Merchant Services – More Like Merchant Scoundrels
Beware. Card processors are coming for you.
If you own a business, or are the primary decision maker in a business, you probably already know this; but, just in case, I thought it best to review with you the types of scams processors are running and trying to catch you with.
You caught me, I am a Merchant Service Provider (MSP, also known as card processor).
Because I am, I see all the slimy things that are happening day after day in the processing world. And like with anything, bad news travels faster than good. You are probably keeping an eye out for card processors, loan sharks, bail bondsmen, and used car salesmen. Not to show my nerdy side, but just like how Tommy Lee Jones character in Men in Black said “A person is smart. People are dumb, panicky, dangerous animals…” I am here to tell you that in the card processing world, your agent can be good, but the industry can be slimy, fraudulent, and dangerous to your business IF you aren’t careful. What you must do first and foremost is find someone who has your back… and, most importantly, a reason to have your back.
People love to trust someone who has a nice smile, attractive face, and drives a nice car, but we must remember that those things do not grow or even help your business on their own. As much as I don’t like to admit it, people have been selfish since the beginning of time and that is not about to change. But, if we can use that to our benefit, we can ensure that our interests are being considered and not forgotten. Especially in industries most business owners are not pros in, you need to have leverage. The key to that leverage in the processing industry is finding the processor that is focus on retention and finding an agent that benefits from your success.
Unless you are already in the processing industry, you probably don’t know that not all processors have the same sales structure. All of them make their profit from your processing fees through residuals; however, they don’t all pay their agents in the same way. I classify them with my own unique terms:
1. The “Machine”. This processor doesn’t even try to retain your account – at least not with service. Like all processors, these guys have a term length in their agreement, and they can almost guarantee that you will leave them once that time comes. They aren’t trying to retain your account. They are just trying to get the most they can from you while you are legally stuck using them, at least practically speaking. Their contracts have a way out, but they are financially restricting as their cancellation fees are priced criminally. Somewhere in the fine print of their long contracts, they state that they can raise your rates at any time… and they most definitely do. Their sales agents have no reason to fight for you or your business because they are paid salary and/or a bonus when they sign new accounts, not if they keep them. Getting you to sign is all they are looking for. I call this type of MSP a “Machine” because they are just looking to churn out sales and that is it. You are just a number.
2. The “Corporate Smile”. Based on the name you might think I am saying this agent is all bad. They aren’t. In fact, I will argue that the sales reps are typically great people who want to do right by you. They are the smile. The problem is, corporate doesn’t know about you, or even care about you. The sales agents make a small residual cut, so it is good for them to have you continue to process through them. The problem is, that percentage is typically so very small, losing your account would mean they might have 1 fewer “5 dollar foot long” from Subway that month. Fighting for your account isn’t always the most financially motivating thing for them. They are paid on what is called a “net-net” structure. It is kind of like Multi-Level Marketing. There are so many layers above them, they get a percentage of a percent, of a percent. On top of that, these corporations will sometimes only pay residuals to agents for a few months or a year. After that, why would the agent fight for you, he is making nothing from your account. And, just like the “Machine”, getting any update on your account can take weeks, not hours. The agent can be great, but for how long? and with what service from the top?
3. The “Consultant”. Honesty IS the best policy and even though it doesn’t pay out fast, it does pay out. The Consultant isn’t in it for quick cash. The Consultant is in it to make sure your business thrives. Typically, the Consultant doesn’t just use 1 brand of anything. Getting you what is best for you and your business is what is best for the Consultant. This agent may sell one business a basic terminal and another some hyper advanced cloud-based POS system that works for their franchise. It is less about making a sale, or even profit from hardware or software and more about residual income from the success of your business. This agent wants you to make money. That is how they make money. Even if they retire, they will still want to be around to help your business succeed because they profit from your profit. Even if they stopped selling new accounts years ago. You ARE their retirement plan.
As you can see, the best decision is the Consultant. That is what Nationwide Payments is first and foremost. But how do you know you are getting a “Consultant” and not just a good sales pitch? Here are a few ways to spot a “Consultant” and not something else:
1. They aren’t concerned about locking you into a contract. Yes, contracts/agreements are required in the processing world. The question is, can you get out of it? A “Consultant” will have no Cancellation Fee or a very minimal one. With us, you can leave anytime. Why do we do this? Because if you know you are free to go, you know I will work hard to keep you wanting to stay with us.
2. They give you the hard truth. Did you know that one of the ways detectives can tell if someone’s alibi is true is if it is embarrassing? If someone is going to make something up, it will be beneficial for them. No fourth-grade boy lies about being bullied by a girl. He might just lie about beating up an alligator, lifting 300lbs, or some absurd things like that. A good agent will want to tell you the truth, even if that means it is not as good for them. If we don’t have what you need, I won’t try to sell you something that won’t help you. I will tell you that we don’t have it but that I will work to get it. Because, if I do, I can prove myself and you will know that my top concern is your business.
3. All rates are guaranteed. In 3-4 months, about the time most businesses stop checking their processing statements, your rates won’t “magically” go up. Many business owners don’t realize that is exactly what the “Machines” do. Why would I want to do that? Remember, you can leave any time. If another processor comes along with a better rate and can prove that I raised your rates, why wouldn’t you leave! I would. That is why I don’t do that, and that is why our rates are guaranteed. I cannot change your rates without your explicit approval.
Just like in my second example, you will know a processor is legitimate if they tell the hard truth, especially if it isn’t great for them. So, I will tell you: not every processor is good. Unlike untrustworthy processors, we make money when you make money. And my preference is for you to keep as much of it as possible. This way, money is not a reason for you to ever leave Nationwide Payments. I also want to make sure you are always happy with your services and never want to leave because of a lack of service. So, here are some reviews to show you how Nationwide has proven itself time and time again.
What if you aren’t new to processing? What if you don’t know if you are currently being taken advantage of in your merchant services? Let us know and we will help you figure that out free of charge. Either way, we will tell you the truth, even if it means telling you that you are good staying where you are at.