3 reasons your merchant account provider should be a business mentor
The following is a guest post by John Rampton, founder and CEO, Due.
Any company that wants to process credit cards must have some type of relationship with a merchant account provider. Typically, these relationships are basic and simply involve paying to have the merchant account provider assist in processing payments.
Sometimes, these merchant account companies also offer equipment or other services. Overall, though, the merchant account provider relationship has been about delivering a way to do transactions for a specific cost – and that’s it.
As long as it is reliable, secure, and helps complete the payment process, businesses have just settled for that.
However, the standout merchant account providers are those that look at the relationship with your company a little differently – they see the opportunity to work with you on a consultative level like a coach or mentor.
A mentor provides a more personalized approach rather than just deliver a one-size-fits-all product. They examine your current strengths and weaknesses and then deliver a plan of action with you to make the appropriate changes.
There are some key reasons why a merchant account provider should look at their relationship with you this way:
The payment processing environment is becoming increasingly complex. Despite working with a merchant account provider, any liability or responsibility for not meeting current regulations or being fully compliant is on your business.
With growing complexity in terms of what is required and the constant change associated with payment processing in terms of what is possible, you could really use a mentor that can guide you through that confusion and ensure you are completely covered.
A merchant account provider can break down and simplify what is involved, provide the tools to get you PCI compliance certification, and regularly update you with information on upcoming regulatory changes to prepare you effectively.
Educating you on best practices reduces the risk of fraud, including chargebacks, which affects you and them. Every team has an offensive and defensive strategy, which the coach helps to develop and instructs team members on how to deploy it. The same process can be applied to your partnership with a merchant account provider.
While they can just put it on you to figure out how to deal with the increasing risk for chargebacks and other fraudulent activity, the better approach is to help you devise a way to stop this activity from occurring in the first place.
This includes working with you to develop a chargeback management program that can essentially shut it down, reducing the costs for both you and the merchant account provider.
Shaping your payment experience strategy is a win-win because it helps you grow, which leads to more volume for your merchant account provider. You may already struggle to keep up with the latest and greatest technology for the other aspects of your business or are confused about what to invest in that would most benefit the experience you deliver to customers.
At least having a mentor in the payments space can guide your decision-making in terms of investments and new features or payment options to offer that will attract new customers and retain your existing ones.
For example, they can provide a strategy that helps you add mobile payment processing to your options or digital wallet capability in order to leverage two of the fastest growing payment option preferences.
You may be struggling with the rate of payment settlement or how to increase your own volume to achieve a lower cost basis per transaction. Again, your merchant account provider can serve as an advisor and take the time to go through your processes for billing and payment to see if they can suggest any areas of improvement.
It’s really in the best interests of a merchant account provider to take this consultative approach and guide their customers as a mentor.
This level of personal attention and strategizing increases the likelihood of success for your business. The mutual benefits make this type of relationship with your merchant account provider well worth it.
What a merchant account provider learns in serving as a mentor also helps to improve what they do for you and their other customers. They have an even greater understanding of the unique challenges you face and can work toward creating more solutions that address those specific needs.
This builds additional value for you and them, furthering the benefits that everyone will realize by taking a long-term service-oriented approach rather than just selling a packaged payment processing product.
About the Author
John Rampton is an entrepreneur, investor, online marketing guru, and startup enthusiast. He is the founder of the online invoicing company Due. John is best-known as an entrepreneur and connector. He was recently named #2 on Top 50 Online Influencers in the World by Entrepreneur Magazine and a Blogging Expert by Time. He currently advises several companies in the San Francisco Bay area.