by Lynn Brooks
Stacy Quinn Brooks, here. My lovely wife, Lynn and I used to be employed, for seventeen years altogether, by one of the largest, well-known Credit Card Processors on the planet. Credit Card Processing ran through our veins, so to speak.
With all that time in the industry, we were able to see and learn how the industry functioned and operated. One of the most obvious things we learned was that the MERCHANT, more than anyone else, took on a rather large part of the risks involved with accepting credit card payments.
Risk for the merchant might come in three distinct forms:
* The person who is authorized to use the card, or someone who uses that account in some bogus, fraudulent manner.
* The institution, or Issuing Bank that put out the card to the cardholder or business.
* Their very own Acquirer, also known as the Processor; the company who should be looking out for the interests of the merchant.
Believe it or not, it is the Processor who… along with the Issuer and cardholder… often impacts their merchants in a negative way. We will explain, briefly, the ways in which this can happen, using examples we have seen while working for a major Processor for many years.
The first issue is the training of merchants as they come on board. This advice and training can be sub-standard, often leading to disputes and other issues for the merchant, and these issues can be harmful.
Next, it is not unusual for the rates and fees to be high and/or hard to understand. The Processor typically will attempt to squeeze as much profit as they can out of you, the merchant, while making things SEEM, on the surface, like they are diligently trying to meet your needs and serve your best interests.
Next, consider contracts, which generally include a serious fee for early cancellation. By wrapping merchants up with a contract, Processors become the “master”, in a sense, and the whole concept of, “The Processor is working for the merchant” tends to go out the window. We have seen this reality clearly, and it can cost the merchant a lot over the long haul.
Poor-quality Customer Service and technical support is yet another issue which can be costly, harmful or even devastating to merchants, and this is another matter that is, unfortunately, not uncommon.
As a final point, it has occurred, although rarely, that the Processor, because of some problem within their own network and system, causes financial loss to merchants. Some merchants become aware of the matter; many never do, BUT, the Processor makes no effort to set things right and shoulder the burden or responsibility. They leave it on the merchants.
Now, the question is, “If underhandedness and greed is so common with Credit Card Processing, what can I, as a merchant, do?”
You must, first of all, become knowledgeable about the risks and rewards of taking credit card payments, since accepting credit payments IS a necessary part of business. Next, it is essential that you find a Processor that will provide you with:
* Low, guaranteed rates that are transparent… in other words, rates that are not exorbitant, and that you can UNDERSTAND. Also, full disclosure of any and all possible fees.
* Personal help with getting you set-up and under way, as well as IN-HOUSE support and technical assistance. Some Processors contract out their support services.
* A partnership where you are not locked in under contract, and are not paying annual fees or fees for starting up or cancelling. This puts YOU in control to a much greater degree.
* A well-recognized character and integrity within the industry.
In order to assist merchants in navigating the risky and often confusing waters of Credit Card Processing, we, Stacy Quinn Brooks and Lynn Brooks, have put up a website, Boss Payments. Please visit the site for more complete information.
About the Author:
Stacy Quinn Brooks and his wife, Lynn have insider awareness regarding the Credit Card Industry. For full information regarding avoiding the pitfalls of taking credit card payments, visit
Boss Payments. For an informative audio message, click here on
Processing Credit Cards.