Friday, May 12 2023
Are you planning to become a merchant service provider? When it comes to selling merchant services, there are thousands of ISO agent programs for you to choose from. It is very exciting to become a merchant services provider. However, without the necessary information and details, it is very easy for you to fail. The merchant services business is both complex and lucrative. There are several ISO agent programs available. Choosing the one to suit your specific needs can be very tricky, but luckily we are going to give you expert advice and tips on choosing the best one. Some factors to consider in order to become a merchant service provider include the tools offered by the company you chose, technology use, and customer supports. This article paints a clear picture of what a great ISO agent program should look like. 9 Characteristics of a Good Merchant Service ISO Program The following are some of the key characteristics that define a reliable ISO agent program. A company with the following traits increases your chances of being successful in your credit card processing business. Exceptional Customer Service This is one of the most critical characteristics of a good ISO agent program. However, it is one of the most overlooked things when an agent wants to become an ISO and when seeking out an ISO partner. In the merchant services business, the worst-case scenario would be to receive complaints from your clients, and you are unable to get in touch with your merchant services partner. This can really ruin your business. It is a great practice to look for an ISO agent program that provides 24/7 customer support. In addition, the customer care representatives should be able to attend to any questions, both general and technical, within the shortest time possible. Same-Day Funds Deposits This is another important feature to look out for when choosing a ISO agent program. Clients do not have to wait for long to get their funds deposited into their bank account when a transaction is made. The same day funding is a great incentive that will leave your clients happy and also help you when promoting your business. Ability to Handle High-Risk Merchant Accounts Though you might not be dealing with clients who have high-risk transactions such as travel agencies, CBD companies, bail bonds, credit collections, medical marijuana, etc. it is important for the ISO agent program you choose to handle high-risk merchant account. You might get clients who operate high-risk operations, and therefore the benefit of this is to ensure that the business of your clients is running smoothly without any payment glitches. Great Discount Opportunities The fees associated with credit card processing are quite high. These high fees have been causing businesses to scramble. The cash discount or dual pricing program enable merchants to implement a service fee to customers who pay via credit card and issue discounts to those who pay via cash. The merchant does not have to pay a fee for each transaction they run, and therefore this saves them money. You should, therefore, ensure you find a ISO agent program that offers these opportunities. Assistance on Marketing When it comes to credit card processing business, marketing can be the hard part. However, with a great team behind you to offer marketing assistance, it becomes easy. For you to turn cold leads to warm leads, you will need an effective plan or hire a marketing team. They will assist in providing marketing information as well as design on marketing brochers ect. Flexible Compensation PlanGetting paid is one of the most important steps as a merchant services provider. It is critical to get compensated for the work and effort you put into your merchant services business. Look out for a ISO agent program that will help you realize your goals and meet your needs. Note: Pay attention to the agreement document to make sure you understand all the details. Residual Income TrackingA good ISO agent program will help you get residual analytics; this is very important for your business. The use of technology and the latest software to track residual income is a must for a good ISO agent program that you are going to choose. You should be able to see, at a glance, these details: number of clients, average profit, average ticket, top 10 merchants, and more. Infrastructure For the success of your credit card processing business, it is critical to look for an ISO partnership who readily avails the necessary infrastructure to you. The payment technology is very dynamic, and each year, there are new changes and improvements. There are several other payment methods that have come up. A good ISO agent program should give you access to these assortments of payment processing products. All these will give your clients payment processing options to choose from, which helps them to run their business smoothly. A good ISO agent program should be in the capacity to support most of the following infrastructures:
Multi Relationship with Various Banking Options A great ISO agent program should facilitate a solid relationship with several banks. This creates options to resort to incase one bank declines an account. With this feature, you will have peace of mind and be able to easily close deals and get paid. Tuesday, December 01 2020
As you might already realize, when it comes to the world of financial transactions, the devil is in the details. You have to stay on top of the fine print, or you may find yourself getting taken for a ride that you didn't sign up for. Companies always go out of their way to tell you what you want to hear when they are trying to recruit you, so you'll no doubt hear all about their great features, their superior technology, and how low their rates are. However, this doesn't mean that there aren't plenty of other things that they're strategically sweeping under the rug. It's not that they're being dishonest exactly, it's just that they're probably not going to tell you the whole story. This is especially an issue when you're a smaller enterprise, as you're basically the model victim for tiny, fine print fees since you likely don't have a dedicated legal department. Many processors will attempt to nickel and dime you, and you might quickly realize that the fee schedule that you were shown while you were being sold the merchant account isn't what you're actually being charged. According to experts at Shaw Merchant Group, there are a few different kinds of hidden fees that a credit card processor can slip into your transactions without your realizing. Sometimes it's so under the radar, that you may go through the life of your account without even realizing that they're there. This is usually perfectly legal, as the fees are likely accounted for in various clauses in your contact—though the processor is probably not too keen on pointing them out until after you've signed up. Here are some examples: Withholding a Certain Amount of Money - A lot of the time, especially in high risk accounts, the processor may want to accumulate a certain amount of cash from your transactions as security against charge backs or fraudulent activity. You can basically think of this as a sort of deposit that the credit card company may accumulate without even so much as consulting you about it first. Withdrawing from Your Checking Account - Sometimes it is convenient to allow a credit card processor to automatically deposit the cash from your credit card sales into your bank account, but this also gives them the power to withdraw money from it too, without necessarily notifying you about it first. This money might be used to cover any fees that you owe them, any penalties, or they may even take money out for the purposes of withholding (as mentioned above). If you like having control over your checking account, obviously this is something of a problem. Fees for Terminating Your Account Early - For the most part, if you as a merchant have signed a contract with an ISO, you are stuck with them for the life of the contract, unless you want to pay a few hundred dollars to terminate early. This isn't quite so bad, but often it doesn't stop there. You may also have to pay the processor for the fees that they would have collected throughout the rest of the contract, and that obviously can be a hefty sum. Making You Lease Equipment - A lot of ISO's will push you to lease their equipment, even if it's more expensive in the long run than just simply buying your own. It often will also lock you in with a specific provider, since the length of the lease can last for years and you may not be able to cancel it. This puts you in the position of trying to decide whether you should pay the high price of breaking the lease or simply wait it out until it is over. Not Offering Interchange Plus - Interchange plus is a less costly way of processing transactions, but many providers will not offer this to you. Make sure that you ask about it beforehand, or you may not be getting your money's worth. Offering Promises That Are Not in Writing - It's terrible, but sometimes what the sales agent told you while he was trying to get you to close the deal may not agree with what is actually written in the contract. Whether it was an honest mistake or he intentionally misled you, there are often clauses in the contract that specify that the provider will not honor verbal deals of this kind. This is why it's important to read over the contract and not allow yourself to believe anything that an agent tells you if he is not willing to back it up in writing. Even better, stick to providers and agents that you know you can trust. Shaw Merchant Group, for example, can help you to get in contact with the right people and the right companies that will treat you with dignity and honesty. Perform your due diligence and research any company that you're planning to do business with as well. It's harder these days than ever for shady companies to not leave evidence of their burned customers, since the world is so connected. Look to see what other merchants have said about the company. Look for reviews or any complaints that other business owners may have made. Other than that, keep your eyes peeled for certain obvious signs in the contract that you may charged much more than you might have assumed. When you're reading through the paperwork, look for the word “damages” and examine that area particularly closely. Anything that makes you liable for some unspecified amount if you break the contract early is bad news. If you can't ascertain what the price of canceling early will actually be and this sort of language is used, then it's likely to be an astronomical amount. Steer clear of this sort of company. If you're still confused about who to turn to for your merchant account, or if you're a sales agent who is concerned for your clients' interests and you're looking for an honest processor to partner with, then feel free to get into contact with Shaw Merchant Group. Download PDF: Sneaky Secrets of Credit Card Processing Companies |
Becoming a merchant service provider can be a lucrative and rewarding career choice. As a merchant service provider, you will be responsible for helping businesses accept debit and credit card payments, as well as providing other financial services. To become a successful merchant service provider, there are several key steps you need to follow. In this comprehensive guide, we will outline the process of becoming a merchant service provider, including the necessary qualifications, skills, and steps to take to launch your business. |