![]() ![]() And as these businesses grow, your residuals will grow, too.Īfter you understand the world you’ll be operating in, it’s time to fit those services, types of MSPs, and their offerings to YOUR niche. Land ten of those and you’re looking at over $8,000 per year off of residuals. If you landed a merchant that processed $15,000/month across 25 transactions, you’d make $70.25/month in residuals. That’s your residual! That’s what you make from now until forever, assuming the company doesn’t switch providers or go out of business. The difference between the rate you can get from the MSPs and the rate you pitch to your merchant is where you make your money.įor example, let’s say your negotiated buy rate is 1.79% + $0.20 per transaction, but you pitch 2.25% + $0.25 to your clients - that means you’d get 0.46% + $0.05 on every sale. Your job is to explain why the merchant should switch to a different provider and help them set up their new account (assist with paperwork, applications, etc.). You and/or your ISO operate as resellers, so you’ll buy “wholesale” merchant processing rates (known as buy rates) and sell them to businesses. In short, you will function as the middleman between a merchant and merchant services provider OR perform this same function under an official “independent sales organization” provider. If you aren’t familiar with Elon Musk’s strategy for deconstructing and learning new topics via a semantic tree, you should model your approach after his.Īfter you understand how the industry began, where it is now, and where it’s headed, you’ll need to understand the role that you will play and where you fit into the merchant services ecosystem. If you don’t have a background in merchant services, start with the basics of credit card processing: how transactions are processed, what the relationship between issuing and acquiring banks is, typical hardware, etc. The beauty of merchant services is that everyone accepts payments, so take a look around and see where your expertise and the market intersect. Are there a lot of B2B tech companies moving and growing in your community? Golf courses? Healthcare? Boutique clothing? If you don’t have a specific industry you’d like to work in, take a look at your community and what businesses are doing well there. Got your law degree but decided it wasn’t for you? Swing that to your advantage. Frame your entire operation around food services and use that knowledge to your advantage. Did you work in restaurants for ten years and live just outside of Chicago? Perfect. So how do you choose a niche? Start by thinking through your past experience and location. You need to be servicing your client’s needs, and people often won’t trust a newcomer. Imagine yourself as a merchant services consultant that also facilitates the merchant account transfer or initiation. Part of landing accounts is understanding your client’s business environment and recommending a solution based on their unique situation. ![]() Collect and prepare your business assets.ĭo not start a credit card processing company without a niche.Compare ISO/MSP programs for ones that align with your goals and style.Learn as much as you can about credit card processing.Here are the steps to becoming a successful credit card processing agent: Your income will entirely depend on your ability to land new accounts and keep them with you, so once you jump in it’s up to you to make the most of it. If you don’t know much about credit card processing, then you’ll need to learn the ins and outs of the merchant services industry. If you don’t have a sales background, you’ll need to spend time understanding what separates the successful credit card processing agents from the failures. While starting a credit card processing business can be lucrative, you need to approach it with intelligence. So you’ve heard about the benefits of being a Credit Card Processing Agent or Merchant Account Sales Agent: residual income, the opportunity to work for yourself, the ability to choose your clients, and more. ![]()
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