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Shaw Merchant Group
Wednesday, November 02 2022
How to Start an Online Payment Processing Company

One of the most lucrative fields that you can get into as a salesperson is selling to other businesses. Unlike most end consumers, business owners keenly understand the value of investing wisely in long-term solutions, and not merely throwing away their money on something cheap. If you want to truly contribute value to other business owners, while making a decent paycheck every month yourself, one of the best ways to do that is to offer quality merchant services. You will be invaluable to your clients, and if you serve them well, they will continue to look to you for ways to make their business more efficient.

Why start selling on your own, though? Isn't that a lot more work? What are the benefits if you're already working in a commission-based kind of job? Well, here are a few of the major ones:

More Control - Even if you're working in a field where you get a relative amount of independence, like in sales, you still don't have complete control, and your whole work life revolves around satisfying someone else's numbers. You may have your own personal selling style, but the overall strategy that the company follows—the direction in which “the ship” is being steered—is not determined by you, but by someone else. This may not be such a bad thing for some people, but it also means that your livelihood is ultimately in someone else's hands. What if the owners of the company that you work for make a dumb decision that spells the end of the business? You will have to suffer the consequences anyway, even though it wasn't your fault.

More Cash - Of course, if you own your own merchant services business, you have the potential to make a lot more money than someone who doesn't. If you're an independent contractor, at the end of the day, the people above you are raking in the most money. Sure, as a salesperson, you might make a hefty percentage of that, but the fact of the matter is that your potential for financial growth is stunted. If you have a business that you control yourself, it is basically up to you how much money you want to make, and you keep more of the fruits of your hard work.

The Potential for Scale - The thing about a normal job, even a sales job, where you're working for someone else, is that you rarely have the possibility to scale things up. In other words, you can't “replicate” yourself by hiring someone else to do some of your tasks, and this can greatly reduce your long-term income potential. When you start a merchant services company, you can choose to run it in many different ways, but one way is to outsource the work slowly until your business can practically run on its own. For true residual, passive income, this is the kind of situation that you will want to be in. This is what makes it possible for you to work because you want to, and to make money even in your sleep. You just can't do this when you work for someone else.

Now, you may be thinking: How do I start a merchant service business? Maybe you've been a salesperson for awhile—maybe you've even been selling POS equipment and other important retail tools—but you're not sure how to make that leap into selling for yourself.

Well, unless you've invented and designed your own solutions, you're going to have to start by forming a partnership with a merchant services agent program that you believe in. They're going to have to make a product that you can really get behind because, if you're building a business for yourself, most of your money is ultimately going to come from the back-end, from repeat customers. This is why it is so important to take a step back and think about quality above anything else. By all means, find a program that is lucrative, but don't ever sell a product that you wouldn't feel enthusiastic about using yourself. In the end, this is what is really going to create repeat business.

What traits do you look for in a merchant services agent program, then? Don't be taken in by any fancy bells and whistles. Basically, these are the things you are going to want to see:

A History of Reliability - Again, there's no sense in selling shoddy services or products. Look up reviews of the company and decide if they are any good. Research their products and make sure that they are user-friendly. Find a way to use them if you can. The easiest products to sell are the ones that are actually good because they basically sell themselves time and time again.

Generous Revenue - Share Since this is going to be the core of your business, you are going to want to find a merchant services partner program that gives you a good cut of the sales. If you're doing all the work of finding and maintaining leads, then you need a fair percentage of what that customer is paying.

Residual Income - Part of what makes selling POS services so lucrative is that there is often a monthly fee involved or else the merchant services agent program takes a percentage of the user's sales. As a partner, make sure that you have access to a significant portion of that long-term income as well. This is what is going to pay you month after month, even long after you have made the initial sale. This is where most of your money is, really.

Lots of Options and Flexibility - The company you work with should have lots of different options when it comes to revenue sharing, that way you will be able to build a strategy out of the one that best suits your business.

So, what specific company can you go with that will fulfill all of these needs? There are a few, but one of the best and most reliable is North American Bancard. We provide real value to their clients, so you should have no trouble working with them and building a stream of residual income from their products. Ultimately, though, just focus on solving your customers' problems and finding a company that can help you do that, and you should be able to start building your own merchant services business.

Posted by: Scott Shaw AT 07:00 am   |  Permalink   |  Email

Want to Become a Registered ISO?

To become a registered ISO (Independent Sales Organization), individuals or companies must first establish a strong understanding of the payment processing industry, as well as the rules and regulations set forth by major credit card associations such as Visa and Mastercard. The process typically involves applying for registration with a payment processing company or acquiring a sponsorship from an existing ISO. Additionally, applicants must pass a thorough background check, demonstrate financial stability, and have a proven track record of success in sales or marketing. Once registered, ISOs are authorized to sign up merchants for credit card processing services, handle merchant account setups, and provide ongoing customer support.

Registered ISOs play a crucial role in the payment processing ecosystem by acting as intermediaries between merchants and payment processing companies. They are responsible for acquiring new merchant accounts, managing payment gateway services, and ensuring compliance with industry regulations. ISOs also have the ability to set their pricing and fees for merchant services, allowing them to generate revenue through markups or residual income from processing volumes. By becoming a registered ISO, individuals or businesses gain the opportunity to build a lucrative business in the payment processing industry, expand their client base, and establish themselves as trusted partners for merchants seeking reliable payment solutions.

Becoming a credit card processing agent can be a lucrative and rewarding career choice for individuals looking to enter the world of sales and financial services. By partnering with a reputable ISO (Independent Sales Organization) and offering point of sale solutions to businesses, you can earn a substantial income while helping merchants streamline their payment processing operations. In this comprehensive guide, we will cover the steps to becoming a credit card processing agent, explore the best ISO agent programs for selling point of sale solutions, and provide insights into the earning potential in the merchant services industry.

How to Become a Credit Card Processing Agent

1. Understand the Industry: Before embarking on a career as a credit card processing agent, it is essential to familiarize yourself with the payment processing industry. Learn about different types of merchant accounts, payment gateways, and processing fees to better serve your clients.

2. Obtain the Necessary Licenses: In order to legally sell merchant services, you may need to obtain a business license or register as a sales agent with a reputable ISO. Check with your local government agencies to ensure that you are compliant with all regulations.

3. Choose a Reputable ISO Partner: Partnering with a reputable ISO is crucial to your success as a credit card processing agent. Look for companies that offer competitive rates, top-notch customer service, and a comprehensive training program for their agents.

4. Complete Training and Certification: Many ISOs provide training programs for new agents to learn about the company's products and services, as well as sales techniques and industry best practices. Take advantage of these resources to build your knowledge and skills.

5. Build a Sales Strategy: Develop a sales strategy that targets businesses in need of point of sale solutions. Identify your target market, create a compelling pitch, and leverage your network to generate leads and close deals.

6. Provide Excellent Customer Service: Building long-term relationships with your clients is key to your success as a credit card processing agent. Be responsive to their needs, address any issues promptly, and go above and beyond to deliver exceptional service.

7. Stay Updated on Industry Trends: The payment processing industry is constantly evolving, with new technologies and regulations impacting the landscape. Stay informed about industry trends and innovations to better serve your clients and stay ahead of the competition.

Best ISO Agent Programs for Selling Point of Sale Solutions

1. First Data: First Data is a leading provider of payment processing solutions, offering a comprehensive suite of point of sale solutions for businesses of all sizes. Their ISO agent program provides competitive rates, dedicated support, and cutting-edge technology to help you succeed in the merchant services industry.

2. North American Bancard: North American Bancard is another trusted name in the payment processing industry, offering a range of point of sale solutions for businesses. Their ISO agent program provides generous commissions, ongoing training, and marketing support to help you grow your sales.

3. TSYS: TSYS is a global payment solutions provider known for its innovative technology and industry expertise. Their ISO agent program offers a competitive commission structure, access to cutting-edge payment solutions, and personalized support to help you succeed as a credit card processing agent.

4. Worldpay: Worldpay is a leading provider of payment processing solutions, offering a variety of point of sale solutions for businesses in various industries. Their ISO agent program provides competitive rates, marketing support, and resources to help you build a successful merchant services business.

5. Square: Square is a popular payment processing platform that offers point of sale solutions for small businesses. Their ISO agent program provides a simple and straightforward commission structure, as well as access to Square's suite of payment processing tools and services.

Earning Potential in the Merchant Services Industry

1. Commissions: As a credit card processing agent, you can earn commissions on every sale you make, typically ranging from 0.25% to 1% of the transaction volume. Some ISOs may offer additional bonuses or incentives for meeting sales targets or acquiring new clients.

2. Residual Income: In addition to upfront commissions, many ISO agent programs also offer residual income, which is a percentage of the ongoing transaction volume generated by your clients. This can provide a steady stream of passive income over time as you build your client portfolio.

3. Additional Revenue Streams: In addition to commissions and residual income, credit card processing agents may also earn revenue from ancillary services such as equipment leases, payment gateway fees, and value-added services. These additional revenue streams can further boost your earning potential in the merchant services industry.

4. Growth Opportunities: The merchant services industry is growing rapidly, with businesses of all sizes looking for innovative payment processing solutions. By building a strong client base and providing excellent service, you can expand your business and increase your earning potential over time.

5. Financial Freedom: With the right skills, dedication, and strategic planning, credit card processing agents have the potential to earn a substantial income and achieve financial freedom. By leveraging the resources and support provided by reputable ISOs, you can build a successful merchant services business and enjoy a rewarding career in the payment processing industry.

In conclusion, becoming a credit card processing agent can be a rewarding and lucrative career choice for individuals looking to enter the world of sales and financial services. By partnering with a reputable ISO, offering point of sale solutions to businesses, and providing excellent customer service, you can build a successful merchant services business and achieve financial freedom in the payment processing industry. With the right training, support, and determination, you can unlock your earning potential and thrive in this dynamic and growing industry.

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 processing 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:

1. Flexibility: White label payment processing allows merchants to customize the payment process to meet their specific requirements.

2. Branding: Merchants can ensure that the payment process aligns with their brand image, enhancing customer trust and loyalty.

3. Cost-effective: White label payment processing eliminates the need for merchants to invest in developing their payment processing system, saving them time and money.

4. 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

1. Research the Market: Before starting your payment processing company, it's crucial to research the market to understand the demand, competition, and potential opportunities.

2. Develop a Business Plan: Create a detailed business plan outlining your target market, revenue model, marketing strategy, and financial projections.

3. 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.

4. 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.

5. Customize Your Branding: Customize the payment processing service with your branding and integrate it seamlessly with your website or platform.

6. Market Your Services: Promote your payment processing services to merchants through marketing campaigns, partnerships, and networking events.

7. 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:

1. 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.

2. Compliance Costs: ISOs are required to comply with industry regulations, which may involve additional costs for training, audits, and certifications.

3. Technology Costs: ISOs need to invest in technology infrastructure, including payment gateways, security systems, and software development.

4. Sales and Marketing Costs: ISOs need to allocate budget for sales and marketing activities to promote their merchant services and attract new clients.

5. 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.

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    Shaw Merchant Group is a registered DBA of EPX, 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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