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POSitive Processing Blog

Merchant Rules To Live By
Wednesday, March 6, 2019

Do your customers know these important merchant processing rules? Keep your business banking customers in the know with our 'Laws of Merchant Processing'.                                                

When talking with your business banking customers, it’s a good idea that they feel as ‘in the know’ as possible. Next time you’re discussing processing with one of your customers, be sure to share some of the ‘Laws of Merchant Processing’ that they should know!

Merchant Rules to Live by…  

Set up a separate bank account—By having a separate DDA account just for your merchant processing you will be able to easily close it if things don’t go as you had planned. If rates and promises do not seem to have been held up, you won’t have to fear your main account being debited for “additional” fees months after the merchant accounts have been shut off.

Don’t fall into a lease for your credit card terminal—With options of either buying a terminal for a few hundred dollars versus receiving the terminal for free for the length of your time as an OMEGA merchant, why would you even consider a lease with another processing company? Entering a four-year lease at $40 - $60 a month can mean paying almost $3,000 for your terminal. If you’d prefer to own your terminal, we offer affordable machines so you will still be way ahead of the game. Technology can change, your business can change. A non-cancellable lease cannot change; it can only be paid off.

If it makes sense today, it will make sense tomorrow—Never feel like you should rush into buying that ‘great deal’ you are being offered. Merchant sales reps get paid for closed sales and are often looking to have you sign on the dotted line before moving on to the next prospect.  Don’t let them intimidate you. Take your time, do your own research and background checks. If a good deal makes sense to you today, it will continue to make sense tomorrow, next week, and next month. A rep looking out for your interests will never pressure you to rush into a business relationship with them.  

Are your neighboring businesses utilizing them?—You’ve just heard all of these wonderful aspects of what makes this processing company so great, so why doesn’t everyone use them? Asking your rep for local references can tell you a lot. Who has been with them for an extended period of time and which companies have left them are both questions that will help you decide if this is the right processor for you. Maybe they are new to the area but anything they can share can help your decision.  

Google is your friend—Finding out more about this company on your own can definitely help make your decision clear. You use it for everything else, so why not use Google as your one-stop research source for merchant processing companies? Find references. Research their BBB rating and accreditations. Try typing in the company’s name followed by the word “complaints”. It’s amazing what you can learn out there!

Contracts, contracts, contracts—Outweighing the good versus the bad when it comes to contracts is part of nearly every business transaction. They can of course serve as a great opportunity to secure and strengthen both sides of the deal, but be sure to ask questions. If they are so good, why do you need to be held to a three-year contract and then penalized for leaving early when expectations are not met? Your processing company should be earning your trust each and every day, not holding you hostage!  

Understand your Billing Model—There are multiple ways your vendor can show their markups when sending out your bill. Being on a Tiered program, Fixed Rate Plus Fees, Bill Back, and more, you are participating in your own fleecing. These models make it easier for the processors to disguise what exactly it is they are charging you. At OMEGA Processing, we use the billing model that is Interchange Plus, showing you the true markup from what we charge versus what Visa, MasterCard and Discover are charging. All companies get charged the same from Visa, MasterCard, & Discover; there is no special wholesale or direct pricing, just marketing to make you think there is! Make sure you understand just what it is you’re paying for.



 
 

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    • 03/06/2019 - Merchant Rules To Live By
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