Thursday, May 29. 2008
In Pursuit of the Best Merchant Account
Prospective clients who investigate our services are, in essence, looking to find the best merchant account provider to serve their business’s credit card processing needs. But their quest to find an exemplary company only motivates us to fulfill their mission – to provide clients with the best payment processing services and solutions in a framework encompassing pillars of excellence.
One such pillar of excellence is to truly listen to a prospective client. There are many options that may be offered in the merchant account field, and the suggested program must be tailored to meet the needs of the customer, and not designed to maximize profit of the merchant account provider.
At times, this may even mean to convince a client that he/she needs no services. Last week, a prospective client called us about our check guarantee program. Upon investigation, this business owner only receives 1-2 bounced checks a year. While his recent loss of $200 in an NSF check is very upsetting, particularly in light of the fact that the customer is not returning phone calls, the merchant must understand that he should not engage in a kneejerk reaction, ultimately spending much more than what he will probably save.
Similarly, I received a call yesterday from someone who has a side hobby business where she anticipates accepting about $100-$200 per month in credit card sales via the Internet. (She appreciated the fact that we have no monthly minimum.) While I welcome any new account – regardless of processing volume (after all, she may refer business associates and friends who may have large processing volumes) – I just did not believe that she needed to obtain credit card processing capability at this time. We spoke at length and she agreed that she would table the matter, and see how things progress with her business.
As important as listening to the prospective client, it is crucial to treat others with respect and dignity. In business, it is so vital to abandon the “What’s in it for me?” mindset. Business owners must realize that they are in the “helping field” regardless of the product or service they market. Obviously, looking for win-win solutions is always desirable but the chances that a mutually beneficial relationship will materialize becomes greater when the other party feels attended to, cared about, and treated to the truth.
Too many merchant account providers do not believe that they need to be honest and ethical. Some will rationalize that “buyers are liars,” and must resort to dissembling motives or engage in blatant misrepresentation to even the score. For example, merchant account providers may deliberately omit fees and/or make promises that they have no intention of keeping. I have heard so many horror stories, for instance, where merchants were told that they would not incur any termination fee only to be assessed the equivalent of a king’s ransom when canceling the account.
This is no way to conduct business – especially if a long term partnership is to be established. But a pillar of excellence that will lead to a lasting, committed alliance is if a company takes fast measures when difficulties arise. Consider a client who has a problem that needs to be remedied. Swift attention to the matter can only serve to strengthen the bond of trust. Indifference or inattention to the matter will only lead to the client’s disillusionment.
Fortunately, I’m in a field where merchant account providers forget this principle – attending to the clients that they already have. They are so numbers driven in search of new clients that they don’t do an effective job retaining the old ones. They conveniently forget to address problems that have been shared and are not conscientious looking for solutions. Such clients look elsewhere and they are not only fixated on low credit card processing rates; they expect and demand outstanding service from the best merchant account provider that they can find.
Another pillar of excellence that is paramount to success is to be responsive. Answering emails and returning phone calls in a prompt matter easily separates one company from its rivals. All of us like our questions answered in a timely matter; merchants, who are very busy themselves, need to find quick answers.
Of course, the manner in which company representatives communicate may ultimately affect a prospective client’s decision as to which vendor to use. A friendly, caring, and supportive demeanor makes a favorable impact. Conversely, a voice or dialogue manifesting disinterest, arrogance, and impatience will put the kibosh on any possible future account.
Our merchant account company continues to refine and expand the aforementioned pillars of excellence. We benchmark our progress, keeping an eye on what our competitors do. We try to be proactive and look out for any potential problems that our clients may experience. We ask for honest feedback from our customers and pass cost savings onto them whenever possible.
We truly aspire to offer the best merchant account – one noted for great fees and stellar service. But the goal itself (i.e., to be voted best merchant account provider by an independent source and/or noted as such by our customers) underscores our commitment and dedication to serve the needs of the business community.
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To learn more about our merchant account services, please visit us at http://www.intelli-collect.com.
Monday, May 19. 2008
7 Sins to Look Out for When Choosing a Merchant Account Provider
We are all familiar, at least in theory, about the commandments of building any enterprise, centered on the principles of providing outstanding customer support, attractive pricing models, high quality products and/or services, and establishing a consistent exemplary reputation in the quest to keep customers for life. Therefore, it never ceases to amaze me that businesses, including those in the merchant account field, choose not to embrace these principles yet succeed anyway. (A high google ranking may obfuscate a company’s “sins.”)
Merchant account providers who commit the following offenses need to revamp their policies and procedures. Prospective clients who need credit card processing may now be considered forewarned.
1) Inordinate amount of time in responding to email – Here, I’m assuming that company representatives even respond to customers’ inquiries. I’ve heard much anecdotal evidence that this does not always transpire. Of course, email can be lost in the recesses of cyberspace, but many companies are slow to answer messages, assuming that they receive them.
A merchant account provider that is slow to respond to a merchant before he/she becomes a client may not be too responsive after a contract is signed. (Delays in returning phone messages also fall into this category.)
2) Subpar business phone etiquette – Too many of us have not been indoctrinated with the message that good manners are crucial to foster positive interpersonal relationships. Others simply forget Ms. Manner’s teachings and are angry, stressed out, or unfeeling, and place others’ needs as subordinate to their own.
People want, or perhaps even need to feel respected and cared for – simply treated with kindness, consideration, and dignity. But business communication often lacks warmth and intimacy, and consequently, the prospective customer does not feel a sense of comfort and ease.
Too many merchant account providers do not employ workers who know how to be polite and foster a sense of trust. They are intent on closing or making the sale instead of simply trying to help prospective customers. Others use pressure tactics hoping that customers may secure their services impulsively. If a merchant account provider cannot create a positive and pleasant business atmosphere, they don’t merit your business.
3) Over promising and under delivering – In an effort to attract customers, many companies are prone to promising the moon, declaring that they will move heaven, earth, the sun, and the stars to provide exactly what the customer is looking for. Soon, reality surfaces, and the customer realizes that some promises are better left unsaid.
Consider, for example, the merchant account provider who promises that 99% of those who apply get their applications accepted. The 1% of prospective clients who are declined may be inclined to believe that the company is engaging in false advertising.
It is better for a merchant account provider to always review worse case scenarios and temper promises. The aim should be to reveal the advantages of doing business with the provider, and then ensuring that such advantages (and more) are realized.
4) Taking creative license – In an effort to foster a client’s trust, polite and friendly demeanor can only take a company so far. It must be true to its word or even to the spirit of its word.
For instance, a new client told me that her old merchant account provider informed her that there would be no termination fee. While the verbiage, “no termination fee” was indicated on the application, the wording, “the contract is month to month” was not included. Consequently, the company did not honor its no termination policy. There is no room for playing semantics in the merchant account field or in any other business category.
5) Companies that do not believe in full transparency of rates are engaging in a foolish gamble for two reasons: a) Hidden fees may soon be discovered by the customer; and b) Once these “gotcha rates” are found out, the customer will be very disenchanted, and overall, the company’s reputation will be tarnished.
When examining a merchant account proposal, it is best for any business owner to know all possible fees. Please see: http://intelli-collect.com/cblog/index.php?/archives/89-Merchant-Account-Rates-Full-Disclosure-is-Best.html for further information on associated merchant account fees.
6) Similarly, many merchant account providers may assess high processing fees, particularly for rates that they do not disclose. It is particularly important to examine the mid and non-qualified fees, as the qualified rate may be the only one quoted.
A competitor of ours averred on its website to run if fees seem too low. Our advice: Stick around, engage in due diligence and remain cautious, yet open. There are affordable merchant account providers who are simply willing to take less profit.
7) There is no guarantee provided – In an uncertain economic climate, it is particularly imperative to provide merchants with some reassurance. All people like to have options and prepare for the “what ifs” in business. Even when a prospective client examines the history/reputation of a business and is almost entirely convinced that the selected merchant account provider is best, he/she will feel a sense of relief if there is some viable recourse if things don’t work out.
Merchant account providers that have no set-up or termination fee project an air of confidence in their program, and invite merchants to sign up virtually free of any risk.
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When choosing a partner in any business endeavor, it is crucial to know what to look for … and what to look out for. The aforementioned list is not exhaustive but provides an overview of red flags that may materialize in your search for a reliable credit card processor.
It behooves merchant account providers to brand themselves as experts in the field, and as important, customer champions.
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To learn more about our merchant account services, please visit us at http://www.intelli-collect.com.
Monday, May 12. 2008
Merchant Account Comparison - More Than Meets the Eye
Last Friday, I received a copy of a merchant’s recent credit card statement, and he encouraged me to perform a merchant account comparison, outlining the amount of money that our company could save him if he utilizes our service. Apparently, he asked a group of our competitors to participate in this merchant account comparison exercise as he neatly created a chart listing the rates that were quoted.
But while a fee structure was listed for each company that was vying for his account, ALL the rates were not listed. Of great importance, for example, was a missing non-qualified transaction quote. Transactions, particularly ones that transpire over the Internet, are downgrading to the non-qualified category with greater frequency. The increasing use of rewards cards are largely responsible for the proliferation of non-qualified transactions so this fee is crucial to know when weighing competitive offers.
I was not sure if the merchant did not list it becomes he thought it was unimportant or because the other merchant account providers did not disclose it. But the absence of such information makes any merchant account comparison meaningless. Similarly, other fees were conspicuously not present as well: The batch, AVS, Watts, and voice authorization fees should be taken into account but were not indicated on the chart. Even the chargeback and retrieval request rates were missing, although it’s possible that such fees may never be assessed.
Still, a merchant account comparison is not complete unless all associated merchant account rates are compared. It is impossible to draw an intelligent conclusion if one is only seeing a partial picture. I just read a book with my youngest son where the main character does not know that the end drawing is an elephant because when he looks at it from different vantage points, the picture looks like something else. So, as you look around at various merchant account providers, consider the entire fee structure and not just part of it. This is the only way to participate in an “elephant sale” and find a true bargain.
Another question comes to mind when conducting a merchant account comparison: Should rates be the only determining factor? This is a question that each merchant must ask himself/herself. Perhaps finding an ethical merchant account provider – one that engages in a full disclosure of rates and its company’s policies and procedures -- needs to be part of the quest. Of course, one is doubly fortunate if such an ethical merchant account provider also offers the lowest rates.
Merchants may have other criteria when performing a merchant account comparison: Email and/or telephone responsiveness, reputation of the company, number of years that they’ve been in the merchant account field, etc. may all be factors that are assessed. But the #1 criterion of most merchants concerns rates so it’s best to compare ALL rates, and make a fair and prudent “apples to apples” decision.
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To learn more about our merchant account services, please visit us at: http://www.intelli-collect.com.
Monday, May 5. 2008
What is a Virtual Terminal? Here is Virtually Everything You Need to Know
I am pretty sure you’ve seen some websites or companies that provide a phone number that their customers can call to place their orders, haven’t you? It’s an incredibly convenient payment option for these customers, especially if the number is a toll-free one. All the customers have to do is to dial and provide all the information they need over the phone.
If you don’t have this payment option, you should consider setting something like that up. Unfortunately, though, a lot of business owners do not know exactly where to start and how to go about taking credit card payments over the phone.
What you need is called a virtual terminal … which is a spin-off from the ones you see in retail outlets. A virtual terminal is a kind of system that lets you manually process a credit card transaction you receive over the phone, or via letter or fax with a computer and the Internet. It’s amazingly convenient for a merchant, too, especially if you have recurring orders. The merchant doesn’t even have to be on a specific computer to process a payment because all he/she has to do is to use ANY computer with Internet access, log onto a website, login to a secure server with the username and password and be on their way!
I’ll give you an example. For instance, a merchant sends out a newsletter or a mailer and a customer sees something is appealing. At the end of the document, the customer fills out a form, complete with all personal and credit card information, and mails it back to the business owner.
When you obtain this filled-out form, your staff will use a virtual terminal to process the order without the need to physically swipe the card. By inputting fields such as the name of the customer, the amount of the sale, the credit card number, the billing address, etc., the transaction can be completed by just clicking a “submit” button.
With a virtual terminal, you can do more than just process credit card transactions. You can even authorize payments and charges, perform refunds, possibly void transactions, and automatically bill your customers for recurring or monthly payments. If you sign up for a virtual terminal with a reputable service provider, the system they have should also allow you to check the status of transactions that transpire online or offline, capture previous transactions, cancel authorizations and also, most importantly, with the click of the mouse button, allow you to print out reports of all the past transactions you’ve performed. In addition, you may upload credit card transaction information into an accounting program such as Quickbooks.
Now, the most important thing about getting yourself a virtual terminal is this: You need to obtain one from a reputable service provider who’s been in the game for some time; this provider cannot compromise the safety and security of the information that they are privy to. And of course, being laymen, the process and layout of the website where you log into should not be cluttered or complicated. A site like Authorize.net (a well-known virtual terminal service provider) spends time and money on demos to show their virtual terminal customers how their virtual terminals work.
In a lot of ways, a virtual terminal can save you quite fair amount of money because there’s no need to purchase additional hardware or you don’t need to get a separate phone line for it. If you can access the Internet from your home or your office, you’re ready for a virtual terminal. And the great thing about having a virtual terminal is that you don’t have to specifically install any new software into your computer in order for it to work – the software and technical information are all on the virtual terminal service provider’s server.
Most of the well-known virtual terminal packages out there in the market today come equipped with something we call the MSR, which stands for Merchant Selectable Response. The customer can automatically set up the system to auto-reject pre-specified types of transactions which will, trust me on this one, come in handy! For example, you may wish to decline transactions where there is an AVS mismatch (i.e., the customer’s billing address is different from the one listed on the credit card.)
Perhaps the best way to start and to better understand the functionality of a virtual terminal is to perform a demo. Here is a good one: http://www.authorize.net/demos/#. (Click on virtual terminal overview.)
In a few minutes, you will become adept at using the virtual terminal and you may not hesitate to use this mechanism as a viable means to accept credit cards.
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To learn more about our merchant account services, please visit us at:http://www.intelli-collect.com.