Sunshine State venture also shines on Mitten

by Larry Meyer
MRA Chairman and CEO

Florida Retail Federation is a trade organization similar but not identical to Michigan Retailers Association. They have a very successful workers’ comp program, but three years ago they realized that their modest credit card processing program was not growing and had customer service issues.

That’s when we saw an opportunity that maximizes two of our strengths: credit card processing and customer service. We entered into a joint venture with Florida Retail Federation whereby FRF reps handle the sales, signing up new members for processing, and we handle the “back room”—the customer service, the technical support, the billing.

This joint venture has been a tremendous success. It brings business to MRA, it improves FRF’s services and, most important, it benefits our Michigan members.

As you know, a business must keep growing to stay viable. By helping us increase volume in our processing business, the joint venture allows us to continue to receive better rates through aggregation—and better rates benefit everyone.

It’s no secret that Michigan’s economy continues to falter, while those in the Sunshine State are having a moderately good year.

Adding Florida’s retailers to the mix helps MRA do more business, which in turn helps MRA’s members by allowing our organization to continue to offer and expand on valuable services—something that would be increasingly difficult to afford if we worked just with Michigan retailers.

Just to keep things in perspective: credit card business from Florida’s retailers is still not a huge part of our business—it represents about 8 percent of our gross revenue from credit card services. Our focus as an organization is still squarely planted right here; our legislative focus and our other services have not shifted from Michigan.

But the business brought our way by this joint venture has been a welcome shot in the arm that has helped inoculate us, somewhat, from the harshness of Michigan’s struggling business climate.

As we hope to stay healthy to better serve your interests, we will continue to look for ways to benefit our members and our statewide industry. Our Florida relationship may be a prototype for working with other state retail associations.

So the next time you’re vacationing in Florida and visiting a small store there, know that you may have more in common with that retailer than you think. Unlike other issues we face daily, good processing rates know no state boundaries.