An extremely important but seldom talked about topic regarding credit card processing is that of merchant account holds. One of the most financially devastating things that can happen to a business is for a processing bank to freeze its merchant account. If this happens to your merchant account, you won’t be able to access the account and your funds from open authorizations will be held without deposit for an undisclosed period of time. This means that you can’t accept new chow much can you make selling merchant servicesredit card transactions and the income from recently processed transactions will not be deposited for days, weeks or longer. Merchant account holds are behind many of the horror stories that you may have read about online or heard from friends. Merchants are often portrayed as the victim in these stories, but there are two sides to every coin. In this article I’ll discuss why processing banks hold merchant accounts, how you can avoid having this happen to you and what you can do if a hold is put on your account. The electronic bankcard and payments industry is without a doubt one of the most competitive financial industries and competition breeds excellent marketing and sales forces. Merchant service companies aren’t slackers when it comes to recognizing a new angle that will help sell more merchant accounts. If their agents can sign more accounts by calling themselves merchant account consultants rather than salespeople, it’s hardly a difficult decision.
So let’s assume for a second that most of the companies touting themselves are merchant account consultants are in fact salespeople. Is this a bad thing? After all, this author for one stresses the importance of finding a consultative merchant service provider. The problem is that the act of being consultative doesn’t guarantee the accuracy of the information being provided. In order to be a bona fide consultant, a professional needs something or someone to validate their credentials.
So what about the independent payment consultants out there? They do exist. I frequent many of their informative web sites almost every day. Why can’t the average merchant contact these professionals for assistance in getting the best merchant account? Well, they can if they want to pay the service fee. Not surprisingly, for many merchants and small businesses owners another fee just isn’t in the cards %u2013 pun intended.
So what are your options if you’re looking for a merchant account but you don’t have the time or the desire to become an expert in the electronic bankcard field? You could pay a bona fide consultant, but they’re expensive and a bit overkill for the average merchant. You could find a knowledgeable merchant service provider willing to educate you through the sales process, but it’s tough to know if what they’re telling you is accurate. So it looks like we’re back to square one %u2013 but not quite. Here are some tips to help you tell the real merchant account consultants and truly knowledgeable sales reps from the ones that are just giving themselves a new title to sell more accounts. If you’re going to employ the services of a bona fide merchant account consultant, here are a few things that you can do to make sure you’re getting a knowledgeable professional that’s looking out for your best interest. You should feel confident in a salesperson’s knowledge of the industry. You don’t need to be an expert to tell if a salesperson is just getting by or if they really know what they’re talking about. There’s a high turnover of salespeople in the payments industry and many salespeople hit the street with little more than an introductory course on the basics of credit card processing. These salespeople tend to keep subject matter superficial and explain things very quickly. If you don’t feel that a salesperson has a true knowledge of what they’re telling you, look elsewhere. changes that could affect how much you pay for processing. Your salesperson will become your advisor should you choose to utilize their processing services and they should know enough about the industry to keep you updated. Look for a salesperson that has experience in the industry.
As a matter of privacy, sometimes references are hard to come by in the processing industry. However, if you push hard enough a salesperson should be able to produce at least one or two references that you can use to verify credentials. Be wary of shifty explanations and dismissive tone. I’ve listened to a lot of sales pitches that sound great but are less than accurate to say the least. A great example of this behavior has to do with a merchant account monthly minimum. Monthly minimums have always been a tough sell because providers use them to cover costs and merchants feel like they’re paying for nothing. Many salespeople skid around the topic by saying something like, “the minimum won’t affect you because you’re planning to process more than $2, 000 each month. ” Many merchants shrug in acceptance and move on with the sales process.
If you notice that a salesperson in quickly moving through what seems like an important point or if they’re overly dismissive, ask for a thorough explanation. If their explanation doesn’t put you at ease, consider looking elsewhere for processing. Payment processing is an increasingly complicated and important aspect of business. You need all the help you can get, and sometimes a merchant account consultant is the answer. If a bona fide consultant is not in the cards, search for a sales representative that’s willing to take the time to work with you, learn about your business and educate you. Online comparison services like CardFellow. com are another great middle of the road option. Sites like this can help you find the consultative representative through reviews and multiple quotes.