Finding the Best Merchant Services Broker or Card Processing Consultants

Merchant Services Brokers: What They Do, How They Are Paid and How to Choose One

A merchant services broker can help a business find a provider for card payments, payment gateways, terminals and more complex payment requirements.

But companies using the title merchant services broker do not all provide the same service.

One may review several providers and help prepare a detailed merchant-account application.

Another may represent one acquiring partner and pass the merchant directly to its sales team.

A comparison website may automatically distribute the enquiry to several companies.

An independent payment consultant may charge the business directly for analysing its costs, technology or payment strategy.

Before relying on any recommendation, the merchant should understand:

• Which providers the broker can access
• Whether the broker represents one provider or several
• How the broker is paid
• Whether commission differs between providers
• Whether the broker has reviewed the business properly
• Which providers were genuinely considered
• Who receives the merchant’s information
• Who conducts underwriting
• Who issues the contract
• Who processes and settles the money
• Whether the broker is providing regulated payment or finance services
• Who is responsible if something goes wrong

Using a broker can be valuable where the business has:

• Complex integration requirements
• Previous merchant-account termination
• Higher chargebacks or refunds
• Future-delivery exposure
• International processing
• High-value transactions
• Subscription payments
• Restricted or specialist products
• Several sales channels
• Difficulty understanding provider quotations

However, a broker should improve the quality of the application and narrow the provider options.

It should not simply send the merchant’s contact details to several sales companies without explaining what will happen next.

This guide explains what merchant services brokers do, how they earn money and how to assess whether a recommendation is genuinely relevant to the business.

---

Find Your New Processor

Quick answer: What is a merchant services broker?

A merchant services broker helps connect businesses requiring payment services with potential payment providers.

Depending on the broker, this may include:

• Understanding the business and payment model
• Reviewing existing statements
• Identifying potentially suitable providers
• Explaining payment options
• Helping prepare an application
• Arranging introductions
• Comparing quotations
• Supporting negotiations
• Helping coordinate onboarding or migration

The broker does not normally make the final underwriting decision.

The payment provider remains responsible for matters such as:

• Business verification
• Owner and director checks
• Risk assessment
• Pricing
• Settlement
• Rolling reserves
• Transaction limits
• Contract terms
• Approval or decline

A broker’s recommendation that a provider appears suitable is therefore not the same as a confirmed merchant-account approval.

---

What is the difference between a broker and a payment provider?

The broker and payment provider may be separate businesses with different responsibilities.

Merchant services broker

The broker may:

• Gather information from the merchant
• Assess initial provider fit
• Explain available routes
• Introduce the merchant
• Help compare options
• Receive commission for a completed introduction

Payment provider or acquirer

The provider may:

• Conduct KYC and KYB checks
• Underwrite the application
• Issue the merchant agreement
• Approve the products and sales channels
• Set pricing and reserve terms
• Process transactions
• Settle money
• Manage refunds and disputes
• Monitor the live account

The contract should identify the legal entity actually supplying the payment service.

Do not assume the company that introduced the provider will also:

• Hold or settle funds
• Handle chargebacks
• Control reserves
• Provide technical support
• Make risk decisions

---

Merchant services terminology is not used consistently

Several businesses may appear to offer a similar service while operating under different models.

These descriptions are not always applied consistently.

The important question is not only:

What does the company call itself?

It is:

What does the company actually do, who does it represent and which legal entity will contract with the merchant?

---

Find Your New Processor

What should a good merchant services broker do?

A useful broker should first understand the business.

That normally means asking about:

• Products and services
• Customer journey
• Legal company
• Owners and directors
• Current provider
• Monthly card turnover
• Transaction count
• Average transaction value
• Maximum transaction value
• Card-present, online and MOTO activity
• Customer and cardholder countries
• Consumer and commercial-card mix
• Fulfilment period
• Refunds and chargebacks
• Previous merchant-account history
• Required integrations
• Settlement requirements
• Recurring or subscription payments
• Reasons for changing provider

The broker can then use that information to identify providers that appear to have a relevant combination of:

• Sector appetite
• Geographic coverage
• Payment functionality
• Integration capability
• Transaction limits
• Settlement terms
• Commercial pricing

The purpose should be to reduce unsuitable applications rather than submit the same limited information everywhere.

---

MAS insight: A broker should assess suitability before price

A provider offering the lowest indicative rate is not useful if it cannot support:

• The business sector
• Required countries
• Maximum transaction value
• Future-delivery model
• Subscription arrangement
• Required gateway
• Existing software
• Telephone payments
• Marketplace structure
• Settlement requirement

The correct order is:

1. Establish provider suitability.
2. Confirm the business can be considered.
3. Complete underwriting.
4. Compare final pricing and terms.

A headline quote obtained before the provider understands the business may change substantially during underwriting.

---

What information should a broker gather?

A broker does not necessarily need every underwriting document at the first conversation.

However, it should gather enough information to distinguish between realistic and unrealistic provider routes.

Business information

• Legal company name
• Trading name
• Website
• Registered country
• Business activity
• Ownership
• Trading history
• Required licences or permissions

Processing information

• Monthly and annual card turnover
• Transaction count
• Average transaction
• Maximum transaction
• Card-present, ecommerce and MOTO split
• Recurring-payment activity
• International processing
• Expected growth

Risk and fulfilment information

• Time between payment and delivery
• Refund rate
• Chargeback rate
• Fraud history
• Previous provider decline or termination
• Existing reserve
• Customer complaints
• Unfulfilled customer value

Technical information

• Ecommerce platform
• EPOS
• Booking system
• CRM
• Subscription platform
• Payment gateway
• API requirements
• Payment links
• Virtual terminal
• Token migration
• Reporting requirements

For more complex applications, see the MAS guide to high-risk merchant account applications.

---

Lead distribution versus suitability-led matching

Not every introduction service carries out detailed payment analysis.

Lead distribution

A basic lead-distribution model may collect:

• Name
• Telephone number
• Email
• Approximate turnover

The enquiry may then be passed to one or more sales teams.

This can be useful for a straightforward business seeking general quotations.

However, it may not establish whether the providers can genuinely support the merchant.

Suitability-led matching

A more detailed process considers:

• Business model
• MCC or sector
• Provider appetite
• Sales channels
• Customer locations
• Payment methods
• Transaction profile
• Fulfilment
• Integration
• Previous account history
• Commercial priorities

This approach is more useful for businesses with complicated or specialist requirements.

Before submitting an enquiry, ask:

Will my details simply be distributed, or will someone assess which provider is relevant first?

---

Find Your New Processor

How are merchant services brokers paid?

Merchant services brokers can use several commercial models.

One-off referral payment

The broker receives a payment when an introduced merchant opens or activates an account.

Ongoing revenue share

The broker receives an agreed share of revenue generated from the merchant’s processing.

This is sometimes called:

• Residual commission
• Recurring commission
• Revenue share
• Portfolio income

Provider-paid commission

The payment provider funds the broker from its own commercial arrangement.

There may be no separate invoice to the merchant.

Margin within the merchant price

In some arrangements, the commercial pricing offered to the merchant may include a margin associated with the sales or distribution partner.

The merchant should ask how the final price is constructed.

Merchant-paid consulting fee

An independent consultant may charge the business directly for:

• Cost analysis
• Provider selection
• Tender management
• Negotiation
• Payment strategy
• Implementation support

Combined model

A business may receive:

• A fee from the merchant
• Provider commission
• Or both

Any direct fee should be explained before the merchant agrees to the service.

---

Does commission make a recommendation biased?

Not automatically.

Most commercial introducers need a way to fund their work.

The more important questions are:

• Which providers can the broker access?
• Does commission differ between providers?
• Does the broker receive more for recommending a particular route?
• Is the broker tied to one provider?
• Is any margin added to the merchant’s price?
• Has the broker explained its commercial model?
• Does the recommendation make sense for the business?
• Were realistic alternatives considered?

A commission-funded service can still produce a suitable recommendation.

A merchant-paid consultant can still have limited knowledge or market access.

The payment method alone does not prove the quality of the advice.

Transparency, provider coverage and the reasoning behind the recommendation matter more.

---

Does using a broker make card processing more expensive?

Not necessarily.

Possible outcomes include:

• The provider offers the same standard pricing through the broker.
• The broker has negotiated partner pricing.
• The provider includes a distribution margin.
• The broker helps obtain improved commercial terms.
• The broker introduces a more suitable but more expensive service.
• The merchant pays the broker a separate fee.

The only reliable way to know is to compare the complete written offer.

Review:

• Transaction percentages
• Fixed transaction fees
• Authorisation charges
• Gateway
• Terminals
• Monthly fees
• Refund and chargeback charges
• Settlement
• Reserve
• Contract
• Broker or consultancy fee

See the MAS guide to comparing card-processing quotes.

---

MAS insight: Free does not mean cost should be ignored

A broker may provide its service without charging the merchant directly.

That can be valuable.

However, the merchant should still ask:

• How is the broker paid?
• Does it receive ongoing commission?
• Does commission vary?
• Is the quoted provider price the final price?
• Could the merchant approach the provider directly?
• Would direct pricing be different?
• Is the broker providing ongoing support?

A service being free at the point of enquiry does not remove the need to understand its commercial model.

---

Is a merchant services broker independent?

The word independent can mean different things.

A broker may be independent from one particular provider but still have:

• A limited panel
• Preferred partners
• Providers it cannot access
• Different commercial arrangements
• Specialist relationships
• Minimum-volume requirements
• Geographic restrictions

It does not necessarily mean:

• Every UK provider is compared.
• Every provider accepts broker introductions.
• Every available product is considered.
• Commission is identical.
• The broker has no commercial preferences.

Ask:

How many providers were realistically considered for my business and why was this provider recommended?

That is more useful than counting the provider logos on a website.

---

Independent does not necessarily mean whole of market

A broker may provide an independent assessment without comparing every provider operating in the market.

This can happen because:

• Some providers do not accept intermediary business.
• Some do not operate in the merchant’s sector.
• Some cannot support the integration.
• Some do not serve the relevant countries.
• Some have unsuitable transaction limits.
• The broker has no commercial relationship with them.
• The broker operates through a selected panel.

A broker should not imply that the entire market has been reviewed where that is not the case.

A clear description would be:

We considered the providers available to us that appeared relevant to the information supplied.

That is more defensible than:

We found the best provider in the market.

---

Find Your New Processor

How many providers should a broker compare?

There is no universal number.

For a straightforward UK retailer, many providers may be technically capable of supplying the service.

For a more complex merchant, there may be only a small number of realistic options.

Examples include businesses with:

• Previous provider termination
• High chargebacks
• International ownership
• Future delivery
• Very large transactions
• Regulated products
• Complex marketplaces
• Specialist integrations
• Unusual recurring-payment models

A broker considering two highly relevant providers may provide more value than one distributing the enquiry to ten unsuitable companies.

Ask for the reasoning, not only the number.

---

Should the broker tell you which providers were considered?

Where possible, the broker should explain:

• Which type of provider was considered
• Why the recommended provider appears relevant
• Which requirements drove the recommendation
• Whether alternatives exist
• Whether any option was ruled out
• Whether the recommendation is provisional

There may be situations where a broker cannot provide a complete panel list because of:

• Commercial confidentiality
• Unconfirmed provider appetite
• Preliminary discussions
• Specialist partner arrangements

However, it should still be able to explain the basis of the recommendation.

---

Broker recommendation versus final underwriting

A broker can help determine whether a provider appears potentially suitable.

The provider must still carry out its own assessment.

This can include:

• Identity verification
• Company verification
• Beneficial-owner checks
• Financial crime controls
• Business-model review
• Website review
• Licence checks
• Processing-history review
• Financial assessment
• Risk assessment
• Technical review

The final offer may include:

• Different pricing
• Settlement conditions
• Rolling reserve
• Processing limits
• Country restrictions
• Product restrictions
• Additional documents
• Delayed go-live
• Decline

A broker should never present a provisional conversation as a completed approval.

---

Can a broker guarantee merchant-account approval?

No responsible broker should guarantee approval before the relevant provider has completed its checks.

The broker does not control:

• Provider risk appetite
• KYC or KYB results
• Financial assessment
• Card-scheme requirements
• Bank or acquirer approval
• Reserve terms
• Final contract
• Ongoing monitoring

Be cautious where a broker promises:

Guaranteed approval

without reviewing the business or obtaining a final provider decision.

A provider may be willing to consider the application without being willing to approve it.

---

Can a broker guarantee the lowest rate?

Not realistically across the entire market.

The broker may be able to:

• Negotiate with its panel
• Compare selected offers
• Review current statements
• Identify obvious cost differences
• Help the merchant challenge existing pricing

But a guarantee of the lowest available market price would require:

• Complete market coverage
• Identical underwriting decisions
• Identical functionality
• Complete card and transaction data
• Full knowledge of every available commercial offer
• Continuous price monitoring

It can also be misleading to focus only on price where providers differ in:

• Settlement
• Reserve
• Integration
• authorisation performance
• Service
• Countries
• Payment methods
• Contract

---

Find Your New Processor

What should a broker explain about a recommendation?

The merchant should be able to understand:

Why the provider was selected

For example:

• Supports the business sector
• Accepts required countries
• Supports the integration
• Can handle transaction values
• Offers recurring payments
• Has relevant settlement capability

What remains unconfirmed

For example:

• Final underwriting
• Reserve
• Exact price
• Maximum transaction
• Settlement
• Contract

What the broker does not control

For example:

• Provider approval
• Live account monitoring
• Chargeback decisions
• Reserve release
• Scheme rules
• Settlement interruptions

What alternatives were considered

Where appropriate:

• Another acquirer
• Payment facilitator
• Gateway-only change
• Additional provider
• Staying with the current provider
• Renegotiating existing terms

---

Merchant services broker versus payment consultant

A broker and consultant can overlap, but their central commercial roles may differ.

Broker

A broker is usually focused on arranging an introduction to a provider.

It may be paid when the merchant proceeds.

Consultant

A consultant may be engaged to:

• Review payment costs
• Run a tender
• Analyse provider performance
• Design payment strategy
• Review integrations
• Support negotiations
• Manage implementation

The consultant may charge:

• Hourly rate
• Day rate
• Fixed project fee
• Success fee
• Savings share
• Retainer

Ask whether the business is receiving:

An introduction

or:

Independent consulting work with a defined scope and deliverables.

---

Merchant services broker versus comparison website

A comparison website may allow the merchant to:

• Request quotations
• Enter business information
• View provider information
• Be matched automatically
• Receive calls from sales companies

The level of assessment can range from:

• Basic enquiry distribution
• Rules-based matching
• Human-led suitability review
• Detailed application preparation

Before entering details, check:

• How many businesses will receive them
• Whether contact details will be sold or shared
• Whether providers contact the merchant directly
• Whether the platform compares all providers
• How the website earns money
• Whether an adviser reviews the case

---

Find Your New Processor

Merchant services broker versus ISO

An independent sales organisation or similar distribution business may market payment services for one or more acquiring partners.

The ISO may:

• Generate leads
• Sell the provider’s service
• Assist with applications
• Support merchants
• Receive ongoing revenue share
• Operate under a provider agreement

The broker may present itself as independent while functioning primarily as a sales channel for selected partners.

This is not automatically a problem.

The merchant should simply understand:

• Which providers the ISO represents
• Whether it can recommend alternatives
• Who sets the price
• Who issues the contract
• Who handles support
• Who processes and settles the money

---

Merchant services broker versus payment facilitator

A payment facilitator can have a more direct role in supplying payment services.

Depending on the structure, it may:

• Onboard merchants or sellers
• Operate under a master arrangement
• Provide payment technology
• Manage sub-merchants
• Control certain settlement processes
• Carry responsibility for monitoring

A broker that only introduces merchants does not usually perform these functions.

Check the contract to establish whether the business is dealing with:

• An introducer
• An agent
• A payment facilitator
• An acquirer
• Another payment institution

---

Is a merchant services broker FCA-authorised?

There is no single answer based only on the title merchant services broker.

The regulatory position depends on the activities the business performs.

Merchant acquiring is a regulated payment service. The FCA describes acquiring as a payment service in which a payment service provider contracts with a payee to accept and process payment transactions resulting in a transfer of funds to the payee. A business providing payment services as a regular occupation normally needs the relevant authorisation, registration or recognised status unless an exclusion applies. 

A business that only:

• Supplies general information
• Collects business requirements
• Makes an introduction
• Does not contract to provide payment services
• Does not control merchant funds

may not itself be carrying out merchant acquiring.

However, the analysis can change where the business:

• Contracts with the merchant for payment services
• Acts as a payment-services agent
• Receives customer or merchant funds
• Operates payment accounts
• Provides payment initiation
• Provides account-information services
• Functions as a payment facilitator
• Provides another regulated service

The FCA warns that businesses receiving customer money before passing it to sellers may be providing payment services and that providing payment services without the required status can be an offence. 

The merchant should therefore establish what the broker actually does rather than assuming that every introducer must appear as a directly authorised payment institution.

---

Payment-services agents

A business may provide payment services on behalf of an authorised or registered principal.

Agents of payment institutions generally need to be registered by their principal on the Financial Services Register. The principal is responsible for oversight of the agent’s payment-services activity. Different rules can apply to agents of banks and other types of principal. 

Ask:

• Is the broker acting as an agent?
• Which principal does it represent?
• Is it shown on the Financial Services Register?
• Which services is it authorised to provide?
• Is the merchant contract with the principal?
• Who is responsible for complaints?

Do not rely on an FCA logo or general statement that a company “works with regulated providers”.

Check the relevant legal entities.

---

Find Your New Processor

How to check the FCA Register

Use the FCA Financial Services Register to search for:

• Legal company name
• Trading names
• Firm reference number
• Authorised or registered status
• Payment-services agents
• Appointed representatives
• Principals
• Permissions
• Restrictions
• Contact information

An entry on the Register does not mean that every service supplied by the business is regulated.

Check whether the status and permissions relate to the activity being offered.

---

What if the broker also arranges business finance?

Payment-services introductions and finance broking are not automatically the same regulatory activity.

A broker introducing:

• Merchant cash advances
• Business loans
• Asset finance
• Consumer credit
• Hire agreements

may need to consider separate credit-broking rules.

The FCA’s rules apply where a firm conducts regulated credit broking, and the precise position can depend on the product, customer and agreement. The FCA’s 2026 regulatory guide distinguishes directly authorised credit brokers, appointed representatives and introducer appointed representatives. 

Where regulated credit broking applies, FCA requirements can cover matters including:

• Status disclosure
• Advertising
• Customer needs
• Fees
• Commission
• Data sharing
• Complaint handling

The FCA Handbook also requires a credit broker that promises to search a particular market or part of it to search to the extent stated to the customer. 

A merchant-services broker introducing commercial finance should therefore explain:

• Whether it is acting as a finance broker
• Which entity carries out the broking
• Whether the activity is regulated
• How it is paid
• Which finance providers it can access

For further information, see the MAS guide to merchant cash advances.

---

Does the broker hold or control merchant funds?

A conventional introducer normally should not need to receive customer card proceeds before paying them to the merchant.

Ask:

• Who receives customer payments?
• Which entity appears on the customer’s statement?
• Who holds the settlement balance?
• Who pays the merchant?
• Who controls reserves?
• Which bank account receives funds?
• Who processes refunds?
• Who is liable for chargebacks?

If the broker claims to:

• Hold the funds
• Split funds
• Pay the merchant
• Operate balances
• Receive customer money

the merchant should establish the business’s regulatory status and contractual role carefully.

The FCA specifically identifies receiving customer money before passing it to a seller as an activity that may fall within payment-services regulation. 

---

Who should issue the contract?

The contract should identify the legal company responsible for providing the service.

A merchant may receive several documents, including:

• Broker terms
• Privacy notice
• Provider application
• Merchant service agreement
• Gateway agreement
• Terminal agreement
• Finance agreement
• Data-processing agreement

The broker may have its own terms covering:

• Introductions
• Commission
• Liability
• Use of data
• Complaints
• Merchant responsibilities

The payment provider’s agreement should cover matters including:

• Payment services
• Pricing
• Settlement
• Reserves
• Refunds
• Chargebacks
• Termination
• Data
• Security

Do not assume signing a broker enquiry form creates the merchant account.

---

Who handles support after the account goes live?

Support arrangements vary.

The broker may:

• Provide no post-sale support
• Remain the first point of contact
• Escalate issues to the provider
• Help interpret statements
• Assist with renewals
• Support future provider reviews

The provider may handle:

• Transactions
• Settlement
• Reserves
• Refunds
• Disputes
• Technical incidents
• Account reviews
• Contract changes

Ask before signing:

• Who do we contact for settlement issues?
• Who handles a suspected fraud incident?
• Who supports the integration?
• Who handles disputes?
• Can the broker access our account?
• Does support continue after activation?
• Is there a cost?

---

Who handles complaints?

A complaint should normally be directed to the business responsible for the issue.

Complaint about the broker

Examples include:

• Misrepresentation
• Unauthorised data sharing
• Undisclosed fee
• Poor introduction
• Misleading market-coverage claim
• Failure to provide an agreed service

Complaint about the provider

Examples include:

• Settlement
• Reserve
• Account restriction
• Chargeback handling
• Transaction processing
• Provider contract
• Provider support

Where a regulated payment or credit activity is involved, formal complaint and escalation rights may apply.

Those rights depend on:

• Entity
• Activity
• Customer eligibility
• Regulatory status
• Nature of the complaint

Do not assume the broker and provider share the same complaint route.

---

How should a broker handle your data?

A broker may need to share information with a potential provider to assess or progress an application.

This can include:

• Contact details
• Company information
• Owner or director details
• Processing statements
• Business bank information
• Payment history
• Existing provider information
• Financial documents

Under UK data-protection requirements, organisations need a valid lawful basis for using personal information and must process it fairly and transparently. The ICO also advises organisations sharing personal data to share only necessary information and send it securely to the correct recipient. 

Before submitting sensitive information, check:

• Privacy notice
• Intended recipients
• Purpose of sharing
• Retention period
• Security method
• Whether data will be used for marketing
• Whether it will be sent outside the UK
• How to exercise data rights

Consent is not the only possible lawful basis under UK GDPR, but the business should still explain how and why personal data is used. 

---

Find Your New Processor

MAS insight: Do not send full underwriting documents to every salesperson

A broker may need information to establish suitability.

However, the merchant should avoid distributing sensitive documents unnecessarily.

A sensible staged process could be:

Initial assessment

• Business activity
• Turnover
• Transaction profile
• Countries
• Integration
• Current problem

Provider pre-screening

• More detailed processing information
• Existing statements
• Website
• Ownership summary
• Risk history

Formal application

• Identity documents
• Bank statements
• Financial accounts
• Company documents
• Licences
• Full underwriting evidence

Use secure transfer methods rather than ordinary email where sensitive personal or financial documents are involved.

---

How to verify a merchant services broker

Check the legal company

Use the Companies House register to confirm:

• Legal company name
• Company number
• Status
• Registered office
• Incorporation date
• Directors
• Filing history
• Previous names
• Registered charges

Companies House provides public company information, but its service states that it does not check the accuracy of all information filed. Use it as an identity and filing check rather than proof that the broker’s service is suitable. 

Check the website

Look for:

• Legal name
• Company number
• Trading address
• Named people
• Contact information
• Privacy notice
• Terms
• Complaints process
• Commission disclosure
• Provider or panel explanation

Check regulatory claims

Where the broker claims FCA status:

• Search the FCA Register.
• Match the legal name.
• Check trading names.
• Review permissions or registration.
• Check principals and agents.
• Confirm the status relates to the activity.

Check expertise

Look for evidence such as:

• Named experience
• Relevant payment background
• Detailed sector knowledge
• Clear educational content
• Realistic underwriting explanations
• Understanding of integrations
• Verifiable business history

A list of provider logos is not evidence that the broker has direct access to every provider shown.

---

Questions to ask a merchant services broker

About the broker

1. What is your legal company name?
2. What is your company number?
3. How long have you operated?
4. Are you a broker, consultant, ISO, agent or provider?
5. Are you tied to any provider?
6. Do you provide payment services directly?

About market coverage

7. How many providers can you access?
8. Do you compare the whole market?
9. Which providers are relevant to our business?
10. Are any providers accessed through another intermediary?
11. Why are you recommending this provider?
12. Which alternatives were considered?

About payment

13. How are you paid?
14. Do you receive a one-off fee or recurring commission?
15. Does commission differ between providers?
16. Is any cost added to our processing price?
17. Do we pay you directly?
18. Is there any fee if we do not proceed?

About the application

19. What information will you review?
20. Will you examine our processing statements?
21. Will the provider pre-screen the business?
22. Who conducts underwriting?
23. Can the provider change the price after underwriting?
24. Who confirms reserve and settlement?
25. What does approval mean at each stage?

About data

26. Who will receive our information?
27. Will it be sent to more than one provider?
28. Will we be contacted directly?
29. How is sensitive information transferred?
30. How long will the information be retained?
31. Will it be used for marketing?

About the live account

32. Who issues the contract?
33. Who processes payments?
34. Who settles the money?
35. Who controls reserves?
36. Who handles refunds and disputes?
37. Who provides technical support?
38. Will you support us after activation?

---

Red flags when choosing a merchant services broker

Be cautious where the broker:

• Guarantees approval before underwriting
• Guarantees the lowest market rate
• Claims to compare every provider without explaining how
• Refuses to identify the actual payment provider
• Has no clear legal company information
• Will not explain how it is paid
• Pressures the merchant to sign immediately
• Advises the merchant to hide previous termination
• Suggests using an inaccurate business description
• Recommends an incorrect MCC
• Ignores fulfilment, refunds or chargebacks
• Quotes only one consumer debit rate
• Promises reserve or settlement terms verbally
• Will not provide terms in writing
• Sends the application widely without explanation
• Requests customer card data unnecessarily
• Uses an FCA logo without explaining its status
• Confuses introduction with final approval
• Cannot explain the required integration
• Will not say who handles funds or complaints

---

A broker should never disguise the business

A responsible broker should help the merchant describe its activity accurately.

It should not advise the business to:

• Use a different company without explanation
• Misstate its products
• Hide customer countries
• Understate transaction values
• Conceal previous providers
• Avoid mentioning chargebacks
• Use another business’s merchant account
• Apply under an inaccurate MCC
• Route payments through an unrelated company

These actions can lead to:

• Application decline
• Account restriction
• Delayed settlement
• Reserve
• Termination
• Difficulty obtaining another account
• Contractual or regulatory consequences

The role of the broker is to improve the quality of disclosure, not avoid underwriting.

---

Find Your New Processor

Merchant services broker versus going directly to a provider

Neither route is automatically better.

---

When going direct may make sense

Going directly to a provider may be suitable where:

• The business already knows the correct provider.
• Requirements are straightforward.
• The provider supports the existing integration.
• The merchant understands the pricing.
• There is no difficult underwriting history.
• The merchant can manage onboarding.
• The provider has already issued clear terms.

A broker does not need to sit between every merchant and provider.

---

When a broker may add more value

A broker can be particularly useful where:

• The merchant does not know which providers accept the sector.
• Several providers have already declined.
• The existing provider has terminated the account.
• A rolling reserve has been imposed.
• The integration is complex.
• Multiple countries or currencies are required.
• Transaction values are unusually high.
• The business uses recurring payments.
• The merchant needs MOTO processing.
• Future delivery affects underwriting.
• Quotes use different pricing models.
• The business needs more than one provider.

The broker’s value should come from reducing unsuitable routes and improving the quality of the information presented.

---

Should a broker negotiate fees?

A broker may be able to help negotiate:

• Acquirer margin
• Fixed transaction fee
• Authorisation fee
• Gateway cost
• Monthly minimum
• Terminal rental
• PCI administration charge
• Refund fee
• Chargeback fee
• Contract length
• Notice
• Settlement premium

Underwriting conditions such as reserves and transaction limits may also be discussed, but they are not ordinary pricing decisions.

The provider may require evidence before changing them.

A broker should not promise that a reserve can be removed simply because another merchant received different terms.

---

MAS insight: Negotiation should use real data

A stronger request might say:

The business submits 100,000 authorisation attempts each month. Can the fixed authorisation charge be reduced from 4p to 2p?

A weaker request is:

Can you make the account cheaper?

Useful negotiation evidence includes:

• Processing statements
• Card mix
• Transaction count
• Volume growth
• Refund and dispute history
• Competing written offer
• Contract end date
• Required services
• Financial information

---

Should a broker compare more than fees?

Yes.

A complete comparison should include:

• Provider suitability
• Payment channels
• Integration
• Settlement
• Reserve
• Transaction limits
• Countries and currencies
• Recurring-payment functionality
• Refunds
• Chargebacks
• Reporting
• Reconciliation
• Contract
• Support
• Migration
• Total cost

The cheapest provider may not produce the best result if it causes:

• More manual work
• Slower settlement
• Lost payment credentials
• Failed subscription renewals
• Integration problems
• Restricted countries
• Inadequate support
• Greater reserve requirements

---

Find Your New Processor

What should happen before the merchant signs?

Confirm:

Provider

• Legal entity
• Regulatory status where applicable
• Role in the transaction
• Provider contact

Underwriting

• Business approved
• Products approved
• Countries approved
• Average and maximum transaction approved
• Channels approved
• Previous history disclosed

Commercial terms

• Final pricing
• Authorisation fees
• Gateway
• Monthly costs
• Refund and chargeback fees
• Settlement
• Reserve
• Contract length
• Notice
• Termination cost

Technical setup

• Integration confirmed
• Gateway confirmed
• Terminals confirmed
• Token migration planned
• Reporting available
• Testing completed
• Refunds tested

Broker relationship

• Commission explained
• Merchant fee confirmed
• Data-sharing understood
• Ongoing support confirmed
• Complaints route provided

Do not rely on verbal assurances that are absent from the provider’s final documents.

---

How Merchant Advice Service works

Merchant Advice Service provides information and helps businesses understand their payment requirements.

MAS may:

• Review the initial business and processing profile
• Identify potential provider routes
• Explain information a provider may request
• Help the merchant understand quotations
• Make an introduction where appropriate

MAS is not:

• A bank
• An acquirer
• A card scheme
• The merchant’s payment processor
• The final underwriter
• The holder of merchant settlement funds

MAS is free for businesses to use.

Where an introduction results in a completed account or service, MAS may receive a referral payment or ongoing commission from the provider.

MAS does not necessarily compare every provider in the market.

The provider remains responsible for:

• Underwriting
• Pricing
• Reserves
• Settlement
• Contract
• Approval
• Live account monitoring

You can read more on How Merchant Advice Service Works.

---

Looking for a merchant services broker?

Tell Merchant Advice Service:

• What the business sells
• Current provider
• Monthly card turnover
• Transaction count
• Average transaction
• Maximum transaction
• Online, card-present and MOTO requirements
• Customer countries
• Required currencies
• Settlement requirements
• Existing reserve
• Refund and chargeback profile
• Required integrations
• Previous provider declines or termination
• What you want to improve

MAS can assess the initial requirements and, where possible, identify a provider or specialist route that appears relevant.

MAS cannot guarantee:

• Provider approval
• The lowest available market rate
• A reserve-free account
• A particular settlement timetable
• That every provider will be compared
• That switching will improve every aspect of the payment operation

Any provider will conduct its own assessment and issue its own pricing, underwriting decision and contract.