment ISOS and professionals eager to deepen their industry knowledge!

Three Key Takeaways:

Understanding BIN Responsibilities: Managing a BIN involves underwriting, risk management, and meticulous reconciliation. It’s not just about having a BIN; it’s about managing it effectively to safeguard your operations and maintain compliance with card networks.

Strategic Importance of Owning a BIN: Owning a BIN can drastically increase the value of your business by providing control over processing relationships and the flexibility to manage financial transactions, contributing to a robust exit strategy when selling your business.

Risks & Rewards: The pursuit of your own BIN is laden with considerable responsibilities and risks. However, for the right business model and with the proper financial backing and expertise, it can be a game changer, providing independence and competitive advantages in the marketplace.

Whether you're contemplating getting your own BIN or simply want to understand what your partners may be handling behind the scenes, this episode is packed with valuable insights!