Why use a Merchant Services Broker?
What is a merchant services broker?
A broker for merchant services (also referred to as a merchant services consultant) is a company or person that has direct or indirect access to a wide variety of merchant account providers or acquiring banks. They will often advise merchants on where their business is best placed and handle the application for them. Unlike other financial service industries there is not usually a ‘whole of market’ broker solution within merchant services allowing straightforward comparison on every single account available. Usually credit card processing brokers work with between 30-100 banks to ensure they have all business types covered.
For example, they may have relationships with banks and acquirers that will be best suited for rate shoppers the broker will negotiate between them driving the price down and sometimes playing quotes off one another. This means that the merchant using the broker often secures a more appealing deal than going directly to the bank themselves.
How to find a credit card processing brokerage
It is vital that when searching for a merchant account broker or company that you find one that is right for you and your business. Often you will find that brokerages specialise in different areas, such as high risk, ecommerce etc. We suggest looking for a broker based on industry type rather than location or sector. For example, if you own a travel agency it can be tricky to sort an account due to the high risk nature of the business. It’s therefore a good idea to deal with a credit card processing broker that has successfully placed travel agencies in the past, has done so with ease and has saved the client money. This way the likelihood of your application going through without any problems is heightened as your broker knows what to expect.
Benefits of using card processing consultants and brokers
Using credit card processing consultants or brokers can have a wide range of benefits to the merchants;
- Brokers often have existing relationships with acquiring banks and providers, meaning they know what to expect when it comes to making an application, this streamlines the process from start to finish and regularly makes things a lot quicker for the merchant.
- Brokers are here to help, the world of merchant services can be a tricky one to understand – no two providers are the same and costs and fees are sometimes confusing. Your consultant should be able to explain to you the difference in providers, enabling you to make an informed choice about who you open your account with.
- Experienced consultants can compare accounts easily, ask them to do so on a pound-for-pound basis.
- Brokers can save you time, providing they have the right connections, they will shop around for you. Driving the price you pay as low as possible.
- Consultants will remain your point of contact throughout your contract with the bank, any problems you can let them know.
- If you find the right consultant they will review your account before the end of your contract date and look to save you money by switching providers for the lifetime of your business.
- Some brokers or consultants do not charge for their time, the reason being is that they will earn commission if you sign up.
Credit card processing consultantsand brokers for start-up companies
Securing card processing for a start-up company can be a minefield, with industry terminology and fee structures proving difficult to unravel, meaning lots of newer companies choose to use the services of a credit card processing broker. Some struggle to do so, as larger merchant account consultancies often have a minimum monthly card processing turnover which they accept applications from. This is impossible to prove for start-ups, due to the lack of transaction history. We help start-up businesses secure credit card processing for both online and face-to-face payments.
SPEAK TO OUR EXPERTS TODAYHigh risk merchant account broker
When it comes to high risk merchant accounts, things tend to take a little longer. Whether you are searching for a start-up high risk account or looking to change providers, using an experienced broker could save you both time and money. Ensure the consultant or brokerage that you’re using has dealt with similar types of applications in the past, they have a clear idea of who your business will fit with and that they make you aware of all costs upfront.
Maintaining a good relationship with your broker can be vital in high risk businesses if you were to be served notice by your current provider. An experienced consultant understands that banks and providers regularly assess their client portfolio and sometimes pull away from certain industry types. They may advise you to have more than one merchant account to prevent problems occurring, or alternatively if you have been served notice they will be able to act quickly for you to find a back-up solution. Brokers are your eyes and ears within a complex industry, they will manage your account and advise of changes if needs be.
How Merchant Advice Service works with brokers and consultants
Merchant Advice Service works alongside experienced brokers and consultants. Each of our advisors specialise in certain areas, making them true experts in what they do. Our service is free of charge, we put you in touch with the right person for your business needs while remaining your point of contact to help along the way.
CALL US TODAYLibby James
Merchant Services Expert
Libby James Co-founded Merchant Advice Service alongside David Bird in 2016. Her finance background, coupled with retail and customer service experience, gave Libby the drive to bring transparency and non-biased advice to the world of merchant services. Having come from the heavily regulated mortgage and insurance industry, Libby found it puzzling that other financial sectors lacked regulation and transparency leaving customers confused and unable to make informed decisions when it came to accepting card payments. This was soon to become Libby’s obsession!
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Speak to us directly and get any questions you have answered. Submit your details and we’ll be in touch shortly.