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North American Bancard
Sunday, February 25 2024
Become a Reseller for Merchant Services

Wondering how to become a merchant services agent? Maybe you don’t know how the credit card processing program works and want to understand its basics? Well, whichever reason has brought you here, this comprehensive guide will help you understand how to become a merchant account reseller and how the merchant account reseller program works, along with many more useful things. So with that said, let’s get started:

Process of Becoming a Credit Card Processing Reseller

The process is not really hard; you just need to understand who is who and what is what and you will be quickly able to figure out how to become a merchant account reseller. So basically there are two ways you can become a merchant services agent, and we will discuss both of them below:

  • Being MSP: Short for Member Service Provider, MSP, or also known as ISO (Independent Sales Organization), is usually a company (it can also be an individual) that is directly connected with the bank. However, if you go with this route, you will have to pay a large chunk of money to the bank on a yearly basis to establish a relationship with them and enjoy various perks like low buy rates and continuous support. However, the amount you pay to the bank per year can be up to $10k or more, and since you are just starting out, you won’t have this much money. Plus, some banks don’t even sign up individuals and require them to work with their registered MSP.
  • Working with MSP: This is the second method of becoming an agent where you will be working with an MSP that is directly registered with banks like the SMG ISO agent program. Now obviously, you won’t get the buy rates that the bank is offering, you will get a rate that will have MSP’s commission added to it. But considering that the MSP is paying a hefty sum of money to the bank per year, this is more than a reasonable deal. A good MSP or ISO partner program will provide you with ample learning resources and continuous support so you will be able to learn quicker and ultimately earn quicker.

Now that you know the difference between both, you should not have any problem with joining a merchant services reseller program. However, there are some more things you need to understand before you dip your toe into this field. So for that, we will cover things like how this program works, what your responsibilities will be, and some things to look for in a suitable ISO partner program.

How Does The Reseller Program Work?

The process is pretty simple and straightforward. Assuming you are working with an MSP/ISO, you will get a ‘buy rate’ from the company. You can call it the profit of the MSP program. Now when you deal with a merchant, you will have to add your own profit to that buy rate and offer it to the merchant so that whenever a transaction is made, both you and the MSP will get a piece of it.

For instance, if you join a merchant services program that is offering you a buy rate of 2% + 20 cents, you can resell it to the merchants for 2.3% + 25 cents. These additional %0.3 + 5 cents will go in your pocket. Now, this looks like nothing compared to the work you will put in converting the merchant. However, this amount will be charged for each transaction the merchant makes on credit cards.

This means that if the merchant processes 100 credit card transactions with an average of $10 per transaction, then it becomes $1k. So you get, 0.25% x 1000 = $2.5. Now also add 5 cents for each transaction which will be $0.05 x $1000 = $50. So the total becomes $52.5 in recurring monthly income. Now that’s the income from just one merchant.

If you sign up 10 of them a month in your first year, your monthly income could be $5200+ per month in the second year. So you can keep adding merchants to your portfolio and keep increasing your income.

Responsibilities of a Merchant Services Reseller:

Your main responsibility will be to sign up as many merchants as you can because that is the sole factor behind your monthly income. Here are a few more things that’ll be on your plate once you become a credit card processing agent:

  • You will have to first learn everything about the products/services you will be selling to merchants
  • You will have to educate merchants about what you are selling and persuade them to sign up for your program.
  • You will have to help the merchants in completing necessary paperwork and setting up their merchant accounts with the MSP.
  • You will have to work continuously with the merchants you sign and offer them support whenever they encounter a problem.
  • You will also have to actively search for new merchants and pitch them your products/services. Most of them will show reluctance, keep paying them friendly visits, and help them without asking for anything in return, some of them might convert soon.
  • You will have to keep a continuous track of your progress, how many merchants you signed up, how much you are making, what your monthly goals are etc. (Some good ISO programs offer web-based dashboards for performance measurement).

These are a few important things that you will be doing on a daily and weekly basis as a credit card processing reseller program agent.

Things to Look for in a Suitable Reseller Program:

The policies, procedures, and rules of merchant programs vary, which is why you need to be very careful when choosing one. We have already discussed the things you need to look for in a program in this guide - Selecting the Best Merchant Services Agent or ISO Program. However, to provide you with a basic idea, we have covered some basics you should remember below:

  • Their Buy Rate: The MSP/ISO you will be working with should have a lower buy rate as merchants will prefer to pay a low fee, which is why a program with a high buy rate won’t get you high sales. Shaw Merchant Group eliminates the concept of buy rate with cash discounting, making it easier to get more merchants. Read about it here (Link to the guide on cash discounting)
  • Monthly Sales Quota: Some merchant processing programs require you to make X number of sales to keep earning the residual coming from your merchants, avoid them at all costs. Your residuals should stay yours no matter how many sales you make.
  • Customer Support: Go with the merchant processing program that offers the best customer support. You don’t want to be stuck in a position where a merchant is having a technical issue, but the processing company is not answering your phone.
  • Freebies: Some of the top merchant services programs offer freebies like a free POS terminal and signage to let customers know the merchant accepts credit cards. These things really help when you pitch your program to the merchants.

There are many more important factors you need to look for when joining a credit card processing reseller program, make sure to read out detailed guide this subject.


Who Can Become a Merchant Services Agent?

To be honest, anyone can become a merchant services agent as long as they are disciplined, self-reliant, and go-getters.

Granted, you will have to study a lot at the start about the programs you will be selling and the techniques to sell effectively, but once the ball starts to roll, you will find it easy to work in the industry.

How Much Can a Merchant Services Reseller Make?

There is a lot of potential for how much you can make. Here is an example, you might make $500 off of a single merchant.

If you manage to sign up 15 merchants per month, then in 5 years, you could be making $37,500.00 in monthly recurring income without doing much. Keep increasing merchants, and your income will increase.

How Do I Become a Merchant Account Reseller?

It’s simple, just select a good merchant account reseller program, talk to them, discuss your concerns, and once you are satisfied, fill their form.

You might be required to provide them with some documentation, just follow what they tell you, and after some verification work, you’ll be registered as their merchant accounts reseller.

Over to You:

See, it’s not really hard to be a merchant account reseller, plus the perks of being your own boss and no income cap really make it an appealing business model. However, just be careful when joining a credit card processing reseller program as you don’t want to be bound by unfair rules and regulations.

Posted by: Scott Shaw AT 12:48 pm   |  Permalink   |  Email

Merchant Services Reseller Program

A merchant services reseller program is a partnership between a merchant services provider and an independent sales organization (ISO) or individual looking to resell payment processing services to merchants. The reseller acts as a middleman between the merchant and the provider, offering a range of services such as credit card processing, mobile payment solutions, and point-of-sale systems. Resellers earn commissions on the sales they generate and often receive training and support from the provider to help them succeed in the industry. This program allows individuals or organizations to start their own business in the merchant services industry without the need for significant upfront capital or expertise.

To become a merchant services reseller, you typically need to submit an application to a merchant services provider or ISO that offers a reseller program. The application process may involve providing information about your business, your sales experience, and your goals as a reseller. Once approved, you will receive training on the provider's products and services, as well as access to marketing materials and support to help you start selling. As a reseller, you will work independently to find and sign up new merchants to use the provider's services, earning commissions on each sale. With the right combination of sales skills and dedication, you can build a successful business as a merchant services reseller.

Becoming a payment processing reseller and selling merchant services to small businesses can be a lucrative and rewarding career. With the rise of online shopping and the increasing demand for secure payment processing solutions, there is a growing need for payment processing resellers to help businesses facilitate transactions efficiently. In this comprehensive guide, we will cover everything you need to know about becoming a payment processing reseller, how to sell merchant services to small businesses, and highlight some of the best merchant services reseller programs available.

Becoming a Payment Processing Reseller

1. Understand the Industry:

  • Familiarize yourself with the payment processing industry, including key players, trends, and challenges.
  • Research different types of payment processing solutions, such as credit card processing, online payments, and mobile payments.

2. Obtain the Necessary Licenses and Certifications:

  • Check with your state and local regulatory agencies to determine if you need a license to operate as a payment processing reseller.
  • Consider obtaining certifications from organizations like the Electronic Transactions Association (ETA) to enhance your credibility.

3. Choose a Payment Processing Partner:

  • Research and compare different payment processing providers to find one that offers competitive rates, reliable customer support, and innovative solutions.
  • Consider partnering with a payment processing company that offers a reseller program to simplify the process of becoming a reseller.

4. Set Up Your Business:

  • Register your business with the appropriate authorities and obtain any necessary permits or licenses.
  • Set up a professional website and marketing materials to promote your services to potential clients.

5. Develop a Sales Strategy:

  • Identify your target market and create a sales pitch that highlights the benefits of your payment processing services.
  • Consider offering value-added services, such as customized payment solutions or ongoing support, to attract more clients.

6. Start Selling:

  • Reach out to small businesses in your area and offer them a free consultation to discuss their payment processing needs.
  • Build relationships with local business associations and networking groups to generate leads and referrals.

Selling Merchant Services to Small Businesses

1. Understand the Needs of Small Businesses:

  • Small businesses have unique payment processing needs, such as affordable rates, user-friendly technology, and responsive customer support.
  • Tailor your sales pitch to address these specific needs and demonstrate how your services can help businesses grow.

2. Offer Competitive Rates and Fees:

  • Small businesses are often price-sensitive, so it's essential to offer competitive rates and transparent fees to attract and retain clients.
  • Be upfront about any hidden costs or additional charges to build trust with your clients.

3. Provide Exceptional Customer Service:

  • Small businesses value personalized service and quick response times, so be responsive to their inquiries and provide ongoing support.
  • Offer training and resources to help businesses optimize their payment processing systems and maximize their revenue.

4. Customize Solutions to Fit Each Client's Needs:

  • Listen to your clients' concerns and preferences and tailor your payment processing solutions to meet their unique requirements.
  • Offer a range of payment processing options, such as in-person, online, and mobile payments, to accommodate different business models.

5. Demonstrate the Value of Your Services:

  • Highlight the benefits of your payment processing services, such as increased security, faster transactions, and improved cash flow.
  • Provide case studies and testimonials from satisfied clients to showcase the positive impact of your services on small businesses.

6. Follow up and Maintain Relationships:

  • Stay in touch with your clients regularly to address any issues or concerns and ensure their satisfaction with your services.
  • Offer incentives or promotions to encourage repeat business and referrals from your existing clients.

Best Merchant Services Reseller Programs

1. Square:

  • Square offers a comprehensive reseller program that enables you to sell its suite of payment processing solutions, including point-of-sale systems, online payments, and invoicing tools.
  • Benefits of Square's reseller program include competitive pricing, marketing support, and ongoing training and resources to help you succeed as a reseller.

2. Payment Depot:

  • Payment Depot's reseller program provides resellers with access to its innovative payment processing solutions, including interchange-plus pricing, flat-rate fees, and customizable reporting tools.
  • Resellers can benefit from Payment Depot's dedicated support team, co-branded marketing materials, and generous commission structure.

3. Dharma Merchant Services:

  • Dharma Merchant Services offers a reseller program that allows resellers to sell its ethically sourced and sustainable payment processing solutions to small businesses.
  • Benefits of Dharma's reseller program include competitive pricing, transparent fees, and access to a wide range of payment processing options to meet the needs of diverse clients.

4. Payline Data:

  • Payline Data's reseller program offers resellers the opportunity to sell its cutting-edge payment processing solutions, including virtual terminals, mobile payments, and e-commerce integrations.
  • Resellers can take advantage of Payline Data's robust reporting tools, dedicated account managers, and ongoing training and support to help them grow their reseller businesses.

In conclusion, becoming a payment processing reseller and selling merchant services to small businesses requires a combination of industry knowledge, sales skills, and dedication to providing exceptional service to your clients. By following the steps outlined in this comprehensive guide and partnering with a reputable payment processing provider that offers a reseller program, you can build a successful reseller business and help small businesses thrive in today's competitive market.

    North American Bancard is a registered ISO of BMO Harris Bank N.A., Chicago, IL, Fresno First Bank, Fresno, CA, and Citizens Bank N.A., Providence, RI.

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