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North American Bancard
Saturday, February 26 2022
Selling Merchant Services - A Step-By-Step Process

As you might already realize, selling merchant services, such as credit card processing, can be extremely lucrative. Below are the steps that you can take to get into this fascinating business, starting with finding your first leads:

Step 1: Find Your Prospects - First, you need to start thinking about where your prospects are. What sort of businesses do you want to sell to, and where can you find them? Your best bet is probably to find businesses that are currently in need of merchant services, since it's much easier to persuade a merchant if he isn't already signed up with a competitor. You can find out what new businesses have opened up in your area by joining your local chamber of commerce or professional business associations. Being able to interface with business owners in person will give you a huge leg up over the competition. You might also try looking in your local newspaper for local stores that have just opened up.

Step 2: Make a Sales Pitch - Sometimes your ISO will provide you with a sales pitch, but you might be better off making one of your own that you adapt to your situation or niche. In general, though, just put yourself in the shoes of your prospect? What do they really want? Your sales pitch should revolve around that. If you don't know enough about your potential customer yet, ask him. Have him tell you about his sales, what kind of industry that he's in, and whether most of his transactions are done online or at his physical storefront. This will give you an idea of how to serve his unique needs. Ask your prospect if he'd like to customize his solution using your products, and then help him put his ideal credit card processing setup together. In this business, you'll want to ditch any high-pressure sales tactics when selling merchant services. Since you will have a long-term relationship, the prospect needs to feel comfortable that he got exactly what he wanted.

Step 3: Sell It - Once you have figured out what your prospect needs and taken the time to come up with a good solution, schedule a time for another meeting. It shouldn't take more than twenty minutes or so to pitch your idea. You might want to put a power point presentation together, or something similarly visual to get your point across. Be very clear in the language you use, by the way. Make sure that it's nothing too obscure that will confuse the merchant. Also, don't be overly detailed—the merchant is only really going to care about how the solution will serve his ends. Just focus on telling him how it's going to save him time and money.

Step 4: Close the Deal - If your prospect is ready to move forward, then get started as soon as possible. Don't put it off; make sure to work while the merchant's “buying temperature” is hot. Fill out the application for the service right then and there if you can.

Step 5: Stay Involved - Since you will be making residual income from this person, make sure that you build a relationship with them over the long-term. Don't just sell to them and disappear. Your residuals depend on their staying with your service, so customer retention is important. In addition, many of your future prospects will come through word-of-mouth from your current prospects if you do your job right. It's extremely important to have a good reputation because people will certainly hear about you through the grapevine, and you're going to want them to hear good things—your business depends on it.

Step 6: Keep Funneling Sales Through Your Pipeline - In this industry, things run a little slower than usual, since you're dealing with the complexities of another business. It is the nature of B2B sales, so you might be working to close a deal for weeks. This is why it's important to multi-task, and to always be working on more than one account at a time. Meet with as many merchants as is reasonable, and make sure to do your best revive any leads that seem to have cooled off and disappeared. Always be in the process of signing up new merchants, and don't let yourself idle for too long. This is the best way to build up a large volume of residuals over time.

Posted by: Scott Shaw AT 01:20 pm   |  Permalink   |  Email

How to Start a Payment Processing Business?

Starting a payment processing business can be a lucrative venture, but it requires careful planning and consideration. The first step in starting a payment processing business is to conduct thorough market research to understand the demand for payment processing services in your target market. This research can help you identify potential competitors, determine pricing strategies, and pinpoint the needs of your target customers. Once you have a solid understanding of the market, you can begin to create a business plan that outlines your goals, target market, revenue projections, and marketing strategies.

After developing a business plan, the next step in starting a payment processing business is to choose a payment processor to partner with. This partnership is crucial, as the payment processor will handle the actual processing of transactions, so it is important to choose a reliable and reputable company. Additionally, you will need to secure any necessary licenses and permits to legally operate your business. Once you have everything in place, you can begin marketing your services to potential clients and building relationships with merchants who may benefit from your payment processing solutions. With hard work, dedication, and a strong business plan, you can successfully launch and grow a payment processing business.

With the rapid growth of e-commerce and online transactions, the demand for payment processing services has increased substantially. White label payment processing is a business model where a company offers payment processing services to merchants under their own brand name.

What is White Label Payment Processing?

White label payment processing is a service where a company provides payment processing services to merchants under their own branding. This means that the merchant will see the payment processor's branding, but the processing service is actually provided by a third-party company.

The white label payment provider takes care of all the technical aspects of payment processing, including payment gateways, security, and compliance, while the merchant focuses on growing their business.

Advantages of White Label Payment Processing:

  • Flexibility: White label payment processing allows merchants to customize the payment process to meet their specific requirements.
  • Branding: Merchants can ensure that the payment process aligns with their brand image, enhancing customer trust and loyalty.
  • Cost-effective: White label payment processing eliminates the need for merchants to invest in developing their payment processing system, saving them time and money.
  • Technical support: White label payment processing providers offer technical support to merchants, ensuring a smooth payment process.

How to Start Your Own Payment Processing Company

  • Research the Market: Before starting your payment processing company, it's crucial to research the market to understand the demand, competition, and potential opportunities.
  • Develop a Business Plan: Create a detailed business plan outlining your target market, revenue model, marketing strategy, and financial projections.
  • Obtain the Necessary Licenses: To operate a payment processing company, you will need to obtain licenses from regulatory authorities. Ensure you comply with all legal requirements.
  • Choose a White Label Payment Processing Provider: Select a white label payment processing provider that meets your requirements in terms of features, pricing, and customer support.
  • Customize Your Branding: Customize the payment processing service with your branding and integrate it seamlessly with your website or platform.
  • Market Your Services: Promote your payment processing services to merchants through marketing campaigns, partnerships, and networking events.
  • Provide Excellent Customer Support: Offer excellent customer support to merchants to build long-term relationships and grow your business.

How Much Does It Cost to Become a Registered ISO for Merchant Services?

To become a Registered ISO (Independent Sales Organization) for merchant services, there are several costs involved, including:

  • Registration Fees: The registration fee to become an ISO can range from $500 to $5,000, depending on the payment processor and the services offered.
  • Compliance Costs: ISOs are required to comply with industry regulations, which may involve additional costs for training, audits, and certifications.
  • Technology Costs: ISOs need to invest in technology infrastructure, including payment gateways, security systems, and software development.
  • Sales and Marketing Costs: ISOs need to allocate budget for sales and marketing activities to promote their merchant services and attract new clients.
  • Miscellaneous Costs: Other costs may include insurance, legal fees, and operational expenses.

In conclusion, white label payment processing is a valuable business opportunity for entrepreneurs looking to enter the payment processing industry. By partnering with a white label payment processing provider, you can offer payment processing services under your brand name, providing a seamless experience for merchants. Starting your payment processing company requires thorough research, planning, and investment, but with the right strategy and dedication, you can build a successful business in this growing industry.

    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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