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National Processing Co., a Louisville, Ky.-based payment processor, landed a merchant-referral program for United Natural Foods Inc. in recent months after the Dayville, Conn.-based food distributor chose not to start an independent sales organization for its more than 17,000 merchant customers. National Processing will sell payment services, including debit and credit card processing, gift card and loyalty programs, and merchant cash advances and United Natural Foods sales representatives will pitch the processor's services during their sales calls. Marc Warsowe, an independent consultant working for United Natural Foods, says his client decided in the final stages of the review of the proposals not to pursue the ISO path because of the costs of starting and training a separate staff to operate a United Natural Foods-owned ISO. Warsowe began his work more than a year ago by attending acquiring trades shows and meeting with industry authorities. "NPC initially got involved with the intent to help [United Natural Foods] build an ISO, but there was a lot of start-up costs and risks, especially for a company without any merchant-services experience," says Chris McNulty, NPC senior vice president of business development. As with any referral program, United Natural Foods hopes the financial-services package creates one more reason for a merchant to remain a United Natural Foods customer, Warsowe says. "Success equals income, and success equals service to cement the retailer to us and to NPC," Warsowe says.
