ForumsMerchant Services

Thank you. I guess my question for you and the other merchants who started out with B of A and then switched to other providers, what is/has been your experience with other providers? It seems I can get much better prices with other providers (including monthly statement fees and minimums) but I wonder at what expense in terms of safety/customer service, etc. I have heard horror stories of the providers not depositing payments, taking money from accounts, etc and merchants have lost thousands of dollars. Are there low cost providers that people have used that have been safe and reliable? Or conversely, have people tried certain services that sounded good only to find there were hidden problems?

Also, I don't understand the references to a third party/middleman. It seems if I go through an agent (like those posting here) that is a middle man. How is that any different than the middlemand recommended by my bank? What is the difference if I go through an agent (I believe termed an ISO) rather than directly through the bank and the processor?

Good explanation from ericelam. Any horror stories you've heard about Independent Service Organizations and Merchant Services Accounts were most likely either offshore companies and banking partners, or situations where the business owner didn't really understand (and the ISO didn't openly provide and explain) all the fees that would be applied. Also, a lot of horror stories that are presented as Merchant Account problems are actually issues with Payment Processors (which you know are different, but the people telling the stories might not).

As for your question about changing providers, once we had been operating for a couple of years and had a "history," we started receiving attractive package deal offers from competing institutions if we did everything through them (checking, payroll, invoicing, merchant account, vendor payments, credit lines, etc.). The actual set-up of some of these services was still provided by ISOs, but we did get much better rates, lower fees, etc.

The reality is that a new small business usually pays steep fees and has few options (almost as if everyone is doing the owner a favor to let him/her launch the enterprise). Once the business is sustaining growth and profit, however, the world of financial possibilities seems to open up. That's why my initial post suggested finding a provider that allowed you to get started easily, and with the greatest feeling of security and confidence (accepting that it might not be the cheapest option, but it would be safe -- and that much better deals would be available down the road a year or so). That was my experience, anyway.

Novice, I recently joined this form and saw your post. You've probably already found a provider by now, so I won't go into a lengthy "commercial" about myself. I do want to recommend that you take a look at http://www.creekfinancial.com/whitepapers

Neil Moncrief
Creek Financial Services

Many of these posters hit the nail on the head when they mentioned that you could find better service and rates through an independent company.

The problem is that many of the services you find are less but are still middlemen. Nothing agent them, many are very honest and have good service. The problem is they do not process the money, They pay someone else to do it. The differance is between retail and wholesale. You need to find someone who is a direct processor, BUT also moves the money and controls the process from swipe to deposit.

There are about 10 direct processors in the industry. Some are large but good luck getting someone one the phone. Others are big but gouge their merchants as a general rule or having confusing statements and lots of fees.

Research and know your rights.

Start Here: www.merchantbillofrights.com

This gives the rights all merchants should be getting, regardless of their size or industry.

Heartland Payment Systems is a direct processor that focuses on service and local relationships. We have a virtual army of in the field Account managers (NOT SALES PEOPLE--SERVICE PEOPLE) serving almost every county in every state of the USA.

I hope you will look at us and give us a chance to earn your business if you ever need anything.

Thanks!!

Chad Johnson
Relationship Manager
Heartland Payment Systems
charles.johnsoniii@e-hps.com

www.greenlightpayments.com 1-800-448-2038 I was placed on wholesale pricing and no contract I could not go wrong. Now I am an employee.