Content By: Shaw Merchant Group
Top Reasons Why ISO Partners Choose North American Bancard
Each year, hundreds of merchant service agents choose North American Bancard as the best merchant services company to work for. If you’re wondering why everyone gravitates towards this merchant services agent program, then get ready to have all of your questions answered. Here are some of the greatest benefits of working with North American Bancard’s merchant services agent program.
Accurate On-Time Payments
When you work with the North American Bancard ISO agent program, you’ll be working with a partner that understands the importance of accurate, on-time payments. This will never be a source of stress for North American Bancard sales partners.
14X Profit Based Bonus Structure
We offer a performance-based fast start bonus that is payable for anyone that onboards more than the standard threshold of clients in the first 4 months. This program is designed to reward those experienced sales members that join our team and quickly learn how to sell this product. The bonus can reach up to $20,000, making it one of the most lucrative and competitive in the industry. We will look at how much profit is generated on the account after they have been processing for one month and you earn 14 times of the total profit. Example: If we retain $100 in residuals in that month, the bonus would be 14 x $100 or $1,400. You would have already been paid $600, so we would pay you an additional $800 on that account. This bonus is capped at a max of $5,000 per merchant per location. With our Cash Discount Program it is easier than ever to earn huge bonuses with a 14x profitability bonus. This dual pricing model enables you to maximize your bonus at $5,000 on almost every merchant processing over $45k.
Lifetime Passive Income
You will receive 50-70% of residual income based on the pay structure you select. You will share income on every available revenue stream. With NAB, You Get a True Interchange Revenue Split. Unlike other merchant ISO agent programs, there is no basis points off the top for BIN sponsorship or for what they call hidden losses. Our sales partners earn more residual income with our 50/50 partner program than you would with our competition who claim to offer a higher percentage because their interchange cost (buy rate) is higher.
Free High-End Processing Equipment
Selling businesses on a new processing plan is much easier when you are able to effortlessly jump over the hurdle of the cost of the equipment. With this program, you can offer your clients free POS terminal equipment that they will need for their processing provider change. This lowers the barrier to switching and creates a higher conversion rate for you.
Cash Discounting Program (Dual Rate Processing)
When you are selling merchant processing services, one of the best assets of any partner program is more rewards and incentive programs that saves your merchant money. The cash discount program is one of the hottest new commodities in credit card processing, as it is designed to save the client thousands of dollars in credit card processing cost, instead passing on the fee to the consumer in a way that isn’t damaging to their own conversion rate and revenue. We offer this program to our clients and make it easy to understand and present for our sales partners.
Multiple Processing Platforms
Even though we still use Global Payment and First Data as our processing platform, we have partnered with the EPX platform. EPX can optimize interchange, which means we can process the same transactions for less. This allows you to save merchants a ton of money and make more money yourself.
Backoffice Tracking System
With our Sales Partner Portal (Dashboard) you can track your residuals all the way down to the transaction. You will have access to what your merchant paid for a specific transaction, how much the expense was and how much you were compensated. You're able to look at the merchant’s statement for comparison. With 100% transparency, you are now able to check whenever your want so you can be confident in building a profitable portfolio.
Registered DBA Program
If you're serious about helping your merchants grow their businesses, we want to partner with you. Whether you're interested in becoming a ISO Sales Partner, are already providing merchant services as a registered ISO, or you're a Sales Partner who wants to sell under your own name, NAB is the ISO merchant services partner you want. Our Registered DBA and ISO programs can get you up and running in as little as 2 weeks, saving you thousands of dollars in card brand registration fees in the process.
Marketing Resources
One of the things that North American Bancard Agent Program is known for is providing our agents with the resources that they need to survive and thrive in a competitive business environment. This means marketing materials, frequent promotions, and other tools that help you to have more success and earn more commission!
Customer Support
North American Bancard’s responsibility and premium services don't just stop at the sale. Build the relationship with your merchants to new heights by providing them high-quality customer support to help them with any issue they are having with the merchant services they are provided.
Are you tired of losing a percentage of your sales to the credit card companies? That’s the cost of doing business, right? Where do you draw the line, though? When does it become too expensive to allow customers to pay with credit cards? You can’t just turn credit card paying customers away – that’s bad for business, so what should you do?
Try the Edge program. It helps ease the financial stress on merchants while rewarding cash buyers with a discount. It’s a win-win for everyone. With Edge pricing structure, every party involved in the transaction benefits. Both the customer and the merchant, there is a lot to love about our Edge program. This merchant cash discount program presents a new way to appeal to customers, incentivize cash payments, and lower the operating costs for merchants. You may have heard of merchant cash discounts before, but this new wave of modern merchant cash discounts provides a brand new perspective and flow to the process that many consider to be a major incentive for paying with cash and supporting their local businesses.
When you use the dual pricing cash discount program, you must make it known that you offer cash buyers a discount on the total cost of the items and customers paying with a credit card pay the full, listed price. This isn’t a surcharge – you aren’t penalizing credit card paying customers. Instead, you’re offering cash discounting or rewarding cash-paying customers.
Here’s an example.
You have a product listed for $20.
John comes in and buys the product for $20, paying with a credit card. John pays $20. Jan comes in and buys the product for $20, paying cash. Jan pays $19.20 because she gets a 4% discount for paying cash.
Benefits of a Merchant Cash Discount Program
When it comes to the Edge credit card processing program, there’s a lot to love from just about every angle. However, as a merchant, you can understandably be hesitant about implementing a process that you don’t know anything about. That’s why we provide an upfront summary of what exactly the Edge program has to offer and why it is the primary choice of so many merchants that are looking to differentiate themselves from the competition.
Lower Processing Fees
The main benefit of a cash discount program is that it results in lower or zero processing fees. While many don’t give a second thought to what the processing fees are on any given transaction, business owners certainly know that these fees do add up and can affect margin in a very real way. When merchants use Edge pricing they are, in effect passing on that processing fee to the customer. Over time, this can save merchants thousands and provide them with a higher margin on their sales.
Discounts for Customers
What customer doesn’t love a discount? Being able to provide every customer that pays in cash with a discount is not only a very marketable promotion, but it helps to make your customers happy. Customers love going to businesses that offer a cash discount because it allows them to feel as if they are getting a good deal and somewhat have control over what they pay at your establishment. When it comes to happy customers, it is very hard to put a price tag on that.
Increased Loyalty/Happiness
When your customers are continuously having positive experiences at your business and are getting to know your establishment as a place that offers a cash discount, that can only help you. This creates loyalty and happiness in your customer base and helps to establish brand and customer loyalty. This is a very valuable asset and it can help to offer consistent cash discounts to your customers.
Easy to Deploy
When you think of implementing a program like this, it can be easy to get overwhelmed and assume that you won’t be able to do it easily. However, this couldn’t be further from the truth. In truth, it is growing increasingly easy to deploy a cash discount program and with all of the resources that we provide to our merchants, it is easier than ever.
What’s Included in Our Cash Discount Program?
With our cash discount program POS, you will be able to process a wide variety of payments from all major credit card providers. This offers your customers even more convenience and helps to build loyalty time and time again.
Free POS Equipment
Don’t worry about the cost of upgrading to a whole new system--we have you covered. We provide free POS equipment to our merchants to once again make working with the Edge program as easy as possible. When you work with us, there will be very little to be worried about.
Fast Funding
We are known for providing fast funding to our merchants. It’s hard to operate a business when your cash flow is being restricted, and that is why we put a focus on making payments accurate, concise, and fast to provide you with a business partner that you can trust to keep your financial interests at the forefront.
Flexible Contracts
Worried about getting locked into a long contract? Don’t be. We don’t believe in limiting the options of our merchants and that is why we offer flexible contract options that don’t lock you in for years at a time. With the Edge cash discount program, you’ll have options, which are extremely valuable to have when operating a business. You can pivot at a moment’s notice, should you need to.
Easy to Understand
From a customer and merchant perspective, operating on a new point of sale system can be complicated and difficult. That isn’t the case with Edge. We have structured this program to make it as easy as possible to understand and use so that any business can use this program to their advantage.
FAQ
Is it legal for merchants to offer cash discounts to their customers?
According to the FTC, it is illegal to inhibit the ability of customers to pay cash. Therefore, programs like cash discounts and surcharging are legal and encouraged.
Does a processing fee drive customers away?
Studies show that this isn’t an issue that consumers are worried about. Most consumers are happy to pay an additional small fee for the convenience of using their card.
What happens if I don’t like the merchant cash discount program?
We have flexible contract options so that you don’t have to be locked into a merchant cash discount program that you don’t like. We love providing flexibility to our merchants and agents. We’re confident that you’ll love our program, though.
What’s the difference between this and surcharging?
The act of providing a discount for those that pay with cash is different than charging an additional fee for credit card users. This is confirmed by many of the major credit card associations.
Why should I choose the merchant cash discount program?
We have been in business for years and have a reputation for providing the best merchant programs.
What resources do I need to ensure that I’m running this program correctly?
We provide our merchants with all of the resources that they need to implement and operate this program, including POS systems, back-end systems, and signage to notify their customers of the change.
How to Start an Online Payment Processing Company
One of the most lucrative fields that you can get into as a salesperson is selling to other businesses. Unlike most end consumers, business owners keenly understand the value of investing wisely in long-term solutions, and not merely throwing away their money on something cheap. If you want to truly contribute value to other business owners, while making a decent paycheck every month yourself, one of the best ways to do that is to offer quality merchant services. You will be invaluable to your clients, and if you serve them well, they will continue to look to you for ways to make their business more efficient.
Why start selling merchant services on your own, though? Isn't that a lot more work? What are the benefits if you're already working in a commission-based kind of job? Well, here are a few of the major ones:
More Control - Even if you're working in a field where you get a relative amount of independence, like in sales, you still don't have complete control, and your whole work life revolves around satisfying someone else's numbers. You may have your own personal selling style, but the overall strategy that the company follows—the direction in which “the ship” is being steered—is not determined by you, but by someone else. This may not be such a bad thing for some people, but it also means that your livelihood is ultimately in someone else's hands. What if the owners of the company that you work for make a dumb decision that spells the end of the business? You will have to suffer the consequences anyway, even though it wasn't your fault.
More Cash - Of course, if you start your own merchant services business, you have the potential to make a lot more money than someone who doesn't. If you're an independent contractor, at the end of the day, the people above you are raking in the most money. Sure, as a salesperson, you might make a hefty percentage of that, but the fact of the matter is that your potential for financial growth is stunted. If you have a business that you control yourself, it is basically up to you how much money you want to make, and you keep more of the fruits of your hard work.
The Potential for Scale - The thing about a normal job, even a sales job, where you're working for someone else, is that you rarely have the possibility to scale things up. In other words, you can't “replicate” yourself by hiring someone else to do some of your tasks, and this can greatly reduce your long-term income potential. When you start a merchant services business, you can choose to run it in many different ways, but one way is to outsource the work slowly until your business can practically run on its own. For true residual, passive income, this is the kind of situation that you will want to be in. This is what makes it possible for you to work because you want to, and to make money even in your sleep. You just can't do this when you work for someone else.
Now, you may be thinking: How do I start a merchant service business? Maybe you've been a salesperson for awhile—maybe you've even been selling POS equipment and other important retail tools—but you're not sure how to make that leap into selling for yourself.
Well, unless you've invented and designed your own solutions, you're going to have to start by forming a partnership with a merchant services agent program that you believe in. They're going to have to make a product that you can really get behind because, if you're building a business for yourself, most of your money is ultimately going to come from the back-end, from repeat customers. This is why it is so important to take a step back and think about quality above anything else. By all means, find a program that is lucrative, but don't ever sell a product that you wouldn't feel enthusiastic about using yourself. In the end, this is what is really going to create repeat business.
What traits do you look for in a merchant services agent program, then? Don't be taken in by any fancy bells and whistles. Basically, these are the things you are going to want to see:
A History of Reliability - Again, there's no sense in selling shoddy services or products. Look up reviews of the company and decide if they are any good. Research their products and make sure that they are user-friendly. Find a way to use them if you can. The easiest products to sell are the ones that are actually good because they basically sell themselves time and time again.
Generous Revenue - Share Since this is going to be the core of your business, you are going to want to find a merchant services partner program that gives you a good cut of the sales. If you're doing all the work of finding and maintaining leads, then you need a fair percentage of what that customer is paying.
Residual Income - Part of what makes selling POS services so lucrative is that there is often a monthly fee involved or else the merchant services agent program takes a percentage of the user's sales. As a partner, make sure that you have access to a significant portion of that long-term income as well. This is what is going to pay you month after month, even long after you have made the initial sale. This is where most of your money is, really.
Lots of Options and Flexibility - The company you work with should have lots of different options when it comes to revenue sharing, that way you will be able to build a strategy out of the one that best suits your business.
So, what specific company can you go with that will fulfill all of these needs? There are a few, but one of the best and most reliable is North American Bancard. We provide real value to their clients, so you should have no trouble working with them and building a stream of residual income from their products. Ultimately, though, just focus on solving your customers' problems and finding a company that can help you do that, and you should be able to start your own merchant services business.
Top 5 Merchant Services Agent & ISO Programs
In order to help you get started on your quest, here are five of the best ISO agent programs out there that you can look into:
Looking for a company that has a lot of experience and support? This can be especially important when you're first starting out. You don't want to just be left in the dust whenever you have questions or if something goes wrong. They're very committed to offering the best service possible to not only their end-users, but more importantly to their sales agents. They'll provide you with the latest technology, varied offers to give to your clients, and top-notch service. They also offer extremely fast payments, and in fact will pay you every day instead of making you wait for weeks.
If you are a sales-oriented individual with vast experience in the world of credit card processing or you are a driven and motivated professional looking for a new challenge, North American Bancard might be a great fit for you. With one of the most competitive merchant services commission structures in the industry, NAB will see to it that you are rewarded for your efforts.
As one of the top ISO/MSP programs, NAB has a history of a favorable commission structure, superior products, and sales support for thier ISO partners. With so much commission at stake, you will truly feel like a partner in the NAB business plan.
With North American Bancard's Registered DBA Program, you'll be able to market under your own brand, without paying costly fees! Your brand will be seen on the partner portal, marketing communications, merchant statements, and more.
2) CardConnect
Want to go with a leader in the industry? CardConnect is a great ISO with a lot of options for the ambitious sales agent. For one, they have a proven track record of service and have been around since 2006. They offer some of the easiest-to-navigate merchant applications around, a great support team, and in-depth training so that you can sell more effectively and grow in your payment processing career. They were among the firsts in the business to offer lifetime residuals from every deal that their sales agents close. If you want a reliable company that will let you build the passive income side of your business, you should seriously consider CardConnect.
Naturally, you are probably going to want to research more than just a few companies, but these are truly some of the best and brightest in the industry, and it's not a bad list to start with. Before anything else, it's important to perform a self-assessment and decide what your needs and wants are when it comes to an ISO partnership. Really, this means asking yourself: What kind of ISO is going to best serve my clients? If you still have no idea, that's perfectly fine. You don't have to limit yourself to a single ISO, and in fact it's probably a good idea when you are starting out to try several different processors.
Maybe you're looking for a very reliable company that has a history of great service and close relationships with their merchants and sales agents. In that case, you won't go wrong with PayProTec. They offer great customer support, as well as extensive online resources that you can use to build your business. When you sign up as a sales agent, you get a free website, a back-end portal where you can check your stats online, and the ability to look up trouble tickets and see any problems that your merchants are having. Like HarborTouch and a few others mentioned here, they also have a free terminal program.
Interestingly enough, they're not just paying lip service when they say that they care about their sales agents—they offer health care benefits and will reimburse half of your costs! This definitely helps to relieve one of the bigger headaches of being self-employed.
4) SHIFT 4 Payments
Shift 4 Payments (AKA: HarborTouch) is one of the largest providers of POS systems and payment processing services in the US. They handle over one hundred thousand merchant accounts across the nation, and billions of dollars worth of transactions. Part of the reason they are so ubiquitous in the payment processing field is no doubt due to their superior partnership program. They have smart, forward-thinking, and extremely competitive offers that make selling merchant accounts a snap compared to more “traditional” programs. For example, they helped pioneer the introduction of free terminal offers. In other words, you can provide the hardware to your client for no upfront costs to them, and still receive a handsome commission and great residuals afterwards.
“Free” is not a hard sell at all, so even if you choose another company, it's probably a good idea for you to make sure that your merchant services partner has a free terminal program. It's not always going to be a good fit for every merchant, but rest assured that more and more of your clients will be expecting free equipment.
Part of working in any field is having a niche, but oftentimes you can find yourself partnered with a company that won't approve of the merchants that you want to work with. Nothing is more disappointing than having great personal connections and prospects, but needing to turn them down because they run a “high risk” business, such as a liquor store, an e-commerce business, or any sort of retail store that would be subject to a lot of charge-backs.
With eMB's program, however, you won't have to worry about any of that. They will deal with just about any sort of merchant, including high-risk applicants. In fact, they approve about 95% of the merchants who seek accounts with them. This is good news for your clients and for you—especially since high risk accounts can be particularly lucrative.
Like the name implies, eMerchant Broker is a good choice if your merchant is an e-commerce business. They offer multiple gateways to make sure your client's shopping cart software will work perfectly with them. Give them a try, especially if your merchants tend to get rejected by other ISO's.
This all-in-one device combines the convenience of a fully equipped terminal with the advanced functionality of the Payanywhere software.
- A 5" touchscreen with Android software.
- An EMV chip card, NFC contactless, and magstripe reader.
- PIN debit.
- Built-in receipt printer.
- Front and back cameras for easy barcode scanning.
- 4G and wifi connectivity.
- Comes preloaded with the Payanywhere app!
- Free Credit Card Machine.
The Payanywhere Smart Terminal is the ideal solution for merchants who want to replace traditional terminal processing and for merchants looking to add a little mobility to their payment acceptance experience.
One for you and one for your customer. Redesign the checkout experience with the Payanywhere Smart PINPad Pro. Separate merchant and customer facing terminals allow for safe social distancing while still ensuring speed and efficiency.
- A 4” merchant facing touchscreen with Android software.
- A 2.4" customer facing display.
- An EMV chip card, NFC contactless, and magstripe reader.
- PIN debit.
- Built-in receipt printer.
- Wifi and ethernet connectivity.
- Comes preloaded with the Payanywhere app!
- Free Credit Card Terminal.
The Payanywhere Smart PINPad Pro is the ideal solution for social distancing while still ensuring speed and efficiency. Give you and your customers peace of mind, while still offering full visibility for every transaction.
A truly portable solution. Weighing only 300g, the A60 offers all the advantages of the A-series payment terminals in a featherweight, elegant design. It is paperless, helping reduce your environmental footprint as well as stationery costs.
- Inbuilt GPS
- An EMV chip card, NFC contactless, and magstripe reader.
- Front and back cameras for easy barcode scanning.
- 5" touch screen
- Cash drawer connectivity.
- Built-in thermal printer with 3.14”-wide receipt paper.
- Multiple accessory ports.
- 4G and wifi connectivity.
- Optional Base Station with fast printer & multiple ports
- Comes preloaded with the Payanywhere app!
- Free credit card terminal means no upfront cost.
The PA PAX A60 Smart Terminal Mini is the ideal solution for a portable credit card reader for a number of businesses, including salons, pay-at-the-table restaurants, coffee shops, and delivery businesses.
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It's a little bit terminal and a little bit point of sale!
- An 8” touchscreen with Android software.
- An EMV chip card, NFC contactless, and magstripe reader.
- PIN debit.
- Built-in receipt printer.
- A 4.3" customer facing touchscreen.
- Front and back cameras for easy barcode scanning.
- Cash drawer connectivity.
- 4G and wifi connectivity.
- Handle for easy mobility.
- Comes preloaded with the Payanywhere app!
- Free credit card machine means no upfront cost.
The Payanywhere Smart Flex is the ideal solution for merchants who want the flexibility to accept payments anywhere in their stores and enhance their customer payment experience.
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Transform your countertop with the space-saving, tablet-based point of sale designed for your storefront.
- A 12.5” touchscreen with Android software.
- An EMV chip card, NFC contactless, and magstripe reader.
- Front and back cameras for easy barcode scanning.
- A 4.3" customer facing touchscreen.
- Cash drawer connectivity.
- Built-in thermal printer with 3.14”-wide receipt paper.
- Multiple accessory ports.
- 4G and wifi connectivity.
- Comes preloaded with the Payanywhere app!
- Free Credit Card Terminal means no upfront cost.
The Payanywhere Smart POS+ is the ideal solution for merchants who want full POS functionality in a sleek and compact design.
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About Shaw Merchant Group
For years, Shaw Merchant Group has been the preferred partner of those that want more out of their payments processing experience. Shaw Merchant Group is a merchant services company that offers a unique and comprehensive suite of solutions to help business partners around the globe. With our distinguished suite of products and services, attentive customer service prioritization, and a world-class sales staff, Shaw Merchant Group is truly the ideal partner of merchants everywhere and in every industry.
Our Products and Solutions
To provide our merchants with the very best when it comes to merchant services, we feature a wide range of products and solutions that enable us to serve merchants from any industry.
Processing
Processing is the backbone of any business, and without a reliable partner to provide processing for your business, no transactions can happen. We are happy to provide processing services to our merchants all around the world and make it easier for any business ranging from small to large to accept payments and facilitate day-to-day transactions.
Ecommerce
Though in-person payments are not yet a thing of the past, ecommerce capabilities are growing by the day. While ecommerce grows in market share, you can’t afford to miss out on the benefits of working with a reliable partner to facilitate ecommerce payments. We collaborate with multiple platforms to deliver a full-service ecommerce payments package for our clients.
Back-End Solutions
Every business depends on back-end solutions to enable the front-end operations to work. We offer a comprehensive suite of back-end solutions that allow you to focus on what is really important--growing your business. Leave the back-end solutions to us to achieve high-quality, robust solutions that work for your business.
Mobile Payments
Mobile payments are becoming more relevant and necessary with each day. To facilitate these new kinds of payments, you need a partner that you can trust and one that has years of experience adapting to change. Shaw Merchant Group has been that partner for so many clients and we are ready to be that partner for you, as well.
Customized Solutions
Need something that you haven’t seen listed yet? We offer a suite of customized solutions that are sure to help you succeed in your goals. We work with companies on a daily basis to create solutions that are specifically designed for their needs and we’re ready to do it for our business too.
Why Choose Us?
Shaw Merchant Group has been the preferred partner of hundreds of clients for many years. Here is why they continue to come back to us time and again for their merchant services needs.
Experience
When it comes to experience, we are unmatched in the industry. We have years of experience facilitating credit card payments for our clients and guiding them through the complicated world of merchant services. If you are looking for a partner that can not only serve in a business sense, but also be a knowledge center for your business to guide you through the services you need, then we are the right choice for you.
Product Suite
In our years of experience we have also, several times, expanded our products and services offerings to make it easier for your business to get the services that it needs to thrive and succeed. We offer an expansive product suite that is scalable and customizable to address any need that your business might have when it comes to merchant services. Explore our products and services today to learn more about how we can help you.
Customer Service
At Shaw Merchant Group, we will always prioritize customer service. It is one of the most important pillars of our business and the main reason that so many of our clients come back to see us time and again. When you work with Shaw Merchant Group, you’ll be gaining the benefit of a teammate on your side to help address any issue that might arise.
Affordability
With some of the most affordable and competitive rates in the industry, we are the right partner for any business on a budget. We'll help you simultaneously expand your business and reduce your processing costs to give you a distinct edge over your competition. Work with us to discover the benefits of affordable, fast, and reliable processing and what they can do for your business.
ISO vs Sales Agent
In this industry, you will often hear the words “merchant services agents,” “Member Service Providers,” and “Independent Sales Organizations” used in a similar context, as if all three of these things are the same. The truth is that these terms actually refer to distinct roles in the credit card processing business. If this seems confusing to you, don't worry; all of these terms will be explained in this article, as well as their relationships to the credit card associations. We will also go over how you might go about becoming a merchant services ISO or an MSP.
After we've sorted all of that out, we'll go over what the advantages and disadvantages are of working in the industry as each of these roles. Getting an idea ahead of time of what each of these entails will hopefully save you from making a lot of mistakes early on in your business ventures.
What Every Term Means - First of all, let's get everything perfectly clear by defining the terms that we've mentioned so far:
ISO (Independent Sales Organization) – This is basically the ISO credit card processor, the company that serves as the middle man between the credit card companies and the merchant. It will often provide terminals to the merchants, as well as tech support, training, and customer service. Another common term for this is “merchant service company.”
MSP (Member Service Provider) – ISO is a term often used by Visa, and so MSP is basically MasterCard's version of this. They both mean roughly the same thing. However, to make things a little more obscure, MasterCard also uses the term ISO, but it means something different. Basically, in their case, an ISO offers services that are not processing and transaction services, like customer service and lead generation. For our purposes, though, don't worry too much about these subtle distinctions. They are basically the same thing. For the sake of simplicity, let's just assume that we're including MSPs when we use the term “ISO” from now on.
Sales Agent – This role is completely different from the above mentioned roles. A merchant services agent is a third party that sells the services of merchant services ISOs and MSPs. Since merchant services companies often like to concentrate on processing credit cards and offering POS solutions, they will contract sales agents to find merchants to work with. A sales agent doesn't have to pay the high association fees like an merchant services ISO does, but he can't do business in his own name and have a merchant services ISO program with an ISO or MSP company.
What is the Relationship Between an ISO / MSP / Sales Agent and the Processing Banks? - You probably realize that merchant services ISOs are not banks, and that these organizations need banks to ultimately perform the transactions. Every merchant services ISO will need a sponsoring bank, one who is a member of Visa and MasterCard's respective associations. In practice, these banks will usually not take on small merchant service companies, and actually most merchant services ISOs use larger ISOs as intermediaries between them and the banks....... Read More
TOP RATED: Best Merchant Services ISO Agent Sales Partner Programs
If you've done any research at all, you've probably already realized that getting into credit card processing sales field can be extremely profitable. Just about every serious business needs a merchant account, so the number of prospects that you could work with are countless and the market is ever-expanding as the economy recovers.
You might also realize, though, that starting an ISO or a credit card processing company yourself can be expensive, but luckily this is not your only option when you're looking to break into this field. One of the best ways to get into the credit card processing sales industry is to start your merchant service career out as a sales agent. The upfront costs are minimal, and you can learn the business inside and out with a lot of room for growth. It's one of those coveted sales positions where you not only get commission at the time of the sale, but you usually receive residuals for the life of the account.
The key to success as a merchant services agent is choosing the right partner company to work with—this is an ISO whose products and services you will be offering to merchants. Since finding the right sales agent program is so imperative to your future, take your time to consider who will be the best fit for you.
How to Become a Registered Merchant Services ISO/MSP
If you’re looking to make a name for yourself in the merchant services industry, then you have probably, at one point or another, considered how to become a registered ISO. In the merchant services industry, becoming a merchant services ISO is one of the highest levels that you can achieve. Becoming an ISO is a highly desirable position to be in because it opens up your earnings to an entire new world of potential. You’ll gain access to more revenue streams and you will also be able to market your services under your own unique brand instead of having to operate under the umbrella of another company.
However, the process of how to become a registered ISO/MSP is not one that happens overnight. When you become an ISO merchant services, it requires that you have a large budget for paperwork, legal, and administrative expenses. You will need a considerable amount of resources to become an ISO for merchant services in a timely manner and have success in the transition process. This short guide will show you the steps that you will need to take if you want to become a registered ISO and enjoy the benefits that the status has to offer.
Steps to becoming an ISO
Pick Your Business Name
The first step in the process is picking your business name. Though it seems like an arbitrary thing, you should take great care in selecting your name since it could play a large part in your branding and marketing efforts.
Pick A Business Type
Once you have a name picked out, the next thing that you will need to decide is which business type you want to register as. This decision will vary based on your situation and who you are going into business with.
Register With Your State
Next, you will need to register your ISO merchant services business with your state. It is important that you make it known to your state that you have registered as a business so that you can legally be identified by the right business name.
Get Your Permits
Without the right permits, you won’t legally be allowed to conduct any business. Be sure to not neglect this very important step. Consult your local relevant governing bodies as well as your state and federal guidelines, as well. Get your business permits and any other permits that you need to operate a business in your area.
Register With Relevant Tax Agencies
If you are going to operate a merchant services ISO, then you need to ensure that you are compliant with all tax regulations as well. Be sure to register with the relevant tax agencies to make your business known and compliant.
Find A Sponsor
The next thing you will have to do is find a ISO sponsorship that you will operate under. Though you will retain your own name, the sponsor that you select will be providing the merchant services that you sell to your clients. Finding a good one is very important to the success of your business.
Sell Your Services
Once you have finalized things with your sponsor and completed every other step of becoming a registered merchant services ISO, you are ready to sell your services. You can bring other agents on board and start expanding your lines of revenue with a lucrative merchant services ISO program business model.
How to Make HUGE Income Selling Merchant Processing Services
Do you want to become a merchant services agent but don’t know how to make a massive income selling credit card processing? Well, don’t fret, we will help you not only choose the best career in the merchant services field, but we will also help you understand how you can truly help your merchants save tons of money in fees while doubling your own income. If you are excited to know all of this then we suggest that you stick to this guide till the end: +
Which Career to Go For?
When you are selling merchant services, there are different models that you can choose from. You can go for the typical model of trying to reduce the fee paid by merchants in credit card processing. Or, you can also try to eliminate this fee, yes you read it right, you can make it vanish. The latter one is a more attractive career option as there are more chances of earning a decent amount. Most of the agents selling credit card processing will be trying their level best to reduce the fees that businesses pay for each transaction. However, if you come with your zero-fee solution, then who wouldn’t get your services? Every business likes to make as much profit as it can, which is why you will have a better chance of converting the merchants. Besides the merchants, you will be making way more money than you would’ve made when trying to reduce the merchant’s fee. Now you might be thinking, what is this zero-fee merchant services reseller program? Well, why not we explain it to you in detail and show you how it can increase your income...... Read More
Accept Crypto Payments : Bitcoin Merchant Account Services
The cryptocurrency industry is booming, with over 1.1 million transactions per day through Ethereum alone. And even though most retailers are still wary of accepting bitcoin payments, the list of companies that accept cryptocurrency payments is growing continuously.
As more and more online and offline brands start accepting cryptocurrency payments, the number of people willing to use it increases as well. You can, too, start receiving crypto payments from clients around the globe. But first, you should know how it works, the potential benefits and drawbacks, and how you can start accepting bitcoin and altcoin payments on your website and physical store. Let's discuss all of that and more below.
It's exactly what it sounds like; using cryptocurrency to make payments for services and goods. However, it should be noted that crypto has not yet become a legal currency anywhere around the globe except El Salvador, which only accepts bitcoin payments. Nevertheless, you can trade crypto in most countries as if you're trading a property.
You can trade Bitcoin, Ethereum, Litecoin, Ripple, Dash, Monero, etc., on exchanges like Coinbase, Kraken, Bitfinex, Coinmama, and Binance, etc. Still, many online and offline merchants accept cryptocurrency payments, including AT&T, Microsoft, KFC, Starbucks, Namecheap, Whole Foods, NewEgg, and so on.
Since cryptocurrencies are typically designed for easy peer-to-peer transactions, receiving cryptocurrency payments is as straightforward as sending coins from one wallet to another. The customer can use their phones to scan the QR code or copy the hash code of the merchant's wallet and make a transfer without involving any intermediary......... Read More
Merchant Services Partner Program : Payment Processing Partnerships
Do you want to become a merchant services agent but don’t know which program to join? Well, then we can help you find one. We understand that you will have various questions in your mind, like do I really need to work with the best merchant services partner program? Or, what are the benefits that a good merchant services partnerships program can offer?
We will answer all of these queries and will also suggest the leading merchant services reseller program so you can kick start your career and make a decent income. With that said, let’s get started:
Yes, it is extremely crucial that you have the top merchant services reseller program working with you. There are many logical arguments that we can make here but to keep things short...... Keep Reading
Steps to Become a Registered ISO for Selling Payment Processing Services
Merchant services is a very lucrative and flourishing industry with many possibilities, making it one of the most attractive industries to be in right now. One of the best ways to get in on the fun is to become a registered ISO. Becoming a registered ISO means that you will be authorized to work with a provider of merchant processing services to provide your merchants with the services that they need to effectively and efficiently process payments. If you want to become a registered ISO with North American Bancard, then there are certain steps that you will have to take to make it happen. Here are the various parts of the process that you’ll have to go through if you’re ready to start an engaging, rewarding, and lucrative career.
Benefits of Becoming a Registered ISO
When you are a registered ISO, you’ll be able to gain access to better rates and have sub-agents that earn income for you. Being a registered ISO allows you to expand your network and grow bigger as you attempt to accommodate more merchant partners. As opposed to being a traditional agent, being an ISO is truly the next step in the merchant processing career and a great way to expand your income and your reach.
Steps to Become a Registered ISO/MSP
Becoming an registered ISO can be a very lucrative business and it deals with finance at a high level. Because of this, it is also a very tough industry to crack into and a lengthy and expensive process to gain approval. ISOs must be very trustworthy and legitimate organizations, which is why exhaustive measures are used to verify various aspects of the business and personal information of those that own ISOs. These are the in-detail steps of how to become a registered ISO for North American Bancard.
1) Finding a Partner
The first step of your journey to becoming a registered ISO is finding a partner. Finding a good parent company to have your ISO operate under is a crucial aspect for a number of reasons. Good companies include those that have a positive reputation, give you access to a suite of tools to increase sales, and always pay on time.
When you are finding a partner, there are a number of ways to identify a suitable partner for which to team up with. You should read reviews and talk with other ISOs to get an idea of how the relationship between a processing company and their ISOs is in terms of health, communication, and payments. You can learn a lot of information simply by poking around and asking about others' experiences with them.
If you ask about North American Bancard, you are very likely to hear good things. North American Bancard has long been the gold standard in merchant services and we have been providing our ISOs with quality service, superior support, and better-than-average payment times for years. If you are looking for a company that you can trust to partner with and register as an ISO, then North American Bancard is one of the best decisions that you can make.
2) Application Process
The next step in your process of becoming a registered ISO for one of the most reputable merchant services providers in the world is to do your application. The application is a very important part of this process and as such, much attention should be paid to it. During the application, you will be asked a series of questions that are designed to test your suitability for being a registered ISO. If filled out correctly, you should be able to have a successful ISO application process.
One thing that you should be aware of when filling out the application to become an ISO is that it is a very lengthy and very expensive process. Your financials will need to be investigated and you will likely need to hire a legal team to guide you through the paperwork and process. Be prepared for this.
3) Compliance
If you are approved for your ISO application, then the next step in your journey as an ISO is to remain compliant with all applicable regulations and rules so that you can stay a certified ISO with the right to work with North American Bancard. This industry is quite strict, so taking actions to ensure you remain compliant throughout your time as an ISO is essential. This means that you should keep a legal team on standby to help you with any issues that might arise.
Being an ISO is considered a privilege, especially when you are working with North American Bancard. With an ISO certification, you can spread your agency and ensure that you build a foundation of future earnings on a strong, compliant partnership with North American Bancard.
Why North American Bancard is always ISO of the Year
NAB believes in the American dream of opportunity for everybody. We believe in it because we live it daily. North American Bancard opened for business on day one the same way many entrepreneurial companies do - with just one employee and NO money coming in. Now, we have over 900 employees and process billions annually.
NAB has achieved success following the simple-focused mission of assisting businesses grow and prosper. Today, we have over thousands of happy merchants and ISO partners that can back up our commitment to that mission. By providing the best free equipment, industry-leading customer service and sales support, and the guaranteed best processing rates, we help our merchants grow because they have more cash to spend on their business-building needs. Our ISO partners benefit just as much. With unrivaled support, flexible compensation, and innovative, one-of-a-kind sales and management tools, our ISO partners have more money and time to spend on their own business-building projects. By providing every type of payment processing solution, we ensure our ISO partners have the ability to offer customized solutions to help drive both their and their merchants' success!..... Read More
How to Earn a Stable Income: Selling Merchant Processing Services
Do you want to pursue your career in merchant services sales? Then, you should read this article before considering a merchant services career. Merchant services is not only to help businesses with payment processing it goes beyond that. You should fully understand how it works. If you are going to work as a merchant services sales representative, you need to partner with a merchant services provider. There is no doubt that the merchant services sales job offers you plenty of advantages, but it is not the same for all. In a merchant services career, you can sell the services to the businesses over the phone and even in person, but you can’t afford any hasty switch. So, you need to learn first what part of the merchant service job is suitable for you. For instance, if you have decided to work in merchant processing sales, you have come to the right page. Here, you will learn how you can earn more, hone your skills, and have more security by choosing the right company for payment processing...............Continue Reading
Best Way to Generate Endless (Merchant) Credit Card Processing Leads
Do you want to get more credit card processing leads but don’t know the best ways to get started? You have come to the right page! To generate more leads, there is a simple formula for guaranteed success i.e., spends time and involves greater investment. But investing money can’t generate leads unless you don’t know how to invest it in marketing approaches. Let’s find out together how to get merchant services lead generation.
The Problem in Credit Card Processing Service Industry for Generating Sales
Some problems exist in setting the appointment and prospecting selling merchant services.
The credit card processing industry is overcalled, and merchants are swamped with calls for merchant services.
Secondly, it is sad but true that most salespersons who call trying to find potential client, do it poorly and waste the time of merchants.
Most of the sale scripts and sales pitches that are used in telemarketing are poor and almost similar to each other. They communicate poorly, or benefits options are so little for merchants.
Moreover, when the merchant recognizes the sales pitch is trying to ask him to switch to the new payment processing services; he loses interest and starts rejecting the merchant processing agent. Who wants to listen to the same old sales pitch again and again about your merchant services?............ Keep Reading
Credit Card Processing Sales Commission Structure: Merchant Services Residual Income
Are you going through different merchant services sales jobs and thinking if you can make enough money from selling merchant services to afford a luxurious life? Well, the answer to this depends on how much work you put in. Since you will be relying on the commission and monthly residual income you get for each sale, your earnings will directly be dependent on how much you sell.
However, we have created this guide to give you a general idea of how to calculate your earnings and the things to consider when looking at the residual income structures offered by the merchant services agent programs. That being said, let’s dive right in:
How Much Can I Earn Selling Merchant Processing?
The first question that comes to mind of everyone taking up the merchant services sales jobs is; how much will I earn? And that question is fair because you need to pay the bills and keep your belly full. So to know how much you can expect if you become a credit card processing agent, you need to know about the sources of your income.
In merchant processing sales jobs, you have two ways to earn the greenbacks, the first one is by selling merchant services to the merchant. The second one is by selling/leasing the equipment like POS terminals. Now the most lucrative between both is the former one because by getting the merchant onboard, you will be getting residual income for as long as he is using your credit card processing company.
The second one is also not bad if you can manage to lease out or sell a couple of machines per month. You can combine both to increase your revenue as well, but since residual income is the most practical and long term earning approach, we will focus on it for this guide........ Keep Reading
Payment Processing Sales Training
Do you want to become a merchant services agent, and you are wondering where to start? You might be convinced that this is what you want to do. It is true that payment processing is a highly lucrative industry, and this makes it attractive. Becoming a successful merchant services agent is not easy because you will need some training to learn how to do this successfully.
The earning potential of a merchant services agent is incredibly high, but to get there, you will need to take steady steps towards attaining success. One of the steps is to seek merchant services sales training. Merchant services have some key pillars that you need to be aware of in order to be successful.
The following are the crucial credit card processing sales training structure that will increase your chances of becoming successful in the merchant services industry.
Learn Quality Partnership
This is one of the most critical concepts that you need to be familiar with while pursuing merchant services sales training. As a merchant services agent, you will need to partner with a merchant services provider. Your partnership needs to be solid in order to facilitate success. We can say that the merchant services provider will be the epicenter of your business.
The provider you partner with should be able to offer reliable payment processing services to your merchants without failing. They should also be able to offer the additional perks and tools that you need in the merchant services business.
Some key things that you are going to learn in the quality partnership training are the ability for the merchant services provider to offer good payment structure, offer prompt payments, good communication & support, the handsome share of profit, regular bonuses and modern and technological tools to help you succeed in your business.
A good merchant services provider you chose should be able to provide all these. You will be closer to your success and business goals if you are careful in selecting a quality ISO partnership. A good merchant provider will help you enjoy great profits as well as passive income from your merchant services business.
Pricing Structure
Another key thing to learn in merchant services training is the pricing structure. In addition to being able to make sales and getting new leads now and then, you will want to be sure of the right way to price your products and services. To have meaningful success in the merchant services business, you need to take your time and optimize your pricing.
A good pricing structure will enable you to have the appropriate profit margin. This will help you to keep on running a sustainable merchant services business. With the right pricing structure, you will be able to raise your income as you grow.
Learning about the pricing structure will help you to do things such as offering discounts, upselling, and many more. For now, the pricing structure may not seem to make a notable difference in your business, but as you start to accumulate hundreds and thousands of transactions, you will note the impact. It is, therefore, critical to fully understand the pricing structure in the merchant services sales business.
In Merchant Services, More Options Are the Best
In training to become a merchant services agent, you need to understand that a good merchant services provider should offer as many options as possible. There should not be limits to the payment processing options your merchant services provider is offering.
This is because if sometimes your customers happen to require something, you should be able to get it from your merchant services provider. On the other hand, if there are limits to options they can provide, then you might end up disappointing your customers.
As a good merchant service agent, you should lookout for a provider who allows access to a wide range of options, such as in payment processing. They should offer credit cards, debit cards, cash, ACH, and more payment processing options. If your provider gives you these options, you can offer them to your customers, and this makes them happy.
Several options mean that you will have the flexibility, and you will be able to offer solutions to your customers without running out of options. This is a win-win situation.
Customer Service
This is an important lesson to learn in merchant services sales training. The customer is the most important player in your merchant services business, and therefore they should be your highest priority all the time. As a payment processing agent, you should strive to keep your customers happy, and if you fail to do so, you will have a very hard time. It might even become very difficult to succeed in your business.
You should, therefore, brace yourself for customer service lessons in payment processing sales training. Customer services training will help you master the techniques that successful salespeople use in order to close more sales. They are always keen on the customer's needs and devise ways to fulfill these needs.
You should be able to attend to your customer’s queries in the shortest time possible. It is also critical to realize that when it comes to customer services, your merchant services provider will also play a key role. This gets us back to the previous point of choosing the right partner. If something happens that is beyond your control, you should be able to reach out to your provider for an effective and speedy solution.
Free Terminal for Your Merchants
For success in the merchant services business, the secret is to have a free terminal included. Merchant love bonuses in their payment processing packages. Note that you will be offering a POS which is designed to increase efficiency in payment processing. The terminal you provide should offer exceptional user experience for the satisfaction of your merchants.
For a strong bond between you and your merchants, you should be providing incentives. This will make them feel that they have the right agent by their side. For increased conversion rates, it is highly recommended that you offer a free POS terminal to your merchants.
You want to be a successful merchant services agent, right? The above learning concepts are the key to success in the payment processing business. Therefore you should ensure that you fully understand these in merchant services sales training.
Pros and Cons of Selling Merchant Processing Services
All around the world, there are thousands of businesses that use vital services that are referred to as merchant services. These are services such as payment processing, which is what allows businesses to accept and process payments so that they can make a profit on their product. Without these services, businesses would be unable to function in the modern world. You might think that the fact that these services are an absolute necessity to these businesses make them an easy target for selling, but that is now always the case. There are definitely some positives as well as some negatives when selling merchant services.
This guide will show you some of each and hopefully give you some insight as to whether a career selling merchant services is right for you.
Pros:
Undoubtedly, there are some very positive aspects of selling merchant services for a living. If you have had a sales job that is similar in the past, you already have known some of these benefits. Here are some of the best things about selling merchant services.
There is always a market
One of the best things about working in the merchant services industry is that there is never a lack of demand for these services. There are always new businesses sprouting up as people chase their passion for owning their own business. And existing businesses are always evaluating their options and ensuring that they are getting the best deal on the market. For that reason, you won’t ever have to worry about the industry as a whole drying up. People will always need to spend digital money and businesses will always need to find a way to accept it.
Set your schedule
For many that are in a commission-based sales job, one of the greatest benefits of it is being able to get to the point where you are working when you want to work instead of punching a time clock when you get to work. When you are a partner in a merchant services sales program, you will be able to set your appointments on a schedule that works well for you.
Build passive income
Finding and signing clients to lucrative merchant processing contracts is hard work, nobody denies that. However, all of the hard work that you put into this process could end up paying out tenfold throughout the years. One of the greatest things about being a merchant services salesperson is that your accounts can earn you passive and residual income long after you have closed them to a contract. This could help you build passive income for years to come and eventually phase out the bulk of the labor that is involved in this career.
High commission rates
When you compare merchant services to other industries out there, you will find that it has a very competitive and comparatively high commission rate compared to those other industries. The high price of the contracts and the fact that they continue to pay out for years to come is what makes these sales so valuable and why some of the best salespeople in the world turn to merchant services when they want to increase their earning potential.
Cons:
Just as there are many pros to selling merchant services, there are also some aspects that could prove difficult. You should watch out for these aspects and consider whether they are something that you are able to overcome and overlook.
Highly competitive industry
There is always a lot of demand for merchant services, but this fact also means that there is a lot of competition. One of the hardest aspects of selling merchant services is that you will always have competition breathing down your neck, waiting to provide your client with a better rate. This is really where your ability to create and nurture relationships will come in handy with client retention. This industry is not for those that don’t like competition and healthy capitalist tendencies.
Dependent on success to make money
When you are a merchant services representative in any industry, you know that your ability to make money is heavily dependent on the success that you have when selling your product or service. It’s no different in selling merchant accounts. If you want to have a good income, then you will need to become skilled at selling these products. If you don’t feel confident that you can do that, then it might not be the right choice for you.
10 Tips for Selling Payment Processing Services
Credit card processing and financial services are some of the most essential services that any business will purchase. Without these services, a business is not able to function. In theory, it should be easy to sell any business on the idea that they need a merchant processing account. Unfortunately, there are so many options on the market today that gaining the business of a company looking for these services has become highly competitive. To help you know how to sell these accounts to local businesses and provide them with processing solutions that meet their needs, this list of 10 tips for selling merchant accounts will give you some proven steps to closing more contracts and building your network of clients.
Include Yourself in the Pitch
When you are selling merchant accounts to businesses, the personality and character of you as the salesperson is every bit as important as the functionality and efficiency of the product that you are selling. If you want to have success with selling merchant accounts to your business clients, then they need to see that you are a trustworthy, knowledgeable person that they can get along with and feel comfortable talking to when they have questions and concerns. If you learn to sell yourself as the rep at the same time that you sell the product, you will have increased chances of creating a level of comfortably and trust.
Respect Your Margin
When you are trying to sell services to businesses, you might be tempted to slash prices to increase your chances of closing a deal with your prospective client. However, data suggests that this is not always the best way to do things. Yes, a lower price or processing rate might be more attractive to businesses on a budget, but you won't have long-term success as a rep if you constantly give your profit margin away. Instead, it is better to provide value to them in other ways like offering your knowledge and being a good merchant services partnership.
Always Follow Up
In the world of business, things are constantly changing. When you are in negotiations to provide any business with merchant payment processing services, it is very important that you never forget to follow up with them following an in-person or online meeting. If they see other services around, they will undoubtedly get curious and you may lose a sale all because you failed to be present at the time they wanted to make a decision. A merchant services sales rep that wants to be successful is one that will follow up in a timely manner to ensure the client’s needs are met right away.
Always be Exploring New Leads
In a challenging field like merchant services sales, it is important to ensure that your pipeline of prospective new clients is always flowing. You want to bring in the consistent commissions, so attacking new merchant account leads and always ensuring that the stock of your leads is fresh is of paramount importance. You shouldn’t be afraid to look into any industry or corner of the business world to find your clients and it’s always a good idea to be innovative when figuring out how to attract clients.
Big Merchant Accounts are Key
You always want a steady flow of sales from all sizes of businesses, but what will really set you apart from others and increase your earnings potential is the closing of contracts with big merchants. Larger merchants have more to spend and invest in their payment processing infrastructure and they will offer you more potential sales and even recurring sales if they continue to grow. These contracts are what will keep you afloat in hard times and push your commissions to new limits. Emphasize robust technology and good support No IT system, payment processor, or any other software is going to work 100% of the time without ever having a flaw. However, if you want to really reel in the clients, you should focus on the tech of the payment processing solution that you are offering. It’s unreasonable to expect that there will never be a technical issue, but what businesses really want is to know that this will rarely be an issue. When payment processors go down, it costs the merchant money. Make sure that they know that this is very unlikely to happen.
Establish your credibility
Since you are in merchant services sales, you know that not many people look favorably at those that sell merchant services. If you want to have success in this business, always put your best foot forward and make sure that the businesses know that you want to help them succeed. When they have questions, be polite and address them completely. Make sure that they know that you are not just in it for a paycheck, but because you truly have a service that can improve their business.
Fees are Expendable
If you have a customer that is on the hook and you want to close the deal, you might be tempted to reduce the rate that you are offering to the client. However, this path only leads down the way to reduced profits and margin. If you truly want to maintain your residual income, it is better to waive one-time fees and other single charges in an attempt to convince your prospective buyer.
Be upfront and honest
Business owners, more than perhaps any other segment of the population, are very wary about signing contracts. If you have a good product and have a fair contract, then it should be your priority to be upfront and honest with your clients about the contract that they are signing. Sitting down and going through the merchant services contract with them will establish trust and credibility with your merchant and ensure that they trust you enough to do business with you.
Education is priority
Having a good product and being a good merchant service agent is one thing, but to be an industry expert and get the most out of your career, you need to make your education a priority. Your education as an industry professional is paramount because it will help you to understand the current, modern needs of the sector that you are serving and guide your clients with an expert hand towards the best merchant solutions and implementations with your product. Stay on top of industry news and developments if you want to have success in selling merchant processing technology.
Running a liquor store can be complicated, with all the licensing requirements and other red tape that you frequently have to deal with. You know what doesn't have to be complicated, though? Your liquor store POS system. There's no reason to make life more annoying when nowadays there are retail point of sale systems that can track your sales, track your inventory, and handle all of your cashless transactions for very small monthly fees and often no upfront costs for the hardware. Many of these systems also mirror your data on the cloud, so that you can access all of your records remotely without a hitch. Imagine being able to print receipts anywhere or examine your sales numbers while you're sitting on the beach somewhere and your business is trucking along without you.
Now, you may be thinking to yourself: “There are so many choices. Which POS is best for my liquor store?” If you're just starting out or even just looking to reorganize, you can't really go wrong with the PayAnywhere Smart POS+. This is a POS with many features that work well for liquor stores, and in fact this company offers software that specifically caters to a variety of niche businesses, including wine and spirits. Let's take a look at some of the major benefits:
Tracking and Analytics
You need to keep track of what's going on in your business, or else you will never see the sort of margins that you are looking for. Selling spirits can be a very competitive business, so you always want to be checking up on what sells best in order to increase your ROI. The PayAnywhere Smart POS+ allows you to remotely access all of your information, so even if you have to go away for awhile, you can keep on top of the numbers. Another problem that you may face while running a liquor store is keeping track of all of the inventory. There are many different brands and varieties that you will have to keep an eye on, and this is hard to do manually. By letting a POS handle this, you will be able to know ahead of time when you are running out of key inventory so that you don't have to miss out on valuable sales. In addition, this allows you to keep an eye on what is flying off the shelves more quickly, so you can concentrate on your bestsellers more.
Customization
Every business has different needs, and liquor stores will vary by local tastes and regulation. You need to be able to customize the interface of your POS to suit your needs, and this is one of the places where the PayAnywhere Smart POS+ really shines. You can switch things around very easily and intuitively so that you or your employees can always find what you are looking for. For example, if you want to save time, you can choose to display your best-selling products prominently on the interface. The PayAntyhere Smart POS+ will cater to your specific needs, and they have many different software packages to offer that will make your POS's interface suit your business better. You can choose their custom liquor store software and this will make things a lot easier for you.
Hardware
The PayAnywhere Smart POS+ really delivers when it comes to hardware, since the processor used in this system is blazing fast. Don't make your customers wait more than they have to; get a POS that will work its magic not only quickly, but reliably. You don't want slow-downs and break-downs to throw a wrench into your business and frustrate the people who are keeping it alive. In addition, the all-in-one POS system is a real winner when it comes to storage capacity. Though all of your data is backed up on the cloud, you can expect to be able to hold tons of records locally, so you will always have access to the information that you need, even if your Internet decides to cut out.
Support
Shaw Merchant Group is known for their 24/7 support, and they are a very attentive company to work with. You don't have to worry about being left with a mess should anything go wrong—and things will occasionally go wrong whenever you are running a business. They guarantee their products as well, and will replace them if they ever break; it's nice to not have to come out of pocket for a hardware failure or a similar issue.
As you can see, the PayAnywhere PAX E700 Smart POS+ is a top-of-the-line credit card processing machine. It is Shaw Merchant Group's best free point of sale system and can be customized to suit a number of different business styles, while still having extremely powerful hardware that will help you ring up your orders as fast as your employees can take them.
Now, maybe you're not ready for the “big leagues” yet, and are looking for something a little less fancy for your small business. This is totally understandable, and it's why Shaw Merchant Group offers the PayAnywhere Smart POS+, a POS system that is perfect for those who need something bare-bones, but still powerful. Best of all, the analytics are still there, the support is still there, and you can customize the interface of your POS as well. It's also available for a very small monthly fee, so you don't have to worry about upfront costs cutting into your early profits, and you can reinvest all of those savings right back into your business. You can always upgrade to the Custom POS System later if you find that you've outgrown the PayAnywhere Smart POS+.
There are a lot of things to consider when getting a point of sale system for a liquor store, but the PayAnywhere Smart POS+ is a great choice, if for no other reason than its liquor-store specific software package. It doesn't hurt that the hardware is top-notch and that the support is constant, too. When you're looking for a POS, you want something that's not going to add needless complication, but which will instead simplify your business and make it easier to keep track of your affairs. Regardless of what stage your business is in, Shaw Merchant Group has a convience store point of sale system that will probably fit your needs.
For a lot of people, being self-employed is their ultimate dream. They'd love to throw off the shackles of the office and travel around serving people who share their passion for whatever it is that they're selling. Of course, it helps if what you are selling is part of a booming business, and the food industry is certainly growing. While other markets contracted during recent recessions, both the restaurant and the food truck business have seen a rise in sales, and the need for a food truck point of sale system, as people have become more and more interested in convenience. This is a great time to be in the business of food trucks!
So, chances are, if you've just started a food truck business, the sales have been rolling in more or less steadily. Hungry customers are flocking around your mobile restaurant, eager to sample your dishes in the middle of whichever random parking lot you're serving today. You hand them the food, and they hand you cold, hard wads of cash in return...except when they don't.
“Oh, I'm sorry,” says one of your customers, her tone apologetic, if a bit nasally. “Do you take cards?”
That is the question, isn't it? Well, do you? Nowadays, cashless is the way, and if you're only relying on the old locked metal cash box with a couple of rolls of coins thrown in, you're probably missing out on a lot of potential sales. Yes, you can just get an old school stand-alone credit card machine and try to keep track of a million sheets of receipt paper (“Merchant's Copy!”) like they did back in the days when people need to swipe their little magnetic strips—but things are a lot different now, and in the complicated society that we live in, you're going to want a point of sale system to keep track of sales—both cash and electronic—and to give you some idea of what kind of inventory you used up. The more volume you expect to sell, the more urgent it is to have a POS.
Now, maybe all of the dirty specifics are what have you procrastinating and leaving that old school “cash only” sign outside your window. Maybe you're just confused. Maybe you don't know which food truck POS system to choose for your business. Luckily for you, we're about to clarify things a little; let's take a look at the best POS systems, what they can do, and whether they might work for your business:
Square
This is the most bare-bones, simple solution if you're looking for the function of a POS without having to learn a complicated interface or pay a huge monthly fee. In fact, Square does not charge a monthly fee at all, and instead takes a small percentage of your revenue. It requires minimal hardware as well, and all you need is a small peripheral that you attach to your smart phone, and from there you can use the Square app to take people's credit card payments. This simplicity and low upfront cost is probably why Square is so popular with people who sell food out of trucks or carts. It requires hardly any capital at all to get started.
Though it is an excellent payment processor that is very inexpensive for those who are just starting, keep in mind that it is extremely basic on the POS side of things. It will calculate tax and other factors, keep track of sales, and offer a few nice stats to look at here and there, it is not as extensive as other systems. If you want something more complex and feature-rich, you may want to look elsewhere.
Revel
If you're looking for something that offers better analytics and that can be used to track your inventory as well, you might want to look into Revel. Built specifically with the restaurant business in mind, it won't cost you too much to set it up for a single terminal, and it has a lot of features that other POS systems don't have. For example, it integrates with social media and can be set up to notify your followers of where you are so that they can come find you. In addition, it's a very flexible kind of software that doesn't require any sort of proprietary equipment to use; most kinds of cash registers will do just fine. It may not be the cheapest POS system around, but it is a very high quality choice with a lot of extras.
ShopKeep
If you're looking for value, ShopKeep has it. It's not as cheap as Square, but for the amount of functionality it offers as a fully-functioning POS, you can't really find anything on the market that will beat it. It has everything: The ability to modify tax rates depending on where you are, the ability to print and edit receipts, the ability to create gift cards, among many other features. You can also use it to track your inventory, as you can with Revel, and much of your information is stored on the company's own servers, so you don't need to be tied to a specific machine to view your stats. They're a bit more picky about hardware than Revel, but luckily it can easily integrate with iOS, so that may not actually end up being a problem for you.
Another nice feature of ShopKeep is that it doesn't require you to be constantly connected to the Internet, which is great during those times when you're either far away from WiFi or when your 4G Internet cuts out. Once you are connected again, it simply syncs as you would expect.
Now that you have a basic understanding of three of the most popular POS systems for food trucks, hopefully you can move forward and make an informed decision about what sort of set up is right for you. Sometimes it's best to start small and work your way into a more complex system, but of course this depends on what your goals are as well. Good luck!
Are you a merchant sales agent or an Indendent Sales Organization that’s looking to make it to the big leagues of the merchant industry; the payment gateway providers? Well, it might require some serious investment to set up a complete infrastructure that can even break your bank. However, there’s an alternative - white label merchant services.
It’s a low investment, low-risk solution allowing you to set up your own payment gateway without having to manage any technical aspects of the payment gateway. Curious? Read on to know more about a regular payment gateway, how a white label payment gateway is different and what main advantages it can offer you.
What’s A Regular Payment Gateway?
Let’s Discuss What Payment Gateways Do:
Before we move towards the payment gateways for white label merchant services, let’s talk about the regular ones to ensure everyone reading this is on the same page. Payment gateways are crucial for every business for credit card transaction processing. When the card is swiped against the machine, the payment is cut and sent through the payment ‘gateway’ to the processor for authorization. This additional gateway ensures the security of customer’s data and the authenticity of their transaction.
Once it’s cleared, the information of the transaction is added to the credit card networks and sent to the bank that issued the card to the user (customer). If everything is correct and there’s a balance available to be charged, the transaction is approved; otherwise, due to any reason, it can get declined.
How Payment Gateways Do What They Do?
Payment gateways equip the merchants with interfaces and tools to collect the information for credit card transactions from the customers. This can be done in several ways. Most of the gateways offer APIs (Application Programming Interface) that enable the websites, business software, mobile applications, and POS (point of sale) device to connect and send transactions right to the payment gateway for authorization.
They also offer virtual terminal abilities allowing credit card info to be input directly in a webpage form, which can then be submitted for a transaction.
You can also find a range of value-added functions in payment gateways allowing merchants to easily manage their business and transactions. These added features can be fraud detection, recurring billing, tokenization, PCI compliance, and more.
Merchant Acquirers & Payment Gateways:
Merchant acquirers and ISOs (Independent Sales Organizations) act as agents/salesperson of the payment gateways by reselling their services to the merchants. ISOs or merchant acquirers employ a team of salespeople and support agents to connect with merchants, nurture them and eventually sell them the payment gateway’s services and equipment like POS machines.
Since it doesn’t really make sense for the merchant acquirers to build and manage their own gateways, they mostly partner with existing payment gateway service providers and get a small chunk of the pie. However, there’s an alternative, providing ISOs or merchant acquirers with opportunities to set up and differentiate their own payment gateway brands. This is where White Label Payment Gateway comes into play.
With the help of a white label payment gateway, you can get similar features and functions and perform the same duties as a payment gateway provider. However, there are many distinctions and benefit with the white label service. While the regular gateways get into contracts with the ISOs and merchant acquirers to resell their services, white label gateways allow and also prefer the ISOs and merchant acquirers to sell their services as their own with their own branding.
The merchant resellers and ISOs have the liberty to use their logo, play with the branding and color scheme to match it with their own, and service the customers however they see fit.
If you become the payment gateway provider rather than reselling someone else’s, you’ll have several unique opportunities at hand. As the white label payment facilitator, you can set your own profit margins and actively get your share of the revenue stream. This also means you will have the freedom to set up your very own brand, market it and get visibility rather than living under someone else’s shadow. You will have control over customer experience, and how you want to service them, which means direct customer acquisition.
Here are some more benefits that you experience when you become a white label service provider:
- You will not have to set up or manage the service by yourself. All the heavy lifting and technical aspects like infrastructure and security compliance will be taken care of for you.
- You will get access to the shopping cart integrations processor connections of the platform, enabling you to offer solutions to a wider merchant group and take care of their needs.
- You will get total control over the customer relations, meaning you will establish the rules for how your gateway equipment and products will be serviced and sold.
- Every effort put in by you and your team into the promotion of payment gateway technology will enhance the worth, reputation, and value of your brand.
- The use of a white-label payment gateway will solidify your relations with your merchants and put you in the position to meet their needs better.
First things first, you need to know if you have the kind of business that can benefit from the white label payment service provider. There are four kinds of resellers that will benefit from the white label model the most:
When opting for a white label payment service provider, work with someone having experience and a good track record of working with these business types.
To get the most value out of your while label gateway experience, it is imperative that you work with the provider offering exactly what you need so you can meet and exceed the needs of your merchants. To find that kind of service provider, here are a few questions you should ask:
- Will you get access to their support service, guides, and training materials?
- Do they have an intuitive payment gateway platform? You don’t want something that’s buggy and complex.
- Can you rely on their platform? It should have 99.99% uptime; once it goes down, your payments won’t be processed until it's back on.
- What about the security level of their platform? It should be encrypted with the latest and most impenetrable technologies.
- Does it sell its services to the merchants directly?
What Branding Can You Do on Your White Label Payment Gateway Products?
You will require a highly flexible platform that allows you to leverage your or your designer’s creativity and customize every aspect of the product/service. You would want to make the payment gateway your own in the truest sense of the word. Therefore, make sure to find out the branding options they have available that’ll allow you to brand payment gateway exactly the way you want. Here is a small list of some things you should be able to make your own:
- URL
- Color scheme
- Logo
- Marketing guarantee
- Font
- APIs
- Login portal
- Brochures
Make sure to ask about all of these features’ customizability, so you know what to expect from the white label payment service provider and if you want to go with them.
Types of Merchants to Have on Your Gateway:
If you’re wondering what kind of merchants I can put on my white-label payment gateway, then the answer is; anyone you want. However, not every provider agrees to this, so make sure to ask this beforehand. The payment gateway provider must be able to offer you the liberty to get anyone on board and do business with them.
Some Final Considerations:
You will also need to find out about the third-party integration options, SDKs, and API functionality of the payment gateway. Some more important things to consider are:
• Who will own the website’s domain name?
• Who is going to bill the merchant?
• Who will manage the SSL Certificates?
• What kind of shopping cart integrations will you get?
• How the customer support to merchants will be handled?
• What kind of merchants will you be able to provide a platform to?
Final Words:
Remember, the best white label merchant services will have incredibly useful features to help you crush the competition and get as many merchants on board as you can. This can only happen if you have the freedom to have any merchant you want and your platform is robust enough with tons of useful features that attract them.
Applying for a Merchant Account for Small Businesses
If you are a merchant, then you will undoubtedly need a merchant account. Merchant accounts are accounts that your business holds with a payment processor or merchant services provider that give you access to the critical tools that your business needs to succeed and accept payments. Without a merchant account, your business will be unable to complete the most important part of any transaction--the receipt of the funds for the goods or services that were rendered. If you want to get a merchant account for your business, then the first thing you need to know is how to apply for a merchant account and what is involved in the process of the application. This insight will give you the knowledge and information that you need to be successful in the merchant account application process and provide you with a competitive edge when applying for a merchant account.
Information needed for applying for a merchant account
If you’re hoping to have success in the merchant account application process, then one of the first things that you will need to know is about the requirements for applying and gaining approval for a merchant account. There are several pieces of information and documentation that you will need if you’re going to have success in your application. Providing these pieces of documentation and information will greatly increase your chances of being successful, but that’s not all that matters. You will also need to display several traits and factors that prove yourself to be a reliable and trustworthy merchant.
Here are the pieces of information that you will need when applying for a merchant account:
- At least 3 months of bank statements
- At least 3 months of processing statements, if applicable
- Valid identification
- EIN or SSN for the account
- A functioning website that has information about your business
Before you apply for a merchant account, you should be sure to have each of these pieces of information available and ready to send with your application. The absence of any of these pieces of information could prevent you from getting a merchant account or getting good rates if you are granted a merchant account. This could delay the process and make getting a merchant account take that much longer.
Getting approval for a merchant account: factors explained
When you are applying for a merchant account, one of the most important concepts that you should understand beforehand is that there are a variety of factors that go into your approval or rejection as a merchant for a merchant account. Being familiar with these factors can increase your chances of success when applying for a merchant account because it will enable you to optimize your application and make it much more attractive to the merchant services that you hope to work with. Here are some of the most important factors in getting approved for a merchant services account and why they are considered to be important.
Bank history
The bank history is one of the required pieces of information for your business if you hope to get a merchant services account. The merchant services provider that you apply with will ask for at least documentation of 3 months of bank history. The reason that merchant services providers ask for this information is pretty obvious--they want to ensure that your business is reputable and is in good standing with your bank. Without this verification, they might not be able to establish confidence that you are a trustworthy financial partner to work with. Merchant services companies want to verify that you are a legitimate business with a verifiably good relationship with your banking provider. By verifying this, they can guess that you will be a good partner to them, as well. Always provide the most comprehensive statement information that you can and be sure to not just provide the bare minimum, if possible. Applications will ask for at least 3 months, but if you are comfortable you should supply up to 6 months of statements.
Processing history
Another thing that will factor heavily into the decision that is made regarding your merchant services account status is the processing history documentation that you are able to provide. When you apply for a merchant processing account, the company that you apply with will very likely want to see at least 3 months of processing history. Again, the more information that you can provide, the better. Those that are able to provide up to 6 months of documentation will likely have more success. The reason that merchant services companies request this information is also clear--because they want to know that you will be a good partner to them in your merchant services and credit card processing relationship. Being involved with a company to provide credit card transactions is no small matter, and the companies that you work with want to protect themselves just as much as you do. When you provide this information, they will look into your past success, chargeback ratios, and any concerns that have arisen in your past relationships with processing companies.
It is possible that you are not able to provide this information, in the event that you are a new business. Still, you should answer as many questions as they have and provide them with answers to the questions that you are able to such as what your expected volume will be. Going the extra mile to provide this information could certainly be the difference between denial and acceptance for your merchant services account.
Credit score
When evaluating your application for a merchant services account, your merchant services partner will very likely want to see your credit score. This is a piece of information that you will likely not have to provide yourself, as many merchant services companies have a way to check this. Your business credit score will tell the underwriter, the person who approves and denies processing accounts, about your financial history and whether there are any red flags. If there are blips on your credit score, that doesn’t mean that you will not be eligible to get a merchant services account. However, it might mean that there are more hoops to jump through or that you don’t get as good of a processing rate that you were hoping for. The best way to handle a poor credit score as a business is to apply to a merchant services program that approves businesses that are in a similar situation and works with businesses to overcome challenges that they might have struggled with in the past.
Industry
Even though you might not have given much thought to it in the past, one of the most relevant factors in your approval or rejection for a merchant services account is the industry that your business is in. It is very important to consider the industry that your business is in because some businesses are at higher risk than others for chargebacks and fraud. If you are in a very normal and ordinary industry, then you probably don’t need to worry that much about the specifics. However, if you are in a high-risk industry that is known for chargebacks and fraud, then you likely want to start looking at ways to bolster your application and show that you can stand out above the rest as a merchant that will not cost the services provider money in the long run.
How long does it take to get approval for a merchant account?
One of the most common questions that is asked when applying for a merchant services account is how long the process takes. The answer is not so straightforward, as there are dozens of factors that go into the decision-making process of either approving or rejecting a merchant for a merchant account. If nothing goes wrong in the process and the underwriters don’t need any more information, then it’s possible that you receive an answer within 24-48 hours, when working with the right merchant account provider. However, this is not always the case. Oftentimes, your merchant account provider will require additional information including clarification on the business plan, more documentation, or just general questions about your business. You can help to reduce the amount of time that it takes to get approved by being upfront with all of the information that you will need for the application and having it on-hand for clarification if needed.
Be selective in who you choose for a provider
One thing that you should know if you want to get the most out of your merchant account is that merchant processing is a serious business. There is a lot of money at stake, and that is why merchant account providers are so selective in who they approve for a merchant services account. You should be equally as selective when choosing a provider. Make sure that you know what you are looking for in a merchant services provider because they are going to have a large impact on your business and what you are able to achieve with your merchant solutions.
For many merchants, credit card processing fees can be a source of confusion and frustration. The lack of transparency in traditional pricing models often leaves business owners in the dark about the true cost associated with credit card processing. Fee transparency is essential for merchants as it empowers them to make informed decisions about their payment processing partners. By better understanding the credit card fees they are paying, they can:
- Accurately Predict Expenses – By knowing the exact fees associated with credit card transactions, merchants can better forecast their financials and manage budgets.
- Compare Processors Effectively – When fees are clearly presented, it's easier for merchants to evaluate different payment processors and select the best fit for their business.
- Negotiate Better Deals – Armed with a comprehensive understanding of fees, merchants can negotiate more effectively with payment processors to secure lower rates.
Interchange-plus pricing is an option that can provide merchants with this much needed clarity to help them make smart business decisions. In this article, we’ll explore what interchange-plus pricing is, how it works, its advantages and disadvantages, and why it's essential to choose a credit card processor that prioritizes transparency.
How Does Interchange-Plus Pricing Work?
Interchange-plus pricing (also referred to as cost-plus or pass-through pricing) is a more transparent and cost-effective model for merchants who process credit card transactions. This pricing structure separates the fees into two distinct components – the interchange fee and the markup fee.
- Interchange Fee – The interchange fee is a percentage or fixed amount paid to the issuing bank or credit card company (such as Visa or Mastercard). These fees are highly variable and change depending on a variety of factors including the card brand, card type (credit or debit), whether the card is present during the transaction or not, payment security features, the merchant category code (or MCC), and if the card was run as a debit or credit card.
- Markup Fee – The markup fee is a percentage or fixed amount charged by the payment processor that the business hired to facilitate the transaction.
This approach allows merchants to understand and predict their overall expenses. It also provides a level of detail that helps merchants clearly see the individual fees for each transaction, making it easier to compare payment processors and understand processing costs. To see how interchange-plus pricing works, let’s look at an example of how this model works in the real world.
Example: Imagine you own a retail store and have a merchant account. A customer comes in and purchases items worth $150.00 (including tax). They pay with a Visa Signature Preferred Consumer credit card. The interchange cost for this card is 2.10% + $0.10, which amounts to $3.25 ($3.15 from the percentage fee and $0.10 from the fixed fee). Your merchant account provider passes this cost to you, and in addition, charges a markup of 0.30% + $0.15, or $0.60 ($0.45 from the percentage fee and $0.15 from the fixed fee). Your total cost for processing the credit card is $3.85, which is 2.57% of the transaction amount.
In this example, interchange fees make up 84.4% of your total processing cost, highlighting the significance of interchange fees in the overall expense associated with credit card transactions.
It’s important for businesses to be aware of some of the misleading practices that some processors use to sell this model. While many providers advertise interchange-plus pricing on their websites, their quotes often only list the percentage-based markup and the fixed authorization fee. As you can see in the example above, interchange fees usually make up the bulk of the total processing costs. Businesses should always validate that the quote provided by credit card processors includes both interchange and markup fees.
Another key point to understand is that interchange fees are set by credit card associations. Some salespeople with credit card processors will claim they can negotiate a discounted rate. This is untrue. Credit card processors have no control over these fees.
The Downsides of Interchange-Plus Pricing
No fee structure is perfect. While there are numerous advantages to using an interchange-plus model, there are some disadvantages depending on the size and type of business that you operate. It’s important to carefully consider the downsides of interchange-plus pricing to confirm if it is the right fit for your business.
- Complexity – The separation of interchange fees and markup fees can make the pricing model more challenging to understand initially, particularly for merchants accustomed to bundled or flat-rate pricing models.
- Variable Fees – Interchange fees can vary depending on the type of card and transaction, making it difficult for merchants to predict their exact costs upfront.
- Processor Markups – While markup fees are typically a fraction of the overall processing fee, processors can still impose high markups on transactions. Comparing quotes from multiple providers can help merchants identify processors who charge excessive fees.
- Requires Higher Volume – Smaller businesses with lower monthly transaction volumes may not benefit as much from interchange-plus pricing compared to other pricing models, as they could face higher markups.
How Interchange-Plus Pricing Compares to Other Pricing Models
The interchange-plus pricing model isn’t the only option available in the payment processing industry. In addition to interchange-plus pricing, there are three other options that are the most common including bundled, flat-rate, and subscription-based pricing. Here's a brief overview of each alternative pricing model.
Bundled Pricing
Bundled pricing (also known as tiered rate pricing) combines the interchange fee and markup fee into a single rate, often categorized into tiers (e.g., qualified, mid-qualified, and non-qualified). While this model simplifies the fee structure, it obscures the true costs associated with each transaction and makes it difficult for merchants to compare payment processors.
Example: Imagine you own a boutique and have a merchant account that uses bundled pricing. A customer comes in and buys clothing worth $200.00. They pay with a Visa Rewards Consumer credit card. Your merchant account provider charges a qualified rate of 1.70% + $0.25 for this card, resulting in a total processing fee of $3.65 ($3.40 from the percentage fee and $0.25 from the fixed fee). In this case, it's difficult to determine how much of the fee is the interchange cost and how much is the markup fee.
Flat-rate Pricing
With this model, the payment processor charges a fixed percentage or per-transaction fee, regardless of the underlying interchange fees. Although simple to understand, flat-rate pricing may not always be the most cost-effective option, as merchants may end up overpaying for certain types of transactions.
Example: Suppose you run an online store and have a merchant account with a flat-rate pricing model. A customer places an order worth $120.00 and pays using a Mastercard Platinum Consumer credit card. Your payment processor charges a flat rate of 2.75% per transaction, making your total processing fee $3.30. With this model, the processing fee remains the same regardless of the card type and underlying interchange fees, which could result in overpaying for some transactions.
Subscription-Based Fee Models
Under subscription-based models, merchants pay a fixed monthly subscription fee and a small per-transaction fee, which often includes the interchange fee and a nominal markup. This model provides more predictable costs for merchants, as the monthly fee remains constant, regardless of the volume of transactions. However, businesses with lower transaction volumes may not benefit as much from this model, as the fixed monthly fee could result in higher overall costs compared to other pricing structures.
Example: Imagine you operate a gym and have a merchant account that uses a subscription-based pricing model. A customer signs up for a membership costing $80.00 per month and pays with an American Express Gold Consumer credit card. Your payment processor charges a monthly subscription fee of $49.00 and a per-transaction fee of 0.10% + $0.25. In this case, the processing fee for the transaction would be $0.33 ($0.08 from the percentage fee and $0.25 from the fixed fee). Your total monthly cost for this single transaction, including the subscription fee, would be $49.33. However, as the number of transactions increases, the average cost per transaction decreases, making the subscription-based model potentially more cost-effective for high-volume businesses.
Interchange-plus pricing, known for its transparency and fairness, is often the most cost-effective option for businesses. However, it may not always be the ideal choice, especially for small businesses with lower transaction volumes. It's crucial to compare rate quotes from multiple providers and consider all associated fees before selecting a pricing model. While interchange-plus pricing works well for many businesses, high-volume merchants might find subscription pricing more advantageous. Ultimately, it's essential to explore various options and choose the one that best suits your business's unique needs.
Go With the Credit Card Processor People Trust
In the world of credit card processing, transparency is crucial for merchants to make informed decisions. At North American Bancard, we understand the importance of offering a wide range of options to our clients including interchange-plus pricing. Our goal is to provide you with the right credit card processing approaches to help you take control of your payment processing costs and ultimately improve your bottom line. Contact us today to learn more about our interchange-plus rates and fees.
If you are a first-time or small business owner, then you may have heard of flat-rate credit card processing. Every business needs a provider for credit card processing, as it is one of the most important aspects of any business--the ability to accept payments. However, choosing a provider and a fee structure can be a challenge that takes time, energy, and research. If you’re going to succeed, then you need to be familiar with every type of processing service and why they might be suitable for you. One of the most popular services purchased by small businesses when it comes to credit card pressing is flat-rate credit card processing.
Flat-rate merchant services has many benefits, but it's not the right situation for every business. This brief analysis of flat-rate credit card processing will give you some insight that helps you decide whether flat-rate credit card processing is the right option for you, or if it's a bad choice for your specific business.
Credit card processing isn’t always the easiest concept or industry to understand
As a business owner, you are already aware of some of the struggles that you can experience when trying to determine a credit card processing provider. It is one of the most difficult things to do as a business owner, especially if you are trying to estimate the cost of accepting credit cards using a merchant services provider. Determining these costs can be difficult, which is why some business owners are drawn to a flat-rate processing model where the pricing is easier to understand.
However, these decisions depend on so many factors that it becomes a time-consuming task to determine which pricing model is best for you. To make it easier, this article will serve as a knowledge base and guide to helping you understand the factors that go into this decision and what concepts you need to understand.
Definition of flat-rate credit card processing
The first important concept of credit card processing to know is what exactly flat-rate credit card processing is. If you’re going to determine if it is the right choice for you, then knowing what it entails is the first and most important step. With an understanding of what flat-rate merchant pricing is, you’ll be well on your way to understanding it at a deep enough level to decide whether it is the right choice for you.
Credit card processing isn’t free. It costs the merchant a fee to implement and accept payment processing solutions. The variable here is what the cost is. Just like in any purchase, there are varying costs from different providers. Though consumers don’t consider it, it is the reality of being a business owner. In addition to trying to find the lowest fee, merchants also face the possibility that credit card processing fees will vary within the credit processing provider that they choose.
One of the most significant and common reasons for credit card processing fees to fluctuate is the various fees charged by Visa, Mastercard, and other suppliers for using the card. In addition, there are fees charged by the issuing bank for the transaction and there are a couple more mouths to feed along the way. There are hundreds of services that are involved in this process and each one takes a different sized bite. For this reason, credit card processing fees can often fluctuate and have business owners confused about what they are actually paying to process credit card transactions.
To simplify things and make it easier for the merchant to understand, credit card processing companies have begun to offer flat-rate credit card processing fees. With flat-rate credit card processing fees, merchants are more able to predict exactly what the cost of accepting credit cards will be and forecast that into their profits and margin calculations. It comes with many benefits, but it’s not right for every business.
Benefits of Flat-Price Processing
As you can imagine, there are many benefits to flat-rate processing and that is why it is so commonly used by businesses that are seeking simplicity in their processing arrangements. When you have flat-price processing, there are a few aspects to love about your credit card processing agreement.
Predictability
The first benefit of using flat-rate credit card processing is being able to have a predictable credit card processing fee each month. With predictability in the rates that you are charged to process credit card transactions, you can not only plan your expenses better, but you can also price goods and services better to provide you with a more consistent margin.
When you know what your processing rate is going to be, the need to fluctuate your item pricing will disappear. You can plan ahead and be sure of what you are going to be charged to process credit card transactions.
Flexibility
When you have a flat-rate processing plan, another benefit that you will be entitled to is the flexibility that comes with these processing plans. With flat-rate credit card processing plans, you often don’t have to get locked into long-term commitments that hinder your flexibility and make it difficult to plan ahead. For small businesses looking for short-term credit card processing or to lessen the long-term overhead for their business, this is the ideal situation.
Flexibility is also a benefit to any business that might be considered high-risk or in general need of agility due to possible changes in the business model, revenue, and other aspects affecting their business.
Simplicity
When you work with a flat-rate credit card processing contract, one of the most important benefits is the simplicity of the contract. As we touched on earlier, traditional credit card processing agreements will often feature clauses, charges, and fees that you don't even have access to seeing the details on. For this reason, in those arrangements, you can never tell exactly what your credit card processing fee will end up being.
However, with a flat-rate processing plan, you can always understand what the fees are and exactly how they impact your business. You can plan to include enough margin for your processing fees and make it easier to understand the implications of your credit card processing agreement.
Who is a good candidate for flat-rate processing?
If you are considering flat-rate payment processing for your business, you probably want to know a bit more information about who is a good candidate for flat-rate processing and which businesses should pursue flat-rate processing for their processing needs. It is very easy to identify merchants that are good fits for flat-rate processing because of the straightforward nature of flat-rate merchant pricing.
Startups
Startups are the ideal businesses for flat-rate processing because they usually need to have less overhead and a shorter contract. Startups are often young and unstable, so having a processor that is flexible in the terms is ideal. Startups also typically have a lower volume of transactions. Many credit card processing companies have solutions that are specifically geared towards the needs of startups and young companies.
Small Businesses
Small and local businesses are another frequent customer of flat-rate merchant pricing solutions. This is because small and local businesses typically have a much lower volume of transactions than larger companies and they are unable to attain better rates. In addition, small businesses are slightly more unstable and higher risk than other companies and don’t have the leverage to get favorable contracts with other processing solutions.
High-Risk Businesses
Businesses that are higher risk industries also tend to use flat-rate merchant services because they are subject to riskier transactions that could lead to increased fees by processing companies. If they are able to get an account with a flat-rate processor, then high-risk businesses typically take that opportunity because it is a favorable situation for them.
Doing better than flat-rate processing
For some, flat-rate processing simply isn’t a great option. This leaves many wondering if it’s possible to get a better deal than flat-rate merchant processing. It’s true, there are some downsides to flat-rate merchant processing and that is the reason that some choose to pursue other options. It is possible to get a better deal than flat-rate processing has to offer, but there are certain conditions that you have to meet.
The first condition that you have to meet if you want to get a better deal on your processing than what flat-rate processing has to offer is that you have to be able to do a high volume of transactions. The higher the volume, the better deal you are going to get on your processing.
Another condition that you will have to meet if you are going to get a better rate than what most flat-rate processing solutions have to offer is you will most likely have to sign a longer-term contract for your processing needs. This means less flexibility, but it is possible that you will get a better rate, though it will be dynamic and subject to change.
If you are a business that cannot get flat-rate processing or you do a high volume of transactions for an established and long-lasting business, then you can possibly get a better deal by going with a solution other than flat-rate processing.
Today’s modern business owners require robust credit and debit card processing to manage everything from in-person retail sales to e-commerce solutions with scalable customer demand. Most businesses are already aware they need a powerful payment gateway to manage and accept these transactions but may be unfamiliar that many of the best payment processors on the market offer a variety of pricing models. This is to ensure clients receive the best possible fees, interchange plus pricing, flat rate credit card processing, and more.
While the goal of any reasonable payment processor is to also have a lucrative business, there is a balance that can be struck so owners and clients grow in a fair and balanced way. One of the better pricing models that is available to ensure this support is through a 3-tiered rate structure.
At North American Bancard, we always do our best to keep our clients informed about any decision they need to make concerning service providers. That is why we thought it a good idea to go into more detail about how tiered rate pricing can benefit your business model. By the end of this service page, you should have an excellent understanding of how this structure works, the potential benefits it provides to your business operations, and the possible pitfalls if not managed correctly. So let’s dive in, and don’t forget, if you have any questions, send us a note, and our team will respond as soon as possible.
What is Tiered Pricing Structure for Card Processing?
While most businesses are used to interchange plus pricing and flat rate credit card processing, tired rate structures offer a lucrative alternative. This is a pricing model utilized by payment processes that charge merchants based on certain categories or criteria. That could be the type of card used, method of payment, or risk level of the transaction.
Each tier is given a rate or fee, which is charged to the merchant based on the transaction category. In most cases, these structures have three tiers:
- Qualified – lowest rate and often includes in-person swipes of a card.
- Mid-Qualified – tends to cover transactions that do not meet qualified criteria, like cards being keyed instead of swiped.
- Non-Qualified – highest rate and applies to higher risk transactions like corporate cards or reward cards.
There is some variance in the industry between what criteria are used for each tier, and that can cause some confusion for merchants and clients. That is why you see some providers sticking to flat-rate credit card processing, but at North American Bancard, we like to provide more robust solutions that meet the induvial needs of all our clients.
How Does Tiered Pricing Work in Practice?
Anytime your business allows a credit or debit card as a payment method for services or products, you have to pay a processing fee to the provider or payment gateway. These fees are usually calculated by taking a percentage of the transaction as well as a fixed amount agreed upon before allowing card payments.
For example, at North American Bancard, we start with a tiered rate structure of 1.39% of the transaction amount plus an additional $0.10 cents. This is easy to remember and low enough to make our services highly competitive in today’s modern marketplace. Those fees fluctuate based on the tier of each transaction. So if you plan on having frequent debit card purchases in-person, you save money by using a tiered rate pricing model as compared to a flat rate model.
Still confused? It’s okay. This involves a lot of the nitty-gritty details of business finance and how to maximize each of your transactions, so you minimize risk and increase potential revenue. Let’s get a little more in detail about each tier so you can make a well-informed decision about whether or not it is suitable for your business operations.
Tier 1 – Qualified Transactions
The first tier we need to cover concerns those regular transactions that tend to happen in person or with cards that offer as little risk as possible. This tier provides the lowest rates because it is the most reliable. Payment processors don’t have as much risk to consider because the customer shoppers are physically there, can be confirmed through pins or signatures, and use debit cards more than credit cards associated with corporations and rewards. That continuity leads to more predictability and, thus, lower rates.
Tier 2 – Mid-Qualified Transactions
Mid-Qualified transactions are a tier meant for a little more risk. These may be rewards or loyalty cards that offer cashback bonuses or other features. Most of the time, this includes credit cards on the consumer marketplace or keyed-in payments. Any other transactions that are processed in a 24-hour time period for authorization may also end up in this tier because they require more authentication. While this tier does have a higher rate than the first, it is lower than the next tier, which covers higher-risk transactions.
Tier 3 – Non-Qualified Transactions
A non-qualified transaction is exactly what you think. These are cards that have a bit higher risk when processing. You can consider corporate cards, international cards, or any payments made with a CNP (card not present) type of transaction. As you can imagine, these types of payments carry a much higher risk of fraud and authorization. As such, they are subject to higher fees than the other tiered rate structure options because the processor is also assuming that risk.
What is the Cost of Tiered Rate Pricing?
Remember that every payment processing service is going to be unique based on the banks and stakeholders backing their operations. That being said, there is no “one-stop” unified solution to tiered rate structures. Every processor will calculate how much risk, what they need for profits, and how to remain competitive in the market to develop their own pricing model for fees.
This idea of a case-by-case basis extends to manipulating the tiers. Many processors may blur the lines between Tier 1 and Tier 2 concerning corporate cards or systems like Apple Pay, where a card is not required to be present. Your best bet is to ask questions upfront, read through the terms and services, and get to know your payment processor. We at North American Bancard always encourage our clients to ask any questions they want ahead of time, so our relationship remains as easy and smooth as possible.
It may help to cover what types of rates you can expect from the industry. This will help put the tiered rate structure in perspective and give you a better idea of what you need to account for concerning taking payments for your business.
Interchange Fees
Every single credit card network requires an interchange fee. Visa, Mastercard, American Express, and Discover all ask for a fee for every transaction that is processed through their networks. These tend to be small fees and fixed as these provider networks know they are in tough competition with one another and want your business. You will most likely never see these fees as they are paid by the banks issuing the cards and not the merchants themselves.
All these interchange fees are automatically subtracted from the transaction funds. Yes, that does mean you receive less in your merchant account than the price your clients have paid, but it also means you don’t have to handle the fees outside of the transaction. That saves you time in the long run.
There are also interchange plus pricing models that list all fees handled on a monthly statement. This will include any wholesale fees determined by the issuing banks and credit cards, as well as any markup fees determined by a processor. You can expect most interchange fees to hover around 1.15% and 3.25%, with a possible potential small flat rate as well.
Pros of Tiered Rate Pricing:
- Transparency for merchant records.
- Flexibility in the marketplace based on your needs.
- Cost-effective solution for businesses with low-risk transactions.
- Easy to manage risk based on the style of business you are running.
- Incentives for you and your customers to use more reliable payments.
Cons of Tiered Rate Pricing:
- It is more complex than flat-rate credit card processing.
- May have higher costs if you experience a lot of non-qualified transactions.
- It can be a bit more unpredictable, depending on your payment policies.
Is there a Downside to Tiered Rate Structures?
At North American Bancard, we always want to be transparent with our clients to ensure we maintain the quality trust and customer relationships we have spent years cultivating. In that spirit, we should review some of the disadvantages merchants may see with the tiered rate pricing model.
Unpredictable Rates
Some providers may change the pricing model occasionally based on market demand, current economic stressors, or other situations that may lead to lower profits. This inconsistency can be costly if the rates for subsequent tiers shift without notice. Or, if the processor changes what criteria determine what tiers. Good communication between you and your processor is critical to avoid this type of situation.
Pricing Opaqueness
Unlike our team, there are providers out there who will mask or hide the fees of higher-risk tiers. That can lead to drastically high risk when it comes time to issue payment for the services rendered. Even when such processors advertise low rates with attractive fee schedules, you always want to read the fine print. That way, you avoid paying out more than you need to when the bill is due.
The Risk of High Costs
If you want a business to succeed, you need to mitigate expenses. Using a tiered rate pricing model can lead to a much more cost-effective solution for your business. However, if you have a great deal of mid to non-qualified transactions, those solutions become much more expensive quickly. This is why we always encourage clients, especially in the e-commerce realm, to look closely at the tiered rate structure. You wouldn’t want all your transactions to be non-qualified while thinking you are paying the lower rate.
Why Do Banks Choose the Tiered Rate Structure?
Most of the time, banks choose tiered rates because of risk mitigation. Banks assume the liability that the end customer making the transaction will pay their bills. There is some fraud to be worried about here. Things like chargebacks or stolen identity can lead to high bank expenses.
To lower the risk they experience, banks prefer a tiered structure where that liability is shared among all stakeholders instead of squarely on their shoulders. Think of this as a type of insurance policy for the bank to prevent paying out higher expenses in the long run.
What About Alternatives to Tiered Rate Pricing?
There are absolutely alternatives to tiered credit card processing that are available. We’ve discussed a couple already, but let’s do a quick review:
- Interchange plus pricing: This will include a percentage-based fee for each transaction plus an additional fixed fee. For example, a 1.29% fee on the total transaction value plus $0.10 on end. This is slightly more reliable and transparent than tiered pricing because you know what to expect regardless of the payment type.
- Flat Rate Credit Card Processing: This is the most straightforward alternative where every transaction is given a flat rate fee. That can mean less money changing hands and lower expenses to the bank and merchant, but it doesn’t account for risk.
- Membership-Based Fees: As the name suggests, this is when you agree to a subscription or membership with a processor based on a monthly fee for a certain number of transactions. That typically doesn’t include any interchange or network fees from the cards, but it does give you a lot of predictability.
Wrapping Up Tiered Rate Structure Models
While there are some disadvantages you need to overcome that mean the tiered rate pricing model is not suitable for your business structure, it does offer a ton of flexibility for other organizations.
At North American Bancard we take the time to get to know your business and operations. Our team can offer the best solutions fit to your specific needs. Whether that is using a tiered merchant pricing structure, interchange plus pricing model, or flat rate credit card processing, rely on our experts to get you up and running and receiving customer payments. So give us a call today, and let’s find a cost-effective solution for your needs!Q
© Shaw Merchant Group, LLC. Our goal is to gather accurate, updated information and assist you in your research. We recommended that you check with your service provider or financial institution directly and get independent financial advice before making any commitments or business decisions.
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