Merchant services agents are individuals or companies that act as intermediaries between payment processors and merchants who need to accept payments. They help merchants set up payment processing accounts, negotiate fees, and provide ongoing support. Merchant services agents are also known as merchant account resellers, payment processing resellers, or independent sales organizations (ISOs).
If you are considering becoming a merchant services agent, or you are a business owner who wants to understand more about merchant services, this article will provide a detailed guide on what merchant services agents do and how they can help your business.
What do Merchant Services Agents do?
Merchant services agents work with payment processing companies to offer payment processing solutions to merchants. They typically perform the following functions:
1. Merchant Account Setup
Merchant services agents help businesses set up merchant accounts with payment processing companies. This involves completing an application process, providing required documentation, and working with the payment processor to get the account approved.
2. Negotiate Fees
Merchant services agents negotiate fees on behalf of their clients. This includes transaction fees, monthly fees, chargeback fees, and any other fees associated with payment processing.
3. Provide Ongoing Support
Merchant services agents provide ongoing support to their clients. This includes troubleshooting issues with payment processing, answering questions, and providing guidance on how to optimize payment processing for their business.
4. Offer Value-Added Services
Merchant services agents may offer value-added services such as fraud prevention, chargeback mitigation, and data analytics to their clients.
How do Merchant Services Agents make money?
Merchant services agents make money by earning commissions on the payment processing fees that merchants pay. The commission structure is typically based on a percentage of the fees charged by the payment processor. The exact commission rate varies depending on the payment processor and the volume of transactions processed by the merchant.
Benefits of using a Merchant Services Agent
Using a merchant services agent offers several benefits to businesses:
1. Save Time and Money
Merchant services agents handle the payment processing setup and ongoing support for their clients, which saves businesses time and money. They also negotiate fees on behalf of their clients, which can result in cost savings.
2. Expertise and Support
Merchant services agents have expertise in payment processing and can provide guidance and support to their clients. They can help businesses optimize payment processing for their specific needs and provide ongoing support as needed.
3. Value-Added Services
Merchant services agents may offer value-added services such as fraud prevention, chargeback mitigation, and data analytics to their clients. These services can help businesses reduce the risk of fraud and chargebacks and optimize their payment processing for maximum efficiency.
How to become a Merchant Services Agent
To become a merchant services agent, you typically need to follow these steps:
1. Research Payment Processing Companies
Research payment processing companies to find one that offers a merchant services agent program. Look for a company that offers competitive fees, a wide range of payment processing solutions, and excellent customer support.
2. Apply to Become a Merchant Services Agent
Once you have identified a payment processing company that offers a merchant services agent program, complete the application process. This typically involves providing personal and business information and agreeing to the company’s terms and conditions.
3. Receive Training and Support
After you have been approved as a merchant services agent, you will receive training and support from the payment processing company. This may include training on payment processing solutions, sales and marketing support, and ongoing customer support.
4. Start Selling Payment Processing Solutions
Once you have completed the training and support provided by the payment processing company, you can start selling payment processing solutions to merchants. You will earn commissions on the payment processing fees that merchants pay.
Conclusion
Merchant services agents play a crucial role in the payment processing industry by providing valuable services to businesses that need to accept payments. They help businesses save time and money by handling payment processing setup and ongoing support, negotiating fees, and providing value-added services such as fraud prevention and chargeback mitigation.