Merchant Account Consultant: A Wolf In Sheep's Clothing Or A Merchant's Best Friend by:Ben Dwyer
There are experts in every field willing to sell their skills to anyone who could benefit from them
, and the payments industry is no exception. As public exposure surrounding the bankcard industry expands, merchant account consultants are popping up online and perhaps even at your local networking events. The question is whether this new flood of payment consultants are simply salespeople giving themselves a new title, or if they're legitimate professionals that will help to combat the abuses toward merchants born out of the lack of unbiased information and support.The problems that plague the bankcard industry can be summarized very simply as too much money, not enough information and little oversight. There's a lot of money to be made selling merchant accounts, especially when merchants know little and have nowhere to turn for unbiased counsel. This is hardly a new problem, but it's one that's received a lot of attention in recent years. Most recently, the media coverage surrounding the Card Holders' Bill of Rights and the Consumer Discount and Fee Transparency amendment has heightened public scrutiny even more. But all of the apparently beneficial attention may have an ironic consequence.
The electronic bankcard and payments industry is without a doubt one of the most competitive financial industries and competition breeds excellent marketing and sales forces. Merchant service companies aren't slackers when it comes to recognizing a new angle that will help sell more merchant accounts. If their agents can sign more accounts by calling themselves merchant account consultants rather than salespeople, it's hardly a difficult decision.
So let's assume for a second that most of the companies touting themselves are merchant account consultants are in fact salespeople. Is this a bad thing? After all, this author for one stresses the importance of finding a consultative merchant service provider. The problem is that the act of being consultative doesn't guarantee the accuracy of the information being provided. In order to be a bona fide consultant, a professional needs something or someone to validate their credentials.
So what about the independent payment consultants out there? They do exist. I frequent many of their informative web sites almost every day. Why can't the average merchant contact these professionals for assistance in getting the best merchant account? Well, they can if they want to pay the service fee. Not surprisingly, for many merchants and small businesses owners another fee just isn't in the cards pun intended.
So what are your options if you're looking for a merchant account but you don't have the time or the desire to become an expert in the electronic bankcard field? You could pay a bona fide consultant, but they're expensive and a bit overkill for the average merchant. You could find a knowledgeable merchant service provider willing to educate you through the sales process, but it's tough to know if what they're telling you is accurate. So it looks like we're back to square one but not quite.
Here are some tips to help you tell the real merchant account consultants and truly knowledgeable sales reps from the ones that are just giving themselves a new title to sell more accounts.
If you're going to employ the services of a bona fide merchant account consultant, here are a few things that you can do to make sure you're getting a knowledgeable professional that's looking out for your best interest.
Check references and review marketing material.
Payment consultants can be easily found through any search engine and their web sites usually feature all of the information that you'll need to know that they legitimate. For lesser known outfits, you'll want to check references, ask about memberships in trade organizations and even inquire if the consultant has had any published works about their industry.
Ask if they're affiliated with any merchant service providers, and if so, how they're compensated for their referrals.
If you find a consultant that's affiliated with one or only a couple merchant service providers, or if one provider compensates them significantly more than others, there's a good chance that they'll be biased.
Be cautious of pressure.
A consultant's purpose isn't to sell you something. They're hired to evaluate your needs and, using their knowledge and expertise, recommend the best processing solution for your needs. If a consultant is pressuring you toward one particular provider or processing method without thoroughly justifying their position, be suspicious and question their motives.
Next up I'll cover a few tips that will help you tell the difference between truly knowledgeable, consultative salespeople and those more interested in the size of their wallets.
Watch out for high pressure sales tactics.
One of the major differences between old school selling techniques and a consultative approach is the amount of pressure employed by the salesperson. A salesperson with a consultative selling approach will educate as they sell; they won't pressure you toward a particular solution.
You should feel confident in a salesperson's knowledge of the industry.
You don't need to be an expert to tell if a salesperson is just getting by or if they really know what they're talking about. There's a high turnover of salespeople in the payments industry and many salespeople hit the street with little more than an introductory course on the basics of credit card processing. These salespeople tend to keep subject matter superficial and explain things very quickly. If you don't feel that a salesperson has a true knowledge of what they're telling you, look elsewhere.
Ask for experience and references.
The payments industry changes almost daily in a number of ways. New technology and processing methods are released often, legislation changes that could affect how much you pay for processing. Your salesperson will become your advisor should you choose to utilize their processing services and they should know enough about the industry to keep you updated. Look for a salesperson that has experience in the industry.
As a matter of privacy, sometimes references are hard to come by in the processing industry. However, if you push hard enough a salesperson should be able to produce at least one or two references that you can use to verify credentials.
Be wary of shifty explanations and dismissive tone.
I've listened to a lot of sales pitches that sound great but are less than accurate to say the least. A great example of this behavior has to do with a merchant account monthly minimum. Monthly minimums have always been a tough sell because providers use them to cover costs and merchants feel like they're paying for nothing. Many salespeople skid around the topic by saying something like, "the minimum won't affect you because you're planning to process more than $2,000 each month." Many merchants shrug in acceptance and move on with the sales process.
If you notice that a salesperson in quickly moving through what seems like an important point or if they're overly dismissive, ask for a thorough explanation. If their explanation doesn't put you at ease, consider looking elsewhere for processing.
Payment processing is an increasingly complicated and important aspect of business. You need all the help you can get, and sometimes a merchant account consultant is the answer. If a bona fide consultant is not in the cards, search for a sales representative that's willing to take the time to work with you, learn about your business and educate you. Online comparison services like CardFellow.com are another great middle of the road option. Sites like this can help you find the consultative representative through reviews and multiple quotes.
About the author
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