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Are you facing major competition in the market because most of the merchants are working with Square? Well, Square does have a big share of the market, but that doesn't mean that they will take over every industry, and you will not be left with anything.
This guide will help you find out how you can become better at selling credit card processing against Square and convince the merchant to make a switch to your merchant services ISO program. To know all of this, make sure to read this guide till the very end:
Difference Between Merchant Accounts And Square:
Stability of Account:
There is a major difference between both service providers when it comes to the stability of the merchant account. With Square, the merchant can get slapped with payment hold anytime Square thinks the transaction is a risk or that it is very large in volume. This can cause delays in receiving the payment, causing problems for the merchant.
However, with the merchant accounts, this is not really an issue. Since the merchant services ISO program accepts a merchant's application after a rigorous vetting process, they trust them more. There is a very minimal chance of them holding any transaction.
Furthermore, you need to understand that if a business is considered as high risk as if it deals in niches such as CBD or entertainment, then Square will not work with you. They have less risk tolerance, but with big ISO partner programs like North American Bancard, high-risk industries are accepted as well.
There are Significant Price Differences:
No matter whether you are running a big business or a small one, every single penny matters. With Square, the merchants will be paying a flat 2.6% fee per transaction and along with a $0.10 fee. The cost will further increase in offline or manual transactions. There are no hidden charges or contract fees, and merchants only pay for every transaction.
However, with merchant accounts, the pricing structures are different. Although they vary from company to company, it is usually a low-cost model. Furthermore, with some of the best cash discounting programs like EDGE by North American Bancard, merchants don't even have to pay that fee. It is offset to the customers, so they bear the cost of their transaction.
Customer Service and Support:
Companies like Square will never offer as fast, and thorough support as the merchant account reseller programs do. The reason is that they are one company handling thousands of merchants, they cannot have a massive team in place to handle queries the minute they are entered in their system. Customers need to get a code to be able to call the support of the Square, and even then, the live support won't be available 24/7.
So in case of any technical difficulty, getting the payment held or account suspended, merchants cannot quickly communicate with them. Merchant programs, on the other hand, offer excellent customer service and fast responses. Although not all of them will offer better customer support, the top ones usually do.
Software and Hardware Compatibility:
For basic features, Square works great. Their systems are very easy to set up and perfect for very basic and small businesses. However, the costs for their hardware are very high. The contactless, Chip Reader, will cost only $49, but this is without the cost of receipt printer, which is an additional $299. Furthermore, their register plus POS system can cost around $800 while the simple Square terminal sells for $299.
If we talk about selling credit card processing equipment for merchant account providers, then besides having robust and more advanced technology, their EMV compliant POS terminals with built-in printer for a receipt can be sold for as low as $229. Some of the big merchant account providers also offer free POS while you cannot expect that from Square. So businesses that are operating on a very small level and can shell out a few extra bucks at the start, the Square is the best choice. However, those that need advanced features can opt for merchant services sales programs.
Training for Merchants:
Training is the key part when it comes to learning how to use the POS equipment, the mobile payments systems, and how the whole merchant account thing works in general. However, if a business is working with Square, they are less likely to receive the kind of training that helps them understand the game better. Square has no reps working in the field that can train the merchants.
However, there are thousands of merchant services agents roaming around the streets, engaging with merchants, and helping them learn the ropes of the service they offer. This helps with credibility as well because you put a face to the merchant ISO program you are promoting, so the merchant is likely to convert.
How to Sell Merchant Accounts Against Square?
Now that you understand the main, key differences between both models, it will be easier for you to pitch the unique selling points and benefits of the merchant services ISO program and change a merchant's mind. Here are some things you should do:
Discuss the Fees and Pricing:
The first thing you should do to break the ice is to ask for the fee the merchant is paying for the account. You can ask, 'so are you paying a 2.6% fee, and you like it because there are no hidden charges, right?' He will likely say 'yes' to that.
You can then take out your phone, go to the pricing page of Square and show them that there are different types of costs, like for non-swipe cost is 3.5% + $0.15, and the cost for the online purchase is 2.9% + $0.3.
This will definitely throw them into doubt, and they will be ready to listen to you further. You can now do two things here, either offer lower pricing or offer a zero-fee solution. With low pricing, you will do exactly as it sounds, you will offer a lower fee like 2.4%, but this might not really motivate them to make the switch unless you offer a really low price.
You can also go for the zero-fee, or as we call it, cash discounting route. Here you can suggest the merchant that you will offer them a solution that will eliminate their fees altogether. Now, this is something that will get the merchant's attention, and he will be ready to listen further. So here, you will start telling him about the cash discounting program. The cost for each transaction will be shifted to the customer who is making the transaction.
This way, the merchant doesn't have to pay any fee at all, and since the customer is using the facility of credit card, they would not have much problem paying the fee. If the merchant pays the fee for every customer, then he will be paying a lot on a monthly basis. So it is better to shift the fee on to the customers and let them handle the cost for the convenience they are getting.
Offer Buy Back to Close the Deal:
Now once you offer the cash discounting program to the merchant, he will likely take your offer. But because he paid a lot of money in the equipment from the Square program, he will be hesitant to make the switch. This is where you can offer him a buy back offer, which is just buying the square equipment from him, and then you can sell it on eBay.
You might not just recover your cost, but you might also make a good profit on the equipment. Once you solve this problem as well, there will be no way for the merchant to refuse your offer, and he will likely make the switch and convert.
Tip: Reach Out to High-Risk Industry Businesses:
A small but very useful tip that will help you a lot is to reach out to the high-risk industry businesses. These are the kind of merchants that are likely not going to be accepted by Square, or they may have been rejected by them.
So there is always a greater chance that you can convert them. You can pitch your offer and tell them that not only will they be accepted by your merchant services agents program, but they will also be getting more benefits than they would have with Square. So this is something that can help you further scale your business as well.
Over to You:
Selling credit card processing service against the Square program is not really that hard if you know what you are really doing and if you know the difference between both. By knowing where the square program lacks, you can make a better offer to the merchant. You can tell him the benefits that he will be getting with the ISO partner program. This will likely and any kind of merchant and increase your chances of making the sale.
If you have questions, would like more information or if you are ready to get started please click the button below to leave your name and contact information.
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