In the modern day, consumers are making more of their payments electronically as opposed to carrying cash around. The benefits of making payments electronically are prevalent, and the advances in technology have made the process very safe and quick, a plus for both customers and merchants selling their commodities.
Selling credit card processing is a lucrative venture that could be very rewarding if you get it right. Read below and find out more about this venture and how best you could approach it if you decide to do so.
What Is Credit Card Processing?
This is the control of a series of steps that involve the transfer of money between a sellers’ account, the banks, and card schemes. It all sets off when a buyer opts to pay for a commodity online, and the information goes through several gateways in a bid to confirm the payment. The entire process just takes seconds for it to reach its completion, but do not be misled by this short timespan and think that it is anything near simple.
The entire process of credit processing can be summed up in six distinct steps. Most of these steps involve transferring of information associated with the cardholder from one level to the other while requesting authorization. The main aim of the process is to determine whether the buyer has the required amount of money to pay for the commodities they have purchased. The speed of the process largely depends on the credit card processing service provider with reliability and speed being a primary concern.
Players in Credit Card Processing.
This process begins when the consumers, swipes, dips or hand over their payment information to the merchant. It may be done physically at the general merchandise stores or when one is purchasing items on the internet, and they are prompted to key in their credit card information.
The seller accepts the payment information, and this can happen in two different ways. It can be done through the storefronts by the use of a credit card reader or through the web for transactions that just prompt for the information and not the card itself.
3. Processing Phase.
The processor obtains the information needed to complete the process. This information helps to route the data across all the other phases and bridges the communication barriers between different entities. In a nutshell, the processor sends the data to the card network.
4. Card Network.
These are the mediums responsible for the communication between the processor and the consumer’s bank. The common ones are Visa and Mastercard.
5. Consumer Bank.
When the holder’s bank receives the payment request, it verifies the associated account has the required amount of money to make the payment. It may also take some security measures to ascertain if the request is legit and not a case of malicious action. Once the information is authorized and there is enough money in the account, they give a green light that allows the transaction to go through.
The message from the bank is channeled back to the same path all the way to the merchants terminal. It may be approved or declined based on several factors. If it is accepted, the customer receives a receipt and completes the transaction.
How To Sell Credit Card Processing?
With the increased popularity of credit card payments, it is evident that selling credit card processing can be a lucrative venture. But how do you do it and ensure that you get it right? How much can one make? You might be wondering how you can make money from this business yet the transaction is strictly within card network, merchant and bank networks?
Well, the amount of money you make through this venture is based on how hard you work. If you put in an extra effort be sure to reap in handsome rewards annually. If you sign up a new merchant, there is some specific amount of money you get for just doing that depending on the service provider. This is a good way of getting some money right away, save for the additional bonuses that might come through. However, do not think that is where the rewards end as where the real money is made has not even been mentioned.
To explain more about how money is made from credit card processing, it is vital to introduce the residuals.
What Are The Residuals?
The real money is made every time one of the merchant accounts runs a payment. The percentage deducted may range from a few pennies to several dollars depending on the transaction, and the portion agreed on. The sales representative who saw through this payment receives a percentage of this money depending on the agreement.
It is undeniable that the amount of money received may not seem to be significant. So how do you make a tremendous amount of money say in a year? If a sales rep works hard and gets a substantial number of merchants on the card processing service in a month, they will incredibly increase their monthly income per month, and this could sum up to lucrative amounts annually.
Top Reasons To Sell Credit Card Processing.
With the plethora of business ventures around, you might wonder why you need to venture into the credit card processing business. Here are some of the top reasons to make this move;
1. Consistent Income.
When you decide to become a sales rep, there is no cap on the amount of money you can make. It has been mentioned that the amount of money you can make is purely related to how hard you work and how many merchants you get for every month or year. You can start off by working extra hard and establish your quarterly, monthly and annual bonuses then find yourself earning a lot of money consistently.
2. Business Building Potential.
Working as a sales rep for a credit processing company gives you a perfect opportunity to build your own business. Some of the companies you work for could offer you a lifetime residual opportunity as long as the clients you brought in continue making credit card processing transactions. If you start off on a high note and build a strong client base, and then start enjoying your income flow. Some salespeople do not need to close a new deal but will still make money every month.
3. Control Your Income.
It is evident that working from eight to five is quite boring and cliché. Well, the sad truth is that most regular jobs that generate a steady income require one to work during this period. However, selling credit card processing gives you a chance of earning some reasonable amount of money without working from eight to five. The amount of money you make by selling credit card processing is entirely reliant on the effort you put in. No company will give you a rigid timeline to follow, and you are in charge of your income.
Selling credit card processing is not a venture that you will be isolated once you step into it. There is a lot of support from the service providers, something that will make your work easier and help you to manage any arising issues quickly.
The days where you had to get a regular job for you to enjoy a steady income are long gone as you could become a credit card processing sales rep and enjoy.
How To Be A Successful Credit Card Processing Agent.
For you to enjoy the benefits of being a credit card processing agent, you should be aware of some of the significant things that you need to take care of. This line of business will not work well for everyone as it could equally turn out to be unsuccessful if you are not careful. Here are some of the tips for becoming a successful credit card processing agent.
Understand Your Trade.
The pricing aspect of credit card processing is quite sophisticated. It is vital to be extra keen on the details and understand the logistics associated with the merchant deal so that you do not find it hard to explain the savings opportunity you are giving the merchant. The merchants will ask many questions, and a good sales rep should be able to answer all of them diligently. It is vital to get adequate training and a good grasp of the statements for you to be on the front foot at all times.
Transparency Is Key.
Merchants dislike credit card processing as they view it as an unnecessary tax on their earnings. Things get worse when they do not understand them completely. You should be transparent with your merchants and educate them on what they are paying them. Try and spot any errors and correct them promptly while giving merchants a chance of raising any queries regarding parts of the statements that they do not like.
If you consult the established sales reps around, you will see that there are several approaches of going about this trade. However, one consistent thing you will see from these reps is that none of them dived into this venture without a clear plan. You cannot become successful in this business by sheer magic as you have to strategize well for you to be successful. Set a clear strategy, and evaluate your achievements after a set period, as this will, help you to know whether your plans are working or not.
Select Your Merchant Services Partner Well.
Selecting merchants services partner is like diving into the red sea, since there is very little regulation with a sophisticated pricing structure. Due to these various issues associated with merchant service providers, it is common to see some of them misleading and lying to the sales rep. Most service providers will advertise attractive terms, some of which are not even realistic, in a bid to lure unknowing sales reps. Do not be carried away by these flattering promises and take your time to find a reliable service provider. Your success or failure in this largely depends on the service provider you choose and your efforts will go to waste if your partner a rogue provider.
Ways To Sell Credit Card Processing Services To Merchants
You are not limited to anything when it comes to selling credit card processing to merchants. While the options are numerous, there are three main ways you could do it as indicated below;
Your Own Company.
This is the most precise way of doing this, but it has the downfall of a huge capital base requirement. If you get it right, you could be in charge of a very lucrative venture. Once you decide to start such an establishment, your primary role will be to establish a connection between the credit card networks to the merchants. After doing this, you will collect the initial charges and the continuous transaction fees as well.
If you have enough capital, you can venture into selling the point of sale systems and the machines themselves. Keep in mind that registration is subject to a strict approval process and it costs a fortune.
Become A Sales Rep.
When you become a sales rep, you are tasked with bringing in new clients. You are also expected to do research and collect information which will help you to seal sales at the end of the day. By doing this, you do not need to start your firm which requires a lot of money and is subject to a strict approval process. You should be careful and find a reliable credit card processing service provider for you to have high chances of making a lot of money.
Promotion As An Affiliate Marketer.
This may seem to be the least lucrative way of selling credit card processing. The required capital is significantly low, and all you are tasked to do is to promote the service providers online and then get commissions when they make sales.
It has been seen that the credit card processing venture can be very lucrative if you get your act right. This piece has highlighted some of the basic information required to set off your career in credit card processing and if you find it attractive, make your move.