Starting a credit card processing business is a great idea and can be profitable if you work with intelligence. If you don't have any sales experience then you have to spend some time learning the difference between a successful credit card processing business and a failure. You have to learn the ins and outs of the merchant services business if you don't know well about credit card processing.
Everyday credit card transactions occur millions of times and most people don't know what happens when they swipe their cards and cards of customers. If you are running a small business, then by having a basic understanding of the credit card processing process you can solve unknown issues which may come up with your customer payment.
Here are the Steps you Need to Start a Credit Card Processing Business:
1. Take a Niche
Niche is crucial for starting a credit card processing business.
So the question is how do you choose a niche? Think about your past experiences and work locations, if you have worked in restaurants then use your experience in business growth. And make them your clients by providing them your credit card processing services.
The main part is to understand your client’s business environment and recommend to them a unique and suitable solution according to their situation. You have to fulfill their needs because people won’t trust newcomers. The main beauty of merchant services is that everyone accepts payments nowadays, so do some search in the market and see where you can provide your services.
2. Become Proficient in Credit Card Processing
Start with basic information on credit card processing, if you don’t have any experience in merchant services. The basic information such as: how transactions process, the relation between issuing and acquiring banks, hardware, software, etc. After getting well known, information about the industry began, where it is now, and where it is going to be. Then you have to find a role where you can fit in the industry merchant services ecosystem.
In simple words, you will work as a middleman between a merchant and a merchant services provider as an agent. The difference between the rate you pitch to your merchant and the rate you get from MSPs is where you make money.
For Example- the buy rate from the company is 1.80% + $0.10 per transaction, but you provide service to clients at 2.20% + $0.20 per transaction, which means you get 0.40%+$0.10 on every sale.
3. Compare MSP Schemes
There are so many MSP schemes available for operating in every niche, and they all perform their relations with merchants and merchant service agents differently.
Here are some important factors you have to kept in mind while comparing sales programs:
Are they experienced in your niche
Do they have the latest technology? Like in software, hardware, etc.
Check the transparency of the MSP policies
Avoid MSPs who charge a setup fee
4. Apply to the Best Program
After comparing every program choose wisely and then apply for the perfect MSP you have founded.
5. Start Collecting and Preparing your Business Assets
It's important to have business assets for the backup of what you are selling. A good MSP will provide you so many sales resources, but there are some assets which you will need in hand:
Social Media Profiles
Pamphlets
Personal Website
Business Cards
White Papers
6. Start Selling
This is the last step after setting up all things, which means go out and start signing deals with merchants to grow your business.