Cost vs Price

Sunday, October 22, 2017

 

Select the RIGHT Processor:
It’s GOOD
for your BOTTOM LINE

This past week a member of our team spent 2 ½ hours on the phone with a new merchant of ours- combing through the statements of their previous processor. The merchant was missing transactions and their statement was not an easy one to figure out. The reason WE were on the line and not their PREVIOUS processor? Their previous processing company would not take the time to go through the statements with them- UNBELIEVABLE. It is NOT so unbelievable that they now find themselves short, one more unhappy business owner!
(We’ll take it from here!
)

Many potential business owners ask us the same question- what fees do you charge- what is the COST? And while the fee structure is a critical component- the actual COST of a merchant account goes much deeper. Selecting the RIGHT partner is GOOD for your bottom line. Here are a few things to consider when evaluating your current solution or a new processing partner.

OVERALL EFFECTIVE RATE:

When you divide the amount of processing volume INTO the fees paid to process that volume- you get your overall effective rate. This is a MUCH MORE accurate way of determining what your fees are with any processing company. This is also a very rapid way to make sure you do not have any pricing weirdness happening on your monthly statement and YES- we advise our merchants to look at their statement every single month (TRUST but verify). Lots of sales people will lure you in with the promise of LOW rates/fees- knowing your overall effective rate and checking it each month will help you verify that you’ve got a major component of the processing puzzle in place.

EDUCATION STATION

Another MAJOR component of making sure you have the right partner is the education piece. Since the product of merchant services is almost like buying TP (gotta have it- not in love with the idea of shopping for it)- lots of the sales reps in our industry treat themselves like the commodities they are (we apologize for the TP reference)! When you have the RIGHT partner you still get the commoditized product- but you ALSO get the education that is so vital in an ever-changing industry. These rare companies also take the time to explain things like statements, pricing tiers and new methods of processing to you- so you’ll never have to toss your hands in the air and go price shopping again- they take care of you AND your bottom line.

CUSTOMER SERVICE (YES! It still exists!!!!)

They say customer service is only important when you NEED IT and in the processing industry EVERYONE talks a good game regarding service. Delivering on that promise is an altogether different story. It takes TIME and MONEY to switch credit card processing companies (when you find that the poor company needs to be flushed) and SMART business owners do not change their providers like they change their clothing! In order to be in that enviable position (having a processor that has the best combination of pricing/education & service)- you’ve got to make the service level part of the bottom line conversation. Zig Ziglar once said he’d rather explain price once than apologize for poor service or faulty products forever. In other words, you definitely get what you pay for in the service department.

  • We do not know very many business owners who have an additional 2 hours here or there to spend combing through their merchant statements, trying to figure out their fees.
  • We do not know very many business owners who cannot benefit from an education minded processing partner.
  • We do not know ANY business owners who can afford to let the poor service in the credit card processing business eat away at their TIME and their BOTTOM LINE!

Our team is here to help you REDUCE FRUSTRATION, INCREASE YOUR BOTTOM LINE & ENHANCE YOUR PASSION FOR BEING IN BUSINESS (Oh- and we sell that commoditized product of Merchant Services too).

 
Cheri Perry 10/22/2017

Add your comments:

Items in bold indicate required information.