Comments on: How to Negotiate with Merchant Service Providers http://www.noobpreneur.com/2009/04/17/how-to-negotiate-with-merchant-service-providers/ Business Opportunities, Entrepreneur Resources and Tools, Business Reviews Sat, 11 Feb 2012 02:41:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Noobpreneur http://www.noobpreneur.com/2009/04/17/how-to-negotiate-with-merchant-service-providers/comment-page-1/#comment-4875 Noobpreneur Wed, 28 Oct 2009 07:01:23 +0000 http://www.noobpreneur.com/?p=1137#comment-4875 Well said. The take and give situation is often underestimated - You need them as much as they need you. So, why falter and accept terms less beneficial? Well said. The take and give situation is often underestimated – You need them as much as they need you. So, why falter and accept terms less beneficial?

]]> By: First Data Merchant Credit Card Processing Services http://www.noobpreneur.com/2009/04/17/how-to-negotiate-with-merchant-service-providers/comment-page-1/#comment-4864 First Data Merchant Credit Card Processing Services Tue, 27 Oct 2009 18:34:42 +0000 http://www.noobpreneur.com/?p=1137#comment-4864 If you are prepared to open your mouth and discuss different options with a representative,it is easy to negotiate with merchant service provider. Every merchant account you come across has one thing in common: The company providing it wants your business. If you remember this, you would be able to save a lot dollars a year. If you are prepared to open your mouth and discuss different options with a representative,it is easy to negotiate with merchant service provider. Every merchant account you come across has one thing in common: The company providing it wants your business. If you remember this, you would be able to save a lot dollars a year.

]]> By: Betsy Brottlund http://www.noobpreneur.com/2009/04/17/how-to-negotiate-with-merchant-service-providers/comment-page-1/#comment-3056 Betsy Brottlund Mon, 18 May 2009 15:33:17 +0000 http://www.noobpreneur.com/?p=1137#comment-3056 Thanks Mike. Appreciate the additional tips. Thanks Mike. Appreciate the additional tips.

]]> By: MIchael Stone http://www.noobpreneur.com/2009/04/17/how-to-negotiate-with-merchant-service-providers/comment-page-1/#comment-2842 MIchael Stone Tue, 28 Apr 2009 10:09:24 +0000 http://www.noobpreneur.com/?p=1137#comment-2842 Betsy, Thank you for this post. As someone very familiar with the Merchant Services Industry, with all due respect, here are a few further suggestions...(and disclosure) Although there are thousands of companies that offer these services, there are only a handful that actually "perform" the services. Most organizations are simply Independent Sales Otganizations, or ISOs that simply work as middle-men between you and the actual provider (therefore adding profits at every step) Many ISO's actually repreent a local bank. Since the local bank doesn't actually do processing they are often selling on behalf of another ISO that represents an actual processor. There an be as many as six "middle-men" between you and the actual processor. The problem is, it is an unregulated industry and many of these ISOs represent themselves as direct, when in fact they are not. As far as the equipment, just purchase it. Leasing equipment is one of the most outrageous and sickening trends of the ISO industry. The worse case I am aware of is someone leasing a $200 machine for $59/month for... ready for this... 16 years. That's about $11,000 more than cost. Nothing is free and anything you work into the deal is going to cost you more in the long run. Remember, this is an unregulated industry. A brand new terminal can be purchased for as little as $200. If you are just starting out you can buy used on e-bay. (Note: if you sell terminals on ebay make sure you clear the software so noone can access your bank accounts). Never pay for software and make sure your terminal, or software is not proprietary. This will prevent you form using that terminal with any other provider if you decide to switch. At this time, portable terminals wholesale at over $1,000. Be careful with anyone offering a free one. UNless you are doing > $500,000 in CC processing you are getting ripped off by anyone giving away a free wireless terminal - guaranteed! Betsy, than you very much. I hope this helps Mike Betsy, Thank you for this post. As someone very familiar with the Merchant Services Industry, with all due respect, here are a few further suggestions…(and disclosure)
Although there are thousands of companies that offer these services, there are only a handful that actually “perform” the services. Most organizations are simply Independent Sales Otganizations, or ISOs that simply work as middle-men between you and the actual provider (therefore adding profits at every step) Many ISO’s actually repreent a local bank. Since the local bank doesn’t actually do processing they are often selling on behalf of another ISO that represents an actual processor. There an be as many as six “middle-men” between you and the actual processor. The problem is, it is an unregulated industry and many of these ISOs represent themselves as direct, when in fact they are not.

As far as the equipment, just purchase it. Leasing equipment is one of the most outrageous and sickening trends of the ISO industry. The worse case I am aware of is someone leasing a $200 machine for $59/month for… ready for this… 16 years. That’s about $11,000 more than cost.

Nothing is free and anything you work into the deal is going to cost you more in the long run. Remember, this is an unregulated industry. A brand new terminal can be purchased for as little as $200. If you are just starting out you can buy used on e-bay. (Note: if you sell terminals on ebay make sure you clear the software so noone can access your bank accounts).

Never pay for software and make sure your terminal, or software is not proprietary. This will prevent you form using that terminal with any other provider if you decide to switch.

At this time, portable terminals wholesale at over $1,000. Be careful with anyone offering a free one. UNless you are doing > $500,000 in CC processing you are getting ripped off by anyone giving away a free wireless terminal – guaranteed!

Betsy, than you very much.
I hope this helps
Mike

]]> By: Noobpreneur http://www.noobpreneur.com/2009/04/17/how-to-negotiate-with-merchant-service-providers/comment-page-1/#comment-2720 Noobpreneur Wed, 22 Apr 2009 15:00:00 +0000 http://www.noobpreneur.com/?p=1137#comment-2720 Thanks :) Thanks :)

]]> By: court http://www.noobpreneur.com/2009/04/17/how-to-negotiate-with-merchant-service-providers/comment-page-1/#comment-2717 court Wed, 22 Apr 2009 13:00:19 +0000 http://www.noobpreneur.com/?p=1137#comment-2717 Some great tips Some great tips

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