At a recent Ocean County Business Association (OCBA) meeting, members heard from Michael Feliz, founder and managing partner of Shore Merchant Services. Michael has spent more than two decades helping businesses through the increasingly complex world of payment processing.
While many business owners think of merchant services as simply “credit card processing,” Michael’s presentation revealed how much more is involved behind the scenes—and how the wrong provider can cost a business far more than they realize.
From Professional Baseball to Payment Technology
Michael’s career path has been anything but ordinary.
After growing up in the Bronx and earning a baseball scholarship to the University of Missouri, he was drafted by the New York Mets and spent time in their farm system before an injury ended his professional playing career.
Following a stint with Marsh McLennan, one of the world’s largest insurance firms, Michael moved to New Jersey and briefly owned a restaurant in Red Bank. It was during that experience that he was introduced to the merchant services industry.
What began as an opportunity to take over an established client portfolio eventually grew into a thriving business. In 2005, Michael launched his own company, and today his organization serves businesses throughout the country from offices in Toms River, New Jersey, New York, and Tampa, Florida.
What Makes an Independent Merchant Services Provider Different?
One of the key points Michael discussed is that not all merchant service providers operate the same way.
His company functions as an Independent Sales Organization (ISO), meaning it is directly registered with Visa and Mastercard and works closer to the source than many traditional resellers.
For business owners, this can translate into:
- More competitive processing rates
- Greater transparency
- Direct customer support
- Faster problem resolution
- Access to advanced payment technologies
According to Michael, many processors rely on layers of intermediaries, each adding costs that ultimately get passed on to merchants. His company’s structure allows them to work more directly with clients while providing ongoing service and support.
Why Payment Security Matters More Than Ever
One of Michael’s specialties is payment security technology.
He explained how widespread data breaches in the early 2010s eventually pushed the United States to adopt EMV chip card technology, which Europe had already been using for years.
Anticipating these industry changes, Michael developed and patented payment technology designed to improve transaction security for restaurants and other businesses.
His system utilizes what is known as “semi-integration,” where sensitive card information bypasses the point-of-sale system and is processed through a dedicated payment terminal instead.
The result is enhanced security, reduced exposure to data breaches, and improved PCI compliance for merchants.
Today, his technology is licensed and utilized by multiple companies around the country.
Helping Restaurants, Retailers, Nonprofits, and Mobile Businesses
While restaurants remain a major focus, Michael’s company supports a wide range of organizations.
Services include:
- Restaurant POS systems
- Retail payment solutions
- Mobile payment processing
- Food truck payment systems
- ATM sales and leasing
- Nonprofit fundraising technology
- Virtual and online payment processing
- Wireless and tablet-based payment systems
The company also works extensively with nonprofit organizations, providing tools that allow charities to accept donations, process auction payments, and manage fundraising events more efficiently.
The Hidden Risk of Credit Card Surcharging
One of the most eye-opening portions of Michael’s presentation focused on credit card surcharges.
Many businesses have implemented surcharge programs to offset processing expenses, but Michael warned that a significant number of merchants may be violating state regulations and card network rules without realizing it.
A common misconception is that businesses can apply surcharges to any card transaction. In reality, debit cards cannot be surcharged under current regulations.
Michael explained that many merchants are unknowingly using systems that fail to distinguish between debit and credit card transactions. As a result, customers using debit cards are being charged fees that should not apply.
This creates potential exposure for businesses as enforcement efforts increase.
According to Michael, Visa and Mastercard have significantly expanded compliance and enforcement efforts, particularly in states such as New Jersey, Pennsylvania, and New York. Businesses found violating surcharge rules could face penalties from both card networks and regulatory agencies.
Understanding the Difference Between Surcharging and Cash Discounts
Michael also clarified an area that often confuses business owners: the distinction between surcharging and cash discounting.
A surcharge adds a fee to a transaction when a customer pays with a credit card.
A cash discount model works differently. The posted price includes the processing cost, and customers who pay with cash receive a discount.
While these approaches may seem similar, the compliance requirements are very different. Using the wrong system—or implementing it incorrectly—can create legal and financial headaches for merchants.
This is one reason why businesses benefit from working with experienced payment professionals who understand the evolving regulatory landscape.
A Nationwide Business with Ocean County Roots
Although Michael’s company serves clients across the country, Ocean County remains an important part of its story.
The business has operated from Toms River since 2009 and continues to help local business owners understand their options when it comes to payment technology, security, compliance, and cost management.
As electronic payments continue to evolve, business owners face growing pressure to balance convenience, customer expectations, cybersecurity, and operating expenses. Having an experienced partner can make a significant difference.
Connect with Michael Feliz
If your business accepts credit cards, operates a point-of-sale system, manages fundraising events, or wants to explore ways to reduce processing costs while remaining compliant, Michael Feliz and his team can help.
If you’re running a restaurant, retail store, nonprofit organization, professional office, or mobile business, their solutions are designed to provide secure, modern, and efficient payment processing.
Call 732-682-5019 or contact Michael Feliz at his website https://www.shoremerchantservicesltd.com/ to learn more about merchant services, payment technology, ATM solutions, and compliance-friendly payment programs.
Grow Your Business Through OCBA
The Ocean County Business Association continues to connect business owners with trusted professionals, valuable referrals, educational opportunities, and community leadership.
Members gain access to a network of business leaders who share knowledge, support one another’s growth, and help strengthen the local business community.
If you’re a business owner, executive, entrepreneur, or professional looking to expand your network and build meaningful business relationships, consider becoming a member of the Ocean County Business Association.