Tips for Choosing the Best Merchant Services ISO Program
When it comes to merchant service companies, there is a huge variety to choose from. As a result, finding the right one to do business with can be very challenging. Before getting started, make sure you fully understand how the service works. Finding a high-quality merchant service company is crucial to the success of your business. It is important to find the best fit for your unique needs and give you and your clients the best benefits. Is there a variety of tools offered that you can sell? Do they offer products up to date with current technology? If you are overwhelmed by the many options available, then keep reading! We’ll give you all the ins and outs of what a good merchant service ISO program looks like.
What you need to know about merchant service ISO programs
Look for a merchant service company, which has an ISO program which offers same-day funding. Why is this important? When transactions are made, the merchant won’t have to wait another business day before they receive their funds in their bank account, it will be there that same day. This is a great marketing tactic when going into businesses and trying to promote the payment products and services you offer.
It’s very important to seek out a company with a
Cash discount program
Credit card processing fees are becoming quite expensive. For years these fees have been very frustrating for many business owners. With cash discount, merchants can implement a service fee to all customers who pay with cards, while giving a discount to those who pay with cash. This in return saves the merchant money by not having to pay a fee for every credit card transaction run. So it’s very intuitive to find a merchant service company who has a cash discount program available for you to use.
High-risk merchant accounts
Some businesses consist of higher-risk transactions and operations, such as CBD companies, travel agencies, credit collection, bail bonds, etc. Find an ISO program who specializes in helping these high-risk businesses to get their business up and running as fast as possible with ease.
Marketing assistance & design
Do you have a lead who wants you to send them more info? Do you have leads where they aren’t quite ready to buy yet? You would do well to choose an ISO program who will assist in your marketing needs. Having a marketing/design team behind you is great for turning those cold leads into warmer leads instantly.
Sales compensation plans can be tricky. You want to know if you put in the work, you will be compensated accordingly for this work. Write down your expectations and your goals, then talk to the merchant services company you are looking to partner with and make sure the company can come close or even meet your needs at all. Also, make sure you understand the entire agreement.
A merchant services company who has a CRM (or some sort of tracking) for residual analytics is essential for the success of your business. A CRM has built-in dashboards to track your residual income trends across multiple processors to help you make decisions faster. You can view the number of merchants you have processing, what their average net profit is, and what their average ticket is. You can also view your top 10 merchants by processing volume or by net profit.
Access to capital and residual buyouts
Access to capital is imperative in any business. It takes money to make money and you want to ensure the Partners you are looking into do have some capital to work with. One scenario where this would come into play is with a residual buyout. A residual buyout is where an agent can sell their book to receive a one-time lump sum of cash. In this process, the processing company reviews the agent's portfolio of accounts and offers them a buyout amount. This is calculated by using their average residual amount multiplied by a number of months. For example, if the agent had a residual amount of $5,000.00 monthly, the processing company would review the accounts and the attrition rate of the portfolio and come up with a multiple, like 15. The payout to the partner would be the $5,000.00 average residual amount multiplied by 15, so the agent would receive a one-time payment of $75,000. The agent would no longer be entitled to those residuals and the payment processor would now control those accounts.
Payment technology goes through many changes every year, especially in the last couple of years. The array of payment options has expanded drastically. Having access to a wide range of payment processing products is vital to give the buyers exactly what they need to run their business.
Some hardware options to look for:
• Smart terminals
• Different point-of-sale options to fit the buyer's needs
• Wide range of payment terminals
• Mobile payments
• Payment gateways
• Check processing
• Loyalty and gift card programs
This is probably one of the most overlooked points when choosing the right ISO Partner. It’s very important to seek out a company with a great support team to back up any of your clients. You’ll want a merchant service company with 24/7 support, who knows all the ins and outs of payment processing and a great IT support team. This will ensure that if a merchants POS system or terminal goes down, there is always someone available to service it.
Multiple banking relationships
Ensure there is more than one place the merchant services company places business. For example, if you send in a merchant application to one bank and the bank declines the account, there are other banks to place those deals to and get the deal approved and you get paid.
The merchant services industry can be a difficult confusing industry to get into, but with the right tools and company to work with you can find great success. Before you select a company make sure you know all the facts and have a good idea of what fees you will be charged with each company you look into.
Some things to consider are: What are your buy rates? When are commissions paid out? Can you sell your portfolio? These are great questions to start with when choosing to partner with a company. If you are looking for a great merchant services ISO program, give us a call at (888) 510-9871 or email [email protected]. We look forward to working with you soon!
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