I love my business.
I would conservatively say that 90% of the time, I have good productive days in business.
And I will honestly admit that the 10% of time that I want to kick anyone who is around me, it usually has to do with a merchant account debacle.
Yep – the dreaded merchant account; one of businesses necessary evils.
If you want a thriving business that actually collects cash from your customers, there is no way to avoid the fact that you are going to need to set up SEVERAL accounts.
So today we are going to discuss the three biggest myths, the two biggest mistakes most people make and the one magical element surrounding merchant accounts in an online world.
The Three BIGGEST Merchant Account Myths:
• You only need one: This could not be further from the truth. Merchant processers can shut down your account at anytime and pretty much for any reason. This can be anything from going over your monthly processing limit to having a non-compliant competitor who’s casting a negative shadow over your industry. When this happens (and it will), you are losing sales (please don’t be so naive to say you will recoup those sales – you will NEVER recoup 100% of what was coming in the door). When you have multiple merchant accounts and you are using a load balancing gateway that divides the charges between them evenly, the same sales coming in from a promotion effortlessly flow from one account to another.
• Any major bank will give you one: In most cases a well known bank like Chase or Wells Fargo will NOT give you an account. Even if they allow you to do the paperwork – the underwriting process is a nightmare. And in the end you will most likely be rejected. You are better off going directly to merchant companies who specialize in your industry or niche.
The Two BIGGEST Merchant Account Mistakes:
• Thinking it is easy to set up: As a way to get business, many merchants will tell you they will have you up and running in 24 or 48 hours – BULL SH*&#. There is a tremendous amount of paperwork and back and forth. Don’t put yourself in a situation where you need one now. I will give you three recommended merchants at the end of this piece. If you have one that is working, get two more. And whatever time frame they tell you it will take to complete the process – double it and you should be good.
• Agreeing to the fixed terms: Merchant accounts are like any other deal – aspects and terms are negotiable. If you have never set an account up before – do not do it by yourself. Hire someone to walk you through the process and take notes and record everything that happens. Having someone in your corner for the first time – can be the difference in capping reserves at $250,000 compared to a million dollars.
The Merchant Account Magic:
• Watching the money roll in: Yes, there is a light at the end of the tunnel. Once you have multiple accounts with respectable terms, you can literally watch the money roll in!
Bonus Tip:
Communicate regularly: One of the most important things you can do is to talk to your merchant account rep on a regular basis. If you know you are going to have a better month than expected and sales are up even 10% – let them know. If you plan on launching a new product and your refunds may be higher due to price point – let them know.
The following recommended providers are actually ones that I currently use or have used in the past. I am not an affiliate and we receive no compensation for giving you these resources. You should vet these as you would with any business relationship.
Recommended Merchants:
• Power Pay (http://www.powerpay.biz)
• Practice Pay Solutions (https://www.practicepaysolutions.com/)
• Century Bank Card (SDS) (http://centurybankcard.com/)
Recommended Load Balancing Gateway:
• Network Merchants, Inc (http://www.nmi.com)
This single essay has provided you with valuable action items that you need to move on now – if you would like cash to continuously flow into your bank.
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