Selling Dreams, Not Terminals: Tuzo Rewards Surprising Revolution in Payment Processing | PEP048

The Payments Experts Podcast

Jeff and Hersh Moskowitz share how their payment processing journey led to the creation of Tuzo (https://www.tuzorewards.com/), a revolutionary rewards program that helps ISOs build stronger merchant relationships and increase portfolio value.
• Started in point-of-sale systems in 2009, primarily serving convenience, liquor, and tobacco stores
• Pioneered dual pricing/cash discount methodology around 2012-2013 following the Dodd-Frank Durbin Amendment
• Developed Tuzo as a solution to the "race to zero" pricing problem plaguing payment processors
• Created a rewards program where merchants earn points based on processing volume that can be redeemed for luxury items and experiences
• Merchants willingly accept higher processing rates to participate in rewards programs
• Merchants activate faster when earning rewards and are less likely to switch processors
• Sales process transforms from selling processing to "selling dreams" with rewards as the focus
• Positive touchpoints replace traditionally negative interactions between processors and merchants
• Book values increase with rewards implementation due to increased merchant stickiness
• Merchant relationships strengthen when processors help fulfill aspirational goals like vacations or luxury items

Imagine turning every payment transaction into a positive experience for both merchants and processors alike. That's exactly what Tuzo Rewards has accomplished with their groundbreaking merchant rewards program.

Jeff and Hersh, the founders of Tuzo Rewards, take us on their journey from point-of-sale system developers to payment processing revolutionaries. After pioneering cash discount programs following the Dodd-Frank Durbin Amendment around 2012-2013, they recognized a fundamental flaw in the payment processing industry: the only time merchants contacted their processors was when something went wrong, creating an inherently negative relationship dynamic.

Their solution? Create a rewards program where merchants earn points based on their processing volume that can be redeemed for luxury watches, vacations, electronics, and more. The results have been nothing short of transformative. Rather than competing solely on price in the endless "race to zero," processors can now offer something genuinely valuable that competitors can't easily match.

Perhaps most surprising is how this program has reversed pricing trends. Merchants are willingly accepting higher rates (often moving from 3.5% back to 3.99%) just to participate in the rewards program. This creates a win-win scenario where merchants receive tangible benefits they truly value while processors maintain healthier margins. For ISOs and agents, the sales conversation shifts dramatically from "Let me save you money" to "What rewards would you like to earn?" - turning transaction processors into dream facilitators.

Ready to transform your payment processing business with a solution that creates positive touchpoints throughout the merchant relationship? Discover how Tuzo Rewards is changing the game by visiting tuzoRewards.com or reaching out to [email protected] and [email protected].

Visit us today: https://www.globallegallawfirm.com/

A payments podcast of Global Legal Law Firm

Chapters

1. From POS to Payments Evolution (00:00:00)

2. Birth of Cash Discount Processing (00:09:08)

3. Integration Explained: Connecting POS & Payments (00:16:45)

4. Introducing Tuzo: Merchant Rewards Revolution (00:27:17)

5. Building Merchant Loyalty Beyond Price (00:36:20)

6. Lifecycle Benefits & Implementation Success Stories (00:48:40)