How do these non bank related card processing companies work?
Posted on July 4th, 2010 by admin
for the past 15 years I have used, through my bank, a major card processing (merchant services) company with never a hitch. I do feel they get spendy, but now an independent card processing company gave me a proposal that would save $100 per month. They do have a good rap sheet but I can’t figure how they make money and would it be wise to change for only the small amount they can save?
In my experience the interesting thing about the merchant services business is how may competitors are out that and how everyone of them are willing to undercut the other to gain your business. I always advise my clients to shop around. You may not get the best deal at first, but once you start and stay with a company for a little while and then shop again the deal will get better and better. Merchant services make their money off your sales, with very little to no overhead so its easy for them to undercut.
I would go with the better deal. If you are very comfortable with your current processor (peace of mind is priceless) you can show them the proposal and they may match that offer.
Hope this helps!
July 4th, 2010 at 1:47 pm
In my experience the interesting thing about the merchant services business is how may competitors are out that and how everyone of them are willing to undercut the other to gain your business. I always advise my clients to shop around. You may not get the best deal at first, but once you start and stay with a company for a little while and then shop again the deal will get better and better. Merchant services make their money off your sales, with very little to no overhead so its easy for them to undercut.
I would go with the better deal. If you are very comfortable with your current processor (peace of mind is priceless) you can show them the proposal and they may match that offer.
Hope this helps!
References :
In the banking industry