“…we are both manically focused on always doing what’s right when it comes to our employees and customers, and to only take on debt if that dollar we borrow makes us two.”

Interview by Mike Sullivan of Sully’s Blog

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R. Scott Anderson is Chief Executive Officer (CEO) and Co-Chairman of the Board of OMEGA Processing Solutions and OMEGA Capital Services. In 2003, he co-founded OMEGA Processing Solutions with President Todd McHugh.  Prior to the founding of OMEGA, Scott worked in various sales and sales management positions within VeriFone (PAY) and was instrumental in the organization’s growth. Scott has held sales and management positions within the credit card processing divisions of Norwest Bank (now Wells Fargo) and SunTrust Bank. While at Norwest, Scott was a key manager and helped to build the agent bank program and his merchant team increased Norwest’s market share in each of the markets he served. During Scott’s time with SunTrust he implemented changes that improved processing services and costs for Walt Disney World Resorts and instituted new pricing in the SunTrust Florida merchant portfolio thus increasing profitability for SunTrust shareholders.

OMEGA provides credit and debit card processing, gift card issuing and processing, complete point of sale cash register systems and check processing.  OMEGA also provides working capital for all types of businesses.  The company services a wide variety of industries including retailers, restaurants and other service establishments across the United States.

MO:
You both have extensive backgrounds when it comes to Credit Card Processing.  What were the circumstances that brought you together to form OMEGA Processing Solutions?

Scott:
When Todd and I were with VeriFone, we saw an opportunity within the industry to provide a higher level of service and respect to the sales agents and merchants.  All too often what we saw, and continue to see today, are bait and switch tactics. Sales agents not being paid, merchants receiving a lower price to switch processors, and low and behold 90 days after the contract is signed the price goes up. After 7 years in business, OMEGA has never been late on residual payments to an agent and has only raised industry fees when interchange rates have changed during the term of the contract.

MO:
You offer a broad range of services from payment processing to POS systems to gift and loyalty programs.  One service that seems very unique to me is the business funding.  Can you tell me about this service and where the idea came from to make this a part of your business model?  How have your clients benefited from this?

Scott:
Business funding, like most products and services, grew from a void in the marketplace, a small crack that grew into the San Andreas Fault when the market collapsed.  Small businesses such as restaurants, retailers and auto repair companies have struggled to gain capital from traditional sources. We heard clients and prospects say, “I would like to purchase a new POS system”, “I really need to pay my taxes” or “If I had $20,000 I could finish off that back room and add additional seating.”  Which begged the question, “Why can’t you?”  The answer always was “My credit line was reduced” or “Banks just aren’t lending right now.” We found a way to help invest in small business in America by providing short term capital through advancing on a merchant’s credit card receivables.  The way an advance works is if a merchant conducts $20,000 a month in credit card processing, we will advance them up to $25,000. We take a percentage of their credit card sales each day to pay back the advance and target around 7 to 8 months to pay off the complete balance.

MO:
OMEGA has won “Fast 55” for Most Growth in the $1-$5 Million Revenues Category and “Emerging 30” for the 30 fastest growing companies in the area.  How have you been able to leverage your prior experience to build a successful business?  What skills do you feel have been most important to leading a growing the company?

Scott:
If you looked up Ying and Yang in the dictionary, you would see a picture of Todd and me.  Our strengths and our weaknesses complement one another.  With that said, we are both manically focused on always doing what’s right when it comes to our employees and customers, and to only take on debt if that dollar we borrow makes us two.  We hire smart people and give them the ability to make decisions; our organizational structure is a “blueberry pancake”.  If someone is troubled or struggling with a decision, they are always welcome and encouraged to walk in Todd’s office or mine and ask our opinion on the solution they propose to address the customer’s problem.

MO:
In 2009, OMEGA acquires Systems 70, a local POS system sales and service provider.  How is OMEGA continuing to grow while the industry, in general, is remaining flat?

Scott:
Two great things came out of the purchase of System 70: we acquired Dale Bennett who has a wealth of knowledge in the Point of Sale (POS) business and we received a Harvard education on the dos and don’ts of the POS industry. The POS business for us is like a razor is to Gillette; we will give the POS systems away at cost to develop a long term processing relationship with our merchant customer.

MO:
As business owners, what should we each be looking for in a payment processing company?  Are there things we need to look out for?

Scott:
First, when at all possible, make sure you aren’t just a number. Large processing companies are worried about one thing – bringing more customers in the front door than they are chasing out the back door.  Second, make sure you are dealing with someone that is knowledgeable about the industry.  Third, find out how long that sales person has been with the company they are representing, not in the industry, but how long they have been with the company. Fourth, ask for the names and telephone numbers of the customer service manager and technical support manager. If you receive a general answer of “It goes into our customer service department and someone will help you,” be prepared for voicemail jail when you have a problem.

Fifth, and most important, remember this is your money you are entrusting to someone. If there is a problem you want someone that views you as a customer, not a number or a trouble ticket.

MO:
In just 5 years, OMEGAProcessing has contributed $100,000 in sponsorship towards youth sports in the community, with contributions growing as the firm grows.  How important is it for a company to give back to the community?  What does a company gain by doing so?

Scott:
Investing in your community is the most important thing you can do as a company. We chose youth sports because Todd and I are both very passionate about it and firmly believe that winning and losing are great life lessons.  Being part of a team, whether it’s bowling or basketball, you have to learn how to work together for a common goal.

We gain a lot of joy seeing the kids have fun and the parents in the stands just being parents.  If you expect anything more than that, in our humble opinion, you are simply doing it for the wrong reason.